National Research Corporation Announces Third Quarter Results

About this update from Nrc Health

LINCOLN, Neb. --(BUSINESS WIRE)-- National Research Corporation , dba NRC Health , (NASDAQ:NRC) today announced results for the third quarter 2024 and other corporate developments. Financial Results Revenue for the quarter was approximately $35.8 million compared with approximately $37.9 million in the 2023 quarter. Earnings per diluted share were $0.24 compared with $0.32 for the 2023 quarter. At September 30, 2024 , the Company’s net indebtedness (total borrowing minus cash and cash equivalents) was approximately $50.2 million . Total recurring contract value (TRCV) was approximately $131.6 million at September 30, 2024 . Dividends and Stock Repurchases During the quarter, the Company returned approximately $11.5 million to stockholders in the form of dividends and stock repurchases. The Company repurchased approximately 395,000 shares for approximately $8.6 million and paid its regular quarterly dividend of $0.12 ( twelve cents ) per share, or approximately $2.9 million . The Company’s Board of Directors has declared a quarterly cash dividend of $0.12 ( twelve cents ) per share payable Friday, January 10, 2025 , to stockholders of record as of the close of business on Friday, December 27, 2024 . About NRC Health For more than 40 years, NRC Health (NASDAQ: NRC) has led the charge to humanize healthcare and support organizations in their understanding of each unique individual. NRC Health’s commitment to Human Understanding® helps leading healthcare systems get to know each person they serve not as point-in-time insights, but as an ongoing relationship. Guided by its uniquely empathic heritage, NRC Health’s patient-focused approach, unmatched market research, and emphasis on consumer preferences are transforming the healthcare experience, creating strong outcomes for patients and entire healthcare systems. For more information, email [email protected] , or visit www.nrchealth.com . 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 future dividends 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 December 31, 2023 , 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. 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 2024 2023 2024 2023 Revenue $ 35,819 $ 37,945 $ 106,154 $ 110,579 Operating expenses: Direct 15,305 14,633 42,583 42,222 Selling, general and administrative 10,988 11,802 33,459 35,552 Depreciation and amortization 1,546 1,555 4,506 4,469 Total operating expenses 27,839 27,990 80,548 82,243 Operating income 7,980 9,955 25,606 28,336 Other income (expense): Interest income 34 256 103 779 Interest expense (706 ) (160 ) (1,866 ) (594 ) Other, net (12 ) (12 ) (28 ) (27 ) Total other income (expense) (684 ) 84 (1,791 ) 158 Income before income taxes 7,296 10,039 23,815 28,494 Provision for income taxes 1,608 2,163 5,592 6,381 Net income $ 5,688 $ 7,876 $ 18,223 $ 22,113 Earnings Per Share of Common Stock: Basic Earnings Per Share $ 0.24 $ 0.32 $ 0.76 $ 0.90 Diluted Earnings Per Share $ 0.24 $ 0.32 $ 0.76 $ 0.89 Weighted average shares and share equivalents outstanding: Basic 23,721 24,560 23,820 24,574 Diluted 23,745 24,695 23,868 24,715 NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts and par value) September 30 , 2024 December 31 , 2023 Assets Current assets: Cash and cash equivalents $ 3,461 $ 6,653 Accounts receivable, net 11,059 12,378 Other current assets 6,180 5,329 Total current assets 20,700 24,360 Property and equipment, net 36,320 28,205 Goodwill 66,209 61,614 Other, net 8,569 8,258 Total assets $ 131,798 $ 122,437 Liabilities and Shareholders’ Equity Current liabilities: Current portion of notes payable, net of unamortized debt issuance costs $ 3,721 $ 7,214 Line of credit 5,000 -- Accounts payable and accrued expenses 9,373 6,194 Accrued compensation 5,392 3,953 Deferred revenue 17,301 14,834 Dividends payable 2,817 2,906 Other current liabilities 673 1,102 Total current liabilities 44,277 36,203 Notes payable, net of current portion and unamortized debt issuance costs 44,910 29,470 Other non-current liabilities 7,988 7,809 Total liabilities 97,175 73,482 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 31,072,144 in 2024 and 31,002,919 in 2023, outstanding 23,476,040 in 2024 and 24,219,887 in 2023 31 31 Additional paid-in capital 180,061 178,213 Retained earnings (accumulated deficit) (20,855 ) (30,530 ) Treasury stock (124,614 ) (98,759 ) Total shareholders’ equity $ 34,623 $ 48,955 Total liabilities and shareholders’ equity $ 131,798 $ 122,437 View source version on businesswire.com : https://www.businesswire.com/news/home/20241025365406/en/ Linda A. Stacy Principal Financial Officer 402-475-2525 Source: National Research Corporation

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