LINCOLN, Neb., Feb. 11, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) today announced 2019 fourth quarter and year-end financial results.

Fourth quarter 2019 compared to the fourth quarter 2018:

  • Total Contract Value increased to $144.8 million, up 10%
  • Revenue increased 6% to $32.6 million
  • Operating Income increased 27% to $12.0 million

2019 calendar year results compared to 2018:

  • Net New Sales of $27.7 million, up 18%
  • Revenue increased 7% to $128.0 million
  • Operating Income increased 22% to $43.0 million
  • Voice of the Customer platform contract value surpassed $100 million, a 31% increase

Commenting on recent performance, Michael D. Hays, chief executive officer of National Research Corporation, said, “Our performance throughout the year reflects strong gains across the continuum of care where we witnessed growth in new customer acquisition and increased spend from existing customers which further validated increasing momentum for NRC’s industry-leading Voice of the Customer platform.

Revenue for the quarter ended December 31, 2019, was $32.6 million, compared to $30.6 million for the same quarter in 2018. Net income for the quarter ended December 31, 2019, was $8.7 million, compared to $7.8 million for the quarter ended December 31, 2018. Diluted earnings per share increased to $0.34 for the common stock (formerly Class A) for the quarter ended December 31, 2019, from diluted earnings per share of $0.30 for the quarter ended December 31, 2018.

Regarding the Company’s financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “The significant growth in contract value, combined with the continued shift towards our higher margin VoC platform solutions, translated into strong financial performance with record revenue and operating income in the fourth quarter 2019. On a year-to-date basis, we increased net new sales by 18% over 2018 driven by the compelling value proposition of our VoC platform solutions.”

A listen-only simulcast of National Research Corporation’s 2019 fourth quarter conference call will be available online at http://edge.media-server.com/mmc/p/c88rjqy6 on February 12, 2020, 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
 December 31,
 Twelve months ended
December 31,
 
 2019   2018   2019   2018 
                
Revenue$  32,623  $30,639  $  127,982  $  119,686 
                
Operating expenses:               
Direct expenses 11,166   11,892     46,435     47,577 
Selling, general and administrative 8,241   7,885   32,973   31,371 
Depreciation and amortization   1,254     1,467     5,539     5,463 
Total operating expenses   20,661   21,244     84,947     84,411 
                
Operating income 11,962   9,395   43,035   35,275 
                
Other income (expense):               
Interest income 13   6   37   62 
Interest expense (478)  (522)  (2,091)  (1,513)
Other, net   (132)    661     (462)    885 
                
Total other income (expense)   (597)    145     (2,516)    (566)
                
Income before income taxes 11,365   9,540   40,519   34,709 
                
Provision for income taxes   2,667     1,739     8,113     4,662 
                
Net income$  8,698  $  7,801  $  32,406  $  30,047 
                
Earnings per share of common stock:               
Basic earnings per share:               
Common (formerly Class A)$    0.35  $    0.32  $  1.30  $  1.08 
Class B$  --  $  --  $  --  $  1.31 
Diluted earnings per share:               
Common (formerly Class A)$  0.34  $  0.30  $  1.26  $  1.04 
Class B$  --  $  --  $  --  $  1.27 
                
Weighted average shares and share equivalents outstanding               
Common (formerly Class A) - basic   24,852     24,684     24,809     23,562 
Class B - basic   --     --     --     3,527 
Common (formerly Class A) - diluted   25,715     25,534     25,652     24,448 
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)

  December 31,
2019
  December 31,
2018
 
        
Assets        
Current assets:        
Cash and cash equivalents $13,517  $12,991 
Accounts receivable, net  11,639   11,922 
Income taxes receivable  69   348 
Other current assets  3,932   3,149 
Total current assets  29,157   28,410 
         
Net property and equipment  13,530   14,153 
Goodwill  57,935   57,831 
Other, net  10,063   7,638 
Total assets $110,685  $108,032 
         
Liabilities and Shareholders’ Equity        
Current liabilities:        
Notes payable and line of credit $4,378  $3,667 
Accounts payable and accrued expenses  4,913   3,447 
Accrued compensation  6,086   5,798 
Income taxes payable  366   636 
Dividends payable  5,239   17,113 
Deferred revenue  16,648   16,244 
Other current liabilities  525   204 
Total current liabilities  38,155   47,109 
         
Notes payable, net of current portion  29,795   34,176 
Other non-current liabilities  9,843   7,664 
Total liabilities  77,793   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 30,151,574 in 2019 and 29,917,667 in 2018, outstanding 24,947,500 in 2019 and 24,800,796 in 2018  30   30 
Additional paid-in capital  162,154   157,312 
Retained earnings (accumulated deficit)  (93,357  (106,339
Accumulated other comprehensive loss, foreign currency translation adjustment  (2,209)  (2,916)
Treasury stock  (33,726)  (29,004)
Total shareholders’ equity  32,892   19,083 
Total liabilities and shareholders’ equity $110,685  $108,032 

 

Contact: Kevin R. Karas
Chief Financial Officer
402-475-2525