National Research Corporation Announces Fourth Quarter and Year-to-Date 2020 Results
National Research Corporation (NASDAQ:NRC) announced its Q4 and year-end 2020 results. Q4 revenue rose 7% to $34.8 million, while operating income fell 15% to $10.2 million. Notably, net new sales dropped to $4.6 million. For the full year, revenue increased 4% to $133.3 million, and net income grew 15% to $37.3 million. The Voice of the Customer (VoC) platform saw a 19% increase in recurring contract value to $116.4 million. However, increased operating expenses and a goodwill impairment in Canada affected profitability.
- Net income grew 15% in 2020, totaling $37.3 million.
- Voice of the Customer platform recurring contract value increased 19% year-over-year to $116.4 million.
- Total recurring contract value rose 6% to $145.1 million.
- Net new sales decreased to $4.6 million in Q4 2020.
- Operating income decreased 15% in Q4 2020 to $10.2 million.
- Goodwill impairment adjustment of $714,000 due to reduced expected cash flows from the Canadian business.
LINCOLN, Neb., Feb. 09, 2021 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) (the “Company,” “we,” or “our”) today announced 2020 fourth quarter and year-end results.
Fourth quarter 2020 compared to the fourth quarter 2019:
- Net New Sales decreased to
$4.6 million - Revenue increased
7% to$34.8 million - Operating Income decreased
15% to$10.2 million - Net Income decreased
6% to$8.2 million
2020 calendar year results compared to 2019:
- Net New Sales increased to
$28.1 million - Total Recurring Contract Value increased
6% to$145.1 million - Voice of the Customer platform recurring contract value grew to
$116.4 million , a19% increase - Revenue increased
4% to$133.3 million - Net Income increased
15% to$37.3 million
We continue to be inspired by the courageous efforts of our clients to provide care to their patients during the pandemic and are extremely proud of the work our associates are doing to support our clients. During a very challenging year, the strong demand for our Voice of the Customer (VoC) platform offerings in 2020 enabled our net new sales to increase over 2019 to
Total Recurring Contract Value increased by
We believe the efficiencies inherent in our digital platform have led to long-term margin improvements, a hallmark of our financial performance. At the same time, decisions supporting our distributed workforce environment, accelerated improvement in our VoC platform offerings and shift in our Canadian business resulted in additional expenses that contributed to a decrease in operating income margin in 2020. Following is additional information regarding our fourth quarter and year-end 2020 financial results.
Fourth quarter 2020 revenue was
Total operating expenses of
Fourth quarter operating expenses also included approximately
Total other expense decreased to
The Company had an income tax provision of
Net income for fourth quarter 2020 was
On a year-to-date basis, 2020 revenue increased by
For more than 39 years, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement of human understanding.
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,” 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, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. In this press release, the statements relating to the future impact of adding additional clients are forward-looking statements. 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 December 31, | Twelve months ended December 31, | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Revenue | $ | 34,774 | $ | 32,623 | $ | 133,277 | $ | 127,982 | |||||
| Insurance recoveries | -- | -- | 533 | -- | |||||||||
| Operating expenses: | |||||||||||||
| Direct expenses | 12,818 | 11,166 | 49,187 | 46,435 | |||||||||
| Selling, general and administrative | 8,887 | 8,241 | 34,441 | 32,973 | |||||||||
| Depreciation, amortization and impairment | 2,882 | 1,254 | 7,505 | 5,539 | |||||||||
| Total operating expenses | 24,587 | 20,661 | 91,133 | 84,947 | |||||||||
| Operating income | 10,187 | 11,962 | 42,677 | 43,035 | |||||||||
| Other income (expense): | |||||||||||||
| Interest income | 3 | 13 | 18 | 37 | |||||||||
| Interest expense | (447) | (478) | (1,813) | (2,091) | |||||||||
| Other, net | 131 | (132) | 585 | (462) | |||||||||
| Total other expense | (313) | (597) | (1,210) | (2,516) | |||||||||
| Income before income taxes | 9,874 | 11,365 | 41,467 | 40,519 | |||||||||
| Provision for income taxes | 1,662 | 2,667 | 4,207 | 8,113 | |||||||||
| Net income | $ | 8,212 | $ | 8,698 | $ | 37,260 | $ | 32,406 | |||||
| Earnings Per Share of Common Stock: | |||||||||||||
| Basic Earnings Per Share | $ | 0.32 | $ | 0.35 | $ | 1.48 | $ | 1.30 | |||||
| Diluted Earnings Per Share | $ | 0.32 | $ | 0.34 | $ | 1.45 | $ | 1.26 | |||||
| Weighted average shares and share equivalents outstanding | |||||||||||||
| Basic | 25,337 | 24,852 | 25,170 | 24,809 | |||||||||
| Diluted | 25,684 | 25,715 | 25,696 | 25,653 | |||||||||
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts and par value)
| December 31, 2020 | December 31, 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 34,690 | $ | 13,517 | ||||
| Accounts receivable, net | 13,923 | 11,639 | ||||||
| Income taxes receivable | 1,235 | 69 | ||||||
| Other current assets | 4,264 | 3,932 | ||||||
| Total current assets | 54,112 | 29,157 | ||||||
| Property and equipment, net | 11,726 | 13,530 | ||||||
| Goodwill | 57,255 | 57,935 | ||||||
| Other, net | 10,330 | 10,063 | ||||||
| Total assets | $ | 133,423 | $ | 110,685 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of notes payable | $ | 4,061 | $ | 4,378 | ||||
| Accounts payable and accrued expenses | 4,279 | 4,687 | ||||||
| Accrued compensation | 6,460 | 6,086 | ||||||
| Income taxes payable | -- | 366 | ||||||
| Dividends payable | -- | 5,239 | ||||||
| Deferred revenue | 15,585 | 16,354 | ||||||
| Other current liabilities | 1,296 | 1,045 | ||||||
| Total current liabilities | 31,681 | 38,155 | ||||||
| Notes payable, net of current portion | 26,547 | 29,795 | ||||||
| Other non-current liabilities | 10,880 | 9,843 | ||||||
| Total liabilities | 69,108 | 77,793 | ||||||
| Shareholders’ equity: | ||||||||
| Preferred stock, | -- | -- | ||||||
| Common stock, | 31 | 30 | ||||||
| Additional paid-in capital | 171,785 | 162,154 | ||||||
| Retained earnings (accumulated deficit) | (61,375 | ) | (93,357 | ) | ||||
| Accumulated other comprehensive loss, foreign currency translation adjustment | (2,399 | ) | (2,209 | ) | ||||
| Treasury stock | (43,727 | ) | (33,726 | ) | ||||
| Total shareholders’ equity | 64,315 | 32,892 | ||||||
| Total liabilities and shareholders’ equity | $ | 133,423 | $ | 110,685 | ||||
Contact:
Kevin R. Karas
Chief Financial Officer
402-475-2525
FAQ
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