National Research Corporation Announces First Quarter 2022 Results
May 03 2022 - 5:00PM
National Research Corporation, dba NRC Health, (NASDAQ:NRC) today
announced results for the first quarter 2022.
Q1 2022 financial results compared
to Q1 2021:
- Revenue increased 8% to $38.4
million
- Operating income decreased 3% to
$11.7 million
In commenting on recent events, Michael Hays,
Chief Executive Officer, said “At year-end 2021, we announced the
upcoming launch of NRC’s Health’s Human Understanding Program which
enables health systems to deliver personalized care at scale. This
past quarter, large numbers of current and prospective clients
previewed and scrutinized the program. Never have I witnessed such
absolute alignment with any product offering, confirming to me we
are definitely on the right path. However, achieving personalized
care at scale will not be instantaneous for any client
organization; rather, accomplished by measured deployment of the
Program over time and perhaps, similar to adoption trends we
experienced with our digital Voice of the Customer offerings.
Regarding the Company’s first 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. As a result, revenue
growth for the quarter was 8% over the prior year and we continued
to see higher growth rates in our core offerings. Our operating
expenses for the quarter increased at a higher rate as we allocated
more resources towards innovation initiatives and associate
empowerment benefits. We also utilized our strong cash flow to fund
our quarterly dividend and additional share repurchases in the
first quarter.”
Revenue for the first quarter ended March 31,
2022, was $38.4 million, compared to $35.5 million for the same
quarter in 2021. Net income for the quarter ended March 31, 2022,
was $8.5 million, compared to $9.2 million for the quarter ended
March 31, 2021.
Diluted earnings per share decreased to $0.34
for the quarter ended March 31, 2022, from diluted earnings per
share of $0.36 for the quarter ended March 31, 2021.
Cash Flow from Operations was $8.3 million down
from $14.4 million, leaving us with a Net Cash position (Cash minus
Notes Payable) of $21.8 million, up from $13.8 million at March 31,
2021.
A live simulcast of National Research
Corporation’s 2022 first quarter conference call will be available
online at https://events.q4inc.com/attendee/864665437 on May
4, 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
SUBSIDIARYUnaudited Condensed Consolidated
Statements of Income(In thousands, except per
share data)
|
Three months ended
March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
Revenue |
$ |
38,441 |
|
|
$ |
35,464 |
|
|
|
|
Operating expenses: |
|
|
Direct |
|
14,779 |
|
|
|
11,940 |
|
Selling, general and administrative |
|
10,649 |
|
|
|
9,520 |
|
Depreciation, amortization and impairment |
|
1,316 |
|
|
|
1,984 |
|
Total operating expenses |
|
26,744 |
|
|
|
23,444 |
|
|
|
|
Operating income |
|
11,697 |
|
|
|
12,020 |
|
|
|
|
Other
income (expense): |
|
|
Interest income |
|
5 |
|
|
|
3 |
|
Interest expense |
|
(317 |
) |
|
|
(432 |
) |
Other, net |
|
48 |
|
|
|
21 |
|
|
|
|
Total other income (expense) |
|
(264 |
) |
|
|
(408 |
) |
|
|
|
Income before income taxes |
|
11,433 |
|
|
|
11,612 |
|
|
|
|
Income
tax provision (benefit) |
|
2,894 |
|
|
|
2,380 |
|
|
|
|
Net income |
$ |
8,539 |
|
|
$ |
9,232 |
|
|
|
|
Earnings Per Share of Common Stock: |
|
|
Basic Earnings Per Share |
$ |
0.34 |
|
|
$ |
0.36 |
|
Diluted Earnings Per Share |
$ |
0.34 |
|
|
$ |
0.36 |
|
|
|
|
Weighted average shares and
share equivalents outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
25,251 |
|
|
|
25,414 |
|
Diluted |
|
25,390 |
|
|
|
25,668 |
|
NATIONAL RESEARCH CORPORATION AND
SUBSIDIARYUnaudited Condensed Consolidated Balance
Sheets(Dollars in thousands, except share amounts and par
value)
|
March 31, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
47,290 |
|
|
$ |
54,361 |
|
Accounts receivable, net |
|
15,910 |
|
|
|
13,728 |
|
Other current assets |
|
5,721 |
|
|
|
5,618 |
|
Total current assets |
|
68,921 |
|
|
|
73,707 |
|
|
|
|
|
Property and equipment, net |
|
12,853 |
|
|
|
12,391 |
|
Goodwill |
|
61,614 |
|
|
|
61,614 |
|
Other, net |
|
9,766 |
|
|
|
9,828 |
|
Total assets |
$ |
153,154 |
|
|
$ |
157,540 |
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Current portion of notes payable, net unamortized debt issuance
costs |
$ |
4,333 |
|
|
$ |
4,278 |
|
Accounts payable and accrued expenses |
|
4,675 |
|
|
|
7,393 |
|
Accrued compensation |
|
5,935 |
|
|
|
7,139 |
|
Deferred revenue |
|
16,693 |
|
|
|
17,213 |
|
Dividends payable |
|
6,047 |
|
|
|
3,044 |
|
Other current liabilities |
|
3,886 |
|
|
|
1,321 |
|
Total current liabilities |
|
41,569 |
|
|
|
40,388 |
|
|
|
|
|
Notes payable, net of current portion and unamortized debt issuance
costs |
|
21,161 |
|
|
|
22,269 |
|
Other non-current liabilities |
|
8,938 |
|
|
|
9,546 |
|
Total liabilities |
|
71,668 |
|
|
|
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
25,194,447 in 2022 and 25,361,409 in 2021 |
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
174,227 |
|
|
|
173,942 |
|
Retained earnings (accumulated deficit) |
|
(33,620 |
) |
|
|
(36,112 |
) |
Accumulated other comprehensive loss, foreign currency translation
adjustment |
|
(2,324 |
) |
|
|
(2,375 |
) |
Treasury stock |
|
(56,828 |
) |
|
|
(50,149 |
) |
Total shareholders’ equity |
|
81,486 |
|
|
|
85,337 |
|
Total liabilities and shareholders’ equity |
$ |
153,154 |
|
|
$ |
157,540 |
|
Contact: |
Kevin R.
Karas Chief
Financial Officer402-475-2525 |
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