NHC Reports Third 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 September 30, 2014 of $10,662,000 compared to $17,710,000 for the quarter ended September 30, 2013. Financial results for the third quarter of 2014 compared to the prior year period were negatively impacted by a decrease in non-operating income. Excluding the decrease in non-operating income along with the 2013 third quarter events involving the recovery of notes receivable and the settlement of a legal dispute (approximately $6,534,000 of income after income taxes), net income available to common shareholders for the quarter ended September 30, 2014 would have increased $572,000 compared to the prior year period, which is a 5.1% increase.

Revenues for the three months ended September 30, 2014 totaled $218,223,000 compared to $195,772,000 for the same three months of 2013, an increase of 11.5%. Net income was $0.77 per common share basic for the quarter ended September 30, 2014 compared to $1.28 per common share basic for the quarter ended September 30, 2013.

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 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.

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.

 

Consolidated Statements of Income

(in thousands, except share and per share amounts)

 
      Three Months Ended       Nine Months Ended
September 30 September 30
2014     2013 2014     2013
Revenues: (unaudited) (unaudited)
Net patient revenues $ 207,772     $ 182,966 $ 613,173     $ 539,797
Other revenues   10,451     12,806     32,136     42,364  
Net operating revenues   218,223     195,772     645,309     582,161  
 
Costs and Expenses:
Salaries, wages and benefits 128,938 113,739 374,277 330,160
Other operating 55,365 45,752 166,803 148,891
Facility rent 9,913 9,889 29,712 29,627
Depreciation and amortization 8,639 7,045 25,144 20,973
Interest   632     82     1,566     248  
Total costs and expenses   203,487     176,507     597,502     529,899  
 
Income Before Non-Operating Income 14,736 19,265 47,807 52,262
Non-Operating Income   3,937     11,171     12,790     24,421  
 
Income Before Income Taxes 18,673 30,436 60,597 76,683
Income Tax Provision   (5,844 )   (10,559 )   (22,028 )   (28,659 )
 
Net Income 12,829 19,877 38,569 48,024
 
Dividends to Preferred Stockholders   (2,167 )   (2,167 )   (6,502 )   (6,503 )
 
Net Income Available to Common Stockholders $ 10,662   $ 17,710   $ 32,067   $ 41,521  
 
Earnings Per Common Share
Basic $ 0.77 $ 1.28 $ 2.32 $ 3.00
Diluted $ 0.75 $ 1.19 $ 2.25 $ 2.88
 
Weighted average common shares outstanding
Basic 13,805,430 13,820,449 13,838,891 13,832,706
Diluted 14,236,512 16,686,915 14,230,031 16,701,491
 
Dividends declared per common share $ 0.34 $ 0.32 $ 1.00 $ 2.88
 
 

Balance Sheet Data

(in thousands) Sept. 30 Dec. 31
2014     2013
Cash and marketable securities $ 185,446 $ 186,714
Restricted cash and marketable securities 167,079 155,932
Current assets 298,836 299,666
Property and equipment, net 507,413 456,798
Total assets 1,043,002 984,358
Current liabilities 166,343 167,760
Long-term debt 10,000 10,000
Stockholders' equity 710,117 688,112
 
 
Selected Operating Statistics
(unaudited)
      Three Months Ended       Nine Months Ended
September 30 September 30
2014     2013 2014     2013
Per Diems:        
Medicare $ 436.72 $ 430.55 $ 434.14 $ 427.32
Managed Care $ 400.17 $ 406.76 $ 398.61 $ 406.13
Medicaid $ 168.01 $ 164.35 $ 168.58 $ 164.28
Private Pay and Other $ 211.41 $ 209.01 $ 211.50 $ 202.21
 
Patient Days:
Medicare 120,729 118,627 371,501 360,566
Managed Care 49,454 37,384 140,558 108,187
Medicaid 317,753 275,596 931,954 790,482
Private Pay and Other   181,661   154,329   521,394   445,766
669,597 585,936 1,965,407 1,705,001
 
Average Per Diem $ 245.38 $ 245.47 $ 246.61 $ 245.17
 

Contacts

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

Release Summary

NHC Announces Net Income Available to Common Shareholders of $10,662,000 for the quarter ending September 30, 2014.

Contacts

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