NRC - National Research Corporation Announces Third Quarter 2019 Results
LINCOLN, Neb., Nov. 05, 2019 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) today announced results for the third quarter of 2019.
In comparison to the third quarter of 2018:
- Record sales—Net New Sales of $10.0 million
- Total Contract Value increased to $140.5 million up 11%
- Revenue increased 8% to $32.5 million
- Operating Income increased 11% to $10.2 million
- Voice of the Customer (VoC) platform revenue increased by 35%
Commenting on recent performance, Michael D. Hays, chief executive officer of National Research Corporation said, “Several of the largest and most prestigious health systems in the country switched to NRC’s Voice of the Customer platform in the third quarter, setting a new sales record. The pipeline for the balance of 2019 and 2020 is equally impressive.”
Revenue for the quarter ended September 30, 2019, was $32.5 million, compared to $30.0 million for the same quarter in 2018. Net income for the quarter ended September 30, 2019, was $8.1 million, compared to $7.0 million for the quarter ended September 30, 2018. Diluted earnings per share increased to $0.31 for the common stock (formerly Class A) for the quarter ended September 30, 2019, from diluted earnings per share of $0.27 for the quarter ended September 30, 2018.
Regarding the Company’s third quarter financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “Our sales performance continued to gain momentum with our net new sales year-to-date increasing by 28% compared to the first three quarters of 2018. The continued focus on adding new customers to the VoC platform solution and driving value for existing customers resulted in an increase in total contract value in the third quarter 2019 of 11% over the prior year. VoC platform contract value has grown by 33% over the third quarter of 2018 and now represents 66% of total contract value.”
A listen-only simulcast of National Research Corporation’s 2019 third quarter conference call will be available online at http://edge.media-server.com/mmc/p/to3vagfu on November 6, 2019, 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 SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
| Three months ended September 30, |
| Nine months ended September 30, |
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| Revenue |
| $ |
| 32,465 |
| $ |
| 30,013 |
| $ |
| 95,359 |
| $ |
| 89,047 |
| Operating expenses: |
| Direct expenses |
| 12,109 |
| 11,780 |
| 35,269 |
| 35,685 |
| Selling, general and administrative |
| 8,706 |
| 7,679 |
| 24,732 |
| 23,486 |
| Depreciation and amortization |
| 1,430 |
| 1,388 |
| 4,285 |
| 3,996 |
| Total operating expenses |
| 22,245 |
| 20,847 |
| 64,286 |
| 63,167 |
| Operating income |
| 10,220 |
| 9,166 |
| 31,073 |
| 25,880 |
| Other income (expense): |
| Interest income |
| 10 |
| 3 |
| 24 |
| 57 |
| Interest expense |
| (510 |
| ) |
| (544 |
| ) |
| (1,613 |
| ) |
| (990 |
| ) |
| Other, net |
| 89 |
| (242 |
| ) |
| (330 |
| ) |
| 222 |
| Total other income (expense) |
| (411 |
| ) |
| (783 |
| ) |
| (1,919 |
| ) |
| (711 |
| ) |
| Income before income taxes |
| 9,809 |
| 8,383 |
| 29,154 |
| 25,169 |
| Provision (benefit) for income taxes |
| 1,690 |
| 1,391 |
| 5,446 |
| 2,923 |
| Net income |
| $ |
| 8,119 |
| $ |
| 6,992 |
| $ |
| 23,708 |
| $ |
| 22,246 |
| Earnings per share of common stock: |
| Basic earnings per share: |
| Common (formerly Class A) |
| $ |
| 0.33 |
| $ |
| 0.28 |
| $ |
| 0.95 |
| $ |
| 0.76 |
| Class B |
| $ |
| -- |
| $ |
| -- |
| $ |
| -- |
| $ |
| 1.31 |
| Diluted earnings per share: |
| Common (formerly Class A) |
| $ |
| 0.31 |
| $ |
| 0.27 |
| $ |
| 0.92 |
| $ |
| 0.73 |
| Class B |
| $ |
| -- |
| $ |
| -- |
| $ |
| -- |
| $ |
| 1.27 |
| Weighted average shares and share equivalents outstanding Common (formerly Class A) - basic |
| 24,827 |
| 24,671 |
| 24,794 |
| 23,184 |
| Class B - basic |
| -- |
| -- |
| -- |
| 3,527 |
| Common (formerly Class A) - diluted |
| 25,741 |
| 25,526 |
| 25,624 |
| 24,083 |
| Class B - diluted |
| -- |
| -- |
| -- |
| 3,628 |
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except per share amounts and par value)
| September 30, 2019 |
| December 31, 2018 |
| Assets |
| Current assets: |
| Cash and cash equivalents |
| $ |
| 8,358 |
| $ |
| 12,991 |
| Accounts receivable, net |
| 15,308 |
| 11,922 |
| Income taxes receivable |
| 556 |
| 348 |
| Other current assets |
| 2,348 |
| 3,149 |
| Total current assets |
| 26,570 |
| 28,410 |
| Net property and equipment |
| 13,696 |
| 14,153 |
| Goodwill |
| 57,896 |
| 57,831 |
| Other, net |
| 9,487 |
| 7,638 |
| Total assets |
| $ |
| 107,649 |
| $ |
| 108,032 |
| Liabilities and Shareholders’ Equity |
| Current liabilities: |
| Notes payable and line of credit |
| $ |
| 4,133 |
| $ |
| 3,667 |
| Accounts payable and accrued expenses |
| 4,281 |
| 3,447 |
| Accrued compensation |
| 5,192 |
| 5,798 |
| Income taxes payable |
| 14 |
| 636 |
| Dividends payable |
| 4,735 |
| 17,113 |
| Deferred revenue |
| 19,133 |
| 16,244 |
| Other current liabilities |
| 824 |
| 204 |
| Total current liabilities |
| 38,312 |
| 47,109 |
| Notes payable, net of current portion |
| 30,977 |
| 34,176 |
| Other non-current liabilities |
| 9,385 |
| 7,664 |
| Total liabilities |
| 78,674 |
| 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 30,100,762 in 2019 and 29,917,667 in 2018, outstanding 24,920,050 in 2019 and 24,800,796 in 2018 |
| 30 |
| 30 |
| Additional paid-in capital |
| 160,524 |
| 157,312 |
| Retained earnings (accumulated deficit) |
| (96,817 |
| ) |
| (106,339 |
| ) |
| Accumulated other comprehensive loss, foreign currency translation adjustment |
| (2,442 |
| ) |
| (2,916 |
| ) |
| Treasury stock |
| (32,320 |
| ) |
| (29,004 |
| ) |
| Total shareholders’ equity |
| 28,975 |
| 19,083 |
| Total liabilities and shareholders’ equity |
| $ |
| 107,649 |
| $ |
| 108,032 |
Contact:
Kevin R. Karas
Chief Financial Officer
402-475-2525