NHC Reports Third Quarter Earnings

NHC Reports Third Quarter Earnings

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 EndedNine Months Ended
September 30September 30
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 benefits106,844106,870318,028320,425
Other operating48,51954,807149,271148,084
Facility rent9,81310,00029,50729,744
Depreciation and amortization7,4027,30722,16821,344
Interest 119  136  345  333 
Total costs and expenses 172,697  179,120  519,319  519,930 
Income Before Non-Operating Income16,67117,94447,90060,865
Non-Operating Income 6,771  5,140  18,546  14,856 
Income Before Income Taxes23,44223,08466,44675,721
Income Tax Provision (6,209) (5,873) (22,923) (26,175)
Net Income17,23317,21143,52349,546
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
Weighted average common shares outstanding
Balance Sheet Data
(in thousands)Sept. 30Dec. 31
Cash and marketable securities$326,651$280,271
Current assets397,937362,186
Property and equipment, net421,843429,651
Total assets906,093865,672
Current liabilities218,769215,907
Long-term debt10,00010,000
Stockholders' equity652,502611,736
Selected Operating Statistics
Three Months EndedNine Months Ended
September 30September 30
Per Diems:
Managed Care$411.52$424.22$408.02$419.64
Private Pay and Other$192.93$188.00$192.24$187.66
Patient Days:
Managed Care32,47128,00991,41478,671
Private Pay and Other 153,217 153,259 448,962 454,701
Average Per Diem$238.20$240.30$237.36$238.56

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

KEYWORDS:   United States  North America  Tennessee


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