National HealthCare Corporation (NYSE MKT: NHC) (NYSE MKT: NHC.PRA), the nation’s oldest publicly traded long-term health care company, today announced net operating revenues for the year ended December 31, 2014 totaled $871,683,000 compared to $788,957,000 for the year ended December 31, 2013, an increase of 10.5%. For the year ended December 31, 2014, net income available to common shareholders was $44,699,000, or $3.24 per share basic, compared to $55,942,000, or $4.05 per share basic, for the 2013 year. The newly constructed or leased skilled nursing facilities placed in service during the 2014 year and a decrease in non-operating income negatively impacted the 2014 financial results compared to the 2013 year.
Net operating revenues for the three months ended December 31, 2014 totaled $226,374,000 compared to $206,796,000 for the same three months in 2013, an increase of 9.5%. Fourth quarter of 2014 net income available to common shareholders was $12,632,000, or $0.92 per basic share, compared to $14,421,000, or $1.04 per basic share, in the fourth quarter of 2013. Excluding the operating losses from the newly constructed or leased skilled nursing facilities and the decrease in non-operating income, income before income taxes for the quarter ended December 31, 2014 would have increased $982,000 compared to the prior year period, which is a 3.8% increase.
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.
About NHC
NHC affiliates operate for themselves and third parties 74 long-term health care centers with 9,462 beds. NHC affiliates also operate 36 homecare programs, five independent living centers and 18 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.
| Consolidated Statements of Income | ||||||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31 | December 31 | |||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
| Revenues: | (unaudited) | |||||||||||||||||||
| Net patient revenues | $ | 216,114 | $ | 196,040 | $ | 829,287 | $ | 735,837 | ||||||||||||
| Other revenues | 10,260 | 10,756 | 42,396 | 53,120 | ||||||||||||||||
| Net operating revenues | 226,374 | 206,796 | 871,683 | 788,957 | ||||||||||||||||
| Costs and Expenses: | ||||||||||||||||||||
| Salaries, wages and benefits | 135,972 | 123,400 | 510,249 | 453,560 | ||||||||||||||||
| Other operating | 50,340 | 46,098 | 217,143 | 194,989 | ||||||||||||||||
| Facility rent | 10,019 | 9,822 | 39,731 | 39,449 | ||||||||||||||||
| Depreciation and amortization | 9,240 | 7,574 | 34,384 | 28,547 | ||||||||||||||||
| Interest | 599 | 83 | 2,165 | 331 | ||||||||||||||||
| Total costs and expenses | 206,170 | 186,977 | 803,672 | 716,876 | ||||||||||||||||
| Income Before Non-Operating Income | 20,204 | 19,819 | 68,011 | 72,081 | ||||||||||||||||
| Non-Operating Income | 4,392 | 5,674 | 17,182 | 30,095 | ||||||||||||||||
| Income Before Income Taxes | 24,596 | 25,493 | 85,193 | 102,176 | ||||||||||||||||
| Income Tax Provision | (9,796 | ) | (8,904 | ) | (31,824 | ) | (37,563 | ) | ||||||||||||
| Net Income | 14,800 | 16,589 | 53,369 | 64,613 | ||||||||||||||||
| Dividends to Preferred Stockholders | (2,168 | ) | (2,168 | ) | (8,670 | ) | (8,671 | ) | ||||||||||||
| Net Income Available to Common Stockholders | $ | 12,632 | $ | 14,421 | $ | 44,699 | $ | 55,942 | ||||||||||||
| Earnings Per Common Share | ||||||||||||||||||||
| Basic | $ | 0.92 | $ | 1.04 | $ | 3.24 | $ | 4.05 | ||||||||||||
| Diluted | $ | 0.88 | $ | 0.99 | $ | 3.14 | $ | 3.87 | ||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||||||
| Basic | 13,748,448 | 13,820,554 | 13,816,095 | 13,829,626 | ||||||||||||||||
| Diluted | 16,821,917 | 16,690,915 | 14,222,133 | 16,698,803 | ||||||||||||||||
| Dividends declared per common share | ||||||||||||||||||||
| Balance Sheet Data | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
Dec. 31 | Dec. 31 | |||||||||||||||||||
| 2014 | 2013 | |||||||||||||||||||
| Cash and marketable securities | $ | 202,302 | $ | 186,714 | ||||||||||||||||
| Restricted cash and marketable securities | 168,924 | 155,932 | ||||||||||||||||||
| Current assets | 322,525 | 299,666 | ||||||||||||||||||
| Property and equipment, net | 514,744 | 456,798 | ||||||||||||||||||
| Total assets | 1,074,123 | 984,358 | ||||||||||||||||||
| Current liabilities | 183,032 | 167,760 | ||||||||||||||||||
| Long-term debt | 10,000 | 10,000 | ||||||||||||||||||
Stockholders’ equity | 734,148 | 688,112 | ||||||||||||||||||
| Selected Operating Statistics | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Per Diems: | ||||||||||||||||
| Medicare | $ | 440.62 | $ | 435.34 | $ | 435.77 | $ | 429.32 | ||||||||
| Managed Care | $ | 398.04 | $ | 406.30 | $ | 398.46 | $ | 406.18 | ||||||||
| Medicaid | $ | 170.80 | $ | 167.81 | $ | 169.14 | $ | 165.26 | ||||||||
| Private Pay and Other | $ | 212.33 | $ | 210.84 | $ | 211.71 | $ | 204.52 | ||||||||
| Patient Days: | ||||||||||||||||
| Medicare | 124,795 | 119,150 | 496,296 | 479,716 | ||||||||||||
| Managed Care | 50,568 | 40,413 | 191,126 | 148,600 | ||||||||||||
| Medicaid | 317,649 | 304,460 | 1,249,603 | 1,094,942 | ||||||||||||
| Private Pay and Other | 179,864 | 160,514 | 701,258 | 606,280 | ||||||||||||
| 672,876 | 624,537 | 2,638,283 | 2,329,538 | |||||||||||||
| Average Per Diem | $ | 249.02 | $ | 245.37 | $ | 247.23 | $ | 245.22 | ||||||||
Contacts:
Gerald Coggin, 615-890-2020
Sr.
VP of Corporate Relations
