National Research Corporation Announces Second Quarter 2023 Results
- NRC Health achieved a 53% increase in new sales in the second quarter of 2023 compared to the same period in 2022.
- The company has been successful in aligning its cost structure with business requirements, resulting in improved operating margins in the second quarter.
- NRC Health allocated $4.2 million for innovation and growth, $3.0 million for dividend payments, and $1.8 million for share repurchases in the second quarter of 2023.
- Diluted earnings per share decreased from $0.33 in the second quarter of 2022 to $0.29 in the second quarter of 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
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
Diluted earnings per share decreased to
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, | |||||||||
| 2023 | 2022 | |||||||||
| Assets | ||||||||||
| 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, | -- | -- | ||||||||
| Common stock, | 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
FAQ
What was the increase in new sales for NRC Health in the second quarter of 2023?
How did NRC Health improve its operating margins in the second quarter?
How much did NRC Health allocate for innovation and growth in the second quarter of 2023?
What was the diluted earnings per share for NRC Health in the second quarter of 2023?
How long has NRC Health been leading the charge to humanize healthcare?
