NHC Reports 2024 Year End Earnings

Rhea-AI Summary

National HealthCare (NYSE American: NHC) reported strong financial results for 2024, with net operating revenues and grant income reaching $1.31 billion, a 14.5% increase from 2023's $1.14 billion. The growth was driven by a 9.4% increase in same-facility revenues and the strategic acquisition of White Oak Manor on August 1, 2024, which added 22 healthcare operations to NHC's portfolio.

The company's GAAP net income for 2024 rose to $101.9 million ($6.53 per diluted share), up from $66.8 million ($4.34 per diluted share) in 2023. Adjusted net income, excluding unrealized gains in marketable equity securities, increased 39.9% to $76.9 million ($4.93 per diluted share) from $54.9 million ($3.55 per diluted share) in 2023.

Positive

• 14.5% increase in annual revenue to $1.31B
• 39.9% growth in adjusted net income to $76.9M
• 9.4% increase in same-facility revenues
• Strategic expansion through White Oak Manor acquisition (22 facilities)
• 62.7% increase in Q4 adjusted net income

Negative

• Q4 2024 GAAP net income declined to $6.1M from $28.4M in Q4 2023

Insights

Financial Analyst

National HealthCare 's 2024 financial results demonstrate exceptional growth across multiple dimensions, with revenues reaching $1.31 billion (up 14.5%) and adjusted net income surging 39.9% to $76.9 million. This performance significantly outpaces typical growth rates in the senior healthcare sector, which generally range from 3-5% annually.

The 9.4% same-facility revenue growth is particularly impressive, reflecting strong organic performance independent of acquisitions. This suggests substantial operational improvements in existing facilities, likely through a combination of increased occupancy rates, higher reimbursement rates, and potentially expanded service offerings.

The August 2024 White Oak Manor acquisition represents a transformative expansion, adding 22 facilities to NHC's portfolio. Based on the fourth quarter results, this acquisition appears to be integrating successfully, contributing to the remarkable 62.7% increase in Q4 adjusted net income. The diversified nature of these new assets (spanning skilled nursing, assisted living, independent living, and pharmacy services) strengthens NHC's integrated care model and reduces reimbursement risk through service diversification.

The substantial gap between GAAP and adjusted earnings warrants attention. While adjusted earnings grew impressively, GAAP quarterly earnings actually declined from $28.4 million to $6.1 million year-over-year. This divergence likely stems from significant unrealized losses in their equity portfolio during Q4 2024, contrasting with gains in the prior year period. Investors should view this as a financial reporting matter rather than an operational concern.

These results position NHC favorably in the growing senior healthcare market, with demonstrated ability to drive both organic growth and successfully integrate acquisitions. The company's expanded footprint should provide economies of scale and enhanced geographic coverage, potentially supporting continued margin expansion in 2025.

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 grant income for the year ended December 31, 2024 totaled $1,307,382,000 compared to $1,141,544,000 for the year ended December 31, 2023, an increase of 14.5%. The increase in net operating revenues for the 2024 year compared to the 2023 year was due to a 9.4% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Manor (“White Oak”). The White Oak operations consist of 22 healthcare operations, which includes 15 skilled nursing facilities, two assisted living facilities, four independent living facilities, and a long-term care pharmacy.

For the year ended December 31, 2024, the reported GAAP net income attributable to NHC was $101,927,000 compared to $66,798,000 for the 2023 year. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2024 was $76,862,000 compared to $54,934,000 for the 2023 year ^(*), an increase of 39.9%. GAAP diluted earnings per share were $6.53 and $4.34 for the years ended December 31, 2024 and 2023, respectively. Adjusted diluted earnings per share were $4.93 and $3.55 for the years ended December 31, 2024 and 2023, respectively ^(*).

For the quarter ended December 31, 2024, the reported GAAP net income attributable to NHC was $6,081,000 compared to $28,406,000 for the same period in 2023. Excluding the unrealized gains or losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2024 was $25,954,000 compared to $15,955,000 for the same period in 2023, an increase of 62.7% ^(*). The GAAP diluted earnings per share were $0.39 and $1.83 for the quarters ended December 31, 2024 and 2023, respectively. Adjusted diluted earnings per share were $1.66 and $1.03 for the quarters ended December 31, 2024 and 2023, 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 80 skilled nursing facilities with 10,341 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 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								Years Ended
	December 31								December 31
		2024				2023				2024				2023
Revenues and grant income:
Net patient revenues	$	357,344			$	282,997			$	1,251,759			$	1,087,614
Other revenues		12,006				17,917				46,178				53,930
Government stimulus income		-				-				9,445				-
Net operating revenues and grant income		369,350				300,914				1,307,382				1,141,544
Costs and expenses:
Salaries, wages and benefits		234,321				186,562				810,930				712,344
Other operating		83,298				70,970				321,390				288,183
Facility rent		11,378				11,438				43,182				41,525
Depreciation and amortization		11,442				11,768				41,985				42,034
Interest		2,347				56				4,135				324
Total costs and expenses		342,786				280,794				1,221,622				1,084,410
Income from operations		26,564				20,120				85,760				57,134
Non-operating income		4,825				4,544				19,690				16,660
Unrealized gains/(losses) on marketable equity securities		(25,332	)			12,001				30,958				14,944
Income before income taxes		6,057				36,665				136,408				88,738
Income tax provision		(28	)			(8,700	)			(34,322	)			(23,450	)
Net income		6,029				27,965				102,086				65,288
Net (income)/loss attributable to noncontrolling interest		52				441				(159	)			1,510
Net income attributable to National HealthCare Corporation	$	6,081			$	28,406			$	101,927			$	66,798
Net income per common share
Basic	$	0.39			$	1.86			$	6.62			$	4.36
Diluted	$	0.39			$	1.83			$	6.53			$	4.34
Weighted average common shares outstanding
Basic		15,420,658				15,306,253				15,393,782				15,310,142
Diluted		15,665,025				15,486,573				15,598,528				15,377,343
Dividends declared per common share	$	0.61			$	0.59			$	2.42			$	2.34
Balance Sheet Data	December 31				December 31
(in thousands)		2024				2023
Cash, cash equivalents and marketable securities	$	216,185			$	223,620
Restricted cash, cash equivalents and marketable securities		163,795				167,971
Current assets		424,408				406,235
Property and equipment, net		684,289				493,329
Total assets		1,524,429				1,310,796
Current liabilities, excluding long-term debt due within one year		227,297				214,476
Current and long-term debt		137,000				-
NHC stockholders' equity		980,161				908,752

Selected Operating Statistics
	Three Months Ended								Years Ended
	December 31								December 31
		2024				2023				2024				2023
Skilled Nursing Per Diems:
Medicare	$	607.67			$	579.84			$	586.76			$	559.07
Managed Care		490.41				478.51				468.23				464.89
Medicaid		279.02				268.58				275.78				253.95
Private Pay and Other		321.12				290.85				316.80				282.14
Average Skilled Nursing Per Diem	$	350.72			$	337.57		(1)	$	346.46		(1)	$	324.53		(1)
Skilled Nursing Patient Days:
Medicare		84,809				79,025				320,524				318,253
Managed Care		76,996				62,031				276,019				242,023
Medicaid		374,755				288,538				1,281,020				1,140,612
Private Pay and Other		191,926				170,916				677,449				663,195
Total Skilled Nursing Patient Days		728,486				600,510		(1)		2,555,012		(1)		2,364,083		(1)
(1) NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the first quarter of 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $259.56 and 20,267 patient days. For the three months ended December 31, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $253.84 and 31,761 patient days. For the year ended December 31, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $249.85 and 126,791 patient days.
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
	Three Months Ended								Years Ended
	December 31								December 31
		2024				2023				2024				2023
Net income attributable to National Healthcare Corporation	$	6,081			$	28,406			$	101,927			$	66,798
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities		25,332				(12,001	)			(30,958	)			(14,944	)
Gain on sale of property and equipment		-				(6,230	)			-				(6,230	)
Gain on sale of unconsolidated company		-				-				(1,024	)			-
Operating results for newly opened operations not at full capacity (2)		(10	)			742				130				2,359
Stock-based compensation expense		1,098				663				4,160				2,782
Acquisition-related expenses (3)		435				-				3,266				-
Employee retention credit		-				-				(9,445	)			-
Income tax provision on non-GAAP adjustments		(6,982	)			4,375				8,806				4,169
Non-GAAP Net income	$	25,954			$	15,955			$	76,862			$	54,934
GAAP diluted earnings per share	$	0.39			$	1.83			$	6.53			$	4.34
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities		1.20				(0.57	)			(1.47	)			(0.72	)
Gain on sale of property and equipment		-				(0.30	)			-				(0.30	)
Gain on sale of unconsolidated company		-				-				(0.05	)			-
Operating results for newly opened operations not at full capacity (2)		-				0.04				0.01				0.10
Stock-based compensation expense		0.05				0.03				0.20				0.13
Acquisition-related expenses (3)		0.02				-				0.16				-
Employee retention credit		-				-				(0.45	)			-
Non-GAAP diluted earnings per share	$	1.66			$	1.03			$	4.93			$	3.55
(2) The operating results for newly opened facilities or agencies not at full capacity include healthcare operations that are still considered in the start-up phase, which are two hospice agencies for the fourth quarter and year ended December 31, 3024. For the fourth quarter and year ended December 31, 2023, included are two behavioral health hospitals, two homecare agencies, and two hospice agencies.
(3) Represents expenses incurred to acquire the White Oak operations that are not capitalizable.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227122228/en/

Brian F. Kidd, SVP/CFO

Phone: (615) 890-2020

Source: National HealthCare Corporation

FAQ

What was NHC's revenue growth in 2024 compared to 2023?

NHC's net operating revenues grew 14.5% to $1.31 billion in 2024, up from $1.14 billion in 2023.

How many facilities did NHC acquire through the White Oak Manor acquisition in 2024?

NHC acquired 22 healthcare operations from White Oak Manor, including 15 skilled nursing facilities, 2 assisted living facilities, 4 independent living facilities, and a long-term care pharmacy.

What was NHC's adjusted earnings per share for full-year 2024?

NHC's adjusted diluted earnings per share for 2024 was $4.93, compared to $3.55 in 2023.

How much did NHC's same-facility revenues increase in 2024?

NHC's same-facility net operating revenues increased by 9.4% in 2024.

What was NHC's net income growth in Q4 2024?

NHC's adjusted net income for Q4 2024 increased 62.7% to $25.95 million, compared to $15.96 million in Q4 2023.