LINCOLN, Neb., Nov. 01, 2022 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the third quarter 2022.

Regarding the Company's 2022 third quarter financial performance, Kevin Karas, Chief Financial Officer, said, "We continued to grow revenue from new and existing customers in our core offerings, including our new Human Understanding Program. Overall revenue was approximately flat compared with the 2021 quarter due to the phase out of our Canadian operations and a decline in other non-core offerings. From a margin standpoint, investments in innovation initiatives, marketing and associate retention, increased operating expenses for the quarter. In addition, for the quarter, we paid $5.9 million in dividends and $3.6 million related to share repurchases."

Revenue for the third quarter ended September 30, 2022, was $37.7 million, compared to $37.8 million for the same quarter in 2021. Net income for the quarter ended September 30, 2022, was $8.3 million, compared to $9.7 million for the quarter ended September 30, 2021.

Diluted earnings per share decreased to $0.33 for the quarter ended September 30, 2022, from diluted earnings per share of $0.38 for the quarter ended September 30, 2021.

A live simulcast of National Research Corporation's 2022 third quarter conference call will be available online at https://events.q4inc.com/attendee/890036554 on November 2, 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, NRC Health (NASDAQ:NRC) has been committed to achieving Human Understanding and bringing healthcare organizations closer to their customers than ever before by illuminating and improving the key moments that define an experience and build trust. Guided by their uniquely empathic heritage, proprietary methods, skilled associates, and holistic approach, NRC Health helps its customers design experiences that exceed expectations, inspire loyalty, and improve well-being among patients, residents, physicians, nurses, and staff. 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," 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.

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
	2022			2021			2022			2021

Revenue	$	37,691		$	37,767		$	113,424		$	109,656

Operating expenses:
Direct		14,524			13,707			43,062			38,184
Selling, general and administrative		10,762			9,523			32,159			29,060
Depreciation, amortization and impairment		1,296			1,399			3,902			5,016
Total operating expenses		26,582			24,629			79,123			72,260

Operating income		11,109			13,138			34,301			37,396

Other income (expense):
Interest income		15			4			34			10
Interest expense		(288	)		(413	)		(923	)		(1,268	)
Other, net		11			(105	)		(69	)		(8	)

Total other income (expense)		(262	)		(514	)		(958	)		(1,266	)

Income before income taxes		10,847			12,624			33,343			36,130

Provision for income taxes		2,549			2,967			8,184			8,297

Net income	$	8,298		$	9,657		$	25,159		$	27,833

Earnings Per Share of Common Stock:
Basic Earnings Per Share	$	0.34		$	0.38		$	1.01		$	1.09
Diluted Earnings Per Share	$	0.33		$	0.38		$	1.00		$	1.08

Weighted average shares and share equivalents outstanding:
Basic		24,716			25,427			25,014			25,423
Diluted		24,847			25,650			25,147			25,655

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

(Dollars in thousands, except share amounts and par value)

	September 30,			December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	28,392		$	54,361
Accounts receivable, net		15,378			13,728
Other current assets		5,335			5,618
Total current assets		49,105			73,707

Property and equipment, net		15,761			12,391
Goodwill		61,614			61,614
Other, net		8,503			9,828
Total assets	$	134,983		$	157,540

Liabilities and Shareholders' Equity
Current liabilities:
Current portion of notes payable, net unamortized debt issuance costs	$	4,434		$	4,278
Accounts payable and accrued expenses		5,765			7,393
Accrued compensation		6,023			7,139
Deferred revenue		17,373			17,213
Dividends payable		5,926			3,044
Other current liabilities		1,563			1,321
Total current liabilities		41,084			40,388

Notes payable, net of current portion and unamortized debt issuance costs		18,837			22,269
Other non-current liabilities		7,296			9,546
Total liabilities		67,217			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 30,922,181 in 2022 and 30,898,600 in 2021, outstanding 24,691,246 in 2022 and 25,361,409 in 2021		31			31
Additional paid-in capital		175,162			173,942
Retained earnings (accumulated deficit)		(28,870	)		(36,112	)
Accumulated other comprehensive loss, foreign currency translation adjustment		(2,608	)		(2,375	)
Treasury stock		(75,949	)		(50,149	)
Total shareholders' equity		67,766			85,337
Total liabilities and shareholders' equity	$	134,983		$	157,540

Contact:	Kevin R. Karas
	Chief Financial Officer
	402-475-2525

National Research Corporation Announces Third Quarter 2022 Results