false 0000070487 0000070487 2024-10-25 2024-10-25
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):
October 25, 2024
 
 
National Research Corporation
(Exact name of registrant as specified in its charter)
 
Delaware
001-35929
47-0634000
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
1245 Q Street, Lincoln, Nebraska
68508
(Address of principal executive offices)
(Zip Code)
 
(402) 475-2525
(Registrant's telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading Symbol(s) Name of each exchange on which registered
$.001 Par Value Common Stock NRC The NASDAQ Stock Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 
 
 
Item 2.02
Results of Operations and Financial Condition.
   
 
On October 25, 2024, National Research Corporation, a Delaware corporation (the "Company"), issued a press release announcing its financial and operating results for the third quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.
   
Item 9.01
Financial Statements and Exhibits.
   
 
(d)
Exhibits.
     
 
EXHIBIT
NUMBER
EXHIBIT DESCRIPTION
     
 
99.1
 
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
   
 
The information contained in Items 2.02 and 9.01 of this report and the exhibits hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
   
 
The information in Items 2.02 and 9.01 of this report and the exhibits hereto may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act 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 are made based on the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results or events may differ from those anticipated by forward-looking statements. Please refer to the paragraph at the end of the attached press release and various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission for information concerning risks, uncertainties, and other factors that may affect future results.
 
 
 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
NATIONAL RESEARCH CORPORATION
 
(Registrant)
     
Date: October 25, 2024
By:
/s/ Linda Stacy
   
Linda Stacy
   
Secretary, Principal Financial Officer, and Principal Accounting Officer
 
 

Exhibit 99.1

 

logo.jpg

1245 Q Street, Lincoln, NE 68508

P: 1 800 388 4264 | F: 402 475 9061

nrchealth.com

 

 

Contact:

Linda A. Stacy

Principal Financial Officer

402-475-2525

 

 

NATIONAL RESEARCH CORPORATION ANNOUNCES

THIRD QUARTER RESULTS

 

 

LINCOLN, Nebraska, October 25, 2024 — 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 info@nrchealth.com, or visit www.nrchealth.com.

 

 

NRC Announces Third Quarter 2024 Results

Page 2

October 25, 2024

 

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.

 

 

NRC Announces Third Quarter 2024 Results

Page 3

October 25, 2024

 

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  

 

 

 

NRC Announces Third Quarter 2024 Results

Page 4

October 25, 2024

 

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  

 

 
v3.24.3
Document And Entity Information
Oct. 25, 2024
Document Information [Line Items]  
Entity, Registrant Name National Research Corporation
Document, Type 8-K
Document, Period End Date Oct. 25, 2024
Entity, Incorporation, State or Country Code DE
Entity, File Number 001-35929
Entity, Tax Identification Number 47-0634000
Entity, Address, Address Line One 1245 Q Street
Entity, Address, City or Town Lincoln
Entity, Address, State or Province NE
Entity, Address, Postal Zip Code 68508
City Area Code 402
Local Phone Number 475-2525
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol NRC
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0000070487
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