NHC National HealthCare Corp

National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended March 31, 2024 totaled $297,176,000 compared to $269,563,000 for the quarter ended March 31, 2023, an increase of 10.2%.

For the quarter ended March 31, 2024, the reported GAAP net income attributable to NHC was $26,213,000 compared to $11,723,000 for the same period in 2023. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended March 31, 2024 was $15,048,000 compared to $12,071,000 for the same period in 2023, an increase of 24.7% (*). The GAAP diluted earnings per share were $1.69 for the quarter ended March 31, 2024 compared to $0.76 for the quarter ended March 31, 2023. Adjusted diluted earnings per share were $0.97 and $0.79 for the quarters ended March 31, 2024 and 2023, respectively (*).

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

NHC affiliates operate for themselves and third parties 65 skilled nursing facilities with 8,421 beds. NHC affiliates also operate 24 assisted living communities with 1,365 units, five independent living communities with 475 units, three behavioral health hospitals, 34 homecare agencies, and 30 hospice agencies. NHC’s other services include Alzheimer’s and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com.

Non-GAAP Financial Presentation

The Company is providing certain non-GAAP financial measures as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company’s operations and measure the Company’s performance more consistently across periods. Therefore, the Company believes this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q, and 10-K. All forward-looking statements represent NHC’s best judgment as of the date of this release.

  Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended March 31

 

2024

 

 

2023

 

(unaudited) Revenues: Net patient revenues

$

285,823

 

$

258,007

 

Other revenues

 

11,353

 

 

11,556

 

Net operating revenues

 

297,176

 

 

269,563

 

  Costs and expenses: Salaries, wages and benefits

 

183,138

 

 

167,824

 

Other operating

 

77,429

 

 

71,489

 

Facility rent

 

10,348

 

 

10,092

 

Depreciation and amortization

 

10,586

 

 

10,048

 

Interest

 

46

 

 

98

 

Total costs and expenses

 

281,547

 

 

259,551

 

  Income from operations

 

15,629

 

 

10,012

 

  Non-operating income

 

5,685

 

 

4,323

 

Unrealized gains on marketable equity securities

 

14,399

 

 

1,386

 

  Income before income taxes

 

35,713

 

 

15,721

 

Income tax provision

 

(9,462

)

 

(4,436

)

Net income

 

26,251

 

 

11,285

 

  Net (income)/loss attributable to noncontrolling interest

 

(38

)

 

438

 

  Net income attributable to National HealthCare Corporation

$

26,213

 

$

11,723

 

  Net income per common share Basic

$

1.71

 

$

0.76

 

Diluted

$

1.69

 

$

0.76

 

  Weighted average common shares outstanding Basic

 

15,350,240

 

 

15,337,423

 

Diluted

 

15,505,096

 

 

15,356,335

 

  Dividends declared per common share

$

0.59

 

$

0.57

 

    Balance Sheet Data March 31 December 31 (in thousands)

 

2024

 

 

2023

 

(unaudited)   Cash, cash equivalents and marketable securities

$

217,506

 

$

223,620

 

Restricted cash, cash equivalents and marketable securities

 

180,598

 

 

167,971

 

Current assets

 

417,586

 

 

406,235

 

Property and equipment, net

 

488,698

 

 

493,329

 

Total assets

 

1,319,640

 

 

1,310,796

 

Current liabilities

 

206,429

 

 

214,476

 

NHC stockholders' equity

 

924,748

 

 

908,752

 

  Selected Operating Statistics Three Months Ended March 31

 

2024

 

 

2023

 

(unaudited) Skilled Nursing Per Diems: Medicare

$

581.75

 

$

555.85

 

Managed Care

 

470.56

 

 

444.95

 

Medicaid

 

265.27

 

 

236.78

 

Private Pay and Other

 

307.84

 

 

278.55

 

  Average Skilled Nursing Per Diem

$

343.48

 

$

315.81

 

  Skilled Nursing Patient Days: Medicare

 

81,156

 

 

84,032

 

Managed Care

 

65,431

 

 

58,446

 

Medicaid

 

281,821

 

 

276,506

 

Private Pay and Other

 

157,443

 

 

157,422

 

  Total Skilled Nursing Patient Days

 

585,851

 

 

576,406

 

 

 

The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts): Three Months Ended March 31

 

2024

 

 

2023

 

(unaudited)   Net income attributable to National Healthcare Corporation

$

26,213

 

$

11,723

 

Non-GAAP adjustments Unrealized gains on marketable equity securities

 

(14,399

)

 

(1,386

)

Operating results for newly opened operations not at full capacity (1)

 

(457

)

 

1,217

 

Gain on sale of unconsolidated company

 

(1,025

)

 

-

 

Stock-based compensation expense

 

793

 

 

639

 

Income tax provision on non-GAAP adjustments

 

3,923

 

 

(122

)

Non-GAAP Net income

$

15,048

 

$

12,071

 

  GAAP diluted earnings per share

$

1.69

 

$

0.76

 

Non-GAAP adjustments Unrealized gains on marketable equity securities

 

(0.69

)

 

(0.06

)

Operating results for newly opened operations not at full capacity (1)

 

(0.02

)

 

0.06

 

Gain on sale of unconsolidated company

 

(0.05

)

 

-

 

Stock-based compensation expense

 

0.04

 

 

0.03

 

Non-GAAP diluted earnings per share

$

0.97

 

$

0.79

 

  (1) The newly opened operations not at full capacity for the 2024 period presented consisted of operations opened from 2022 through 2024. This consisted of two behavioral health hospitals, two homecare agencies and two hospice agencies. The newly opened operations for the 2023 period presented consisted of operations opened from 2021 through 2023. This consisted of two behavioral health hospitals, one homecare agency and two hospice agencies.  

 

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Brian F. Kidd, SVP/CFO Phone: (615) 890-2020