National Research Corporation Announces Third Quarter 2022 Results

Rhea-AI Summary

NRC Health reported its third-quarter 2022 results, revealing revenue of $37.7 million, slightly down from $37.8 million in Q3 2021. The company’s net income declined to $8.3 million from $9.7 million year-over-year, leading to a decrease in diluted earnings per share, which fell to $0.33 from $0.38. Despite revenue growth from core offerings, the overall revenue was flat due to the phasing out of Canadian operations and a decline in non-core offerings. Increased operating expenses were attributed to investments in innovation and marketing. Dividends paid amounted to $5.9 million.

Positive

• None.

Negative

• Revenue slightly declined to $37.7 million, flat compared to prior year, primarily due to the phase-out of Canadian operations.
• Net income decreased to $8.3 million from $9.7 million year-over-year.
• Diluted earnings per share dropped to $0.33 from $0.38.

LINCOLN, Neb., Nov. 01, 2022 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the third quarter 2022.

Regarding the Company’s 2022 third quarter financial performance, Kevin Karas, Chief Financial Officer, said, “We continued to grow revenue from new and existing customers in our core offerings, including our new Human Understanding Program. Overall revenue was approximately flat compared with the 2021 quarter due to the phase out of our Canadian operations and a decline in other non-core offerings. From a margin standpoint, investments in innovation initiatives, marketing and associate retention, increased operating expenses for the quarter. In addition, for the quarter, we paid $5.9 million in dividends and $3.6 million related to share repurchases.”

Revenue for the third quarter ended September 30, 2022, was $37.7 million, compared to $37.8 million for the same quarter in 2021. Net income for the quarter ended September 30, 2022, was $8.3 million, compared to $9.7 million for the quarter ended September 30, 2021.

Diluted earnings per share decreased to $0.33 for the quarter ended September 30, 2022, from diluted earnings per share of $0.38 for the quarter ended September 30, 2021.

A live simulcast of National Research Corporation’s 2022 third quarter conference call will be available online at https://events.q4inc.com/attendee/890036554 on November 2, 2022, 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 been committed to achieving Human Understanding and bringing healthcare organizations closer to their customers than ever before by illuminating and improving the key moments that define an experience and build trust. Guided by their uniquely empathic heritage, proprietary methods, skilled associates, and holistic approach, NRC Health helps its customers design experiences that exceed expectations, inspire loyalty, and improve well-being among patients, residents, physicians, nurses, and staff. 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, 2021 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
	2022				2021				2022				2021
Revenue	$	37,691			$	37,767			$	113,424			$	109,656
Operating expenses:
Direct		14,524				13,707				43,062				38,184
Selling, general and administrative		10,762				9,523				32,159				29,060
Depreciation, amortization and impairment		1,296				1,399				3,902				5,016
Total operating expenses		26,582				24,629				79,123				72,260
Operating income		11,109				13,138				34,301				37,396
Other income (expense):
Interest income		15				4				34				10
Interest expense		(288	)			(413	)			(923	)			(1,268	)
Other, net		11				(105	)			(69	)			(8	)
Total other income (expense)		(262	)			(514	)			(958	)			(1,266	)
Income before income taxes		10,847				12,624				33,343				36,130
Provision for income taxes		2,549				2,967				8,184				8,297
Net income	$	8,298			$	9,657			$	25,159			$	27,833
Earnings Per Share of Common Stock:
Basic Earnings Per Share	$	0.34			$	0.38			$	1.01			$	1.09
Diluted Earnings Per Share	$	0.33			$	0.38			$	1.00			$	1.08
Weighted average shares and share equivalents outstanding:
Basic		24,716				25,427				25,014				25,423
Diluted		24,847				25,650				25,147				25,655

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts and par value)

		September 30,				December 31,
		2022				2021
Assets
Current assets:
Cash and cash equivalents		$	28,392			$	54,361
Accounts receivable, net			15,378				13,728
Other current assets			5,335				5,618
Total current assets			49,105				73,707
Property and equipment, net			15,761				12,391
Goodwill			61,614				61,614
Other, net			8,503				9,828
Total assets		$	134,983			$	157,540
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of notes payable, net unamortized debt issuance costs		$	4,434			$	4,278
Accounts payable and accrued expenses			5,765				7,393
Accrued compensation			6,023				7,139
Deferred revenue			17,373				17,213
Dividends payable			5,926				3,044
Other current liabilities			1,563				1,321
Total current liabilities			41,084				40,388
Notes payable, net of current portion and unamortized debt issuance costs			18,837				22,269
Other non-current liabilities			7,296				9,546
Total liabilities			67,217				72,203
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 30,922,181 in 2022 and 30,898,600 in 2021, outstanding 24,691,246 in 2022 and 25,361,409 in 2021			31				31
Additional paid-in capital			175,162				173,942
Retained earnings (accumulated deficit)			(28,870	)			(36,112	)
Accumulated other comprehensive loss, foreign currency translation adjustment			(2,608	)			(2,375	)
Treasury stock			(75,949	)			(50,149	)
Total shareholders’ equity			67,766				85,337
Total liabilities and shareholders’ equity		$	134,983			$	157,540

Contact:	Kevin R. Karas
	Chief Financial Officer
	402-475-2525

FAQ

What were NRC Health's Q3 2022 revenue figures?

NRC Health reported revenue of $37.7 million for the third quarter of 2022.

How did net income change for NRC Health in Q3 2022?

Net income for NRC Health in Q3 2022 was $8.3 million, down from $9.7 million in the same quarter of 2021.

What was the diluted earnings per share for NRC Health in Q3 2022?

The diluted earnings per share for NRC Health in the third quarter of 2022 were $0.33, compared to $0.38 in Q3 2021.

What factors contributed to NRC Health's flat revenue in Q3 2022?

The flat revenue was attributed to the phase-out of Canadian operations and a decline in non-core offerings.

How much did NRC Health pay in dividends during Q3 2022?

NRC Health paid $5.9 million in dividends during the third quarter of 2022.