National HealthCare Corporation (NYSE American: NHC), the
nation's oldest publicly traded senior health care company,
announced today net operating revenues and grant income for the
quarter ended September 30, 2023 totaled $288,485,000 compared to
$270,843,000 for the quarter ended September 30, 2022, an increase
of 6.5%. Excluding the seven skilled nursing facilities in
Massachusetts and New Hampshire in which we ceased operations in
September 2022, same-facility net operating revenues increased
11.8% during the third quarter of 2023 compared to the same period
a year ago.
For the quarter ended September 30, 2023, the reported GAAP net
income attributable to NHC was $10,388,000 compared to a net loss
of $2,429,000 for the same period in 2022. Excluding the unrealized
gains or losses in our marketable equity securities portfolio and
other non-GAAP adjustments, adjusted net income for the quarter
ended September 30, 2023 was $13,250,000 compared to $7,783,000 for
the same period in 2022 (*). The increase in non-GAAP earnings for
the quarter ended September 30, 2023 compared to the third quarter
of 2022 was primarily due to the continued occupancy increase in
our skilled nursing and assisted living facilities, skilled nursing
per diem increases from some of our government payors, and the
continued reduction of nurse agency staffing expenses within our
operations. The GAAP diluted earnings per share was $0.68 for the
quarter ended September 30, 2023 compared to a loss per share of
$(0.16) for the quarter ended September 30, 2022. Adjusted diluted
earnings per share were $0.86 and $0.50 for the quarters ended
September 30, 2023 and 2022, respectively (*).
(*) - See the tables below that provide a reconciliation of GAAP
to non-GAAP items.
About NHC
NHC affiliates operate for themselves and third parties 68
skilled nursing facilities with 8,732 beds. NHC affiliates also
operate 26 assisted living communities with 1,501 units, five
independent living communities with 475 units, three behavioral
health hospitals, 35 homecare agencies, and 30 hospice agencies.
NHC’s other services include Alzheimer’s and memory care units,
pharmacy services, a rehabilitation services company, and providing
management and accounting services to third party post-acute
operators. Other information about the company can be found on our
web site at www.nhccare.com.
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures as
the Company believes that these figures are helpful in allowing
investors to more accurately assess the ongoing nature of the
Company’s operations and measure the Company’s performance more
consistently across periods. Therefore, the Company believes this
information is meaningful in addition to the information contained
in the GAAP presentation of financial information. The presentation
of this additional non-GAAP financial information is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
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. All
forward-looking statements represent NHC’s best judgment as of the
date of this release.
Consolidated Statements of Operations (in thousands, except
share and per share amounts)
Three Months Ended
Nine Months Ended
September 30
September 30
2023
2022
2023
2022
(unaudited)
(unaudited)
Revenues and grant income: Net patient revenues
$
277,005
$
260,247
$
804,617
$
776,661
Other revenues
11,480
10,596
36,013
33,584
Government stimulus income
-
-
-
10,940
Net operating revenues and grant income
288,485
270,843
840,630
821,185
Costs and expenses: Salaries, wages and benefits
182,664
173,198
525,782
518,828
Other operating
72,490
72,883
217,213
218,279
Facility rent
10,094
10,294
30,087
30,770
Depreciation and amortization
10,135
10,253
30,266
30,011
Interest
77
137
268
451
Total costs and expenses
275,460
266,765
803,616
798,339
Income from operations
13,025
4,078
37,014
22,846
Non-operating income
4,097
2,731
12,116
8,451
Unrealized gains/(losses) on marketable equity securities
(3,093
)
(11,056
)
2,943
(11,479
)
Income/(loss) before income taxes
14,029
(4,247
)
52,073
19,818
Income tax (provision)/benefit
(3,908
)
1,140
(14,750
)
(5,415
)
Net income/(loss)
10,121
(3,107
)
37,323
14,403
Net loss attributable to noncontrolling interest
267
678
1,069
1,689
Net income/(loss) attributable to National HealthCare
Corporation
$
10,388
$
(2,429
)
$
38,392
$
16,092
Net income/(loss) per common share Basic
$
0.68
$
(0.16
)
$
2.51
$
1.04
Diluted
$
0.68
$
(0.16
)
$
2.50
$
1.04
Weighted average common shares outstanding Basic
15,299,913
15,445,569
15,311,453
15,438,375
Diluted
15,324,511
15,445,569
15,334,269
15,477,103
Dividends declared per common share
$
0.59
$
0.57
$
1.75
$
1.69
Balance Sheet Data
September 30
December 31
(in thousands)
2023
2022
(unaudited)
Cash, cash equivalents and marketable securities
$
210,494
$
182,589
Restricted cash, cash equivalents and marketable securities
162,492
158,067
Current assets
382,578
353,932
Property and equipment, net
498,266
506,532
Total assets
1,281,907
1,275,450
Current liabilities
204,694
197,887
Stockholders' equity
887,340
877,514
Selected Operating Statistics
Three Months Ended
Nine Months Ended
September 30
September 30
2023
2022
2023
2022
(unaudited)
(unaudited)
Skilled Nursing Per Diems: Medicare
$
551.82
$
535.60
$
552.21
$
540.30
Managed Care
489.18
429.22
460.20
425.39
Medicaid
256.46
237.61
248.99
230.79
Private Pay and Other
283.49
265.68
279.12
268.13
Average Skilled Nursing Per Diem
$
325.34
$
302.43
(1)
$
320.09
$
301.91
(1)
Skilled Nursing Patient Days: Medicare
75,215
81,940
239,228
258,961
Managed Care
61,979
52,956
179,992
163,823
Medicaid
290,887
302,500
852,074
919,931
Private Pay and Other
170,857
169,068
492,279
489,477
Total Skilled Nursing Patient Days
598,938
606,464
(1)
1,763,573
1,832,192
(1)
(1) For the three and nine months ended September 30,
2022, the skilled nursing per diems and patient days listed above
include the seven skilled nursing facilities that were located in
Massachusetts and New Hampshire through August 31, 2022. NHC exited
these seven skilled nursing facilities on September 1, 2022. For
the three months ended September 30, 2022, the exited Massachusetts
and New Hampshire skilled nursing facilities had an average skilled
nursing per diem of $295.98 and 35,619 total patient days. For the
nine months ended September 30, 2022, the exited Massachusetts and
New Hampshire skilled nursing facilities had an average skilled
nursing per diem of $294.64 and 140,105 total patient days. The
tables below provide reconciliations of GAAP to non-GAAP items (in
thousands, except per share amounts):
Three Months Ended
Nine Months Ended
September 30
September 30
2023
2022
2023
2022
(unaudited)
(unaudited)
Net income/(loss) attributable to National Healthcare
Corporation
$
10,388
$
(2,429
)
$
38,392
$
16,092
Non-GAAP adjustments Unrealized (gains)/losses on marketable equity
securities
3,093
11,056
(2,943
)
11,479
Operating results for newly opened operations not at full capacity
(2)
66
2,105
1,616
4,033
Stock-based compensation expense
708
639
2,119
1,980
Income tax (benefit)/provision on non-GAAP adjustments
(1,005
)
(3,588
)
(206
)
(4,548
)
Non-GAAP Net income
$
13,250
$
7,783
$
38,978
$
29,036
GAAP diluted earnings/(loss) per share
$
0.68
$
(0.16
)
$
2.51
$
1.04
Non-GAAP adjustments Unrealized (gains)/losses on marketable equity
securities
0.15
0.53
(0.14
)
0.56
Operating results for newly opened operations not at full capacity
(2)
-
0.10
0.07
0.19
Stock-based compensation expense
0.03
0.03
0.10
0.09
Non-GAAP diluted earnings per share
$
0.86
$
0.50
$
2.54
$
1.88
(2) The newly opened operations not at full capacity for the
2023 periods presented consisted of operations opened from 2021
through 2023. This consisted of two behavioral health hospitals,
two homecare agencies, and two hospice agencies. The newly opened
operations for the 2022 periods presented consisted of operations
opened from 2020 through 2022. This consisted of two behavioral
health hospitals, one homecare agency, and one hospice agency.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231103999819/en/
Brian F. Kidd, SVP/Chief Financial Officer Phone: (615)
890-2020
National HealthCare (AMEX:NHC)
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