NHC Reports Third Quarter Earnings

Business Wire

MURFREESBORO, Tenn.--(BUSINESS WIRE)-- National HealthCare Corporation (NYSE-American: NHC), the nation's oldest publicly traded senior health care company, today announced net income available to common shareholders for the quarter ended September 30, 2017 of $11,352,000 compared to $11,110,000 for the quarter ended September 30, 2016, an increase of 2.2%. Excluding the operating losses from the newly constructed skilled nursing facility and two assisted living facilities placed in service in 2017, net income available to common shareholders for the quarter ended September 30, 2017 would have been $11,824,000.

Net operating revenues for the three months ended September 30, 2017 totaled $241,985,000 compared to $231,281,000 for the same three months of 2016, an increase of 4.6%. Net income was $0.75 per common share basic for the quarter ended September 30, 2017 compared to $0.73 per common share basic for the quarter ended September 30, 2016, an increase of 2.7%.

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 skilled nursing centers with 9,597 beds. NHC affiliates also operate 36 homecare programs, 24 assisted living communities and five independent 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 web site at www.nhccare.com.


Consolidated Statements of Income
(in thousands, except share and per share amounts)
	Three Months Ended						Nine Months Ended
	September 30						September 30
	2017			2016			2017			2016
	(unaudited)
Revenues:
Net patient revenues	$	230,048		$	218,647		$	685,854		$	653,240
Other revenues		11,937			12,634			34,831			35,397
Net operating revenues		241,985			231,281			720,685			688,637

Costs and Expenses:
Salaries, wages and benefits		145,900			140,403			426,639			405,491
Other operating		64,039			58,956			190,778			177,571
Facility rent		10,106			10,314			30,273			30,960
Depreciation and amortization		10,833			9,998			31,609			28,847
Interest		1,322			1,020			3,599			2,913
Total costs and expenses		232,200			220,691			682,898			645,782

Income Before Non-Operating Income		9,785			10,590			37,787			42,855
Non-Operating Income		6,090			5,091			16,047			14,789

Income Before Income Taxes		15,875			15,681			53,834			57,644
Income Tax Provision		(4,691	)		(4,571	)		(19,448	)		(20,969	)
Net Income		11,184			11,110			34,386			36,675

Loss Attributable To Noncontrolling Interest		168			-			349			-

Net Income Attributable to National HealthCare Corporation	$	11,352		$	11,110		$	34,735		$	36,675

Earnings Per Common Share
Basic		0.75		$	0.73		$	2.29		$	2.42
Diluted		0.75		$	0.73		$	2.28		$	2.41

Weighted average common shares outstanding
Basic		15,195,394			15,198,696			15,186,315			15,128,728
Diluted		15,220,567			15,222,648			15,217,797			15,216,838

Dividends declared per common share	$	0.48		$	0.45		$	1.41		$	1.30

Balance Sheet Data
(in thousands)	Sept. 30			Dec. 31
	2017			2016
	(unaudited)
Cash, cash equivalents and marketable securities	$	213,553		$	164,348
Restricted cash, cash equivalents and marketable securities		176,560			188,958
Current assets		336,096			290,857
Property and equipment, net		552,343			559,624
Total assets		1,110,837			1,087,447
Current liabilities		147,609			150,928
Long-term debt		120,000			120,000
NHC Stockholders' equity		690,868			669,611


Selected Operating Statistics
(unaudited)
	Three Months Ended				Nine Months Ended
	September 30				September 30
	2017		2016		2017		2016
Per Diems:
Medicare	$	459.63	$	453.08	$	461.38	$	449.26
Managed Care		402.86		402.45		407.16		401.86
Medicaid		179.08		174.12		177.49		173.92
Private Pay and Other		230.73		224.68		231.76		224.04

Average Per Diem	$	261.35	$	254.62	$	262.69	$	255.04

Patient Days:
Medicare		117,634		117,503		360,285		359,667
Managed Care		64,327		54,591		186,487		166,293
Medicaid		325,886		322,564		959,779		958,782
Private Pay and Other		183,339		181,175		541,827		531,783
		691,186		675,833		2,048,378		2,016,525