NHC Reports Third Quarter Earnings

National HealthCare Corporation (NYSE MKT: NHC)(NYSE MKT: NHC.PRA), the nation's oldest publicly traded senior health care company, today announced net income available to common shareholders for the quarter ended September 30, 2013 of $17,710,000 compared to $15,029,000 for the quarter ended September 30, 2012, an increase of 17.8%. Net income was $1.28 per common share basic for the quarter ended September 30, 2013 compared to $1.08 per common share basic for the quarter ended September 30, 2012.

Revenues for the three months ended September 30, 2013 totaled $195,772,000 compared to $189,307,000 for the same three months of 2012, an increase of 3.4% despite the automatic 2% cuts known as "sequestration" that began on April 1, 2013 for Medicare providers.

Operating results for the third quarter of 2013 compared to the same quarter last year were favorably impacted by a gain on the recovery of notes receivable in the amount of $5,454,000 (approximately $3,327,000 after income taxes), as well as an improved patient mix, and continued efforts to reduce expenses in our skilled nursing facilities.

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, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; 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.

About NHC

NHC affiliates operate for themselves and third parties 68 skilled nursing centers with 8,803 beds. NHC affiliates also operate 38 homecare programs, five independent living centers and 15 assisted living communities. NHC’s other services include Alzheimer’s units, long-term care pharmacies, hospice, a rehabilitation services company, and providing management and accounting services to third parties. Other information about the company can be found on our web site at www.nhccare.com. The reference to our website is not intended to incorporate our website into this press release.
           
Interim Condensed Consolidated Statements of Income
(in thousands, except share and per share amounts)
(unaudited)    
    Three Months Ended Nine Months Ended
September 30 September 30
Revenues: 2013 2012 2013 2012
Net patient revenues $ 182,966 $ 175,361 $ 539,797 $ 525,211
Other revenues   12,806     13,946     42,364     41,814  
Net operating revenues   195,772     189,307     582,161     567,025  
 
Costs and Expenses:
Salaries, wages and benefits 113,739 106,844 330,160 318,028
Other operating 45,752 48,519 148,891 149,271
Facility rent 9,889 9,813 29,627 29,507
Depreciation and amortization 7,045 7,402 20,973 22,168
Interest   82     119     248     345  
Total costs and expenses   176,507     172,697     529,899     519,319  
 
Income Before Non-Operating Income 19,265 16,610 52,262 47,706
Non-Operating Income   11,171     6,771     24,421     18,546  
 
Income Before Income Taxes 30,436 23,381 76,683 66,252
Income Tax Provision   (10,559 )   (6,185 )   (28,659 )   (22,847 )
 
Net Income 19,877 17,196 48,024 43,405
 
Dividends to Preferred Stockholders   (2,167 )   (2,167 )   (6,503 )   (6,503 )
 
Net Income Available to Common Stockholders $ 17,710   $ 15,029   $ 41,521   $ 36,902  
 
Earnings Per Common Share
Basic $ 1.28 $ 1.08 $ 3.00 $ 2.67
Diluted $ 1.19 $ 1.04 $ 2.88 $ 2.62
 
Weighted average common shares outstanding
Basic 13,820,449 13,852,403 13,832,706 13,846,022
Diluted 16,686,915 16,605,285 16,701,491 16,578,535
 
 
Balance Sheet Data
(unaudited, in thousands) Sept. 30 Dec. 31
2013 2012
Cash and marketable securities $ 196,609 $ 173,951
Restricted cash and marketable securities 154,010 146,770
Current assets 439,916 417,245
Property and equipment, net 454,914 420,907
Total assets 975,972 924,700
Current liabilities 255,922 228,761
Long-term debt 10,000 10,000
Stockholders' equity 679,656 656,148
           
Selected Operating Statistics
(unaudited)
    Three Months Ended Nine Months Ended
September 30 September 30
2013 2012 2013 2012
Per Diems:
Medicare $ 430.55 $ 431.06 $ 427.32 $ 428.71
Managed Care $ 406.76 $ 411.52 $ 406.13 $ 408.02
Medicaid $ 164.35 $ 160.24 $ 164.28 $ 158.73
Private Pay and Other $ 209.01 $ 192.93 $ 202.21 $ 192.24
 
Patient Days:
Medicare 118,627 116,593 360,566 360,761
Managed Care 37,384 32,471 108,187 91,414
Medicaid 275,596 271,674 790,482 818,744
Private Pay and Other 154,329 153,217 445,766 448,962
585,936 573,955 1,705,001 1,719,881
 
Average Per Diem $ 245.47 $ 238.20 $ 245.17 $ 237.36

Copyright Business Wire 2010

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