NRCI National Research Corp. (MM)

National Research Corporation (NASDAQ:NRCI) today announced results for the first quarter 2009.

• Quarterly revenue up 24% to $16.7 million
• Quarterly net income up 32% to $2.7 million
• Quarterly diluted earnings per share of $0.39, up 34%

Commenting on the first quarter results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, �Needless to say, I�m very satisfied with the Company�s overall first quarter achievements. Record-setting performance is wonderful in any environment, but especially given today�s economic conditions.�

Revenue for the quarter ended March 31, 2009, was $16.7 million, compared to $13.5 million for the same quarter in 2008. Net income for the quarter ended March 31, 2009, was $2.7 million, or $.40 per basic and $.39 per diluted share, compared to $2.0 million for the first quarter 2008, or $.29 per basic and diluted share.

In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, �The quarter showed revenue growth combined with very strong margins. In fact, both net income and operating income surpassed our model.�

A listen-only simulcast of National Research Corporation�s 2009 first quarter conference call will be available online at www.earnings.com on May 6, 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.

NATIONAL RESEARCH CORPORATION

Unaudited Consolidated Statements of Operations

(In thousands, except per share data) � �

Three Months Ended

March 31,

2009

�

2008

� Revenue $ 16,740 $ 13,454 � Operating expenses: Direct expenses 7,421 5,927 Selling, general and administrative 4,074 3,559 Depreciation and amortization � 871 � 666 Total operating expenses � 12,366 � 10,152 � Operating income 4,374 3,302 � Other income (expense), net: Interest income 1 19 Interest expense (138 ) (44 ) Other, net � 40 � (7 ) � Total other income (expense), net � (97 ) � (32 ) � Income before income taxes 4,277 3,270 Provision for income taxes � 1,627 � 1,267 � Net income $ 2,650 $ 2,003 � Net income per share, basic $ 0.40 $ 0.29 Net income per share, diluted $ 0.39 $ 0.29 � Weighted average shares outstanding: Basic 6,633 6,818 Diluted 6,713 6,970

NATIONAL RESEARCH CORPORATION

Unaudited Consolidated Condensed Balance Sheets

(Dollars in thousands) � �

March. 31,

�

Dec. 31,

2009

2008

ASSETS � Current Assets: Cash and cash equivalents $ 620 $ 1,109 Accounts receivable, net 9,594 6,531 Income taxes recoverable -- 574 Other current assets � 2,493 � 2,225 Total current assets 12,707 10,439 � Net property and equipment 13,693 13,747 Other, net � 46,934 � 47,959 � Total Assets $ 73,334 $ 72,145 � LIABILITIES AND SHAREHOLDERS� EQUITY � Current Liabilities: Accounts payable and accrued expenses $ 2,834 $ 2,208 Deferred revenue 13,644 12,926 Accrued compensation 1,454 1,375 Income taxes payable 299 -- Notes payable � 2,821 � 4,581 Total current liabilities 21,052 21,090 � Non-current liabilities � 12,088 � 12,457 � Total Liabilities � 33,140 � 33,547 � Shareholders� Equity:

Common stock, $0.001 par value; 20,000,000 shares authorized;�issued 8,016,021 in 2009 and 8,019,922 in 2008; outstanding�6,660,746 in 2009 and 6,667,517 in 2008

8 8 Additional paid-in capital 27,386 27,217 Retained earnings 35,262 33,677 Accumulated other comprehensive income (loss) (97 ) (6 ) Treasury stock � (22,365 ) � (22,298 ) Total shareholders� equity � 40,194 � 38,598 Total liabilities and shareholders� equity $ 73,334 $ 72,145