National Research Corporation Announces Fourth Quarter and Year-End 2016 Results

LINCOLN, Neb., Feb. 14, 2017 -- National Research Corporation (NASDAQ:NRCIA) (NASDAQ:NRCIB) today announced results for the fourth quarter and year-end 2016.

Fourth Quarter

• Net New Sales $7.1 million
• Revenue up 8% to $28.4 million
• Net Income declined 3% to $5.7 million

Year-End 2016

• Net New Sales $24.0 million
• Revenue up 7% to $109.4 million
• Net Income increased 17% to $20.5 million

Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation said, “An increasing proportion of our revenue is being derived from more contemporary and innovative products which support our rebranding focused on 'Human understanding'--an aspiration to keep us at the forefront of a dynamic healthcare environment.”

Revenue for the quarter ended December 31, 2016, was $28.4 million, compared to $26.4 million for the same quarter in 2015. Net income for the quarter ended December 31, 2016, was $5.7 million, compared to $5.9 million for the quarter ended December 31, 2015. Diluted earnings per share decreased to $0.13 for Class A shares and $0.80 for Class B shares for the quarter ended December 31, 2016, from $0.14 for Class A shares and $0.84 for Class B shares for the quarter ended December 31, 2015. Combined diluted earnings per share (a non-GAAP measure) decreased to $0.23 for the quarter ended December 31, 2016, from $0.24 for the fourth quarter 2015.

Revenue for the year ended December 31, 2016, was $109.4 million, compared to $102.3 million for the same quarter in 2015. Net income for the year ended December 31, 2016, was $20.5 million, compared to $17.6 million for the year ended 2015. Diluted earnings per share increased to $0.48 for Class A shares and $2.88 for Class B shares for the year ended December 31, 2016, from diluted earnings per share of $0.41 for Class A shares and $2.49 for Class B shares for the year ended December 31, 2015. Combined diluted earnings per share (a non-GAAP measure) increased to $0.83 for the year ended December 31, 2016, from $0.71 for the year ended 2015.
           
Regarding the Company’s financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We continue to see positive results from our focus on revenue growth and expanding our operating income margin. Revenue and total contract value growth rates on a year-to-date basis more than doubled over the prior year and operating income increased by 18%. Net income for the fourth quarter of 2016 was lower than the prior year’s fourth quarter due to the $1.1 million pre-tax gain on the sale of our clinical workflow product in 2015.”

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $.10 (ten cents) per Class A share and $.60 (sixty cents) per Class B share payable April 14, 2017, to shareholders of record as of the close of business on March 31, 2017.

A listen-only simulcast of National Research Corporation’s 2016 fourth quarter conference call will be available online at http://edge.media-server.com/m/p/7gyz3aqq on February 15, 2017, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.

For more than 35 years, National Research Corporation has been at the forefront of patient-centered care, helping healthcare providers measure and improve quality and services through analytics that offer a rich understanding of customers’ experiences, preferences, risks and behaviors across the healthcare continuum.
           
The information discussed within this release includes financial results and projections that are in accordance with accounting principles generally accepted in the United States (GAAP). In addition, certain non-GAAP financial measures have been provided that calculate combined earnings per share based on combined Class A and Class B shares and share equivalents outstanding, respectively. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. Please note that the Company’s non-GAAP measures may be different than those used by other companies.  The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company’s financial information presented in accordance with GAAP.  The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company's core business operations and to compare the company's performance with prior periods.  The company uses both GAAP and these non-GAAP financial measures for evaluating comparable financial performance against prior periods. 

This press release includes “forward-looking” statements related to the Company that can generally be identified as describing the Company’s future plans, objectives or goals.  Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated.  These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  For further information about the factors that could affect the Company’s future results, please see the Company’s filings with the Securities and Exchange Commission.

Contact:
Kevin R. Karas   
Chief Financial Officer
402-475-2525