SEC Info - National Healthcare Corp - ‘8-K’ for 11/5/19

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National Healthcare Corp – ‘8-K’ for 11/5/19 – ‘EX-99.1’

On: Wednesday, 11/6/19, at 4:10pm ET · For: 11/5/19 · Accession #: 1437749-19-21746 · File #: 1-13489

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

11/06/19  National Healthcare Corp          8-K:2,8,9  11/05/19   13:403K                                   RDG Filings/FA

Current Report — Form 8-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     22K 
 2: EX-99.1     Miscellaneous Exhibit                               HTML    135K 
 3: EX-99.2     Miscellaneous Exhibit                               HTML     11K 
11: R1          Document And Entity Information                     HTML     48K 
13: XML         IDEA XML File -- Filing Summary                      XML     12K 
12: XML         XBRL Instance -- nhc20191105_8k_htm                  XML     13K 
10: EXCEL       IDEA Workbook of Financial Reports                  XLSX      6K 
 5: EX-101.DEF  XBRL Definitions -- nhc-20191105_def                 XML     37K 
 6: EX-101.LAB  XBRL Labels -- nhc-20191105_lab                      XML     48K 
 7: EX-101.PRE  XBRL Presentations -- nhc-20191105_pre               XML     36K 
 4: EX-101.SCH  XBRL Schema -- nhc-20191105                          XSD     15K 
 8: JSON        XBRL Instance as JSON Data -- MetaLinks               12±    19K 
 9: ZIP         XBRL Zipped Folder -- 0001437749-19-021746-xbrl      Zip     20K

‘EX-99.1’ — Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

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Exhibit 99.1

For release: November 5, 2019

Contact: Brian F. Kidd, SVP/PAO

Phone: (615) 890-2020

NHC Reports Third Quarter 2019 Earnings

MURFREESBORO, Tenn. -- National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended September 30, 2019 totaled $247,067,000 compared to $246,326,000 for the quarter ended September 30, 2018, an increase of 0.3%.

For the quarter ended September 30, 2019, reported GAAP net income attributable to NHC was $19,461,000 compared to $21,142,000 for the third quarter of 2018. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended September 30, 2019 was $12,934,000 compared to $16,024,000 for the third quarter of 2018⁽¹⁾. For the quarter ended September 30, 2019, the reported GAAP diluted earnings per share was $1.27 and the adjusted diluted earnings per share was $0.84⁽¹⁾.

⁽¹⁾

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 9,510 beds. NHC affiliates also operate 26 assisted living communities, five independent living communities, one behavioral health hospital, and 36 homecare programs. NHC’s other services include Alzheimer’s and memory care units, hospice services, 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 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.

-more-

Consolidated Statements of Income

(in thousands, except share and per share amounts)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2019			2018			2019			2018
	(unaudited)						(unaudited)
Revenues:
Net patient revenues	$	235,090		$	234,827		$	706,465		$	697,173
Other revenues		11,977			11,499			36,038			34,256
Net operating revenues		247,067			246,326			742,503			731,429

Costs and expenses:
Salaries, wages and benefits		152,175			149,188			441,441			434,749
Other operating		66,730			64,507			203,760			192,268
Facility rent		10,167			10,190			30,602			30,691
Depreciation and amortization		10,663			10,437			31,515			31,176
Interest		764			1,170			2,644			3,663
Total costs and expenses		240,499			235,492			709,962			692,547

Income from operations		6,568			10,834			32,541			38,882

Non-operating income		6,663			8,467			20,936			11,056
Unrealized gains on marketable equity securities		9,312			3,486			16,096			417

Income before income taxes		22,543			22,787			69,573			50,355
Income tax provision		(3,167	)		(1,700	)		(15,284	)		(9,792	)
Net income		19,376			21,087			54,289			40,563

Net loss attributable to noncontrolling interest		85			55			152			249

Net income attributable to National HealthCare Corporation	$	19,461		$	21,142		$	54,441		$	40,812

Net income per common share
Basic	$	1.27		$	1.39		$	3.57		$	2.68
Diluted	$	1.27		$	1.39		$	3.55		$	2.68

Weighted average common shares outstanding
Basic		15,275,709			15,225,654			15,267,250			15,221,217
Diluted		15,373,617			15,242,086			15,350,308			15,230,692

Dividends declared per common share	$	0.52		$	0.50		$	1.54		$	1.48

Balance Sheet Data

(in thousands)

Sept. 30

Dec. 31

2019

2018

(unaudited)

Cash, cash equivalents and marketable equity securities

215,580

183,470

Restricted cash, cash equivalents and marketable debt securities

158,378

184,266

Current assets

351,190

322,009

Property and equipment, net

539,604

534,650

Total assets

1,307,231

1,080,948

Current liabilities

181,088

157,924

Long-term debt

30,000

55,000

NHC stockholders' equity

771,570

733,278

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Selected Operating Statistics

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2019		2018⁽¹⁾		2019		2018⁽¹⁾
	(unaudited)				(unaudited)
Skilled Nursing Per Diems:
Medicare	$	466.90	$	463.38	$	461.72	$	462.50
Managed Care		394.49		400.52		393.27		400.32
Medicaid		199.02		192.11		197.18		190.31
Private Pay and Other		244.77		240.48		245.35		238.82

Average Skilled Nursing Per Diem	$	270.24	$	269.51	$	270.69	$	270.49

Skilled Nursing Patient Days:
Medicare		103,838		114,462		325,832		359,246
Managed Care		63,693		62,811		188,986		182,109
Medicaid		333,362		325,326		977,882		945,089
Private Pay and Other		180,258		180,460		534,067		532,071

Total Skilled Nursing Patient Days		681,151		683,059		2,026,767		2,018,515

⁽¹⁾A skilled nursing facility in Madisonville, Kentucky was sold in the fourth quarter of 2018.The per diems and patient days for this facility have been excluded in the 2018 column for comparative purposes.

The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts; unaudited):

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2019			2018			2019			2018

Net income attributable to National Healthcare Corporation	$	19,461		$	21,142		$	54,441		$	40,812
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(9,312	)		(3,486	)		(16,096	)		(417	)
Gain on acquisitions of equity method investments		-			(2,050	)		(1,975	)		(2,050	)
Operating results for newly opened facilities not at full capacity⁽²⁾		152			917			884			1,972
Stock-based compensation expense		340			361			1,448			1,538
Legal costs and charges related to Caris' legal investigation		-			-			-			8,364
Tax Cuts and Jobs Act of 2017 adjustment		-			(1,434	)		-			(1,434	)
Provision of income taxes on non-GAAP adjustments		2,293			574			4,092			(2,150	)
Non-GAAP Net income	$	12,934		$	16,024		$	42,794		$	46,635

GAAP diluted earnings per share	$	1.27		$	1.39		$	3.55		$	2.68
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(0.45	)		(0.17	)		(0.78	)		(0.02	)
Gain on acquisitions of equity method investments		-			(0.13	)		(0.09	)		(0.13	)
Operating results for newly opened facilities not at full capacity ⁽²⁾		-			0.04			0.04			0.10
Stock-based compensation expense		0.02			0.02			0.07			0.07
Legal costs and charges related to Caris' legal investigation		-			-			-			0.46
Tax Cuts and Jobs Act of 2017 adjustment		-			(0.10	)		-			(0.10	)
Non-GAAP diluted earnings per share	$	0.84		$	1.05		$	2.79		$	3.06

⁽²⁾ The newly opened facilities for the 2019 period presented consist of facilities opened from 2017 through 2019 (one skilled nursing facility, two assisted living facilities, and one memory care facility). The newly opened facilities for the 2018 period presented consist of facilities opened from 2016 through 2018 (two skilled nursing facilities and three assisted living facilities).

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Dates Referenced Herein and Documents Incorporated by Reference

This ‘8-K’ Filing	Date	Other Filings

Filed on:	11/6/19	4
For Period end:	11/5/19	10-Q, 4
	9/30/19	10-Q
	9/30/18	10-Q
		List all Filings

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