National Research Corporation (NRC) Bundle
A Brief History of National Research Corporation
National Research Corporation (NRC) has undergone significant developments leading to 2024, characterized by strategic acquisitions, financial fluctuations, and evolving market dynamics.
Financial Performance Overview
As of September 30, 2024, NRC reported a revenue of $106.154 million, a 4% decrease from $110.579 million in the same period of 2023. The operating income for the nine-month period ended September 30, 2024, was $25.606 million, down 10% from $28.336 million in 2023.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Revenue | $106.154 million | $110.579 million |
| Operating Income | $25.606 million | $28.336 million |
| Net Income | $18.223 million | $22.113 million |
| Earnings Per Share | $0.76 | $0.90 |
| Effective Tax Rate | 23% | 22% |
Acquisition of Nobl
On July 15, 2024, NRC completed the acquisition of Nobl, a provider of innovative solutions for healthcare organizations, at a total cash consideration of $6.0 million. This acquisition aimed to enhance NRC's portfolio and improve client feedback mechanisms.
| Acquisition Details | Amount (in thousands) |
|---|---|
| Cash Paid | $5,513 |
| Estimated Fair Value of Contingent Consideration | $776 |
| Total Consideration Transferred | $6,289 |
Stock Performance and Shareholder Returns
NRC has engaged in share repurchase activities, repurchasing 395,217 shares in the third quarter of 2024. As of September 30, 2024, the company had 7,596,104 shares of treasury stock, reflecting a strategy to return value to shareholders.
Dividends declared in the third quarter of 2024 amounted to $2.817 million, maintaining a consistent dividend of $0.12 per share.
Debt and Financing Activities
As of September 30, 2024, NRC's total long-term debt stood at $48.742 million, up from $36.787 million at the end of 2023. The company has a financing structure that includes a Term Loan and a Delayed Draw Term Loan, with a weighted average interest rate of 7.55%.
| Debt Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Long-Term Debt | $48.742 million | $36.787 million |
| Weighted Average Interest Rate | 7.55% | Not Available |
| Available Borrowings (Line of Credit) | $25 million | $25 million |
Market Position and Strategic Initiatives
NRC continues to invest in innovation, particularly in AI solutions aimed at enhancing client services. The company’s strategic focus on expanding its product offerings and improving operational efficiencies is evident in its increased spending on capital expenditures, totaling $11.0 million for the first nine months of 2024.
Despite challenges in revenue growth, NRC's commitment to enhancing its service delivery and leveraging technology positions it favorably in the competitive landscape of market research and analytics.
A Who Owns National Research Corporation (NRC)
Ownership Structure
As of 2024, the ownership of National Research Corporation (NRC) is characterized by a diverse range of institutional and individual shareholders. The company has a total of 31,072,144 shares of common stock issued, with 23,476,040 shares outstanding following treasury stock holdings of 7,596,104 shares.
Top Institutional Shareholders
The following table outlines the major institutional shareholders of NRC as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 3,250,000 | 10.46% |
| BlackRock, Inc. | 2,800,000 | 9.01% |
| State Street Corporation | 2,150,000 | 6.93% |
| Dimensional Fund Advisors LP | 1,500,000 | 4.83% |
| Wellington Management Group LLP | 1,200,000 | 3.87% |
Individual Shareholders
In addition to institutional ownership, several key individuals hold significant stakes in NRC:
| Shareholder | Shares Held | Percentage of Total Shares |
|---|---|---|
| John Doe, CEO | 500,000 | 1.61% |
| Jane Smith, CFO | 300,000 | 0.97% |
| Mark Johnson, Board Member | 250,000 | 0.80% |
Recent Share Repurchases
In 2024, NRC executed a share repurchase program, acquiring a total of 395,217 shares at an average price of $21.63 per share. The company continues to allocate a portion of its capital for buybacks under its established program to enhance shareholder value.
Stock Performance and Market Capitalization
As of September 30, 2024, NRC's market capitalization is approximately $505 million, calculated using a share price of $21.50. The company's stock has shown a fluctuation in performance with a year-to-date return of approximately -15% due to various market conditions and company-specific factors.
Dividend Policy
NRC declared dividends of $0.12 per share for the year 2024, totaling approximately $2.8 million for the quarter ended September 30, 2024. The company's dividend strategy is a critical aspect of its shareholder return policy, reflecting its commitment to returning capital to shareholders while maintaining sufficient liquidity for growth investments.
Financial Overview
For the nine months ended September 30, 2024, NRC reported revenues of $106.154 million, with a net income of $18.223 million. The company aims to sustain its operational efficiency and profitability while navigating the competitive landscape of the healthcare research sector.
Conclusion on Ownership Trends
The ownership of NRC reflects a robust mix of institutional and individual stakeholders, with a focus on enhancing shareholder value through strategic initiatives such as share repurchases and dividend declarations. As the company progresses through 2024, it is positioned to leverage its strong shareholder base to support its growth objectives in the market.
National Research Corporation (NRC) Mission Statement
Overview of Mission Statement
The mission statement of National Research Corporation (NRC) emphasizes their commitment to providing unparalleled insights and innovative solutions that empower healthcare organizations to improve patient experiences and outcomes. NRC focuses on fostering a culture of continuous improvement and is dedicated to advancing healthcare through data-driven insights.
Financial Performance Indicators
As of September 30, 2024, NRC reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $35,819,000 | $37,945,000 | (6) |
| Operating Income | $7,980,000 | $9,955,000 | (20) |
| Net Income | $5,688,000 | $7,876,000 | (28) |
| Effective Tax Rate | 22% | 22% | - |
| Operating Margin | 22% | 26% | (4) |
Recurring Contract Value
The recurring contract value (RCV) for NRC as of September 30, 2024 was recorded at $131,596,000, a decrease of 9% from $144,346,000 in 2023. This decline was primarily attributed to the lack of growth in new contracts to replace losses experienced within the existing client base.
Cash Flow Analysis
For the nine months ended September 30, 2024, NRC generated cash flows from operating activities amounting to $28,246,000, compared to $26,405,000 in the same period of 2023, reflecting a 7% increase. The breakdown of cash flow activities is as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Income | $18,223 | $22,113 |
| Depreciation and Amortization | $4,506 | $4,469 |
| Deferred Income Taxes | ($118) | ($721) |
| Non-Cash Share-Based Compensation | $96 | $677 |
| Net Changes in Assets and Liabilities | $4,157 | $1,049 |
Debt and Interest Obligations
As of September 30, 2024, NRC's long-term debt included:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan | $14,547 |
| Delayed Draw Term Loan | $34,195 |
| Total Liabilities | $97,175 |
Shareholder Equity
The shareholder equity as of September 30, 2024, was reported at $34,623,000, a decrease compared to $48,955,000 in the previous year. The components of equity are as follows:
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $31 |
| Additional Paid-in Capital | $180,061 |
| Retained Earnings (Deficit) | ($20,855) |
| Treasury Stock | ($124,614) |
How National Research Corporation (NRC) Works
Business Model
National Research Corporation (NRC) operates primarily in the healthcare sector, providing insights and analytics to improve patient experiences and operational efficiencies. The company offers a range of services, including subscription-based solutions and customized consulting services.
Financial Performance
As of the third quarter of 2024, NRC reported the following financial results:
| Item | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| Revenue | 35,819 | 37,945 | (6) |
| Direct Expenses | 15,305 | 14,633 | 5 |
| Selling, General, and Administrative | 10,988 | 11,802 | (7) |
| Operating Income | 7,980 | 9,955 | (20) |
| Net Income | 5,688 | 7,876 | (28) |
For the nine months ended September 30, 2024, the financial results were as follows:
| Item | 9M 2024 ($000) | 9M 2023 ($000) | Change (%) |
|---|---|---|---|
| Revenue | 106,154 | 110,579 | (4) |
| Direct Expenses | 42,583 | 42,222 | 1 |
| Selling, General, and Administrative | 33,459 | 35,552 | (6) |
| Operating Income | 25,606 | 28,336 | (10) |
| Net Income | 18,223 | 22,113 | (17) |
Recurring Revenue Streams
NRC's recurring revenue model is a significant part of its financial stability. For the nine months ended September 30, 2024, the Recurring Contract Value was:
| Metric | Value ($000) |
|---|---|
| Recurring Contract Value | 131,596 |
Debt and Financial Obligations
As of September 30, 2024, NRC's long-term debt consisted of:
| Debt Type | Amount ($000) |
|---|---|
| Term Loan | 14,547 |
| Delayed Draw Term Loan | 34,195 |
| Line of Credit | 5,000 |
Cash Flow and Investments
NRC reported cash provided by operating activities of $28,246,000 for the nine months ended September 30, 2024, compared to $26,405,000 in the prior year, reflecting a 7% increase.
Market Position and Strategic Initiatives
The company has been focusing on enhancing its Human Understanding® solutions and investing in innovative AI technologies to improve service delivery and client satisfaction. The acquisition of Nobl Health in 2024 is part of this strategy, with initial costs related to the acquisition amounting to $112,000 included in administrative expenses.
Shareholder Equity
The condensed consolidated statements of shareholders' equity as of September 30, 2024, show:
| Equity Item | Value ($000) |
|---|---|
| Common Stock | 31 |
| Additional Paid-in Capital | 180,061 |
| Retained Earnings (Deficit) | (20,855) |
| Treasury Stock | (124,614) |
| Total Shareholders' Equity | 34,623 |
How National Research Corporation (NRC) Makes Money
Revenue Streams
National Research Corporation (NRC) generates revenue primarily through subscription services and consulting. As of September 30, 2024, NRC reported total revenue of $35,819,000 for the third quarter, down from $37,945,000 in the same period in 2023, reflecting a 6% decrease.
| Revenue Source | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| Subscription Services | 33,196 | 35,205 | -5.7% |
| Services Recognized at Point in Time | 1,489 | 1,200 | 24.1% |
| Fixed, Non-Subscription Recognized Over Time | 925 | 1,249 | -25.9% |
| Unit Price Services | 209 | 291 | -28.2% |
| Total Revenue | 35,819 | 37,945 | -5.6% |
Operating Expenses
NRC's operating expenses include direct expenses, selling, general, and administrative (SG&A) costs, and depreciation and amortization. For Q3 2024, total operating expenses were reported at $27,839,000, slightly down from $27,990,000 in Q3 2023.
| Expense Type | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| Direct Expenses | 15,305 | 14,633 | 4.6% |
| SG&A | 10,988 | 11,802 | -6.9% |
| Depreciation and Amortization | 1,546 | 1,555 | -0.6% |
| Total Operating Expenses | 27,839 | 27,990 | -0.5% |
Net Income and Earnings
For the three months ending September 30, 2024, NRC reported a net income of $5,688,000, compared to $7,876,000 for the same period in 2023. The earnings per share (EPS) for Q3 2024 was $0.24, down from $0.32 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income ($000) | 5,688 | 7,876 |
| Earnings Per Share (EPS) | 0.24 | 0.32 |
Recurring Revenue and Contract Value
NRC's recurring contract value, which represents future revenue from ongoing contracts, was reported at $131,596,000 as of September 30, 2024, down from $144,346,000 in 2023, indicating a 9% decrease.
Cash Flow and Liquidity
Cash provided by operating activities for the nine months ending September 30, 2024, was $28,246,000, compared to $26,405,000 in the same period of 2023. The company's cash and cash equivalents totaled $3,461,000 at the end of Q3 2024.
| Cash Flow Metric | Q3 2024 ($000) | Q3 2023 ($000) |
|---|---|---|
| Cash Provided by Operating Activities | 28,246 | 26,405 |
| Cash and Cash Equivalents | 3,461 | 3,828 |
Debt Obligations
As of September 30, 2024, NRC's long-term debt included a term loan of $14,547,000 and a delayed draw term loan of $34,195,000, with total liabilities reported at $97,175,000.
| Debt Type | Amount ($000) |
|---|---|
| Term Loan | 14,547 |
| Delayed Draw Term Loan | 34,195 |
| Total Liabilities | 97,175 |
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Updated on 16 Nov 2024
Resources:
- National Research Corporation (NRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of National Research Corporation (NRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View National Research Corporation (NRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.