NRCI National Research Corp. (MM)

National Research Corporation (NASDAQ:NRCI) today announced results for the first quarter 2010.

• Quarterly revenue up 4% to $17.4 million
• Quarterly net income up 18% to $3.1 million
• Quarterly diluted earnings per share of $0.47, up 21%

Commenting on the first quarter results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, “Our syndicated and membership-based businesses are driving expanded margins for the Company which helped accelerate quarterly net income past the $3 million mark for the first time.”

Revenue for the quarter ended March 31, 2010, was $17.4 million, compared to $16.7 million for the same quarter in 2009. Net income for the quarter ended March 31, 2010, was $3.1 million, or $0.47 per basic and diluted share, compared to $2.7 million for the first quarter 2009, or $0.40 per basic and $0.39 per diluted share.

In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, “We witnessed the power of leverage within Ticker and The Governance Institute this past quarter. As well, My InnerView margins more than doubled over the fourth quarter 2009 as we realized benefits from past expense reductions which should continue for the balance of the year.”

A listen-only simulcast of National Research Corporation’s 2010 first quarter conference call will be available online at www.earnings.com on May 5, 2010, 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,

2010

 

2009

  Revenue $ 17,370 $ 16,740   Operating expenses: Direct expenses 6,456 7,276 Selling, general and administrative 4,469 3,980 Depreciation and amortization   1,098     1,110   Total operating expenses   12,023     12,366     Operating income 5,347 4,374   Other income (expense), net: Interest income 1 1 Interest expense (98 ) (138 ) Other, net   (43 )   40     Total other income (expense), net   (140 )   (97 )   Income before income taxes 5,207 4,277 Provision for income taxes   2,079     1,627     Net income $ 3,128   $ 2,650     Net income per share, basic $ 0.47 $ 0.40 Net income per share, diluted $ 0.47   $ 0.39     Weighted average shares outstanding: Basic 6,640 6,633 Diluted 6,711 6,713  

NATIONAL RESEARCH CORPORATION

Unaudited Consolidated Condensed Balance Sheets

(Dollars in thousands)    

March. 31,

 

Dec. 31,

2010

2009

ASSETS   Current Assets: Cash and cash equivalents $ 6,261 $ 2,512 Accounts receivable, net 8,113 5,214 Income taxes recoverable -- 803 Other current assets   2,852     3,135   Total current assets 17,226 11,664   Net property and equipment 13,503 13,975 Other, net   46,655     46,860     Total Assets $ 77,384   $ 72,499     LIABILITIES AND SHAREHOLDERS’ EQUITY   Current Liabilities: Accounts payable and accrued expenses $ 2,447 $ 1,446 Deferred revenue 14,139 11,907 Accrued compensation 1,640 1,926 Income taxes payable 374 -- Notes payable   808     816   Total current liabilities 19,408 16,095   Non-current liabilities   11,872     12,233     Total Liabilities   31,280     28,328     Shareholders’ Equity: Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,027,282 in 2010 and 8,018,044 in 2009; outstanding 6,657,600 in 2010 and 6,662,111 in 2009 8 8 Additional paid-in capital 28,057 27,871 Retained earnings 39,768 37,905 Accumulated other comprehensive income 953 769 Treasury stock   (22,682 )   (22,382 ) Total shareholders’ equity   46,104     44,171   Total liabilities and shareholders’ equity $ 77,384   $ 72,499