• National Research Corporation Announces Second Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 01 Aug 2023 17:00:00   America/New_York

    LINCOLN, Neb., Aug. 01, 2023 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the second quarter 2023.

    Regarding the Company’s 2023 second quarter, Kevin Karas, Chief Financial Officer, said, “Our continued expansion of sales and marketing resources over the past several quarters have been effective in building our sales pipeline. In the second quarter of 2023, we gained momentum in converting pipeline opportunities which resulted in a 53% increase in new sales compared to the second quarter of 2022. Sales have also been driven by consistent growth in our Human Understanding Program, with adoption through June 30, 2023, of 39 healthcare organizations. We have also focused on aligning our cost structure with business requirements based on our current level of revenue to increase operating margins. We realized improved operating margins in the second quarter as compared to the first quarter and will continue cost alignment changes to achieve margin expansion in future quarters.”

    The Company’s Board of Directors maintained its capital allocation priorities of funding innovation and growth investments, including merger and acquisition activity, as well as internal projects, shareholder dividends and share repurchases during 2023. In the second quarter of 2023, the Company funded $4.2 million for innovation and growth, $3.0 million for dividend payments, and $1.8 million for share repurchases.

    Diluted earnings per share decreased to $0.29 for the quarter ended June 30, 2023, from diluted earnings per share of $0.33 for the quarter ended June 30, 2022.

    A live simulcast of National Research Corporation’s 2023 first quarter conference call will be available online at https://events.q4inc.com/attendee/554395066 August 2, 2023, 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 40 years, NRC Health (NASDAQ: NRC) has led the charge to humanize healthcare and support organizations in their understanding of each unique individual. NRC Health’s commitment to Human Understanding® helps leading healthcare systems get to know each person they serve not as point-in-time insights, but as an ongoing relationship. Guided by its uniquely empathic heritage, NRC Health’s patient-focused approach, unmatched market research, and emphasis on consumer preferences are transforming the healthcare experience, creating strong outcomes for patients and entire healthcare systems. For more information, email info@nrchealth.com, or visit www.nrchealth.com.

    This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “believes,” “expect,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements, including those risks and uncertainties as set forth in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2022 and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.


    NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
    Unaudited Condensed Consolidated Statements of Income
    (In thousands, except per share data)

      Three months ended
    June 30
      Six months ended
    June 30
     
      2023  2022  2023  2022 
                     
    Revenue $36,161  $37,292  $72,634  $75,734 
                     
    Operating expenses:                
    Direct  13,309   13,758   27,589   28,537 
    Selling, general and administrative  11,966   10,748   23,750   21,397 
    Depreciation and amortization  1,521   1,290   2,915   2,606 
    Total operating expenses  26,796   25,796   54,254   52,540 
                     
    Operating income  9,365   11,496   18,380   23,194 
                     
    Other income (expense):                
    Interest income  273   14   523   19 
    Interest expense  (192)  (318)  (433)  (635)
    Other, net  (2  (128  (15  (81
                     
    Total other income (expense)  79   (432)  75   (697)
                     
    Income before income taxes  9,444   11,064   18,455   22,497 
                     
    Provision for income taxes  2,171   2,742   4,219   5,636 
                     
    Net income $7,273  $8,322  $14,236  $16,861 
                     
    Earnings Per Share of Common Stock:                
    Basic Earnings Per Share $0.30  $0.33  $0.58  $0.67 
    Diluted Earnings Per Share $0.29  $0.33  $0.58  $0.67 
                     
    Weighted average shares and share equivalents outstanding:                
    Basic  24,578   25,083   24,582   25,166 
    Diluted  24,716   25,211   24,727   25,300 

     


    NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
    Unaudited Condensed Consolidated Balance Sheets
    (Dollars in thousands, except share amounts and par value)

      June 30,  December 31, 
    20232022
    Assets        
    Current assets:        
    Cash and cash equivalents $22,496  $25,026 
    Accounts receivable, net  11,891   14,461 
    Other current assets  6,600   4,229 
    Total current assets  40,987   43,716 
             
    Property and equipment, net  22,609   17,248 
    Goodwill  61,614   61,614 
    Other, net  8,417   7,883 
    Total assets $133,627  $130,461 
             
    Liabilities and Shareholders’ Equity        
    Current liabilities:        
    Current portion of notes payable  $4,606  $4,491 
    Accounts payable and accrued expenses  5,872   5,136 
    Accrued compensation  4,578   4,551 
    Deferred revenue  14,828   15,198 
    Dividends payable  2,949   2,956 
    Other current liabilities  903   1,085 
    Total current liabilities  33,736   33,417 
             
    Notes payable, net of current portion and unamortized debt issuance costs  15,358   17,690 
    Other non-current liabilities  6,783   7,321 
    Total liabilities  55,877   58,428 
             
    Shareholders’ equity:        
    Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued  --   -- 
    Common stock, $0.001 par value; authorized 110,000,000 shares, issued 30,963,119 in 2023 and 30,922,181 in 2022, outstanding 24,576,092 in 2023 and 24,628,173 in 2022  31   31 
    Additional paid-in capital  176,646   175,453 
    Retained earnings (accumulated deficit)  (16,849  (25,184
             
    Treasury stock  (82,078)  (78,267)
    Total shareholders’ equity  77,750   72,033 
    Total liabilities and shareholders’ equity $133,627  $130,461 
               

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


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