NHC Reports Second Quarter Earnings

MURFREESBORO, Tenn.--()--National HealthCare Corporation (NYSE MKT: NHC) (NYSE MKT: NHC.PRA), the nation's oldest publicly traded senior health care company, today announced net income available to common shareholders for the quarter ended June 30, 2014 of $10,344,000 compared to $12,174,000 for the quarter ended June 30, 2013. Financial results for the second quarter of 2014 compared to the prior year period were negatively impacted by a decrease in non-operating income and also start-up expenses incurred from the eleven newly leased or constructed skilled nursing centers. Excluding the decrease in non-operating income and the start-up losses from the eleven skilled nursing centers, net income available to common shareholders for the quarter ended June 30, 2014 would have been $12,414,000, which is an increase of 2.0% over the same three month period in 2013.

Net operating revenues for the three months ended June 30, 2014 totaled $216,555,000 compared to $192,011,000 for the same three months of 2013, an increase of 12.8%. Net income was $0.75 per common share basic for the quarter ended June 30, 2014 compared to $0.88 per common share basic for the quarter ended June 30, 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 skilled nursing centers with 9,410 beds. NHC affiliates also operate 37 homecare programs, five independent living centers and 18 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 Six Months Ended
June 30 June 30
2014 2013 2014 2013
Revenues: (unaudited) (unaudited)
Net patient revenues $ 205,632 $ 178,401 $ 405,401 $ 356,831
Other revenues   10,923     13,610     21,685     29,558  
Net operating revenues   216,555     192,011     427,086     386,389  
 
Costs and Expenses:
Salaries, wages and benefits 125,614 109,358 245,339 216,421
Other operating 55,696 48,728 111,438 103,139
Facility rent 9,913 9,870 19,799 19,738
Depreciation and amortization 8,605 6,972 16,505 13,928
Interest   644     82     934     166  
Total costs and expenses   200,472     175,010     394,015     353,392  
 
Income Before Non-Operating Income 16,083 17,001 33,071 32,997
Non-Operating Income   4,281     6,632     8,853     13,250  
 
Income Before Income Taxes 20,364 23,633 41,924 46,247
Income Tax Provision   (7,853 )   (9,291 )   (16,184 )   (18,100 )
 
Net Income 12,511 14,342 25,740 28,147
 
Dividends to Preferred Stockholders   (2,167 )   (2,168 )   (4,335 )   (4,336 )
 
Net Income Available to Common Stockholders $ 10,344   $ 12,174   $ 21,405   $ 23,811  
 
Earnings Per Common Share
Basic $ 0.75 $ 0.88 $ 1.54 $ 1.72
Diluted $ 0.72 $ 0.86 $ 1.50 $ 1.68
 
Weighted average common shares outstanding
Basic 13,868,470 13,816,536 13,855,900 13,838,936
Diluted 14,282,785 16,682,970 14,226,887 16,708,889
 
Dividends declared per common share $ 0.34 $ 0.32 $ 0.66 $ 0.62
 
Balance Sheet Data
(in thousands) June 30 Dec. 31
2014 2013
Cash and marketable securities $ 193,376 $ 186,714
Restricted cash and marketable securities 162,405 155,932
Current assets 311,014 299,666
Property and equipment, net 502,288 456,798
Total assets 1,044,589 984,358
Current liabilities 160,020 167,760
Long-term debt 10,000 10,000
Stockholders' equity 716,807 688,112
 
 
Selected Operating Statistics

(unaudited)

      Three Months Ended     Six Months Ended
June 30 June 30
2014     2013 2014     2013
Per Diems:
Medicare $ 433.88 $ 422.78 $ 432.90 $ 425.74
Managed Care $ 396.04 $ 394.51 $ 397.77 $ 405.80
Medicaid $ 168.51 $ 163.26 $ 168.88 $ 164.24
Private Pay and Other $ 210.28 $ 199.15 $ 211.54 $ 198.61
 
Patient Days:
Medicare 124,624 121,023 250,772 241,939
Managed Care 47,151 34,762 91,104 70,803
Medicaid 313,426 259,461 614,201 514,886
Private Pay and Other   176,740   145,485   339,733   291,437
661,941 560,731 1,295,810 1,119,065
 
Average Per Diem $ 245.83 $ 242.92 $ 247.25 $ 245.01
 

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 Q2 2014 of $10,344,000

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Contacts

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