NRC - Earnings call transcript Q2 2022 | National Research Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, everyone, and welcome to the National Research Corporation’s Second Quarter 2022 Earnings Call. My name is Charlie and I'll be coordinating the call today.

You will have the opportunity to ask your questions at the end of the presentation. [Operator Instructions] I will hand over to your host, Mike Hays, CEO to begin. Mike, please go ahead.

Michael Hays

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

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

Kevin Karas

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

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

Michael Hays

patient's country and that to their the patient is at at unique the each a program and everyone. person. personalized scale. expectations you, XXX system Human integrated enables is clear being health each able The in headline again, for system, which care the Understanding care so XX information healthcare understand to accessible adoption centers And that serving each Health's have teams Novant deliver with for Thank quarter interaction health, for of an first our use that has states fear contracted medical Kevin. Novant welcome, Program, is treated the clinics, four and as

review financial the to call Let me call open then now performance your and Kevin the to our turn back questions. to

Kevin Karas

Mike. you, Thank

recurring both share. the new value our well revenue or on new of clients client base, adding total including as from TRCV. contract quarter million offerings, continues increased within strategy focus existing to increasing growth levers in $XXX.X ended market our Our human with We understanding program, as core organic

as of metric increases contracts recent assuming the periods their measured TRCV downsells, or next no price upsells, revenue renewable projected all quarter for end. the under annual cancellations represents total Our respective renewal most

in XXXX while rate mix over decreased XXXX to time digital impacted second the decline was on as by growth at TRCV certain business ending or The evolve discontinuing non-core strategy focus legacy year. solutions, solutions. we Our in our X% growing our to our core quarter same TRCV continue the prior by

XXXX second June Our June quarter over XX, X% TRCV for quarter rate core growth second growth solution was the XXXX compared XXXX. was prior of the year. increase of Revenue XX, to X%

offerings, impacted offerings core revenue due upcoming to decreases our revenue office our remained including decreased later negatively our was of in growth in growth our the enclosure from While from year. consolidated Canadian non-core strong, revenue this Canadian

period Second X% compared XXXX, quarter the same towards programs. operating allocated initiatives, associate marketing declined by more empowerment we benefits, in to resources new and income as innovation

$X.X salary, costs quarter due million to XXXX. also automation. effective second to million income operating XXXX increased of for to Our to XXXX direct tax expenses our and second same $X.X compared quarter for for service clients period of XX%. Net in and was support was both in and The the quarter rate XXXX workforce also the XXXX contracted second benefit invest

decreased XXXX. six first for six by million the million increased $XX.X in compared income for Net million to of months half the For of to the compared XXXX X% $XX.X to months $XX.X XXXX. XXXX first as $XX.X of revenue first million to

months of company of capital. $X.X with for of including funding The of investments, and first Board preferred as for in innovation use is XXXX. internal Directors growth as M&A activity has capital and established funded projects our allocation innovation Our the million priorities growth both well purposes six

and share for capital is priority quarterly in allocation dividends repurchases. Next

comments for for six months of million the share $X.X dividend I concludes million Mike. now morning. payments quarterly funded to For shareholders this and totaling my will $XX.X to this the first call we repurchases. turn year, back That

Michael Hays

that remarks. Actually of Kevin. prepared completes you, our Thank all

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

Operator

Of John, course. our from line [Operator Now open. Instructions] Counsel. your Willis first now is of question John comes Lewis Investment

John Lewis

curious coming where increases Good future with thinking I any I will and quarter on potentially into the appreciate kind kind program just were new your of the little in growth and expenses us was a expenses? of, Can operating and it. revenue of down of give offset expenses those this in those with morning. kind you out relativity bit. margin the quarter

Michael Hays

John, for Yes, thanks question. the

look continue. expense at we of have first the of ahead that and look we look as -- So will increases we combination a half the year,

levels of As travel of we the half same TGI would our will and talking costs we COVID in-person, level our be those we're to year. and higher associates, entertainment the this in getting initiatives that innovation whether to back of out of sort continue about of be growth to discretionary or At of I for the on Conferences some come those the time, workforce the automation, related costs say, second our decrease spending some and year. expect for it

would of nominal a as improvement we margin we and operating lower go through that equal, expect the of to rest some being see everything year. the level So, expenses of because

John Lewis

guys somewhat of in you the the perspective Customer of that part Understood. the the with going in, what fall from I'm about, does program of Voice I increase the Understanding about in that. huge kind I And came Voice from thinking of back, Customer margins that well, put Program, the a Human When program? was think kind margins a that guess of

Michael Hays

feedback digitization as gross essentially been all of we rolled saw margin, have almost been than they We to. That digital. It has already occur runway Understanding the necessarily increase Human will margins of expansion our expanded legacy what any what into Program does business from actually. did we significant have that's a the tapped. more not our methods, and in given

we different contract buying are increasing bundle Program. all the meaning one actually the However, the the to Understanding that benefits offer, from benefit Program that of so Human they their of value, entire of Human Understanding of clients adopted services and as the that are is products

the revenue margins makes experienced the significant at So the to in sense. that increase we've of same we ought if feedback, digitization see that total a through

don't I brought increase Program revenue into in from margins So Human same, but if maybe books gain see we in Understanding leverage ability the just elevated increase the at fundamental should revenue. there's that the be some the increasing, slightly margins, on

John Lewis

commentary. Understood, thank much the so for you

Operator

Thank you, John.

line comes D'Angelo is from Alpine George, Our George open. next now Peaks question Capital. your from

George D'Angelo

Hey guys.

on and sure a if well was new financially Understanding customer then whatever functional versus was Novant I'm as you can Human describe Just both you the question, client? an know, this differences customer or not of to before follow with up that a perspective as Health John's the from existing Understanding, happening the Human versus,

Michael Hays

longstanding been customer speaks of ours, program has Novant why adopted perhaps the which they so quickly. Sure. a

as client We that delivery. additional team that it not have that on workflow, such the each products Program into Human We're really financial quite information not a purchased. providing care portfolio our can And a service. the had history they distributes with in in client information historically but had terms disclosing purchased were the information of them that at economics so basis, we by access their Understanding we of care the and from took Novant point each patient that member collect the

the that information revenue but So and of of Understanding provided Human expanded it's with it caregivers more which increased by client their buying our relationship value a within Program, the to that current the increased their balance NRC, to was it's Novant overlay product system. to

George D'Angelo

you. Got

Human likes sounds made like Understanding that sense things? out it of it an that there for new reason just besides a on Novant try they or on specifically, is a fact been the terms them In business, organization based jump longstanding early that to customer to their have was more

Michael Hays

that adopting that new surprise traditional, pretty organization us. of readiness in The is things necessarily didn't so

unfolding the And mission, and unique. I been focused they've systems think at is that being as to most driver other is professed And that's that long organization but as healthcare person point is really the reason ones never treating and as other quite delivered. at personalize that treat the underlying mission Novant, very able is healthcare Board always and of each frankly have the to Novant’s their patient Novant on of that is scale. a unique the care are the tipping person each that perform

with impact in driver had So no of we the consolidating mission in their clearly fit and it. cycle. or doubt That the condensing decision this enable helped

to So to wanted long business. way say drive a it their customer purchase more happy purpose of the that was to

George D'Angelo

the sales? able but past, have net quarterly That's be some to color new you know would you I this disclosed great. on in guys give

Michael Hays

up next us sure in that have moment, call add can don't we We front or right but at follow that to our the notes. of

George D'Angelo

changes that been great. any be would updates the in on sales and provide that could Okay, you that force making And area? you've

Michael Hays

in controllable clearly wide out at meetings expanding. different little talk so are and gate, is about a our We're It's market's on it have or ability back force my getting new upon opinion, want slow Sales the the meetings do markets post-COVID. desire and to to to The of or with nothing hesitancy it's open, side. services. really

level out we're of back activity, think of I to gate slow activities. the and level of previous sales accelerating

as moving aggressively we that we're front speak. on So

George D'Angelo

be Got is you positioned changes think you. you guys And, there at or that more you incentives do still this might that force, for point and sales have correctly the that making?

Michael Hays

right sales associate But out and you based course I’m and your yet. a don't well. serious point ask not it to incentives more have really sure, fashion individual of real has on have that any team XX we worked we

in gone same deal, days everybody's takes really a the individual So one really the are closes Rainmaker direction rowing a and it where village.

or incentive wish had team think I individual with only, our if so And performance than success empowering individual you had incentives is it program historically only. the we greater team actually across based

George D'Angelo

Okay. the That's can did you and that a just quarter the helpful. that forward? you and quite kind of saw share And about how repurchases Board repurchases, about share authorized think buyback of I you talk going and last then bit on

Michael Hays

philosophy neutralize market We simple. grants. quite the dilute never little very several repurchased was that impact any and compensation, a routinely the use felt grant from the equity And and it's price just a view for not of market grants been always high, leadership should as to or into that we frankly. And because those years, purchased shareholders. longstanding we Yes, went equity it's enough in current we part

my back to trying opinion, low, is price our equity by we're the in in that created neutralize market the historical grants. quite dilution Now

in to what stock. grants the message to should back shouldn't or the So the leadership. not is back heck any we're know not buy for on shareholders buying minimizing as really in It's a or the be. purposeful equity against real market of impacted dilution of neutralizing to current We're the market price result stock

George D'Angelo

the Board just is where still moving today Got forward? out you. buybacks, to the trying about that comfortable about that with And is just stock or thinking think going price of something with, and company is forward modeling the the

Michael Hays

authorized, the million board shares. We or authorized X.X

left X.X X Okay. million right? the Kevin, I left. that think is million is of we're out

So roughly the X of the X.X we've will points XXX,XXX. repurchased million to at another be appropriate whatever price we be. think repurchased There's

that wouldn't period take of over will any quarter, period an anything for through Given trading, reauthorization volume hopefully of elongated magical get so look time, we'll some the years. but I of that over particular

George D'Angelo

Got a you. guys. call. lot, right, appreciate I thanks the All

Michael Hays

you. Thank

Operator

questions. Thank you, we have further this Instructions] George. time [Operator At no

So hand closing Hays Mike for back I'll remarks. over any to

Michael Hays

you. And I of the thank Kevin updates again Program you the Human today. Understanding and forward Charlie. rollout your quarter. to everyone on next thank you, time Again, for providing Thank look

Operator

Thank you joining for call. today's

your disconnect lines. You now may

National Research (NRC) 6 Aug 222022 Q2 Earnings call transcript