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 March 31, 2024 totaled $297,176,000 compared to $269,563,000 for the quarter ended March 31, 2023, an increase of 10.2%.

For the quarter ended March 31, 2024, the reported GAAP net income attributable to NHC was $26,213,000 compared to $11,723,000 for the same period in 2023. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended March 31, 2024 was $15,048,000 compared to $12,071,000 for the same period in 2023, an increase of 24.7% ^(*). The GAAP diluted earnings per share were $1.69 for the quarter ended March 31, 2024 compared to $0.76 for the quarter ended March 31, 2023. Adjusted diluted earnings per share were $0.97 and $0.79 for the quarters ended March 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 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.

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