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 quarter ended June 30, 2021 totaled $263,158,000 compared to $261,642,000 for the quarter ended June 30, 2020. The census in our skilled nursing facilities for the second quarter of 2021 increased approximately 4% from the beginning of April 2021 through the end of June 2021. The census in our skilled nursing facilities increased approximately 7.5% from the beginning of January 2021 through the end of June 2021.

For the quarter ended June 30, 2021, the reported GAAP net income attributable to NHC was $104,883,000 compared to $28,324,000 for the same period in 2020. The large increase in our reported GAAP net income for the second quarter of 2021 is primarily due to the gain recorded from the acquisition of Caris HealthCare, L.P., a hospice provider. Excluding the gain on the Caris HealthCare, L.P. acquisition, as well as 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, 2021 was $15,077,000 compared to $14,177,000 for the same period in 2020 ^(*). GAAP diluted earnings per share was $6.80 for the quarter ended June 30, 2021 compared to $1.84 for the same period in 2020. Adjusted diluted earnings per share were $0.98 and $0.92 for the quarters ended June 30, 2021 and 2020, 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 75 skilled nursing facilities with 9,473 beds. NHC affiliates also operate 24 assisted living communities, five independent living communities, one behavioral health hospital, 35 homecare agencies, and 28 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, 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 Operations

(in thousands, except share and per share amounts)

Three Months Ended

Six Months Ended

June 30

2021

2020

2021

2020

(unaudited)

Revenues and grant income:

Net patient revenues

$ 236,976

$ 225,671

$ 453,831

$ 469,766

Other revenues

11,056

11,323

22,425

23,352

Government stimulus income

15,126

24,648

37,875

24,648

Net operating revenues and grant income

263,158

261,642

514,131

517,766

Costs and expenses:

Salaries, wages and benefits

156,804

156,914

301,934

304,383

Other operating

72,043

70,861

142,196

142,529

Facility rent

10,170

10,320

20,233

20,652

Depreciation and amortization

10,131

10,545

20,292

20,983

Interest

215

453

459

865

Total costs and expenses

249,363

249,093

485,114

489,412

Income from operations

13,795

12,549

29,017

28,354

Non-operating income

5,586

5,954

11,846

12,392

Gains on acquisitions of equity method investments

95,202

1,708

Unrealized gains/(losses) on marketable equity securities

(6,489)

20,053

570

(40,339)

Income before income taxes

108,094

38,556

136,635

2,115

Income tax provision

(2,764)

(10,034)

(9,997)

(409)

Net income

105,330

28,522

126,638

1,706

Net income attributable to noncontrolling interest

(447)

(198)

(488)

(234)

Net income attributable to National HealthCare Corporation

$ 104,883

$ 28,324

$ 126,150

$ 1,472

Net income per common share

Basic

$ 6.83

$ 1.85

$ 8.22

$ 0.10

Diluted

$ 6.80

$ 1.84

$ 8.19

$ 0.10

Weighted average common shares outstanding

Basic

15,349,162

15,307,105

15,338,400

15,300,941

Diluted

15,419,012

15,372,430

15,404,634

15,367,464

Dividends declared per common share

$ 0.52

$ 0.52

$ 1.04

$ 1.04

Balance Sheet Data

June 30

Dec. 31

(in thousands)

2021

2020

(unaudited)

Cash, cash equivalents and marketable securities

$ 297,009

$ 323,445

Restricted cash, cash equivalents and marketable securities

173,764

158,162

Current assets

465,907

456,755

Property and equipment, net

519,617

520,318

Total assets

1,457,369

1,362,132

Current liabilities

273,012

281,228

NHC stockholders' equity

906,841

795,177

Selected Operating Statistics
	Three Months Ended		Six Months Ended
	June 30		June 30
	2021	2020	2021	2020
	(unaudited)		(unaudited)
Skilled Nursing Per Diems:
Medicare	$ 523.70	$ 513.22	$ 530.80	$ 509.35
Managed Care	418.21	401.39	416.85	402.15
Medicaid	226.75	209.60	222.57	205.28
Private Pay and Other	256.58	247.48	252.28	249.60

Average Skilled Nursing Per Diem	$ 299.55	$ 277.85	$ 298.94	$ 278.48

Skilled Nursing Patient Days:
Medicare	92,163	90,896	183,490	196,439
Managed Care	64,196	50,669	126,107	112,225
Medicaid	300,875	333,196	579,976	677,722
Private Pay and Other	148,247	161,877	281,214	333,184

Total Skilled Nursing Patient Days	605,481	636,638	1,170,787	1,319,570


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
	2021	2020	2021	2020
	(unaudited)		(unaudited)

Net income attributable to National Healthcare Corporation	$ 104,883	$ 28,324	$ 126,150	$ 1,472
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities	6,489	(20,053)	(570)	40,339
Operating results for newly opened facilities not at full capacity⁽¹⁾	120	112	365	314
Gains on acquisitions of equity method investments	(95,202)	-	(95,202)	(1,708)
Stock-based compensation expense	683	823	1,179	1,289
Income tax (benefit)/provision on non-GAAP adjustments	(1,896)	4,971	(253)	(10,461)
Non-GAAP Net income	$ 15,077	$ 14,177	$ 31,669	$ 31,245

GAAP diluted earnings per share	$ 6.80	$ 1.84	$ 8.19	$ 0.10
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities	0.31	(0.97)	(0.03)	1.94
Operating results for newly opened facilities not at full capacity ⁽¹⁾	0.01	0.01	0.02	0.02
Gains on acquisitions of equity method investments	(6.17)	-	(6.18)	(0.08)
Stock-based compensation expense	0.03	0.04	0.06	0.05
Non-GAAP diluted earnings per share	$ 0.98	$ 0.92	$ 2.06	$ 2.03

⁽¹⁾ The newly opened facilities not at full capacity for the 2021 period presented consist of operations opened from 2019 through 2021. The newly opened facilities for the 2020 period presented consist of operations opened from 2018 through 2020. For both of the periods presented, one memory care facility was opened during these years.

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