EX-99.1 2 cmw4149a.htm PRESS RELEASE

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 at www.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
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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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