National Research Corporation Announces Second Quarter 2023 Results

National Research Corporation

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,
			2023				2022
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