NHC Reports Second Quarter Earnings
MURFREESBORO, Tenn. — National HealthCare Corporation (NYSE MKT: NHC, NHC.PRA), the nation’s oldest publicly traded senior health care company, today announced net income available to common shareholders for the quarter ended June 30, 2014 of $10,344,000 compared to $12,174,000 for the quarter ended June 30, 2013. Financial results for the second quarter of 2014 compared to the prior year period were negatively impacted by a decrease in non-operating income and also start-up expenses incurred from the eleven newly leased or constructed skilled nursing centers. Excluding the decrease in non-operating income and the start-up losses from the eleven skilled nursing centers, net income available to common shareholders for the quarter ended June 30, 2014 would have been $12,414,000, which is an increase of 2.0% over the same three month period in 2013.
Net operating revenues for the three months ended June 30, 2014 totaled $216,555,000 compared to $192,011,000 for the same three months of 2013, an increase of 12.8%. Net income was $0.75 per common share basic for the quarter ended June 30, 2014 compared to $0.88 per common share basic for the quarter ended June 30, 2013.
| Consolidated Statements of Income | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| Three Months Ended | Six Months Ended | |||||||
| June 30 | June 30 | |||||||
| 2014 | 2013 | 2014 | 2013 | |||||
| Revenues: | (unaudited) | (unaudited) | ||||||
| Net patient revenues | $ 205,632 | $ 178,401 | $ 405,401 | $ 356,831 | ||||
| Other revenues | 10,923 | 13,610 | 21,685 | 29,558 | ||||
| Net operating revenues | 216,555 | 192,011 | 427,086 | 386,389 | ||||
| Costs and Expenses: | ||||||||
| Salaries, wages and benefits | 125,614 | 109,358 | 245,339 | 216,421 | ||||
| Other operating | 55,696 | 48,728 | 111,438 | 103,139 | ||||
| Facility rent | 9,913 | 9,870 | 19,799 | 19,738 | ||||
| Depreciation and amortization | 8,605 | 6,972 | 16,505 | 13,928 | ||||
| Interest | 644 | 82 | 934 | 166 | ||||
| Total costs and expenses | 200,472 | 175,010 | 394,015 | 353,392 | ||||
| Income Before Non-Operating Income | 16,083 | 17,001 | 33,071 | 32,997 | ||||
| Non-Operating Income | 4,281 | 6,632 | 8,853 | 13,250 | ||||
| Income Before Income Taxes | 20,364 | 23,633 | 41,924 | 46,247 | ||||
| Income Tax Provision | (7,853) | (9,291) | (16,184) | (18,100) | ||||
| Net Income | 12,511 | 14,342 | 25,740 | 28,147 | ||||
| Dividends to Preferred Stockholders | (2,167) | (2,168) | (4,335) | (4,336) | ||||
| Net Income Available to Common Stockholders | $ 10,344 | $ 12,174 | $ 21,405 | $ 23,811 | ||||
| Earnings Per Common Share | ||||||||
| Basic | $ 0.75 | $ 0.88 | $ 1.54 | $ 1.72 | ||||
| Diluted | $ 0.72 | $ 0.86 | $ 1.50 | $ 1.68 | ||||
| Weighted average common shares outstanding | ||||||||
| Basic | 13,868,470 | 13,816,536 | 13,855,900 | 13,838,936 | ||||
| Diluted | 14,282,785 | 16,682,970 | 14,226,887 | 16,708,889 | ||||
| Dividends declared per common share | $ 0.34 | $ 0.32 | $ 0.66 | $ 0.62 | ||||
| Balance Sheet Data | ||||||||
| (in thousands) | June 30 | Dec. 31 | ||||||
| 2014 | 2013 | |||||||
| Cash and marketable securities | $ 193,376 | $ 186,714 | ||||||
| Restricted cash and marketable securities | 162,405 | 155,932 | ||||||
| Current assets | 311,014 | 299,666 | ||||||
| Property and equipment, net | 502,288 | 456,798 | ||||||
| Total assets | 1,044,589 | 984,358 | ||||||
| Current liabilities | 160,020 | 167,760 | ||||||
| Long-term debt | 10,000 | 10,000 | ||||||
| Stockholders’ equity | 716,807 | 688,112 | ||||||
| Selected Operating Statistics | |||||||
| (unaudited) | |||||||
| Three Months Ended | Six Months Ended | ||||||
| June 30 | June 30 | ||||||
| 2014 | 2013 | 2014 | 2013 | ||||
| Per Diems: | |||||||
| Medicare | $ 433.88 | $ 422.78 | $ 432.90 | $ 425.74 | |||
| Managed Care | $ 396.04 | $ 394.51 | $ 397.77 | $ 405.80 | |||
| Medicaid | $ 168.51 | $ 163.26 | $ 168.88 | $ 164.24 | |||
| Private Pay and Other | $ 210.28 | $ 199.15 | $ 211.54 | $ 198.61 | |||
| Patient Days: | |||||||
| Medicare | 124,624 | 121,023 | 250,772 | 241,939 | |||
| Managed Care | 47,151 | 34,762 | 91,104 | 70,803 | |||
| Medicaid | 313,426 | 259,461 | 614,201 | 514,886 | |||
| Private Pay and Other | 176,740 | 145,485 | 339,733 | 291,437 | |||
| 661,941 | 560,731 | 1,295,810 | 1,119,065 | ||||
| Average Per Diem | $ 245.83 | $ 242.92 | $ 247.25 | $ 245.01 | |||