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National Research Corporation Announces Fourth Quarter and Calendar Year 2022 Results

National Research Corporation
National Research Corporation

LINCOLN, Neb., Feb. 14, 2023 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the fourth quarter and calendar year 2022.

Regarding the Company’s 2022 annual performance, Kevin Karas, Chief Financial Officer, said, “We continued to grow revenue from core offerings, including our Human Understanding Program, resulting in 7% year-over-year revenue growth, partially offset by the phase out of our Canadian operations and other non-core offerings. Adoption of the Human Understanding Program has continued to increase with recent new client additions including St. Bernards Healthcare, Longstreet Clinic, and Legacy Community Health. In addition, we are proud to have recently received the Best in KLAS 2023 Award for Patient Experience Improvement. This recognition affirms our leadership position and focus on transforming the healthcare industry with a human-first approach.”

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 2022. For the full year, the Company funded $12.2 million for innovation and growth, $21.0 million for dividend payments, and $27.6 million for share repurchases.

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Related to the fourth quarter ended December 31, 2022, other expense increased primarily due to a $2.6 million reclassification of the cumulative translation adjustment into earnings from the substantial liquidation of our investment in our Canadian subsidiary.

Diluted earnings per share decreased to $0.27 for the quarter ended December 31, 2022, from diluted earnings per share of $0.38 for the quarter ended December 31, 2021. Diluted earnings per share decreased to $1.27 for the year ended December 31, 2022, from diluted earnings per share of $1.46 for the year ended December 31, 2021.

A live simulcast of National Research Corporation’s 2022 fourth quarter conference call will be available online at https://events.q4inc.com/attendee/759565253 on February 15, 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, 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
December 31

 

 

Twelve months ended
December 31

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

38,144

 

 

$

38,298

 

 

$

151,568

 

 

$

147,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

 

13,987

 

 

 

14,167

 

 

 

57,049

 

 

 

52,350

 

Selling, general and administrative

 

 

10,541

 

 

 

9,901

 

 

 

42,699

 

 

 

38,960

 

Depreciation, amortization and impairment

 

 

1,375

 

 

 

1,357

 

 

 

5,277

 

 

 

6,374

 

Total operating expenses

 

 

25,903

 

 

 

25,425

 

 

 

105,025

 

 

 

97,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

12,241

 

 

 

12,873

 

 

 

46,543

 

 

 

50,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

134

 

 

 

4

 

 

 

168

 

 

 

14

 

Interest expense

 

 

(286

)

 

 

(399

)

 

 

(1,209

)

 

 

(1,667

)

Reclassification of cumulative translation into earnings

 

 

(2,569

)

 

 

--

 

 

 

(2,569

)

 

 

--

 

Other, net

 

 

(49

)

 

 

13

 

 

 

(118

)

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

(2,770

)

 

 

(382

)

 

 

(3,728

)

 

 

(1,649

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

9,471

 

 

 

12,491

 

 

 

42,815

 

 

 

48,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

2,830

 

 

 

2,858

 

 

 

11,015

 

 

 

11,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

6,641

 

 

$

9,633

 

 

$

31,800

 

 

$

37,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.27

 

 

$

0.38

 

 

$

1.28

 

 

$

1.47

 

Diluted Earnings Per Share

 

$

0.27

 

 

$

0.38

 

 

$

1.27

 

 

$

1.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares and share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,648

 

 

 

25,419

 

 

 

24,922

 

 

 

25,422

 

Diluted

 

 

24,775

 

 

 

25,597

 

 

 

25,052

 

 

 

25,640

 



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

 

 

December 31,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

25,026

 

 

$

54,361

 

Accounts receivable, net

 

 

14,461

 

 

 

13,728

 

Other current assets

 

 

4,229

 

 

 

5,618

 

Total current assets

 

 

43,716

 

 

 

73,707

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

17,248

 

 

 

12,391

 

Goodwill

 

 

61,614

 

 

 

61,614

 

Other, net

 

 

7,883

 

 

 

9,828

 

Total assets

 

$

130,461

 

 

$

157,540

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of notes payable, net unamortized debt issuance costs

 

$

4,491

 

 

$

4,278

 

Accounts payable and accrued expenses

 

 

5,136

 

 

 

7,393

 

Accrued compensation

 

 

4,551

 

 

 

7,139

 

Deferred revenue

 

 

15,198

 

 

 

17,213

 

Dividends payable

 

 

2,956

 

 

 

3,044

 

Other current liabilities

 

 

1,085

 

 

 

1,321

 

Total current liabilities

 

 

33,417

 

 

 

40,388

 

 

 

 

 

 

 

 

 

 

Notes payable, net of current portion and unamortized debt issuance costs

 

 

17,690

 

 

 

22,269

 

Other non-current liabilities

 

 

7,321

 

 

 

9,546

 

Total liabilities

 

 

58,428

 

 

 

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 24,628,173 in 2022 and 25,361,409 in 2021

 

 

31

 

 

 

31

 

Additional paid-in capital

 

 

175,453

 

 

 

173,942

 

Retained earnings (accumulated deficit)

 

 

(25,184

)

 

 

(36,112

)

Accumulated other comprehensive loss, foreign currency translation adjustment

 

 

--

 

 

 

(2,375

)

Treasury stock

 

 

(78,267

)

 

 

(50,149

)

Total shareholders’ equity

 

 

72,033

 

 

 

85,337

 

Total liabilities and shareholders’ equity

 

$

130,461

 

 

$

157,540

 

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