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National Research Corp

NRC Health Announces First Quarter Results

LINCOLN, Neb.--(BUSINESS WIRE)--Apr. 28, 2025-- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the first quarter 2025 and other corporate developments.

Highlights:

  • Total Recurring Value Contract Value Increases Sequentially
  • Sales Force Expansion Accelerates
  • New Share Repurchase Program Announced
  • Operating Expenses Decline
  • Dividend Declared

Overview

Michael D. Hays, Chief Executive Officer of NRC Health, commented on the Company’s performance and recent developments:

“The key milestone this quarter was a second consecutive quarter of sequential increase in total recurring contract value, which remains the leading indicator of revenue growth. This progress reflects the rebuilding of our sales force - never a quick process, but one that is already delivering results. We are seeing meaningful increases in our pipeline, win rates, and overall sales. Building on this momentum, we are now aggressively accelerating our sales force expansion plans to fully capitalize on our broader product offerings and a differentiated message that sets NRC Health apart in the marketplace.”

Hays continued, “I would also like to recognize Helen Hrdy, our Chief Operating Officer, for her relentless focus on driving organizational efficiencies. Her leadership continues to be instrumental in enhancing our ability to invest in future growth while delivering strong returns to shareholders through share repurchases and dividends.”

Hays concluded, “Finally, I welcome the opportunity to personally introduce you to Trent Green, who will be joining us as our incoming CEO in June. Introductory calls are available on June 9 and 10, 2025 and can be arranged by contacting MBachman@NRCHealth.com.”

Dividends and Share Repurchase

The Company’s Board of Directors on April 25, 2025, declared a quarterly cash dividend of $0.12 (twelve cents) per share payable Friday, July 11, 2025, to shareholders of record as of the close of business on Friday, June 27, 2025.

During the first quarter, the Company completed its prior share repurchase program adopted in 2022. On April 25, 2025, the Company’s Board of Directors approved repurchasing up to one million additional shares of its common stock.

About NRC Health

For more than 40 years, NRC Health’s (NASDAQ: NRC) commitment to Human Understanding® helps leading healthcare systems know each patient, caregivers, employees, and the communities they serve not as point-in-time insights, but to personalize an ongoing relationship at scale. For more information, email info@nrchealth.com, 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, share repurchases, and revenue 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, 2024, 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

March 31,

 

 

2025

 

 

 

2024

 

 

 

 

Revenue

$

33,551

 

$

35,313

 

 

Operating expenses:

 

 

Direct

 

13,057

 

 

13,856

 

Selling, general and administrative

 

10,356

 

 

11,250

 

Depreciation and amortization

 

1,542

 

 

1,447

 

Total operating expenses

 

24,955

 

 

26,553

 

 

 

 

Operating income

 

8,596

 

 

8,706

 

 

 

 

Other income (expense):

 

 

Interest income

 

19

 

 

44

 

Interest expense

 

(899

)

 

(605

)

Other, net

 

7

 

 

(5

)

 

 

 

Total other income (expense)

 

(873

)

 

(566

)

 

 

 

Income before income taxes

 

7,723

 

 

8,194

 

 

 

 

Provision for income taxes

 

1,936

 

 

1,835

 

 

Net income

$

5,787

 

$

6,359

 

 

 

 

Earnings Per Share of Common Stock:

Basic Earnings Per Share

$

0.25

 

$

0.27

 

Diluted Earnings Per Share

$

0.25

 

$

0.27

 

 

 

 

Weighted average shares and share equivalents outstanding

 

 

Basic

 

22,972

 

 

23,868

 

Diluted

 

22,974

 

 

23,963

 

 
 
 
 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands, except share amounts and par value)

 

 

 

March 31,

2025

 

December 31,

2024

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

2,502

 

 

$

4,233

 

Accounts receivable, net

 

 

11,326

 

 

 

11,054

 

Other current assets

 

 

6,574

 

 

 

4,313

 

Total current assets

 

 

20,402

 

 

 

19,600

 

 

 

 

 

 

Property and equipment, net

 

 

40,390

 

 

 

38,269

 

Goodwill

 

 

66,152

 

 

 

66,152

 

Other, net

 

 

8,231

 

 

 

8,518

 

Total assets

 

$

135,175

 

 

$

132,539

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of notes payable, net of unamortized debt issuance costs

 

$

3,036

 

 

$

4,789

 

Line of credit

 

 

3,500

 

 

 

--

 

Accounts payable and accrued expenses

 

 

6,743

 

 

 

6,285

 

Accrued compensation

 

 

4,915

 

 

 

4,774

 

Deferred revenue

 

 

15,507

 

 

 

15,786

 

Dividends payable

 

 

2,735

 

 

 

2,770

 

Other current liabilities

 

 

1,338

 

 

 

1,454

 

Total current liabilities

 

 

37,774

 

 

 

35,858

 

 

 

 

 

 

Notes payable, net of current portion and unamortized debt issuance costs

 

 

58,669

 

 

 

57,895

 

Other non-current liabilities

 

 

9,060

 

 

 

7,502

 

Total liabilities

 

 

105,503

 

 

 

101,255

 

 

 

 

 

 

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 31,082,158 in 2025 and 31,072,144 in 2024, outstanding 22,785,421 in 2025 and 23,083,116 in 2024

 

 

31

 

 

 

31

 

Additional paid-in capital

 

 

180,552

 

 

 

180,249

 

Retained earnings (accumulated deficit)

 

 

(14,012

)

 

 

(17,064

)

Treasury stock

 

 

(136,899

)

 

 

(131,932

)

Total shareholders’ equity

 

$

29,672

 

 

$

31,284

 

Total liabilities and shareholders’ equity

 

$

135,175

 

 

$

132,539

 

 
 

 

Michelle Bachman
402-475-2525

Source: NRC Health