NRCI National Research Corp. (MM)

National Research Corporation (NASDAQ:NRCI) today announced results for the first quarter 2011.

• Quarterly revenue up 14% to $19.8 million
• Quarterly net income up 10% to $3.5 million
• Quarterly diluted earnings per share of $0.51, up 9%
• Total Contract Value reaches $76.6 million, up 24%

Commenting on the first quarter results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, “Against a strong comparable quarter in 2010, our first quarter of 2011 was very rewarding and set a number of records. We continue to achieve large increases in new sales as a result of the compelling value proposition of our subscription-based offerings, supported by investments made to expand our sales force. Our sales growth is also attributed to the Company’s unique position with a clear differentiated portfolio that directly meets the industry need, driven by healthcare reform, for cross-continuum expertise.

Revenue for the quarter ended March 31, 2011, was $19.8 million, compared to $17.4 million for the same quarter in 2010. Net income for the quarter ended March 31, 2011, was $3.5 million, or $.52 per basic and $.51 per diluted share, compared to $3.1 million for the first quarter 2010, or $0.47 per basic and diluted share.

In closing, Patrick E. Beans, chief financial officer of National Research Corporation, said, “As evidenced by our sales traction, subscription-based offerings are finding great market acceptance, even though such contracts often push revenue to outlying periods.”

A listen-only simulcast of National Research Corporation’s 2011 first quarter conference call will be available online at www.earnings.com on May 4, 2011, 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,

2011

   

2010

    Revenue $ 19,791 $ 17,370   Operating expenses: Direct expenses 6,758 6,456 Selling, general and administrative 6,090 4,469 Depreciation and amortization   1,243     1,098   Total operating expenses   14,091     12,023     Operating income 5,700 5,347   Other income (expense), net: Interest income 2 1 Interest expense (169 ) (98 ) Other, net   (29 )   (43 )   Total other income (expense), net   (196 )   (140 )   Income before income taxes 5,504 5,207 Provision for income taxes   2,048     2,079     Net income $ 3,456   $ 3,128     Net income per share, basic $ 0.52 $ 0.47 Net income per share, diluted $ 0.51   $ 0.47     Weighted average shares outstanding: Basic 6,654 6,640 Diluted 6,809 6,711  

NATIONAL RESEARCH CORPORATION

Unaudited Consolidated Condensed Balance Sheets

(Dollars in thousands)    

March. 31,

 

Dec. 31,

2011

2010

ASSETS   Current Assets: Cash and cash equivalents $ 3,316 $ 3,519 Accounts receivable, net 12,925 9,172 Income taxes recoverable 713 1,277 Other current assets   3,432   3,373 Total current assets 20,386 17,341   Net property and equipment 14,227 14,482 Other, net   63,595   63,947   Total Assets $ 98,208 $ 95,770   LIABILITIES AND SHAREHOLDERS’ EQUITY   Current Liabilities: Accounts payable and accrued expenses $ 2,599 $ 3,872 Deferred revenue 18,759 17,701 Accrued compensation 2,526 2,750 Notes payable   1,843   1,827 Total current liabilities 25,727 26,150   Non-current liabilities   21,345   21,036   Total Liabilities   47,072   47,186   Shareholders’ Equity: Common stock, $0.001 par value; 20,000,000 shares authorized; issued 8,091,985 in 2011 and 8,044,855 in 2010; outstanding 6,713,407 in 2011 and 6,668,574 in 2010 8 8 Additional paid-in capital 29,392 28,970 Retained earnings 43,322 41,343 Accumulated other comprehensive income 1,333 1,108 Treasury stock   (22,919 )   (22,845 ) Total shareholders’ equity   51,136   48,584 Total liabilities and shareholders’ equity $ 98,208 $ 95,770