141 0 Kommentare NHC Reports 2019 Year End Earnings

National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the year ended December 31, 2019 totaled $996,383,000 compared to $980,349,000 for the year ended December 31, 2018, an increase of 1.6%. For the year ended December 31, 2019, reported GAAP net income attributable to NHC was $68,211,000 compared to $58,964,000 for the 2018 year, an increase of 15.7%. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2019 was $59,616,000 compared to $64,373,000 for the 2018 year⁽¹⁾.

GAAP diluted earnings per share were $4.44 and $3.87 for the years ended December 31, 2019 and 2018, respectively, an increase of 14.7%. Adjusted diluted earnings per share were $3.88 and $4.22 for the years ended December 31, 2019 and 2018, respectively⁽¹⁾.

Net operating revenues for the quarter ended December 31, 2019 totaled $253,880,000 compared to $248,920,000 for the same three months in 2018, an increase of 2.0%. For the quarter ended December 31, 2019, reported GAAP net income attributable to NHC was $13,770,000 compared to $18,152,000 for the fourth quarter of 2018. Excluding the unrealized gains/losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the fourth quarter of 2019 was $16,822,000 compared to $17,749,000 for the fourth quarter of 2018.

⁽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 9,513 beds. NHC affiliates also operate 25 assisted living communities, five independent living communities, one behavioral health hospital, and 35 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 from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q and 10-K, and include, among others, the following: liabilities and other claims asserted against us and patient care liabilities, as well as the resolution of current litigation; availability of insurance and assets for indemnification; national and local economic conditions; including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including our compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries; and other factors referenced or incorporated by reference in the S.E.C. filings. The risks included here are not exhaustive. 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						Year Ended
	December 31						December 31
	2019			2018			2019			2018
	(unaudited)
Revenues:
Net patient revenues	$	241,407		$	235,601		$	947,872		$	932,774
Other revenues		12,473			13,319			48,511			47,575
Net operating revenues		253,880			248,920			996,383			980,349

Costs and expenses:
Salaries, wages and benefits		151,390			147,972			592,831			582,721
Other operating		64,682			61,770			268,442			254,038
Facility rent		9,916			10,232			40,518			40,923
Depreciation and amortization		10,904			10,718			42,419			41,894
Interest		491			1,034			3,135			4,697
Total costs and expenses		237,383			231,726			947,345			924,273

Income from operations		16,497			17,194			49,038			56,076

Non-operating income		5,811			6,614			26,747			17,670
Unrealized gains (losses) on marketable equity securities		(3,866	)		721			12,230			1,138

Income before income taxes		18,442			24,529			88,015			74,884
Income tax provision		(4,755	)		(6,393	)		(20,039	)		(16,185	)
Net income		13,687			18,136			67,976			58,699

Net loss attributable to noncontrolling interest		83			16			235			265

Net income attributable to National HealthCare Corporation	$	13,770		$	18,152		$	68,211		$	58,964

Net income per common share
Basic	$	0.90		$	1.19		$	4.47		$	3.87
Diluted	$	0.89		$	1.19		$	4.44		$	3.87

Weighted average common shares outstanding
Basic		15,278,771			15,235,772			15,270,154			15,224,886
Diluted		15,389,104			15,255,107			15,360,046			15,236,826

Dividends declared per common share	$	0.52		$	0.50		$	2.06		$	1.98

Balance Sheet Data
(in thousands)	Dec. 31			Dec. 31
	2019			2018

Cash, cash equivalents and marketable equity securities	$	202,787		$	183,470
Restricted cash and restricted marketable debt securities		158,082			184,266
Current assets		341,053			322,009
Property and equipment, net		535,430			534,650
Total assets		1,286,648			1,080,948
Current liabilities		194,763			157,924
Long-term debt		-			55,000
NHC stockholders' equity		778,593			733,278

Selected Operating Statistics
	Three Months Ended						Year Ended
	December 31						December 31
	2019			2018⁽¹⁾			2019			2018⁽¹⁾
	(unaudited)
Skilled Nursing Per Diems:
Medicare	$	498.10		$	463.14		$	470.74		$	462.66
Managed Care		403.30			389.49			396.17			397.70
Medicaid		200.71			197.87			197.95			192.25
Private Pay and Other		243.68			237.86			242.99			238.57

Average Skilled Nursing Per Diem	$	275.03		$	269.42		$	271.07		$	270.22

Skilled Nursing Patient Days:
Medicare		102,798			114,396			428,367			473,642
Managed Care		62,956			57,981			251,691			240,090
Medicaid		343,348			326,422			1,332,025			1,271,511
Private Pay and Other		174,979			182,758			698,554			714,829

Total Skilled Nursing Patient Days		684,081			681,557			2,710,637			2,700,072

⁽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						Year Ended
	December 31						December 31
	2019			2018			2019			2018

Net income attributable to National Healthcare Corporation	$	13,770		$	18,152		$	68,211		$	58,964
Non-GAAP adjustments
Unrealized losses (gains) on marketable equity securities		3,866			(721	)		(12,230	)		(1,138	)
Operating results for newly opened facilities not at full capacity ⁽²⁾		(172	)		1,604			712			3,562
Stock-based compensation expense		430			240			1,878			1,778
Gain on acquisitions of equity method investments		-			-			(1,975	)		(2,050	)
Gain on sale of real estate/healthcare facilities		-			(1,668	)		-			(1,668	)
Legal costs and charges related to Caris' legal investigation		-			-			-			8,364
U.S. Tax Cuts and Jobs Act of 2017 adjustment		-			-			-			(1,434	)
Provision (benefit) of income taxes on non-GAAP adjustments		(1,072	)		142			3,020			(2,005	)
Non-GAAP Net income	$	16,822		$	17,749		$	59,616		$	64,373

GAAP diluted earnings per share	$	0.89		$	1.19		$	4.44		$	3.87
Non-GAAP adjustments
Unrealized losses (gains) on marketable equity securities		0.19			(0.03	)		(0.59	)		(0.06	)
Operating results for newly opened facilities not at full capacity ⁽²⁾		(0.01	)		0.08			0.03			0.17
Stock-based compensation expense		0.02			0.01			0.09			0.08
Gain on acquisitions of equity method investments		-			-			(0.09	)		(0.13	)
Gain on sale of real estate/healthcare facilities		-			(0.09	)		-			(0.08	)
Legal costs and charges related to Caris' legal investigation		-			-			-			0.46
U.S. Tax Cuts and Jobs Act of 2017 adjustment		-			-			-			(0.09	)
Non-GAAP diluted earnings per share	$	1.09		$	1.16		$	3.88		$	4.22

⁽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).