LINCOLN, Neb., Nov. 07, 2023 (GLOBE NEWSWIRE) -- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the third quarter 2023.

Regarding the Company's 2023 third quarter, Kevin Karas, Chief Financial Officer, said, "New sales increased compared to the third quarter of 2022, supported by growth in our Human Understanding Program, with adoption by 91 healthcare organizations as of September 30, 2023. While building our sales pipeline, we are also highly focused on controlling costs in an inflationary environment. We have realized sequential quarterly operating margin improvement in the last two quarters and will continue to emphasize returning to our historical operating margins."

Mr. Karas continued: "From a capital standpoint, NRC remains well-positioned to execute the entire range of capital allocation alternatives, including funding innovation and growth investments, shareholder dividends and share repurchases. At September 30, 2023, the Company had approximately $20 million of net debt and $25 million available on its revolving line of credit after funding $3.7 million for innovation and growth, $27.5 million for dividend payments, and $310,000 for share repurchases during the quarter."

Diluted earnings per share decreased to $0.32 for the quarter ended September 30, 2023, from diluted earnings per share of $0.33 for the quarter ended September 30, 2022.

A live simulcast of National Research Corporation's 2023 third quarter conference call will be available online at https://events.q4inc.com/attendee/533804877 November 8, 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," "focus," "will," 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, 2022 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
	2023			2022			2023			2022

Revenue	$	37,945		$	37,691		$	110,579		$	113,424

Operating expenses:
Direct		14,633			14,524			42,222			43,062
Selling, general and administrative		11,802			10,762			35,552			32,159
Depreciation and amortization		1,555			1,296			4,469			3,902
Total operating expenses		27,990			26,582			82,243			79,123

Operating income		9,955			11,109			28,336			34,301

Other income (expense):
Interest income		256			15			779			34
Interest expense		(160	)		(288	)		(594	)		(923	)
Other, net		(12	)		11			(27	)		(69	)

Total other income (expense)		84			(262	)		158			(958	)

Income before income taxes		10,039			10,847			28,494			33,343

Provision for income taxes		2,163			2,549			6,381			8,184

Net income	$	7,876		$	8,298		$	22,113		$	25,159

Earnings Per Share of Common Stock:
Basic Earnings Per Share	$	0.32		$	0.34		$	0.90		$	1.01
Diluted Earnings Per Share	$	0.32		$	0.33		$	0.89		$	1.00

Weighted average shares and share equivalents outstanding:
Basic		24,560			24,716			24,574			25,014
Diluted		24,695			24,847			24,715			25,147

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

	September 30,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	3,828		$	25,026
Accounts receivable, net		14,467			14,461
Other current assets		6,448			4,229
Total current assets		24,743			43,716

Property and equipment, net		25,589			17,248
Goodwill		61,614			61,614
Other, net		8,190			7,883
Total assets	$	120,136		$	130,461

Liabilities and Shareholders' Equity
Current liabilities:
Current portion of notes payable	$	4,665		$	4,491
Line of credit		5,000			--
Accounts payable and accrued expenses		6,027			5,136
Accrued compensation		5,029			4,551
Deferred revenue		16,238			15,198
Dividends payable		2,947			2,956
Other current liabilities		899			1,085
Total current liabilities		40,805			33,417

Notes payable, net of current portion and unamortized debt issuance costs		14,164			17,690
Other non-current liabilities		7,295			7,321
Total liabilities		62,264			58,428

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 30,956,479 in 2023 and 30,922,181 in 2022, outstanding 24,562,068 in 2023 and 24,628,173 in 2022		31			31
Additional paid-in capital		176,714			175,453
Retained earnings (accumulated deficit)		(36,482	)		(25,184	)

Treasury stock		(82,391	)		(78,267	)
Total shareholders' equity		57,872			72,033
Total liabilities and shareholders' equity	$	120,136		$	130,461

Contact:

Kevin R. Karas

Chief Financial Officer

402-475-2525