Subject: EARNINGS
NHC Reports First Quarter 2024 Earnings
National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended March 31, 2024 totaled $297,176,000 compared to $269,563,000 for the quarter ended March 31, 2023, an increase of 10.2%.
For the quarter ended March 31, 2024, the reported GAAP net income attributable to NHC was $26,213,000 compared to $11,723,000 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 March 31, 2024 was $15,048,000 compared to $12,071,000 for the same period in 2023, an increase of 24.7% (*). The GAAP diluted earnings per share were $1.69 for the quarter ended March 31, 2024 compared to $0.76 for the quarter ended March 31, 2023. Adjusted diluted earnings per share were $0.97 and $0.79 for the quarters ended March 31, 2024 and 2023, 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 65 skilled nursing facilities with 8,421 beds. NHC affiliates also operate 24 assisted living communities with 1,365 units, five independent living communities with 475 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 | |||||||||
| March 31 | |||||||||
|
2024 |
|
|
2023 |
|
||||
| (unaudited) | |||||||||
| Revenues: | |||||||||
| Net patient revenues | $ |
285,823 |
|
$ |
258,007 |
|
|||
| Other revenues |
|
11,353 |
|
|
11,556 |
|
|||
| Net operating revenues |
|
297,176 |
|
|
269,563 |
|
|||
| Costs and expenses: | |||||||||
| Salaries, wages and benefits |
|
183,138 |
|
|
167,824 |
|
|||
| Other operating |
|
77,429 |
|
|
71,489 |
|
|||
| Facility rent |
|
10,348 |
|
|
10,092 |
|
|||
| Depreciation and amortization |
|
10,586 |
|
|
10,048 |
|
|||
| Interest |
|
46 |
|
|
98 |
|
|||
| Total costs and expenses |
|
281,547 |
|
|
259,551 |
|
|||
| Income from operations |
|
15,629 |
|
|
10,012 |
|
|||
| Non-operating income |
|
5,685 |
|
|
4,323 |
|
|||
| Unrealized gains on marketable equity securities |
|
14,399 |
|
|
1,386 |
|
|||
| Income before income taxes |
|
35,713 |
|
|
15,721 |
|
|||
| Income tax provision |
|
(9,462 |
) |
|
(4,436 |
) |
|||
| Net income |
|
26,251 |
|
|
11,285 |
|
|||
| Net (income)/loss attributable to noncontrolling interest |
|
(38 |
) |
|
438 |
|
|||
| Net income attributable to National HealthCare Corporation | $ |
26,213 |
|
$ |
11,723 |
|
|||
| Net income per common share | |||||||||
| Basic | $ |
1.71 |
|
$ |
0.76 |
|
|||
| Diluted | $ |
1.69 |
|
$ |
0.76 |
|
|||
| Weighted average common shares outstanding | |||||||||
| Basic |
|
15,350,240 |
|
|
15,337,423 |
|
|||
| Diluted |
|
15,505,096 |
|
|
15,356,335 |
|
|||
| Dividends declared per common share | $ |
0.59 |
|
$ |
0.57 |
|
|||
| Balance Sheet Data | March 31 | December 31 | |||||||
| (in thousands) |
|
2024 |
|
|
2023 |
|
|||
| (unaudited) | |||||||||
| Cash, cash equivalents and marketable securities | $ |
217,506 |
|
$ |
223,620 |
|
|||
| Restricted cash, cash equivalents and marketable securities |
|
180,598 |
|
|
167,971 |
|
|||
| Current assets |
|
417,586 |
|
|
406,235 |
|
|||
| Property and equipment, net |
|
488,698 |
|
|
493,329 |
|
|||
| Total assets |
|
1,319,640 |
|
|
1,310,796 |
|
|||
| Current liabilities |
|
206,429 |
|
|
214,476 |
|
|||
| NHC stockholders' equity |
|
924,748 |
|
|
908,752 |
|
|||
| Selected Operating Statistics | |||||||
| Three Months Ended | |||||||
| March 31 | |||||||
|
2024 |
|
|
2023 |
|
||
| (unaudited) | |||||||
| Skilled Nursing Per Diems: | |||||||
| Medicare | $ |
581.75 |
|
$ |
555.85 |
|
|
| Managed Care |
|
470.56 |
|
|
444.95 |
|
|
| Medicaid |
|
265.27 |
|
|
236.78 |
|
|
| Private Pay and Other |
|
307.84 |
|
|
278.55 |
|
|
| Average Skilled Nursing Per Diem | $ |
343.48 |
|
$ |
315.81 |
|
|
| Skilled Nursing Patient Days: | |||||||
| Medicare |
|
81,156 |
|
|
84,032 |
|
|
| Managed Care |
|
65,431 |
|
|
58,446 |
|
|
| Medicaid |
|
281,821 |
|
|
276,506 |
|
|
| Private Pay and Other |
|
157,443 |
|
|
157,422 |
|
|
| Total Skilled Nursing Patient Days |
|
585,851 |
|
|
576,406 |
|
|
|
|||||||
| The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts): | |||||||
| Three Months Ended | |||||||
| March 31 | |||||||
|
2024 |
|
|
2023 |
|
||
| (unaudited) | |||||||
| Net income attributable to National Healthcare Corporation | $ |
26,213 |
|
$ |
11,723 |
|
|
| Non-GAAP adjustments | |||||||
| Unrealized gains on marketable equity securities |
|
(14,399 |
) |
|
(1,386 |
) |
|
| Operating results for newly opened operations not at full capacity (1) |
|
(457 |
) |
|
1,217 |
|
|
| Gain on sale of unconsolidated company |
|
(1,025 |
) |
|
- |
|
|
| Stock-based compensation expense |
|
793 |
|
|
639 |
|
|
| Income tax provision on non-GAAP adjustments |
|
3,923 |
|
|
(122 |
) |
|
| Non-GAAP Net income | $ |
15,048 |
|
$ |
12,071 |
|
|
| GAAP diluted earnings per share | $ |
1.69 |
|
$ |
0.76 |
|
|
| Non-GAAP adjustments | |||||||
| Unrealized gains on marketable equity securities |
|
(0.69 |
) |
|
(0.06 |
) |
|
| Operating results for newly opened operations not at full capacity (1) |
|
(0.02 |
) |
|
0.06 |
|
|
| Gain on sale of unconsolidated company |
|
(0.05 |
) |
|
- |
|
|
| Stock-based compensation expense |
|
0.04 |
|
|
0.03 |
|
|
| Non-GAAP diluted earnings per share | $ |
0.97 |
|
$ |
0.79 |
|
|
| (1) The newly opened operations not at full capacity for the 2024 period presented consisted of operations opened from 2022 through 2024. This consisted of two behavioral health hospitals, two homecare agencies and two hospice agencies. The newly opened operations for the 2023 period presented consisted of operations opened from 2021 through 2023. This consisted of two behavioral health hospitals, one homecare agency and two hospice agencies. | |||||||
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