NHC Reports First Quarter 2023 Earnings

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 March 31, 2023 totaled $269,563,000 compared to $278,983,000 for the quarter ended March 31, 2022, a decrease of 3.4%. The decrease in net operating revenues during the first quarter of 2023 was primarily driven by the reduction in government stimulus income of $10.6 million compared to the first quarter a year ago, as well as us exiting seven skilled nursing facilities in Massachusetts and New Hampshire during the third quarter of 2022. Excluding the government stimulus income and the seven skilled nursing facilities in the Massachusetts and New Hampshire, same-facility net operating revenues increased 7.1% during the first quarter of 2023 compared to the same period a year ago.

For the quarter ended March 31, 2023, the reported GAAP net income attributable to NHC was $11,723,000 compared to $15,318,000 for the same period in 2022. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended March 31, 2023 was $12,071,000 compared to $14,081,000 for the same period in 2022 ^(*). The decrease in non-GAAP earnings for the quarter ended March 31, 2023 compared to the first quarter of 2022 was primarily due to the $10.6 million decrease of government stimulus income recorded. The GAAP diluted earnings per share was $0.76 for the quarter ended March 31, 2023 compared to $0.99 for the quarter ended March 31, 2022. Adjusted diluted earnings per share were $0.79 and $0.91 for the quarters ended March 31, 2023 and 2022, 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 68 skilled nursing facilities with 8,732 beds. NHC affiliates also operate 23 assisted living communities with 1,181 units, five independent living communities with 475 units, three behavioral health hospitals, 34 homecare agencies, and 30 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
	March 31
		2023				2022
	(unaudited)
Revenues and grant income:
Net patient revenues	$	258,007			$	256,337
Other revenues		11,556				12,026
Government stimulus income		-				10,620
Net operating revenues and grant income		269,563				278,983
Costs and expenses:
Salaries, wages and benefits		167,824				170,694
Other operating		71,489				74,085
Facility rent		10,092				10,065
Depreciation and amortization		10,048				9,757
Interest		98				165
Total costs and expenses		259,551				264,766
Income from operations		10,012				14,217
Non-operating income		4,323				3,199
Unrealized gains on marketable equity securities		1,386				3,126
Income before income taxes		15,721				20,542
Income tax provision		(4,436	)			(5,193	)
Net income		11,285				15,349
Net (income)/loss attributable to noncontrolling interest		438				(31	)
Net income attributable to National HealthCare Corporation	$	11,723			$	15,318
Net income per common share
Basic	$	0.76			$	0.99
Diluted	$	0.76			$	0.99
Weighted average common shares outstanding
Basic		15,337,423				15,416,836
Diluted		15,356,335				15,463,855
Dividends declared per common share	$	0.57			$	0.55
Balance Sheet Data	March 31				December 31
(in thousands)		2023				2022
	(unaudited)
Cash, cash equivalents and marketable securities	$	164,791			$	182,589
Restricted cash, cash equivalents and marketable securities		173,317				158,067
Current assets		337,903				353,932
Property and equipment, net		503,124				506,532
Total assets		1,265,353				1,275,450
Current liabilities		183,210				197,887
NHC stockholders' equity		877,102				874,276

Selected Operating Statistics
	Three Months Ended
	March 31
		2023				2022
	(unaudited)
Skilled Nursing Per Diems:
Medicare	$	555.85			$	544.66
Managed Care		444.95				433.48
Medicaid		236.78				228.53
Private Pay and Other		278.55				270.19
Average Skilled Nursing Per Diem	$	315.81			$	305.78		(1)
Skilled Nursing Patient Days:
Medicare		84,032				91,583
Managed Care		58,446				55,637
Medicaid		276,506				304,260
Private Pay and Other		157,422				153,955
Total Skilled Nursing Patient Days		576,406				605,435		(1)
(1) For the three months ended March 31, 2022, the skilled nursing per diems and patient days included the seven skilled nursing facilities in Massachusetts and New Hampshire. NHC exited these seven skilled nursing facilities on September 1, 2022. For the quarter ended March 31, 2022, the exited Massachusetts and New Hampshire skilled nursing facilities had an average skilled nursing per diem of $291.35 and 52,278 total patient days.
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
	Three Months Ended
	March 31
		2023				2022
	(unaudited)
Net income attributable to National Healthcare Corporation	$	11,723			$	15,318
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(1,386	)			(3,126	)
Operating results for newly opened operations not at full capacity (2)		1,217				743
Stock-based compensation expense		639				712
Income tax provision on non-GAAP adjustments		(122	)			434
Non-GAAP Net income	$	12,071			$	14,081
GAAP diluted earnings per share	$	0.76			$	0.99
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(0.06	)			(0.15	)
Operating results for newly opened operations not at full capacity (2)		0.06				0.04
Stock-based compensation expense		0.03				0.03
Non-GAAP diluted earnings per share	$	0.79			$	0.91
(2) The newly opened operations not at full capacity for the 2023 period presented consisted of operations opened from 2021 through 2023. This consisted of two behavioral health hospitals, one homecare agency, and two hospice agencies. The newly opened operations for the 2022 period presented consisted of operations opened from 2020 through 2022. This consisted of two behavioral health hospitals that opened during the second quarter of 2022.

 

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The National Healthcare Stock at the time of publication of the news with a fall of -1,68 % to 55,75USD on AMEX stock exchange (04. Mai 2023, 22:15 Uhr).