ex_553019.htm

EX-99.1 2 ex_553019.htm EXHIBIT 99.1 ex_553019.htm

Exhibit 99.1

For release: August 4, 2023

Contact: Brian F. Kidd, SVP/Chief Financial Officer

Phone: (615) 890-2020

NHC Reports Second Quarter 2023 Earnings

MURFREESBORO, Tenn. -- 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.

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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

(in thousands)

	June 30		December 31
	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

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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.

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