NHC Reports First Quarter 2024 Earnings
National HealthCare (NYSE American: NHC) reported a significant increase in net operating revenues and net income for the first quarter of 2024. The company's net operating revenues reached $297,176,000, representing a 10.2% growth compared to the same period in 2023. GAAP net income attributable to NHC was $26,213,000, a substantial increase from $11,723,000 in 2023. Adjusted net income also saw a significant rise, reaching $15,048,000, up by 24.7%. Earnings per share showed positive growth, with GAAP diluted earnings per share at $1.69 and adjusted diluted earnings per share at $0.97 for the first quarter of 2024.
- Significant increase in net operating revenues by 10.2% for the first quarter of 2024 compared to 2023
- Net income attributable to NHC saw a substantial increase to $26,213,000 from $11,723,000 in 2023
- Adjusted net income rose by 24.7% to $15,048,000 for the first quarter of 2024
- Positive growth in earnings per share, with GAAP diluted earnings per share at $1.69 and adjusted diluted earnings per share at $0.97 for the first quarter of 2024
- None.
Insights
Examining National HealthCare Corporation's (NHC) first quarter report, there's a notable increase in net operating revenues by
Moreover, the GAAP net income has more than doubled, surging from
Adjusted diluted earnings per share (EPS) have also seen an uptick from
From an industry perspective, NHC's performance must be contextualized within the broader senior health care sector. The impressive revenue uptick is likely a result of the demographic shift towards an aging population, which has been leading to an increased demand for healthcare services.
Investors should consider the sustainability of this growth, as the aging trend is long-term. With health care costs rising and regulatory changes possibly on the horizon, NHC's ability to sustain profit margins will be critical. Competition in the healthcare sector also remains fierce, with many players vying for market share in senior care.
It's essential to gauge investor sentiment surrounding this earnings report. NHC's significant increase in revenues and net income is likely to be well-received, signaling operational efficiency and a strong market position. However, investors should remain alert to the fact that these figures are bolstered by non-operational income, which may not be recurrent.
Long-term investors may find the adjusted net income figures more indicative of sustainable performance. As this growth rate exceeds industry averages, it positions NHC favorably in the market. Nonetheless, it's prudent to monitor future revenue streams and cost management strategies to ensure ongoing growth aligns with these positive results.
For the quarter ended March 31, 2024, the reported GAAP net income attributable to NHC was
(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.
About NHC
NHC affiliates operate for themselves and third parties 65 skilled nursing facilities with 8,421 beds. NHC affiliates also operate 24 assisted living communities with 1,365 units, five independent living communities with 475 units, three behavioral health hospitals, 34 homecare agencies, and 30 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 | |||||||||
| March 31 | |||||||||
|
2024 |
|
|
2023 |
|
||||
| (unaudited) | |||||||||
| Revenues: | |||||||||
| Net patient revenues | $ |
285,823 |
|
$ |
258,007 |
|
|||
| Other revenues |
|
11,353 |
|
|
11,556 |
|
|||
| Net operating revenues |
|
297,176 |
|
|
269,563 |
|
|||
| Costs and expenses: | |||||||||
| Salaries, wages and benefits |
|
183,138 |
|
|
167,824 |
|
|||
| Other operating |
|
77,429 |
|
|
71,489 |
|
|||
| Facility rent |
|
10,348 |
|
|
10,092 |
|
|||
| Depreciation and amortization |
|
10,586 |
|
|
10,048 |
|
|||
| Interest |
|
46 |
|
|
98 |
|
|||
| Total costs and expenses |
|
281,547 |
|
|
259,551 |
|
|||
| Income from operations |
|
15,629 |
|
|
10,012 |
|
|||
| Non-operating income |
|
5,685 |
|
|
4,323 |
|
|||
| Unrealized gains on marketable equity securities |
|
14,399 |
|
|
1,386 |
|
|||
| Income before income taxes |
|
35,713 |
|
|
15,721 |
|
|||
| Income tax provision |
|
(9,462 |
) |
|
(4,436 |
) |
|||
| Net income |
|
26,251 |
|
|
11,285 |
|
|||
| Net (income)/loss attributable to noncontrolling interest |
|
(38 |
) |
|
438 |
|
|||
| Net income attributable to National HealthCare Corporation | $ |
26,213 |
|
$ |
11,723 |
|
|||
| Net income per common share | |||||||||
| Basic | $ |
1.71 |
|
$ |
0.76 |
|
|||
| Diluted | $ |
1.69 |
|
$ |
0.76 |
|
|||
| Weighted average common shares outstanding | |||||||||
| Basic |
|
15,350,240 |
|
|
15,337,423 |
|
|||
| Diluted |
|
15,505,096 |
|
|
15,356,335 |
|
|||
| Dividends declared per common share | $ |
0.59 |
|
$ |
0.57 |
|
|||
| Balance Sheet Data | March 31 | December 31 | |||||||
| (in thousands) |
|
2024 |
|
|
2023 |
|
|||
| (unaudited) | |||||||||
| Cash, cash equivalents and marketable securities | $ |
217,506 |
|
$ |
223,620 |
|
|||
| Restricted cash, cash equivalents and marketable securities |
|
180,598 |
|
|
167,971 |
|
|||
| Current assets |
|
417,586 |
|
|
406,235 |
|
|||
| Property and equipment, net |
|
488,698 |
|
|
493,329 |
|
|||
| Total assets |
|
1,319,640 |
|
|
1,310,796 |
|
|||
| Current liabilities |
|
206,429 |
|
|
214,476 |
|
|||
| NHC stockholders' equity |
|
924,748 |
|
|
908,752 |
|
|||
| Selected Operating Statistics | |||||||
| Three Months Ended | |||||||
| March 31 | |||||||
|
2024 |
|
|
2023 |
|
||
| (unaudited) | |||||||
| Skilled Nursing Per Diems: | |||||||
| Medicare | $ |
581.75 |
|
$ |
555.85 |
|
|
| Managed Care |
|
470.56 |
|
|
444.95 |
|
|
| Medicaid |
|
265.27 |
|
|
236.78 |
|
|
| Private Pay and Other |
|
307.84 |
|
|
278.55 |
|
|
| Average Skilled Nursing Per Diem | $ |
343.48 |
|
$ |
315.81 |
|
|
| Skilled Nursing Patient Days: | |||||||
| Medicare |
|
81,156 |
|
|
84,032 |
|
|
| Managed Care |
|
65,431 |
|
|
58,446 |
|
|
| Medicaid |
|
281,821 |
|
|
276,506 |
|
|
| Private Pay and Other |
|
157,443 |
|
|
157,422 |
|
|
| Total Skilled Nursing Patient Days |
|
585,851 |
|
|
576,406 |
|
|
|
|||||||
| The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts): | |||||||
| Three Months Ended | |||||||
| March 31 | |||||||
|
2024 |
|
|
2023 |
|
||
| (unaudited) | |||||||
| Net income attributable to National Healthcare Corporation | $ |
26,213 |
|
$ |
11,723 |
|
|
| Non-GAAP adjustments | |||||||
| Unrealized gains on marketable equity securities |
|
(14,399 |
) |
|
(1,386 |
) |
|
| Operating results for newly opened operations not at full capacity (1) |
|
(457 |
) |
|
1,217 |
|
|
| Gain on sale of unconsolidated company |
|
(1,025 |
) |
|
- |
|
|
| Stock-based compensation expense |
|
793 |
|
|
639 |
|
|
| Income tax provision on non-GAAP adjustments |
|
3,923 |
|
|
(122 |
) |
|
| Non-GAAP Net income | $ |
15,048 |
|
$ |
12,071 |
|
|
| GAAP diluted earnings per share | $ |
1.69 |
|
$ |
0.76 |
|
|
| Non-GAAP adjustments | |||||||
| Unrealized gains on marketable equity securities |
|
(0.69 |
) |
|
(0.06 |
) |
|
| Operating results for newly opened operations not at full capacity (1) |
|
(0.02 |
) |
|
0.06 |
|
|
| Gain on sale of unconsolidated company |
|
(0.05 |
) |
|
- |
|
|
| Stock-based compensation expense |
|
0.04 |
|
|
0.03 |
|
|
| Non-GAAP diluted earnings per share | $ |
0.97 |
|
$ |
0.79 |
|
|
| (1) The newly opened operations not at full capacity for the 2024 period presented consisted of operations opened from 2022 through 2024. This consisted of two behavioral health hospitals, two homecare agencies and two hospice agencies. The newly opened operations for the 2023 period presented consisted of operations opened from 2021 through 2023. This consisted of two behavioral health hospitals, one homecare agency and two hospice agencies. | |||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240510888527/en/
Brian F. Kidd, SVP/CFO
Phone: (615) 890-2020
Source: National HealthCare Corporation
FAQ
What were National HealthCare 's net operating revenues for the first quarter of 2024?
What was National HealthCare 's GAAP net income for the first quarter of 2024?
How did National HealthCare 's adjusted net income change in the first quarter of 2024 compared to 2023?
What were National HealthCare 's diluted earnings per share for the first quarter of 2024?
