NHC Reports First Quarter 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 for the quarter ended March 31, 2014 of $11,061,000 compared to $11,637,000 for the quarter ended March 31, 2013, a decrease of 4.9%. For the quarter ended March 31, 2014, non-operating income decreased $2,040,000 compared to the quarter a year ago. Excluding the non-operating income decrease, net income available to common shareholders for the quarter ended March 31, 2014 would have been $12,305,000, which is an increase of 5.7% over the same three month period in 2013.

Net revenues for the three months ended March 31, 2014 totaled $210,531,000 compared to $194,378,000 for the same three months of 2013, an increase of 8.3%. Net income was $0.80 per common share basic for the quarter ended March 31, 2014 compared to $0.84 per common share basic for the quarter ended March 31, 2013.

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 73 long-term health care centers with 9,410 beds. NHC affiliates also operate 37 homecare programs, five 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.

       
Consolidated Statements of Income
(in thousands, except share and per share amounts)
 
Three Months Ended
March 31
2014 2013
Revenues: (unaudited)
Net patient revenues $ 199,769 $ 178,430
Other revenues   10,762     15,948  
Net operating revenues   210,531     194,378  
 
Costs and Expenses:
Salaries, wages and benefits 119,725 107,063
Other operating 55,742 54,411
Facility rent 9,886 9,868
Depreciation and amortization 7,900 6,956
Interest   290     84  
Total costs and expenses   193,543     178,382  
 
Income Before Non-Operating Income 16,988 15,996
Non-Operating Income   4,572     6,618  
 
Income Before Income Taxes 21,560 22,614
Income Tax Provision   (8,331 )   (8,809 )
 
Net Income 13,229 13,805
 
Dividends to Preferred Stockholders   (2,168 )   (2,168 )
 
Net Income Available to Common Stockholders $ 11,061   $ 11,637  
 
Earnings Per Common Share
Basic $ 0.80 $ 0.84
Diluted $ 0.78 $ 0.82
 
Weighted average common shares outstanding
Basic 13,843,190 13,861,584
Diluted 14,170,453 14,111,752
 
Dividends declared per common share $ 0.32 $ 0.30
 
Balance Sheet Data
(in thousands) March 31 Dec. 31
2014 2013
Cash and marketable securities $ 197,598 $ 186,714
Restricted cash and marketable securities 157,241 155,932
Current assets 452,525 436,928
Property and equipment, net 497,201 456,798
Total assets 1,037,304 980,725
Current liabilities 248,220 250,359
Long-term debt 10,000 10,000

Stockholders’ equity

707,501 688,112
 
       
Selected Operating Statistics
(unaudited)
Three Months Ended
March 31
2014 2013
Per Diems:
Medicare $ 431.94 $ 428.71
Managed Care $ 399.61 $ 416.69
Medicaid $ 169.26 $ 165.24
Private Pay and Other $ 212.90 $ 198.07
 
Patient Days:
Medicare 126,148 120,916
Managed Care 43,953 36,041
Medicaid 300,775 255,425
Private Pay and Other   162,993   145,952
633,869 558,334
 
Average Per Diem $ 248.73 $ 247.11

Contacts

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

Release Summary

NHC announces net income available to common shareholders for the first quarter of 2014 of $11,061,000.

Contacts

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