EX-99.1 3 sdc497a.txt PRESS RELEASE [NATIONAL RESEARCH LOGO] 1245 "Q" Street Lincoln, NE 68508 Phone: 402-475-2525 Fax: 402-475-9061 Contact: Patrick E. Beans Chief Financial Officer 402-475-2525 NATIONAL RESEARCH CORPORATION ANNOUNCES SECOND QUARTER RESULTS LINCOLN, Nebraska (August 5, 2003) -- National Research Corporation (NASDAQ/NM:NRCI), a leader in healthcare performance measurement, today announced results for the second quarter and six months ended June 30, 2003. In commenting on the second quarter results, Michael D. Hays, president and chief executive officer of National Research Corporation, said, "We are pleased with our financial results for the first half of the year. Our second quarter performance was on target with our expectations, confirming the continuing strength of our core business. We also are confirming that we expect to meet our expectations for the full year ended December 31, 2003." Revenues for the second quarter ended June 30, 2003, increased 27.7% to $6.1 million compared with revenues of $4.8 million for the second quarter of 2002. Net income for the second quarter of 2003 was $908,000, or $0.13 per basic and $0.12 per diluted share, compared with net income of $895,000, or $0.13 per basic and $0.12 per diluted share, in the prior-year quarter. Revenues for the six-month period ended June 30, 2003, increased 37.7% to $12.2 million compared with revenues of $8.8 million for the first half of 2002. Net income for the six months ended June 30, 2003, was $1.8 million, or $0.25 per basic and diluted share, compared with net income of $1.2 million, or $0.17 per basic and diluted share, in the prior-year period. In closing, Mr. Hays added, "The climate for our services currently is very advantageous. A variety of factors, including informed healthcare consumers, cost conscious payors, physicians and many more, are challenging the status quo and creating a huge opportunity for our company." A listen-only simulcast of National Research Corporation's second quarter conference call will be available online at www.companyboardroom.com on August 6, 2003, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately two hours later and continue for 30 days. -MORE- NRCI Announces Second Quarter Results Page 2 August 5, 2003 National Research Corporation, headquartered in Lincoln, Nebraska, is a leading provider of ongoing survey-based performance measurement, analysis and tracking services to the healthcare industry. The Company addresses the growing need of healthcare providers and payors to measure the care outcomes, specifically satisfaction and health status, of their patients and/or members. 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. -MORE- NRCI Announces Second Quarter Results Page 3 August 5, 2003 NATIONAL RESEARCH CORPORATION Unaudited Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2003 2002 2003 2002 -------- -------- -------- -------- Revenues $ 6,129 $ 4,799 $ 12,187 $ 8,848 Operating expenses: Direct expenses 2,667 1,780 5,483 3,574 Selling, general and administrative 1,533 1,088 2,817 2,362 Depreciation and amortization 482 417 928 822 -------- -------- -------- -------- Total operating expenses 4,682 3,285 9,228 6,758 -------- -------- -------- -------- Operating income 1,447 1,514 2,959 2,090 Other income (expense): Interest income 68 61 137 125 Interest expense (108) (126) (214) (232) Other, net 39 (5) 43 (72) -------- -------- -------- -------- Total other income (expense) (1) (70) (34) (179) Income before income taxes 1,446 1,444 2,925 1,911 Provision for income taxes 538 549 1,096 722 -------- -------- -------- -------- Net income $ 908 $ 895 $ 1,829 $ 1,189 ======== ======== ======== ======== Net income per share, basic $ 0.13 $ 0.13 $ 0.25 $ 0.17 ======== ======== ======== ======== Net income per share, diluted $ 0.12 $ 0.12 $ 0.25 $ 0.17 ======== ======== ======== ======== Weighted average shares outstanding: Basic 7,256 7,140 7,252 7,120 Diluted 7,303 7,194 7,298 7,173 -MORE- NRCI Announces Second Quarter Results Page 4 August 5, 2003 NATIONAL RESEARCH CORPORATION Consolidated Condensed Balance Sheets (Dollars in thousands) June 30, Dec. 31, 2003 2002 ASSETS -------- -------- Current Assets: Cash and cash equivalents $ 2,698 $ 991 Short-term investments 11,089 9,987 Accounts receivable, net 4,127 4,579 Other current assets 2,894 2,391 -------- -------- Total current assets 20,808 17,948 Net property and equipment 12,398 12,346 Other, net 9,953 8,538 -------- -------- Total Assets $ 43,159 $ 38,832 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 1,037 $ 933 Deferred revenue 4,834 3,277 Accrued compensation 820 633 Notes payable 136 132 Income taxes payable 126 55 -------- -------- Total current liabilities 6,953 5,030 Noncurrent Liabilities 6,302 5,784 -------- -------- Total Liabilities 13,255 10,814 -------- -------- Shareholders' Equity: Common stock, $0.001 par value; 20,000,000 shares authorized; 7,572,568 and 7,560,610 shares issued, respectively; 7,257,068 and 7,245,110 outstanding, respectively 8 8 Additional paid-in capital 18,182 18,124 Retained earnings 13,276 11,447 Accumulated other comprehensive income 34 35 Treasury stock (1,596) (1,596) -------- -------- Total shareholders' equity 29,904 28,018 -------- -------- Total Liabilities and Shareholders' Equity $ 43,159 $ 38,832 ======== ======== -END-