LINCOLN, Neb., Nov. 07, 2023 (GLOBE NEWSWIRE) — National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the third quarter 2023.
Regarding the Company’s 2023 third quarter, Kevin Karas, Chief Financial Officer, said, “New sales increased compared to the third quarter of 2022, supported by growth in our Human Understanding Program, with adoption by 91 healthcare organizations as of September 30, 2023. While building our sales pipeline, we are also highly focused on controlling costs in an inflationary environment. We have realized sequential quarterly operating margin improvement in the last two quarters and will continue to emphasize returning to our historical operating margins.”
Mr. Karas continued: “From a capital standpoint, NRC remains well-positioned to execute the entire range of capital allocation alternatives, including funding innovation and growth investments, shareholder dividends and share repurchases. At September 30, 2023, the Company had approximately $20 million of net debt and $25 million available on its revolving line of credit after funding $3.7 million for innovation and growth, $27.5 million for dividend payments, and $310,000 for share repurchases during the quarter.”
Diluted earnings per share decreased to $0.32 for the quarter ended September 30, 2023, from diluted earnings per share of $0.33 for the quarter ended September 30, 2022.
A live simulcast of National Research Corporation’s 2023 third quarter conference call will be available online at https://events.q4inc.com/attendee/533804877 November 8, 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,” “focus,” “will,” 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
September 30 Nine months ended
September 30 2023 2022 2023 2022 Revenue $37,945 $37,691 $110,579 $113,424 Operating expenses: Direct 14,633 14,524 42,222 43,062 Selling, general and administrative 11,802 10,762 35,552 32,159 Depreciation and amortization 1,555 1,296 4,469 3,902 Total operating expenses 27,990 26,582 82,243 79,123 Operating income 9,955 11,109 28,336 34,301 Other income (expense): Interest income 256 15 779 34 Interest expense (160) (288) (594) (923)Other, net (12) 11 (27) (69) Total other income (expense) 84 (262) 158 (958) Income before income taxes 10,039 10,847 28,494 33,343 Provision for income taxes 2,163 2,549 6,381 8,184 Net income $7,876 $8,298 $22,113 $25,159 Earnings Per Share of Common Stock: Basic Earnings Per Share $0.32 $0.34 $0.90 $1.01 Diluted Earnings Per Share $0.32 $0.33 $0.89 $1.00 Weighted average shares and share equivalents outstanding: Basic 24,560 24,716 24,574 25,014 Diluted 24,695 24,847 24,715 25,147 NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts and par value) September 30, December 31, 20232022Assets Current assets: Cash and cash equivalents $3,828 $25,026 Accounts receivable, net 14,467 14,461 Other current assets 6,448 4,229 Total current assets 24,743 43,716 Property and equipment, net 25,589 17,248 Goodwill 61,614 61,614 Other, net 8,190 7,883 Total assets $120,136 $130,461 Liabilities and Shareholders’ Equity Current liabilities: Current portion of notes payable $4,665 $4,491 Line of credit 5,000 — Accounts payable and accrued expenses 6,027 5,136 Accrued compensation 5,029 4,551 Deferred revenue 16,238 15,198 Dividends payable 2,947 2,956 Other current liabilities 899 1,085 Total current liabilities 40,805 33,417 Notes payable, net of current portion and unamortized debt issuance costs 14,164 17,690 Other non-current liabilities 7,295 7,321 Total liabilities 62,264 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 30,956,479 in 2023 and 30,922,181 in 2022, outstanding 24,562,068 in 2023 and 24,628,173 in 2022 31 31 Additional paid-in capital 176,714 175,453 Retained earnings (accumulated deficit) (36,482) (25,184) Treasury stock (82,391) (78,267)Total shareholders’ equity 57,872 72,033 Total liabilities and shareholders’ equity $120,136 $130,461
Contact:
Kevin R. Karas
Chief Financial Officer
402-475-2525