National HealthCare Corporation reports second quarter 2024 results

MURFREESBORO, Tenn.–(BUSINESS WIRE)–National HealthCare Corporation (NYSE American: NHC), the nation’s oldest publicly traded senior healthcare company, today announced that net operating income and grant revenues for the quarter ended June 30, 2024 totaled $300,658,000 compared to $282,582,000 for the quarter ended June 30, 2023, an increase of 6.4%. Excluding revenues from the federal stimulus package and additional Medicaid payments from various states, as well as three Missouri nursing facilities where we closed operations in February 2024, net operating income for the same facilities increased 8.0% in the second quarter of 2024 compared to the same period a year earlier.

For the quarter ended June 30, 2024, reported GAAP net income attributable to NHC was $26,844,000 compared to $16,281,000 for the same period in 2023. Excluding unrealized gains in our marketable securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended June 30, 2024 was $15,612,000 compared to $13,658,000 for the same period in 2023. ^{. GAAP diluted earnings per share were $1.73 for the quarter ended June 30, 2024 compared to $1.06 for the quarter ended June 30, 2023. Adjusted diluted earnings per share were $1.00 and $0.89 for the quarters ended June 30, 2024 and 2023, respectively.}

– See the tables below which provide a reconciliation of GAAP and non-GAAP items.

About NHC

As of August 1, 2024, NHC affiliates operate, on their own and for 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 778 units, three behavioral health hospitals, 34 home care agencies and 30 hospice agencies. Other NHC services include Alzheimer’s and memory care units, pharmacy services, a rehabilitation services company and the provision of management and accounting services to third-party post-operative providers. Additional company information can be found on our website at www.nhccare.com.

Non-GAAP Financial Presentation

The Company provides certain non-GAAP financial measures because it believes that this data is helpful in enabling investors to more accurately evaluate the ongoing nature of the Company’s operations and to more consistently measure the Company’s performance over time. Therefore, the Company believes that this information is significant in addition to the information included in the GAAP presentation of financial information. The presentation of these additional non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, financial information prepared and presented in accordance with GAAP.
Forecast statements
	Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements involve risks and uncertainties and are not guarantees of future performance. These risks and uncertainties are described more fully from time to time in reports filed by NHC with the SEC, including its Forms 8-K, 10-Q and 10-K. All forward-looking statements represent NHC’s best judgment as of the date of this press release.						Consolidated Reports of Activities
	(in thousands, except per share and per share amounts)						Three months completed
		Six months completed			June 30			June 30			2024
	2023						2024
2023
(unexplored)	(unexplored)	Revenues and income from subsidies:		Net revenue from patients	$		279 918	$		269 605	$
565 741		$			527 612			Other income			11 295
12 977		22 648			24 533			Government stimulus income			9,445
–		9,445			–			Net operating income			300 658

282 582
597 834		552,145			Costs and expenses:			Salaries, Wages and Benefits			180 076
175 294		363 214			343 118			Other operational			78 154
73 234		155 583			144 723			Rent for the facility			10 570
9901		20 918			19,993			Depreciation and amortization			9338
10 083		19 924			20 131			Interest			–
93		46			191			Total costs and expenses			278,138

268 605		559 685			528,156			Operating income			22 520

13 977		38 149			23 989			Non-operating income			4,956
3,696		10 641			8,019			Unrealized Gains on Equity Securities			9,124

4650		23 523			6,036			Income before tax			36 600
22 323		72 313	38 044		Income Tax Regulations	(9,494		)	(6,406		)	(18,956
)		(10,842			)			Net income			27 106

15 917		53 357	27 202		Net income/loss attributable to minority interests			(262	)		364

(300	)	802		Net Income attributable to National Health Care Corporation	$		26 844	$		16 281	$

53 057
$	28 004	Net income per common share		Basic	$		1.74	$		1.06	$
3.45	$	1.83		Diluted	$		1.73	$		1.06	$

3.42
$		1.83			Weighted average number of common shares outstanding			Basic			15 391 535
15 297 435		15 371 150			15,317,319			Diluted			15,555,612

15 322 344	15 530 624	15 339 240		Declared dividends per ordinary share	$		0.61	$		0.59	$


1.20	$			1.16
Balance sheet data		June 30			December 31st
	(in thousands)

2024	2023	(unexplored)		Cash, cash equivalents and marketable securities	$
270 019		$			223 620
Restricted cash, cash equivalents and marketable securities		170 264			167 971
Current assets		447 871			406,235
Net fixed assets		487 193			493 329
Total assets		1 339 699			1 310 796
Current liabilities		216 935			214 476

Equity capital
	945 817							908 752
	Selected operational statistics							Three months completed
		Six months completed			June 30				June 30				2024
	2023							2024
2023
(unexplored)	(unexplored)	Daily rates for qualified nurses:		Medicare	$			577.71	$			548.74	$
579.81		$			552.38				Managed care				447.96
445.00		459.48			444.97				Medicaid				264.49
253.22		264.88			245.12				Private salary and others				312.91

275.11	310.31	276.79		Average daytime skilled nurse	$		^338.86	$	318.92		⁽¹⁾	$	341.21		⁽¹⁾

$
317.38		(1)			Patient care days as part of skilled nursing:				Medicare				74 602
79 981		155 758			164 013				Managed care				62 957
59 567		128 388			118 013				Medicaid				279 504
284 681		561 325			561 187				Private salary and others				150 234

164,000		307 677			321 422		^{Total number of nursing care days}		567 297		^{588 229}		(1)		^{1 153 148}

⁽¹⁾ 1 164 635

(1) (1)NHC closed three nursing homes in Missouri on March 1, 2024. During the first quarter of 2024, closed nursing homes in Missouri had an average nursing daily rate of $259.56 and 20,267 days of care. During the three months ended June 30, 2023, closed nursing homes in Missouri had an average nursing daily rate of $259.43 and 31,945 days of care. During the six months ended June 30, 2023, closed nursing homes in Missouri had an average nursing daily rate of $250.72 and 62,889 days of care.
	The tables below provide reconciliations of GAAP and non-GAAP items.							(in thousands, except per share amounts)
	:							Three months completed
		Six months completed			June 30				June 30				2024
	2023							2024

2023	(unexplored)	(unexplored)		Net Income attributable to National Health Care Corporation	$			26 844	$			16 281	$
53 057
$		28 004	Non-GAAP Adjustments		Unrealized Gains on Equity Securities	(9,124			)	(4,650			)	(23,523
)^(6,036		)			Operating results of newly opened operations that are not using their full potential				(2)				20
333		20			1,550				Share-based compensation costs				1,176
772		1,969			1,411				Profit from sale of unconsolidated company	–			–
(1,024 ⁾		–			Costs associated with acquisition				(3)				2,194
–		2,194	–		Loan for employee maintenance				(9,445	)			–
(9,445		)			–				Income Tax Provisions for Non-GAAP Adjustments				3,947
922	7750	800		Non-GAAP Net Income	$			15 612	$			13 658	$

30 998	$	25 729		Diluted GAAP EPS	$			1.73	$			1.06	$
3.42
$		1.83	Non-GAAP Adjustments		Unrealized Gains on Equity Securities	(0.43			)	(0.23			)	(1.12
) ^(0.29		)			Operating results of newly opened operations that are not using their full potential				(2)				–
0.02		–			0.07				Share-based compensation costs				0.05
0.04		0.10			0.07				Profit from sale of unconsolidated company	–			–
(0.05 ⁾		–			Costs associated with acquisition				(3)				0.10
–		0.10	–		Loan for employee maintenance				(0.45	)			–
(0.45	)	–		Diluted earnings per share Non-GAAP	$			1.00	$			0.89	$

^2.00 $
^1.68 (2)

The operating results of newly opened facilities or agencies that are not fully operational include newly constructed health care facilities or agencies that are still considered to be in the start-up phase, namely two hospice agencies for the three- and six-month periods ended June 30, 2024. For the three- and six-month periods ended June 30, 2023, two mental health hospitals, two home health agencies, and two hospice agencies are included.

(3)

Represents expenses incurred to acquire the White Oak business that are not capitalized.

ContactsBrian F. Kidd, Senior Vice President/Chief Financial OfficerPhone: (615) 890-2020