NHC Reports First Quarter Earnings

Business Wire

MURFREESBORO, Tenn.--(BUSINESS WIRE)-- National HealthCare Corporation (NYSE MKT: NHC), the nation's oldest publicly traded senior and post-acute health care company, today announced net operating revenues for the three months ended March 31, 2017 totaled $239,243,000 compared to $229,588,000 for the same three months of 2016, an increase of 4.2%. For the three months ended March 31, 2017, net income attributable to NHC was $12,728,000 compared to $13,699,000 for the quarter ended March 31, 2016. Excluding the operating losses from the two newly constructed skilled nursing facilities and two assisted living facilities placed in service less than twelve months ago, net income attributable to NHC for the quarter ended March 31, 2017 would have been $13,799,000, which is an increase of 1.9% over the same three month period in 2016.

Net income attributable to NHC was $0.84 per common share basic for the quarter ended March 31, 2017 compared to $0.92 per common share basic for the quarter ended March 31 2016.

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, and include, among others, the following: liabilities and other claims asserted against us and patient care liabilities, as well as the resolution of current litigation; availability of insurance and assets for indemnification; national and local economic conditions; including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including our compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; and other factors referenced or incorporated by reference in the S.E.C. filings. The risks included here are not exhaustive. All forward-looking statements represent NHC’s best judgment as of the date of this release.

About NHC

NHC affiliates operate for themselves and third parties 76 long-term health care centers with 9,597 beds. NHC affiliates also operate 36 homecare programs, five independent living centers and 24 assisted living communities. NHC’s other services include Alzheimer’s units, long-term care pharmacies, hospice, a rehabilitation services company, and providing management and accounting services to third parties. Other information about the company can be found on our website at www.nhccare.com. The reference to our website is not intended to incorporate our website into this press release.


Consolidated Statements of Income
(in thousands, except share and per share amounts)

			Three Months Ended
			March 31
			2017			2016
Revenues:			(unaudited)
	Net patient revenues		$	227,959		$	218,106
	Other revenues			11,284			11,482
		Net operating revenues		239,243			229,588

Costs and Expenses:
	Salaries, wages and benefits			138,055			130,020
	Other operating			63,883			61,309
	Facility rent			10,088			10,327
	Depreciation and amortization			10,295			9,354
	Interest			1,058			954
		Total costs and expenses		223,379			211,964

Income Before Non-Operating Income				15,864			17,624
Non-Operating Income				4,768			4,773

Income Before Income Taxes				20,632			22,397
Income Tax Provision				(7,999	)		(8,698	)
Net Income				12,633			13,699
	Add: Net loss attributable to noncontrolling interest			(95	)		-

Net Income Attributable to National HealthCare Corporation			$	12,728		$	13,699

Earnings Per Common Share
	Basic			0.84		$	0.92
	Diluted			0.84		$	0.91

Weighted average common shares outstanding
	Basic			15,173,491			14,916,905
	Diluted			15,212,133			15,135,446

Dividends declared per common share			$	0.45		$	0.40

		Balance Sheet Data
		(in thousands)	March 31			Dec. 31
			2017			2016
		Cash and marketable securities	$	183,437		$	164,348
		Restricted cash and marketable securities		169,552			188,958
		Current assets		304,450			290,857
		Property and equipment, net		557,395			559,624
		Total assets		1,078,976			1,087,447
		Current liabilities		132,062			150,928
		Long-term debt		120,000			120,000
		NHC Stockholders' equity		675,850			669,611


Selected Operating Statistics
(unaudited)
	Three Months Ended
	March 31
	2017		2016
Per Diems:
Medicare	$	462.38	$	445.03
Managed Care		411.78		404.12
Medicaid		177.05		173.78
Private Pay and Other		231.65		222.60

Average Per Diem	$	264.37	$	255.82

Patient Days:
Medicare		123,896		124,692
Managed Care		59,618		55,669
Medicaid		315,288		317,461
Private Pay and Other		176,875		174,609
		675,677		672,431