1245 "Q" Street
Lincoln, NE 68508
Phone: 402-475-2525
Fax: 402-475-9061
| Contact: | Patrick E. Beans
Chief Financial Officer
402-475-2525 |
NATIONAL RESEARCH CORPORATION ANNOUNCES
RESULTS FOR THE YEAR AND FOURTH QUARTER
LINCOLN, Nebraska (February 8, 2005) — National Research Corporation (NASDAQ/NM:NRCI), a leader in healthcare performance measurement, today announced results for the fourth quarter and year ended December 31, 2004.
Revenues for the year ended December 31, 2004, increased 10.3% to a record $29.7 million compared with revenues of $26.9 million for the same period in 2003. Net income for the year ended December 31, 2004, increased to $4.6 million compared with net income of $4.4 million in the prior year. Earnings per share increased 4.8% to $0.63 per basic and diluted share compared with $0.60 per basic and diluted share in the prior year.
Revenues for the fourth quarter ended December 31, 2004, decreased 4.6% to $6.4 million compared with revenues of $6.7 million for the fourth quarter of 2003. Net income for the fourth quarter of 2004 decreased 26.6% to $921,000, or $0.13 per basic and diluted share, compared with net income of $1.3 million, or $0.17 per basic and diluted share, for the same period in 2003.
Commenting on the results, Michael D. Hays, chief executive officer of National Research Corporation, said, “As previously announced, our fourth quarter 2004 results were affected by continued volatility in the federal government sector of our revenue base. This, along with the Company’s sales expansion expense, will disproportionately impact our first quarter 2005 results as well. As noted in our previous guidance, we now expect first quarter 2005 earnings per share of approximately $0.08.”
Patrick E. Beans, chief financial officer of National Research Corporation, added, “Even with the $0.08 first quarter 2005 earnings per share guidance, we still expect year-over-year growth, primarily as a result of increasing our core business.”
-MORE-
NRCI Announces Fourth Quarter and Year-End Results
Page 2
February 8, 2005
A listen-only simulcast of National Research Corporation’s fourth quarter and year-end conference call will be available online atwww.fulldisclosure.com on February 9, 2005, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately two hours later and continue for 30 days.
National Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider of ongoing survey-based performance measurement, analysis, tracking services and improvement services to the healthcare industry. The Company addresses the growing need of healthcare providers and payors to measure the care outcomes, specifically experience and health status, of their patients and/or members. The Company has been at the forefront of the industry in developing tools that enable healthcare organizations to obtain performance measurement information necessary to improve their business practices.
This press release includes “forward-looking” statements related to the Company that can generally be identified as describing the Company’s future plans, objectives or goals. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For further information about the factors that could affect the Company’s future results, please see the Company’s filings with the Securities and Exchange Commission.
-MORE-
NRCI Announces Fourth Quarter and Year-End Results
Page 3
February 8, 2005
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended
December 31,
| Year Ended
December 31,
|
|---|
| 2004
| 2003
| 2004
| 2003
|
|---|
Revenues | | | $ | 6,430 | | $ | 6,742 | | $ | 29,683 | | $ | 26,922 | |
| Operating expenses: | | |
| Direct expenses | | | | 2,680 | | | 2,749 | | | 12,869 | | | 12,029 | |
| Selling, general and administrative | | | | 1,817 | | | 1,606 | | | 7,394 | | | 5,987 | |
| Depreciation and amortization | | | | 526 | | | 477 | | | 2,018 | | | 1,941 | |
|
| |
| |
| |
| |
Total operating expenses | | | | 5,023 | | | 4,832 | | | 22,281 | | | 19,957 | |
|
| |
| |
| |
| |
Operating income | | | | 1,407 | | | 1,910 | | | 7,402 | | | 6,965 | |
Other income (expense): | | |
| Interest income | | | | 96 | | | 79 | | | 345 | | | 293 | |
| Interest expense | | | | (104 | ) | | (106 | ) | | (459 | ) | | (428 | ) |
| Other, net | | | | 32 | | | 38 | | | (5 | ) | | 85 | |
|
| |
| |
| |
| |
Total other income (expense) | | | | 24 | | | 11 | | | (119 | ) | | (49 | ) |
Income before income taxes | | | | 1,431 | | | 1,921 | | | 7,283 | | | 6,916 | |
| Provision for income taxes | | | | 510 | | | 666 | | | 2,732 | | | 2,532 | |
|
| |
| |
| |
| |
Net income | | | $ | 921 | | $ | 1,255 | | $ | 4,551 | | $ | 4,384 | |
|
| |
| |
| |
| |
Net income per share, basic | | | $ | 0.13 | | $ | 0.17 | | $ | 0.63 | | $ | 0.60 | |
|
| |
| |
| |
| |
| Net income per share, diluted | | | $ | 0.13 | | $ | 0.17 | | $ | 0.63 | | $ | 0.60 | |
|
| |
| |
| |
| |
Weighted average shares outstanding: | | |
| Basic | | | | 7,142 | | | 7,271 | | | 7,181 | | | 7,259 | |
| Diluted | | | | 7,211 | | | 7,314 | | | 7,249 | | | 7,326 | |
-MORE-
NRCI Announces Fourth Quarter and Year-End Results
Page 4
February 8, 2005
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Condensed Balance Sheets
(Dollars in thousands)
| Dec. 31,
2004
| Dec. 31,
2003
|
|---|
| ASSETS | | | | | | | | |
Current Assets: | | |
| Cash and cash equivalents | | | $ | 3,648 | | $ | 3,441 | |
| Short-term investments | | | | 15,348 | | | 12,767 | |
| Accounts receivable, net | | | | 3,392 | | | 5,479 | |
| Other current assets | | | | 3,066 | | | 1,834 | |
|
| |
| |
| Total current assets | | | | 25,454 | | | 23,521 | |
Net property and equipment | | | | 12,355 | | | 12,189 | |
| Other, net | | | | 9,854 | | | 9,963 | |
|
| |
| |
Total Assets | | | $ | 47,663 | | $ | 45,673 | |
|
| |
| |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | |
Current Liabilities: | | |
| Accounts payable and accrued expenses | | | $ | 851 | | $ | 910 | |
| Deferred revenue | | | | 4,036 | | | 4,439 | |
| Accrued compensation | | | | 976 | | | 969 | |
| Notes payable | | | | 156 | | | 142 | |
| Income taxes payable | | | | -- | | | 244 | |
|
| |
| |
| Total current liabilities | | | | 6,019 | | | 6,704 | |
Noncurrent liabilities | | | | 6,917 | | | 6,545 | |
|
| |
| |
Total Liabilities | | | | 12,936 | | | 13,249 | |
|
| |
| |
Shareholders' Equity: | | |
| Common stock, $0.001 par value; 20,000,000 shares authorized; | | |
| 7,684,006 and 7,639,819 shares issued, respectively; | | |
| 7,174,706 and 7,305,819 outstanding, respectively | | | | 8 | | | 8 | |
| Additional paid-in capital | | | | 19,346 | | | 18,875 | |
| Retained earnings | | | | 20,382 | | | 15,832 | |
| Unearned compensation | | | | (182 | ) | | (394 | ) |
| Accumulated other comprehensive income | | | | (71 | ) | | (27 | ) |
| Treasury stock | | | | (4,756 | ) | | (1,870 | ) |
|
| |
| |
| Total shareholders' equity | | | | 34,727 | | | 32,424 | |
|
| |
| |
Total Liabilities and Shareholders' Equity | | | $ | 47,663 | | $ | 45,673 | |
|
| |
| |
-END-
