NHC Reports Third Quarter Earnings

NHC Reports Third Quarter Earnings

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

(The "Company") (NYSE MKT: NHC) (NYSE MKT:NHC.PRA), a publicly traded long-term health care company, today announced net income available to common shareholders for the quarter ended September 30, 2012 of $15,066,000 compared to $15,044,000 for the quarter ended September 30, 2011. Net income was $1.09 per common share basic for both the quarters ended September 30, 2012 and 2011. Revenues for the three months ended September 30, 2012 totaled $189,368,000 compared to $197,064,000 for the three months ended September 30, 2011, a decrease of 3.9%.

The decline in revenues was due to decreases in Medicare per diem rates. However, these decreases were partially offset by an improved patient mix. The Company continues to implement cost saving measures in order to reduce total costs and expenses.

Net income available to common shareholders for the nine month period ended September 30, 2012 was $37,020,000 compared to $43,043,000, a decrease of 14.0%. Net income was $2.67 per common share basic for the nine month period ended September 30, 2012 compared to $3.13 per common share basic for the same period in 2011. For comparative purposes, operating expenses for the 2011 nine month period included favorable results within our accrued risk reserves of $10,500,000 (approximately $6,825,000 after income taxes or $0.50 per common share basic). Excluding this adjustment, the nine months ended September 30, 2012 would have reflected an increase of 2.2% in net income available to common shareholders compared to the same period in 2011.

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.

At September 30, 2012, NHC affiliates operate for themselves and third parties 75 long-term health care centers with 9,460 beds. NHC affiliates also operate 37 homecare programs, six independent living centers and 17 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 .