| National Research Corporation | |||
| Ticker: | NRCI | 1033 "O" Street | |
| Exchange: | NASDAQ-National Market | Lincoln, NE 68508 | |
| Industry: | Service (SIC Code 8732) | (402) 475-2525 | |
| # of Employees: | 63 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/8/97 | |
| U.S. Shares: | 2,100,000 | Offer Date: | 10/9/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 1,250,000 | Offer Price: | $15.00 | |
| Secondary Shares: | 850,000 | Gross Spread: | $1.05 | |
| Offering Amount: | $25,200,000 | Selling: | $0.58 | |
| Expenses: | $500,000 | Reallowance: | $0.10 | |
| Shares Out After: | 7,305,000 |
| Manager | Tier | Phone |
| William Blair & Company | Lead Manager | (312) 364-8990 |
| Robert W. Baird & Company | Co-manager | (414) 765-3632 |
| Issuer's Law Firm: | Foley & Lardner |
| Bank's Law Firm: | Sachnoff & Weaver |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | Firstar Bank Milwaukee, N.A. |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $12.60 | $3.44 | $2.65 | Assets: | $7.60 |
| Net Income: | $2.30 | $0.66 | $0.52 | Curr Assets: | $7.11 |
| EPS: | $0.38 | $0.11 | $0.09 | Liabilities: | $4.42 |
| Prior EPS: | $0.30 | $0.60 | $2.45 | Curr Liabilities: | $4.42 |
| Cash Flow/Oper: | $6.35 | -$0.36 | -$0.27 | Equity: | $3.18 |
| Cash Flow/Fin: | -$3.34 | $1.29 | $0.31 | Cash: | $4.31 |
| Cash Flow/Inv: | -$1.16 | $1.29 | Working Cap: | $2.69 | |
| Business Description |
| The company is a leading provider of ongoing survey-based performance measurement, analysis and tracking services and products to the healthcare industry. The Company addresses the growing need of healthcare providers and payers to measure the care outcomes, specifically satisfaction and health status, of their patients and/or members. The company has led the industry in developing tools that enable healthcare organizations to obtain service quality information necessary to comply with industry and regulatory standards and to improve their business practices so that they can maximize new member and/or patient attraction, member retention and profitability. Since its founding 16 years ago, the company has focused on the information needs of the healthcare industry. While performance data has always been of interest to healthcare providers and payers, such information has become increasingly important to these entities as a result of regulatory, industry and competitive requirements. |
| Competition |
| The healthcare information and market research industry is highly competitive. The Company has traditionally competed both with healthcare organizations' internal marketing, market research and/or quality improvement departments which create their own performance measurement tools and with relatively small specialty research firms which provide survey-based healthcare market research and/or performance assessment. The Company anticipates that in the future it may increasingly compete with (i) traditional market research firms which are significant providers of survey-based, general market research and (ii) firms which provide services or products that complement healthcare performance assessments, such as healthcare software or information systems. Although only a few of these competitors have to date offered survey-based, healthcare performance measurement and/or market research that competes directly with the Company's services and products, many of these competitors have substantially greater financial, information gathering and marketing resources than the Company and could decide to increase their resource commitments to the Company's market. There are relatively few barriers to entry into the Company's market, and the Company expects increased competition in its market, which could adversely affect the Company's operating results through pricing pressure, increased client service and marketing expenditures and market share losses, among other factors. There can be no assurance that the Company will continue to compete successfully against existing or new competitors. |
| Business Plan |
| The company's growth strategy includes the following key elements: (I) Leverage Existing Client Base, (ii) Expand Client Base and (iii) Pursue Strategic Acquisitions and Alliances. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes, including working capital and possible acquisitions of or investments in complementary businesses. Products, services or technologies. |
| Name of Shareholder | % Owned Before | % Owned After |
| Michael D. Hays | 99.30% | 70.70% |
| Officer Name | Title | Age |
| Michael D. Hays | President, Chief Executive Officer and Director | 42 |
| Patrick E. Beans | Vice President, Treasurer and Chief Financial Officer | 39 |
| Jona S. Raasch | Vice President-Operations | 38 |
| Sharon Flaherty | Vice President-Sales, Marketing and Client Services | 49 |