National Research Corporation Announces 2019 Fourth Quarter and Year-End Results
February 11 2020 - 5:00PM
National Research Corporation (NASDAQ:NRC) today announced 2019
fourth quarter and year-end financial results.
Fourth quarter 2019 compared to the fourth
quarter 2018:
- Total Contract Value increased to $144.8 million, up 10%
- Revenue increased 6% to $32.6 million
- Operating Income increased 27% to $12.0 million
2019 calendar year results compared to 2018:
- Net New Sales of $27.7 million, up 18%
- Revenue increased 7% to $128.0 million
- Operating Income increased 22% to $43.0 million
- Voice of the Customer platform contract value surpassed $100
million, a 31% increase
Commenting on recent performance, Michael D.
Hays, chief executive officer of National Research Corporation,
said, “Our performance throughout the year reflects strong gains
across the continuum of care where we witnessed growth in new
customer acquisition and increased spend from existing customers
which further validated increasing momentum for NRC’s
industry-leading Voice of the Customer platform.
Revenue for the quarter ended December 31, 2019,
was $32.6 million, compared to $30.6 million for the same quarter
in 2018. Net income for the quarter ended December 31, 2019, was
$8.7 million, compared to $7.8 million for the quarter ended
December 31, 2018. Diluted earnings per share increased to $0.34
for the common stock (formerly Class A) for the quarter ended
December 31, 2019, from diluted earnings per share of $0.30 for the
quarter ended December 31, 2018.
Regarding the Company’s financial performance,
Kevin Karas, chief financial officer of National Research
Corporation, said, “The significant growth in contract value,
combined with the continued shift towards our higher margin VoC
platform solutions, translated into strong financial performance
with record revenue and operating income in the fourth quarter
2019. On a year-to-date basis, we increased net new sales by 18%
over 2018 driven by the compelling value proposition of our VoC
platform solutions.”
A listen-only simulcast of National Research
Corporation’s 2019 fourth quarter conference call will be available
online at http://edge.media-server.com/mmc/p/c88rjqy6 on
February 12, 2020, 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 38 years, National Research
Corporation has been a leading provider of analytics and insights
that facilitate measurement and improvement of the patient and
employee experience while also increasing patient engagement and
customer loyalty for healthcare providers, payers and other
healthcare organizations in the United States and Canada. The
Company’s solutions enable its clients to understand the voice of
the customer with greater clarity, immediacy and depth.
This press release includes “forward-looking”
statements related to the Company that can generally be identified
as describing the Company’s future plans, objectives or goals. Such
forward-looking statements are subject to risks and uncertainties
that could cause actual results or outcomes to differ materially
from those currently anticipated. These forward-looking statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. For further information
about the factors that could affect the Company’s future results,
please see the Company’s filings with the Securities and Exchange
Commission.
NATIONAL RESEARCH
CORPORATION AND
SUBSIDIARYUnaudited Condensed
Consolidated Statements of Income(In thousands, except per
share data)
|
Three months ended December 31, |
|
Twelve months endedDecember 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
32,623 |
|
|
$ |
30,639 |
|
|
$ |
127,982 |
|
|
$ |
119,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct expenses |
|
11,166 |
|
|
|
11,892 |
|
|
|
46,435 |
|
|
|
47,577 |
|
Selling, general and administrative |
|
8,241 |
|
|
|
7,885 |
|
|
|
32,973 |
|
|
|
31,371 |
|
Depreciation and amortization |
|
1,254 |
|
|
|
1,467 |
|
|
|
5,539 |
|
|
|
5,463 |
|
Total operating expenses |
|
20,661 |
|
|
|
21,244 |
|
|
|
84,947 |
|
|
|
84,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
11,962 |
|
|
|
9,395 |
|
|
|
43,035 |
|
|
|
35,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
13 |
|
|
|
6 |
|
|
|
37 |
|
|
|
62 |
|
Interest expense |
|
(478 |
) |
|
|
(522 |
) |
|
|
(2,091 |
) |
|
|
(1,513 |
) |
Other, net |
|
(132 |
) |
|
|
661 |
|
|
|
(462 |
) |
|
|
885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
(597 |
) |
|
|
145 |
|
|
|
(2,516 |
) |
|
|
(566 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
11,365 |
|
|
|
9,540 |
|
|
|
40,519 |
|
|
|
34,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
2,667 |
|
|
|
1,739 |
|
|
|
8,113 |
|
|
|
4,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
8,698 |
|
|
$ |
7,801 |
|
|
$ |
32,406 |
|
|
$ |
30,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common (formerly Class A) |
$ |
0.35 |
|
|
$ |
0.32 |
|
|
$ |
1.30 |
|
|
$ |
1.08 |
|
Class B |
$ |
-- |
|
|
$ |
-- |
|
|
$ |
-- |
|
|
$ |
1.31 |
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common (formerly Class A) |
$ |
0.34 |
|
|
$ |
0.30 |
|
|
$ |
1.26 |
|
|
$ |
1.04 |
|
Class B |
$ |
-- |
|
|
$ |
-- |
|
|
$ |
-- |
|
|
$ |
1.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and
share equivalents outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common (formerly Class A) - basic |
|
24,852 |
|
|
|
24,684 |
|
|
|
24,809 |
|
|
|
23,562 |
|
Class B - basic |
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
3,527 |
|
Common (formerly Class A) - diluted |
|
25,715 |
|
|
|
25,534 |
|
|
|
25,652 |
|
|
|
24,448 |
|
Class B - diluted |
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
3,628 |
|
NATIONAL RESEARCH
CORPORATION AND
SUBSIDIARYUnaudited Condensed
Consolidated Balance Sheets(Dollars in thousands, except
per share amounts and par value)
|
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,517 |
|
|
$ |
12,991 |
|
Accounts receivable, net |
|
|
11,639 |
|
|
|
11,922 |
|
Income taxes receivable |
|
|
69 |
|
|
|
348 |
|
Other current assets |
|
|
3,932 |
|
|
|
3,149 |
|
Total current assets |
|
|
29,157 |
|
|
|
28,410 |
|
|
|
|
|
|
|
|
|
|
Net property and equipment |
|
|
13,530 |
|
|
|
14,153 |
|
Goodwill |
|
|
57,935 |
|
|
|
57,831 |
|
Other, net |
|
|
10,063 |
|
|
|
7,638 |
|
Total assets |
|
$ |
110,685 |
|
|
$ |
108,032 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Notes payable and line of credit |
|
$ |
4,378 |
|
|
$ |
3,667 |
|
Accounts payable and accrued expenses |
|
|
4,913 |
|
|
|
3,447 |
|
Accrued compensation |
|
|
6,086 |
|
|
|
5,798 |
|
Income taxes payable |
|
|
366 |
|
|
|
636 |
|
Dividends payable |
|
|
5,239 |
|
|
|
17,113 |
|
Deferred revenue |
|
|
16,648 |
|
|
|
16,244 |
|
Other current liabilities |
|
|
525 |
|
|
|
204 |
|
Total current liabilities |
|
|
38,155 |
|
|
|
47,109 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current portion |
|
|
29,795 |
|
|
|
34,176 |
|
Other non-current liabilities |
|
|
9,843 |
|
|
|
7,664 |
|
Total liabilities |
|
|
77,793 |
|
|
|
88,949 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 2,000,000 shares, none
issued |
|
|
-- |
|
|
|
-- |
|
Common stock, $0.001 par value; authorized 60,000,000 shares,
issued 30,151,574 in 2019 and 29,917,667 in 2018, outstanding
24,947,500 in 2019 and 24,800,796 in 2018 |
|
|
30 |
|
|
|
30 |
|
Additional paid-in capital |
|
|
162,154 |
|
|
|
157,312 |
|
Retained earnings (accumulated deficit) |
|
|
(93,357 |
) |
|
|
(106,339 |
) |
Accumulated other comprehensive loss, foreign currency translation
adjustment |
|
|
(2,209 |
) |
|
|
(2,916 |
) |
Treasury stock |
|
|
(33,726 |
) |
|
|
(29,004 |
) |
Total shareholders’ equity |
|
|
32,892 |
|
|
|
19,083 |
|
Total liabilities and shareholders’ equity |
|
$ |
110,685 |
|
|
$ |
108,032 |
|
Contact: |
Kevin
R. KarasChief Financial
Officer402-475-2525 |
National Research (NASDAQ:NRC)
Historical Stock Chart
From Jun 2024 to Jul 2024
National Research (NASDAQ:NRC)
Historical Stock Chart
From Jul 2023 to Jul 2024