EX-99.1 2 ex_843665.htm EXHIBIT 99.1 ex_843665.htm

Exhibit 99.1

 

logonrc.jpg

1245 Q Street, Lincoln, NE 68508

P: 1 800 388 4264 | F: 402 475 9061
nrchealth.com

 

NRC HEALTH ANNOUNCES SECOND QUARTER 2025 RESULTS

 

Reports third consecutive quarter of sequential TRCV Growth

 

LINCOLN, Nebraska, July 28, 2025 — National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the second quarter 2025.

 

CEO Statement

 

Trent S. Green, Chief Executive Officer of NRC Health, commented: “We’re encouraged by our second-quarter results, which demonstrate continued momentum across key areas of our business. In my early weeks as CEO, I’ve been energized by feedback from both current and prospective customers, particularly their enthusiasm for our product portfolio and appreciation for the service mindset of our associates. To provide additional context on the quarter, we’re reinstating our quarterly earnings call, which I hope investors will join tomorrow, July 29, at 10 a.m. ET.”

 

Additional Information

 

Total recurring contract value1, or TRCV, grew 2% sequentially, the third consecutive quarter of TRCV growth and the highest sequential growth rate since the first quarter of 2021. New logo sales, cross-sells, and customer retention have improved over the last several quarters, attributable to a stronger sales team, a product portfolio that resonates in the marketplace, and the strength of our customer service organization.

 

With the transition from founder-led leadership, compensation arrangements for executive leaders were implemented to preserve philosophical and economic alignment with long-term shareholders. These arrangements, primarily non-recurring cash bonuses and equity grants, resulted in a net margin of 0% for the second quarter. Excluding these items, adjusted EBITDA margin2 was 30% in the quarter and has remained relatively stable over the past year due to cost control initiatives and higher revenue per FTE.      

 

Dividends and Stock Repurchases

 

The Company’s Board of Directors on July 23, 2025, declared a quarterly cash dividend of $0.12 (twelve cents) per share payable Friday, October 10, 2025, to shareholders of record as of the close of business on Friday, September 26, 2025.

 

During the second quarter, NRC repurchased 381,736 shares at a weighted average price of $14.96 per share. During 2025, the company has returned a total of $16.1 million to shareholders through dividends and stock repurchases.

 

 


1 Total recurring contract value (TRCV) is a measure of projected revenue under all renewable contracts for the next 12-month period.

Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income and disclosure regarding why we believe adjusted EBITDA provides useful information to investors is included later in this release.

 

 

NRC Announces Second Quarter 2025 Results

Page 2

July 28, 2025

 

Earnings Call Information

 

The company will be hosting an earnings call to provide additional detail on the quarter on July 29, 2025, 10 a.m. ET, available at nrchealth.com/investor-relations.

 

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.

 

Non-GAAP Performance Measures

 

The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below.

 

Forward-Looking Statements

 

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, share repurchases, and revenue 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, 2024, 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 Health Investor Relations Contact

ir@nrchealth.com

 

 

 

NRC Announces Second Quarter 2025 Results

Page 3

July 28, 2025

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

 

   

Three months ended
June 30

   

Six months ended
June 30

 
   

2025

   

2024

   

2025

   

2024

 
                                 

Revenue

  $ 34,038     $ 35,021     $ 67,588     $ 70,334  
                                 

Operating expenses:

                               

Direct

    12,974       13,422       26,031       27,278  

Selling, general and administrative

    17,734       11,221       28,089       22,471  

Depreciation and amortization

    1,742       1,513       3,284       2,960  

Total operating expenses

    32,450       26,156       57,404       52,709  
                                 

Operating income

    1,588       8,865       10,184       17,625  
                                 

Other income (expense):

                               

Interest income

    21       25       41       69  

Interest expense

    (1,032 )     (555 )     (1,932 )     (1,160 )

Other, net

    4       (11 )     11       (16 )
                                 

Total other expense

    (1,007 )     (541 )     (1,880 )     (1,107 )
                                 

Income before income taxes

    581       8,324       8,304       16,518  
                                 

Provision for income taxes

    687       2,149       2,623       3,984  
                                 

Net income (loss)

  $ (106 )   $ 6,175     $ 5,681     $ 12,534  
                                 

Earnings (loss) Per Share of Common Stock:

                               

Basic Earnings (loss) Per Share

  $ (0.01 )   $ 0.26     $ 0.25     $ 0.53  

Diluted Earnings (loss) Per Share

  $ (0.01 )   $ 0.26     $ 0.25     $ 0.52  
                                 

Weighted average shares and share equivalents outstanding:

                               

Basic

    22,658       23,871       22,814       23,870  

Diluted

    22,658       23,915       22,820       23,934  

 

 

NRC Announces Second Quarter 2025 Results

Page 4

July 28, 2025

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

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

 

   

June 30,

2025

   

December 31,

2024

 

Assets

               

Current assets:

               

Cash and cash equivalents

  $ 5,274     $ 4,233  

Accounts receivable, net

    12,416       11,054  

Other current assets

    7,630       4,313  

Total current assets

    25,320       19,600  
                 

Property and equipment, net

    42,232       38,269  

Goodwill

    66,152       66,152  

Other, net

    7,683       8,518  

Total assets

  $ 141,387     $ 132,539  
                 

Liabilities and Shareholders Equity

               

Current liabilities:

               

Current portion of notes payable, net of unamortized debt issuance costs

  $ 3,928     $ 4,789  

Accounts payable and accrued expenses

    6,794       6,285  

Accrued compensation

    5,685       4,774  

Deferred revenue

    15,603       15,786  

Dividends payable

    2,776       2,770  

Other current liabilities

    1,140       1,454  

Total current liabilities

    35,926       35,858  
                 

Notes payable, net of current portion and unamortized debt issuance costs

    77,029       57,895  

Other non-current liabilities

    7,104       7,502  

Total liabilities

    120,059       101,255  
                 

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 31,782,158 in 2025 and 31,072,144 in 2024, outstanding 23,103,685 in 2025 and 23,083,116 in 2024

    32       31  

Additional paid-in capital

    180,858       180,249  

Retained earnings (accumulated deficit)

    (16,894 )     (17,064 )

Treasury stock

    (142,668 )     (131,932 )

Total shareholders’ equity

  $ 21,328     $ 31,284  

Total liabilities and shareholders’ equity

  $ 141,387     $ 132,539  

 

 

NRC Announces Second Quarter 2025 Results

Page 5

July 28, 2025

 

Non- GAAP Measures of Financial Performance

 

In addition to consolidated GAAP financial measures, NRC Health reviews various non-GAAP financial measures, including “Adjusted EBITDA,” “Adjusted Net Income,” and “Adjusted Earnings per Share.” NRC Health believes Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per Share  are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as (i) they exclude certain items that are unusual in nature or whose fluctuation from period to period do not necessarily correspond to changes in the operations of NRC Health’s business, and (ii) the exclusion of non-cash stock compensation is useful for investors applying certain valuation metrics and is consistent with the leverage ratio for our credit facility. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-recurring executive compensation and non-cash stock compensation items. Adjusted Net Income represents net income adjusted to add back certain non-recurring executive compensation and non-cash stock compensation and the related tax. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

 

Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income

(In thousands, except per share data, unaudited)

 

   

Three months ended June 30

   

Six months ended June 30

 
   

2025

   

2024

   

2025

   

2024

 
                                 

Net income (loss)

  $ (106 )   $ 6,175     $ 5,681     $ 12,534  

Add back:

                               

Non-recurring executive compensation

    6,640       -       6,640       -  

Tax on non-recurring executive compensation

    (468 )     -       (468 )     -  

Non-cash stock compensation

    307       (57 )     478       (92 )

Tax on stock compensation

    -       14       -       23  

Adjusted Net Income

  $ 6,373     $ 6,132     $ 12,331     $ 12,465  
                                 

Earnings (loss) Per Share of Common Stock:

                               

Basic Earnings (loss) Per Share

  $ (0.01 )   $ 0.26     $ 0.25     $ 0.52  

Diluted Earnings (loss) Per Share

  $ (0.01 )   $ 0.26     $ 0.25     $ 0.52  
                                 

Adjusted Earnings (loss) Per Share of Common Stock:

                               

Adjusted Basic Earnings (loss) Per Share

  $ 0.28     $ 0.26     $ 0.54     $ 0.52  

Adjusted Diluted Earnings (loss) Per Share

  $ 0.28     $ 0.26     $ 0.54     $ 0.52  
                                 

Weighted average shares and share equivalents outstanding:

                               

Basic

    22,658       23,871       22,814       23,870  

Diluted

    22,658       23,915       22,820       23,934  

 

 

NRC Announces Second Quarter 2025 Results

Page 6

July 28, 2025

 

Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA

Unaudited

(In thousands, except per share data)

 

   

Three months ended

 
   

June 30,
2025

   

March 31,

2025

   

December 31,

2024

   

September 30,

2024

   

June 30,
2024

 
                                         

Revenue

  $ 34,038     $ 33,551     $ 36,907     $ 35,819     $ 35,021  
                                         

Net income (loss)

  $ (106 )   $ 5,787     $ 6,561     $ 5,688     $ 6,175  

Add back

                                       

Interest expense

    1,032       899       729       706       555  

Income taxes

    687       1,936       2,315       1,608       2,149  

Depreciation and amortization

    1,742       1,542       1,516       1,546       1,513  

Non-recurring executive compensation

    6,640       -       -       -       -  

Non-cash stock compensation

    307       171       188       189       (57 )

Adjusted EBITDA

  $ 10,302     $ 10,335     $ 11,309     $ 9,737     $ 10,335  

Adjusted EBITDA Margin

    30.3 %     30.8 %     30.6 %     27.2 %     29.5 %