National Research (NRC) 12 Feb 202019 Q4 Earnings call transcript

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 conference is being recorded Wednesday, February 12, 2020.

I'd now like to turn it over to Mr. Officer. Executive Chief Hays, Michael Please go sir. ahead

of provide me Thank XXXX asked Jackson, fourth Keith, is our Hays, and Vice to and Linda Finance our today call. Kevin welcome Corporation's Research Mike Karas. joining the remarks CEO on company's in National President to the the business. quarter Stacy, Steve prepared the some name call is everyone performance My you on standing and for of conference year-end also I've President

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

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

could see further affect Exchange For facts future Securities company's Commission. with the results, and information the company's the filings about the that please

turn With Mike. to you I'll it back that,

welcome And Linda some everybody. will performance us Steve President will Jackson, again, provide and some provide Linda. Thanks financial Steve? data. then NRC's opening remarks Today

Mike. Thanks

more to favorable new and last old, in press As have $XXX the customers, on from the to of than you with the support million now Voice may residing noticed Customer we market NRC's of the release, see we industry-leading night's contract for continue solution. a response platform. year value Thanks finished

performance to and in transformation. health discuss systems to how Allina Partners value Linda to QX significant accelerate financial continues shares prepared immediate leading we'll remarks of the and NRC with Health, others are XXXX reason HealthCare, ability capabilities regarding why us as proven turned generate business unique our evolve. Beaumont Health to After their NRC's her such and

the now call Linda. to I'll that, turn With back

up for a million, sales of net clients at ended the the XX% of XX% prior quarter We Thank annual system up end the care of of fourth fourth in $XX.X last the same the $XXX.X you, Steve. at new quarter our same Total period XX% agreements XXXX, of contract representing XXXX multiple year. Health growth record value at represented had time million at for over XX% client the base XXXX, the solutions XXXX. end with year. over

Fourth total digital fourth total over X% to in of XXXX. contract quarter Voice of Customer the increased increase the XXXX quarter XXXX. an Customer of to our million, compared XX% solutions quarter $XXX.X fourth to million the revenue Total revenue million, to Voice for increased the for our quarter at Fourth of quarter the the of of of solutions revenue of platform $XX.X revenue, value XX% platform $XX.X compared end XXXX. digital fourth was

qualification claimed through tax for to and We incentive non-qualified be investment tax received equivalent notice income and of sales certain in credits we well earn that tax credits in met allows employee qualified This Nebraska the December as full-time and as refunds of Advantage Act requirements investment the LB XXX that XXXX ended XXXX. credit tax sales meeting year get direct us act Nebraska employment employment thresholds by on tax, can property. property, on

or approximately for XX% for fourth XXXX, which adjustments we December, revenue XXXX for income operating the $X.X operating million. million XX, In period same the the reduced earned or million, of cumulative revenue and $X.X year December compared was last recorded of quarter for $XX by ending year. direct refunds to Consolidated XX% credits expenses

X% in X% compared $XX.X to year. quarter for compared million the for Direct to XXXX a costs. million XX% expenses XXXX Direct Total XXXX. XXXX. compared expenses the primarily XX% in in XXXX, operating to same variable period to fourth revenue quarter expenses decreased in prior of Direct due a expenses quarter reduction fourth for $XX.X fourth the were as of $XX.X by to million decreased the the decreased percent

are the primarily the of Voice the revenue revenue, percent the solutions mix compared shift decreased to decreased our to large tax slightly, XX% expenses of continued Variable revenue. a state costs of from quarter direct XXXX. due legacy due part in a to quarter of Fixed XX% Customer lower Variable as in to platform XXXX fourth to expenses for incentives. in fourth

and the for to for period XXXX revenue due a sales quarter general to and the to certain to when increased state expenses for probable was compared collected in been primarily to expenses were quarter became same the fourth aware tax liability quarter XXXX XXXX XX% in from that compared have was the XXXX, administrative tax years. we administrative taxes $X.X and XX% accrual expenses recorded both able $X.X for sales million be due customers previous XXXX. general that the sales administrative to and fourth fourth general increased XXXX. revenue Selling, of estimated in million Selling, should and that of Selling,

of compared changes expense million quarter on quarter intercompany decreased in rate. net revaluation in the primarily expense net in XXXX primarily $XXX,XXX of to exchange in due of XXXX expense the fourth was to due Other fourth XXXX, to in to other income $X.X other to fourth income due the foreign increase period amortization $X.X XXXX. for same tax quarter transactions This state and of the and $XXX,XXX to other to the changed for compared expense Depreciation incentives. million

income of million and fourth for XX% the The and exercise benefits million fourth company's higher in quarter income million fourth and of decreased Net paid for to to to rate state period. for $X.X $X.X XXXX XXXX from The due primarily options tax shareholders tax compared XXXX expense was the the XX% was nonvested dividends XXXX. was taxes of in compared XXXX, $X.X $X.X compared projected period same to in the XXXX. quarter million the the for effective tax quarter XXXX in to

back it I'll Steve. to that, With turn

Linda. you, Thank

of this an relationship-centric a the look new a health model start they Paramount growing of we to XXXX most, care. leaders organization to understand and system they or prospective with better be find confronted encounter-based today's residents, employees decade, physicians. serve, transition many and plan what respond consumers, of change we patients, employers, was matters the even members, to complexity, to as health constituents As need from of

Voice platform all journey. NRC's partners our the consumer and with at their of with strategy necessary to the points Customer advance along provides agility touch flexibility

solutions define For brand's purpose-built factors illuminating key the marketers, a our promise. are that

at health rebrand For in high Health confidence be organization high successful and insights a united propelled tech and to Virtua the example, both to provided Jersey, New touch. community to care NRC's the

optimization. officers, tools on care's are For focused gains front share improving of today's in digital health accessibility search expanding engine door, and driving NRC's market

Orlando Last year, with new every breakthrough Health patient physicians. being our performance booked appointments nine days customer reported for

As a program. star result of NRC's ratings

signals. touch scanned to dimensions and as for experience are the language, better health based with ethnicity negative point Coupled our they human is each officers, of that evolve micro such their systems services, able understanding positive upon now being For NRCs age, race, and serve. segments

right health offering they XX the more in full has further year. right in a At tailored related Wayne be can in insight Fort question Parkview of this time. for micro Customer gained calendar leaders, the previously over to population than And Indiana, days, at segmentation Voice the ask NRC's Health

in that for Houston by XXXX, Our Methodist improved And and reported patients readmission. at-risk to be preventable action. susceptible savings labor clients outcomes able take being scan may immediate significant to

care will Customer today's Last, Voice platform time-pressed decade or next with can received. source of experience that the NRC's for delivered assured our knowing dealing rest executives, where to truth, single provide of is ahead changes, they the regardless in a

Operator, for this to remarks. now our the open will questions. completes ask prepared I you line

Session Question-and-Answer

for Keith. thank everybody's you, excellent Steve did questions. job in like Thank today. Obviously Linda an in and And I'd everyone to listening answering

So forward next up-to-date to our with we'll bringing look performance quarter. you

again. you, Thank

participation. That you today. does you lines. now call thank your the disconnect your for We can And conclude conference for