NHC Reports Year End Earnings

MURFREESBORO, Tenn.--(BUSINESS WIRE)-- National HealthCare Corporation (NYSE MKT: NHC)(NYSE MKT: NHC.PRA), the nation's oldest publicly traded long-term health care company, today announced net income available to common shareholders of $49,286,000 or $3.56 per share basic for the year ended December 31, 2012, compared to $55,401,000 or $4.02 per share basic for the year ended December 31, 2011, a decrease of 11.0%. Annual operating revenues in 2012 decreased 1.6% from $773,537,000 to $761,262,000.

For comparative purposes, operating expenses for the 2011 year included a favorable result within our accrued risk reserves of $10,500,000 (approximately $6,825,000 after income taxes or $0.50 per common share basic), thus lowering the 2011 expense. Excluding this adjustment, the year ended December 31, 2012 would have reflected an increase of 4.5% in income before taxes and an increase of 1.5% in net income available to common shareholders (after taxes) compared to 2011.


Fourth quarter of 2012 net income available to common shareholders was $12,266,000 or 88 cents per basic share, compared to $12,358,000 or 89 cents per basic share in the fourth quarter of 2011, a decrease of 0.7%. Operating revenues for the fourth quarter of 2012 increased 0.7% from $192,742,000 to $194,043,000.

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

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.

       
NHC Reports Year End Earnings
 
Consolidated Statements of Income
(in thousands, except share and per share amounts)
 
Three Months Ended Twelve Months Ended
December 31 December 31
Revenues: 2012 2011 2012 2011
Net patient revenues $ 180,175 $ 178,958 $ 705,386 $ 715,489
Other revenues   13,868     13,784     55,876     58,048  

Net operating revenues

  194,043     192,742     761,262     773,537  
 
Costs and Expenses:
Salaries, wages and benefits 108,906 108,247 426,934 428,672
Other operating 49,420 50,355 198,691 198,439
Facility rent 9,848 9,992 39,355 39,736
Depreciation and amortization 7,624 7,557 29,792 28,901
Interest   110     110     455     443  
Total costs and expenses   175,908     176,261     695,227     696,191  
 
Income Before Non-Operating Income 18,135 16,481 66,035 77,346
Non-Operating Income   6,699     5,677     25,245     20,533  
 
Income Before Income Taxes 24,834 22,158 91,280 97,879
Income Tax Provision   (10,400 )   (7,632 )   (33,323 )   (33,807 )
 
Net Income 14,434 14,526 57,957 64,072
 
Dividends to Preferred Stockholders   (2,168 )   (2,168 )   (8,671 )   (8,671 )
 
Net Income Available to Common Stockholders $ 12,266   $ 12,358   $ 49,286   $ 55,401  
 
Earnings Per Common Share
Basic $ 0.88 $ 0.89 $ 3.56 $ 4.02
Diluted $ 0.87 $ 0.88 $ 3.49 $ 3.90
 
Weighted average common shares outstanding
Basic 13,872,472 13,811,852 13,852,709 13,774,628
Diluted 14,034,532 16,442,767 16,598,816 16,414,023
 
 
Balance Sheet Data
(in thousands) Dec. 31 Dec. 31
2012 2011
Cash and marketable securities $ 173,951 $ 146,059
Restricted cash and marketable securities 146,770 134,212
Current assets 414,979 368,198
Property and equipment, net 420,907 429,651
Total assets 920,181 870,424
Current liabilities 226,495 220,659
Long-term debt 10,000 10,000
Stockholders' equity 659,672 611,736
 

 

       
NHC Reports Year End Earnings
 
Selected Operating Statistics
 
Three Months Ended Twelve Months Ended
December 31 December 31
2012 2011 2012 2011
Per Diems:
Medicare $ 434.47 $ 427.45 $ 430.13 $ 452.32
Managed Care $ 408.76 $ 400.80 $ 408.22 $ 415.03
Medicaid $ 165.68 $ 158.31 $ 159.65 $ 157.48
Private Pay and Other $ 192.95 $ 183.49 $ 192.42 $ 185.96
 
Patient Days:
Medicare 118,006 115,000 478,767 466,325
Managed Care 33,387 27,899 124,801 106,489
Medicaid 270,200 287,798 1,088,944 1,139,880
Private Pay and Other   151,004   153,439   599,966   606,975
572,597 584,136 2,292,478 2,319,669
 
Average Per Diem $ 242.44 $ 229.49 $ 238.25 $ 236.03
 



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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