LINCOLN, Neb., May 05, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ: NRC) today announced results for the first quarter of 2020.

  • Revenue increased 8% to $33.9 million
  • Net Income increased 43% to $11.8 million
  • Net New Sales of $5.7 million
  • Voice of the Customer platform recurring contract value reaches $102.9 million

Revenue for the quarter ended March 31, 2020, was $33.9 million, compared to $31.5 million for the same quarter in 2019. Net income for the quarter ended March 31, 2020, was $11.8 million, compared to $8.2 million for the quarter ended March 31, 2019. Diluted earnings per share increased to $0.46 for the quarter ended March 31, 2020, from diluted earnings per share of $0.32 for the quarter ended March 31, 2019. Results for the quarter included an approximately $0.4 million income tax benefit compared with $1.7 million in income tax expense for the first quarter of 2019.

Regarding the Company’s first quarter financial performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We achieved strong financial performance in the first quarter with minimal impact from COVID-19. However, given the uncertainty surrounding COVID-19, we assume future growth trends are unlikely to follow those of the past several years.”  

A listen-only simulcast of National Research Corporation’s 2020 first quarter conference call will be available online at on May 6, 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 39 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. COVID-19 is a significant risk factor and the impact on our business is dependent on the duration and spread of the outbreak in the United States and Canada and resulting government mandates and recommendations, which are difficult to predict. The severity and duration of any such impacts on our business cannot be predicted at this time. 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. 

Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)

 Three months ended
March 31,
 2020 2019
Revenue$33,860  $31,480 
Operating expenses:     
Direct12,546  11,654 
Selling, general and administrative8,749  7,707 
Depreciation and amortization1,371  1,415 
Total operating expenses22,666  20,776 
Operating income11,194  10,704 
Other income (expense):     
Interest income11  6 
Interest expense(465) (570)
Other, net630  (280)
Total other income (expense)176  (844)
Income before income taxes11,370  9,860 
Income tax provision (benefit)(385) 1,664 
Net income$11,755  $8,196 
Earnings Per Share of Common Stock:     
Basic Earnings Per Share$0.47  $0.33 
Diluted Earnings Per Share$0.46  $0.32 
Weighted average shares and share equivalents outstanding     
Basic24,972  24,766 
Diluted25,725  25,509 

Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts and par value)

 March 31,
 December 31,
Current assets:       
Cash and cash equivalents$10,021  $13,517 
Accounts receivable, net 17,403   11,639 
Income taxes receivable 580   69 
Insurance receivable 2,771   -- 
Other current assets 4,164   3,932 
Total current assets 34,939   29,157 
Net property and equipment 12,655   13,530 
Goodwill 57,746   57,935 
Other, net 10,515   10,063 
Total assets$115,855  $110,685 
Liabilities and Shareholders’ Equity       
Current liabilities:       
Notes payable$4,631  $4,378 
Accounts payable and accrued expenses 4,947   4,687 
Accrued compensation 4,913   6,086 
Income taxes payable --   366 
Dividends payable 5,278   5,239 
Deferred revenue 19,111   16,354 
Other current liabilities 999   1,045 
Total current liabilities 39,879   38,155 
Notes payable, net of current portion 28,593   29,795 
Other non-current liabilities 10,086   9,843 
Total liabilities 78,558   77,793 
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 30,412,055 in 2020 and 30,151,574 in 2019, outstanding 25,132,001 in 2020 and 24,947,500 in 2019 30   30 
Additional paid-in capital 165,631   162,154 
Retained earnings (accumulated deficit) (86,880)  (93,357)
Accumulated other comprehensive loss, foreign currency translation adjustment (3,333)  (2,209)
Treasury stock (38,151)  (33,726)
Total shareholders’ equity 37,297   32,892 
Total liabilities and shareholders’ equity$115,855  $110,685 

Contact:Kevin R. Karas
 Chief Financial Officer