LINCOLN, Neb., Feb. 14, 2023 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the fourth quarter and calendar year 2022.

Regarding the Company's 2022 annual performance, Kevin Karas, Chief Financial Officer, said, "We continued to grow revenue from core offerings, including our Human Understanding Program, resulting in 7% year-over-year revenue growth, partially offset by the phase out of our Canadian operations and other non-core offerings. Adoption of the Human Understanding Program has continued to increase with recent new client additions including St. Bernards Healthcare, Longstreet Clinic, and Legacy Community Health. In addition, we are proud to have recently received the Best in KLAS 2023 Award for Patient Experience Improvement. This recognition affirms our leadership position and focus on transforming the healthcare industry with a human-first approach."

The Company's Board of Directors maintained its capital allocation priorities of funding innovation and growth investments, including merger and acquisition activity as well as internal projects, shareholder dividends and share repurchases during 2022. For the full year, the Company funded $12.2 million for innovation and growth, $21.0 million for dividend payments, and $27.6 million for share repurchases.

Related to the fourth quarter ended December 31, 2022, other expense increased primarily due to a $2.6 million reclassification of the cumulative translation adjustment into earnings from the substantial liquidation of our investment in our Canadian subsidiary.

Diluted earnings per share decreased to $0.27 for the quarter ended December 31, 2022, from diluted earnings per share of $0.38 for the quarter ended December 31, 2021. Diluted earnings per share decreased to $1.27 for the year ended December 31, 2022, from diluted earnings per share of $1.46 for the year ended December 31, 2021.

A live simulcast of National Research Corporation's 2022 fourth quarter conference call will be available online at https://events.q4inc.com/attendee/759565253 on February 15, 2023, 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 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.

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 December 31						Twelve months ended December 31
	2022			2021			2022			2021

Revenue	$	38,144		$	38,298		$	151,568		$	147,954

Operating expenses:
Direct		13,987			14,167			57,049			52,350
Selling, general and administrative		10,541			9,901			42,699			38,960
Depreciation, amortization and impairment		1,375			1,357			5,277			6,374
Total operating expenses		25,903			25,425			105,025			97,684

Operating income		12,241			12,873			46,543			50,270

Other income (expense):
Interest income		134			4			168			14
Interest expense		(286	)		(399	)		(1,209	)		(1,667	)
Reclassification of cumulative translation into earnings		(2,569	)		--			(2,569	)		--
Other, net		(49	)		13			(118	)		4

Total other income (expense)		(2,770	)		(382	)		(3,728	)		(1,649	)

Income before income taxes		9,471			12,491			42,815			48,621

Provision for income taxes		2,830			2,858			11,015			11,155

Net income	$	6,641		$	9,633		$	31,800		$	37,466

Earnings Per Share of Common Stock:
Basic Earnings Per Share	$	0.27		$	0.38		$	1.28		$	1.47
Diluted Earnings Per Share	$	0.27		$	0.38		$	1.27		$	1.46

Weighted average shares and share equivalents outstanding:
Basic		24,648			25,419			24,922			25,422
Diluted		24,775			25,597			25,052			25,640

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

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

	December 31, 2022			December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	25,026		$	54,361
Accounts receivable, net		14,461			13,728
Other current assets		4,229			5,618
Total current assets		43,716			73,707

Property and equipment, net		17,248			12,391
Goodwill		61,614			61,614
Other, net		7,883			9,828
Total assets	$	130,461		$	157,540

Liabilities and Shareholders' Equity
Current liabilities:
Current portion of notes payable, net unamortized debt issuance costs	$	4,491		$	4,278
Accounts payable and accrued expenses		5,136			7,393
Accrued compensation		4,551			7,139
Deferred revenue		15,198			17,213
Dividends payable		2,956			3,044
Other current liabilities		1,085			1,321
Total current liabilities		33,417			40,388

Notes payable, net of current portion and unamortized debt issuance costs		17,690			22,269
Other non-current liabilities		7,321			9,546
Total liabilities		58,428			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 24,628,173 in 2022 and 25,361,409 in 2021		31			31
Additional paid-in capital		175,453			173,942
Retained earnings (accumulated deficit)		(25,184	)		(36,112	)
Accumulated other comprehensive loss, foreign currency translation adjustment		--			(2,375	)
Treasury stock		(78,267	)		(50,149	)
Total shareholders' equity		72,033			85,337
Total liabilities and shareholders' equity	$	130,461		$	157,540

Contact: Kevin R. Karas

Chief Financial Officer

402-475-2525

National Research Corporation Announces Fourth Quarter and Calendar Year 2022 Results