NHC Reports 2023 Year End Earnings

Published

MURFREESBORO, Tenn.--(BUSINESS WIRE)-- 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 year ended December 31, 2023 totaled $1,141,544,000 compared to $1,085,738,000 for the year ended December 31, 2022, an increase of 5.1%. Excluding the government stimulus income and the seven skilled nursing facilities in Massachusetts and New Hampshire in which we ceased operations in September 2022, same-facility net operating revenues increased 11.3% for the year ended December 31, 2023 compared to the 2022 year.

For the year ended December 31, 2023, the reported GAAP net income attributable to NHC was $66,798,000 compared to $22,445,000 for the 2022 year. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2023 was $54,934,000 compared to $37,323,000 for the 2022 year (*), an increase of 47.2%. GAAP diluted earnings per share were $4.34 compared to $1.45 for the years ended December 31, 2023 and 2022, respectively. Adjusted diluted earnings per share were $3.55 compared to $2.42 for the years ended December 31, 2023 and 2022, respectively (*).

For the quarter ended December 31, 2023, the reported GAAP net income attributable to NHC was $28,406,000 compared to $6,353,000 for the same period in 2022. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2023 was $15,955,000 compared to $11,046,000 for the same period in 2022 (*), an increase of 44.4%. The GAAP diluted earnings per share were $1.83 compared to $0.41 for the quarters ended December 31, 2023 and 2022, respectively. Adjusted diluted earnings per share were $1.03 compared to $0.72 for the quarters ended December 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 26 assisted living communities with 1,501 units, five independent living communities with 475 units, three behavioral health hospitals, 35 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 Years Ended
December 31 December 31

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues and grant income:
Net patient revenues

$

282,997

 

$

252,424

 

$

1,087,614

 

$

1,029,085

 

Other revenues

 

17,917

 

 

11,612

 

 

53,930

 

 

45,196

 

Government stimulus income

 

-

 

 

517

 

 

-

 

 

11,457

 

Net operating revenues and grant income

 

300,914

 

 

264,553

 

 

1,141,544

 

 

1,085,738

 

 
Costs and expenses:
Salaries, wages and benefits

 

186,562

 

 

167,341

 

 

712,344

 

 

686,169

 

Other operating

 

70,970

 

 

67,365

 

 

288,183

 

 

285,644

 

Facility rent

 

11,438

 

 

10,207

 

 

41,525

 

 

40,977

 

Depreciation and amortization

 

11,768

 

 

10,478

 

 

42,034

 

 

40,489

 

Interest

 

56

 

 

112

 

 

324

 

 

563

 

Total costs and expenses

 

280,794

 

 

255,503

 

 

1,084,410

 

 

1,053,842

 

 
Income from operations

 

20,120

 

 

9,050

 

 

57,134

 

 

31,896

 

 
Non-operating income

 

4,544

 

 

2,690

 

 

16,660

 

 

11,141

 

Unrealized gains/(losses) on marketable equity securities

 

12,001

 

 

(4,327

)

 

14,944

 

 

(15,806

)

 
Income before income taxes

 

36,665

 

 

7,413

 

 

88,738

 

 

27,231

 

Income tax provision

 

(8,700

)

 

(1,839

)

 

(23,450

)

 

(7,254

)

Net income

 

27,965

 

 

5,574

 

 

65,288

 

 

19,977

 

 
Net loss attributable to noncontrolling interest

 

441

 

 

779

 

 

1,510

 

 

2,468

 

 
Net income attributable to National HealthCare Corporation

$

28,406

 

$

6,353

 

$

66,798

 

$

22,445

 

 
Net income per common share
Basic

$

1.86

 

$

0.41

 

$

4.36

 

$

1.46

 

Diluted

$

1.83

 

$

0.41

 

$

4.34

 

$

1.45

 

 
Weighted average common shares outstanding
Basic

 

15,306,253

 

 

15,326,680

 

 

15,310,142

 

 

15,410,222

 

Diluted

 

15,486,573

 

 

15,358,488

 

 

15,377,343

 

 

15,447,211

 

 
Dividends declared per common share

$

0.59

 

$

0.57

 

$

2.34

 

$

2.26

 

 
 
Balance Sheet Data Dec 31, Dec 31,
(in thousands)

 

2023

 

 

2022

 

 
 
Cash, cash equivalents and marketable securities

$

223,620

 

$

182,589

 

Restricted cash, cash equivalents and marketable securities

 

167,971

 

 

158,067

 

Current assets

 

406,235

 

 

353,932

 

Property and equipment, net

 

493,329

 

 

506,532

 

Total assets

 

1,310,796

 

 

1,275,450

 

Current liabilities

 

214,476

 

 

197,887

 

Stockholders' equity

 

910,480

 

 

877,514

 

 
Selected Operating Statistics
Three Months Ended Years Ended
December 31 December 31

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Skilled Nursing Per Diems:
Medicare

$

579.84

 

$

544.11

 

$

559.07

 

$

541.23

 

Managed Care

 

478.51

 

 

482.99

 

 

464.89

 

 

439.07

 

Medicaid

 

268.58

 

 

236.86

 

 

253.95

 

 

232.22

 

Private Pay and Other

 

290.85

 

 

265.55

 

 

282.14

 

 

267.50

 

 
Average Skilled Nursing Per Diem

$

337.57

 

$

310.82

 

$

324.53

 

$

304.04

 

(1)

 
Skilled Nursing Patient Days:
Medicare

 

79,025

 

 

82,965

 

 

318,253

 

 

341,926

 

Managed Care

 

62,031

 

 

51,003

 

 

242,023

 

 

214,826

 

Medicaid

 

288,538

 

 

284,208

 

 

1,140,612

 

 

1,204,139

 

Private Pay and Other

 

170,916

 

 

157,174

 

 

663,195

 

 

646,651

 

 
Total Skilled Nursing Patient Days

 

600,510

 

 

575,350

 

 

2,364,083

 

 

2,407,542

 

(1)

 
(1) For the year ended December 31, 2022, the skilled nursing per diems and patient days listed above include the seven skilled nursing facilities that were located in Massachusetts and New Hampshire through August 31, 2022. NHC exited these seven skilled nursing facilities on September 1, 2022. For the years ended December 31, 2022, the exited Massachusetts and New Hampshire skilled nursing facilities had an average skilled nursing per diem of $294.55 and 140,105 total patient days.
 
 
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
Three Months Ended Years Ended
December 31 December 31

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 
Net income attributable to National HealthCare Corporation

$

28,406

 

$

6,353

 

$

66,798

 

$

22,445

 

Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities

 

(12,001

)

 

4,327

 

 

(14,944

)

 

15,806

 

Gain on sale of property and equipment

 

(6,230

)

 

-

 

 

(6,230

)

 

-

 

Operating results for newly opened operations not at full capacity (2)

 

742

 

 

1,383

 

 

2,359

 

 

5,416

 

Impairment/(recovery) of assets

 

-

 

 

-

 

 

-

 

 

(3,728

)

Stock-based compensation expense

 

663

 

 

632

 

 

2,782

 

 

2,612

 

Income tax (benefit)/provision on non-GAAP adjustments

 

4,375

 

 

(1,649

)

 

4,169

 

 

(5,228

)

Non-GAAP Net income

$

15,955

 

$

11,046

 

$

54,934

 

$

37,323

 

 
GAAP diluted earnings per share

$

1.83

 

$

0.41

 

$

4.34

 

$

1.45

 

Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities

 

(0.57

)

 

0.21

 

 

(0.72

)

 

0.76

 

Gain on sale of property and equipment

 

(0.30

)

 

(0.30

)

Operating results for newly opened operations not at full capacity (2)

 

0.04

 

 

0.07

 

 

0.10

 

 

0.26

 

Impairment/(recovery) of assets

 

-

 

 

-

 

 

(0.18

)

Stock-based compensation expense

 

0.03

 

 

0.03

 

 

0.13

 

 

0.13

 

Non-GAAP diluted earnings per share

$

1.03

 

$

0.72

 

$

3.55

 

$

2.42

 

 
(2) The newly opened operations not at full capacity for the 2023 periods presented consisted of operations opened from 2021 through 2023. This consisted of two behavioral health hospitals, two homecare agencies, and two hospice agencies. The newly opened operations for the 2022 periods presented consisted of operations opened from 2020 through 2022. This consisted of two behavioral health hospitals, one homecare agency, and one hospice agency.

 

Brian F. Kidd, SVP/CFO Phone: (615) 890-2020

Source: National HealthCare Corporation

In This Story

NHC