NHC Reports Year End Earnings

MURFREESBORO, Tenn.--()--National HealthCare Corporation (NYSE Amex: NHC)(NYSE Amex: NHC.PRA), one of the nation's oldest long-term health care companies, today announced net income available to common shareholders of $55,401,000 or $4.02 per share basic for the year ended December 31, 2011, compared to $44,022,000 or $3.22 per share basic for the year ended December 31, 2010, an increase of 25.8%. Annual operating revenues in 2011 increased 7.3% from $720,653,000 to $773,537,000.

Fourth quarter of 2011 net income available to common shareholders was $12,358,000 or 89 cents per basic share, compared to $13,187,000 or 97 cents per basic share in the fourth quarter of 2010, a decrease of 6.3%. Operating revenues for the fourth quarter of 2011 increased 0.5% from $191,856,000 to $192,742,000.

The decrease in operating results for the fourth quarter of 2011 compared to the same quarter a year ago resulted primarily from the reporting in the fourth quarter of 2010 of a one-time gain of $3,563,000 ($2,172,000 after taxes) on the recovery of assets previously written off. If the 2010 fourth quarter gain were excluded, net income available to common shareholders for the quarter would have increased 12.2%.

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 75 long-term health care centers with 9,456 beds. NHC affiliates also operate 36 homecare programs, six independent living centers and 17 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 web site at www.nhccare.com.

         
Condensed Statements of Income
(in thousands, except share and per share amounts)
 
Three Months Ended Twelve Months Ended
December 31 December 31
Revenues: 2011 2010 2011 2010
Net patient revenues $ 178,958 $ 177,476 $ 715,489 $ 663,629
Other revenues   13,784     14,380     58,048     57,024  
Net operating revenues   192,742     191,856     773,537     720,653  
 
Costs and Expenses:
Salaries, wages and benefits 108,247 107,983 428,672 400,270
Other operating 50,355 50,359 198,439 197,016
Facility rent 9,992 9,646 39,736 38,086
Depreciation and amortization 7,557 7,251 28,901 27,141
Interest   110     117     443     513  
Total costs and expenses   176,261     175,356     696,191     663,026  
 
Income Before Non-Operating Income 16,481 16,500 77,346 57,627
Non-Operating Income   5,677     8,382     20,533     23,340  
 
Income Before Income Taxes 22,158 24,882 97,879 80,967
Income Tax Provision   (7,632 )   (9,527 )   (33,807 )   (28,272 )
 
Net Income 14,526 15,355 64,072 52,695
 
Dividends to Preferred Stockholders   (2,168 )   (2,168 )   (8,671 )   (8,673 )
 
Net Income Available to Common Stockholders $ 12,358   $ 13,187   $ 55,401   $ 44,022  
 
Earnings Per Common Share:
Basic $ 0.89 $ 0.97 $ 4.02 $ 3.22
Diluted $ 0.88 $ 0.97 $ 3.90 $ 3.22
 
Weighted average common shares outstanding
Basic 13,811,852 13,568,903 13,774,628 13,671,053
Diluted 16,442,767 13,584,253 16,414,023 13,676,476
 
 
Balance Sheet Data
(in thousands) Dec. 31 Dec. 31
2011 2010
Cash and marketable securities $ 280,271 $ 236,463
Current assets 362,186 322,616
Property and equipment, net 429,651 436,392
Total assets 865,672 829,505
Current liabilities 215,907 224,296
Long-term debt 10,000 10,000
Deferred revenue 11,785 13,990
Stockholders' equity 611,736 561,146
         
Selected Operating Statistics
 
Three Months Ended Twelve Months Ended
December 31 December 31
2011 2010 2011 2010
Per Diems:
Medicare $ 427.45 $ 446.20 $ 452.32 $ 398.68
Managed Care $ 400.80 $ 431.52 $ 415.03 $ 397.54
Medicaid $ 158.31 $ 156.29 $ 157.48 $ 156.71
Private Pay and Other $ 183.49 $ 181.66 $ 185.96 $ 184.61
 
Patient Days:
Medicare 115,000 109,180 466,325 438,754
Managed Care 27,899 22,763 106,489 88,711
Medicaid 287,798 287,193 1,139,880 1,111,203
Private Pay and Other   153,439   156,423   606,975   597,141
584,136 575,559 2,319,669 2,235,809
 
Average Per Diem $ 229.49 $ 229.06 $ 236.03 $ 221.21

Contacts

National HealthCare Corporation
Gerald Coggin, Sr. VP of Corporate Relations, 615-890-2020

Release Summary

NHC Announces Year End Results

Contacts

National HealthCare Corporation
Gerald Coggin, Sr. VP of Corporate Relations, 615-890-2020