NRCI National Research Corp. (MM)

National Research Corporation (NASDAQ:NRCI) today announced results for the first quarter ended March 31, 2007. Quarterly revenues increased by 29% Quarterly net income increased by 31% Quarterly earnings per share of $0.23, up 28% 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.� A listen-only simulcast of National Research Corporation�s 2007 first quarter conference call will be available online at www.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. 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� NATIONAL RESEARCH CORPORATION Consolidated Condensed Balance Sheets (Dollars in thousands) � Mar. 31, Dec. 31, 2007 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�