National HealthCare Corporation Reports First Quarter 2024 Earnings

MURFREESBORO, Tenn.--(BUSINESS WIRE)--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.

Contacts

Brian F. Kidd, SVP/CFO
Phone: [phone]