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, 2017 totaled $966,996,000 compared to $926,638,000 for the year ended December 31, 2016, an increase of 4.4%. For the year ended December 31, 2017, net income attributable to NHC was $56,205,000 compared to $50,538,000 for the 2016 year, an increase of 11.2% and reflects the 2017 fourth quarter tax benefit adjustment of $8.5 million from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). Excluding the 2017 Tax Act adjustment and the operating losses from the two newly constructed skilled nursing facilities and three assisted living facilities placed in service in 2017 and 2016, net income attributable to NHC would have been $51,526,000 for the year ended December 31, 2017.

Diluted earnings per share were $3.69 and $3.32 for the years ended December 31, 2017 and 2016, respectively, which is an increase of 11.1% and also reflects the positive 2017 Tax Act adjustment.

Net operating revenues for the three months ended December 31, 2017 totaled $246,311,000 compared to $238,001,000 for the same three months in 2016, an increase of 3.5%. The fourth quarter of 2017 net income attributable to NHC was $21,470,000, or $1.41 per diluted share, which includes the $8.5 million Tax Act adjustment. In the fourth quarter of 2016, net income attributable to NHC was $13,863,000, or $0.91 per diluted share.

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.

About NHC

NHC affiliates operate for themselves and third parties 76 skilled nursing facilities with 9,597 beds. NHC affiliates also operate 24 assisted living communities, five independent living communities, and 36 homecare programs. 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     Year Ended
December 31 December 31
2017     2016 2017     2016
(unaudited)
Revenues:
Net patient revenues $ 233,989 $ 227,484 $ 919,843 $ 880,724
Other revenues   12,322   10,517     47,153     45,914  
Net operating revenues   246,311   238,001     966,996     926,638  
 
Costs and expenses:
Salaries, wages and benefits 145,404 142,516 572,043 548,007
Other operating 62,156 56,262 252,934 233,833
Facility rent 10,094 10,332 40,367 41,292
Depreciation and amortization 11,043 10,176 42,652 39,023
Interest   1,291   1,028     4,890     3,941  
Total costs and expenses   229,988   220,314     912,886     866,096  
 
Income before non-operating income 16,323 17,687 54,110 60,542
Non-operating income   4,392   4,876     20,439     19,665  
 
Income before income taxes 20,715 22,563 74,549 80,207
Income tax (provision)/benefit   581   (8,700 )   (18,867 )   (29,669 )
Net income 21,296 13,863 55,682 50,538
 
Loss attributable to noncontrolling interest   174   -     523     -  
 
Net income attributable to National HealthCare Corporation $ 21,470 $ 13,863   $ 56,205   $ 50,538  
 
Earnings per common share
Basic $ 1.41 $ 0.92 $ 3.70 $ 3.34
Diluted $ 1.41 $ 0.91 $ 3.69 $ 3.32
 
Weighted average common shares outstanding
Basic 15,200,619 15,150,514 15,189,920 15,134,518
Diluted 15,222,343 15,176,453 15,218,962 15,206,997
 
Dividends declared per common share $ 0.48 $ 0.45 $ 1.89 $ 1.75
 
Balance Sheet Data
(in thousands) Dec. 31 Dec. 31
2017 2016
 
Cash, cash equivalents and marketable securities $ 198,203 $ 164,348
Restricted cash, cash equivalents and marketable securities 174,698 188,958
Current assets 329,311 290,857
Property and equipment, net 549,319 559,624
Total assets 1,096,526 1,087,447
Current liabilities 155,065 150,928
Long-term debt 100,000 120,000
NHC stockholders' equity 702,738 669,611
 
 
Selected Operating Statistics
 
 
      Three Months Ended     Year Ended
December 31 December 31
2017     2016 2017     2016
(unaudited)
Skilled Nursing Per Diems:
Medicare $ 459.14 $ 462.59 $ 460.82 $ 452.51
Managed Care 400.91 413.40 405.67 404.78
Medicaid 187.07 186.24 186.53 182.89
Private Pay and Other   231.17   225.98   231.61   224.53
 
Average Skilled Nursing Per Diem $ 265.30 $ 262.87 $ 266.45 $ 259.80
 
Skilled Nursing Patient Days:
Medicare 121,295 115,970 481,580 475,637
Managed Care 58,421 56,342 244,908 222,635
Medicaid 321,653 325,940 1,281,432 1,284,722
Private Pay and Other   183,633   180,787   725,460   712,570
 
Total Skilled Nursing Patient Days   685,002   679,039   2,733,380   2,695,564
 

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