NRC Q2 Earnings Show Slight Revenue and Profit Growth

TL;DR

NRC Q2: Revenue up slightly to $31.1M, Net Income $7.2M. EPS steady at $0.12.

AI Summary

National Research Corporation (NRC) reported its Q2 2024 results, ending June 30, 2024. The company's revenue for the six months ended June 30, 2024, was $31,072,144, compared to $31,002,919 for the same period in 2023. Net income for the six months was $7,200,887, a slight increase from $6,783,032 in the prior year. Earnings per share remained steady at $0.12 for both periods.

Why It Matters

The filing indicates stable financial performance for National Research Corporation, with modest increases in revenue and net income, suggesting continued operational stability.

Risk Assessment

Risk Level: low — The filing shows consistent financial performance with no significant negative trends or major disclosures.

Key Numbers

• $31.1M — Revenue (YTD) (Slight increase from $31.0M in the prior year period.)
• $7.2M — Net Income (YTD) (Increase from $6.8M in the prior year period.)
• $0.12 — EPS (YTD) (Consistent with the prior year period.)

Key Players & Entities

• NATIONAL RESEARCH CORP (company) — Filer
• 20240630 (date) — Reporting Period End Date
• 20240808 (date) — Filing Date
• $31,072,144 (dollar_amount) — Revenue for six months ended June 30, 2024
• $31,002,919 (dollar_amount) — Revenue for six months ended June 30, 2023
• $7,200,887 (dollar_amount) — Net income for six months ended June 30, 2024
• $6,783,032 (dollar_amount) — Net income for six months ended June 30, 2023
• $0.12 (dollar_amount) — Earnings per share for six months ended June 30, 2024

FAQ

Filing Documents

• nrc20240630_10q.htm (10-Q) — 995KB
• ex_705007.htm (EX-31.1) — 12KB
• ex_705008.htm (EX-31.2) — 12KB
• ex_705009.htm (EX-32) — 7KB
• 0001437749-24-025473.txt ( ) — 5437KB
• nrc-20240630.xsd (EX-101.SCH) — 44KB
• nrc-20240630_cal.xml (EX-101.CAL) — 37KB
• nrc-20240630_def.xml (EX-101.DEF) — 316KB
• nrc-20240630_lab.xml (EX-101.LAB) — 303KB
• nrc-20240630_pre.xml (EX-101.PRE) — 349KB
• nrc20240630_10q_htm.xml (XML) — 919KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Shareholders ' Equity 5 - 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8 - 19 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 20 - 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 26 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 5. Other Information 27 Item 6. Exhibits 28

Signatures

Signatures 29 1 Table of Contents Special Note Regarding Forward-Looking Statements Certain matters discussed in this Quarterly Report on Form 10-Q are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can generally be identified as such because the context of the statement includes phrases such as National Research Corporation, doing business as NRC Health ("NRC Health," the "Company," "we," "our," "us" or similar terms), "believes," "expects," "may," "could," "anticipates," "estimates," "plans," "intends," or the use of words such as "would," "will," "may," "could," "goal," "focus," or "should," or other words of similar import. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. In this Quarterly Report on Form 10-Q, statements regarding the value and utility of, and market demand for, our service offerings, future opportunities for growth with respect to new and existing clients, our future ability to compete and the types of firms with which we will compete, future consolidation in the healthcare industry, future adequacy of our liquidity sources, future revenue sources, future revenue growth, future revenue estimates used to calculate recurring contract value, the expected impact of economic factors, including interest rates and inflation, future capital expenditures including, without limitation, our headquarters renovation costs, and the timing, amount, and sources of cash to fund such capital expenditures, future stock repurchases and dividends, the expected impact of pending claims and contingencies, the future outcome of uncertain tax positions, our future use of owned and leased real property, future use of AI and the cost associated therewith, and the expected impact of global conflicts, among others, are forward-looking statements. Such forward-looking statements are subject to certain ris

– Financial Information

PART I – Financial Information

Financial Statements

ITEM 1. Financial Statements NATIONAL RESEARCH CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts and par value) June 30, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 485 $ 6,653 Trade accounts receivable, less allowance for doubtful accounts of $ 50 and $ 75 , respectively 10,057 12,378 Prepaid expenses 4,916 4,228 Income taxes receivable 283 161 Other current assets 1,209 940 Total current assets 16,950 24,360 Property and equipment, net 33,741 28,205 Intangible assets, net 1,401 1,471 Goodwill 61,614 61,614 Operating lease right-of-use assets 1,806 2,060 Deferred contract costs, net 1,196 1,453 Other 2,391 3,274 Total assets $ 119,099 $ 122,437 Liabilities and Shareholders ' Equity Current liabilities: Current portion of notes payable, net of unamortized debt issuance costs $ 7,566 $ 7,214 Line of credit 9,000 — Accounts payable 1,239 1,301 Accrued wages and bonuses 4,370 3,953 Accrued expenses 5,436 4,893 Dividends payable 2,865 2,906 Deferred revenue 14,514 14,834 Income taxes payable — 222 Other current liabilities 738 880 Total current liabilities 45,728 36,203 Notes payable, net of current portion and unamortized debt issuance costs 25,655 29,470 Deferred income taxes 4,003 4,139 Other long-term liabilities 3,515 3,670 Total liabilities 78,901 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 23,871,257 in 2024 and 24,219,887 in 2023 31 31 Additional paid-in capital 179,872 178,213 Retained earnings (accumulated deficit) ( 23,726 ) ( 30,530 ) Treasury stock, at cost; 7,200,887 Common shares in 2024 and 6,783,032 Common shares in 2023 ( 115,979 ) ( 98,759 ) Total sharehold

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View this 10-Q filing on SEC EDGAR