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 ...

Financial Data and Key Metrics Changes - Total contract value at the end of Q1 2019 was $130.1 million, representing a 7% growth year-over-year [5] - Q1 2019 revenue was $31.5 million, an increase of 1.5% compared to Q1 2018 [5] - Net income for Q1 2019 was $8.2 million, up from $7.3 million in Q1 2018 [9] Business Line Data and Key Metrics Changes - Total contract value for the digital Voice of the Customer platform solutions increased to $79.1 million from $59.4 million year-over-year [5] - Revenue from the digital Voice of the Customer platform solutions accounted for 58% of total revenue in Q1 2019, up from 45% in Q1 2018 [5] Market Data and Key Metrics Changes - Healthcare systems with agreements for multiple solutions represented 25% of the client base at the end of Q1 2019, up from 23% the previous year [5] - The 650+ core client organizations accounted for $101 million or 78% of the total contract value, showing significant growth from $53 million in 2015 [12] Company Strategy and Development Direction - The company is focusing on transitioning from legacy solutions to the Voice of the Customer platform, which is gaining traction in the market [3][11] - The strategy includes reallocating healthcare system spending towards higher value offerings, which is attracting attention from C-suite executives [3] Management's Comments on Operating Environment and Future Outlook - Management noted that the underlying double-digit growth among core clients has been masked during the transition, but growth rates will become more visible in reported revenue [13] - The company anticipates that a small percentage of clients (around 10%) may remain with legacy systems, but they will continue to provide value to these clients [16] Other Important Information - Consolidated operating income for Q1 2019 was $10.7 million, or 34% of revenue, compared to $9 million or 29% of revenue in the same period last year [6] - Direct expenses decreased by 10% to $11.7 million, contributing to significant cash flow for reinvestment [7] Q&A Session Summary Question: What percentage of legacy clients will ultimately convert? - Management indicated that approximately 10% of the business may remain with paper and pencil methods, but they will continue to offer value to these clients [16] Question: What is driving the 20% CAGR among core clients? - The growth is attributed to increased contract value from converting legacy systems to digital platforms, as well as significant increases in market insights and other service offerings [18]

```markdown [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q1 2019, detailing balance sheets, income, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2019 | December 31, 2018 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $2,641 | $12,991 | ($10,350) | | Total current assets | $22,873 | $28,410 | ($5,537) | | Total assets | $104,571 | $108,032 | ($3,461) | | Total current liabilities | $39,238 | $47,109 | ($7,871) | | Total liabilities | $81,832 | $88,949 | ($7,117) | | Total shareholders' equity | $22,739 | $19,083 | $3,656 | - The company adopted the new lease standard (Topic 842) in Q1 2019, resulting in the recognition of **$2.14 million** in Operating lease right-of-use assets on the balance sheet[16](index=16&type=chunk)[49](index=49&type=chunk) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (in thousands, except per share data) | Metric | Q1 2019 | Q1 2018 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $31,480 | $31,017 | +1.5% | | Operating income | $10,704 | $8,958 | +19.5% | | Net income | $8,196 | $7,306 | +12.2% | | Diluted EPS (Common) | $0.32 | $0.17 | +88.2% | - The significant increase in Diluted EPS for Common stock is partly due to the April 2018 recapitalization, which eliminated the Class B common stock and its separate EPS calculation[18](index=18&type=chunk)[58](index=58&type=chunk)[81](index=81&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Q1 2019 | Q1 2018 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $7,300 | $8,228 | ($928) | | Net cash used in investing activities | ($1,134) | ($1,298) | $164 | | Net cash used in financing activities | ($16,820) | ($5,851) | ($10,969) | | Change in cash and cash equivalents | ($10,350) | $745 | ($11,095) | | Cash and cash equivalents at end of period | $2,641 | $35,478 | ($32,837) | - The significant increase in cash used for financing activities was driven by a **$17.1 million** payment of dividends on common stock in Q1 2019, compared to **$4.2 million** in Q1 2018[29](index=29&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company is a leading provider of analytics and insights for healthcare organizations in the U.S. and Canada, operating under the name NRC Health. It aggregates its six operating segments into one reportable segment[31](index=31&type=chunk)[32](index=32&type=chunk) - The majority of revenue is derived from annually renewable subscription-based service agreements, which are recognized ratably over the subscription period. Subscription services accounted for **$27.9 million** of the **$31.5 million** total revenue in Q1 2019[38](index=38&type=chunk)[41](index=41&type=chunk)[59](index=59&type=chunk) - Effective January 1, 2019, the company adopted the new lease accounting standard (Topic 842) using a modified retrospective transition, resulting in the recognition of **$2.3 million** of ROU assets and **$2.4 million** of lease liabilities[48](index=48&type=chunk)[49](index=49&type=chunk) - In April 2018, the company completed a recapitalization, exchanging each Class B share for one Class A share plus **$19.59** in cash. This eliminated the Class B stock and reclassified Class A as the single class of Common Stock[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2019 financial performance, highlighting revenue growth, margin improvement, and liquidity Results of Operations Comparison (as % of Revenue) | Expense Category | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Direct | 37.0% | 41.6% | | Selling, general and administrative | 24.5% | 25.4% | | **Operating income** | **34.0%** | **28.9%** | - Revenue increased by **1.5%** to **$31.5 million** in Q1 2019, primarily due to new customer sales and increased sales to existing clients[96](index=96&type=chunk) - Direct expenses decreased by **9.7%** to **$11.7 million**, mainly due to reduced postage, printing, and paper costs resulting from changes in survey methodologies[97](index=97&type=chunk) - The company had a working capital deficit of **$16.4 million** as of March 31, 2019, which is significantly impacted by large deferred revenue balances (**$18.2 million**)[104](index=104&type=chunk)[105](index=105&type=chunk) - Net cash used in financing activities was **$16.8 million**, primarily for the payment of **$17.1 million** in dividends[112](index=112&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposures were reported compared to the 2018 Annual Report on Form 10-K - There are no material changes to the disclosures regarding the Company's market risk exposures from the 2018 Form 10-K[130](index=130&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with new controls for Topic 842 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[131](index=131&type=chunk) - The company implemented new internal controls and business process changes to properly assess and account for the new lease standard, Topic 842, which was adopted on January 1, 2019[132](index=132&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine claims and litigation, with liabilities recognized when probable and estimable - The Company is involved in certain claims and litigation from time to time in the normal course of business, but no specific material proceedings are disclosed[135](index=135&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported compared to the 2018 Annual Report on Form 10-K - There have been no material changes to the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2018[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details of the stock repurchase program, with no repurchases in Q1 2019 and remaining authorized shares - No Common Stock was repurchased during the three-month period ended March 31, 2019[137](index=137&type=chunk) - As of March 31, 2019, the remaining number of shares of Common Stock that could be purchased under the stock repurchase authorization was **280,491 shares**[137](index=137&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) Index of exhibits filed with the 10-Q, including CEO/CFO certifications and XBRL financial statements - The exhibits filed with the report include CEO and CFO certifications (31.1, 31.2), a written statement pursuant to 18 U.S.C. Section 1350 (32), and financial statements in XBRL format (101)[141](index=141&type=chunk) [Signatures](index=28&type=section&id=Signatures) - The report was duly signed and authorized on May 8, 2019, by Michael D. Hays, Chief Executive Officer, and Kevin R. Karas, Senior Vice President Finance, Treasurer, Secretary and Chief Financial Officer[143](index=143&type=chunk)[145](index=145&type=chunk) ```

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission file number: 001-35929 National Research Corporation (Exact name of registrant as specified in its charter) Wisconsin (State or other jurisdiction of incorporation or organization) 1245 Q Street Lincoln, Nebraska (Address of principal executive offices) Registrant's telephone number, including area code: (402) 475-2525 Securities registered pursuant to Section 12(b) of the Act: Securities registere ...

National Research Corporation (NASDAQ:NRC) Q4 2018 Earnings Conference Call February 13, 2019 11:00 AM ET Company Participants Michael Hays ??? Chief Executive Officer Kevin Karas ??? Chief Financial Officer Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. Welcome to the National Research Corporation Fourth Quarter and Year-End 2018 Conference Call. [Operator Instructions] As a reminder, this call is being recorded, Wednesday, February 13, 2019. I would now like to turn ...