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National Research Corporation Announces Second Quarter 2022 Results

National Research Corporation
National Research Corporation

LINCOLN, Neb., Aug. 02, 2022 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the second quarter 2022.

Q2 2022 financial results compared to Q2 2021:

  • Revenue increased 2% to $37.3 million

  • Operating income decreased 6% to $11.5 million

In commenting on recent events, Michael Hays, Chief Executive Officer, said, “In the second quarter, our team secured the first official contract for the Human Understanding Program with Novant Health, an integrated health system serving four states and comprised of 15 medical centers and 600 clinics. We look forward to additional notable health systems adopting the Program which will take center stage at NRC Health’s 28th annual Symposium August 21–23 in Seattle. Hundreds of organizations will experience the power of delivering personalized health care at scale.”

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Regarding the Company’s 2022 second quarter financial performance, Kevin Karas, Chief Financial Officer, said, “Our growth strategy continues to focus on organic growth levers of increasing revenue from our core offerings, including our new Human Understanding Program, within our existing client base, as well as adding new clients to increase market share. While growth in our core offerings remains strong, decreases in revenue from discontinued and non-core offerings reduced our consolidated revenue growth rate to 2% for the quarter. Consistent with our long-term focus, we increased resource allocation for innovation initiatives, marketing and associate retention, increasing operating expenses for the quarter. We also continued to follow our capital allocation strategy, funding our quarterly dividend and additional share repurchases in the second quarter.”

Revenue for the second quarter ended June 30, 2022, was $37.3 million, compared to $36.4 million for the same quarter in 2021. Net income for the quarter ended June 30, 2022, was $8.3 million, compared to $8.9 million for the quarter ended June 30, 2021.

Diluted earnings per share decreased to $0.33 for the quarter ended June 30, 2022, from diluted earnings per share of $0.35 for the quarter ended June 30, 2021.

A live simulcast of National Research Corporation’s 2022 second quarter conference call will be available online at https://events.q4inc.com/attendee/350372698 on August 3, 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, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement to increase patient engagement and customer loyalty for healthcare providers, payers and other healthcare organizations in the United States and Canada. Our purpose is to enable human understanding by helping our clients to understand what matters most to each person that they serve.

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
June 30

 

 

Six months ended
June 30

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

37,292

 

 

$

36,425

 

 

$

75,734

 

 

$

71,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

13,758

 

 

 

12,536

 

 

 

28,537

 

 

 

24,476

 

Selling, general and administrative

 

10,748

 

 

 

10,016

 

 

 

21,397

 

 

 

19,536

 

Depreciation, amortization and impairment

 

1,290

 

 

 

1,634

 

 

 

2,606

 

 

 

3,618

 

Total operating expenses

 

25,796

 

 

 

24,186

 

 

 

52,540

 

 

 

47,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

11,496

 

 

 

12,239

 

 

 

23,194

 

 

 

24,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

14

 

 

 

3

 

 

 

19

 

 

 

6

 

Interest expense

 

(318

)

 

 

(423

)

 

 

(635

)

 

 

(855

)

Other, net

 

(128

)

 

 

75

 

 

 

(81

)

 

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

(432

)

 

 

(345

)

 

 

(697

)

 

 

(753

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

11,064

 

 

 

11,894

 

 

 

22,497

 

 

 

23,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

2,742

 

 

 

2,950

 

 

 

5,636

 

 

 

5,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

8,322

 

 

$

8,944

 

 

$

16,861

 

 

$

18,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

$

0.33

 

 

$

0.35

 

 

$

0.67

 

 

$

0.71

 

Diluted Earnings Per Share

$

0.33

 

 

$

0.35

 

 

$

0.67

 

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares and share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

25,083

 

 

 

25,426

 

 

 

25,166

 

 

 

25,420

 

Diluted

 

25,211

 

 

 

25,645

 

 

 

25,300

 

 

 

25,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

June 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

32,974

 

 

$

54,361

 

Accounts receivable, net

13,112

 

 

13,728

 

Other current assets

5,694

 

 

5,618

 

Total current assets

51,780

 

 

73,707

 

 

 

 

 

 

 

Property and equipment, net

13,602

 

 

12,391

 

Goodwill

61,614

 

 

61,614

 

Other, net

9,237

 

 

9,828

 

Total assets

$

136,233

 

 

$

157,540

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of notes payable, net unamortized debt issuance costs

$

4,390

 

 

$

4,278

 

Accounts payable and accrued expenses

4,973

 

 

7,393

 

Accrued compensation

6,914

 

 

7,139

 

Deferred revenue

15,496

 

 

17,213

 

Dividends payable

5,944

 

 

3,044

 

Other current liabilities

1,870

 

 

1,321

 

Total current liabilities

39,587

 

 

40,388

 

 

 

 

 

 

 

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

20,044

 

 

22,269

 

Other non-current liabilities

7,978

 

 

9,546

 

Total liabilities

67,609

 

 

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 30,898,600 in 2022 and 2021, outstanding 24,767,118 in 2022 and 25,361,409 in 2021

31

 

 

31

 

Additional paid-in capital

174,561

 

 

173,942

 

Retained earnings (accumulated deficit)

(31,242

)

 

(36,112

)

Accumulated other comprehensive loss, foreign currency translation adjustment

(2,423

)

 

(2,375

)

Treasury stock

(72,303

)

 

(50,149

)

Total shareholders’ equity

68,624

 

 

85,337

 

Total liabilities and shareholders’ equity

$

136,233

 

 

$

157,540

 

 

 

 

 

 

 

 

 

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