National Research Corporation Announces Second Quarter Results
Financial Results
Revenue for the quarter was approximately
Credit Agreement Amendment
Effective
Stock Repurchase Plan
The Company has approximately 1.1 million shares remaining under its existing stock repurchase plan. The Company did not repurchase any shares in the second quarter of 2024 pending the credit agreement amendments discussed above. Management is authorized to complete the plan in its discretion, credit agreement limitations, and future capital allocation decisions.
Dividend
The Company’s Board of Directors has declared a quarterly cash dividend of
Portfolio and Strategy Update
On
The Company’s has and will, over the next 30 days, release acquired and internally developed products and features including:
- Consumer experience (CX) capabilities designed to build loyalty and growth for health systems.
- Employee experience (EX) capabilities powered by one of the leading consumer experience technology platforms.
- NOBL Health’s rounding tool, which provides real time feedback from patients and healthcare employees.
- A proprietary AI engine powering new products and features.
In Lieu of Conference Call
The Company has elected to include strategic updates normally discussed in earning calls to a broader group of current and potential stockholders via its quarterly earnings releases.
About
For more than 40 years,
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 releasing new products and features, future quarterly conference calls and other communications, and stock repurchases 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
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Statements of Income (In thousands, except per share data) |
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|
Three months ended
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Six months ended
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|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
35,021 |
|
|
$ |
36,161 |
|
|
$ |
70,334 |
|
|
$ |
72,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
|
13,422 |
|
|
|
13,309 |
|
|
|
27,278 |
|
|
|
27,589 |
|
Selling, general and administrative |
|
|
11,221 |
|
|
|
11,966 |
|
|
|
22,471 |
|
|
|
23,750 |
|
Depreciation and amortization |
|
|
1,513 |
|
|
|
1,521 |
|
|
|
2,960 |
|
|
|
2,915 |
|
Total operating expenses |
|
|
26,156 |
|
|
|
26,796 |
|
|
|
52,709 |
|
|
|
54,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
8,865 |
|
|
|
9,365 |
|
|
|
17,625 |
|
|
|
18,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
25 |
|
|
|
273 |
|
|
|
69 |
|
|
|
523 |
|
Interest expense |
|
|
(555 |
) |
|
|
(192 |
) |
|
|
(1,160 |
) |
|
|
(433 |
) |
Other, net |
|
|
(11 |
) |
|
|
(2 |
) |
|
|
(16 |
) |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(541 |
) |
|
|
79 |
|
|
(1,107 |
) |
|
|
75 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
8,324 |
|
|
|
9,444 |
|
|
|
16,518 |
|
|
|
18,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
2,149 |
|
|
|
2,171 |
|
|
|
3,984 |
|
|
|
4,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,175 |
|
|
$ |
7,273 |
|
|
$ |
12,534 |
|
|
$ |
14,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share of Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share |
|
$ |
0.26 |
|
|
$ |
0.30 |
|
|
$ |
0.53 |
|
|
$ |
0.58 |
|
Diluted Earnings Per Share |
|
$ |
0.26 |
|
|
$ |
0.29 |
|
|
$ |
0.52 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and share equivalents outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
23,871 |
|
|
|
24,578 |
|
|
|
23,870 |
|
|
|
24,582 |
|
Diluted |
23,915 |
24,716 |
23,934 |
24,727 |
|
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts and par value) |
||||||||
|
|
2024 |
|
|
2023 |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
485 |
|
|
$ |
6,653 |
|
Accounts receivable, net |
|
|
10,057 |
|
|
|
12,378 |
|
Other current assets |
|
|
6,408 |
|
|
|
5,329 |
|
Total current assets |
|
|
16,950 |
|
|
|
24,360 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
33,741 |
|
|
|
28,205 |
|
|
|
|
61,614 |
|
|
|
61,614 |
|
Other, net |
|
|
6,794 |
|
|
|
8,258 |
|
Total assets |
|
$ |
119,099 |
|
|
$ |
122,437 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Current portion of notes payable, net of unamortized debt issuance costs |
|
$ |
7,566 |
|
|
$ |
7,214 |
|
Line of credit |
|
|
9,000 |
|
|
|
-- |
|
Accounts payable and accrued expenses |
|
|
6,675 |
|
|
|
6,194 |
|
Accrued compensation |
|
|
4,370 |
|
|
|
3,953 |
|
Deferred revenue |
|
|
14,514 |
|
|
|
14,834 |
|
Dividends payable |
|
|
2,865 |
|
|
|
2,906 |
|
Other current liabilities |
|
|
738 |
|
|
|
1,102 |
|
Total current liabilities |
|
|
45,728 |
|
|
|
36,203 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current portion and unamortized debt issuance costs |
|
|
25,655 |
|
|
|
29,470 |
|
Other non-current liabilities |
|
|
7,518 |
|
|
|
7,809 |
|
Total liabilities |
|
|
78,901 |
|
|
|
73,482 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
-- |
|
|
|
-- |
|
Common stock, |
|
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
179,872 |
|
|
|
178,213 |
|
Retained earnings (accumulated deficit) |
|
|
(23,726 |
) |
|
|
(30,530 |
) |
|
|
|
(115,979 |
) |
|
|
(98,759 |
) |
Total shareholders’ equity |
|
|
40,198 |
|
|
|
48,955 |
|
Total liabilities and shareholders’ equity |
|
$ |
119,099 |
|
|
$ |
122,437 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806354663/en/
Principal Financial Officer
402-475-2525
Source: