National Research Corporation Announces First Quarter 2022 Results

Lincoln, Nebraska, UNITED STATES

LINCOLN, Neb., May 03, 2022 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the first quarter 2022.

    Q1 2022 financial results compared to Q1 2021:

  • Revenue increased 8% to $38.4 million
  • Operating income decreased 3% to $11.7 million

In commenting on recent events, Michael Hays, Chief Executive Officer, said “At year-end 2021, we announced the upcoming launch of NRC’s Health’s Human Understanding Program which enables health systems to deliver personalized care at scale. This past quarter, large numbers of current and prospective clients previewed and scrutinized the program. Never have I witnessed such absolute alignment with any product offering, confirming to me we are definitely on the right path. However, achieving personalized care at scale will not be instantaneous for any client organization; rather, accomplished by measured deployment of the Program over time and perhaps, similar to adoption trends we experienced with our digital Voice of the Customer offerings.

Regarding the Company’s first quarter financial performance, Kevin Karas, Chief Financial Officer, said, “Our growth strategy continues to focus on organic growth levers of increasing revenue from our core offerings, including our new Human Understanding Program, within our existing client base, as well as adding new clients to increase market share. As a result, revenue growth for the quarter was 8% over the prior year and we continued to see higher growth rates in our core offerings. Our operating expenses for the quarter increased at a higher rate as we allocated more resources towards innovation initiatives and associate empowerment benefits. We also utilized our strong cash flow to fund our quarterly dividend and additional share repurchases in the first quarter.”

Revenue for the first quarter ended March 31, 2022, was $38.4 million, compared to $35.5 million for the same quarter in 2021. Net income for the quarter ended March 31, 2022, was $8.5 million, compared to $9.2 million for the quarter ended March 31, 2021.

Diluted earnings per share decreased to $0.34 for the quarter ended March 31, 2022, from diluted earnings per share of $0.36 for the quarter ended March 31, 2021.

Cash Flow from Operations was $8.3 million down from $14.4 million, leaving us with a Net Cash position (Cash minus Notes Payable) of $21.8 million, up from $13.8 million at March 31, 2021.

A live simulcast of National Research Corporation’s 2022 first quarter conference call will be available online at on May 4, 2022, 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, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement to increase patient engagement and customer loyalty for healthcare providers, payers and other healthcare organizations in the United States and Canada. Our purpose is to enable human understanding by helping our clients to understand what matters most to each person that they serve.
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.

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

  Three months ended
     March 31,     
  2022   2021 
Revenue$38,441  $35,464 
Operating expenses:  
Direct 14,779   11,940 
Selling, general and administrative 10,649   9,520 
Depreciation, amortization and impairment 1,316   1,984 
Total operating expenses 26,744   23,444 
Operating income 11,697   12,020 
Other income (expense):  
Interest income 5   3 
Interest expense (317)  (432)
Other, net 48   21 
Total other income (expense) (264)  (408)
Income before income taxes 11,433   11,612 
Income tax provision (benefit) 2,894   2,380 
Net income$8,539  $9,232 
Earnings Per Share of Common Stock:  
Basic Earnings Per Share$0.34  $0.36 
Diluted Earnings Per Share$0.34  $0.36 
Weighted average shares and share equivalents outstanding
Basic 25,251   25,414 
Diluted 25,390   25,668 

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

 March 31, December 31,
  2022   2021 
Current assets:   
Cash and cash equivalents$47,290  $54,361 
Accounts receivable, net 15,910   13,728 
Other current assets 5,721   5,618 
Total current assets 68,921   73,707 
Property and equipment, net 12,853   12,391 
Goodwill 61,614   61,614 
Other, net 9,766   9,828 
Total assets$153,154  $157,540 
Liabilities and Shareholders’ Equity   
Current liabilities:   
Current portion of notes payable, net unamortized debt issuance costs$4,333  $4,278 
Accounts payable and accrued expenses 4,675   7,393 
Accrued compensation 5,935   7,139 
Deferred revenue 16,693   17,213 
Dividends payable 6,047   3,044 
Other current liabilities 3,886   1,321 
Total current liabilities 41,569   40,388 
Notes payable, net of current portion and unamortized debt issuance costs 21,161   22,269 
Other non-current liabilities 8,938   9,546 
Total liabilities 71,668   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
    30,898,600 in 2022 and 2021, outstanding 25,194,447 in 2022 and 25,361,409 in 2021
 31   31 
Additional paid-in capital 174,227   173,942 
Retained earnings (accumulated deficit) (33,620)  (36,112)
Accumulated other comprehensive loss, foreign currency translation adjustment (2,324)  (2,375)
Treasury stock (56,828)  (50,149)
Total shareholders’ equity 81,486   85,337 
Total liabilities and shareholders’ equity$153,154  $157,540 


Contact:Kevin R. Karas        
Chief Financial Officer