National Research Corporation Announces Fourth Quarter and Calendar Year 2023 Results
CEO Commentary
Financial Summary
For the quarter ended
-
Diluted earnings per share increased to
$0.36 from$0.27 . The 2022 period included a$0.10 per share cumulative foreign currency translation expense associated with exiting the Canadian market. -
Revenue was
$38 million in each period, as increased new core sales were offset by reductions in non-core revenue.
From a capital standpoint, the Company remains well-positioned to execute the entire range of capital allocation alternatives, including funding innovation and growth investments, dividends, and share repurchases. During 2023, the Company returned
For the remainder of 2024, capital allocation is expected to focus primarily on growth and innovation initiatives (including facilities renovation) and the regular quarterly dividend. At
CFO Retirement
Dividend
The Company’s Board of Directors has declared a quarterly cash dividend of
Conference Call
A live simulcast of National Research Corporation’s 2023 fourth quarter conference call will be available online at https://events.q4inc.com/attendee/823574505
About NRC
For more than 40 years,
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 statement related to the roll out of new products, future use of AI, our ability to improve efficiency, the potential to expand Human Understanding and increase market share, and future revenue growth, margins, stockholder returns, and capital allocation 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
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
|
||||||||||||||||
|
|
Three months ended
|
|
Twelve months ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
38,001 |
|
|
$ |
38,144 |
|
|
$ |
148,580 |
|
|
$ |
151,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Direct |
|
|
13,793 |
|
|
|
13,987 |
|
|
|
56,015 |
|
|
|
57,049 |
|
Selling, general and administrative |
|
|
11,070 |
|
|
|
10,541 |
|
|
|
46,621 |
|
|
|
42,699 |
|
Depreciation and amortization |
|
|
1,429 |
|
|
|
1,375 |
|
|
|
5,899 |
|
|
|
5,277 |
|
Total operating expenses |
|
|
26,292 |
|
|
|
25,903 |
|
|
|
108,535 |
|
|
|
105,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
11,709 |
|
|
|
12,241 |
|
|
|
40,045 |
|
|
|
46,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
41 |
|
|
|
134 |
|
|
|
820 |
|
|
|
168 |
|
Interest expense |
|
|
(269 |
) |
|
|
(286 |
) |
|
|
(862 |
) |
|
|
(1,209 |
) |
Reclassification of cumulative translation into earnings |
|
|
-- |
|
|
|
(2,569 |
) |
|
|
-- |
|
|
|
(2,569 |
) |
Other, net |
|
|
(13 |
) |
|
|
(49 |
) |
|
|
(41 |
) |
|
|
(118 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total other income (expense) |
|
|
(241 |
) |
|
|
(2,770 |
) |
|
|
(83 |
) |
|
|
(3,728 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
11,468 |
|
|
|
9,471 |
|
|
|
39,962 |
|
|
|
42,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for income taxes |
|
|
2,610 |
|
|
|
2,830 |
|
|
|
8,991 |
|
|
|
11,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
8,858 |
|
|
$ |
6,641 |
|
|
$ |
30,971 |
|
|
$ |
31,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings Per Share of Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic Earnings Per Share |
|
$ |
0.36 |
|
|
$ |
0.27 |
|
|
$ |
1.26 |
|
|
$ |
1.28 |
|
Diluted Earnings Per Share |
|
$ |
0.36 |
|
|
$ |
0.27 |
|
|
$ |
1.25 |
|
|
$ |
1.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares and share equivalents outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
24,437 |
|
|
|
24,648 |
|
|
|
24,540 |
|
|
|
24,922 |
|
Diluted |
|
|
24,548 |
|
|
|
24,775 |
|
|
|
24,673 |
|
|
|
25,052 |
|
NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
|
||||||||
|
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
6,653 |
|
|
$ |
25,026 |
|
Accounts receivable, net |
|
|
12,378 |
|
|
|
14,461 |
|
Other current assets |
|
|
5,329 |
|
|
|
4,229 |
|
Total current assets |
|
|
24,360 |
|
|
|
43,716 |
|
|
|
|
|
|
|
|
||
Property and equipment, net |
|
|
28,205 |
|
|
|
17,248 |
|
|
|
|
61,614 |
|
|
|
61,614 |
|
Other, net |
|
|
8,258 |
|
|
|
7,883 |
|
Total assets |
|
$ |
122,437 |
|
|
$ |
130,461 |
|
|
|
|
|
|
|
|
||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of notes payable |
|
$ |
7,214 |
|
|
$ |
4,491 |
|
Accounts payable and accrued expenses |
|
|
6,194 |
|
|
|
5,136 |
|
Accrued compensation |
|
|
3,953 |
|
|
|
4,551 |
|
Deferred revenue |
|
|
14,834 |
|
|
|
15,198 |
|
Dividends payable |
|
|
2,906 |
|
|
|
2,956 |
|
Other current liabilities |
|
|
1,102 |
|
|
|
1,085 |
|
Total current liabilities |
|
|
36,203 |
|
|
|
33,417 |
|
|
|
|
|
|
|
|
||
Notes payable, net of current portion and unamortized debt issuance costs |
|
|
29,470 |
|
|
|
17,690 |
|
Other non-current liabilities |
|
|
7,809 |
|
|
|
7,321 |
|
Total liabilities |
|
|
73,482 |
|
|
|
58,428 |
|
|
|
|
|
|
|
|
||
Shareholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
-- |
|
|
|
-- |
|
Common stock, |
|
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
178,213 |
|
|
|
175,453 |
|
Retained earnings (accumulated deficit) |
|
|
(30,530 |
) |
|
|
(25,184 |
) |
|
|
|
|
|
|
|
||
|
|
|
(98,759 |
) |
|
|
(78,267 |
) |
Total shareholders’ equity |
|
|
48,955 |
|
|
|
72,033 |
|
Total liabilities and shareholders’ equity |
|
$ |
122,437 |
|
|
$ |
130,461 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213249406/en/
Chief Financial Officer
402-475-2525
Source: