NHC Reports Second Quarter 2022 Earnings
08/05/2022 - 05:09 AM
MURFREESBORO, Tenn. --(BUSINESS WIRE)--
National HealthCare Corporation (NYSE American: NHC ), the nation's oldest publicly traded senior health care company, announced today net operating revenues and government stimulus income for the quarter ended June 30, 2022 totaled $271,359,000 compared to $263,158,000 for the quarter ended June 30, 2021 , an increase of 3.1% . The net operating revenues increase during the second quarter of 2022 was primarily driven by the continued occupancy increase in our skilled nursing facilities, as well as the June 2021 acquisition of Caris HealthCare , a hospice provider. The net patient revenue increases were offset by the reduction in government stimulus income of $14.8 million during the second quarter of 2022 compared to the same period a year ago.
For the quarter ended June 30, 2022 , the reported GAAP net income attributable to NHC was $3,203,000 compared to $104,883,000 for the same period in 2021. The large increase in our reported GAAP net income for the second quarter of 2021 was primarily due to the gain recorded from the acquisition of Caris HealthCare, L.P. Excluding the gain on the Caris HealthCare, L.P. acquisition, as well as the unrealized losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended June 30, 2022 was $7,172,000 compared to $15,077,000 for the same period in 2021 (*) . The decrease in non-GAAP earnings for the second quarter of 2022 compared to the same period in 2021 was primarily due to the $14.8 million less of government stimulus income recorded, as well as incurring inflationary wage pressures on our labor costs. GAAP diluted earnings per share was $0.21 for the quarter ended June 30, 2022 compared to $6.80 for the same period in 2021. Adjusted diluted earnings per share were $0.46 and $0.98 for the quarters ended June 30, 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 75 skilled nursing facilities with 9,447 beds. NHC affiliates also operate 24 assisted living communities with 1,210 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, 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.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended
Six Months Ended
June 30
June 30
2022
2021
2022
2021
(unaudited)
(unaudited)
Revenues and grant income:
Net patient revenues
$
260,077
$
236,976
$
516,414
$
453,831
Other revenues
10,962
11,056
22,988
22,425
Government stimulus income
320
15,126
10,940
37,875
Net operating revenues and grant income
271,359
263,158
550,342
514,131
Costs and expenses:
Salaries, wages and benefits
174,936
163,868
345,630
313,025
Other operating
71,311
64,979
145,396
131,105
Facility rent
10,411
10,170
20,476
20,233
Depreciation and amortization
10,001
10,131
19,758
20,292
Interest
149
215
314
459
Total costs and expenses
266,808
249,363
531,574
485,114
Income from operations
4,551
13,795
18,768
29,017
Non-operating income
2,521
5,586
5,720
11,846
Gain on acquisition of equity method investment
-
95,202
-
95,202
Unrealized gains/(losses) on marketable equity securities
(3,549
)
(6,489
)
(423
)
570
Income before income taxes
3,523
108,094
24,065
136,635
Income tax provision
(1,362
)
(2,764
)
(6,555
)
(9,997
)
Net income
2,161
105,330
17,510
126,638
Net (income)/loss attributable to noncontrolling interest
1,042
(447
)
1,011
(488
)
Net income attributable to National HealthCare Corporation
$
3,203
$
104,883
$
18,521
$
126,150
Net income per common share
Basic
$
0.21
$
6.83
$
1.20
$
8.22
Diluted
$
0.21
$
6.80
$
1.20
$
8.19
Weighted average common shares outstanding
Basic
15,452,402
15,349,162
15,434,718
15,338,400
Diluted
15,487,123
15,419,012
15,475,553
15,404,634
Dividends declared per common share
$
0.57
$
0.52
$
1.12
$
1.04
Balance Sheet Data
June 30
Dec. 31
(in thousands)
2022
2021
(unaudited)
Cash, cash equivalents and marketable securities
$
219,831
$
256,025
Restricted cash, cash equivalents and marketable securities
167,071
175,884
Current assets
394,781
426,638
Property and equipment, net
515,771
520,996
Total assets
1,350,469
1,403,396
Current liabilities
224,365
263,201
NHC stockholders' equity
897,915
903,004
Selected Operating Statistics
Three Months Ended
Six Months Ended
June 30
June 30
2022
2021
2022
2021
(unaudited)
(unaudited)
Skilled Nursing Per Diems:
Medicare
$
540.15
$
523.70
$
542.48
$
530.80
Managed Care
413.58
408.81
423.56
407.18
Medicaid
226.40
226.75
227.45
222.57
Private Pay and Other
268.70
256.58
269.42
252.28
Average Skilled Nursing Per Diem
$
297.63
$
298.55
$
301.66
$
297.90
Skilled Nursing Patient Days :
Medicare
85,438
92,163
177,021
183,490
Managed Care
55,230
64,196
110,867
126,107
Medicaid
313,171
300,875
617,431
579,976
Private Pay and Other
166,454
148,247
320,409
281,214
Total Skilled Nursing Patient Days
620,293
605,481
1,225,728
1,170,787
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
Three Months Ended
Six Months Ended
June 30
June 30
2022
2021
2022
2021
(unaudited)
(unaudited)
Net income attributable to National Healthcare Corporation
$
3,203
$
104,883
$
18,521
$
126,150
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
3,549
6,489
423
(570
)
Operating results for newly opened facilities not at full capacity (1)
1,185
120
1,928
365
Gain on acquisition of equity method investment
-
(95,202
)
-
(95,202
)
Stock-based compensation expense
629
683
1,341
1,179
Income tax benefit on non-GAAP adjustments
(1,394
)
(1,896
)
(960
)
(253
)
Non-GAAP Net income
$
7,172
$
15,077
$
21,253
$
31,669
GAAP diluted earnings per share
$
0.21
$
6.80
$
1.20
$
8.19
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
0.16
0.31
0.02
(0.03
)
Operating results for newly opened facilities not at full capacity (1)
0.06
0.01
0.09
0.02
Gain on acquisition of equity method investment
-
(6.17
)
-
(6.18
)
Stock-based compensation expense
0.03
0.03
0.06
0.06
Non-GAAP diluted earnings per share
$
0.46
$
0.98
$
1.37
$
2.06
(1) The newly opened facilities 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 facilities for the 2021 period presented consisted of operations opened from 2019 through 2021. The 2021 period consisted of one memory care facility.
View source version on businesswire.com : https://www.businesswire.com/news/home/20220805005037/en/
Brian F. Kidd , SVP/Controller
Phone: (615) 890-2020
Source: National HealthCare Corporation
National Healthcare Corp.
NHC Rankings
#1358 Ranked by Stock Gains
NHC Stock Data
Industry
General Medical and Surgical Hospitals
Sector
Health Care and Social Assistance
Tags
Health Services, Hospital/Nursing Management, Health Care and Social Assistance, General Medical and Surgical Hospitals
About NHC
national healthcare corporation (nhc) has been providing the best in senior care for almost 50 years. at nhc, we believe that care should respect the individual, promote recovery, wellbeing and independence. we believe in celebrating life every day at our centers.in nhc communities, we currently operate 75 skilled nursing centers, 25 assisted living communities, a behavioral health hospital, five retirement communities and 35 homecare agencies. other services include memory care, senior care pharmacies, hospital, rehabilitation services and management and accounting services to third parties.nhc is recognized nationwide as an innovator in the delivery of quality long-term care. our goal has always been to provide a full range of extended care services, designed to maximize the wellbeing and independence of patients of all ages. we are dedicated to meeting patient needs through an interdisciplinary approach combining compassionate care with cost-effective health care services.