MURFREESBORO, Tenn., November 08, 2024--(BUSINESS WIRE)--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, 2024 totaled $340,198,000 compared to $288,485,000 for the quarter ended September 30, 2023, an increase of 17.9%. The increase in net operating revenues for the third quarter of 2024 compared to the same period last year was primarily related to the August 1, 2024 acquisition of White Oak Manor ("White Oak"). The White Oak operations consist of 21 healthcare operations, which includes 15 skilled nursing facilities, two assisted living facilities, and four independent living facilities.
For the quarter ended September 30, 2024, the reported GAAP net income attributable to NHC was $42,789,000 compared to $10,388,000 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 September 30, 2024 was $19,910,000 compared to $13,250,000 for the same period in 2023, an increase of 50.3% (*). The GAAP diluted earnings per share were $2.73 for the quarter ended September 30, 2024 compared to $0.68 for the quarter ended September 30, 2023. Adjusted diluted earnings per share were $1.27 and $0.86 for the quarters ended September 30, 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 10,349 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 32 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
2024
2023
2024
2023
(unaudited)
(unaudited)
Revenues and grant income:
Net patient revenues
$
328,674
$
277,005
$
894,415
$
804,617
Other revenues
11,524
11,480
34,172
36,013
Government stimulus income
-
-
9,445
-
Net operating revenues and grant income
340,198
288,485
938,032
840,630
Costs and expenses:
Salaries, wages and benefits
213,395
182,664
576,609
525,782
Other operating
82,509
72,490
238,092
217,213
Facility rent
10,886
10,094
31,804
30,087
Depreciation and amortization
10,619
10,135
30,543
30,266
Interest
1,742
77
1,788
268
Total costs and expenses
319,151
275,460
878,836
803,616
Income from operations
21,047
13,025
59,196
37,014
Non-operating income
4,224
4,097
14,865
12,116
Unrealized gains/(losses) on marketable equity securities
32,767
(3,093
)
56,290
2,943
Income before income taxes
58,038
14,029
130,351
52,073
Income tax provision
(15,338
)
(3,908
)
(34,294
)
(14,750
)
Net income
42,700
10,121
96,057
37,323
Net (income)/loss attributable to noncontrolling interest
89
267
(211
)
1,069
Net income attributable to National HealthCare Corporation
$
42,789
$
10,388
$
95,846
$
38,392
Net income per common share
Basic
$
2.78
$
0.68
$
6.23
$
2.51
Diluted
$
2.73
$
0.68
$
6.15
$
2.50
Weighted average common shares outstanding
Basic
15,411,680
15,299,913
15,384,758
15,311,453
Diluted
15,667,321
15,324,511
15,576,294
15,334,269
Dividends declared per common share
$
0.61
$
0.59
$
1.81
$
1.75
Balance Sheet Data
September 30
December 31
(in thousands)
2024
2023
(unaudited)
Cash, cash equivalents and marketable securities
$
249,561
$
223,620
Restricted cash, cash equivalents and marketable securities
177,179
167,971
Current assets
445,726
406,235
Property and equipment, net
686,425
493,329
Total assets
1,562,707
1,310,796
Current liabilities, excluding long-term debt due within one year
240,446
214,476
Current and long-term debt
147,000
-
NHC stockholders' equity
983,468
908,752
Selected Operating Statistics
Three Months Ended
Nine Months Ended
September 30
September 30
2024
2023
2024
2023
(unaudited)
(unaudited)
Skilled Nursing Per Diems:
Medicare
$
578.12
$
551.82
$
579.24
$
552.21
Managed Care
459.94
489.18
459.64
460.20
Medicaid
290.00
256.46
274.44
248.99
Private Pay and Other
323.36
283.49
315.09
279.12
Average Skilled Nursing Per Diem
$
350.85
$
325.34
(1)
$
344.76
(1)
$
320.09
(1)
Skilled Nursing Patient Days:
Medicare
79,957
75,215
235,715
239,228
Managed Care
70,635
61,979
199,023
179,992
Medicaid
344,940
290,887
906,265
852,074
Private Pay and Other
177,846
170,857
485,523
492,279
Total Skilled Nursing Patient Days
673,378
598,938
(1)
1,826,526
(1)
1,763,573
(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 September 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $244.20 and 32,141 patient days. For the nine months ended September 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $248.51 and 95,030 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
2024
2023
2024
2023
(unaudited)
(unaudited)
Net income attributable to National Healthcare Corporation
$
42,789
$
10,388
$
95,846
$
38,392
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
(32,767
)
3,093
(56,290
)
(2,943
)
Operating results for newly opened operations not at full capacity (2)
120
66
140
1,616
Stock-based compensation expense
1,093
708
3,062
2,119
Gain on sale of unconsolidated company
-
-
(1,024
)
-
Acquisition-related expenses (3)
637
-
2,831
-
Employee retention credit
-
-
(9,445
)
-
Income tax provision on non-GAAP adjustments
8,038
(1,005
)
15,789
(206
)
Non-GAAP Net income
$
19,910
$
13,250
$
50,909
$
38,978
GAAP diluted earnings per share
$
2.73
$
0.68
$
6.15
$
2.51
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
(1.55
)
0.15
(2.67
)
(0.14
)
Operating results for newly opened operations not at full capacity (2)
0.01
-
0.01
0.07
Stock-based compensation expense
0.05
0.03
0.15
0.10
Gain on sale of unconsolidated company
-
-
(0.05
)
-
Acquisition-related expenses (3)
0.03
-
0.13
-
Employee retention credit
-
-
(0.45
)
-
Non-GAAP diluted earnings per share
$
1.27
$
0.86
$
3.27
$
2.54
(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 three and nine months ended September 30, 3024. For the three and nine months ended September 30, 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.