NRCI National Research Corp. (MM)

National Research Corporation (NASDAQ:NRCI) today announced results for the third quarter ended September 30, 2008. Quarterly revenue $13.5 million Quarterly diluted earnings per share of $0.29 NRC quarterly net new contracts $2.7 million New contracts for subscription-based products continue rapid growth--up 67% for the quarter and 170% year-to-date Total recurring contract value $56.5 million, up 16% over third quarter 2007 Commenting on the third quarter results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, �We had a good quarter. Traditionally HealthCare Market Guide has driven our third quarter revenue and we knew, given the deferred nature of our new HCMG Ticker product, we had a hurdle to make up. The balance of the organization�s growth did just that and largely offsets HCMG revenue.� Revenue for the quarter ended September 30, 2008, was $13.5 million compared to $14.0 million for the same quarter 2007. Net income for the quarter ended September 30, 2008, was $2.0 million compared to $2.5 million for the third quarter 2007. Revenue for the first nine months of 2008 was $38.8 million, compared to $38.1 million for the same period in 2007. Net income for the first nine months of 2008 was $5.6 million resulting in $.83 per basic and $.81 per diluted earnings per share. The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.14 (fourteen cents) per share payable December 31, 2008, to shareholders of record as of the close of business on December 5, 2008. In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, �Happily, we are debt free today having paid off the $12.5 million loan in 30 months in conjunction with our acquisition of TGI in May 2006. This, along with having paid $8.2 million in dividends and $8.9 million in repurchasing stock during that same period, speaks to our constant profitability and a very strong cash flow.� A listen-only simulcast of National Research Corporation�s third quarter conference call will be available online at www.earnings.com on November 5, 2008, 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 Nine Months Ended September 30, September 30, 2008 2007 2008 2007 � Revenue $ 13,469 $ 13,952 $ 38,824 $ 38,102 � Operating expenses: Direct expenses 6,598 5,930 17,845 16,744 Selling, general and administrative 3,053 3,240 9,960 9,890 Depreciation and amortization � 661 � � 672 � � 2,003 � � 1,922 � Total operating expenses � 10,312 � � 9,842 � � 29,808 � � 28,556 � � Operating income 3,157 4,110 9,016 9,546 � Other income (expense): Interest income 6 32 33 101 Interest expense (21 ) (110 ) (118 ) (413 ) Other, net � 29 � � 21 � � 9 � � 88 � � Total other income (expense) 14 (57 ) (76 ) (224 ) � Income before income taxes 3,171 4,053 8,940 9,322 Provision for income taxes � 1,205 � � 1,558 � � 3,390 � � 3,592 � � Net income $ 1,966 � $ 2,495 � $ 5,550 � $ 5,730 � � Net income per share, basic $ 0.30 � $ 0.36 � $ 0.83 � $ 0.84 � Net income per share, diluted $ 0.29 � $ 0.36 � $ 0.81 � $ 0.82 � � Weighted average shares outstanding: Basic 6,644 6,851 6,699 6,846 Diluted 6,803 7,013 6,845 6,995 NATIONAL RESEARCH CORPORATION Unaudited Consolidated Condensed Balance Sheets (Dollars in thousands) � � Sept. 30, Dec. 31, 2008 2007 ASSETS � Current Assets: Cash and cash equivalents $ 677 $ 3,355 Short-term investments -- 99 Accounts receivable, net 9,785 6,379 Income taxes recoverable 55 272 Other current assets � 1,780 � � 2,495 � Total current assets 12,297 12,600 � Net property and equipment 12,595 11,974 Other, net � 36,215 � � 37,295 � � Total Assets $ 61,107 � $ 61,869 � � LIABILITIES AND SHAREHOLDERS' EQUITY � Current Liabilities: Accounts payable and accrued expenses $ 2,152 $ 2,492 Deferred revenue 15,313 9,922 Accrued compensation 1,457 1,477 Notes payable � 239 � � 1,093 � Total current liabilities 19,161 14,984 � Non-current liabilities � 2,339 � � 4,598 � � Total Liabilities � 21,500 � � 19,582 � � Shareholders' Equity: Common stock, $0.001 par value; 20,000,000 shares authorized; issued 7,942,559 in 2008 and 7,883,289 in 2007; outstanding 6,698,480 in 2008 and 6,926,442 in 2007 8 8 Additional paid-in capital 25,807 23,508 Retained earnings 32,712 30,004 Accumulated other comprehensive income 694 932 Treasury stock � (19,614 ) � (12,165 ) Total shareholders' equity � 39,607 � � 42,287 � Total liabilities and shareholders' equity $ 61,107 � $ 61,869 �