National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues and grant income for the year ended December 31, 2022 totaled $1,085,738,000 compared to $1,074,302,000 for the year ended December 31, 2021, an increase of 1.1%. The net operating revenues increase in 2022 was despite a reduction in government stimulus income of $51.9 million compared to 2021.

For the year ended December 31, 2022, the reported GAAP net income attributable to NHC was $22,445,000 compared to $138,590,000 for the 2021 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, 2022 was $37,323,000 compared to $62,645,000 for the 2021 year ^(*). The decrease in non-GAAP earnings for 2022 compared to 2021 was primarily due to the $51.9 million decrease of government stimulus income recorded. GAAP diluted earnings per share were $1.45 compared to $8.99 for the years ended December 31, 2022 and 2021, respectively. Adjusted diluted earnings per share were $2.42 compared to $4.06 for the years ended December 31, 2022 and 2021, respectively ^(*).

For the quarter ended December 31, 2022, the reported GAAP net income attributable to NHC was $6,353,000 compared to $15,788,000 for the same period in 2021. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2022 was $11,046,000 compared to $15,801,000 for the same period in 2021 ^(*). The decrease in non-GAAP earnings for the quarter ended December 31, 2022 compared to the fourth quarter of 2021 was primarily due to the $14.5 million decrease of government stimulus income recorded. The GAAP diluted earnings per share were $0.41 compared to $1.02 for the quarters ended December 31, 2022 and 2021, respectively. Adjusted diluted earnings per share were $0.72 and $1.02 for the quarters ended December 31, 2022 and 2021, 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 68 skilled nursing facilities with 8,726 beds. NHC affiliates also operate 23 assisted living communities with 1,181 units, five independent living communities with 475 units, three behavioral health hospitals, 35 homecare agencies, and 29 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						Year Ended
	December 31						December 31
		2022			2021			2022			2021
Revenues and grant income:
Net patient revenues	$	252,424		$	256,894		$	1,029,085		$	965,542
Other revenues		11,612			11,484			45,196			45,400
Government stimulus income		517			15,056			11,457			63,360
Net operating revenues and grant income		264,553			283,434			1,085,738			1,074,302

Costs and expenses:
Salaries, wages and benefits		167,341			182,800			686,169			666,063
Other operating		67,365			62,543			289,372			266,754
Facility rent		10,207			10,381			40,977			40,818
Depreciation and amortization		10,478			10,151			40,489			40,672
Interest		112			188			563			845
Impairment/(recovery) of assets		-			8,225			(3,728	)		8,225
Total costs and expenses		255,503			274,288			1,053,842			1,023,377

Income from operations		9,050			9,146			31,896			50,925

Non-operating income		2,690			2,529			11,141			17,774
Gain on acquisition of equity method investment		-			-			-			95,202
Unrealized gains/(losses) on marketable equity securities		(4,327	)		9,364			(15,806	)		(13,863	)

Income before income taxes		7,413			21,039			27,231			150,038
Income tax provision		(1,839	)		(5,044	)		(7,254	)		(10,951	)
Net income		5,574			15,995			19,977			139,087

Net (income)/loss attributable to noncontrolling interest		779			(207	)		2,468			(497	)

Net income attributable to National HealthCare Corporation	$	6,353		$	15,788		$	22,445		$	138,590

Net income per common share
Basic	$	0.41		$	1.03		$	1.46		$	9.03
Diluted	$	0.41		$	1.02		$	1.45		$	8.99

Weighted average common shares outstanding
Basic		15,326,680			15,364,302			15,410,222			15,347,129
Diluted		15,358,488			15,440,633			15,447,211			15,416,716

Dividends declared per common share	$	0.57		$	0.55		$	2.26		$	2.11


Balance Sheet Data	Dec. 31			Dec. 31
(in thousands)	2022			2021


Cash, cash equivalents and marketable securities	$	182,589		$	256,025
Restricted cash, cash equivalents and marketable securities		158,067			175,884
Current assets		353,932			426,638
Property and equipment, net		506,532			520,996
Total assets		1,275,450			1,403,396
Current liabilities		197,887			263,201
NHC stockholders' equity		874,276			903,004

Selected Operating Statistics
	Three Months Ended						Year Ended
	December 31						December 31
		2022			2021			2022			2021
Skilled Nursing Per Diems:
Medicare	$	544.11		$	530.32		$	541.23		$	529.03
Managed Care		482.99			439.61			439.07			414.11
Medicaid		236.86			224.61			232.22			225.40
Private Pay and Other		265.55			259.96			267.50			255.60

Average Skilled Nursing Per Diem	$	310.82		$	297.62		$	304.04		$	297.19

Skilled Nursing Patient Days:
Medicare		82,965			91,056			341,926			362,080
Managed Care		51,003			56,133			214,826			239,726
Medicaid		284,208			317,610			1,204,139			1,213,565
Private Pay and Other		157,174			158,577			646,651			597,802

Total Skilled Nursing Patient Days		575,350			623,376			2,407,542			2,413,173


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
		2022			2021			2022			2021

Net income attributable to National Healthcare Corporation	$	6,353		$	15,788		$	22,445		$	138,590
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities		4,327			(9,364	)		15,806			13,863
Operating results for newly opened operations not at full capacity⁽¹⁾		1,383			442			5,416			922
Gain on acquisition of equity method investment		-			-			-			(95,202	)
Impairment/(recovery) of assets		-			8,225			(3,728	)		8,225
Stock-based compensation expense		632			715			2,612			2,620
Income tax benefit on non-GAAP adjustments		(1,649	)		(5	)		(5,228	)		(6,373	)
Non-GAAP Net income	$	11,046		$	15,801		$	37,323		$	62,645

GAAP diluted earnings per share	$	0.41		$	1.02		$	1.45		$	8.99
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities		0.21			(0.45	)		0.76			0.67
Operating results for newly opened operations not at full capacity ⁽¹⁾		0.07			0.02			0.26			0.04
Gain on acquisition of equity method investment		-			-			-			(6.16	)
Impairment/(recovery) of assets		-			0.40			(0.18	)		0.39
Stock-based compensation expense		0.03			0.03			0.13			0.13
Non-GAAP diluted earnings per share	$	0.72		$	1.02		$	2.42		$	4.06

⁽¹⁾ The newly opened operations not at full capacity for the 2022 period presented consisted of operations opened from 2020 through 2022. This consisted of two behavioral health hospitals, one homecare agency, and one hospice agency. The newly opened operations for the 2021 period presented consisted of operations opened from 2019 through 2021. The 2021 period consisted of one memory care facility and two behavioral health hospitals.

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NHC Reports 2022 Year End Earnings