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National Research Corp

National Research Corporation Announces Third Quarter Results

LINCOLN, Neb.--(BUSINESS WIRE)--Oct. 25, 2024-- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the third quarter 2024 and other corporate developments.

Financial Results

Revenue for the quarter was approximately $35.8 million compared with approximately $37.9 million in the 2023 quarter. Earnings per diluted share were $0.24 compared with $0.32 for the 2023 quarter. At September 30, 2024, the Company’s net indebtedness (total borrowing minus cash and cash equivalents) was approximately $50.2 million. Total recurring contract value (TRCV) was approximately $131.6 million at September 30, 2024.

Dividends and Stock Repurchases

During the quarter, the Company returned approximately $11.5 million to stockholders in the form of dividends and stock repurchases. The Company repurchased approximately 395,000 shares for approximately $8.6 million and paid its regular quarterly dividend of $0.12 (twelve cents) per share, or approximately $2.9 million.

The Company’s Board of Directors has declared a quarterly cash dividend of $0.12 (twelve cents) per share payable Friday, January 10, 2025, to stockholders of record as of the close of business on Friday, December 27, 2024.

About NRC Health

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,” “potential,” “will,” derivations thereof, and similar terms and phrases. In this press release, the statements related to future dividends are forward-looking statements. 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, 2023, 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

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

35,819

 

 

$

37,945

 

 

$

106,154

 

 

$

110,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

 

15,305

 

 

 

14,633

 

 

 

42,583

 

 

 

42,222

 

Selling, general and administrative

 

 

10,988

 

 

 

11,802

 

 

 

33,459

 

 

 

35,552

 

Depreciation and amortization

 

 

1,546

 

 

 

1,555

 

 

 

4,506

 

 

 

4,469

 

Total operating expenses

 

 

27,839

 

 

 

27,990

 

 

 

80,548

 

 

 

82,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

7,980

 

 

 

9,955

 

 

 

25,606

 

 

 

28,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

34

 

 

 

256

 

 

 

103

 

 

 

779

 

Interest expense

 

 

(706

)

 

 

(160

)

 

 

(1,866

)

 

 

(594

)

Other, net

 

 

(12

)

 

 

(12

)

 

 

(28

)

 

 

(27

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

(684

)

 

 

84

 

 

(1,791

)

 

 

158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

7,296

 

 

 

10,039

 

 

 

23,815

 

 

 

28,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

1,608

 

 

 

2,163

 

 

 

5,592

 

 

 

6,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

5,688

 

 

$

7,876

 

 

$

18,223

 

 

$

22,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.24

 

 

$

0.32

 

 

$

0.76

 

 

$

0.90

 

Diluted Earnings Per Share

 

$

0.24

 

 

$

0.32

 

 

$

0.76

 

 

$

0.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares and share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

23,721

 

 

 

24,560

 

 

 

23,820

 

 

 

24,574

 

Diluted

 

 

23,745

 

 

 

24,695

 

 

 

23,868

 

 

 

24,715

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

(Dollars in thousands, except share amounts and par value)

 

 

 

September 30,

2024

 

 

December 31,

2023

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,461

 

 

$

6,653

 

Accounts receivable, net

 

 

11,059

 

 

 

12,378

 

Other current assets

 

 

6,180

 

 

 

5,329

 

Total current assets

 

 

20,700

 

 

 

24,360

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

36,320

 

 

 

28,205

 

Goodwill

 

 

66,209

 

 

 

61,614

 

Other, net

 

 

8,569

 

 

 

8,258

 

Total assets

 

$

131,798

 

 

$

122,437

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of notes payable, net of unamortized debt issuance costs

 

$

3,721

 

 

$

7,214

 

Line of credit

 

 

5,000

 

 

 

--

 

Accounts payable and accrued expenses

 

 

9,373

 

 

 

6,194

 

Accrued compensation

 

 

5,392

 

 

 

3,953

 

Deferred revenue

 

 

17,301

 

 

 

14,834

 

Dividends payable

 

 

2,817

 

 

 

2,906

 

Other current liabilities

 

 

673

 

 

 

1,102

 

Total current liabilities

 

 

44,277

 

 

 

36,203

 

 

 

 

 

 

 

 

 

 

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

 

 

44,910

 

 

 

29,470

 

Other non-current liabilities

 

 

7,988

 

 

 

7,809

 

Total liabilities

 

 

97,175

 

 

 

73,482

 

 

 

 

 

 

 

 

 

 

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 31,072,144 in 2024 and 31,002,919 in 2023, outstanding 23,476,040 in 2024 and 24,219,887 in 2023

 

 

31

 

 

 

31

 

Additional paid-in capital

 

 

180,061

 

 

 

178,213

 

Retained earnings (accumulated deficit)

 

 

(20,855

)

 

 

(30,530

)

Treasury stock

 

 

(124,614

)

 

 

(98,759

)

Total shareholders’ equity

 

$

34,623

 

 

$

48,955

 

Total liabilities and shareholders’ equity

 

$

131,798

 

 

$

122,437

 

 

Linda A. Stacy
Principal Financial Officer
402-475-2525

Source: National Research Corporation