 Net New Sales and Total Contract Value Register Impressive GrowthLINCOLN, Neb., Aug. 04, 2020 GLOBE NEWSWIRE -- National Research Corporation NASDAQ:NRC today announced results for the second quarter of 2020. Revenue for the quarter ended June 30, 2020, was 31.2 million, compared to 31.4 million for the quarter ended June 30, 2019. Operating income was 9.3 million for the second quarter 2020 compared to 10.1 million for the same quarter 2019. In response to special circumstances among clients hard hit by COVID-19, we elected to provide uncompensated services which reduced revenue without a corresponding offset in expenses, thus impacting operating income. All such impacted clients have resumed compensated services as planned to date and many extended contract terms in recognition of the support provided by NRC Health resulting, we believe, in a stronger partnership. We salute all essential caregivers and are glad we could offer this support.Net income for the quarter ended June 30, 2020, was 7.7 million, compared to 7.4 million for the quarter ended June 30, 2019. Diluted earnings per share increased to 0.30 for the quarter ended June 30, 2020, from diluted earnings per share of 0.29 for the quarter ended June 30, 2019. Results for the second quarter 2020 included an income tax provision of 842,000 compared with 2.1 million for the same quarter 2019.Demand for our product portfolio remains strong. Net New Sales were up 6 in the second quarter and 19 year-to-date 2020 compared to 2019, despite a pivot to virtual sales efforts. Based on recent wins, we believe our offerings are highly differentiated in our clients eyes against competitive offerings from firms outside of the healthcare industry and legacy vendors within. Case in point, we added healthcare brands Partners HealthCare and Orlando Health this quarter, each seven-figure takeaways from Press Ganey. We believe every added client deepens our moat and brings additive value to all current partners through the network effect.Total Recurring Contract Value increased 11 in the second quarter 2020, a subset of which is our digital Voice of the Customer offering. VOC now comprises 107 million of Contract Value, up 30 year-over-year. We believe the efficiencies inherent in this digital platform lead to long-term margin improvements, a hallmark of our financial performance, notwithstanding the current quarter impact of COVID-19. Our Voice of the Customer offerings, being uniquely personalized to healthcare, contribute to higher client retention rates as well, compounding the enhancing visibility of recurring revenue streams. It goes without saying that COVID-19 is far from behind us and we continue to recognize and support the work of our healthcare partners and caregivers worldwide. NRC Health retains its conservative stance regarding liquidity for the security of our associates and optionality as a business. Accordingly, our Board of Directors has determined not to pay a dividend for the current quarter.A listen-only simulcast of National Research Corporations 2020 second quarter conference call will be available online at on August 5, 2020, 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 39 years, National Research Corporation has been a leading provider of analytics and insights that facilitate measurement and improvement of human understanding.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, 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, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. In this press release, the statements relating to the future status of our partnership with clients and the future impact of adding additional clients are forward-looking statements. 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.Contact:Kevin R. Karas Chief Financial Officer 402-475-2525 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, 2020 2019 2020 2019 Revenue 31,166 31,414 65,026 62,894 Operating expenses: Direct expenses 11,634 11,506 24,180 23,160 Selling, general and administrative 8,852 8,319 17,600 16,026 Depreciation and amortization 1,405 1,440 2,777 2,855 Total operating expenses 21,891 21,265 44,557 42,041 Operating income 9,275 10,149 20,469 20,853 Other income expense: Interest income 2 8 13 14 Interest expense 450 533 914 1,103 Other, net 270 139 360 419 Total other expense 718 664 541 1,508 Income before income taxes 8,557 9,485 19,928 19,345 Provision for income taxes 842 2,092 458 3,756 Net income 7,715 7,393 19,470 15,589 Earnings Per Share of Common Stock: Basic Earnings Per Share 0.31 0.30 0.78 0.63 Diluted Earnings Per Share 0.30 0.29 0.76 0.61 Weighted average shares and share equivalents outstanding Basic 25,148 24,789 25,060 24,777 Diluted 25,680 25,586 25,702 25,549 NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Balance Sheets Dollars in thousands, except share amounts and par value June 30, 2020 December 31, 2019 Assets Current assets: Cash and cash equivalents11,957 13,517 Accounts receivable, net 19,882 11,639 Income taxes receivable 272 69 Other current assets 4,586 3,932 Total current assets 36,697 29,157 Net property and equipment 12,355 13,530 Goodwill 57,829 57,935 Other, net 9,900 10,063 Total assets116,781 110,685 Liabilities and Shareholders Equity Current liabilities: Notes payable3,966 4,378 Accounts payable and accrued expenses 3,882 4,687 Accrued compensation 6,830 6,086 Income taxes payable 308 366 Dividends payable -- 5,239 Deferred revenue 16,275 16,354 Other current liabilities 1,007 1,045 Total current liabilities 32,268 38,155 Notes payable, net of current portion 28,627 29,795 Other non-current liabilities 10,312 9,843 Total liabilities 71,207 77,793 Shareholders equity: Preferred stock, 0.01 par value, authorized 2,000,000 shares, none issued -- -- Common stock, 0.001 par value; authorized 60,000,000 shares, issued 30,553,546 in 2020 and 30,151,574 in 2019, outstanding 25,235,123 in 2020 and 24,947,500 in 2019 31 30 Additional paid-in capital 167,808 162,154 Retained earnings accumulated deficit 79,165 93,357 Accumulated other comprehensive loss, foreign currency translation adjustment 2,872 2,209 Treasury stock 40,228 33,726 Total shareholders equity 45,574 32,892 Total liabilities and shareholders equity116,781 110,685 