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Revenue: Q4 2023 revenue slightly decreased to $38,001 from $38,144 in Q4 2022.
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Net Income: Increased to $8,858 in Q4 2023 from $6,641 in Q4 2022.
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Earnings Per Share (EPS): Diluted EPS rose to $0.36 in Q4 2023 compared to $0.27 in Q4 2022.
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Dividend: Declared a quarterly cash dividend of $0.12 per share payable on April 15, 2024.
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Share Repurchases: $55 million returned to stockholders in 2023 through dividends and stock repurchases, with an additional $15 million in stock repurchased in January 2024.
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Return on Equity: Improved to 51% in 2023 from 40% in 2022.
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Debt Position: $30 million of net debt with $30 million available on its revolving line of credit and $56 million on its delayed draw term facility as of December 31, 2023.
On February 13, 2024, National Research Corp (NASDAQ:NRC) released its 8-K filing, announcing its financial results for the fourth quarter and full year of 2023. National Research Corp, a leader in healthcare analytics and insights, reported a slight decrease in quarterly revenue from the same period last year, while net income and earnings per share showed improvement. The company’s CEO, Michael Hays, expressed satisfaction with the growth in new sales and operating margin, highlighting the company’s focus on client needs and the delivery of industry-leading solutions.
Performance and Strategic Focus
According to CEO Michael Hays, the company’s Net Promoter Score reached an all-time high of 75, reflecting strong customer loyalty and satisfaction. Hays also emphasized the company’s strategic focus on expanding its executive team and growth plan, with a particular emphasis on AI-enabled solutions to enhance efficiency and customer value.
Chief Financial Officer Kevin Karas, who has announced his retirement effective March 31, 2024, noted the company’s financial achievements, including four consecutive quarters of increased diluted earnings per share, disciplined cost control, and shareholder value through dividends and share repurchases. Linda Stacy will be promoted to Principal Accounting Officer following Karas’ retirement.
Financial Highlights and Capital Allocation
The company’s balance sheet remains strong, with a well-positioned capital structure to support growth and innovation initiatives. The Board of Directors has declared a quarterly cash dividend, reinforcing the company’s commitment to shareholder returns. The company also continues to focus on revenue growth and margin expansion.
National Research Corp operates primarily in the United States and Canada, with the majority of its revenue derived from the U.S. market. The company’s solutions are critical for healthcare providers and organizations seeking to improve patient and employee experiences, making its financial performance particularly relevant in the context of the evolving healthcare industry.
“We believe we are strongly positioned to expand Human Understanding across the experience lifecycle to recognize and respond to individuals as consumers, patients, and caregivers. In fulfilling our mission, we believe we are positioned to increase share across historical and expanded markets while creating more opportunity for our associates and value for our stockholders.” – CEO Michael Hays
Analysis of Financial Statements
The income statement for the fourth quarter shows a modest decrease in revenue year-over-year, with a notable increase in net income and earnings per share. The balance sheet reflects a solid financial position, with sufficient liquidity and manageable debt levels. The company’s strategy of returning capital to shareholders is evidenced by its robust return on equity and ongoing share repurchase program.
Overall, National Research Corp’s financial results demonstrate a company that is effectively managing its resources while investing in growth and innovation. The transition in the CFO role is a significant event, but the company appears to have a succession plan in place to ensure continuity in its financial leadership.
For a more detailed analysis and to stay updated on National Research Corp’s progress, visit GuruFocus.com for comprehensive financial data and expert commentary.
Explore the complete 8-K earnings release (here) from National Research Corp for further details.
This article first appeared on GuruFocus.
