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National Research Corporation Announces First Quarter 2020 Results

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LINCOLN, Neb., May 05, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NRC) today announced results for the first quarter of 2020.

  • Revenue increased 8% to $33.9 million

  • Net Income increased 43% to $11.8 million

  • Net New Sales of $5.7 million

  • Voice of the Customer platform recurring contract value reaches $102.9 million

Revenue for the quarter ended March 31, 2020, was $33.9 million, compared to $31.5 million for the same quarter in 2019. Net income for the quarter ended March 31, 2020, was $11.8 million, compared to $8.2 million for the quarter ended March 31, 2019. Diluted earnings per share increased to $0.46 for the quarter ended March 31, 2020, from diluted earnings per share of $0.32 for the quarter ended March 31, 2019. Results for the quarter included an approximately $0.4 million income tax benefit compared with $1.7 million in income tax expense for the first quarter of 2019.

Regarding the Company’s first quarter financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We achieved strong financial performance in the first quarter with minimal impact from COVID-19. However, given the uncertainty surrounding COVID-19, we assume future growth trends are unlikely to follow those of the past several years.”

A listen-only simulcast of National Research Corporation’s 2020 first quarter conference call will be available online at http://edge.media-server.com/mmc/p/zorgr63b on May 6, 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 39 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. COVID-19 is a significant risk factor and the impact on our business is dependent on the duration and spread of the outbreak in the United States and Canada and resulting government mandates and recommendations, which are difficult to predict. The severity and duration of any such impacts on our business cannot be predicted at this time. 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
March 31,

2020

2019

Revenue

$

33,860

$

31,480

Operating expenses:

Direct

12,546

11,654

Selling, general and administrative

8,749

7,707

Depreciation and amortization

1,371

1,415

Total operating expenses

22,666

20,776

Operating income

11,194

10,704

Other income (expense):

Interest income

11

6

Interest expense

(465

)

(570

)

Other, net

630

(280

)

Total other income (expense)

176

(844

)

Income before income taxes

11,370

9,860

Income tax provision (benefit)

(385

)

1,664

Net income

$

11,755

$

8,196

Earnings Per Share of Common Stock:

Basic Earnings Per Share

$

0.47

$

0.33

Diluted Earnings Per Share

$

0.46

$

0.32

Weighted average shares and share equivalents outstanding

Basic

24,972

24,766

Diluted

25,725

25,509

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

March 31,
2020

December 31,
2019

Assets

Current assets:

Cash and cash equivalents

$

10,021

$

13,517

Accounts receivable, net

17,403

11,639

Income taxes receivable

580

69

Insurance receivable

2,771

--

Other current assets

4,164

3,932

Total current assets

34,939

29,157

Net property and equipment

12,655

13,530

Goodwill

57,746

57,935

Other, net

10,515

10,063

Total assets

$

115,855

$

110,685

Liabilities and Shareholders’ Equity

Current liabilities:

Notes payable

$

4,631

$

4,378

Accounts payable and accrued expenses

4,947

4,687

Accrued compensation

4,913

6,086

Income taxes payable

--

366

Dividends payable

5,278

5,239

Deferred revenue

19,111

16,354

Other current liabilities

999

1,045

Total current liabilities

39,879

38,155

Notes payable, net of current portion

28,593

29,795

Other non-current liabilities

10,086

9,843

Total liabilities

78,558

77,793

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 30,412,055 in 2020 and 30,151,574 in 2019, outstanding 25,132,001 in 2020 and 24,947,500 in 2019

30

30

Additional paid-in capital

165,631

162,154

Retained earnings (accumulated deficit)

(86,880

)

(93,357

)

Accumulated other comprehensive loss, foreign currency translation adjustment

(3,333

)

(2,209

)

Treasury stock

(38,151

)

(33,726

)

Total shareholders’ equity

37,297

32,892

Total liabilities and shareholders’ equity

$

115,855

$

110,685


Contact:

Kevin R. Karas

Chief Financial Officer

402-475-2525