U.S. Markets open in 3 hrs 3 mins

National Research Corporation Announces Third Quarter 2019 Results

LINCOLN, Neb., Nov. 05, 2019 (GLOBE NEWSWIRE) -- National Research Corporation (NRC) today announced results for the third quarter of 2019.

In comparison to the third quarter of 2018:

  • Record sales—Net New Sales of $10.0 million
  • Total Contract Value increased to $140.5 million up 11%
  • Revenue increased 8% to $32.5 million
  • Operating Income increased 11% to $10.2 million
  • Voice of the Customer (VoC) platform revenue increased by 35%

Commenting on recent performance, Michael D. Hays, chief executive officer of National Research Corporation said, “Several of the largest and most prestigious health systems in the country switched to NRC’s Voice of the Customer platform in the third quarter, setting a new sales record. The pipeline for the balance of 2019 and 2020 is equally impressive.”

Revenue for the quarter ended September 30, 2019, was $32.5 million, compared to $30.0 million for the same quarter in 2018. Net income for the quarter ended September 30, 2019, was $8.1 million, compared to $7.0 million for the quarter ended September 30, 2018. Diluted earnings per share increased to $0.31 for the common stock (formerly Class A) for the quarter ended September 30, 2019, from diluted earnings per share of $0.27 for the quarter ended September 30, 2018.

Regarding the Company’s third quarter financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “Our sales performance continued to gain momentum with our net new sales year-to-date increasing by 28% compared to the first three quarters of 2018. The continued focus on adding new customers to the VoC platform solution and driving value for existing customers resulted in an increase in total contract value in the third quarter 2019 of 11% over the prior year. VoC platform contract value has grown by 33% over the third quarter of 2018 and now represents 66% of total contract value.”

A listen-only simulcast of National Research Corporation’s 2019 third quarter conference call will be available online at http://edge.media-server.com/mmc/p/to3vagfu on November 6, 2019, 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
   September 30,    
  Nine months ended
   September 30,  
   2019   2018   2019   2018
         
         
Revenue $   32,465     $   30,013     $   95,359     $   89,047  
         
Operating expenses:        
Direct expenses   12,109     11,780       35,269       35,685  
Selling, general and administrative   8,706     7,679       24,732       23,486  
Depreciation and amortization     1,430       1,388          4,285          3,996  
Total operating expenses     22,245         20,847         64,286         63,167  
         
         
Operating income   10,220     9,166       31,073       25,880  
         
Other income (expense):        
Interest income   10     3       24       57  
Interest expense   (510 )   (544 )     (1,613 )     (990 )
Other, net     89       (242 )       (330 )       222  
         
         
Total other income (expense)     (411 )     (783 )       (1,919 )       (711 )
         
         
Income before income taxes   9,809     8,383       29,154       25,169  
         
Provision (benefit) for income taxes     1,690       1,391         5,446         2,923  
         
         
Net income $   8,119     $   6,992     $   23,708     $   22,246  
         
Earnings per share of common stock:        
Basic earnings per share:        
Common (formerly Class A) $     0.33     $     0.28     $   0.95     $   0.76  
Class B $   --     $    --     $    --     $   1.31  
Diluted earnings per share:        
Common (formerly Class A) $   0.31     $   0.27     $   0.92     $   0.73  
Class B $    --     $  --     $    --     $   1.27  
         
         
Weighted average shares and share equivalents outstanding
Common (formerly Class A) - basic
    24,827       24,671         24,794         23,184  
Class B - basic     --       --         --         3,527  
Common (formerly Class A) - diluted     25,741       25,526         25,624         24,083  
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)

    September 30,
2019
    December 31,
2018
 
               
Assets                
Current assets:                
Cash and cash equivalents   $ 8,358     $ 12,991  
Accounts receivable, net     15,308       11,922  
Income taxes receivable     556       348  
Other current assets     2,348       3,149  
Total current assets     26,570       28,410  
                 
Net property and equipment     13,696       14,153  
Goodwill     57,896       57,831  
Other, net     9,487       7,638  
Total assets   $ 107,649     $ 108,032  
                 
Liabilities and Shareholders’ Equity                
Current liabilities:                
Notes payable and line of credit   $ 4,133     $ 3,667  
Accounts payable and accrued expenses     4,281       3,447  
Accrued compensation     5,192       5,798  
Income taxes payable     14       636  
Dividends payable     4,735       17,113  
Deferred revenue     19,133       16,244  
Other current liabilities     824       204  
Total current liabilities     38,312       47,109  
                 
Notes payable, net of current portion     30,977       34,176  
Other non-current liabilities     9,385       7,664  
Total liabilities     78,674       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 30,100,762 in 2019 and 29,917,667 in 2018, outstanding 24,920,050 in 2019 and 24,800,796 in 2018     30       30  
Additional paid-in capital     160,524       157,312  
Retained earnings (accumulated deficit)     (96,817     (106,339
Accumulated other comprehensive loss, foreign currency translation adjustment     (2,442 )     (2,916 )
Treasury stock     (32,320 )     (29,004 )
Total shareholders’ equity     28,975       19,083  
Total liabilities and shareholders’ equity   $ 107,649     $ 108,032  
                 

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