National Research (NRC) 15 Feb 232022 Q4 Earnings call transcript

Hello, and welcome to the National Research Corporation Fourth Quarter 2022 Earnings Call. My name is Elliot and I'll be coordinating your call today. [Operator Instructions].

I would now like to hand over to Kevin Karas. The floor is yours. ahead. go Please

today and fourth Elliot, Karas, to Research the National company's President our Thank Finance. of earnings welcome call. XXXX call on me quarter And Kevin Linda My Corporation's Stacy, CFO. Vice you, joining everyone is name the is

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

Kevin. you, Thank

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

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

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

everyone. And Linda. Thanks, welcome again,

XX time For understanding as to and time, in their person consistently not ratings Health but point patient-centered including organizations the in years, that has humanized ongoing Health's they know insights, to to Health transformative each NRC healthcare almost systems been serve, reviews. get support leading individual. feedback, healthcare care, and commitment led of and with solutions, NRC understanding NRC each committed industry innovative has loyalty. and market as builds trust online relationship real-time insight, Over unique an helps human and

human the position the industry Health on in first the This focus for NRC Last XXXX that affirms Experience received Best recognition and week, was approach. healthcare leadership it announced transforming with Improvement. Patient KLAS our Award

open to financial over to questions. performance call the and to Linda turn back review me our up then Let

you, Kevin. Thank

Revenue in net the of Canadian phase decreased offset revenue and offerings of to resulting fourth the growth other by partially operations slightly primarily X% Revenue location. XXXX the core a of closure compared XXXX in due for our year-over-year offerings for and X% year. over fourth Canadian non-core quarter was quarter to the scheduled out XXXX, increase the our prior

also some increases impacted and was and allocation for X% by of XXXX. as Our innovation, to towards by income operating well XXXX the due solution Operating fourth in and programs. talent, decreased pressure automation expense process developing income respectively quarter and X% marketing as intentional retaining resource inflationary full-year

quarter other Fourth currency primarily foreign a earnings of translation from subsidiary. cumulative to expense substantial Canadian adjustment into increased our of million $X.X due liquidation in the our investment reclassification

the quarter in XXXX Effective translation cumulative tax adjustment. to rate compared non-deductible the XX% in was due primarily of fourth to XX% XXXX,

$XXX.X with million TRCV. in year the ended We

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

innovation with of and capital. The $XX.X capital $XX.X established million for investments, of internal activity $XX December share priorities purposes XX, million in for funded totaling to for repurchases. the company addition dividend both million a shareholders growth for has Board allocation quarterly XXXX, funding payments to M&A company's growth use and and innovation The of and as year-end including projects Directors preferred

I'll comments call back for now morning. Kevin. That concludes my to this turn the

Linda. you, Thank

This completes remarks. our prepared

to now call you So the that I any questions. ask Elliot, open would

you. Thank [Operator Instructions].

Peaks D'Angelo today question comes from Alpine first Our George from Capital.

Your line is open.

broadly Hi, last the across on was morning, the of quarter? client could I uptake good and comment in Kevin guys you base hoping Linda. your understanding human

Yes. George. morning, Good

of the the to the release, year. second We As we've additions half we increase recent press in adoption. client new mentioned had during continued

four added of two we specifically, of clients new those quarter new fourth organizations, customers. existing and conversion two were During were

existing about adopted and cumulatively client program, a the two-thirds from conversion we've point, at those and XX of So were additions other are over have reached the third year-end, at organizations this new clients.

X%, of driving can Thanks. a Okay. increase and that? And clients? in a cross-sells of you core little of new bit breakdown What's pricing of give the terms on offering

majority, all and mentioned, lower combination this three. total new our of declined a due as client It's growth recurring we sales. year to The rate contract has value

growth increase within majority generally, will was the base. X.X% price is I to XXXX. X% And year. between the solutions somewhere the impact our and what per core client of upsells that to to attributed X% and on existing know average the don't rate So increase our for average, cross-sells price But exact

So compromised X%. the that's what

for comment guys expectations Okay. on capital Thanks. And XXXX? can you expenditure

prices a in allocated XXXX continue, to We but our repurchases. significant it will increase. amount That as share share Sure. down slowed

less been in of the so one the So, significantly there's priorities far from activity, still that's although QX, Board.

always The is priorities Board but for dividend capital one quarter-to-quarter a the allocation. decision, also that is payment of

investment terms XXXX expenditures, see of more and and of our innovation progressed corporate that we'll in activity headquarters has in probably really because increase, number renovation capital renovation expenses other we'll XXXX will of then that in in And in started increased the and for in have work back Lincoln. XXXX. That partly the building

will increase capital for expenditures this that year. So our

[Operator Instructions].

I'll This any final Q&A. concludes our remarks. for back to Kevin now hand

for again we you quarter. sharing look next attending today's to call, again, and everyone, forward Thank our results

now We for to like Today's thank concluded. your you has participation. call

You may now disconnect lines. your