National Research Corporation Announces Second Quarter 2023
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, 20232022Assets 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
