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 and grant income for the quarter ended June 30, 2024 totaled $300,658,000 compared to $282,582,000 for the quarter ended June 30, 2023, an increase of 6.4%. Excluding the governmental stimulus income and supplemental Medicaid payments from various states, as well as the three skilled nursing facilities in Missouri in which we exited operations in February 2024, same-facility net operating revenues increased 8.0% during the second quarter of 2024 compared to the same period a year ago.

For the quarter ended June 30, 2024, the reported GAAP net income attributable to NHC was $26,844,000 compared to $16,281,000 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 June 30, 2024 was $15,612,000 compared to $13,658,000 for the same period in 2023 (*). The GAAP diluted earnings per share were $1.73 for the quarter ended June 30, 2024 compared to $1.06 for the quarter ended June 30, 2023. Adjusted diluted earnings per share were $1.00 and $0.89 for the quarters ended June 30, 2024 and 2023, respectively (*).

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

About NHC

As of August 1, 2024, NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,349 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 778 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

 

Six Months Ended

June 30

 

June 30

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

(unaudited)

 

(unaudited)

Revenues and grant income: Net patient revenues

$

279,918

 

$

269,605

 

$

565,741

 

$

527,612

 

Other revenues

 

11,295

 

 

12,977

 

 

22,648

 

 

24,533

 

Government stimulus income

 

9,445

 

 

-

 

 

9,445

 

 

-

 

Net operating revenues

 

300,658

 

 

282,582

 

 

597,834

 

 

552,145

 

  Costs and expenses: Salaries, wages and benefits

 

180,076

 

 

175,294

 

 

363,214

 

 

343,118

 

Other operating

 

78,154

 

 

73,234

 

 

155,583

 

 

144,723

 

Facility rent

 

10,570

 

 

9,901

 

 

20,918

 

 

19,993

 

Depreciation and amortization

 

9,338

 

 

10,083

 

 

19,924

 

 

20,131

 

Interest

 

-

 

 

93

 

 

46

 

 

191

 

Total costs and expenses

 

278,138

 

 

268,605

 

 

559,685

 

 

528,156

 

  Income from operations

 

22,520

 

 

13,977

 

 

38,149

 

 

23,989

 

  Non-operating income

 

4,956

 

 

3,696

 

 

10,641

 

 

8,019

 

Unrealized gains on marketable equity securities

 

9,124

 

 

4,650

 

 

23,523

 

 

6,036

 

  Income before income taxes

 

36,600

 

 

22,323

 

 

72,313

 

 

38,044

 

Income tax provision

 

(9,494

)

 

(6,406

)

 

(18,956

)

 

(10,842

)

Net income

 

27,106

 

 

15,917

 

 

53,357

 

 

27,202

 

  Net (income)/loss attributable to noncontrolling interest

 

(262

)

 

364

 

 

(300

)

 

802

 

  Net income attributable to National HealthCare Corporation

$

26,844

 

$

16,281

 

$

53,057

 

$

28,004

 

  Net income per common share Basic

$

1.74

 

$

1.06

 

$

3.45

 

$

1.83

 

Diluted

$

1.73

 

$

1.06

 

$

3.42

 

$

1.83

 

  Weighted average common shares outstanding Basic

 

15,391,535

 

 

15,297,435

 

 

15,371,150

 

 

15,317,319

 

Diluted

 

15,555,612

 

 

15,322,344

 

 

15,530,624

 

 

15,339,240

 

  Dividends declared per common share

$

0.61

 

$

0.59

 

$

1.20

 

$

1.16

 

    Balance Sheet Data

June 30

 

December 31

(in thousands)

 

2024

 

 

 

2023

 

(unaudited)   Cash, cash equivalents and marketable securities

$

270,019

 

$

223,620

 

Restricted cash, cash equivalents and marketable securities

 

170,264

 

 

167,971

 

Current assets

 

447,871

 

 

406,235

 

Property and equipment, net

 

487,193

 

 

493,329

 

Total assets

 

1,339,699

 

 

1,310,796

 

Current liabilities

 

216,935

 

 

214,476

 

Stockholders' equity

 

945,817

 

 

908,752

 

  Selected Operating Statistics

Three Months Ended

 

Six Months Ended

June 30

 

June 30

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

(unaudited)

 

(unaudited)

Skilled Nursing Per Diems: Medicare

$

577.71

 

$

548.74

 

$

579.81

 

$

552.38

 

Managed Care

 

447.96

 

 

445.00

 

 

459.48

 

 

444.97

 

Medicaid

 

264.49

 

 

253.22

 

 

264.88

 

 

245.12

 

Private Pay and Other

 

312.91

 

 

275.11

 

 

310.31

 

 

276.79

 

  Average Skilled Nursing Per Diem

$

338.86

 

$

318.92

 

(1)

$

341.21

 

(1)

$

317.38

 

(1)

  Skilled Nursing Patient Days: Medicare

 

74,602

 

 

79,981

 

 

155,758

 

 

164,013

 

Managed Care

 

62,957

 

 

59,567

 

 

128,388

 

 

118,013

 

Medicaid

 

279,504

 

 

284,681

 

 

561,325

 

 

561,187

 

Private Pay and Other

 

150,234

 

 

164,000

 

 

307,677

 

 

321,422

 

  Total Skilled Nursing Patient Days

 

567,297

 

 

588,229

 

(1)

 

1,153,148

 

(1)

 

1,164,635

 

(1)

  (1) NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the first quarter of 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $259.56 and 20,267 patient days. For the three months ended June 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $259.43 and 31,945 patient days. For the six months ended June 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $250.72 and 62,889 patient days.   The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):

Three Months Ended

 

Six Months Ended

June 30

 

June 30

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

(unaudited)

 

(unaudited)

  Net income attributable to National Healthcare Corporation

$

26,844

 

$

16,281

 

$

53,057

 

$

28,004

 

Non-GAAP adjustments Unrealized gains on marketable equity securities

 

(9,124

)

 

(4,650

)

 

(23,523

)

 

(6,036

)

Operating results for newly opened operations not at full capacity (2)

 

20

 

 

333

 

 

20

 

 

1,550

 

Stock-based compensation expense

 

1,176

 

 

772

 

 

1,969

 

 

1,411

 

Gain on sale of unconsolidated company

 

-

 

 

-

 

 

(1,024

)

 

-

 

Acquisition-related expenses (3)

 

2,194

 

 

-

 

 

2,194

 

 

-

 

Employee retention credit

 

(9,445

)

 

-

 

 

(9,445

)

 

-

 

Income tax provision on non-GAAP adjustments

 

3,947

 

 

922

 

 

7,750

 

 

800

 

Non-GAAP Net income

$

15,612

 

$

13,658

 

$

30,998

 

$

25,729

 

  GAAP diluted earnings per share

$

1.73

 

$

1.06

 

$

3.42

 

$

1.83

 

Non-GAAP adjustments Unrealized gains on marketable equity securities

 

(0.43

)

 

(0.23

)

 

(1.12

)

 

(0.29

)

Operating results for newly opened operations not at full capacity (2)

 

-

 

 

0.02

 

 

-

 

 

0.07

 

Stock-based compensation expense

 

0.05

 

 

0.04

 

 

0.10

 

 

0.07

 

Gain on sale of unconsolidated company

 

-

 

 

-

 

 

(0.05

)

 

-

 

Acquisition-related expenses (3)

 

0.10

 

 

-

 

 

0.10

 

 

-

 

Employee retention credit

 

(0.45

)

 

-

 

 

(0.45

)

 

-

 

Non-GAAP diluted earnings per share

$

1.00

 

$

0.89

 

$

2.00

 

$

1.68

 

  (2) The operating results for newly opened facilities or agencies not at full capacity include newly constructed healthcare facilities or agencies that are still considered in the start-up phase, which are two hospice agencies for the three and six months ended June 30, 3024. For the three and six months ended June 30, 2023, included are two behavioral health hospitals, two homecare agencies, and two hospice agencies. (3) Represents expenses incurred to acquire the White Oak operations that are not capitalizable.

 

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