Financial News

NHC Reports 2022 Year End Earnings

National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues and grant income for the year ended December 31, 2022 totaled $1,085,738,000 compared to $1,074,302,000 for the year ended December 31, 2021, an increase of 1.1%. The net operating revenues increase in 2022 was despite a reduction in government stimulus income of $51.9 million compared to 2021.

For the year ended December 31, 2022, the reported GAAP net income attributable to NHC was $22,445,000 compared to $138,590,000 for the 2021 year. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2022 was $37,323,000 compared to $62,645,000 for the 2021 year (*). The decrease in non-GAAP earnings for 2022 compared to 2021 was primarily due to the $51.9 million decrease of government stimulus income recorded. GAAP diluted earnings per share were $1.45 compared to $8.99 for the years ended December 31, 2022 and 2021, respectively. Adjusted diluted earnings per share were $2.42 compared to $4.06 for the years ended December 31, 2022 and 2021, respectively (*).

For the quarter ended December 31, 2022, the reported GAAP net income attributable to NHC was $6,353,000 compared to $15,788,000 for the same period in 2021. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2022 was $11,046,000 compared to $15,801,000 for the same period in 2021 (*). The decrease in non-GAAP earnings for the quarter ended December 31, 2022 compared to the fourth quarter of 2021 was primarily due to the $14.5 million decrease of government stimulus income recorded. The GAAP diluted earnings per share were $0.41 compared to $1.02 for the quarters ended December 31, 2022 and 2021, respectively. Adjusted diluted earnings per share were $0.72 and $1.02 for the quarters ended December 31, 2022 and 2021, respectively (*).

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

NHC affiliates operate for themselves and third parties 68 skilled nursing facilities with 8,726 beds. NHC affiliates also operate 23 assisted living communities with 1,181 units, five independent living communities with 475 units, three behavioral health hospitals, 35 homecare agencies, and 29 hospice agencies. NHC’s other services include Alzheimer’s and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com.

Non-GAAP Financial Presentation

The Company is providing certain non-GAAP financial measures as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company’s operations and measure the Company’s performance more consistently across periods. Therefore, the Company believes this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

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. All forward-looking statements represent NHC’s best judgment as of the date of this release.

 
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended Year Ended
December 31 December 31

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues and grant income:
Net patient revenues

$

252,424

 

$

256,894

 

$

1,029,085

 

$

965,542

 

Other revenues

 

11,612

 

 

11,484

 

 

45,196

 

 

45,400

 

Government stimulus income

 

517

 

 

15,056

 

 

11,457

 

 

63,360

 

Net operating revenues and grant income

 

264,553

 

 

283,434

 

 

1,085,738

 

 

1,074,302

 

 
Costs and expenses:
Salaries, wages and benefits

 

167,341

 

 

182,800

 

 

686,169

 

 

666,063

 

Other operating

 

67,365

 

 

62,543

 

 

289,372

 

 

266,754

 

Facility rent

 

10,207

 

 

10,381

 

 

40,977

 

 

40,818

 

Depreciation and amortization

 

10,478

 

 

10,151

 

 

40,489

 

 

40,672

 

Interest

 

112

 

 

188

 

 

563

 

 

845

 

Impairment/(recovery) of assets

 

-

 

 

8,225

 

 

(3,728

)

 

8,225

 

Total costs and expenses

 

255,503

 

 

274,288

 

 

1,053,842

 

 

1,023,377

 

 
Income from operations

 

9,050

 

 

9,146

 

 

31,896

 

 

50,925

 

 
Non-operating income

 

2,690

 

 

2,529

 

 

11,141

 

 

17,774

 

Gain on acquisition of equity method investment

 

-

 

 

-

 

 

-

 

 

95,202

 

Unrealized gains/(losses) on marketable equity securities

 

(4,327

)

 

9,364

 

 

(15,806

)

 

(13,863

)

 
Income before income taxes

 

7,413

 

 

21,039

 

 

27,231

 

 

150,038

 

Income tax provision

 

(1,839

)

 

(5,044

)

 

(7,254

)

 

(10,951

)

Net income

 

5,574

 

 

15,995

 

 

19,977

 

 

139,087

 

 
Net (income)/loss attributable to noncontrolling interest

 

779

 

 

(207

)

 

2,468

 

 

(497

)

 
Net income attributable to National HealthCare Corporation

$

6,353

 

$

15,788

 

$

22,445

 

$

138,590

 

 
Net income per common share
Basic

$

0.41

 

$

1.03

 

$

1.46

 

$

9.03

 

Diluted

$

0.41

 

$

1.02

 

$

1.45

 

$

8.99

 

 
Weighted average common shares outstanding
Basic

 

15,326,680

 

 

15,364,302

 

 

15,410,222

 

 

15,347,129

 

Diluted

 

15,358,488

 

 

15,440,633

 

 

15,447,211

 

 

15,416,716

 

 
Dividends declared per common share

$

0.57

 

$

0.55

 

$

2.26

 

$

2.11

 

 
 
Balance Sheet Data Dec. 31 Dec. 31
(in thousands)

2022

2021

 
 
Cash, cash equivalents and marketable securities

$

182,589

 

$

256,025

 

Restricted cash, cash equivalents and marketable securities

 

158,067

 

 

175,884

 

Current assets

 

353,932

 

 

426,638

 

Property and equipment, net

 

506,532

 

 

520,996

 

Total assets

 

1,275,450

 

 

1,403,396

 

Current liabilities

 

197,887

 

 

263,201

 

NHC stockholders' equity

 

874,276

 

 

903,004

 

Selected Operating Statistics
Three Months Ended Year Ended
December 31 December 31

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Skilled Nursing Per Diems:
Medicare

$

544.11

 

$

530.32

 

$

541.23

 

$

529.03

 

Managed Care

 

482.99

 

 

439.61

 

 

439.07

 

 

414.11

 

Medicaid

 

236.86

 

 

224.61

 

 

232.22

 

 

225.40

 

Private Pay and Other

 

265.55

 

 

259.96

 

 

267.50

 

 

255.60

 

 
Average Skilled Nursing Per Diem

$

310.82

 

$

297.62

 

$

304.04

 

$

297.19

 

 
Skilled Nursing Patient Days:
Medicare

 

82,965

 

 

91,056

 

 

341,926

 

 

362,080

 

Managed Care

 

51,003

 

 

56,133

 

 

214,826

 

 

239,726

 

Medicaid

 

284,208

 

 

317,610

 

 

1,204,139

 

 

1,213,565

 

Private Pay and Other

 

157,174

 

 

158,577

 

 

646,651

 

 

597,802

 

 
Total Skilled Nursing Patient Days

 

575,350

 

 

623,376

 

 

2,407,542

 

 

2,413,173

 

 
 
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
Three Months Ended Year Ended
December 31 December 31

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 
Net income attributable to National Healthcare Corporation

$

6,353

 

$

15,788

 

$

22,445

 

$

138,590

 

Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities

 

4,327

 

 

(9,364

)

 

15,806

 

 

13,863

 

Operating results for newly opened operations not at full capacity (1)

 

1,383

 

 

442

 

 

5,416

 

 

922

 

Gain on acquisition of equity method investment

 

-

 

 

-

 

 

-

 

 

(95,202

)

Impairment/(recovery) of assets

 

-

 

 

8,225

 

 

(3,728

)

 

8,225

 

Stock-based compensation expense

 

632

 

 

715

 

 

2,612

 

 

2,620

 

Income tax benefit on non-GAAP adjustments

 

(1,649

)

 

(5

)

 

(5,228

)

 

(6,373

)

Non-GAAP Net income

$

11,046

 

$

15,801

 

$

37,323

 

$

62,645

 

 
GAAP diluted earnings per share

$

0.41

 

$

1.02

 

$

1.45

 

$

8.99

 

Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities

 

0.21

 

 

(0.45

)

 

0.76

 

 

0.67

 

Operating results for newly opened operations not at full capacity (1)

 

0.07

 

 

0.02

 

 

0.26

 

 

0.04

 

Gain on acquisition of equity method investment

 

-

 

 

-

 

 

-

 

 

(6.16

)

Impairment/(recovery) of assets

 

-

 

 

0.40

 

 

(0.18

)

 

0.39

 

Stock-based compensation expense

 

0.03

 

 

0.03

 

 

0.13

 

 

0.13

 

Non-GAAP diluted earnings per share

$

0.72

 

$

1.02

 

$

2.42

 

$

4.06

 

(1) The newly opened operations not at full capacity for the 2022 period presented consisted of operations opened from 2020 through 2022. This consisted of two behavioral health hospitals, one homecare agency, and one hospice agency. The newly opened operations for the 2021 period presented consisted of operations opened from 2019 through 2021. The 2021 period consisted of one memory care facility and two behavioral health hospitals.

 

Contacts

Brian F. Kidd, SVP/Controller

Phone: (615) 890-2020

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