National Research Corporation Announces Second Quarter and Year-To-Date 2020 Results
LINCOLN, Neb., Aug. 04, 2020 (GLOBE NEWSWIRE) -- National Research Corporation (NASDAQ:NRC) today announced results for the second quarter of 2020.
Revenue for the quarter ended June 30, 2020, was
Net income for the quarter ended June 30, 2020, was
Demand for our product portfolio remains strong. Net New Sales were up
Total Recurring Contract Value increased
It goes without saying that COVID-19 is far from behind us and we continue to recognize and support the work of our healthcare partners and caregivers worldwide. NRC Health retains its conservative stance regarding liquidity for the security of our associates and optionality as a business. Accordingly, our Board of Directors has determined not to pay a dividend for the current quarter.
A listen-only simulcast of National Research Corporation’s 2020 second quarter conference call will be available online at https://edge.media-server.com/mmc/p/ayrm72gm on August 5, 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 human understanding.
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,” 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, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. In this press release, the statements relating to the future status of our partnership with clients and the future impact of adding additional clients are forward-looking statements. 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.
Contact: | Kevin R. Karas |
Chief Financial Officer | |
402-475-2525 |
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Revenue | $ | 31,166 | $ | 31,414 | $ | 65,026 | $ | 62,894 | |||||||||
Operating expenses: | |||||||||||||||||
Direct expenses | 11,634 | 11,506 | 24,180 | 23,160 | |||||||||||||
Selling, general and administrative | 8,852 | 8,319 | 17,600 | 16,026 | |||||||||||||
Depreciation and amortization | 1,405 | 1,440 | 2,777 | 2,855 | |||||||||||||
Total operating expenses | 21,891 | 21,265 | 44,557 | 42,041 | |||||||||||||
Operating income | 9,275 | 10,149 | 20,469 | 20,853 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest income | 2 | 8 | 13 | 14 | |||||||||||||
Interest expense | (450 | ) | (533 | ) | (914 | ) | (1,103 | ) | |||||||||
Other, net | (270 | ) | (139 | ) | 360 | (419 | ) | ||||||||||
Total other expense | (718 | ) | (664 | ) | (541 | ) | (1,508 | ) | |||||||||
Income before income taxes | 8,557 | 9,485 | 19,928 | 19,345 | |||||||||||||
Provision for income taxes | 842 | 2,092 | 458 | 3,756 | |||||||||||||
Net income | $ | 7,715 | $ | 7,393 | $ | 19,470 | $ | 15,589 | |||||||||
Earnings Per Share of Common Stock: | |||||||||||||||||
Basic Earnings Per Share | $ | 0.31 | $ | 0.30 | $ | 0.78 | $ | 0.63 | |||||||||
Diluted Earnings Per Share | $ | 0.30 | $ | 0.29 | $ | 0.76 | $ | 0.61 | |||||||||
Weighted average shares and share equivalents outstanding Basic | 25,148 | 24,789 | 25,060 | 24,777 | |||||||||||||
Diluted | 25,680 | 25,586 | 25,702 | 25,549 |
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts and par value)
June 30, 2020 | December 31, 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 11,957 | $ | 13,517 | |||
Accounts receivable, net | 19,882 | 11,639 | |||||
Income taxes receivable | 272 | 69 | |||||
Other current assets | 4,586 | 3,932 | |||||
Total current assets | 36,697 | 29,157 | |||||
Net property and equipment | 12,355 | 13,530 | |||||
Goodwill | 57,829 | 57,935 | |||||
Other, net | 9,900 | 10,063 | |||||
Total assets | $ | 116,781 | $ | 110,685 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Notes payable | $ | 3,966 | $ | 4,378 | |||
Accounts payable and accrued expenses | 3,882 | 4,687 | |||||
Accrued compensation | 6,830 | 6,086 | |||||
Income taxes payable | 308 | 366 | |||||
Dividends payable | -- | 5,239 | |||||
Deferred revenue | 16,275 | 16,354 | |||||
Other current liabilities | 1,007 | 1,045 | |||||
Total current liabilities | 32,268 | 38,155 | |||||
Notes payable, net of current portion | 28,627 | 29,795 | |||||
Other non-current liabilities | 10,312 | 9,843 | |||||
Total liabilities | 71,207 | 77,793 | |||||
Shareholders’ equity: | |||||||
Preferred stock, | -- | -- | |||||
Common stock, | 31 | 30 | |||||
Additional paid-in capital | 167,808 | 162,154 | |||||
Retained earnings (accumulated deficit) | (79,165 | ) | (93,357 | ) | |||
Accumulated other comprehensive loss, foreign currency translation adjustment | (2,872 | ) | (2,209 | ) | |||
Treasury stock | (40,228 | ) | (33,726 | ) | |||
Total shareholders’ equity | 45,574 | 32,892 | |||||
Total liabilities and shareholders’ equity | $ | 116,781 | $ | 110,685 |