NRC - Earnings call transcript Q1 2019 | National Research Corporation

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Operator

Greetings and welcome to the First Quarter 2019 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Wednesday, May 8, 2019. I would now like to turn the conference over to Michael Hays, Chief Executive Officer. Please go ahead.

Michael Hays

Thank you, operator and welcome everyone to National Research Corporation’s 2019 first quarter earnings call. Hays, CEO. Mike is name the company’s My And Karas, our on the is Kevin call today Chief joining me Financial Officer.

Before statements as ask to Kevin? we Kevin to review would continue, conditions any that of part forward-looking made maybe today’s call. I related

Kevin Karas

conference outcomes Mike. forward-looking includes safe from These Litigation currently to that differ This the could cause forward-looking statements uncertainties anticipated. made the risks materially harbor and XXXX. Thank the that to pursuant statements actual company Private call Act you, Reform related involve of results to are or provisions those Securities of

For that filings Mike. future with company’s about it With further company’s and results, Securities turn information you, Commission. Exchange the could affect to the the that, facts please see I’ll the back

Michael Hays

Contract higher we’ll current offering, Voice market the patient to regarding clients new their platform the system you. value against Kevin, again in digital logo that, Press a of Kevin the Customer legacy back financial is turn remarks his call growth reallocating shares the and with wins After the to value Customer healthcare the the satisfaction add us industry welcome our expanding prepared C-suite more continues, our of which Thanks, is with and displacing footprint. realizing in the evolving. With and performance platform discuss enterprise-wide spend The how everyone. value attention. is uses of quarter, more creating Voice Kevin and platform of I will Ganey

Kevin Karas

$XX.X same base with XX% multiple contract year. XXXX. quarter representing X% represented quarter quarter, first of for to digital the period of the first million, XXXX for value our platform solutions compared Total our at the the of value up the of totaled at first contract to of the Total of over prior year. end solutions agreements $XXX.X the million of client the Healthcare from in increased the Mike. Customer at million end you, $XX.X Thank systems time Voice at last same growth XX% end the

million, over of X.X% First XXXX first revenue of was $XX.X quarter quarter an XXXX. increase the

our Voice solutions increased of of first to total platform First XX% revenue to XXXX. of digital the the in of revenue compared revenue quarter quarter for total XX% Customer

XXXX XX% expense to compared income revenue first the in general same compared expenses of period for quarter to the were of period savings for XXXX. The in Direct of Mike. for comparison options incremental $X.X in compared dividends back up primarily XXXX of SG&A hosting to quarter significant million in million income million Other the XXXX and the $X.X XXXX. shareholders. and decreased from of and decreased the of the income driven of expense legacy by associated increase increased net for part decreased quarter as to result first and offset X interest in in been in additional reduction million expense in shareholders to will variable first was $XX.X the years year. rate accounting the in This intercompany percentage of XXXX. tax for recapitalization revenue to in savings due other to and Net XXXX, year. for compared XXXX compared April company’s of exercise platform. expense Our technology and the I with The Selling, an significant, $X.X changed non-vested consolidated increased XXXX operating were to to primarily of million a for cash The exchange first XXXX. XX% and Voice in in the of from quarter to of new revenue of revenue to for primarily quarter quarter the in XX% of first solutions expense $X,XXX a by transactions. of income same prior quarter loan in XXXX. quarter expenses the with continued or in first million recapitalization revenue X.X% was expenses of and XXXX. savings of for million software changes as This amortization effective variable cost net by on and expenses the XXXX. or as compared rate of first in driven that expenses from Total partially quarter is expenses the was compared rate over period to for business solutions. of With in $XX.X by quarter $XX.X the to the XX% first XXXX returns and $X.X same for $X.X platform $XXX,XXX effective in expense in increased in decreased administrative of the product in Selling, in reinvestment XX% increased the XXXX. quarter direct the XXXX provided from first the in percent the that, XXXX. decreasing general flow quarter of originated revaluation first $X XX% benefits tax quarter of in XXXX. a the incurred call expenses Customer from increased million term XXXX effective X% revenue legal XX% were the for quarter to XXXX of the nondeductible due The XXXX first XXXX large to XX% the paid the decrease costs first to the million in XXXX for XX% first of the in mix $X.X XX% foreign was Direct XXXX shift million of tax quarter first to expenses rate in operating Direct and have revenue of to Depreciation XXXX. is income administrative the XX% These due million as same was investments first last past to compared of change decreased by period both expense XXXX our other a expenses first to have to and our $XX.X the quarter of expenses. turn for

Michael Hays

you, Thank Kevin.

plus the Voice our fact. growth it Customer value. by X $XX revenue we group hard organizations the XXXX, highlight and Customer of revenue. of in business of the $XXX value provide years million now offerings. accounts client Today, $XXX makes contract half for top an me accounted million of Voice the revenue. account of comprehend of As and track contract XX% Customer Voice value. NRC or platform visibility, said, platform Kevin in line has reported, reported interesting today’s to Health’s consolidated That our over this of million the total the the in for more XXX The understand for To transformation fully let year end solution been At driven among contract platform’s double just clients core expanding

this of of have over compounded XXX% some growth digitize of within these yet this clients contract since rates is apparent, upside do, some clients group’s annual value meaning XXX recent, we XX% have to XXX While group current XX/XX/XXXX. more spend, fully longstanding,

more been clients And core underlying line masked. the the have these of we double-digit business platform. past time from divesting completes we visible have experience transition, Customer legacy transitioned or prepared consolidated the years deemphasizing at Voice through has This will spend and same As X growth become among to select rates revenue. The the our we top work by over reported so the as products, converted remarks. growth our

So I questions, to to call ask would now operator, please. the open

Operator

Thank with with from first you. [Operator Certainly. Sparacino your Frank Please of question First line Our question. proceed Analysis. Instructions] the comes

Frank Sparacino

I mean to guys. all clients I you ultimately you that at just legacy hand them, ultimately, But it’s if guess their with do of those some attrition of in some not of all? respect you have Hi, percentage hand I what think their there. will how might do today, assume Maybe force you them convert? you force have the

Michael Hays

that component will fact section this time point suggests time. or Again, digital a convert. base perhaps than found right to business address over convert. and work our Great that our there really hasn’t Mike. client the transformation question. that will least that permitted XX% in an in modeling But minority they be somewhere segment likely, at that just hope More Frank, of even doesn’t paper has this We is are our at of or that time CAHPS-related elongated some be always that will of remain period around pencil. will

are and offer to paper see experience clients pencil cutting We for above those still the ourselves be, will off. and of patient measurement. of over them value organization and just some fact, host partners the still in we to wed They different just whole of and products a duration. don’t perhaps them And

So, adoption we product curve. them laggards the clearly them value of will in perhaps being outside

Frank Sparacino

you XX% the helpful. plus, CAGR deconstruct one that me, you driving That’s growth And a with Sure. the could clients helpful? plus what’s gave XXX XX% follow-up that be for that’s metric would as to respect around core with

Michael Hays

be would to. happy We Sure.

the let’s what visibility. first, gain that this basis will in of So all get so help grounded

to insights, group NRC value some that $XX we did worth have joined those clients care of existence, from brands for clients did and transparency where there in contract transitions. accounted which group ourselves if come million. XXXX in were XXX So market that that in recent is in end area we as were of million now course XXXX to looking of years, clients, experience, the question but some of had the of same generated Health ask of $XXX And year of back

and or core has in the It from up-sell, years plus. Care has contract growth a to it the pencil been would categorize also among through today, So digital increase contract is significant cross-sell last The X value Transitions doubling what increased as not insights, been so interesting. of a value been but converting clients or over our essentially and platform, a paper we market there XXX has legacy only Transparency.

Just Xx transitions. amongst have on insights example, by period, a group has Xx we a that has way growth twofold, spend that X.X care X-year of increased market and experience the roughly on growth Transparency while fold over increased

increased taking an being it’s modules, can So different more Care advantage of settings. But see, within across and Transitions the it also are spend of and platform that enterprise more as the service experience cases such itself. digitized Transparency digital as use you the embedded and that is

up-sells, years. $XX million XX% CAGR new logos obviously last million and the cross-sells over generated $XXX to So has X the

Frank Sparacino

Very Mike. Thank great, helpful. That’s you.

Michael Hays

Thank you.

Operator

the at are [Operator time. will or Please questions further you. I Instructions] presentation remarks. this continue Mr. to there your no Hays, back turn closing with call

Michael Hays

the spending I again. this sharing with forward for our everyone you Thank to next our thank and time Kevin over operator we look during you, the Thank performance earnings morning. you And and quarter next call.

Operator

for and That We does for today. you you that conclude ask please lines. thank your the participation disconnect call your conference

National Research (NRC) 13 May 192019 Q1 Earnings call transcript