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NHC Reports Third Quarter Earnings

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

National HealthCare Corporation (The "Company") (NYSE MKT: NHC) (NYSE MKT:NHC.PRA), a publicly traded long-term health care company, today announced net income available to common shareholders for the quarter ended September 30, 2012 of $15,066,000 compared to $15,044,000 for the quarter ended September 30, 2011. Net income was $1.09 per common share basic for both the quarters ended September 30, 2012 and 2011. Revenues for the three months ended September 30, 2012 totaled $189,368,000 compared to $197,064,000 for the three months ended September 30, 2011, a decrease of 3.9%.

The decline in revenues was due to decreases in Medicare per diem rates. However, these decreases were partially offset by an improved patient mix. The Company continues to implement cost saving measures in order to reduce total costs and expenses.

Net income available to common shareholders for the nine month period ended September 30, 2012 was $37,020,000 compared to $43,043,000, a decrease of 14.0%. Net income was $2.67 per common share basic for the nine month period ended September 30, 2012 compared to $3.13 per common share basic for the same period in 2011. For comparative purposes, operating expenses for the 2011 nine month period included favorable results within our accrued risk reserves of $10,500,000 (approximately $6,825,000 after income taxes or $0.50 per common share basic). Excluding this adjustment, the nine months ended September 30, 2012 would have reflected an increase of 2.2% in net income available to common shareholders compared to the same period in 2011.

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

At September 30, 2012, NHC affiliates operate for themselves and third parties 75 long-term health care centers with 9,460 beds. NHC affiliates also operate 37 homecare programs, six independent living centers and 17 assisted 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.

           
Interim Condensed Consolidated Statements of Income
(in thousands, except share and per share amounts)
 
Three Months Ended Nine Months Ended
September 30 September 30
Revenues: 2012 2011 2012 2011
Net patient revenues $ 175,361 $ 182,134 $ 525,211 $ 536,531

Other revenues

  14,007     14,930     42,008     44,264  
Net operating revenues   189,368     197,064     567,219     580,795  
 
Costs and Expenses:
Salaries, wages and benefits 106,844 106,870 318,028 320,425
Other operating 48,519 54,807 149,271 148,084
Facility rent 9,813 10,000 29,507 29,744
Depreciation and amortization 7,402 7,307 22,168 21,344
Interest   119     136     345     333  
Total costs and expenses   172,697     179,120     519,319     519,930  
 
Income Before Non-Operating Income 16,671 17,944 47,900 60,865
Non-Operating Income   6,771     5,140     18,546     14,856  
 
Income Before Income Taxes 23,442 23,084 66,446 75,721
Income Tax Provision   (6,209 )   (5,873 )   (22,923 )   (26,175 )
 
Net Income 17,233 17,211 43,523 49,546
 
Dividends to Preferred Stockholders   (2,167 )   (2,167 )   (6,503 )   (6,503 )
 
Net Income Available to Common Stockholders $ 15,066   $ 15,044   $ 37,020   $ 43,043  
 
Earnings Per Common Share
Basic $ 1.09 $ 1.09 $ 2.67 $ 3.13
Diluted $ 1.04 $ 1.05 $ 2.63 $ 3.02
 
Weighted average common shares outstanding
Basic 13,852,403 13,807,995 13,846,022 13,762,084
Diluted 16,605,285 16,444,749 16,578,535 16,404,305
 
 
Balance Sheet Data
(in thousands) Sept. 30 Dec. 31
2012 2011
Cash and marketable securities $ 326,651 $ 280,271
Current assets 397,937 362,186
Property and equipment, net 421,843 429,651
Total assets 906,093 865,672
Current liabilities 218,769 215,907
Long-term debt 10,000 10,000
Stockholders' equity 652,502 611,736
 
     
Selected Operating Statistics
 
Three Months Ended Nine Months Ended
September 30 September 30
2012 2011 2012 2011
Per Diems:
Medicare $ 431.06 $ 471.80 $ 428.71 $ 460.45
Managed Care $ 411.52 $ 424.22 $ 408.02 $ 419.64
Medicaid $ 160.24 $ 156.56 $ 158.72 $ 157.41
Private Pay and Other $ 192.93 $ 188.00 $ 192.24 $ 187.66
 
Patient Days:
Medicare 116,593 116,128 360,761 351,334
Managed Care 32,471 28,009 91,414 78,671
Medicaid 271,674 286,841 818,744 850,938
Private Pay and Other   153,217   153,259   448,962   454,701
573,955 584,237 1,719,881 1,735,644
 
Average Per Diem $ 238.20 $ 240.30 $ 237.36 $ 238.56
 

National HealthCare Corporation
Gerald Coggin, 615-890-2020
Sr. VP of Corporate Relations

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