NHC Reports First Quarter Earnings

MURFREESBORO, Tenn.--(BUSINESS WIRE)-- National HealthCare Corporation (NYSE Amex: NHC)(NYSE Amex: NHC.PRA), a publicly traded long-term health care company, today announced net income available to common shareholders for the quarter ended March 31, 2011 of $16,556,000 compared to $8,239,000 for the quarter ended March 31, 2010, an increase of 101%. Net income was $1.21 per common share basic for the quarter ended March 31, 2011 compared to $.60 per common share basic for the quarter ended March 31, 2010.

Revenues for the three months ended March 31, 2011 totaled $192,948,000 compared to $172,037,000 for the same three months of 2010.

Operating results for the first quarter of 2011 benefitted from improved Medicare per diems and patient mix. Further, other operating expense for the current period includes favorable results within our accrued risk reserves of $10,500,000 (approximately $6,825,000 after income taxes). Excluding this adjustment, the quarter ended March 31, 2011 would have reflected an increase of 18% in net income available to common shareholders compared to the same period in 2010.

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 76 long-term health care centers with 9,548 beds. NHC affiliates also operate 36 homecare programs, six independent living centers and 16 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.

Condensed Statements of Income
(in thousands, except share and per share amounts)
Three Months Ended
March 31
Revenues: 2011 2010
Net patient revenues $ 177,553 $ 157,961
Other revenues   15,395     14,076  
Net operating revenues   192,948     172,037  
Costs and Expenses:
Salaries, wages and benefits 108,762 96,076
Other operating 41,389 49,003
Rent 9,865 8,178
Depreciation and amortization 6,962 6,427
Interest   89     114  
Total costs and expenses   167,067     159,798  
Income Before Non-Operating Income 25,881 12,239
Non-Operating Income   4,561     4,575  
Income Before Income Taxes 30,442 16,814
Income Tax Provision   (11,718 )   (6,407 )
Net Income 18,724 10,407
Dividends to Preferred Stockholders   (2,168 )   (2,168 )
Net Income Available to Common Stockholders $ 16,556   $ 8,239  
Earnings Per Common Share:
Basic $ 1.21 $ 0.60
Diluted $ 1.15 $ 0.60
Weighted average common shares outstanding
Basic 13,680,135 13,721,570
Diluted 16,327,236 13,725,201
Balance Sheet Data
(in thousands) March 31 Dec. 31
2011 2010
Cash and marketable securities $ 253,508 $ 236,463
Current assets 332,419 322,126
Total assets 839,740 829,015
Current liabilities 208,301 223,806
Long-term obligations 28,896 28,861
Deferred lease credits 909 1,212
Deferred revenue 17,116 13,990
Stockholders' equity 584,518 561,146
Selected Operating Statistics
Three Months Ended
March 31
2011 2010
Per Diems:
Medicare $ 449.36 $ 378.28
Medicaid $ 158.75 $ 155.41
Private Pay and Other $ 246.94 $ 233.05
Patient Days:
Medicare 119,778 110,314
Medicaid 280,701 270,810
Private Pay and Other   173,360   165,066
573,839 546,190
Average Per Diem $ 246.05 $ 223.88


National HealthCare Corporation
Gerald Coggin, Sr. VP of Corporate Relations, 615-890-2020

KEYWORDS:   United States  North America  South Dakota

INDUSTRY KEYWORDS:   Health  Hospitals  Other Health  Nursing  General Health  Managed Care