MURFREESBORO, Tenn., February 27, 2025--(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, 2024 totaled $1,307,382,000 compared to $1,141,544,000 for the year ended December 31, 2023, an increase of 14.5%. The increase in net operating revenues for the 2024 year compared to the 2023 year was due to a 9.4% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Manor ("White Oak"). The White Oak operations consist of 22 healthcare operations, which includes 15 skilled nursing facilities, two assisted living facilities, four independent living facilities, and a long-term care pharmacy.
For the year ended December 31, 2024, the reported GAAP net income attributable to NHC was $101,927,000 compared to $66,798,000 for the 2023 year. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2024 was $76,862,000 compared to $54,934,000 for the 2023 year (*), an increase of 39.9%. GAAP diluted earnings per share were $6.53 and $4.34 for the years ended December 31, 2024 and 2023, respectively. Adjusted diluted earnings per share were $4.93 and $3.55 for the years ended December 31, 2024 and 2023, respectively (*).
For the quarter ended December 31, 2024, the reported GAAP net income attributable to NHC was $6,081,000 compared to $28,406,000 for the same period in 2023. Excluding the unrealized gains or losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2024 was $25,954,000 compared to $15,955,000 for the same period in 2023, an increase of 62.7% (*). The GAAP diluted earnings per share were $0.39 and $1.83 for the quarters ended December 31, 2024 and 2023, respectively. Adjusted diluted earnings per share were $1.66 and $1.03 for the quarters ended December 31, 2024 and 2023, 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 80 skilled nursing facilities with 10,341 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 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
2024
2023
2024
2023
Revenues and grant income:
Net patient revenues
$
357,344
$
282,997
$
1,251,759
$
1,087,614
Other revenues
12,006
17,917
46,178
53,930
Government stimulus income
-
-
9,445
-
Net operating revenues and grant income
369,350
300,914
1,307,382
1,141,544
Costs and expenses:
Salaries, wages and benefits
234,321
186,562
810,930
712,344
Other operating
83,298
70,970
321,390
288,183
Facility rent
11,378
11,438
43,182
41,525
Depreciation and amortization
11,442
11,768
41,985
42,034
Interest
2,347
56
4,135
324
Total costs and expenses
342,786
280,794
1,221,622
1,084,410
Income from operations
26,564
20,120
85,760
57,134
Non-operating income
4,825
4,544
19,690
16,660
Unrealized gains/(losses) on marketable equity securities
(25,332
)
12,001
30,958
14,944
Income before income taxes
6,057
36,665
136,408
88,738
Income tax provision
(28
)
(8,700
)
(34,322
)
(23,450
)
Net income
6,029
27,965
102,086
65,288
Net (income)/loss attributable to noncontrolling interest
52
441
(159
)
1,510
Net income attributable to National HealthCare Corporation
$
6,081
$
28,406
$
101,927
$
66,798
Net income per common share
Basic
$
0.39
$
1.86
$
6.62
$
4.36
Diluted
$
0.39
$
1.83
$
6.53
$
4.34
Weighted average common shares outstanding
Basic
15,420,658
15,306,253
15,393,782
15,310,142
Diluted
15,665,025
15,486,573
15,598,528
15,377,343
Dividends declared per common share
$
0.61
$
0.59
$
2.42
$
2.34
Balance Sheet Data
December 31
December 31
(in thousands)
2024
2023
Cash, cash equivalents and marketable securities
$
216,185
$
223,620
Restricted cash, cash equivalents and marketable securities
163,795
167,971
Current assets
424,408
406,235
Property and equipment, net
684,289
493,329
Total assets
1,524,429
1,310,796
Current liabilities, excluding long-term debt due within one year
227,297
214,476
Current and long-term debt
137,000
-
NHC stockholders' equity
980,161
908,752
Selected Operating Statistics
Three Months Ended
Years Ended
December 31
December 31
2024
2023
2024
2023
Skilled Nursing Per Diems:
Medicare
$
607.67
$
579.84
$
586.76
$
559.07
Managed Care
490.41
478.51
468.23
464.89
Medicaid
279.02
268.58
275.78
253.95
Private Pay and Other
321.12
290.85
316.80
282.14
Average Skilled Nursing Per Diem
$
350.72
$
337.57
(1)
$
346.46
(1)
$
324.53
(1)
Skilled Nursing Patient Days:
Medicare
84,809
79,025
320,524
318,253
Managed Care
76,996
62,031
276,019
242,023
Medicaid
374,755
288,538
1,281,020
1,140,612
Private Pay and Other
191,926
170,916
677,449
663,195
Total Skilled Nursing Patient Days
728,486
600,510
(1)
2,555,012
(1)
2,364,083
(1)
(1) NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the first quarter of 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $259.56 and 20,267 patient days. For the three months ended December 31, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $253.84 and 31,761 patient days. For the year ended December 31, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $249.85 and 126,791 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
2024
2023
2024
2023
Net income attributable to National Healthcare Corporation
$
6,081
$
28,406
$
101,927
$
66,798
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
25,332
(12,001
)
(30,958
)
(14,944
)
Gain on sale of property and equipment
-
(6,230
)
-
(6,230
)
Gain on sale of unconsolidated company
-
-
(1,024
)
-
Operating results for newly opened operations not at full capacity (2)
(10
)
742
130
2,359
Stock-based compensation expense
1,098
663
4,160
2,782
Acquisition-related expenses (3)
435
-
3,266
-
Employee retention credit
-
-
(9,445
)
-
Income tax provision on non-GAAP adjustments
(6,982
)
4,375
8,806
4,169
Non-GAAP Net income
$
25,954
$
15,955
$
76,862
$
54,934
GAAP diluted earnings per share
$
0.39
$
1.83
$
6.53
$
4.34
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
1.20
(0.57
)
(1.47
)
(0.72
)
Gain on sale of property and equipment
-
(0.30
)
-
(0.30
)
Gain on sale of unconsolidated company
-
-
(0.05
)
-
Operating results for newly opened operations not at full capacity (2)
-
0.04
0.01
0.10
Stock-based compensation expense
0.05
0.03
0.20
0.13
Acquisition-related expenses (3)
0.02
-
0.16
-
Employee retention credit
-
-
(0.45
)
-
Non-GAAP diluted earnings per share
$
1.66
$
1.03
$
4.93
$
3.55
(2) The operating results for newly opened facilities or agencies not at full capacity include healthcare operations that are still considered in the start-up phase, which are two hospice agencies for the fourth quarter and year ended December 31, 3024. For the fourth quarter and year ended December 31, 2023, included are two behavioral health hospitals, two homecare agencies, and two hospice agencies.
(3) Represents expenses incurred to acquire the White Oak operations that are not capitalizable.
