National Research Corporation (NRCI) has reported a 14.25 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $4.73 million, or $0.77 a share in the quarter, compared with $4.14 million, or $0.69 a share for the same period last year.
Revenue during the quarter grew 7.08 percent to $27.03 million from $25.24 million in the previous year period. Gross margin for the quarter expanded 117 basis points over the previous year period to 57.58 percent. Total expenses were 72.85 percent of quarterly revenues, down from 74.06 percent for the same period last year. This has led to an improvement of 121 basis points in operating margin to 27.15 percent.
Operating income for the quarter was $7.34 million, compared with $6.55 million in the previous year period.
Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation said, “NRC’s strategy of bundling our various point solutions is today, creating enterprise-wide value for our clients and driving enhanced margins for the Company. Going forward, the uniqueness of these bundled offerings should accelerate growth rates in net new sales.”
Working capital drops significantly
National Research Corporation has witnessed a decline in the working capital over the last year. It stood at $14.79 million as at Sep. 30, 2016, down 39.61 percent or $9.70 million from $24.48 million on Sep. 30, 2015. Current ratio was at 1.47 as on Sep. 30, 2016, down from 1.78 on Sep. 30, 2015.
Days sales outstanding went down to 45 days for the quarter compared with 50 days for the same period last year.
Debt comes down significantly
National Research Corporation has recorded a decline in total debt over the last one year. It stood at $2.46 million as on Sep. 30, 2016, down 61.60 percent or $3.95 million from $6.41 million on Sep. 30, 2015. Total debt was 2.06 percent of total assets as on Sep. 30, 2016, compared with 4.95 percent on Sep. 30, 2015. Debt to equity ratio was at 0.03 as on Sep. 30, 2016, down from 0.07 as on Sep. 30, 2015. Interest coverage ratio improved to 193.13 for the quarter from 125.92 for the same period last year.
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