NHC Reports a 25.7% Increase in Net Income Available to Common Shareholders

MURFREESBORO, Tenn.--(BUSINESS WIRE)--National HealthCare Corporation (NYSE Amex: NHC)(NYSE Amex: NHC.PR.A), a publicly traded long-term health care company, today announced net income available to common shareholders for the quarter ended June 30, 2009 of $9,199,000 compared to $7,318,000 for the quarter ended June 30, 2008, an increase of 25.7%.

Revenues for the three months ended June 30, 2009 totaled $172,036,000 compared to $160,562,000 for the same three months of 2008, an increase of 7.1%. Net income was $.67 per basic common share for the quarter ended June 30, 2009 compared to $.57 per basic common share for the quarter ended June 30, 2008.

NHC operates, through various subsidiaries, for itself and third parties, 76 long-term health care centers with 9,772 beds. NHC also operates, through subsidiaries, 33 homecare programs, seven independent living centers and 23 assisted living centers. 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.

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.

Condensed Statements of Income
(in thousands, except share and per share amounts)
					Three Months Ended								Six Months Ended
					June 30								June 30
Revenues:					2009				2008				2009				2008
	Net patient revenues				$	155,849			$	143,163			$	308,916			$	287,128
	Other revenues					16,187				17,399				31,789				33,575
		Net revenues				172,036				160,562				340,705				320,703
Costs and Expenses:
	Salaries, wages and benefits					91,875				86,312				182,601				173,853
	Other operating					47,421				44,639				95,389				89,953
	Rent					8,064				7,876				16,032				15,794
	Depreciation and amortization					6,287				6,024				12,530				12,021
	Interest					188				170				395				389
		Total costs and expenses				153,835				145,021				306,947				292,010
Income Before Income Taxes						18,201				15,541				33,758				28,693
	Income Tax Provision					(6,834	)			(6,055	)			(13,207	)			(11,035	)
Net Income						11,367				9,486				20,551				17,658
Dividends to Preferred Shareholders						(2,168	)			(2,168	)			(4,336	)			(4,336	)
Net income available to common shareholders					$	9,199			$	7,318			$	16,215			$	13,322
Earnings Per Common Share:
	Basic				$	0.67			$	0.57			$	1.21			$	1.04
	Diluted				$	0.67			$	0.56			$	1.20			$	1.02
Weighted average common shares outstanding
	Basic					13,658,141				12,779,582				13,444,679				12,773,639
	Diluted					13,675,285				13,125,402				13,466,047				13,121,810
			Balance Sheet Data
			(in thousands)		June 30				Dec. 31
					2009				2008
			Cash and marketable securities		$	242,042			$	232,463
			Current assets			325,305				312,752
			Total assets			793,272				777,296
			Current liabilities			242,382				251,919
			Long-term obligations			25,959				25,807
			Deferred lease credit			3,029				3,635
			Deferred revenue			17,157				15,118
			Stockholders' equity			504,745				480,817

Selected Operating Statistics
		Three Months Ended						Six Months Ended
		June 30						June 30
		2009			2008			2009			2008
Per Diems:
Medicare		$	381.21		$	362.45		$	381.23		$	362.95
Medicaid			151.87			145.64			151.01			146.09
Private Pay and Other			226.10			216.44			225.22			214.72
Patient Days:
Medicare			105,130			102,748			210,982			206,354
Medicaid			276,145			284,123			544,916			549,163
Private Pay and Other			169,258			165,727			337,193			330,048
			550,533			552,598			1,093,091			1,085,565
Average Per Diem		$	218.49		$	208.03		$	218.34		$	208.18