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Press release content from Business Wire. The AP news staff was not involved in its creation.

NHC Reports Third Quarter 2019 Earnings

November 5, 2019

MURFREESBORO, Tenn.--(BUSINESS WIRE)--Nov 5, 2019--

National HealthCare Corporation (NYSE American: NHC ), the nation’s oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended September 30, 2019 totaled $247,067,000 compared to $246,326,000 for the quarter ended September 30, 2018, an increase of 0.3%.

For the quarter ended September 30, 2019, reported GAAP net income attributable to NHC was $19,461,000 compared to $21,142,000 for the third quarter of 2018. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended September 30, 2019 was $12,934,000 compared to $16,024,000 for the third quarter of 2018 (1). For the quarter ended September 30, 2019, the reported GAAP diluted earnings per share was $1.27 and the adjusted diluted earnings per share was $0.84 (1).

(1) See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

NHC affiliates operate for themselves and third parties 75 skilled nursing facilities with 9,510 beds. NHC affiliates also operate 26 assisted living communities, five independent living communities, one behavioral health hospital, and 36 homecare programs. NHC’s other services include Alzheimer’s and memory care units, hospice services, 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 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 Income
(in thousands, except share and per share amounts)

Three Months Ended

 

Nine Months Ended

September 30

 

September 30

2019

 

2018

 

2019

 

2018

(unaudited)

 

(unaudited)

Revenues:
Net patient revenues

 $   235,090

 

 $     234,827

 

 $   706,465

 

 $   697,173

 

Other revenues

       11,977

 

         11,499

 

       36,038

 

       34,256

 

Net operating revenues

      247,067

 

       246,326

 

      742,503

 

      731,429

 

 
Costs and expenses:
Salaries, wages and benefits

      152,175

 

       149,188

 

      441,441

 

      434,749

 

Other operating

       66,730

 

         64,507

 

      203,760

 

      192,268

 

Facility rent

       10,167

 

         10,190

 

       30,602

 

       30,691

 

Depreciation and amortization

       10,663

 

         10,437

 

       31,515

 

       31,176

 

Interest

            764

 

           1,170

 

         2,644

 

         3,663

 

Total costs and expenses

      240,499

 

       235,492

 

      709,962

 

      692,547

 

 
Income from operations

         6,568

 

         10,834

 

       32,541

 

       38,882

 

 
Non-operating income

         6,663

 

           8,467

 

       20,936

 

       11,056

 

Unrealized gains on marketable equity securities

         9,312

 

           3,486

 

       16,096

 

            417

 

 
Income before income taxes

       22,543

 

         22,787

 

       69,573

 

       50,355

 

Income tax provision

        (3,167

)

          (1,700

)

      (15,284

)

        (9,792

)

Net income

       19,376

 

         21,087

 

       54,289

 

       40,563

 

 
Net loss attributable to noncontrolling interest

              85

 

               55

 

            152

 

            249

 

 
Net income attributable to National HealthCare Corporation

 $     19,461

 

 $      21,142

 

 $     54,441

 

 $     40,812

 

 
Net income per common share
Basic

 $        1.27

 

 $          1.39

 

 $        3.57

 

 $        2.68

 

Diluted

 $        1.27

 

 $          1.39

 

 $        3.55

 

 $        2.68

 

 
Weighted average common shares outstanding
Basic

 15,275,709

 

   15,225,654

 

 15,267,250

 

 15,221,217

 

Diluted

 15,373,617

 

   15,242,086

 

 15,350,308

 

 15,230,692

 

 
Dividends declared per common share

 $        0.52

 

 $          0.50

 

 $        1.54

 

 $        1.48

 

 
 
Balance Sheet Data
(in thousands)

Sept. 30

 

Dec. 31

2019

 

2018

(unaudited)

 

 

 
Cash, cash equivalents and marketable equity securities

 $   215,580

 

 $     183,470

 

Restricted cash, cash equivalents and marketable debt securities 

      158,378

 

       184,266

 

Current assets

      351,190

 

       322,009

 

Property and equipment, net

      539,604

 

       534,650

 

Total assets

   1,307,231

 

     1,080,948

 

Current liabilities

      181,088

 

       157,924

 

Long-term debt

       30,000

 

         55,000

 

NHC stockholders' equity

      771,570

 

       733,278

 

 
 
 
 
Selected Operating Statistics

Three Months Ended

 

Nine Months Ended

September 30

 

September 30

2019

 

2018 (1)

 

2019

 

2018 (1)

(unaudited)(unaudited)
Skilled Nursing Per Diems:
Medicare

 $      466.90

 

 $      463.38

 

 $   461.72

 

 $   462.50

 

Managed Care

        394.49

 

        400.52

 

      393.27

 

      400.32

 

Medicaid

        199.02

 

        192.11

 

      197.18

 

      190.31

 

Private Pay and Other

        244.77

 

        240.48

 

      245.35

 

      238.82

 

    
Average Skilled Nursing Per Diem

 $      270.24

 

 $      269.51

 

 $   270.69

 

 $   270.49

 

 
Skilled Nursing Patient Days:
Medicare

       103,838

 

       114,462

 

    325,832

 

    359,246

 

Managed Care

        63,693

 

        62,811

 

    188,986

 

    182,109

 

Medicaid

       333,362

 

       325,326

 

    977,882

 

    945,089

 

Private Pay and Other

       180,258

 

       180,460

 

    534,067

 

    532,071

 

    
Total Skilled Nursing Patient Days

       681,151

 

       683,059

 

 2,026,767

 

 2,018,515

 

 
(1) A skilled nursing facility in Madisonville, Kentucky was sold in the fourth quarter of 2018.   The per diems and patient days for this facility have been excluded in the 2018 column for comparative purposes.  
 
 
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts; unaudited):
 

Three Months Ended

 

Nine Months Ended

September 30

 

September 30

2019

 

2018

 

2019

 

2018

 
Net income attributable to National Healthcare Corporation

 $      19,461

 

 $      21,142

 

 $   54,441

 

 $   40,812

 

Non-GAAP adjustments
Unrealized gains on marketable equity securities

         (9,312

)

         (3,486

)

     (16,096

)

         (417

)

Gain on acquisitions of equity method investments

                 -

 

         (2,050

)

      (1,975

)

      (2,050

)

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

             152

 

             917

 

          884

 

       1,972

 

Stock-based compensation expense

             340

 

             361

 

       1,448

 

       1,538

 

Legal costs and charges related to Caris' legal investigation

                 -

 

                 -

 

              -

 

       8,364

 

Tax Cuts and Jobs Act of 2017 adjustment

                 -

 

         (1,434

)

              -

 

      (1,434

)

Provision of income taxes on non-GAAP adjustments

          2,293

 

             574

 

       4,092

 

      (2,150

)

Non-GAAP Net income

 $      12,934

 

 $      16,024

 

 $   42,794

 

 $   46,635

 

 
GAAP diluted earnings per share

 $         1.27

 

 $         1.39

 

 $      3.55

 

 $      2.68

 

Non-GAAP adjustments
Unrealized gains on marketable equity securities

           (0.45

)

           (0.17

)

        (0.78

)

        (0.02

)

Gain on acquisitions of equity method investments

               -  

 

           (0.13

)

        (0.09

)

        (0.13

)

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

               -  

 

            0.04

 

         0.04

 

         0.10

 

Stock-based compensation expense

            0.02

 

            0.02

 

         0.07

 

         0.07

 

Legal costs and charges related to Caris' legal investigation

               -  

 

               -  

 

            -  

 

         0.46

 

Tax Cuts and Jobs Act of 2017 adjustment

               -  

 

           (0.10

)

            -  

 

        (0.10

)

Non-GAAP diluted earnings per share

 $         0.84

 

 $         1.05

 

 $      2.79

 

 $      3.06

 

 
(2) The newly opened facilities for the 2019 period presented consist of facilities opened from 2017 through 2019 (one skilled nursing facility, two assisted living facilities, and one memory care facility).  The newly opened facilities for the 2018 period presented consist of facilities opened from 2016 through 2018 (two skilled nursing facilities and three assisted living facilities).
 
 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191105006166/en/

CONTACT: Brian F. Kidd, SVP/PAO

Phone: (615) 890-2020

KEYWORD: TENNESSEE UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: NURSING HEALTH HOSPITALS OTHER HEALTH MANAGED CARE GENERAL HEALTH

SOURCE: National HealthCare Corporation

Copyright Business Wire 2019.

PUB: 11/05/2019 04:32 PM/DISC: 11/05/2019 04:32 PM

http://www.businesswire.com/news/home/20191105006166/en