National Research Corporation Announces Fourth Quarter Results

Rhea-AI Summary

National Research (NRC Health) has released its fourth quarter 2024 financial results, showing revenue of $36.9 million, down from $38.0 million in the same quarter of 2023. Earnings per diluted share decreased to $0.28 from $0.36 year-over-year.

The company reported a net indebtedness of $58.5 million and total recurring contract value (TRCV) of $133.2 million as of December 31, 2024. During the quarter, NRC Health returned $10.1 million to stockholders through dividends and stock repurchases, including approximately 393,000 shares repurchased for $7.3 million and a quarterly dividend of $0.12 per share totaling about $2.8 million.

Positive

• Returned $10.1 million to shareholders through dividends and buybacks
• Maintained strong recurring contract value of $133.2 million
• Continued regular quarterly dividend payments

Negative

• Revenue declined 2.9% YoY to $36.9 million
• Earnings per share decreased 22.2% from $0.36 to $0.28
• Net indebtedness of $58.5 million

Insights

Financial Analyst

The Q4 2024 results from National Research reveal concerning operational trends that warrant careful scrutiny. The 2.9% year-over-year revenue decline to $36.9 million coupled with a more pronounced 22.2% drop in EPS to $0.28 suggests margin compression and operational challenges.

The company's aggressive capital return strategy raises eyebrows - returning $10.1 million to shareholders ($7.3 million in share repurchases and $2.8 million in dividends) while maintaining $58.5 million in net debt and experiencing declining performance metrics. This approach could limit financial flexibility for potential growth investments or market downturns.

The Total Recurring Contract Value (TRCV) of $133.2 million represents approximately 3.6x quarterly revenue, providing some stability to the business model. However, the declining revenue despite this recurring base suggests potential pricing pressures or customer churn that could impact future periods.

The healthcare analytics sector typically maintains high margins due to the scalable nature of software and data services. The disproportionate decline in EPS relative to revenue indicates potential cost management challenges or investments that aren't yet yielding returns, warranting closer monitoring of operational efficiency metrics in upcoming quarters.

LINCOLN, Neb.--(BUSINESS WIRE)-- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the fourth quarter 2024 and other corporate developments.

Financial Results

Revenue for the quarter was approximately $36.9 million compared with approximately $38.0 million in the 2023 quarter. Earnings per diluted share were $0.28 compared with $0.36 for the 2023 quarter. At December 31, 2024, the Company’s net indebtedness (total borrowing minus cash and cash equivalents) was approximately $58.5 million. Total recurring contract value (TRCV) was approximately $133.2 million at December 31, 2024.

Dividends and Stock Repurchases

During the quarter, the Company returned approximately $10.1 million to stockholders in the form of dividends and stock repurchases. The Company repurchased approximately 393,000 shares for approximately $7.3 million and paid its regular quarterly dividend of $0.12 (twelve cents) per share, or approximately $2.8 million.

About NRC Health

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,” “potential,” “will,” derivations thereof, and similar terms and phrases. In this press release, the statements related to future dividends are forward-looking statements. 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, 2023, 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.

© NRC Health

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
		Three months ended								Twelve months ended
		December 31								December 31
		2024				2023				2024				2023
Revenue		$	36,907			$	38,001			$	143,060			$	148,580
Operating expenses:
Direct			14,350				13,793				56,933				56,015
Selling, general and administrative			11,452				11,070				44,911				46,621
Depreciation and amortization			1,516				1,429				6,022				5,899
Total operating expenses			27,318				26,292				107,866				108,535
Operating income			9,589				11,709				35,194				40,045
Other income (expense):
Interest income			22				41				125				820
Interest expense			(729	)			(269	)			(2,595	)			(862	)
Other, net			(6	)			(13	)			(34	)			(41	)
Total other income (expense)			(713	)			(241	)			(2,504	)			(83	)
Income before income taxes			8,876				11,468				32,690				39,962
Provision for income taxes			2,315				2,610				7,907				8,991
Net income		$	6,561			$	8,858			$	24,783			$	30,971
Earnings Per Share of Common Stock:
Basic Earnings Per Share		$	0.28			$	0.36			$	1.05			$	1.26
Diluted Earnings Per Share		$	0.28			$	0.36			$	1.04			$	1.25
Weighted average shares and share equivalents outstanding:
Basic			23,354				24,437				23,703				24,540
Diluted			23,366				24,548				23,743				24,673

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts and par value)
		December 31,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	4,233			$	6,653
Accounts receivable, net			11,054				12,378
Other current assets			4,313				5,329
Total current assets			19,600				24,360
Property and equipment, net			38,269				28,205
Goodwill			66,152				61,614
Other, net			8,518				8,258
Total assets		$	132,539			$	122,437
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of notes payable, net of unamortized debt issuance costs		$	4,789			$	7,214
Accounts payable and accrued expenses			6,825				6,194
Accrued compensation			4,774				3,953
Deferred revenue			15,786				14,834
Dividends payable			2,770				2,906
Other current liabilities			914				1,102
Total current liabilities			35,858				36,203
Notes payable, net of current portion and unamortized debt issuance costs			57,895				29,470
Other non-current liabilities			7,502				7,809
Total liabilities			101,255				73,482
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 31,072,144 in 2024 and 31,002,919 in 2023, outstanding 23,083,116 in 2024 and 24,219,887 in 2023			31				31
Additional paid-in capital			180,249				178,213
Retained earnings (accumulated deficit)			(17,064	)			(30,530	)
Treasury stock			(131,932	)			(98,759	)
Total shareholders’ equity		$	31,284			$	48,955
Total liabilities and shareholders’ equity		$	132,539			$	122,437

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127637796/en/

Michelle Bachman

402-475-2525

Source: NRC Health

FAQ

What was NRC Health's revenue in Q4 2024?

NRC Health reported revenue of $36.9 million in Q4 2024, compared to $38.0 million in Q4 2023.

How much did NRC Health's earnings per share decline in Q4 2024?

NRC Health's earnings per diluted share decreased from $0.36 in Q4 2023 to $0.28 in Q4 2024, representing a 22.2% decline.

How many shares did NRC repurchase in Q4 2024?

NRC repurchased approximately 393,000 shares for approximately $7.3 million during Q4 2024.

What is NRC Health's current quarterly dividend payment?

NRC Health pays a regular quarterly dividend of $0.12 per share, which totaled approximately $2.8 million in Q4 2024.

What was NRC's total recurring contract value (TRCV) at the end of 2024?

NRC's total recurring contract value (TRCV) was approximately $133.2 million as of December 31, 2024.