National Research Corporation Announces Fourth Quarter and Calendar Year 2022 Results
February 14 2023 - 5:00PM
National Research Corporation, dba NRC Health, (NASDAQ:NRC) today
announced results for the fourth quarter and calendar year 2022.
Regarding the Company’s 2022 annual performance,
Kevin Karas, Chief Financial Officer, said, “We continued to grow
revenue from core offerings, including our Human Understanding
Program, resulting in 7% year-over-year revenue growth, partially
offset by the phase out of our Canadian operations and other
non-core offerings. Adoption of the Human Understanding Program has
continued to increase with recent new client additions including
St. Bernards Healthcare, Longstreet Clinic, and Legacy Community
Health. In addition, we are proud to have recently received the
Best in KLAS 2023 Award for Patient Experience Improvement. This
recognition affirms our leadership position and focus on
transforming the healthcare industry with a human-first
approach.”
The Company’s Board of Directors maintained its
capital allocation priorities of funding innovation and growth
investments, including merger and acquisition activity as well as
internal projects, shareholder dividends and share repurchases
during 2022. For the full year, the Company funded $12.2 million
for innovation and growth, $21.0 million for dividend payments, and
$27.6 million for share repurchases.
Related to the fourth quarter ended December 31,
2022, other expense increased primarily due to a $2.6 million
reclassification of the cumulative translation adjustment into
earnings from the substantial liquidation of our investment in our
Canadian subsidiary.
Diluted earnings per share decreased to $0.27
for the quarter ended December 31, 2022, from diluted earnings per
share of $0.38 for the quarter ended December 31, 2021. Diluted
earnings per share decreased to $1.27 for the year ended December
31, 2022, from diluted earnings per share of $1.46 for the year
ended December 31, 2021.
A live simulcast of National Research
Corporation’s 2022 fourth quarter conference call will be available
online at https://events.q4inc.com/attendee/759565253 on February
15, 2023, 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, 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,” 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 endedDecember 31 |
|
|
Twelve months endedDecember 31 |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
38,144 |
|
|
$ |
38,298 |
|
|
$ |
151,568 |
|
|
$ |
147,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
|
13,987 |
|
|
|
14,167 |
|
|
|
57,049 |
|
|
|
52,350 |
|
Selling, general and administrative |
|
|
10,541 |
|
|
|
9,901 |
|
|
|
42,699 |
|
|
|
38,960 |
|
Depreciation, amortization and impairment |
|
|
1,375 |
|
|
|
1,357 |
|
|
|
5,277 |
|
|
|
6,374 |
|
Total operating expenses |
|
|
25,903 |
|
|
|
25,425 |
|
|
|
105,025 |
|
|
|
97,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
12,241 |
|
|
|
12,873 |
|
|
|
46,543 |
|
|
|
50,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
134 |
|
|
|
4 |
|
|
|
168 |
|
|
|
14 |
|
Interest expense |
|
|
(286 |
) |
|
|
(399 |
) |
|
|
(1,209 |
) |
|
|
(1,667 |
) |
Reclassification of cumulative translation into earnings |
|
|
(2,569 |
) |
|
|
-- |
|
|
|
(2,569 |
) |
|
|
-- |
|
Other, net |
|
|
(49 |
) |
|
|
13 |
|
|
|
(118 |
) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(2,770 |
) |
|
|
(382 |
) |
|
|
(3,728 |
) |
|
|
(1,649 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
9,471 |
|
|
|
12,491 |
|
|
|
42,815 |
|
|
|
48,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
2,830 |
|
|
|
2,858 |
|
|
|
11,015 |
|
|
|
11,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,641 |
|
|
$ |
9,633 |
|
|
$ |
31,800 |
|
|
$ |
37,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share of Common
Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share |
|
$ |
0.27 |
|
|
$ |
0.38 |
|
|
$ |
1.28 |
|
|
$ |
1.47 |
|
Diluted Earnings Per Share |
|
$ |
0.27 |
|
|
$ |
0.38 |
|
|
$ |
1.27 |
|
|
$ |
1.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and
share equivalents outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
24,648 |
|
|
|
25,419 |
|
|
|
24,922 |
|
|
|
25,422 |
|
Diluted |
|
|
24,775 |
|
|
|
25,597 |
|
|
|
25,052 |
|
|
|
25,640 |
|
NATIONAL RESEARCH CORPORATION AND
SUBSIDIARYUnaudited Condensed Consolidated Balance
Sheets(Dollars in thousands, except share amounts
and par value)
|
|
December 31,2022 |
|
|
December 31,2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
25,026 |
|
|
$ |
54,361 |
|
Accounts receivable, net |
|
|
14,461 |
|
|
|
13,728 |
|
Other current assets |
|
|
4,229 |
|
|
|
5,618 |
|
Total current assets |
|
|
43,716 |
|
|
|
73,707 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
17,248 |
|
|
|
12,391 |
|
Goodwill |
|
|
61,614 |
|
|
|
61,614 |
|
Other, net |
|
|
7,883 |
|
|
|
9,828 |
|
Total assets |
|
$ |
130,461 |
|
|
$ |
157,540 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of notes payable, net unamortized debt issuance
costs |
|
$ |
4,491 |
|
|
$ |
4,278 |
|
Accounts payable and accrued expenses |
|
|
5,136 |
|
|
|
7,393 |
|
Accrued compensation |
|
|
4,551 |
|
|
|
7,139 |
|
Deferred revenue |
|
|
15,198 |
|
|
|
17,213 |
|
Dividends payable |
|
|
2,956 |
|
|
|
3,044 |
|
Other current liabilities |
|
|
1,085 |
|
|
|
1,321 |
|
Total current liabilities |
|
|
33,417 |
|
|
|
40,388 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current portion and unamortized debt issuance
costs |
|
|
17,690 |
|
|
|
22,269 |
|
Other non-current liabilities |
|
|
7,321 |
|
|
|
9,546 |
|
Total liabilities |
|
|
58,428 |
|
|
|
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 30,922,181 in 2022 and 30,898,600 in 2021, outstanding
24,628,173 in 2022 and 25,361,409 in 2021 |
|
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
175,453 |
|
|
|
173,942 |
|
Retained earnings (accumulated deficit) |
|
|
(25,184 |
) |
|
|
(36,112 |
) |
Accumulated other comprehensive loss, foreign currency translation
adjustment |
|
|
-- |
|
|
|
(2,375 |
) |
Treasury stock |
|
|
(78,267 |
) |
|
|
(50,149 |
) |
Total shareholders’ equity |
|
|
72,033 |
|
|
|
85,337 |
|
Total liabilities and
shareholders’ equity |
|
$ |
130,461 |
|
|
$ |
157,540 |
|
Contact: Kevin R.
Karas Chief
Financial Officer402-475-2525
National Research (NASDAQ:NRC)
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