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NHC Reports Third Quarter Earnings

MURFREESBORO, Tenn.--(BUSINESS WIRE)--

National HealthCare Corporation (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, 2017 of $11,352,000 compared to $11,110,000 for the quarter ended September 30, 2016, an increase of 2.2%. Excluding the operating losses from the newly constructed skilled nursing facility and two assisted living facilities placed in service in 2017, net income available to common shareholders for the quarter ended September 30, 2017 would have been $11,824,000.

Net operating revenues for the three months ended September 30, 2017 totaled $241,985,000 compared to $231,281,000 for the same three months of 2016, an increase of 4.6%. Net income was $0.75 per common share basic for the quarter ended September 30, 2017 compared to $0.73 per common share basic for the quarter ended September 30, 2016, an increase of 2.7%.

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 76 skilled nursing centers with 9,597 beds. NHC affiliates also operate 36 homecare programs, 24 assisted living communities and five independent 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
2017     2016 2017     2016
(unaudited)
Revenues:
Net patient revenues $ 230,048 $ 218,647 $ 685,854 $ 653,240
Other revenues   11,937     12,634     34,831     35,397  
Net operating revenues   241,985     231,281     720,685     688,637  
 
Costs and Expenses:
Salaries, wages and benefits 145,900 140,403 426,639 405,491
Other operating 64,039 58,956 190,778 177,571
Facility rent 10,106 10,314 30,273 30,960
Depreciation and amortization 10,833 9,998 31,609 28,847
Interest   1,322     1,020     3,599     2,913  
Total costs and expenses   232,200     220,691     682,898     645,782  
 
Income Before Non-Operating Income 9,785 10,590 37,787 42,855
Non-Operating Income   6,090     5,091     16,047     14,789  
 
Income Before Income Taxes 15,875 15,681 53,834 57,644
Income Tax Provision   (4,691 )   (4,571 )   (19,448 )   (20,969 )
Net Income 11,184 11,110 34,386 36,675
 
Loss Attributable To Noncontrolling Interest   168     -     349     -  
 
Net Income Attributable to National HealthCare Corporation $ 11,352   $ 11,110   $ 34,735   $ 36,675  
 
Earnings Per Common Share
Basic 0.75 $ 0.73 $ 2.29 $ 2.42
Diluted 0.75 $ 0.73 $ 2.28 $ 2.41
 
Weighted average common shares outstanding
Basic 15,195,394 15,198,696 15,186,315 15,128,728
Diluted 15,220,567 15,222,648 15,217,797 15,216,838
 
Dividends declared per common share $ 0.48 $ 0.45 $ 1.41 $ 1.30
 
Balance Sheet Data
(in thousands) Sept. 30 Dec. 31
2017 2016
(unaudited)
Cash, cash equivalents and marketable securities $ 213,553 $ 164,348
Restricted cash, cash equivalents and marketable securities 176,560 188,958
Current assets 336,096 290,857
Property and equipment, net 552,343 559,624
Total assets 1,110,837 1,087,447
Current liabilities 147,609 150,928
Long-term debt 120,000 120,000
NHC Stockholders' equity 690,868 669,611
 
 
Selected Operating Statistics
(unaudited)
      Three Months Ended     Nine Months Ended
September 30 September 30
2017     2016 2017     2016
Per Diems:
Medicare $ 459.63 $ 453.08 $ 461.38 $ 449.26
Managed Care 402.86 402.45 407.16 401.86
Medicaid 179.08 174.12 177.49 173.92
Private Pay and Other 230.73 224.68 231.76 224.04
 
Average Per Diem $ 261.35 $ 254.62 $ 262.69 $ 255.04
 
Patient Days:
Medicare 117,634 117,503 360,285 359,667
Managed Care 64,327 54,591 186,487 166,293
Medicaid 325,886 322,564 959,779 958,782
Private Pay and Other   183,339   181,175   541,827   531,783
691,186 675,833 2,048,378 2,016,525
 

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