NHC National HealthCare Corp

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 year ended December 31, 2024 totaled $1,307,382,000 compared to $1,141,544,000 for the year ended December 31, 2023, an increase of 14.5%. The increase in net operating revenues for the 2024 year compared to the 2023 year was due to a 9.4% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Manor (“White Oak”). The White Oak operations consist of 22 healthcare operations, which includes 15 skilled nursing facilities, two assisted living facilities, four independent living facilities, and a long-term care pharmacy.

For the year ended December 31, 2024, the reported GAAP net income attributable to NHC was $101,927,000 compared to $66,798,000 for the 2023 year. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2024 was $76,862,000 compared to $54,934,000 for the 2023 year (*), an increase of 39.9%. GAAP diluted earnings per share were $6.53 and $4.34 for the years ended December 31, 2024 and 2023, respectively. Adjusted diluted earnings per share were $4.93 and $3.55 for the years ended December 31, 2024 and 2023, respectively (*).

For the quarter ended December 31, 2024, the reported GAAP net income attributable to NHC was $6,081,000 compared to $28,406,000 for the same period in 2023. Excluding the unrealized gains or losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2024 was $25,954,000 compared to $15,955,000 for the same period in 2023, an increase of 62.7% (*). The GAAP diluted earnings per share were $0.39 and $1.83 for the quarters ended December 31, 2024 and 2023, respectively. Adjusted diluted earnings per share were $1.66 and $1.03 for the quarters ended December 31, 2024 and 2023, 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 80 skilled nursing facilities with 10,341 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 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 Years Ended December 31 December 31

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues and grant income: Net patient revenues

$

357,344

 

$

282,997

 

$

1,251,759

 

$

1,087,614

 

Other revenues

 

12,006

 

 

17,917

 

 

46,178

 

 

53,930

 

Government stimulus income

 

-

 

 

-

 

 

9,445

 

 

-

 

Net operating revenues and grant income

 

369,350

 

 

300,914

 

 

1,307,382

 

 

1,141,544

 

  Costs and expenses: Salaries, wages and benefits

 

234,321

 

 

186,562

 

 

810,930

 

 

712,344

 

Other operating

 

83,298

 

 

70,970

 

 

321,390

 

 

288,183

 

Facility rent

 

11,378

 

 

11,438

 

 

43,182

 

 

41,525

 

Depreciation and amortization

 

11,442

 

 

11,768

 

 

41,985

 

 

42,034

 

Interest

 

2,347

 

 

56

 

 

4,135

 

 

324

 

Total costs and expenses

 

342,786

 

 

280,794

 

 

1,221,622

 

 

1,084,410

 

  Income from operations

 

26,564

 

 

20,120

 

 

85,760

 

 

57,134

 

  Non-operating income

 

4,825

 

 

4,544

 

 

19,690

 

 

16,660

 

Unrealized gains/(losses) on marketable equity securities

 

(25,332

)

 

12,001

 

 

30,958

 

 

14,944

 

  Income before income taxes

 

6,057

 

 

36,665

 

 

136,408

 

 

88,738

 

Income tax provision

 

(28

)

 

(8,700

)

 

(34,322

)

 

(23,450

)

Net income

 

6,029

 

 

27,965

 

 

102,086

 

 

65,288

 

  Net (income)/loss attributable to noncontrolling interest

 

52

 

 

441

 

 

(159

)

 

1,510

 

  Net income attributable to National HealthCare Corporation

$

6,081

 

$

28,406

 

$

101,927

 

$

66,798

 

  Net income per common share Basic

$

0.39

 

$

1.86

 

$

6.62

 

$

4.36

 

Diluted

$

0.39

 

$

1.83

 

$

6.53

 

$

4.34

 

  Weighted average common shares outstanding Basic

 

15,420,658

 

 

15,306,253

 

 

15,393,782

 

 

15,310,142

 

Diluted

 

15,665,025

 

 

15,486,573

 

 

15,598,528

 

 

15,377,343

 

  Dividends declared per common share

$

0.61

 

$

0.59

 

$

2.42

 

$

2.34

 

    Balance Sheet Data December 31 December 31 (in thousands)

 

2024

 

 

2023

 

  Cash, cash equivalents and marketable securities

$

216,185

 

$

223,620

 

Restricted cash, cash equivalents and marketable securities

 

163,795

 

 

167,971

 

Current assets

 

424,408

 

 

406,235

 

Property and equipment, net

 

684,289

 

 

493,329

 

Total assets

 

1,524,429

 

 

1,310,796

 

Current liabilities, excluding long-term debt due within one year

 

227,297

 

 

214,476

 

Current and long-term debt

 

137,000

 

 

-

 

NHC stockholders' equity

 

980,161

 

 

908,752

 

  Selected Operating Statistics Three Months Ended Years Ended December 31 December 31

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Skilled Nursing Per Diems: Medicare

$

607.67

 

$

579.84

 

$

586.76

 

$

559.07

 

Managed Care

 

490.41

 

 

478.51

 

 

468.23

 

 

464.89

 

Medicaid

 

279.02

 

 

268.58

 

 

275.78

 

 

253.95

 

Private Pay and Other

 

321.12

 

 

290.85

 

 

316.80

 

 

282.14

 

  Average Skilled Nursing Per Diem

$

350.72

 

$

337.57

 

(1)

$

346.46

 

(1)

$

324.53

 

(1)

  Skilled Nursing Patient Days: Medicare

 

84,809

 

 

79,025

 

 

320,524

 

 

318,253

 

Managed Care

 

76,996

 

 

62,031

 

 

276,019

 

 

242,023

 

Medicaid

 

374,755

 

 

288,538

 

 

1,281,020

 

 

1,140,612

 

Private Pay and Other

 

191,926

 

 

170,916

 

 

677,449

 

 

663,195

 

  Total Skilled Nursing Patient Days

 

728,486

 

 

600,510

 

(1)

 

2,555,012

 

(1)

 

2,364,083

 

(1)

  (1) NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the first quarter of 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $259.56 and 20,267 patient days. For the three months ended December 31, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $253.84 and 31,761 patient days. For the year ended December 31, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $249.85 and 126,791 patient days.   The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts): Three Months Ended Years Ended December 31 December 31

 

2024

 

 

2023

 

 

2024

 

 

2023

 

  Net income attributable to National Healthcare Corporation

$

6,081

 

$

28,406

 

$

101,927

 

$

66,798

 

Non-GAAP adjustments Unrealized (gains)/losses on marketable equity securities

 

25,332

 

 

(12,001

)

 

(30,958

)

 

(14,944

)

Gain on sale of property and equipment

 

-

 

 

(6,230

)

 

-

 

 

(6,230

)

Gain on sale of unconsolidated company

 

-

 

 

-

 

 

(1,024

)

 

-

 

Operating results for newly opened operations not at full capacity (2)

 

(10

)

 

742

 

 

130

 

 

2,359

 

Stock-based compensation expense

 

1,098

 

 

663

 

 

4,160

 

 

2,782

 

Acquisition-related expenses (3)

 

435

 

 

-

 

 

3,266

 

 

-

 

Employee retention credit

 

-

 

 

-

 

 

(9,445

)

 

-

 

Income tax provision on non-GAAP adjustments

 

(6,982

)

 

4,375

 

 

8,806

 

 

4,169

 

Non-GAAP Net income

$

25,954

 

$

15,955

 

$

76,862

 

$

54,934

 

  GAAP diluted earnings per share

$

0.39

 

$

1.83

 

$

6.53

 

$

4.34

 

Non-GAAP adjustments Unrealized (gains)/losses on marketable equity securities

 

1.20

 

 

(0.57

)

 

(1.47

)

 

(0.72

)

Gain on sale of property and equipment

 

-

 

 

(0.30

)

 

-

 

 

(0.30

)

Gain on sale of unconsolidated company

 

-

 

 

-

 

 

(0.05

)

 

-

 

Operating results for newly opened operations not at full capacity (2)

 

-

 

 

0.04

 

 

0.01

 

 

0.10

 

Stock-based compensation expense

 

0.05

 

 

0.03

 

 

0.20

 

 

0.13

 

Acquisition-related expenses (3)

 

0.02

 

 

-

 

 

0.16

 

 

-

 

Employee retention credit

 

-

 

 

-

 

 

(0.45

)

 

-

 

Non-GAAP diluted earnings per share

$

1.66

 

$

1.03

 

$

4.93

 

$

3.55

 

  (2) The operating results for newly opened facilities or agencies not at full capacity include healthcare operations that are still considered in the start-up phase, which are two hospice agencies for the fourth quarter and year ended December 31, 3024. For the fourth quarter and year ended December 31, 2023, included are two behavioral health hospitals, two homecare agencies, and two hospice agencies. (3) Represents expenses incurred to acquire the White Oak operations that are not capitalizable.

 

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Brian F. Kidd, SVP/CFO Phone: (615) 890-2020