| Contact: | Patrick E. Beans Chief Financial Officer 402-475-2525 |
NATIONAL RESEARCH CORPORATION ANNOUNCES
FIRST QUARTER 2007 RESULTS
_______________________________________________
Net New Contracts Signed Sets Another Record
LINCOLN, Nebraska (May 1, 2007) — National Research Corporation (NASDAQ:NRCI) today announced results for the first quarter ended March 31, 2007.
| o | Quarterly revenues increased by 29% |
| o | Quarterly net income increased by 31% |
| o | Quarterly earnings per share of $0.23, up 28% |
| o | Quarterly net new contracts reached a record $4.1 million |
Commenting on the first quarter results, Michael D. Hays, chief executive officer of National Research Corporation, said, “I’m pleased with our first quarter performance with revenue, net income and EPS all registering strong growth. We’re also thrilled with our continued sales growth. In fact, the $4.1 million of net new contracts signed in the first quarter is the highest since we started reporting this metric in June 2004, and is 21% greater than the fourth quarter 2006.”
Revenues for the quarter ended March 31, 2007, were $12.2 million, compared to $9.5 million for the same period in 2006, an increase of 29%. Net income for the quarter ended March 31, 2007, was $1.6 million, or $0.23 per basic and diluted share, compared with net income of $1.2 million, or $0.18 per basic and diluted share, in the prior year period.
In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, “The quarter showed good growth in most core businesses and, as anticipated, with the added revenue from TGI, our growth rates surpassed what we would normally expect. Given TGI’s top-line contribution and revenue growth in the other business units, we are seeing greater leverage of certain expense categories, which is expanding our operating income margin.”
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NRCI Announces First Quarter Results
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May 1, 2007
A listen-only simulcast of National Research Corporation’s 2007 first quarter conference call will be available online atwww.earnings.com on May 2, 2007, beginning at 11:00 a.m. Eastern Time. The online replay will follow approximately an hour later and continue for 30 days.
National Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider of performance measurement, improvement services, and governance education to the healthcare industry in the United States and Canada.
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 1, 2007
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2007 | 2006 | |||||||
| Revenues | $ | 12,205 | $ | 9,476 | ||||
| Operating expenses: | ||||||||
| Direct expenses | 5,448 | 4,100 | ||||||
| Selling, general and administrative | 3,400 | 3,006 | ||||||
| Depreciation and amortization | 627 | 470 | ||||||
| Total operating expenses | 9,475 | 7,576 | ||||||
| Operating income | 2,730 | 1,900 | ||||||
Other income (expense): | ||||||||
| Interest income | 14 | 82 | ||||||
| Interest expense | (167 | ) | (10 | ) | ||||
| Other, net | 16 | (14 | ) | |||||
| Total other income (expense) | (137 | ) | 58 | |||||
| Income before income taxes | 2,593 | 1,958 | ||||||
| Provision for income taxes | 999 | 741 | ||||||
| Net income | $ | 1,594 | $ | 1,217 | ||||
| Net income per share, basic | $ | 0.23 | $ | 0.18 | ||||
| Net income per share, diluted | $ | 0.23 | $ | 0.18 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 6,842 | 6,819 | ||||||
| Diluted | 6,964 | 6,918 | ||||||
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NRCI Announces First Quarter Results
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May 1, 2007
NATIONAL RESEARCH CORPORATION
Consolidated Condensed Balance Sheets
(Dollars in thousands)
| Mar. 31, 2007 | Dec. 31, 2006 | |||||||
|---|---|---|---|---|---|---|---|---|
| ASSETS | (Unaudited) | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 1,358 | $ | 876 | ||||
| Short-term investments | 1,028 | 1,110 | ||||||
| Accounts receivable, net | 8,926 | 6,734 | ||||||
| Income taxes recoverable | -- | 898 | ||||||
| Other current assets | 2,620 | 3,379 | ||||||
| Total current assets | 13,932 | 12,997 | ||||||
Net property and equipment | 11,686 | 11,716 | ||||||
| Other, net | 36,906 | 36,819 | ||||||
| Total Assets | $ | 62,524 | $ | 61,532 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,564 | $ | 1,511 | ||||
| Deferred revenue | 10,465 | 8,264 | ||||||
| Accrued compensation | 1,595 | 1,594 | ||||||
| Notes payable | 726 | 3,110 | ||||||
| Income taxes payable | 29 | -- | ||||||
| Total current liabilities | 14,379 | 14,479 | ||||||
Non-current liabilities | 10,144 | 10,303 | ||||||
| Total Liabilities | 24,523 | 24,782 | ||||||
| Shareholders' Equity: | ||||||||
| Common stock, $0.001 par value; 20,000,000 shares authorized; | ||||||||
| issued 7,869,778 in 2007 and 7,827,848 in 2006; | ||||||||
| outstanding 6,920,261 in 2007 and 6,890,631 in 2006 | 8 | 8 | ||||||
| Additional paid-in capital | 22,326 | 21,820 | ||||||
| Retained earnings | 27,252 | 26,488 | ||||||
| Accumulated other comprehensive income | 391 | 358 | ||||||
| Treasury stock | (11,976 | ) | (11,924 | ) | ||||
| Total shareholders' equity | 38,001 | 36,750 | ||||||
| Total liabilities and shareholders' equity | $ | 62,524 | $ | 61,532 | ||||
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