Exhibit 99.1

  1245 “Q” Street Lincoln, NE 68508 Phone: 402-475-2525 Fax: 402-475-9061

Contact: Kevin R. Karas     

Chief Financial Officer

402-475-2525

NATIONAL RESEARCH CORPORATION ANNOUNCES

THIRD QUARTER 2016 RESULTS

LINCOLN, Nebraska (November 1, 2016) — National Research Corporation (NASDAQ: NRCIA and NRCIB) today announced results for the third quarter of 2016.

● Net New Sales $5.2 million

● Total Contract Value $115.2 million

● Revenue up 7% to $27.0 million

● Net Income of $4.7 million, up 14%

Remarking on Company performance, Michael D. Hays, chief executive officer of National Research Corporation said, “NRC’s strategy of bundling our various point solutions is today, creating enterprise-wide value for our clients and driving enhanced margins for the Company. Going forward, the uniqueness of these bundled offerings should accelerate growth rates in net new sales.”

Revenue for the quarter ended September 30, 2016, was $27.0 million, compared to $25.2 million for the same quarter in 2015. Net income for the quarter ended September 30, 2016, was $4.7 million, compared to $4.1 million for the quarter ended September 30, 2015. Diluted earnings per share increased to $0.11 for Class A shares and $0.66 for Class B shares for the quarter ended September 30, 2016, from $0.10 for Class A shares and $0.59 for Class B shares for the quarter ended September 30, 2015. Combined diluted earnings per share (a non-GAAP measure) increased to $0.19 for the quarter ended September 30, 2016, from $0.17 for the third quarter 2015.     

Regarding third quarter performance, Kevin Karas, chief financial officer of National Research Corporation, said, “We continue to see positive results from our focus on revenue growth and expanding our operating income margin. Revenue and total contract value growth rates on a year-to-date basis have more than doubled over prior year.”

NRC Announces Third Quarter 2016 Results

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November 1, 2016

A listen-only simulcast of National Research Corporation’s 2016 third quarter conference call will be available online at http://edge.media-server.com/m/p/xcfef9v7on November 2, 2016, beginning at 11:00 a.m. Eastern time. The online replay will follow approximately one hour later and continue for 30 days.

For more than 35 years, National Research Corporation has been at the forefront of patient-centered care, helping healthcare providers measure and improve quality and services through analytics that offer a rich understanding of customers’ experiences, preferences, risks and behaviors across the healthcare continuum.

The information discussed within this release includes financial results and projections that are in accordance with accounting principles generally accepted in the United States (GAAP). In addition, certain non-GAAP financial measures have been provided that calculate combined earnings per share based on combined Class A and Class B shares and share equivalents outstanding, respectively. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. Please note that the Company’s non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company’s financial information presented in accordance with GAAP. The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company's core business operations and to compare the company's performance with prior periods. The company uses both GAAP and these non-GAAP financial measures for evaluating comparable financial performance against prior periods.

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.

NRC Announces Third Quarter 2016 Results

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November 1, 2016

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Revenue	$	27,032		$	25,244		$	81,016		$	75,979
Operating expenses:
Direct expenses		11,468			11,006			33,741			33,246
Selling, general and administrative		7,139			6,620			21,766			20,883
Depreciation and amortization		1,086			1,070			3,146			3,109
Total operating expenses		19,693			18,696			58,653			57,238
Operating income		7,339			6,548			22,363			18,741
Other income (expense):
Interest income		12			14			34			46
Interest expense		(38	)		(52	)		(158	)		(172	)
Other, net		(4	)		(25	)		112			(22	)
Total other income (expense)		(30	)		(63	)		(12	)		(148	)
Income before income taxes		7,309			6,485			22,351			18,593
Provision for income taxes		2,580			2,346			7,558			6,910
Net income	$	4,729		$	4,139		$	14,793		$	11,683
Earnings Per Share of Common Stock:
Basic Earnings Per Share:
Class A	$	0.11		$	0.10		$	0.35		$	0.28
Class B	$	0.67		$	0.59		$	2.11		$	1.67
Diluted Earnings Per Share:
Class A	$	0.11		$	0.10		$	0.35		$	0.28
Class B	$	0.66		$	0.59		$	2.08		$	1.65
Weighted average shares and share equivalents outstanding
Class A - basic		20,716			20,726			20,712			20,769
Class B - basic		3,511			3,478			3,503			3,478
Class A - diluted		21,068			20,937			21,017			21,002
Class B - diluted		3,556			3,521			3,557			3,522

NRC Announces Third Quarter 2016 Results

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November 1, 2016

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

(Dollars in thousands, except per share amounts and par value)

	Sept. 30, 2016			Dec. 31, 2015
ASSETS
Current Assets:
Cash and cash equivalents	$	28,878		$	42,145
Accounts receivable, net		14,115			9,808
Income taxes receivable		12			157
Other current assets		2,912			2,951
Total Current Assets		45,917			55,061
Property and equipment, net		11,659			11,125
Goodwill		57,913			57,792
Other, net		3,812			4,071
Total Assets	$	119,301		$	128,049
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	3,918		$	3,394
Deferred revenue		17,409			14,843
Accrued compensation		3,893			4,391
Dividends payable		3,372			18,440
Income taxes payable		79			701
Notes payable		2,460			2,402
Total Current Liabilities		31,131			44,171
Non-Current Liabilities		6,945			9,656
Total Liabilities		38,076			53,827
Shareholders’ Equity:
Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued		--			--
Class A Common stock, $0.001 par value; authorized 60,000,000 shares, issued 25,665,773 in 2016 and 25,592,812 in 2015, outstanding 20,900,082 in 2016 and 20,848,168 in 2015		26			26
Class B Common stock, $0.001 par value; authorized 80,000,000 shares, issued 4,310,377 in 2016 and 4,271,413 in 2015, outstanding 3,541,433 in 2016 and 3,510,150 in 2015		4			4
Additional paid-in capital		46,345			44,103
Retained earnings		69,995			65,313
Accumulated other comprehensive loss		(2,315	)		(2,995	)
Treasury stock		(32,830	)		(32,229	)
Total Shareholders’ Equity		81,225			74,222
Total Liabilities and Shareholders’ Equity	$	119,301		$	128,049

NRC Announces Third Quarter 2016 Results

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November 1, 2016

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Non-GAAP Combined Earnings Per Share Schedule

(In thousands, except per share data)

	Three months ended				Nine months ended
	September 30,				September 30,
	2016		2015		2016		2015
Combined Earnings Per Share
Basic Earnings Per Share	$	0.19	$	0.17	$	0.61	$	0.48
Diluted Earnings Per Share	$	0.19	$	0.17	$	0.60	$	0.47
Combined weighted average shares and share equivalents outstanding
Combined - Basic		24,227		24,204		24,215		24,247
Combined - Diluted		24,623		24,459		24,574		24,524