National Research Corporation Announces Second Quarter 2022 Results
August 02 2022 - 5:00PM
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.”
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
SUBSIDIARYUnaudited Condensed Consolidated
Statements of Income(In thousands, except per share
data)
|
Three months endedJune 30 |
|
|
Six months endedJune 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
SUBSIDIARYUnaudited 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 Officer402-475-2525
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