NHC Reports Second Quarter 2025 Earnings

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16 hours ago

MURFREESBORO, Tenn., August 08, 2025--(BUSINESS WIRE)--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 June 30, 2025 totaled $374,910,000 compared to $300,658,000 for the quarter ended June 30, 2024, an increase of 24.7%. The increase in net operating revenues for the second quarter of 2025 compared to the second quarter of 2024 was due to an 9.6% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Management, Inc. ("White Oak").
For the quarter ended June 30, 2025, the reported GAAP net income attributable to NHC was $23,722,000 compared to $26,844,000 for the same period in 2024. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended June 30, 2025 was $25,710,000 compared to $15,612,000 for the same period in 2024, an increase of 64.7% (*). The GAAP diluted earnings per share were $1.52 and $1.73 for the quarters ending June 30, 2025 and 2024, respectively. Adjusted diluted earnings per share were $1.65 and $1.00 for the quarters ending June 30, 2025 and 2024, respectively (*).
(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.
About NHCAs of August 1, 2025, NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,329 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 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 PresentationThe 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 StatementsStatements 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
Six Months Ended
June 30
June 30
2025
2024
2025
2024
(unaudited)
(unaudited)
Revenues:
Net patient revenues
$
363,349
$
279,918
$
724,956
$
565,741
Other revenues
11,561
11,295
23,651
22,648
Government stimulus income
-
9,445
-
9,445
Net operating revenues and grant income
374,910
300,658
748,607
597,834
Costs and expenses:
Salaries, wages and benefits
226,534
180,076
454,664
363,214
Other operating
91,943
78,154
184,400
155,583
Facility rent
11,328
10,570
22,693
20,918
Depreciation and amortization
11,015
9,338
21,993
19,924
Total costs and expenses
340,820
278,138
683,750
559,639
Income from operations
34,090
22,520
64,857
38,195
Non-operating income
5,132
4,956
9,211
10,641
Interest expense
(1,993
)
-
(4,099
)
(46
)
Unrealized gains/(losses) on marketable equity securities
(5,061
)
9,124
5,921
23,523
Income before income taxes
32,168
36,600
75,890
72,313
Income tax provision
(8,055
)
(9,494
)
(19,487
)
(18,956
)
Net income
24,113
27,106
56,403
53,357
Net income attributable to noncontrolling interest
(391
)
(262
)
(476
)
(300
)
Net income attributable to National HealthCare Corporation
$
23,722
$
26,844
$
55,927
$
53,057
Net income per common share
Basic
$
1.53
$
1.74
$
3.62
$
3.45
Diluted
$
1.52
$
1.73
$
3.59
$
3.42
Weighted average common shares outstanding
Basic
15,462,135
15,391,535
15,450,286
15,371,150
Diluted
15,599,638
15,555,612
15,587,783
15,530,624
Dividends declared per common share
$
0.64
$
0.61
$
1.25
$
1.20
Balance Sheet Data
June 30
December 31
(in thousands)
2025
2024
(unaudited)
Cash, cash equivalents and marketable securities
$
257,628
$
216,185
Restricted cash, cash equivalents and marketable securities
169,340
163,795
Current assets
463,227
424,408
Property and equipment, net
676,619
684,289
Total assets
1,562,220
1,524,429
Current liabilities, excluding current long-term debt
261,245
227,297
Current and long-term debt
110,000
137,000
NHC stockholders' equity
1,021,905
980,161
Selected Operating Statistics
Three Months Ended
Six Months Ended
June 30
June 30
2025
2024
2025
2024
(unaudited)
(unaudited)
Skilled Nursing Per Diems:
Medicare
$
614.85
$
577.71
$
613.47
$
579.81
Managed Care
486.17
447.96
489.30
459.48
Medicaid
286.43
264.49
284.07
264.88
Private Pay and Other
341.34
312.91
339.24
310.31
Average Skilled Nursing Per Diem
$
361.42
$
338.86
$
360.78
(1)
$
341.21
(1)
Skilled Nursing Patient Days:
Medicare
83,615
74,602
169,869
155,758
Managed Care
83,015
62,957
166,661
128,388
Medicaid
368,687
279,504
732,329
561,325
Private Pay and Other
194,202
150,234
378,796
307,677
Total Skilled Nursing Patient Days
729,519
567,297
1,447,655
(1)
1,153,148
(1)
(1) NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the six months ended June 30, 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $275.64 and 20,267 patient days.
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
Three Months Ended
Six Months Ended
June 30
June 30
2025
2024
2025
2024
(unaudited)
(unaudited)
Net income attributable to National Healthcare Corporation
$
23,722
$
26,844
$
55,927
$
53,057
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
5,061
(9,124
)
(5,921
)
(23,523
)
Operating losses for newly-opened operations not at full capacity
-
20
-
20
Gain on sale of property and equipment
(3,606
)
-
(3,606
)
-
Gain on sale of unconsolidated company
-
-
-
(1,024
)
Stock-based compensation expense
1,232
1,176
2,260
1,969
Acquisition-related expenses
-
2,194
-
2,194
Employee retention credit
-
(9,445
)
-
(9,445
)
Income tax provision/(benefit) on non-GAAP adjustments
(699
)
3,947
1,889
7,750
Non-GAAP Net income
$
25,710
$
15,612
$
50,549
$
30,998
GAAP diluted earnings per share
$
1.52
$
1.73
$
3.59
$
3.42
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities
0.32
(0.59
)
(0.38
)
(1.51
)
Gain on sale of property and equipment
(0.23
)
-
(0.23
)
-
Gain on sale of unconsolidated company
-
-
-
(0.07
)
Stock-based compensation expense
0.08
0.08
0.14
0.13
Acquisition-related expenses
-
0.14
-
0.14
Employee retention credit
-
(0.61
)
-
(0.61
)
Income tax provision/(benefit) on non-GAAP adjustments
(0.04
)
0.25
0.12
0.50
Non-GAAP diluted earnings per share
$
1.65
$
1.00
$
3.24
$
2.00
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