NHC Reports Year End Earnings

MURFREESBORO, Tenn.--()--National HealthCare Corporation (NYSE MKT: NHC)(NYSE MKT: NHC.PRA), the nation's oldest publicly traded long-term health care company, today announced net income available to common shareholders of $55,942,000 or $4.05 per share basic for the year ended December 31, 2013, compared to $50,629,000 or $3.65 per share basic for the year ended December 31, 2012. Annual net operating revenues in 2013 increased 3.7% from $761,002,000 to $788,957,000, despite the automatic 2% cuts known as "sequestration" that began on April 1, 2013 for Medicare providers.

Operating results for the 2013 year compared to the 2012 year were favorably impacted by a gain on the recovery of notes receivable in the amount of $5,454,000 (approximately $3,327,000 after income taxes), by the positive results within our accrued risk reserves, as well as the continued efforts to reduce expenses in our skilled nursing facilities.

Fourth quarter of 2013 net income available to common shareholders was $14,421,000 or $1.04 per basic share, compared to $13,727,000 or 99 cents per basic share in the fourth quarter of 2012, an increase of 5.1%. Net operating revenues for the fourth quarter of 2013 increased 6.6% from $193,977,000 to $206,796,000.

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; 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 69 long-term health care centers with 8,943 beds. NHC affiliates also operate 38 homecare programs, five independent living centers and 15 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.

       
Consolidated Statements of Income
(in thousands, except share and per share amounts)
 
Three Months Ended Twelve Months Ended
December 31 December 31
  2013     2012     2013     2012  
Revenues: (unaudited)
Net patient revenues $ 196,040 $ 180,175 $ 735,837 $ 705,386
Other revenues   10,756     13,802     53,120     55,616  
Net operating revenues   206,796     193,977     788,957     761,002  
 
Costs and Expenses:
Salaries, wages and benefits 123,400 108,906 453,560 426,934
Other operating 46,098 46,959 194,989 196,230
Facility rent 9,822 9,848 39,449 39,355
Depreciation and amortization 7,574 7,624 28,547 29,792
Interest   83     110     331     455  
Total costs and expenses   186,977     173,447     716,876     692,766  
 
Income Before Non-Operating Income 19,819 20,530 72,081 68,236
Non-Operating Income   5,674     6,699     30,095     25,245  
 
Income Before Income Taxes 25,493 27,229 102,176 93,481
Income Tax Provision   (8,904 )   (11,334 )   (37,563 )   (34,181 )
 
Net Income 16,589 15,895 64,613 59,300
 
Dividends to Preferred Stockholders   (2,168 )   (2,168 )   (8,671 )   (8,671 )
 
Net Income Available to Common Stockholders $ 14,421   $ 13,727   $ 55,942   $ 50,629  
 
Earnings Per Common Share
Basic $ 1.04 $ 0.99 $ 4.05 $ 3.65
Diluted $ 0.99 $ 0.95 $ 3.87 $ 3.57
 
Weighted average common shares outstanding
Basic 13,820,554 13,872,472 13,829,626 13,852,709
Diluted 16,690,915 16,657,861 16,698,803 16,598,816
 
Dividends declared per common share $ 0.32 $ 1.30 $ 1.26 $ 2.20
 
Balance Sheet Data
(in thousands) Dec. 31 Dec. 31
  2013     2012  
Cash and marketable securities $ 186,714 $ 173,951
Restricted cash and marketable securities 155,932 146,770
Current assets 436,928 417,245
Property and equipment, net 456,798 420,907
Total assets 980,725 924,700
Current liabilities 250,359 228,761
Long-term debt 10,000 10,000
Stockholders' equity 688,112 656,148
 
 
Selected Operating Statistics
(unaudited)
  Three Months Ended   Twelve Months Ended
December 31 December 31
  2013     2012   2013     2012
Per Diems:
Medicare $ 435.34 $ 434.47 $ 429.32 $ 430.13
Managed Care $ 406.30 $ 408.76 $ 406.18 $ 408.22
Medicaid $ 167.81 $ 165.68 $ 165.26 $ 159.65
Private Pay and Other $ 210.84 $ 192.95 $ 204.52 $ 192.42
 
Patient Days:
Medicare 119,150 118,006 479,716 478,767
Managed Care 40,413 33,387 148,600 124,801
Medicaid 304,460 270,200 1,094,942 1,088,944
Private Pay and Other   160,514   151,004   606,280   599,966
624,537 572,597 2,329,538 2,292,478
 
Average Per Diem $ 245.37 $ 242.44 $ 245.22 $ 238.25

Contacts

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

Release Summary

NHC announces earnings for the year ended December 31, 2013.

Contacts

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