National Research Corporation Announces Third Quarter 2022 Results

National Research Corporation Announces Third Quarter 2022 Results




National Research Corporation Announces Third Quarter 2022 Results

LINCOLN, Neb., Nov. 01, 2022 (GLOBE NEWSWIRE) — National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the third quarter 2022.

Regarding the Company’s 2022 third quarter financial performance, Kevin Karas, Chief Financial Officer, said, “We continued to grow revenue from new and existing customers in our core offerings, including our new Human Understanding Program. Overall revenue was approximately flat compared with the 2021 quarter due to the phase out of our Canadian operations and a decline in other non-core offerings. From a margin standpoint, investments in innovation initiatives, marketing and associate retention, increased operating expenses for the quarter. In addition, for the quarter, we paid $5.9 million in dividends and $3.6 million related to share repurchases.”

Revenue for the third quarter ended September 30, 2022, was $37.7 million, compared to $37.8 million for the same quarter in 2021. Net income for the quarter ended September 30, 2022, was $8.3 million, compared to $9.7 million for the quarter ended September 30, 2021.

Diluted earnings per share decreased to $0.33 for the quarter ended September 30, 2022, from diluted earnings per share of $0.38 for the quarter ended September 30, 2021.

A live simulcast of National Research Corporation’s 2022 third quarter conference call will be available online at https://events.q4inc.com/attendee/890036554 on November 2, 2022, 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 been committed to achieving Human Understanding and bringing healthcare organizations closer to their customers than ever before by illuminating and improving the key moments that define an experience and build trust. Guided by their uniquely empathic heritage, proprietary methods, skilled associates, and holistic approach, NRC Health helps its customers design experiences that exceed expectations, inspire loyalty, and improve well-being among patients, residents, physicians, nurses, and staff. 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, 2021 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
September 30
    Nine months ended
September 30
 
  2022     2021     2022     2021  
                               
Revenue $ 37,691     $ 37,767     $ 113,424     $ 109,656  
                               
Operating expenses:                              
Direct   14,524       13,707       43,062       38,184  
Selling, general and administrative   10,762       9,523       32,159       29,060  
Depreciation, amortization and impairment   1,296       1,399       3,902       5,016  
Total operating expenses   26,582       24,629       79,123       72,260  
                               
Operating income   11,109       13,138       34,301       37,396  
                               
Other income (expense):                              
Interest income   15       4       34       10  
Interest expense   (288 )     (413 )     (923 )     (1,268 )
Other, net   11       (105 )     (69 )     (8 )
                               
Total other income (expense)   (262 )     (514 )     (958 )     (1,266 )
                               
Income before income taxes   10,847       12,624       33,343       36,130  
                               
Provision for income taxes   2,549       2,967       8,184       8,297  
                               
Net income $ 8,298     $ 9,657     $ 25,159     $ 27,833  
                               
Earnings Per Share of Common Stock:                              
Basic Earnings Per Share $ 0.34     $ 0.38     $ 1.01     $ 1.09  
Diluted Earnings Per Share $ 0.33     $ 0.38     $ 1.00     $ 1.08  
                               
Weighted average shares and share equivalents outstanding:                              
Basic   24,716       25,427       25,014       25,423  
Diluted   24,847       25,650       25,147       25,655  


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

    September 30,     December 31,  
    2022     2021  
Assets                
Current assets:                
Cash and cash equivalents   $ 28,392     $ 54,361  
Accounts receivable, net     15,378       13,728  
Other current assets     5,335       5,618  
Total current assets     49,105       73,707  
                 
Property and equipment, net     15,761       12,391  
Goodwill     61,614       61,614  
Other, net     8,503       9,828  
Total assets   $ 134,983     $ 157,540  
                 
Liabilities and Shareholders’ Equity                
Current liabilities:                
Current portion of notes payable, net unamortized debt issuance costs    $ 4,434     $ 4,278  
Accounts payable and accrued expenses     5,765       7,393  
Accrued compensation     6,023       7,139  
Deferred revenue     17,373       17,213  
Dividends payable     5,926       3,044  
Other current liabilities     1,563       1,321  
Total current liabilities     41,084       40,388  
                 
Notes payable, net of current portion and unamortized debt issuance costs     18,837       22,269  
Other non-current liabilities     7,296       9,546  
Total liabilities     67,217       72,203  
                 
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 30,922,181 in 2022 and 30,898,600 in 2021, outstanding 24,691,246 in 2022 and 25,361,409 in 2021     31       31  
Additional paid-in capital     175,162       173,942  
Retained earnings (accumulated deficit)     (28,870     (36,112
Accumulated other comprehensive loss, foreign currency translation adjustment     (2,608 )     (2,375 )
Treasury stock     (75,949 )     (50,149 )
Total shareholders’ equity     67,766       85,337  
Total liabilities and shareholders’ equity   $ 134,983     $ 157,540  

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