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 quarter ended June 30, 2024 totaled $300,658,000 compared to $282,582,000 for the quarter ended June 30, 2023, an increase of 6.4%. Excluding the governmental stimulus income and supplemental Medicaid payments from various states, as well as the three skilled nursing facilities in Missouri in which we exited operations in February 2024, same-facility net operating revenues increased 8.0% during the second quarter of 2024 compared to the same period a year ago.

For the quarter ended June 30, 2024, the reported GAAP net income attributable to NHC was $26,844,000 compared to $16,281,000 for the same period in 2023. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended June 30, 2024 was $15,612,000 compared to $13,658,000 for the same period in 2023 ^(*). The GAAP diluted earnings per share were $1.73 for the quarter ended June 30, 2024 compared to $1.06 for the quarter ended June 30, 2023. Adjusted diluted earnings per share were $1.00 and $0.89 for the quarters ended June 30, 2024 and 2023, respectively ^(*).

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

About NHC

As of August 1, 2024, NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,349 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 778 units, three behavioral health hospitals, 34 homecare agencies, and 30 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						Six Months Ended
	June 30						June 30
		2024			2023			2024			2023
	(unaudited)						(unaudited)
Revenues and grant income:
Net patient revenues	$	279,918		$	269,605		$	565,741		$	527,612
Other revenues		11,295			12,977			22,648			24,533
Government stimulus income		9,445			-			9,445			-
Net operating revenues		300,658			282,582			597,834			552,145

Costs and expenses:
Salaries, wages and benefits		180,076			175,294			363,214			343,118
Other operating		78,154			73,234			155,583			144,723
Facility rent		10,570			9,901			20,918			19,993
Depreciation and amortization		9,338			10,083			19,924			20,131
Interest		-			93			46			191
Total costs and expenses		278,138			268,605			559,685			528,156

Income from operations		22,520			13,977			38,149			23,989

Non-operating income		4,956			3,696			10,641			8,019
Unrealized gains on marketable equity securities		9,124			4,650			23,523			6,036

Income before income taxes		36,600			22,323			72,313			38,044
Income tax provision		(9,494	)		(6,406	)		(18,956	)		(10,842	)
Net income		27,106			15,917			53,357			27,202

Net (income)/loss attributable to noncontrolling interest		(262	)		364			(300	)		802

Net income attributable to National HealthCare Corporation	$	26,844		$	16,281		$	53,057		$	28,004

Net income per common share
Basic	$	1.74		$	1.06		$	3.45		$	1.83
Diluted	$	1.73		$	1.06		$	3.42		$	1.83

Weighted average common shares outstanding
Basic		15,391,535			15,297,435			15,371,150			15,317,319
Diluted		15,555,612			15,322,344			15,530,624			15,339,240

Dividends declared per common share	$	0.61		$	0.59		$	1.20		$	1.16


Balance Sheet Data	June 30			December 31
(in thousands)		2024			2023
	(unaudited)

Cash, cash equivalents and marketable securities	$	270,019		$	223,620
Restricted cash, cash equivalents and marketable securities		170,264			167,971
Current assets		447,871			406,235
Property and equipment, net		487,193			493,329
Total assets		1,339,699			1,310,796
Current liabilities		216,935			214,476
Stockholders' equity		945,817			908,752

Selected Operating Statistics
	Three Months Ended							Six Months Ended
	June 30							June 30
		2024			2023				2024				2023
	(unaudited)							(unaudited)
Skilled Nursing Per Diems:
Medicare	$	577.71		$	548.74			$	579.81			$	552.38
Managed Care		447.96			445.00				459.48				444.97
Medicaid		264.49			253.22				264.88				245.12
Private Pay and Other		312.91			275.11				310.31				276.79

Average Skilled Nursing Per Diem	$	338.86		$	318.92		⁽¹⁾	$	341.21		⁽¹⁾	$	317.38		⁽¹⁾

Skilled Nursing Patient Days:
Medicare		74,602			79,981				155,758				164,013
Managed Care		62,957			59,567				128,388				118,013
Medicaid		279,504			284,681				561,325				561,187
Private Pay and Other		150,234			164,000				307,677				321,422

Total Skilled Nursing Patient Days		567,297			588,229		⁽¹⁾		1,153,148		⁽¹⁾		1,164,635		⁽¹⁾

⁽¹⁾ NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the first quarter of 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $259.56 and 20,267 patient days. For the three months ended June 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $259.43 and 31,945 patient days. For the six months ended June 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $250.72 and 62,889 patient days.

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
		2024			2023				2024				2023
	(unaudited)							(unaudited)

Net income attributable to National Healthcare Corporation	$	26,844		$	16,281			$	53,057			$	28,004
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(9,124	)		(4,650	)			(23,523	)			(6,036	)
Operating results for newly opened operations not at full capacity⁽²⁾		20			333				20				1,550
Stock-based compensation expense		1,176			772				1,969				1,411
Gain on sale of unconsolidated company		-			-				(1,024	)			-
Acquisition-related expenses ⁽³⁾		2,194			-				2,194				-
Employee retention credit		(9,445	)		-				(9,445	)			-
Income tax provision on non-GAAP adjustments		3,947			922				7,750				800
Non-GAAP Net income	$	15,612		$	13,658			$	30,998			$	25,729

GAAP diluted earnings per share	$	1.73		$	1.06			$	3.42			$	1.83
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(0.43	)		(0.23	)			(1.12	)			(0.29	)
Operating results for newly opened operations not at full capacity ⁽²⁾		-			0.02				-				0.07
Stock-based compensation expense		0.05			0.04				0.10				0.07
Gain on sale of unconsolidated company		-			-				(0.05	)			-
Acquisition-related expenses ⁽³⁾		0.10			-				0.10				-
Employee retention credit		(0.45	)		-				(0.45	)			-
Non-GAAP diluted earnings per share	$	1.00		$	0.89			$	2.00			$	1.68

⁽²⁾ The operating results for newly opened facilities or agencies not at full capacity include newly constructed healthcare facilities or agencies that are still considered in the start-up phase, which are two hospice agencies for the three and six months ended June 30, 3024. For the three and six months ended June 30, 2023, included are two behavioral health hospitals, two homecare agencies, and two hospice agencies.
⁽³⁾ Represents expenses incurred to acquire the White Oak operations that are not capitalizable.

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