MURFREESBORO, Tenn.--(BUSINESS WIRE)--National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues and CARES Act income for the year ended December 31, 2020 totaled $1,028,217,000 compared to $996,383,000 for the year ended December 31, 2019, an increase of 3.2%. The CARES Act funding is intended to partially offset COVID-19 expenses and lost revenues. Excluding the CARES Act income and other government COVID revenues recorded during 2020, net operating revenues would have decreased 4.2% compared to 2019.

For the year ended December 31, 2020, the reported GAAP net income attributable to NHC was $41,871,000 compared to $68,211,000 for the 2019 year. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2020 was $58,543,000 compared to $59,616,000 for the 2019 year ^(*). GAAP diluted earnings per share were $2.72 and $4.44 for the years ended December 31, 2020 and 2019, respectively. Adjusted diluted earnings per share were $3.81 and $3.88 for the years ended December 31, 2020 and 2019, respectively ^(*).

Net operating revenues and CARES Act income for the quarter ended December 31, 2020 totaled $259,825,000 compared to $253,880,000 for the quarter ended December 31, 2019, an increase of 2.3%. Excluding the CARES Act income and other government COVID revenues recorded during the fourth quarter of 2020, net operating revenues would have decreased 8.1% compared to the fourth quarter of 2019. For the quarter ended December 31, 2020, reported GAAP net income attributable to NHC was $27,550,000 compared to $13,770,000 for the fourth quarter of 2019. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the three months ended December 31, 2020 was $13,822,000 compared to $16,822,000 for the fourth quarter of 2019.

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

NHC affiliates operate for themselves and third parties 75 skilled nursing facilities with 9,463 beds. NHC affiliates also operate 24 assisted living communities, five independent living communities, one behavioral health hospital and 35 homecare programs. NHC’s other services include Alzheimer’s and memory care units, hospice services, 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, 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.

Consolidated Statements of Income
(in thousands, except share and per share amounts)
	Three Months Ended						Year Ended
	December 31						December 31
	2020			2019			2020			2019
Revenues and grant income:
Net patient revenues	$	234,646		$	241,407		$	931,795		$	947,872
Other revenues		14,454			12,473			48,917			48,511
Government stimulus income		10,725			-			47,505			-
Net operating revenues and grant income		259,825			253,880			1,028,217			996,383

Costs and expenses:
Salaries, wages and benefits		153,359			151,390			609,306			592,831
Other operating		73,429			64,682			286,845			268,442
Facility rent		9,522			9,916			40,494			40,518
Depreciation and amortization		10,487			10,904			42,018			42,419
Interest		249			491			1,399			3,135
Total costs and expenses		247,046			237,383			980,062			947,345

Income from operations		12,779			16,497			48,155			49,038

Non-operating income		7,656			5,811			28,234			26,747
Unrealized gains/(losses) on marketable equity securities		16,614			(3,866	)		(23,966	)		12,230

Income before income taxes		37,049			18,442			52,423			88,015
Income tax provision		(9,633	)		(4,755	)		(10,433	)		(20,039	)
Net income		27,416			13,687			41,990			67,976

Net (income)/loss attributable to noncontrolling interest		134			83			(119	)		235

Net income attributable to National HealthCare Corporation	$	27,550		$	13,770		$	41,871		$	68,211

Net income per common share	$	1.80		$	0.90		$	2.74		$	4.47
Basic	$	1.79		$	0.89		$	2.72		$	4.44
Diluted

Weighted average common shares outstanding
Basic		15,311,947			15,278,771			15,306,174			15,270,154
Diluted		15,371,718			15,389,104			15,369,523			15,360,046

Dividends declared per common share	$	0.52		$	0.52		$	2.08		$	2.06

Balance Sheet Data
(in thousands)	Dec. 31			Dec. 31
	2020			2019

Cash, cash equivalents and marketable securities	$	323,445		$	202,787
Restricted cash, cash equivalents and marketable securities		158,162			158,082
Current assets		456,755			341,053
Property and equipment, net		520,318			535,430
Total assets		1,362,132			1,286,648
Current liabilities		281,228			194,763
NHC stockholders' equity		795,177			778,593

Selected Operating Statistics
	Three Months Ended						Year Ended
	December 31						December 31
	2020			2019			2020			2019
Skilled Nursing Per Diems:
Medicare	$	533.95		$	498.10		$	518.46		$	470.74
Managed Care		418.14			403.30			408.92			396.17
Medicaid		258.47			200.71			220.50			197.95
Private Pay and Other		250.54			243.68			249.61			242.99

Average Skilled Nursing Per Diem	$	317.94		$	275.03		$	290.10		$	271.07

Skilled Nursing Patient Days:
Medicare		96,943			102,798			387,540			428,367
Managed Care		58,085			62,956			223,629			251,691
Medicaid		290,979			343,348			1,289,435			1,332,025
Private Pay and Other		140,288			174,979			625,313			698,554

Total Skilled Nursing Patient Days		586,295			684,081			2,525,917			2,710,637


The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):

	Three Months Ended						Year Ended
	December 31						December 31
	2020			2019			2020			2019
Net income attributable to National Healthcare Corporation	$	27,550		$	13,770		$	41,871		$	68,211
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities		(16,614	)		3,866			23,966			(12,230	)
Gain on sale of real estate/healthcare facilities		(2,784	)		-			(2,784	)		-
Gain on acquisitions of equity method investments		-			-			(1,707	)		(1,975	)
Operating results for newly opened facilities not at full capacity⁽¹⁾		200			(172	)		602			712
Stock-based compensation expense		646			430			2,453			1,878
Provision of income taxes on non-GAAP adjustments		4,824			(1,072	)		(5,858	)		3,020
Non-GAAP Net income	$	13,822		$	16,822		$	58,543		$	59,616

GAAP diluted earnings per share	$	1.79		$	0.89		$	2.72		$	4.44
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(0.80	)		0.19			1.15			(0.59	)
Gain on sale of real estate/healthcare facilities		(0.13	)		-			(0.13	)		-
Gain on acquisitions of equity method investments		-			-			(0.08	)		(0.09	)
Operating results for newly opened facilities not at full capacity ⁽¹⁾		0.01			(0.01	)		0.03			0.03
Stock-based compensation expense		0.03			0.02			0.12			0.09
Non-GAAP diluted earnings per share	$	0.90		$	1.09		$	3.81		$	3.88

(1)

The newly opened facilities not at full capacity for the 2020 period presented consist of facilities opened from 2018 through 2020 (one memory care facility). The newly opened facilities for the 2019 period presented consist of facilities opened from 2017 through 2019 (one skilled nursing facility, two assisted living facilities, and one memory care facility).

NHC Reports 2020 Year End Earnings