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EX-99.2 - EXHIBIT 99.2 - NATIONAL HEALTHCARE CORPex_105655.htm
8-K - FORM 8-K - NATIONAL HEALTHCARE CORPnhc20180219_8k.htm

Exhibit 99.1

 

 

 

 

For release: February 20, 2018

Contact: John, K. Lines, SVP, General Counsel

Phone: (615) 890-2020

 

NHC Reports Year End Earnings

 

MURFREESBORO, Tenn. -- National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the year ended December 31, 2017 totaled $966,996,000 compared to $926,638,000 for the year ended December 31, 2016, an increase of 4.4%. For the year ended December 31, 2017, net income attributable to NHC was $56,205,000 compared to $50,538,000 for the 2016 year, an increase of 11.2% and reflects the 2017 fourth quarter tax benefit adjustment of $8.5 million from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). Excluding the 2017 Tax Act adjustment and the operating losses from the two newly constructed skilled nursing facilities and three assisted living facilities placed in service in 2017 and 2016, net income attributable to NHC would have been $51,526,000 for the year ended December 31, 2017.

Diluted earnings per share were $3.69 and $3.32 for the years ended December 31, 2017 and 2016, respectively, which is an increase of 11.1% and also reflects the positive 2017 Tax Act adjustment.

Net operating revenues for the three months ended December 31, 2017 totaled $246,311,000 compared to $238,001,000 for the same three months in 2016, an increase of 3.5%. The fourth quarter of 2017 net income attributable to NHC was $21,470,000, or $1.41 per diluted share, which includes the $8.5 million Tax Act adjustment. In the fourth quarter of 2016, net income attributable to NHC was $13,863,000, or $0.91 per diluted share.

 

 

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; 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 facilities with 9,597 beds. NHC affiliates also operate 24 assisted living communities, five independent living communities, and 36 homecare programs. 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.

 

 

 

 

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Page 2

 

Consolidated Statements of Income

(in thousands, except share and per share amounts)
   

Three Months Ended

   

Year Ended

 
   

December 31

   

December 31

 
   

2017

   

2016

   

2017

   

2016

 
   

(unaudited)

                 

Revenues:

                               

Net patient revenues

  $ 33,989     $ 227,484     $ 19,843     $ 880,724  

Other revenues

    12,322       10,517       47,153       45,914  

Net operating revenues

    246,311       238,001       966,996       926,638  
                                 

Costs and expenses:

                               

Salaries, wages and benefits

    145,404       142,516       572,043       548,007  

Other operating

    62,156       56,262       252,934       233,833  

Facility rent

    10,094       10,332       40,367       41,292  

Depreciation and amortization

    11,043       10,176       42,652       39,023  

Interest

    1,291       1,028       4,890       3,941  

Total costs and expenses

    229,988       220,314       912,886       866,096  
                                 

Income before non-operating income

    16,323       17,687       54,110       60,542  

Non-operating income

    4,392       4,876       20,439       19,665  
                                 

Income before income taxes

    20,715       22,563       74,549       80,207  

Income tax (provision)/benefit

    581       (8,700 )     (18,867 )     (29,669 )

Net income

    21,296       13,863       55,682       50,538  
                                 

Loss attributable to noncontrolling interest

    174       -       523       -  
                                 

Net income attributable to National HealthCare Corporation

  $ 21,470     $ 13,863     $ 56,205     $ 50,538  
                                 

Earnings per common share

                               

Basic

  $ 1.41     $ 0.92     $ 3.70     $ 3.34  

Diluted

  $ 1.41     $ 0.91     $ 3.69     $ 3.32  
                                 
Weighted average common shares outstanding                                

Basic

    15,200,619       15,150,514       15,189,920       15,134,518  

Diluted

    15,222,343       15,176,453       15,218,962       15,206,997  
                                 

Dividends declared per common share

  $ 0.48     $ 0.45     $ 1.89     $ 1.75  

 

Balance Sheet Data

               

(in thousands)

 

Dec. 31

   

Dec. 31

 
   

2017

   

2016

 
                 

Cash, cash equivalents and marketable securities

  $ 198,203     $ 164,348  

Restricted cash, cash equivalents and marketable securities

    174,698       188,958  

Current assets

    329,311       290,857  

Property and equipment, net

    549,319       559,624  

Total assets

    1,096,526       1,087,447  

Current liabilities

    155,065       150,928  

Long-term debt

    100,000       120,000  

NHC stockholders' equity

    702,738       669,611  

 

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Page 3

 

Selected Operating Statistics

 

   

Three Months Ended

   

Year Ended

 
   

December 31

   

December 31

 
   

2017

   

2016

   

2017

   

2016

 
   

(unaudited)

                 

Skilled Nursing Per Diems:

                               

Medicare

  $ 459.14     $ 462.59     $ 460.82     $ 452.51  

Managed Care

    400.91       413.40       405.67       404.78  

Medicaid

    187.07       186.24       186.53       182.89  

Private Pay and Other

    231.17       225.98       231.61       224.53  
                                 

Average Skilled Nursing Per Diem

  $ 265.30     $ 262.87     $ 266.45     $ 259.80  
                                 

Skilled Nursing Patient Days:

                               

Medicare

    121,295       115,970       481,580       475,637  

Managed Care

    58,421       56,342       244,908       222,635  

Medicaid

    321,653       325,940       1,281,432       1,284,722  

Private Pay and Other

    183,633       180,787       725,460       712,570  
                                 

Total Skilled Nursing Patient Days

    685,002       679,039       2,733,380       2,695,564