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
FIRST QUARTER RESULTS
Company Reports 129% Growth in Net New Sales
LINCOLN, Nebraska (May 3, 2005) — National Research Corporation (NASDAQ/NM:NRCI), a leader in healthcare performance measurement, today announced results for the first quarter ended March 31, 2005.
Commenting on first quarter results, Michael D. Hays, chief executive officer of National Research Corporation, said, “Revenues for the first quarter were in line with our expectations, while earnings per share were slightly ahead of our projections. However, the most rewarding performance was the 129% growth in net new contracts signed during the quarter. The momentum of the national standard is starting to take hold.”
Revenues for the quarter ended March 31, 2005, were $6.6 million compared with revenues of $7.6 million for the same period in 2004. Net income for the quarter ended March 31, 2005, was $748,100 compared with net income of $1.2 million in the prior year period. Earnings per share were $0.10 per basic and diluted share compared with $0.16 per basic and diluted share in the prior year period.
Patrick E. Beans, chief financial officer of National Research Corporation, added, “Our federal government sector revenue base has stabilized, making the balance of the year more predictable. For the second quarter 2005, we now expect earnings per share of $0.12, which represents a 20% growth over the prior year and is in line with our growth objectives for net earnings.”
A listen-only simulcast of National Research Corporation’s first quarter conference call will be available online atwww.earnings.com on May 4, 2005, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately two hours later and continue for 30 days.
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NRCI Announces First Quarter Results
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May 3, 2005
National Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider of ongoing survey-based performance measurement, analysis, tracking and improvement services to the healthcare industry in the United States and Canada. The Company addresses the growing need of healthcare providers and payors to measure the care outcomes, specifically satisfaction and health status, of their patients and/or members. The Company develops 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.
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NRCI Announces First Quarter Results
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May 3, 2005
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2005 | 2004 | |||||||
Revenues | $ | 6,597 | $ | 7,561 | ||||
Operating expenses: | ||||||||
| Direct expenses | 2,750 | 3,298 | ||||||
| Selling, general and administrative | 2,185 | 1,904 | ||||||
| Depreciation and amortization | 424 | 464 | ||||||
Total operating expenses | 5,359 | 5,666 | ||||||
Operating income | 1,238 | 1,895 | ||||||
Other income (expense): | ||||||||
| Interest income | 109 | 82 | ||||||
| Interest expense | (101 | ) | (113 | ) | ||||
| Other, net | (5 | ) | (10 | ) | ||||
Total other income (expense) | 3 | (41 | ) | |||||
Income before income taxes | 1,241 | 1,854 | ||||||
| Provision for income taxes | 493 | 679 | ||||||
Net income | $ | 748 | $ | 1,175 | ||||
Net income per share, basic | $ | 0.10 | $ | 0.16 | ||||
| Net income per share, diluted | $ | 0.10 | $ | 0.16 | ||||
Weighted average shares outstanding: | ||||||||
| Basic | 7,150 | 7,256 | ||||||
| Diluted | 7,202 | 7,353 | ||||||
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NRCI Announces First Quarter Results
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May 3, 2005
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Condensed Balance Sheets
(Dollars in thousands)
| March 31, 2005 | Dec. 31, 2004 | |||||||
|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 5,325 | $ | 3,648 | ||||
| Short-term investments | 15,019 | 15,348 | ||||||
| Accounts receivable, net | 3,638 | 3,392 | ||||||
| Other current assets | 2,424 | 3,066 | ||||||
| Total current assets | 26,406 | 25,454 | ||||||
Net property and equipment | 12,176 | 12,355 | ||||||
| Other, net | 10,126 | 10,145 | ||||||
Total Assets | $ | 48,708 | $ | 47,954 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,185 | $ | 851 | ||||
| Deferred revenue | 4,394 | 4,036 | ||||||
| Accrued compensation | 1,096 | 976 | ||||||
| Notes payable | 159 | 156 | ||||||
| Total current liabilities | 6,834 | 6,019 | ||||||
Noncurrent liabilities | 6,862 | 6,917 | ||||||
Total Liabilities | 13,696 | 12,936 | ||||||
Shareholders' Equity: | ||||||||
| Common stock, $0.001 par value; 20,000,000 shares authorized; | ||||||||
| 7,713,479 and 7,684,006 shares issued, respectively; | ||||||||
| 7,183,368 and 7,174,706 outstanding, respectively | 8 | 8 | ||||||
| Additional paid-in capital | 19,736 | 19,346 | ||||||
| Retained earnings | 20,555 | 20,382 | ||||||
| Unearned compensation | (407 | ) | (182 | ) | ||||
| Accumulated other comprehensive income | 170 | 220 | ||||||
| Treasury stock | (5,050 | ) | (4,756 | ) | ||||
| Total shareholders' equity | 35,012 | 35,018 | ||||||
Total Liabilities and Shareholders' Equity | $ | 48,708 | $ | 47,954 | ||||
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