National Research Corporation (NASDAQ:NRC) Q2 2020 Earnings Conference Call August 5, 2020 11:00 AM ET Company Participants Kevin Karas - Chief Financial Officer Conference Call Participants John Lewis - Willis Investment Counsel Operator Greetings and welcome to the Second Quarter 2020 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Wednesday, August 5, 2020. I would now like to turn the conference over to Kevin Karas, Chief Financial Officer. Please go ahead. Ke ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ (Address of principal executive offices) (Zip Code) (402) 475-2525 (Registrant's telephone number, including area code) Commission ...

National Research Corporation (NASDAQ:NRC) Q1 2020 Earnings Conference Call May 6, 2020 11:00 AM ET Company Participants Kevin Karas - CFO Conference Call Participants Operator Greetings and welcome to the First Quarter 2020 Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we'll conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, May 6, 2020. I would now like to turn the conference ove ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-35929 National Research Corporation (Exact name of Registrant as specified in its charter) (State or ot ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number: 001-35929 National Research Corporation (Exact name of registrant as specified in its charter) Wisco ...

National Research Corporation (NASDAQ:NRC) Q4 2019 Earnings Conference Call February 12, 2020 11:00 AM ET Company Participants Michael Hays - Chief Executive Officer Linda Stacy - Vice President, Finance Steve Jackson - President Conference Call Participants Operator Greetings and welcome to the Fourth Quarter 2019 Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we'll conduct a question-and-answer session. [Operator Instructions] And as a reminder, this ...

Financial Data and Key Metrics Changes - Total contract value at the end of Q3 2019 was $140.5 million, representing an 11% growth year-over-year [6] - Q3 2019 revenue was $32.5 million, an increase of 8% compared to Q3 2018 [7] - Net income for Q3 2019 was $8.1 million, up from $7 million in Q3 2018 [11] Business Line Data and Key Metrics Changes - Revenue from the digital Voice of the Customer platform solutions increased to 64% of total revenue in Q3 2019, compared to 51% in Q3 2018 [7] - Total contract value for digital Voice of the Customer platform solutions rose to $93 million from $69.8 million year-over-year [6] Market Data and Key Metrics Changes - Health care system clients with agreements for multiple solutions represented 27% of the client base at the end of Q3 2019, up from 24% the previous year [6] Company Strategy and Development Direction - The company is focusing on the Voice of the Customer platform as a key revenue growth engine, registering year-to-date revenue growth of 35% in 2019 over 2018 [13] - The strategy includes converting current clients to the VoC platform, winning new clients, and capitalizing on the existing installed base by adding value through additional use cases [14] Management's Comments on Operating Environment and Future Outlook - Management noted that healthcare systems are prioritizing efficiency and scrutinizing their spending, which presents challenges but also opportunities to demonstrate ROI [22][23] - The company is experiencing strong sales momentum, setting a new record of $10 million in net new sales for the quarter [5] Other Important Information - Total operating expenses for Q3 2019 were $22.2 million, an increase of 7% compared to the prior year [8] - Selling, general, and administrative expenses increased to $8.7 million in Q3 2019 from $7.7 million in Q3 2018 [10] Q&A Session Summary Question: Can you expand on the additional products or services being sold into the existing customer base? - The company is integrating historically separate offerings into the VoC platform, such as transitions calls, to provide broader value across the platform [17][18] Question: How are competitors responding in the sales cycles? - The company is becoming more comfortable with its value proposition, showing tangible differences compared to competitors like PRC and Press Ganey, particularly in product offerings [20][21] Question: Any comments on the macro environment and its impact on IT or operating budgets? - The company acknowledges that healthcare systems are focused on efficiency and cost-cutting, but has been successful in demonstrating value and ROI to both prospects and existing customers [22][23]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, detailing financial performance and position for the period ended September 30, 2019 [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents key financial data, including revenue, net income, balance sheet figures, and cash flows, demonstrating year-over-year growth Condensed Consolidated Balance Sheet Data (in thousands) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total current assets** | $26,570 | $28,410 | | **Total assets** | $107,649 | $108,032 | | **Total current liabilities** | $38,312 | $47,109 | | **Total liabilities** | $78,674 | $88,949 | | **Total shareholders' equity** | $28,975 | $19,083 | Condensed Consolidated Income Statement Data (in thousands, except per share amounts) | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $32,465 | $30,013 | $95,359 | $89,047 | | **Operating income** | $10,220 | $9,166 | $31,073 | $25,880 | | **Net income** | $8,119 | $6,992 | $23,708 | $22,246 | | **Diluted EPS (Common)** | $0.31 | $0.27 | $0.92 | $0.73 | Condensed Consolidated Cash Flow Data (Nine months ended Sep 30, in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $28,974 | $25,936 | | **Net cash used in investing activities** | ($3,429) | ($4,858) | | **Net cash used in financing activities** | ($30,575) | ($48,193) | | **Change in cash and cash equivalents** | ($4,633) | ($27,460) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, revenue recognition, lease standard adoption, debt structure, and other significant financial disclosures - The company derives a **majority of its revenues** from annually renewable subscription-based service agreements, which are generally cancelable on short or no notice without penalty[39](index=39&type=chunk) - Effective January 1, 2019, the company adopted the new lease standard (Topic 842), recording **$2.3 million** of right-of-use assets and **$2.4 million** of lease liabilities upon transition[47](index=47&type=chunk)[48](index=48&type=chunk) Disaggregated Revenue by Timing (in thousands) | Revenue Type | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | | Subscription services recognized ratably over time | $84,460 | $77,746 | | Services recognized at a point in time | $4,231 | $2,923 | | Fixed, non-subscription recognized over time | $2,083 | $2,561 | | Unit price services recognized over time | $4,585 | $5,817 | | **Total revenue** | **$95,359** | **$89,047** | - The company's credit agreement includes a **$40 million** term loan and a **$15 million** revolving line of credit. As of September 30, 2019, the company was in compliance with all financial covenants[63](index=63&type=chunk)[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, attributing revenue growth to customer sales and improved operating income, while affirming strong liquidity [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section analyzes revenue growth, expense management, and the resulting increase in operating income for the nine-month period Q3 2019 vs. Q3 2018 Performance (in millions) | Metric | Q3 2019 | Q3 2018 | Change | | :--- | :--- | :--- | :--- | | Revenue | $32.5 | $30.0 | +8.2% | | Direct Expenses | $12.1 | $11.8 | +2.8% | | SG&A Expenses | $8.7 | $7.7 | +13.4% | Nine Months 2019 vs. 2018 Performance (in millions) | Metric | Nine Months 2019 | Nine Months 2018 | Change | | :--- | :--- | :--- | :--- | | Revenue | $95.4 | $89.0 | +7.1% | | Direct Expenses | $35.3 | $35.7 | -1.2% | | SG&A Expenses | $24.7 | $23.5 | +5.3% | - Direct expenses as a percentage of revenue decreased from **40.1%** to **37.0%** for the nine-month period, mainly due to lower variable costs like postage, printing, and paper from increased use of digital survey methodologies[105](index=105&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's liquidity position, including cash, credit lines, and cash flow from operations, and discusses changes in shareholders' equity - Principal sources of liquidity as of September 30, 2019, included **$8.4 million** of cash and cash equivalents, a **$15.0 million** unused line of credit, and a **$15.0 million** delayed draw term note available for acquisitions or stock repurchases[111](index=111&type=chunk) Cash Flow Summary (Nine months ended Sep 30, in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Provided by operating activities | $28,974 | $25,936 | | Used in investing activities | ($3,429) | ($4,858) | | Used in financing activities | ($30,575) | ($48,193) | - Shareholders' equity increased by **$9.9 million** to **$29.0 million** at September 30, 2019, from **$19.1 million** at December 31, 2018. The increase was primarily driven by net income of **$23.7 million**, partially offset by dividends declared of **$14.2 million**[133](index=133&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes to market risk exposures since the prior Annual Report on Form 10-K - There are no material changes to the disclosures regarding market risk exposures from the Annual Report on Form 10-K for the year ended December 31, 2018[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with new internal controls implemented for lease accounting - Management concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[138](index=138&type=chunk) - The company implemented new internal controls related to the adoption of the new lease standard (Topic 842), but no other changes materially affected, or are reasonably likely to materially affect, internal control over financial reporting[139](index=139&type=chunk)[140](index=140&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, not expected to materially impact financial statements - The company is involved in routine claims and litigation but does not believe the resolution will have a **materially adverse effect** on its consolidated financial statements[141](index=141&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have been reported since the prior Annual Report on Form 10-K - There have been no material changes to the company's risk factors as set forth in the Annual Report on Form 10-K for the year ended December 31, 2018[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock was repurchased during Q3 2019, with 280,491 shares remaining available under the repurchase program - No Common Stock was repurchased during the three-month period ended September 30, 2019[143](index=143&type=chunk) - The remaining number of shares of Common Stock that could be purchased under the stock repurchase authorization was **280,491** as of September 30, 2019[143](index=143&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including XBRL financial statements and officer certifications - The exhibits filed with the report include financial statements in XBRL format and certifications from the CEO and CFO[149](index=149&type=chunk)[151](index=151&type=chunk)

National Research Corporation (NASDAQ:NRC) Q2 2019 Results Conference Call August 7, 2019 11:00 AM ET Company Participants Michael Hays - CEO Kevin Karas - CFO Conference Call Participants Frank Sparacino - First Analysis Operator Greetings and welcome to the Second Quarter 2019 Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a question and answer session. [Operator Instructions] As a reminder, this conference is being recorded, Wednesday, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-35929 National Research Corporation (Exact name of Registrant as specified in its charter) (State or ...