NHC Reports First Quarter Earnings

MURFREESBORO, Tenn.--()--National HealthCare Corporation (NYSE MKT: NHC), the nation's oldest publicly traded senior and post-acute health care company, today announced net operating revenues for the three months ended March 31, 2017 totaled $239,243,000 compared to $229,588,000 for the same three months of 2016, an increase of 4.2%. For the three months ended March 31, 2017, net income attributable to NHC was $12,728,000 compared to $13,699,000 for the quarter ended March 31, 2016. Excluding the operating losses from the two newly constructed skilled nursing facilities and two assisted living facilities placed in service less than twelve months ago, net income attributable to NHC for the quarter ended March 31, 2017 would have been $13,799,000, which is an increase of 1.9% over the same three month period in 2016.

Net income attributable to NHC was $0.84 per common share basic for the quarter ended March 31, 2017 compared to $0.92 per common share basic for the quarter ended March 31 2016.

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 76 long-term health care centers with 9,597 beds. NHC affiliates also operate 36 homecare programs, five independent living centers and 24 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 website at www.nhccare.com. The reference to our website is not intended to incorporate our website into this press release.

   
Consolidated Statements of Income
(in thousands, except share and per share amounts)
   
Three Months Ended
March 31
2017 2016
Revenues: (unaudited)
Net patient revenues $ 227,959 $ 218,106
Other revenues   11,284     11,482  
Net operating revenues   239,243     229,588  
 
Costs and Expenses:
Salaries, wages and benefits 138,055 130,020
Other operating 63,883 61,309
Facility rent 10,088 10,327
Depreciation and amortization 10,295 9,354
Interest   1,058     954  
Total costs and expenses   223,379     211,964  
 
Income Before Non-Operating Income 15,864 17,624
Non-Operating Income   4,768     4,773  
 
Income Before Income Taxes 20,632 22,397
Income Tax Provision   (7,999 )   (8,698 )
Net Income 12,633 13,699
Add: Net loss attributable to noncontrolling interest   (95 )   -  
 
Net Income Attributable to National HealthCare Corporation $ 12,728   $ 13,699  
 
Earnings Per Common Share
Basic 0.84 $ 0.92
Diluted 0.84 $ 0.91
 
Weighted average common shares outstanding
Basic 15,173,491 14,916,905
Diluted 15,212,133 15,135,446
 
Dividends declared per common share $ 0.45 $ 0.40
 
Balance Sheet Data
(in thousands) March 31 Dec. 31
2017 2016
Cash and marketable securities $ 183,437 $ 164,348
Restricted cash and marketable securities 169,552 188,958
Current assets 304,450 290,857
Property and equipment, net 557,395 559,624
Total assets 1,078,976 1,087,447
Current liabilities 132,062 150,928
Long-term debt 120,000 120,000
NHC Stockholders' equity 675,850 669,611
 
 
Selected Operating Statistics
(unaudited)
  Three Months Ended
March 31
2017 2016
Per Diems:
Medicare $ 462.38 $ 445.03
Managed Care 411.78 404.12
Medicaid 177.05 173.78
Private Pay and Other 231.65 222.60
 
Average Per Diem $ 264.37 $ 255.82
 
Patient Days:
Medicare 123,896 124,692
Managed Care 59,618 55,669
Medicaid 315,288 317,461
Private Pay and Other   176,875   174,609
675,677 672,431
 

Contacts

National HealthCare Corporation
John K. Lines, SVP, General Counsel, 615-890-2020

Release Summary

NHC reports earnings for the first quarter of 2017.

Contacts

National HealthCare Corporation
John K. Lines, SVP, General Counsel, 615-890-2020