National Research Corporation Announces Second Quarter Results
National Research (NRC Health) announced its Q2 2024 results and corporate developments. Revenue decreased to $35 million from $36 million in Q2 2023, while earnings per diluted share dropped to $0.26 from $0.29. The company's net indebtedness stood at $42 million, with a total recurring contract value (TRCV) of $138 million as of June 30, 2024.
NRC Health amended its credit agreement, extending the revolving loan facility maturity to May 28, 2027, and modifying term loan conditions. The company has 1.1 million shares remaining in its stock repurchase plan and declared a quarterly cash dividend of $0.12 per share. Additionally, NRC Health acquired NOBL Health for approximately $6 million, adding $2 million in TRCV. The company is also releasing new consumer and employee experience capabilities, as well as a proprietary AI engine.
NRC Health ha annunciato i risultati del secondo trimestre 2024 e gli sviluppi aziendali. I ricavi sono diminuiti a 35 milioni di dollari rispetto ai 36 milioni del secondo trimestre 2023, mentre l'utile per azione diluita è sceso a 0,26 dollari rispetto a 0,29 dollari. L’indebitamento netto dell'azienda si è attestato a 42 milioni di dollari, con un valore totale dei contratti ricorrenti (TRCV) di 138 milioni di dollari al 30 giugno 2024.
NRC Health ha modificato il suo accordo di credito, estendendo la scadenza della linea di prestito revolving al 28 maggio 2027 e modificando le condizioni del prestito a termine. L'azienda ha ancora 1,1 milioni di azioni nel suo piano di riacquisto e ha dichiarato un dividendo in contante trimestrale di 0,12 dollari per azione. Inoltre, NRC Health ha acquisito NOBL Health per circa 6 milioni di dollari, aggiungendo 2 milioni di dollari in TRCV. L'azienda sta anche rilasciando nuove funzionalità per l'esperienza dei consumatori e dei dipendenti, oltre a un motore AI proprietario.
NRC Health anunció sus resultados del segundo trimestre de 2024 y desarrollos corporativos. Los ingresos disminuyeron a 35 millones de dólares desde 36 millones en el segundo trimestre de 2023, mientras que las ganancias por acción diluida cayeron a 0,26 dólares desde 0,29 dólares. La deuda neta de la empresa se situó en 42 millones de dólares, con un valor total de contratos recurrentes (TRCV) de 138 millones de dólares al 30 de junio de 2024.
NRC Health modificó su acuerdo de crédito, extendiendo el vencimiento de la línea de crédito revolvente hasta el 28 de mayo de 2027, y modificando las condiciones del préstamo a plazo. La empresa tiene 1,1 millones de acciones restantes en su plan de recompra de acciones y declaró un dividendo en efectivo trimestral de 0,12 dólares por acción. Además, NRC Health adquirió NOBL Health por aproximadamente 6 millones de dólares, añadiendo 2 millones de dólares en TRCV. La empresa también está lanzando nuevas capacidades para la experiencia del consumidor y del empleado, así como un motor de IA propietario.
NRC 헬스가 2024년 2분기 실적 및 기업 개발 내용을 발표했습니다. 수익이 3600만 달러에서 3500만 달러로 감소했습니다, 2023년 2분기와 비교하여, 희석 주당 수익이 0.29달러에서 0.26달러로 떨어졌습니다. 회사의 순부채는 4200만 달러였으며, 2024년 6월 30일 기준으로 총 반복 계약 가치(TRCV)는 1억 3800만 달러입니다.
NRC 헬스는 신용 계약을 수정하여 회전 대출 시설 만기를 2027년 5월 28일로 연장하고, 기간 대출 조건을 수정했습니다. 이 회사는 자사 주식 매입 계획에 110만 주가 남아 있으며, 주당 0.12 달러의 분기 현금 배당금을 선언했습니다. 또한, NRC 헬스는 NOBL 헬스를 약 600만 달러에 인수하여 TRCV에 200만 달러를 추가했습니다. 이 회사는 또한 소비자 및 직원 경험 기능과 독자적인 AI 엔진을 출시할 예정입니다.
NRC Health a annoncé ses résultats du deuxième trimestre 2024 et des développements d’entreprise. Le revenu a diminué à 35 millions de dollars contre 36 millions de dollars au deuxième trimestre 2023, tandis que le bénéfice par action diluée est tombé à 0,26 dollar contre 0,29 dollar. L'endettement net de l'entreprise s'élève à 42 millions de dollars, avec une valeur totale des contrats récurrents (TRCV) de 138 millions de dollars au 30 juin 2024.
NRC Health a amendé son accord de crédit, prolongeant l'échéance de la ligne de crédit renouvelable jusqu'au 28 mai 2027, et modifiant les conditions du prêt à terme. L'entreprise dispose encore de 1,1 million d'actions dans son plan de rachat d'actions et a déclaré un dividende en espèces trimestriel de 0,12 dollar par action. De plus, NRC Health a acquis NOBL Health pour environ 6 millions de dollars, ajoutant 2 millions de dollars en TRCV. L'entreprise lancera également de nouvelles fonctionnalités pour l'expérience des consommateurs et des employés, ainsi qu'un moteur d'IA propriétaire.
NRC Health hat seine Ergebnisse für das zweite Quartal 2024 und Unternehmensentwicklungen bekannt gegeben. Der Umsatz sank auf 35 Millionen Dollar, verglichen mit 36 Millionen Dollar im zweiten Quartal 2023, während der Gewinn pro verwässerter Aktie auf 0,26 Dollar fiel, gegenüber 0,29 Dollar. Die Nettoverschuldung des Unternehmens betrug 42 Millionen Dollar, mit einem Gesamtwert der wiederkehrenden Verträge (TRCV) von 138 Millionen Dollar zum 30. Juni 2024.
NRC Health hat seine Kreditvereinbarung geändert und die Laufzeit der revolvierenden Kreditfazilität bis zum 28. Mai 2027 verlängert sowie die Bedingungen des Terminkredits modifiziert. Das Unternehmen hat noch 1,1 Millionen Aktien in seinem Aktienrückkaufplan und kündigte eine vierteljährliche Bardividende von 0,12 Dollar pro Aktie an. Darüber hinaus erwarb NRC Health NOBL Health für etwa 6 Millionen Dollar und fügte 2 Millionen Dollar im TRCV hinzu. Das Unternehmen veröffentlicht auch neue Funktionen für das Verbraucher- und Mitarbeitererlebnis sowie eine proprietäre KI-Engine.
- Acquisition of NOBL Health for $6 million, adding $2 million in TRCV
- Credit agreement amendment extending revolving loan facility maturity to May 28, 2027
- Release of new consumer and employee experience capabilities and proprietary AI engine
- Quarterly cash dividend of $0.12 per share declared
- Revenue decreased from $36 million in Q2 2023 to $35 million in Q2 2024
- Earnings per diluted share dropped from $0.29 in Q2 2023 to $0.26 in Q2 2024
- Net indebtedness of $42 million as of June 30, 2024
Insights
National Research 's Q2 2024 results reveal a slight decline in revenue and earnings per share compared to Q2 2023. Revenue decreased from
The credit agreement amendments are strategically positive, extending maturity dates and providing more flexibility for capital allocation. The acquisition of NOBL Health for
NRC Health's strategic moves indicate a focus on growth and innovation in the healthcare analytics sector. The acquisition of NOBL Health and the release of new products in consumer and employee experience showcase the company's commitment to expanding its portfolio. The integration of AI technology is particularly noteworthy, as it aligns with industry trends towards data-driven decision-making in healthcare.
The company's decision to forgo a conference call in favor of more comprehensive earnings releases suggests a shift in investor communication strategy. This approach may provide more detailed information to a wider audience, potentially increasing transparency and investor engagement. However, it also eliminates the opportunity for real-time Q&A, which some investors might miss.
The Third Amendment to the Amended and Restated Credit Agreement brings significant legal and financial flexibility to NRC Health. Key changes include:
- Extended maturity of the revolving loan facility to May 28, 2027
- Adjusted term loan amortization schedule from 7 to 10 years
- Expanded uses for delayed draw-down term loans
- Increased capital expenditure exclusions from fixed charge coverage ratio
These amendments provide NRC with enhanced financial maneuvering capabilities, potentially facilitating future growth initiatives, acquisitions and shareholder returns. The extended commitment period for delayed draw-down term loans until May 2026 offers a longer runway for strategic investments, aligning with the company's apparent focus on portfolio expansion and technological advancement.
Financial Results
Revenue for the quarter was approximately
Credit Agreement Amendment
Effective August 5, 2024, the Company and its lender entered into a Third Amendment to Amended and Restated Credit Agreement, with material amendments including the following: (i) extended the maturity of the revolving loan facility to May 28, 2027, (ii) provided that all term loans will amortize over a ten-year amortization schedule (rather than the prior seven-year schedule) and bear interest at floating annual rate of SOFR + 235 basis points, with the maturity date for all term loans remaining May 28, 2027, (iii) extended the commitment period for making delayed draw-down term loans to May 28, 2026, (iv) expanded the permitted uses of delayed draw-down term loans to include dividends, stock repurchases, acquisitions, and capital expenditures as permitted by the agreement, and (v) increased the amount of capital expenditures to be excluded from fixed charge coverage ratio by
Stock Repurchase Plan
The Company has approximately 1.1 million shares remaining under its existing stock repurchase plan. The Company did not repurchase any shares in the second quarter of 2024 pending the credit agreement amendments discussed above. Management is authorized to complete the plan in its discretion, credit agreement limitations, and future capital allocation decisions.
Dividend
The Company’s Board of Directors has declared a quarterly cash dividend of
Portfolio and Strategy Update
On July 15, 2024, the Company acquired NOBL Health, a leading provider of patient rounding insights and workflow applications. The enterprise value of the acquisition was approximately
The Company’s has and will, over the next 30 days, release acquired and internally developed products and features including:
- Consumer experience (CX) capabilities designed to build loyalty and growth for health systems.
- Employee experience (EX) capabilities powered by one of the leading consumer experience technology platforms.
- NOBL Health’s rounding tool, which provides real time feedback from patients and healthcare employees.
- A proprietary AI engine powering new products and features.
In Lieu of Conference Call
The Company has elected to include strategic updates normally discussed in earning calls to a broader group of current and potential stockholders via its quarterly earnings releases.
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 releasing new products and features, future quarterly conference calls and other communications, and stock repurchases 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.
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Statements of Income (In thousands, except per share data) |
||||||||||||||||
|
|
Three months ended
|
|
|
Six months ended
|
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||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
35,021 |
|
|
$ |
36,161 |
|
|
$ |
70,334 |
|
|
$ |
72,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
|
13,422 |
|
|
|
13,309 |
|
|
|
27,278 |
|
|
|
27,589 |
|
Selling, general and administrative |
|
|
11,221 |
|
|
|
11,966 |
|
|
|
22,471 |
|
|
|
23,750 |
|
Depreciation and amortization |
|
|
1,513 |
|
|
|
1,521 |
|
|
|
2,960 |
|
|
|
2,915 |
|
Total operating expenses |
|
|
26,156 |
|
|
|
26,796 |
|
|
|
52,709 |
|
|
|
54,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
8,865 |
|
|
|
9,365 |
|
|
|
17,625 |
|
|
|
18,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
25 |
|
|
|
273 |
|
|
|
69 |
|
|
|
523 |
|
Interest expense |
|
|
(555 |
) |
|
|
(192 |
) |
|
|
(1,160 |
) |
|
|
(433 |
) |
Other, net |
|
|
(11 |
) |
|
|
(2 |
) |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(541 |
) |
|
|
79 |
|
|
(1,107 |
) |
|
|
75 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
8,324 |
|
|
|
9,444 |
|
|
|
16,518 |
|
|
|
18,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
2,149 |
|
|
|
2,171 |
|
|
|
3,984 |
|
|
|
4,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,175 |
|
|
$ |
7,273 |
|
|
$ |
12,534 |
|
|
$ |
14,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share of Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share |
|
$ |
0.26 |
|
|
$ |
0.30 |
|
|
$ |
0.53 |
|
|
$ |
0.58 |
|
Diluted Earnings Per Share |
|
$ |
0.26 |
|
|
$ |
0.29 |
|
|
$ |
0.52 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and share equivalents outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
23,871 |
|
|
|
24,578 |
|
|
|
23,870 |
|
|
|
24,582 |
|
Diluted |
23,915 |
24,716 |
23,934 |
24,727 |
|
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NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts and par value) |
||||||||
|
|
June 30, 2024 |
|
|
December 31, 2023 |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
485 |
|
|
$ |
6,653 |
|
Accounts receivable, net |
|
|
10,057 |
|
|
|
12,378 |
|
Other current assets |
|
|
6,408 |
|
|
|
5,329 |
|
Total current assets |
|
|
16,950 |
|
|
|
24,360 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
33,741 |
|
|
|
28,205 |
|
Goodwill |
|
|
61,614 |
|
|
|
61,614 |
|
Other, net |
|
|
6,794 |
|
|
|
8,258 |
|
Total assets |
|
$ |
119,099 |
|
|
$ |
122,437 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of notes payable, net of unamortized debt issuance costs |
|
$ |
7,566 |
|
|
$ |
7,214 |
|
Line of credit |
|
|
9,000 |
|
|
|
-- |
|
Accounts payable and accrued expenses |
|
|
6,675 |
|
|
|
6,194 |
|
Accrued compensation |
|
|
4,370 |
|
|
|
3,953 |
|
Deferred revenue |
|
|
14,514 |
|
|
|
14,834 |
|
Dividends payable |
|
|
2,865 |
|
|
|
2,906 |
|
Other current liabilities |
|
|
738 |
|
|
|
1,102 |
|
Total current liabilities |
|
|
45,728 |
|
|
|
36,203 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current portion and unamortized debt issuance costs |
|
|
25,655 |
|
|
|
29,470 |
|
Other non-current liabilities |
|
|
7,518 |
|
|
|
7,809 |
|
Total liabilities |
|
|
78,901 |
|
|
|
73,482 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
-- |
|
|
|
-- |
|
Common stock, |
|
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
179,872 |
|
|
|
178,213 |
|
Retained earnings (accumulated deficit) |
|
|
(23,726 |
) |
|
|
(30,530 |
) |
Treasury stock |
|
|
(115,979 |
) |
|
|
(98,759 |
) |
Total shareholders’ equity |
|
|
40,198 |
|
|
|
48,955 |
|
Total liabilities and shareholders’ equity |
|
$ |
119,099 |
|
|
$ |
122,437 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806354663/en/
Linda A. Stacy
Principal Financial Officer
402-475-2525
Source: National Research Corporation
FAQ
What were NRC Health's Q2 2024 financial results?
Did NRC Health acquire any companies in 2024?
What is NRC Health's current dividend policy?
How much is NRC Health's total recurring contract value (TRCV) as of Q2 2024?
