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National Research Corporation Announces 2019 Fourth Quarter and Year-End Results

LINCOLN, Neb., Feb. 11, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NRC) today announced 2019 fourth quarter and year-end financial results.

Fourth quarter 2019 compared to the fourth quarter 2018:

  • Total Contract Value increased to $144.8 million, up 10%
  • Revenue increased 6% to $32.6 million
  • Operating Income increased 27% to $12.0 million

2019 calendar year results compared to 2018:

  • Net New Sales of $27.7 million, up 18%
  • Revenue increased 7% to $128.0 million
  • Operating Income increased 22% to $43.0 million
  • Voice of the Customer platform contract value surpassed $100 million, a 31% increase

Commenting on recent performance, Michael D. Hays, chief executive officer of National Research Corporation, said, “Our performance throughout the year reflects strong gains across the continuum of care where we witnessed growth in new customer acquisition and increased spend from existing customers which further validated increasing momentum for NRC’s industry-leading Voice of the Customer platform.

Revenue for the quarter ended December 31, 2019, was $32.6 million, compared to $30.6 million for the same quarter in 2018. Net income for the quarter ended December 31, 2019, was $8.7 million, compared to $7.8 million for the quarter ended December 31, 2018. Diluted earnings per share increased to $0.34 for the common stock (formerly Class A) for the quarter ended December 31, 2019, from diluted earnings per share of $0.30 for the quarter ended December 31, 2018.

Regarding the Company’s financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “The significant growth in contract value, combined with the continued shift towards our higher margin VoC platform solutions, translated into strong financial performance with record revenue and operating income in the fourth quarter 2019. On a year-to-date basis, we increased net new sales by 18% over 2018 driven by the compelling value proposition of our VoC platform solutions.”

A listen-only simulcast of National Research Corporation’s 2019 fourth quarter conference call will be available online at http://edge.media-server.com/mmc/p/c88rjqy6 on February 12, 2020, 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 38 years, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement of the patient and employee experience while also increasing patient engagement and customer loyalty for healthcare providers, payers and other healthcare organizations in the United States and Canada. The Company’s solutions enable its clients to understand the voice of the customer with greater clarity, immediacy and depth.

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.


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

  Three months ended
 December 31,
  Twelve months ended
December 31,
 
  2019      2018      2019      2018  
                               
Revenue $   32,623     $ 30,639     $   127,982     $   119,686  
                               
Operating expenses:                              
Direct expenses   11,166       11,892         46,435         47,577  
Selling, general and administrative   8,241       7,885       32,973       31,371  
Depreciation and amortization     1,254         1,467         5,539         5,463  
Total operating expenses     20,661       21,244         84,947         84,411  
                               
Operating income   11,962       9,395       43,035       35,275  
                               
Other income (expense):                              
Interest income   13       6       37       62  
Interest expense   (478 )     (522 )     (2,091 )     (1,513 )
Other, net     (132 )       661         (462 )       885  
                               
Total other income (expense)     (597 )       145         (2,516 )       (566 )
                               
Income before income taxes   11,365       9,540       40,519       34,709  
                               
Provision for income taxes     2,667         1,739         8,113         4,662  
                               
Net income $   8,698     $   7,801     $   32,406     $   30,047  
                               
Earnings per share of common stock:                              
Basic earnings per share:                              
Common (formerly Class A) $     0.35     $     0.32     $   1.30     $   1.08  
Class B $   --     $   --     $   --     $   1.31  
Diluted earnings per share:                              
Common (formerly Class A) $   0.34     $   0.30     $   1.26     $   1.04  
Class B $   --     $   --     $   --     $   1.27  
                               
Weighted average shares and share equivalents outstanding                              
Common (formerly Class A) - basic     24,852         24,684         24,809         23,562  
Class B - basic     --         --         --         3,527  
Common (formerly Class A) - diluted     25,715         25,534         25,652         24,448  
Class B - diluted     --         --         --         3,628  

 

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

    December 31,
2019
    December 31,
2018
 
               
Assets                
Current assets:                
Cash and cash equivalents   $ 13,517     $ 12,991  
Accounts receivable, net     11,639       11,922  
Income taxes receivable     69       348  
Other current assets     3,932       3,149  
Total current assets     29,157       28,410  
                 
Net property and equipment     13,530       14,153  
Goodwill     57,935       57,831  
Other, net     10,063       7,638  
Total assets   $ 110,685     $ 108,032  
                 
Liabilities and Shareholders’ Equity                
Current liabilities:                
Notes payable and line of credit   $ 4,378     $ 3,667  
Accounts payable and accrued expenses     4,913       3,447  
Accrued compensation     6,086       5,798  
Income taxes payable     366       636  
Dividends payable     5,239       17,113  
Deferred revenue     16,648       16,244  
Other current liabilities     525       204  
Total current liabilities     38,155       47,109  
                 
Notes payable, net of current portion     29,795       34,176  
Other non-current liabilities     9,843       7,664  
Total liabilities     77,793       88,949  
                 
Shareholders’ equity:                
Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued     --       --  
Common stock, $0.001 par value; authorized 60,000,000 shares, issued 30,151,574 in 2019 and 29,917,667 in 2018, outstanding 24,947,500 in 2019 and 24,800,796 in 2018     30       30  
Additional paid-in capital     162,154       157,312  
Retained earnings (accumulated deficit)     (93,357     (106,339
Accumulated other comprehensive loss, foreign currency translation adjustment     (2,209 )     (2,916 )
Treasury stock     (33,726 )     (29,004 )
Total shareholders’ equity     32,892       19,083  
Total liabilities and shareholders’ equity   $ 110,685     $ 108,032  

 

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