[GRAPHIC OMITTED][NATIONAL RESEARCH CORPORATION LOGO]
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
LINCOLN, Nebraska (April 29, 2003) -- National Research Corporation
(NASDAQ/NM:NRCI), a leader in healthcare performance measurement, today
announced results for the first quarter ended March 31, 2003.
In commenting on the first quarter results, Michael D. Hays, president and
chief executive officer of National Research Corporation, said, "Last year was a
record year, and our positive momentum has carried over to generate strong first
quarter performance. We continue to benefit from increasing demand in the
marketplace for measuring and improving the patient experience."
Revenues for the first quarter ended March 31, 2003, increased 50% to $6.1
million compared with revenues of $4.0 million for the first quarter of 2002.
Net income for the first quarter of 2003 was $921,000, or $0.13 per basic and
diluted share, compared with net income of $294,000, or $0.04 per basic and
diluted share, in the prior-year quarter.
Patrick E. Beans, chief financial officer of National Research Corporation,
said, "We are pleased with our strong financial results. The combination of
increased demand for our services and prudent fiscal policy is having the
desired effect on both top line and bottom line growth. Our success during the
first quarter makes us optimistic about the remainder of the year and supports
our confidence that we will achieve our previously announced guidance of $0.66
per diluted share for full year 2003."
In closing, Mr. Hays added, "Growth of our core business is tracking at 38%
for the last four quarters, and we believe the implementation of the national
standard will further enhance that trend. In addition, we have numerous
opportunities for expansion, both in the United States and internationally.
Quality is no longer just a `buzzword;' it is a meaningful, measurable
differentiator of the caliber of service provided by healthcare institutions."
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NRCI Announces First Quarter Results
Page 2
April 29, 2003
A listen-only simulcast of National Research Corporation's first quarter
conference call will be available online at www.companyboardroom.com on April
30, 2003, 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 and
tracking services to the healthcare industry. 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.
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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April 29, 2003
NATIONAL RESEARCH CORPORATION
Unaudited Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
--------------------
2003 2002
--------- ---------
Revenues $ 6,058 $ 4,049
--------- ---------
Operating expenses:
Direct expenses 2,816 1,795
Selling, general and administrative 1,284 1,273
Depreciation and amortization 446 405
--------- ---------
Total operating expenses 4,546 3,473
--------- ---------
Operating income 1,512 576
--------- ---------
Other income (expense):
Interest income 69 64
Interest expense (106) (106)
Other, net 4 (67)
--------- ---------
Total other income (expense) (33) (109)
--------- ---------
Income before income taxes 1,479 467
Provision for income taxes 558 173
--------- ---------
Net income $ 921 $ 294
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Net income per share, basic and diluted $ 0.13 $ 0.04
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Weighted average shares outstanding:
Basic 7,249 7,099
Diluted 7,296 7,166
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NRCI Announces First Quarter Results
Page 4
April 29, 2003
NATIONAL RESEARCH CORPORATION
Condensed Balance Sheets
(Dollars in thousands)
March 31, Dec. 31,
2003 2002
-------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,257 $ 991
Short-term investments 10,858 9,987
Accounts receivable, net 5,090 4,579
Other current assets 2,291 2,391
-------- ---------
Total current assets 19,496 17,948
Net property and equipment 12,419 12,346
Other, net 9,933 8,538
-------- ---------
Total Assets $ 41,848 $ 38,832
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,026 $ 933
Deferred revenue 4,282 3,277
Accrued compensation 757 633
Notes payable 133 132
Income taxes payable 432 55
-------- ---------
Total current liabilities 6,630 5,030
Noncurrent Liabilities 6,235 5,784
-------- ---------
Total Liabilities 12,865 10,814
-------- ---------
Shareholders' Equity:
Common stock, $0.001 par value; 20,000,000 shares authorized;
7,570,302 and 7,560,610 shares issued, respectively;
7,254,802 and 7,245,110 outstanding, respectively 8 8
Additional paid-in capital 18,171 18,124
Retained earnings 12,368 11,447
Accumulated other comprehensive income (loss) 32 35
Treasury stock (1,596) (1,596)
-------- ---------
Total shareholders' equity 28,983 28,018
-------- ---------
Total Liabilities and Shareholders' Equity $ 41,848 $ 38,832
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