| Contact: | Patrick E. Beans
Chief Financial Officer
402-475-2525 |
NATIONAL RESEARCH CORPORATION ANNOUNCES
2008 FOURTH QUARTER AND YEAR-END RESULTS
Total Contract Value Ends Year at $61.3 Million, Up 26%; Provides Strong Start to 2009
LINCOLN, Nebraska (February, 10, 2009) — National Research Corporation (NASDAQ:NRCI) today announced results for the fourth quarter and year-end 2008.
| | • | Quarterly revenue up 13% to $12.2 million |
| | • | Quarterly diluted earnings per share of $0.28, up 78% |
| | • | Quarterly net new contracts $3.0 million |
| | • | Year-end revenue $51.0 million; net income $7.4 million |
| | • | Year-end new contracts up 19%; subscription-based new contracts up 93% |
Commenting on the 2008 fourth quarter and year-end results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, “A good fourth quarter topped off a positive year which included our focus on new product development—the Healthcare Market Guide Ticker was launched, we added new revenue runways, and populated a robust pipeline of additional new products yet to be launched. As well, The Governance Institute completed its board support membership upgrade which contributed to their strong 2008 financial performance.”
Mr. Hays added, “Turning to 2009, I’m delighted that we are entering the year with booked contracts of more than $60 million which, if completed, suggests a 20% revenue growth in 2009 over 2008.”
Revenue for the quarter ended December 31, 2008, was $12.2 million, compared to $10.8 million for the same quarter in 2007. Net income for the quarter ended December 31, 2008, was $1.9 million compared to $1.1 million for the fourth quarter 2007.
Revenue for the year ended December 31, 2008, was $51.0 million, compared to $48.9 million for the same period in 2007. Net income for 2008 was $7.4 million, compared to $6.8 million for 2007. Year-end 2008 performance resulted in $1.11 per basic and $1.09 per diluted earnings per share, compared to 2007 performance of $1.00 per basic and $.98 per diluted earnings per share.
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NRCI Announces 2008 Fourth Quarter and Year End Results
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February 10, 2009
In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, “It’s a positive achievement to have rolled out the HealthCare Market Guide Ticker product, which required deferring some high margin revenue into 2009, and still maintain our net income target of 15% of Company revenue in 2008.”
A listen-only simulcast of National Research Corporation’s 2008 fourth quarter and year-end conference call will be available online atwww.earnings.com on February 11, 2009, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one 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 2008 Fourth Quarter and Year End Results
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February 10, 2009
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended
December 31,
| Twelve Months Ended
December 31,
|
|---|
| 2008
| 2007
| 2008
| 2007
|
|---|
Revenue | | | $ | 12,190 | | $ | 10,821 | | $ | 51,013 | | $ | 48,923 | |
Operating expenses: | | |
| Direct expenses | | | | 5,766 | | | 5,057 | | | 23,611 | | | 21,801 | |
| Selling, general and administrative | | | | 2,768 | | | 3,283 | | | 12,728 | | | 13,173 | |
| Depreciation and amortization | | | | 683 | | | 661 | | | 2,685 | | | 2,583 | |
|
| |
| |
| |
| |
| Total operating expenses | | | | 9,217 | | | 9,001 | | | 39,024 | | | 37,557 | |
|
| |
| |
| |
| |
Operating income | | | | 2,973 | | | 1,820 | | | 11,989 | | | 11,366 | |
Other income (expense): | | |
| Interest income | | | | 9 | | | 37 | | | 42 | | | 139 | |
| Interest expense | | | | (21 | ) | | (70 | ) | | (139 | ) | | (483 | ) |
| Other, net | | | | 81 | | | 8 | | | 91 | | | 96 | |
|
| |
| |
| |
| |
Total other income (expense) | | | | 69 | | | (25 | ) | | (6 | ) | | (248 | ) |
Income before income taxes | | | | 3,042 | | | 1,795 | | | 11,983 | | | 11,118 | |
| Provision for income taxes | | | | 1,148 | | | 686 | | | 4,538 | | | 4,278 | |
|
| |
| |
| |
| |
Net income | | | $ | 1,894 | | $ | 1,109 | | $ | 7,445 | | $ | 6,840 | |
|
| |
| |
| |
| |
Net income per share, basic | | | $ | 0.29 | | $ | 0.16 | | $ | 1.11 | | $ | 1.00 | |
|
| |
| |
| |
| |
| Net income per share, diluted | | | $ | 0.28 | | $ | 0.16 | | $ | 1.09 | | $ | 0.98 | |
|
| |
| |
| |
| |
Weighted average shares outstanding: | | |
| Basic | | | | 6,642 | | | 6,861 | | | 6,685 | | | 6,850 | |
| Diluted | | | | 6,782 | | | 7,034 | | | 6,832 | | | 7,011 | |
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NRCI Announces 2008 Fourth Quarter and Year End Results
Page 4
February 10, 2009
NATIONAL RESEARCH CORPORATION
Unaudited Consolidated Condensed Balance Sheets
(Dollars in thousands)
| Dec. 31,
2008
| Dec. 31,
2007
|
|---|
| ASSETS | | |
|---|
Current Assets: | | | | | | | | |
| Cash and cash equivalents | | | $ | 1,109 | | $ | 3,355 | |
| Short-term investments | | | | -- | | | 99 | |
| Accounts receivable, net | | | | 6,531 | | | 6,379 | |
| Income taxes recoverable | | | | 590 | | | 272 | |
| Other current assets | | | | 2,191 | | | 2,495 | |
|
| |
| |
| Total current assets | | | | 10,421 | | | 12,600 | |
Net property and equipment | | | | 13,652 | | | 11,974 | |
| Other, net | | | | 46,575 | | | 37,295 | |
|
| |
| |
Total Assets | | | $ | 70,648 | | $ | 61,869 | |
|
| |
| |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
Current Liabilities: | | |
| Accounts payable and accrued expenses | | | $ | 2,207 | | $ | 2,492 | |
| Deferred revenue | | | | 12,926 | | | 9,922 | |
| Accrued compensation | | | | 1,375 | | | 1,477 | |
| Notes payable | | | | 4,581 | | | 1,093 | |
|
| |
| |
| Total current liabilities | | | | 21,089 | | | 14,984 | |
Non-current liabilities | | | | 10,961 | | | 4,598 | |
|
| |
| |
Total Liabilities | | | | 32,050 | | | 19,582 | |
|
| |
| |
Shareholders’ Equity: | | |
| Common stock, $0.001 par value; 20,000,000 shares authorized; | | |
| issued 8,019,922 in 2008 and 7,883,289 in 2007; | | |
| outstanding 6,667,517 in 2008 and 6,926,442 in 2007 | | | | 8 | | | 8 | |
| Additional paid-in capital | | | | 27,217 | | | 23,508 | |
| Retained earnings | | | | 33,677 | | | 30,004 | |
| Accumulated other comprehensive income | | | | (6 | ) | | 932 | |
| Treasury stock | | | | (22,298 | ) | | (12,165 | ) |
|
| |
| |
| Total shareholders’ equity | | | | 38,598 | | | 42,287 | |
|
| |
| |
| Total liabilities and shareholders’ equity | | | $ | 70,648 | | $ | 61,869 | |
|
| |
| |
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