National Research Corporation Announces Third Quarter 2023 Results

Rhea-AI Summary

NRC Health (NASDAQ: NRC) announced results for the third quarter 2023, reporting increased new sales and sequential quarterly operating margin improvement. The company remains well-positioned from a capital standpoint, with $20 million of net debt and $25 million available on its revolving line of credit. However, diluted earnings per share decreased to $0.32 for the quarter ended September 30, 2023, from $0.33 for the same period in 2022.

Positive

• Increased new sales and sequential quarterly operating margin improvement
• Well-positioned from a capital standpoint with $20 million net debt and $25 million available on its revolving line of credit

Negative

• Diluted earnings per share decreased to $0.32 for the quarter ended September 30, 2023, from $0.33 for the same period in 2022

LINCOLN, Neb., Nov. 07, 2023 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the third quarter 2023.

Regarding the Company’s 2023 third quarter, Kevin Karas, Chief Financial Officer, said, “New sales increased compared to the third quarter of 2022, supported by growth in our Human Understanding Program, with adoption by 91 healthcare organizations as of September 30, 2023. While building our sales pipeline, we are also highly focused on controlling costs in an inflationary environment. We have realized sequential quarterly operating margin improvement in the last two quarters and will continue to emphasize returning to our historical operating margins.”

Mr. Karas continued: “From a capital standpoint, NRC remains well-positioned to execute the entire range of capital allocation alternatives, including funding innovation and growth investments, shareholder dividends and share repurchases. At September 30, 2023, the Company had approximately $20 million of net debt and $25 million available on its revolving line of credit after funding $3.7 million for innovation and growth, $27.5 million for dividend payments, and $310,000 for share repurchases during the quarter.”

Diluted earnings per share decreased to $0.32 for the quarter ended September 30, 2023, from diluted earnings per share of $0.33 for the quarter ended September 30, 2022.

A live simulcast of National Research Corporation’s 2023 third quarter conference call will be available online at https://events.q4inc.com/attendee/533804877 November 8, 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,” “focus,” “will,” 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 September 30								Nine months ended September 30
		2023				2022				2023				2022
Revenue		$	37,945			$	37,691			$	110,579			$	113,424
Operating expenses:
Direct			14,633				14,524				42,222				43,062
Selling, general and administrative			11,802				10,762				35,552				32,159
Depreciation and amortization			1,555				1,296				4,469				3,902
Total operating expenses			27,990				26,582				82,243				79,123
Operating income			9,955				11,109				28,336				34,301
Other income (expense):
Interest income			256				15				779				34
Interest expense			(160	)			(288	)			(594	)			(923	)
Other, net			(12	)			11				(27	)			(69	)
Total other income (expense)			84				(262	)			158				(958	)
Income before income taxes			10,039				10,847				28,494				33,343
Provision for income taxes			2,163				2,549				6,381				8,184
Net income		$	7,876			$	8,298			$	22,113			$	25,159
Earnings Per Share of Common Stock:
Basic Earnings Per Share		$	0.32			$	0.34			$	0.90			$	1.01
Diluted Earnings Per Share		$	0.32			$	0.33			$	0.89			$	1.00
Weighted average shares and share equivalents outstanding:
Basic			24,560				24,716				24,574				25,014
Diluted			24,695				24,847				24,715				25,147

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts and par value)
			September 30,				December 31,
			2023				2022
Assets
Current assets:
Cash and cash equivalents			$	3,828			$	25,026
Accounts receivable, net				14,467				14,461
Other current assets				6,448				4,229
Total current assets				24,743				43,716
Property and equipment, net				25,589				17,248
Goodwill				61,614				61,614
Other, net				8,190				7,883
Total assets			$	120,136			$	130,461
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of notes payable			$	4,665			$	4,491
Line of credit				5,000				--
Accounts payable and accrued expenses				6,027				5,136
Accrued compensation				5,029				4,551
Deferred revenue				16,238				15,198
Dividends payable				2,947				2,956
Other current liabilities				899				1,085
Total current liabilities				40,805				33,417
Notes payable, net of current portion and unamortized debt issuance costs				14,164				17,690
Other non-current liabilities				7,295				7,321
Total liabilities				62,264				58,428
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 30,956,479 in 2023 and 30,922,181 in 2022, outstanding 24,562,068 in 2023 and 24,628,173 in 2022				31				31
Additional paid-in capital				176,714				175,453
Retained earnings (accumulated deficit)				(36,482	)			(25,184	)
Treasury stock				(82,391	)			(78,267	)
Total shareholders’ equity				57,872				72,033
Total liabilities and shareholders’ equity			$	120,136			$	130,461

 

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

FAQ

What were the key financial results announced by NRC Health (NASDAQ: NRC) for the third quarter 2023?

NRC Health reported increased new sales and sequential quarterly operating margin improvement, but diluted earnings per share decreased to $0.32 from $0.33 for the same period in 2022.

What is the capital position of NRC Health (NASDAQ: NRC) as of September 30, 2023?

As of September 30, 2023, NRC Health had $20 million of net debt and $25 million available on its revolving line of credit.

How can I access the live simulcast of NRC Health's 2023 third quarter conference call?

The live simulcast will be available online at https://events.q4inc.com/attendee/533804877 on November 8, 2023, beginning at 11:00 a.m. Eastern time.