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 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

KEYWORDS: United States North America Tennessee

INDUSTRY KEYWORDS:

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