NHC Reports Third Quarter Earnings

National HealthCare Corporation (NYSE MKT: NHC), the nation's oldest publicly traded senior health care company, today announced net income available to common shareholders for the quarter ended September 30, 2016 of $11,110,000 compared to $10,415,000 for the quarter ended September 30, 2015, an increase of 6.7%. Excluding the operating losses from the two newly constructed skilled nursing facilities, two assisted living facilities, and one memory care facility placed in service in 2015 and 2016, net income available to common shareholders for the quarter ended September 30, 2016 would have been $12,947,000.

Net operating revenues for the three months ended September 30, 2016 totaled $231,281,000 compared to $225,386,000 for the same three months of 2015, an increase of 2.6%. Net income was $0.73 per common share basic for the quarter ended September 30, 2016 compared to $0.75 per common share basic for the quarter ended September 30, 2015.

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 74 skilled nursing centers with 9,398 beds. NHC affiliates also operate 36 homecare programs, five independent living centers and 21 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.
       
Consolidated Statements of Income
(in thousands, except share and per share amounts)
   
Three Months Ended Nine Months Ended
September 30 September 30
2016 2015 2016 2015
Revenues: (unaudited) (unaudited)
Net patient revenues $ 218,647 $ 215,351 $ 653,240 $ 641,845
Other revenues   12,634     10,035     35,397     30,850  
Net operating revenues   231,281     225,386     688,637     672,695  
 
Costs and Expenses:
Salaries, wages and benefits 140,403 135,136 405,491 392,766
Other operating 58,956 56,616 177,571 173,830
Facility rent 10,314 10,006 30,960 29,972
Depreciation and amortization 9,998 9,273 28,847 27,442
Interest   1,020     594     2,913     1,782  
Total costs and expenses   220,691     211,625     645,782     625,792  
 
Income Before Non-Operating Income 10,590 13,761 42,855 46,903
Non-Operating Income   5,091     4,550     14,789     12,902  
 
Income Before Income Taxes 15,681 18,311 57,644 59,805
Income Tax Provision   (4,571 )   (5,744 )   (20,969 )   (21,638 )
 
Net Income 11,110 12,567 36,675 38,167
 
Dividends to Preferred Stockholders   -     (2,152 )   -     (6,487 )
 
Net Income Available to Common Stockholders $ 11,110   $ 10,415   $ 36,675   $ 31,680  
 
Earnings Per Common Share
Basic $ 0.73 $ 0.75 $ 2.42 $ 2.30
Diluted $ 0.73 $ 0.72 $ 2.41 $ 2.21
 
Weighted average common shares outstanding
Basic 15,198,696 13,801,245 15,128,728 13,778,705
Diluted 15,222,648 14,422,660 15,216,838 14,365,251
 
Dividends declared per common share $ 0.45 $ 0.40 $ 1.30 $ 1.14
 
Balance Sheet Data
(in thousands) Sept. 30 Dec. 31
2016 2015
Cash and marketable securities $ 166,229 $ 154,376
Restricted cash and marketable securities 196,044 180,972
Current assets 287,230 278,942
Property and equipment, net 557,665 536,046
Total assets 1,088,355 1,045,329
Current liabilities 142,802 150,656
Long-term debt 120,000 120,000
Stockholders' equity 670,815 630,996
 
 
Selected Operating Statistics
(unaudited)
  Three Months Ended   Nine Months Ended
September 30 September 30
2016   2015 2016   2015
Per Diems:
Medicare $ 453.08 $ 441.52 $ 449.26 $ 437.28
Managed Care 402.45 405.14 401.86 401.42
Medicaid 174.12 170.57 173.92 170.64
Private Pay and Other 224.68 216.10 224.04 216.97
 
Average Per Diem $ 254.62 $ 250.34 $ 255.04 $ 252.76
 
Patient Days:
Medicare 117,503 119,780 359,667 384,801
Managed Care 54,591 56,721 166,293 165,149
Medicaid 322,564 319,962 958,782 935,339
Private Pay and Other   181,175   179,734   531,783   523,739
675,833 676,197 2,016,525 2,009,028
 

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