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, 2023 totaled $282,582,000 compared to $271,359,000 for the quarter ended June 30, 2022, an increase of 4.1%. Excluding the government stimulus income and the seven skilled nursing facilities in Massachusetts and New Hampshire in which we ceased operations in September 2022, same-facility net operating revenues increased 11.5% during the second quarter of 2023 compared to the same period a year ago.

For the quarter ended June 30, 2023, the reported GAAP net income attributable to NHC was $16,281,000 compared to $3,203,000 for the same period in 2022. Excluding the unrealized gains or losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended June 30, 2023 was $13,658,000 compared to $7,172,000 for the same period in 2022 (*). The increase in non-GAAP earnings for the quarter ended June 30, 2023 compared to the second quarter of 2022 was primarily due to the continued occupancy increase in our skilled nursing and assisted living facilities, skilled nursing per diem increases from some of our government payors, and the continued reduction of nurse agency staffing expense within our operations. The GAAP diluted earnings per share was $1.06 for the quarter ended June 30, 2023 compared to $0.21 for the quarter ended June 30, 2022. Adjusted diluted earnings per share were $0.89 and $0.46 for the quarters ended June 30, 2023 and 2022, 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 68 skilled nursing facilities with 8,732 beds. NHC affiliates also operate 23 assisted living communities with 1,181 units, five independent living communities with 475 units, three behavioral health hospitals, 35 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

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

(unaudited) (unaudited) Revenues and grant income: Net patient revenues

$

269,605

 

$

260,077

 

$

527,612

 

$

516,414

 

Other revenues

 

12,977

 

 

10,962

 

 

24,533

 

 

22,988

 

Government stimulus income

 

-

 

 

320

 

 

-

 

 

10,940

 

Net operating revenues and grant income

 

282,582

 

 

271,359

 

 

552,145

 

 

550,342

 

  Costs and expenses: Salaries, wages and benefits

 

175,294

 

 

174,936

 

 

343,118

 

 

345,630

 

Other operating

 

73,234

 

 

71,311

 

 

144,723

 

 

145,396

 

Facility rent

 

9,901

 

 

10,411

 

 

19,993

 

 

20,476

 

Depreciation and amortization

 

10,083

 

 

10,001

 

 

20,131

 

 

19,758

 

Interest

 

93

 

 

149

 

 

191

 

 

314

 

Total costs and expenses

 

268,605

 

 

266,808

 

 

528,156

 

 

531,574

 

  Income from operations

 

13,977

 

 

4,551

 

 

23,989

 

 

18,768

 

  Non-operating income

 

3,696

 

 

2,521

 

 

8,019

 

 

5,720

 

Unrealized gains/(losses) on marketable equity securities

 

4,650

 

 

(3,549

)

 

6,036

 

 

(423

)

  Income before income taxes

 

22,323

 

 

3,523

 

 

38,044

 

 

24,065

 

Income tax provision

 

(6,406

)

 

(1,362

)

 

(10,842

)

 

(6,555

)

Net income

 

15,917

 

 

2,161

 

 

27,202

 

 

17,510

 

  Net loss attributable to noncontrolling interest

 

364

 

 

1,042

 

 

802

 

 

1,011

 

  Net income attributable to National HealthCare Corporation

$

16,281

 

$

3,203

 

$

28,004

 

$

18,521

 

  Net income per common share Basic

$

1.06

 

$

0.21

 

$

1.83

 

$

1.20

 

Diluted

$

1.06

 

$

0.21

 

$

1.83

 

$

1.20

 

  Weighted average common shares outstanding Basic

 

15,297,435

 

 

15,452,402

 

 

15,317,319

 

 

15,434,718

 

Diluted

 

15,322,344

 

 

15,487,123

 

 

15,339,240

 

 

15,475,553

 

  Dividends declared per common share

$

0.59

 

$

0.57

 

$

1.16

 

$

1.12

 

    Balance Sheet Data

June 30

December 31 (in thousands)

 

2023

 

 

2022

 

(unaudited)   Cash, cash equivalents and marketable securities

$

193,444

 

$

182,589

 

Restricted cash, cash equivalents and marketable securities

 

167,683

 

 

158,067

 

Current assets

 

368,734

 

 

353,932

 

Property and equipment, net

 

501,890

 

 

506,532

 

Total assets

 

1,280,684

 

 

1,275,450

 

Current liabilities

 

197,798

 

 

197,887

 

Stockholders' equity

 

886,358

 

 

877,514

 

Selected Operating Statistics

Three Months Ended

Six Months Ended

June 30

June 30

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

(unaudited) (unaudited) Skilled Nursing Per Diems: Medicare

$

548.74

 

$

540.15

 

$

552.38

 

$

542.48

 

Managed Care

 

445.00

 

 

413.58

 

 

444.97

 

 

423.56

 

Medicaid

 

253.22

 

 

226.40

 

 

245.12

 

 

227.45

 

Private Pay and Other

 

275.11

 

 

268.70

 

 

276.79

 

 

269.42

 

  Average Skilled Nursing Per Diem

$

318.92

 

$

297.63

 

(1)

$

317.38

 

$

301.66

 

(1)

  Skilled Nursing Patient Days: Medicare

 

79,981

 

 

85,438

 

 

164,013

 

 

177,021

 

Managed Care

 

59,567

 

 

55,230

 

 

118,013

 

 

110,867

 

Medicaid

 

284,681

 

 

313,171

 

 

561,187

 

 

617,431

 

Private Pay and Other

 

164,000

 

 

166,454

 

 

321,422

 

 

320,409

 

  Total Skilled Nursing Patient Days

 

588,229

 

 

620,293

 

(1)

 

1,164,635

 

 

1,225,728

 

(1)

  (1) For the three and six months ended June 30, 2022, the skilled nursing per diems and patient days listed above include the seven skilled nursing facilities that were located in Massachusetts and New Hampshire. NHC exited these seven skilled nursing facilities on September 1, 2022. For the three months ended June 30, 2022, the exited Massachusetts and New Hampshire skilled nursing facilities had an average skilled nursing per diem of $297.02 and 52,320 total patient days. For the six months ended June 30, 2022, the exited Massachusetts and New Hampshire skilled nursing facilities had an average skilled nursing per diem of $294.20 and 104,486 total 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

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

(unaudited) (unaudited)   Net income attributable to National Healthcare Corporation

$

16,281

 

$

3,203

 

$

28,004

 

$

18,521

 

Non-GAAP adjustments Unrealized (gains)/losses on marketable equity securities

 

(4,650

)

 

3,549

 

 

(6,036

)

 

423

 

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

 

333

 

 

1,185

 

 

1,550

 

 

1,928

 

Stock-based compensation expense

 

772

 

 

629

 

 

1,411

 

 

1,341

 

Income tax (benefit)/provision on non-GAAP adjustments

 

922

 

 

(1,394

)

 

800

 

 

(960

)

Non-GAAP Net income

$

13,658

 

$

7,172

 

$

25,729

 

$

21,253

 

  GAAP diluted earnings per share

$

1.06

 

$

0.21

 

$

1.83

 

$

1.20

 

Non-GAAP adjustments Unrealized (gains)/losses on marketable equity securities

 

(0.23

)

 

0.16

 

 

(0.29

)

 

0.02

 

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

 

0.02

 

 

0.06

 

 

0.07

 

 

0.09

 

Stock-based compensation expense

 

0.04

 

 

0.03

 

 

0.07

 

 

0.06

 

Non-GAAP diluted earnings per share

$

0.89

 

$

0.46

 

$

1.68

 

$

1.37

 

  (2) The newly opened operations not at full capacity for the 2023 periods presented consisted of operations opened from 2021 through 2023. This consisted of two behavioral health hospitals, two homecare agencies, and two hospice agencies. The newly opened operations for the 2022 periods presented consisted of operations opened from 2020 through 2022. This consisted of two behavioral health hospitals, one homecare agency, and one hospice agency.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230804761218/en/

Brian F. Kidd, SVP/Chief Financial Officer Phone: (615) 890-2020