National Research Corporation Announces Third Quarter and Year-to-Date 2020 Results
National Research Corporation (NASDAQ:NRC) reported robust financial results for Q3 2020. Net New Sales reached a record $11.2 million, contributing to a 10% increase in Total Recurring Contract Value at $147.5 million. The Voice of the Customer platform saw a 27% growth to $115.5 million. Revenue rose by 3% to $33.5 million, and both Operating and Net Income increased by 18%, totaling $12.0 million and $9.6 million, respectively. Despite a decrease in total operating expenses by 1%, direct expenses rose slightly. The company benefited from lower travel costs due to COVID-19 restrictions.
- Record Net New Sales of $11.2 million in Q3 2020.
- Total Recurring Contract Value increased by 10% year-over-year, reaching $147.5 million.
- Voice of the Customer platform recurring contract value grew by 27% to $115.5 million.
- Revenue increased by 3% to $33.5 million.
- Operating Income surged by 18% to $12.0 million.
- Net Income rose by 18% to $9.6 million.
- Operating income margin improved to 36% from 31% year-over-year.
- Year-to-date revenue increased by 3% to $98.5 million.
- Direct expenses increased to $12.2 million, up from $12.1 million year-over-year despite overall operating expenses decreasing.
- Increase in fixed expenses due to salary and benefit costs.
Net New Sales and Total Contract Value Continue Impressive Growth
LINCOLN, Neb., Nov. 03, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) (the “Company,” “we,” or “our”) today announced results for the third quarter of 2020.
Third quarter 2020 compared to the third quarter 2019:
- Record Net New Sales of
$11.2 million - Total Recurring Contract Value increased
10% to$147.5 million - Voice of the Customer platform recurring contract value grew to
$115.5 million , a27% increase - Revenue increased
3% to$33.5 million - Operating Income increased
18% to$12.0 million - Net Income increased
18% to$9.6 million
Demand for our Voice of the Customer (VOC) platform offerings remained strong in the third quarter 2020. Net New Sales were a record
Total Recurring Contract Value has increased by
Third quarter 2020 revenue was
Total operating expenses of
Direct expenses increased to
Selling, general and administrative expenses decreased to
Depreciation and amortization expense increased to
Other income and expense decreased to
The Company had an income tax provision of
Net income for third quarter 2020 was
On a year-to-date basis, 2020 revenue increased by
The Company also announced that Michael Hays, current Chief Executive Officer, was appointed as the Company’s President effective as of October 2, 2020, to fill the vacancy created by the resignation of Steven Jackson.
For more than 39 years, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement of human understanding.
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,” 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, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. In this press release, the statements relating to the future impact of adding additional clients are forward-looking statements. 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, | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||
| Revenue | $ | 33,477 | $ | 32,465 | $ | 98,503 | $ | 95,359 | ||||||
| Insurance Recoveries | 533 | -- | 533 | -- | ||||||||||
| Operating expenses: | ||||||||||||||
| Direct expenses | 12,189 | 12,109 | 36,369 | 35,269 | ||||||||||
| Selling, general and administrative | 7,953 | 8,706 | 25,554 | 24,732 | ||||||||||
| Depreciation and amortization | 1,847 | 1,430 | 4,623 | 4,285 | ||||||||||
| Total operating expenses | 21,989 | 22,245 | 66,546 | 64,286 | ||||||||||
| Operating income | 12,021 | 10,220 | 32,490 | 31,073 | ||||||||||
| Other income (expense): | ||||||||||||||
| Interest income | 2 | 10 | 15 | 24 | ||||||||||
| Interest expense | (451) | (510) | (1,366) | (1,613) | ||||||||||
| Other, net | 94 | 89 | 454 | (330) | ||||||||||
| Total other expense | (355) | (411) | (897) | (1,919) | ||||||||||
| Income before income taxes | 11,666 | 9,809 | 31,593 | 29,154 | ||||||||||
| Provision for income taxes | 2,088 | 1,690 | 2,545 | 5,446 | ||||||||||
| Net income | $ | 9,578 | $ | 8,119 | $ | 29,048 | $ | 23,708 | ||||||
| Earnings Per Share of Common Stock: | ||||||||||||||
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FAQ
What were the key financial results for National Research Corporation in Q3 2020?
National Research Corporation reported a record Net New Sales of $11.2 million, revenue of $33.5 million (up 3%), and an Operating Income of $12.0 million (up 18%).
How much did the Voice of the Customer platform grow in Q3 2020?
The Voice of the Customer platform recurring contract value grew by 27% to $115.5 million in Q3 2020.
What was the Net Income for NRC in the third quarter of 2020?
Net Income for NRC in Q3 2020 was $9.6 million, an increase of 18% from the previous year.
How did National Research Corporation's Total Recurring Contract Value change?
Total Recurring Contract Value increased by 10% year-over-year to $147.5 million.
What was the year-to-date revenue growth for NRC in 2020?
Year-to-date revenue for NRC increased by 3% to $98.5 million compared to the same period in 2019.
National Research Corporation
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Health Information Services
Services-commercial Physical & Biological Research
United States of America
LINCOLN
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