National Research Corp. (NRCI, Financial) filed Quarterly Report for the period ended 2010-09-30.
National Research Corp. has a market cap of $193.47 million; its shares were traded at around $29.08 with a P/E ratio of 21.23 and P/S ratio of 3.35. The dividend yield of National Research Corp. stocks is 2.61%. National Research Corp. had an annual average earning growth of 16.4% over the past 10 years. GuruFocus rated National Research Corp. the business predictability rank of 4-star.
The Company had a working capital deficiency of $8.9 million as of September 30, 2010, compared to a working capital deficiency of $4.4 million on December 31, 2009. The increase in the working capital deficiency was primarily due to a $6.8 million increase in deferred revenue, $1.2 million increase in accrued expenses, accrued wages and accounts payable combined, and a $1.0 million increase in the current portion of notes payable, partially offset by a $4.6 million increase in accounts receivable. The working capital deficiency balance was primarily due to a deferred revenue balance of $18.7 million as of September 30, 2010, and $11.9 million as of December 31, 2009.
Net cash provided by operating activities was $12.4 million and $10.3 million for the nine-month periods ended September 30, 2010, and September 30, 2009, respectively, an increase of $2.1 million, or approximately 20.3%. The increase in cash provided by operating activities was primarily the result of increases in the changes in deferred revenue and income taxes recoverable and payable, and decreases in the changes in unbilled revenue and prepaid expenses and other totaling $4.9 million. These changes were partially offset by an increase in the change in accounts receivables and decreases in the changes in accounts payable and accrued expenses totaling $2.8 million. The increases in deferred revenue collections and accounts receivable balances were primarily the result of the acquisition of OCS and new sales of over $5.0 million compared to the same period in 2009, with the majority of the contract amounts billed at the start of the contract. The decrease in unbilled revenue balances was primarily the result of changes in the timing of billing and growth in subscription-based contracts which are normally billed fully at the start of the contract.
Net cash used in investing activities was $16.5 million and $2.5 million for the nine-month periods ended September 30, 2010 and September 30, 2009, respectively, an increase of $14 million. The increase in cash used in investing activities was due to $15.3 million in cash used to acquire OCS and a $172,000 earn-out payment related to the MIV acquisition, partially offset by a decrease of $1.5 million in purchases of property and equipment.
Net cash provided by (used in) financing activities was $4.8 million and ($7.7 million) for the nine-month periods ended September 30, 2010, and September 30, 2009, respectively, an increase of $12.5 million. The increase in cash provided by financing activities was principally due to an increase of $6.6 million in proceeds from borrowings on the Company s term notes and revolving credit note and a $6.7 million decrease in payments on the Company s term notes. The Company borrowed $10.0 million on a term note and $1.3 million on the revolving credit note to partially fund the acquisition of OCS. The revolving credit note was fully paid off by September 30, 2010. These changes were partially offset by an increase in dividends paid of $597,000. Additionally, the Company s treasury stock purchases increased by $320,000. The effect of changes in foreign exchange rates increased cash and cash equivalents by $60,000 and $268,000 in the nine-month periods ended September 30, 2010 and 2009, respectively.
Shareholders equity increased $3.5 million to $47.7 million as of September 30, 2010, from $44.2 million as of December 31, 2009. The increase was primarily due to net income of $6.9 million, partly offset by dividends paid of $3.8 million.
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National Research Corp. has a market cap of $193.47 million; its shares were traded at around $29.08 with a P/E ratio of 21.23 and P/S ratio of 3.35. The dividend yield of National Research Corp. stocks is 2.61%. National Research Corp. had an annual average earning growth of 16.4% over the past 10 years. GuruFocus rated National Research Corp. the business predictability rank of 4-star.
Highlight of Business Operations:
Depreciation and amortization. Depreciation and amortization expenses for the nine-month period ended September 30, 2010, increased 16.5% to $3.4 million, compared to $2.9 million for the same period in 2009. Approximately $167,000 of the increase was related to the acquisition of OCS with the remainder primarily due to a large software project that was placed into service at the end of 2009. Depreciation and amortization expenses as a percentage of revenue increased to 7.1% in the nine-month period ended September 30, 2010, from 6.6% in the same period of 2009.The Company had a working capital deficiency of $8.9 million as of September 30, 2010, compared to a working capital deficiency of $4.4 million on December 31, 2009. The increase in the working capital deficiency was primarily due to a $6.8 million increase in deferred revenue, $1.2 million increase in accrued expenses, accrued wages and accounts payable combined, and a $1.0 million increase in the current portion of notes payable, partially offset by a $4.6 million increase in accounts receivable. The working capital deficiency balance was primarily due to a deferred revenue balance of $18.7 million as of September 30, 2010, and $11.9 million as of December 31, 2009.
Net cash provided by operating activities was $12.4 million and $10.3 million for the nine-month periods ended September 30, 2010, and September 30, 2009, respectively, an increase of $2.1 million, or approximately 20.3%. The increase in cash provided by operating activities was primarily the result of increases in the changes in deferred revenue and income taxes recoverable and payable, and decreases in the changes in unbilled revenue and prepaid expenses and other totaling $4.9 million. These changes were partially offset by an increase in the change in accounts receivables and decreases in the changes in accounts payable and accrued expenses totaling $2.8 million. The increases in deferred revenue collections and accounts receivable balances were primarily the result of the acquisition of OCS and new sales of over $5.0 million compared to the same period in 2009, with the majority of the contract amounts billed at the start of the contract. The decrease in unbilled revenue balances was primarily the result of changes in the timing of billing and growth in subscription-based contracts which are normally billed fully at the start of the contract.
Net cash used in investing activities was $16.5 million and $2.5 million for the nine-month periods ended September 30, 2010 and September 30, 2009, respectively, an increase of $14 million. The increase in cash used in investing activities was due to $15.3 million in cash used to acquire OCS and a $172,000 earn-out payment related to the MIV acquisition, partially offset by a decrease of $1.5 million in purchases of property and equipment.
Net cash provided by (used in) financing activities was $4.8 million and ($7.7 million) for the nine-month periods ended September 30, 2010, and September 30, 2009, respectively, an increase of $12.5 million. The increase in cash provided by financing activities was principally due to an increase of $6.6 million in proceeds from borrowings on the Company s term notes and revolving credit note and a $6.7 million decrease in payments on the Company s term notes. The Company borrowed $10.0 million on a term note and $1.3 million on the revolving credit note to partially fund the acquisition of OCS. The revolving credit note was fully paid off by September 30, 2010. These changes were partially offset by an increase in dividends paid of $597,000. Additionally, the Company s treasury stock purchases increased by $320,000. The effect of changes in foreign exchange rates increased cash and cash equivalents by $60,000 and $268,000 in the nine-month periods ended September 30, 2010 and 2009, respectively.
Shareholders equity increased $3.5 million to $47.7 million as of September 30, 2010, from $44.2 million as of December 31, 2009. The increase was primarily due to net income of $6.9 million, partly offset by dividends paid of $3.8 million.
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