National Research Corp. (NRCI, Financial) filed Quarterly Report for the period ended 2009-09-30.
National Research Corporation is a leading provider of ongoing survey-based performance measurement, analysis and tracking services to the healthcare industry. The company addresses the growing need of healthcare providers and payers to measure the care outcomes, specifically satisfaction and health status, of their patients and/or members. The company's primary types of information services are renewable performance tracking services, custom research and a renewable syndicated service. National Research Corp. has a market cap of $144.48 million; its shares were traded at around $21.69 with a P/E ratio of 17.93 and P/S ratio of 2.83. The dividend yield of National Research Corp. stocks is 2.95%. National Research Corp. had an annual average earning growth of 13.8% over the past 5 years.
Depreciation and amortization. Depreciation and amortization expenses increased 36.4% to $901,000 for the three-month period ended September 30, 2009, compared to $661,000 in the same period of 2008. The increase was primarily due to the amortization of intangible assets associated with the acquisition of MIV. Depreciation and amortization expenses as a percentage of revenue increased to 6.7% for the three-month period ended September 30, 2009, from 4.9% in the same period of 2008.
Depreciation and amortization. Depreciation and amortization expenses for the nine-month period ended September 30, 2009, increased 44.9% to $2.9 million, compared to $2.0 million for the same period in 2008, primarily due to the amortization of intangible assets associated with the acquisition of MIV and additional depreciation taken on software that was no longer utilized. Depreciation and amortization expenses as a percentage of revenue increased to 6.6% in the nine-month period ended September 30, 2009, from 5.2% in the same period of 2008.
The Company had a working capital deficiency of $5.9 million as of September 30, 2009, compared to a working capital deficiency of $10.7 million on December 31, 2008. The decrease in the working capital deficiency was primarily due to a $3.8 million reduction in the current notes payable, and increases in recoverable income taxes, cash and cash equivalents, and prepaid expenses of $547,000, $351,000, and $201,000 respectively.
The Company entered into a revolving credit note in 2006. The maximum aggregate amount available under the revolving credit note was originally $3.5 million, but an addendum to the note dated March 26, 2008, changed the amount to $6.5 million. The revolving credit note was renewed in July 2009 to extend the term to June 30, 2010. The Company may borrow, repay and re-borrow amounts under the revolving credit note from time to time until its maturity on June 30, 2010. The maximum aggregate amount available under the revolving credit note is $6.5 million, subject to a borrowing base equal to 75.0% of the Company s eligible accounts receivable. Borrowings under the revolving credit note bear interest at a variable rate equal to (1) prime (as defined in the credit facility) less 0.50% or (2) one-, two-, three-, six- or twelve-month LIBOR. As of September 30, 2009, the revolving credit note did not have a balance. According to borrowing base requirements, the Company had the capacity to borrow $5.5 million as of September 30, 2009.
Shareholders equity increased $4.0 million to $42.6 million as of September 30, 2009, from $38.6 million as of December 31, 2008. The increase was primarily due to net income, partly offset by dividends paid of $3.2 million.
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National Research Corporation is a leading provider of ongoing survey-based performance measurement, analysis and tracking services to the healthcare industry. The company addresses the growing need of healthcare providers and payers to measure the care outcomes, specifically satisfaction and health status, of their patients and/or members. The company's primary types of information services are renewable performance tracking services, custom research and a renewable syndicated service. National Research Corp. has a market cap of $144.48 million; its shares were traded at around $21.69 with a P/E ratio of 17.93 and P/S ratio of 2.83. The dividend yield of National Research Corp. stocks is 2.95%. National Research Corp. had an annual average earning growth of 13.8% over the past 5 years.
Highlight of Business Operations:
Direct expenses. Direct expenses decreased 17.5% to $5.4 million in the three-month period ended September 30, 2009, compared to $6.6 million in the same period during 2008. The change was primarily due to the implementation of the monthly subscription Market Guide in 2008. Until September 2008, the Company deferred the costs of preparing the survey data for Market Guide and expensed these at the time the annual contract revenue was recognized. Starting in October 2008, these costs were expensed monthly. The three-month period ended September 30, 2008 was the last period in which all of the expenses were recognized on the deferred basis. The annual subscription Market Guide continued to be sold this year, but costs were expensed monthly based on work performed with the monthly subscription product. In addition, costs of servicing revenue were down due to decreased volumes in other areas of the Company. Direct expenses decreased as a percentage of revenue to 40.3% in the three-month period ended September 30, 2009, from 49.0% during the same period of 2008 primarily due to the expense changes with the Market Guide and current business model of MIV. The business model of MIV has been different in comparison to the rest of the operating segments. MIV direct expenses as a percentage of revenue were lower, as the business consists mainly of a large volume of small, high margin contracts.Depreciation and amortization. Depreciation and amortization expenses increased 36.4% to $901,000 for the three-month period ended September 30, 2009, compared to $661,000 in the same period of 2008. The increase was primarily due to the amortization of intangible assets associated with the acquisition of MIV. Depreciation and amortization expenses as a percentage of revenue increased to 6.7% for the three-month period ended September 30, 2009, from 4.9% in the same period of 2008.
Depreciation and amortization. Depreciation and amortization expenses for the nine-month period ended September 30, 2009, increased 44.9% to $2.9 million, compared to $2.0 million for the same period in 2008, primarily due to the amortization of intangible assets associated with the acquisition of MIV and additional depreciation taken on software that was no longer utilized. Depreciation and amortization expenses as a percentage of revenue increased to 6.6% in the nine-month period ended September 30, 2009, from 5.2% in the same period of 2008.
The Company had a working capital deficiency of $5.9 million as of September 30, 2009, compared to a working capital deficiency of $10.7 million on December 31, 2008. The decrease in the working capital deficiency was primarily due to a $3.8 million reduction in the current notes payable, and increases in recoverable income taxes, cash and cash equivalents, and prepaid expenses of $547,000, $351,000, and $201,000 respectively.
The Company entered into a revolving credit note in 2006. The maximum aggregate amount available under the revolving credit note was originally $3.5 million, but an addendum to the note dated March 26, 2008, changed the amount to $6.5 million. The revolving credit note was renewed in July 2009 to extend the term to June 30, 2010. The Company may borrow, repay and re-borrow amounts under the revolving credit note from time to time until its maturity on June 30, 2010. The maximum aggregate amount available under the revolving credit note is $6.5 million, subject to a borrowing base equal to 75.0% of the Company s eligible accounts receivable. Borrowings under the revolving credit note bear interest at a variable rate equal to (1) prime (as defined in the credit facility) less 0.50% or (2) one-, two-, three-, six- or twelve-month LIBOR. As of September 30, 2009, the revolving credit note did not have a balance. According to borrowing base requirements, the Company had the capacity to borrow $5.5 million as of September 30, 2009.
Shareholders equity increased $4.0 million to $42.6 million as of September 30, 2009, from $38.6 million as of December 31, 2008. The increase was primarily due to net income, partly offset by dividends paid of $3.2 million.
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