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National Research Corporation Announces First Quarter 2020 Results

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