[GRAPHIC OMITTED][NATIONAL RESEARCH CORPORATION LOGO] 0000 "X" Xxxxxx
Xxxxxxx, XX 00000
Phone: 000-000-0000
Fax: 000-000-0000
Contact: Xxxxxxx X. Xxxxx
Chief Financial Officer
000-000-0000
NATIONAL RESEARCH CORPORATION REVISES HEALTHSOUTH CONTRACT
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Company Revises Previously Announced Second Quarter Guidance
And Confirms Previously Announced Guidance for Third and Fourth Quarters of 2003
LINCOLN, Nebraska (June 11, 2003) -- National Research Corporation
(NASDAQ/NM:NRCI), today announced that it has reached an agreement to modify the
Company's current services contract with HealthSouth Corporation (formerly NYSE:
HRC; now OTC: HLSH). The modification to the contract will help ensure
HealthSouth remains a client, albeit at a reduced scope, by revising the payment
terms and reducing by 50% the services provided by the Company to HealthSouth.
As a result of the modified contract terms, National Research Corporation
received $250,000 towards $350,000 in invoices relating to current services, and
the Company will record a one-time charge in the second quarter of 2003 relating
to the unpaid $100,000 balance. The Company is revising its previously announced
guidance for the second quarter of 2003 from $0.16 per diluted share to $0.12
per diluted share as a result of the one-time charge and the reduction in the
scope of the HealthSouth project.
While revenue from the HealthSouth contract will remain reduced in the
third and fourth quarters of 2003, the Company believes that new contracts
currently being awarded from other sources will offset the reduction in revenue
from HealthSouth. The Company expects second quarter 2003 revenue growth to meet
its 25% growth target. Given revenue growth trends, the Company's previously
announced guidance for the third and fourth quarters of 2003 remains $0.18 and
$0.19 per diluted share, respectively.
In addition, under the terms of the new HealthSouth contract, National
Research Corporation will receive payment for future services in advance of
services being performed, thus reducing payment risk for the Company. The scope
of the project now reflects the minimum level of measurement mandatory for
accreditation purposes, minimizing the risk for additional reduction.
HealthSouth has also contractually agreed to name National Research Corporation
as its sole and exclusive provider of patient satisfaction measurement for their
facilities and is allowing the Company to contract directly with their
individual facilities for additional patient satisfaction measurement beyond the
minimum level required.
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.
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