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 September 30, 2024 totaled $340,198,000 compared to $288,485,000 for the quarter ended September 30, 2023, an increase of 17.9%. The increase in net operating revenues for the third quarter of 2024 compared to the same period last year was primarily related to the August 1, 2024 acquisition of White Oak Manor ("White Oak"). The White Oak operations consist of 21 healthcare operations, which includes 15 skilled nursing facilities, two assisted living facilities, and four independent living facilities.

For the quarter ended September 30, 2024, the reported GAAP net income attributable to NHC was $42,789,000 compared to $10,388,000 for the same period in 2023. Excluding the unrealized gains or losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended September 30, 2024 was $19,910,000 compared to $13,250,000 for the same period in 2023, an increase of 50.3% ^(*). The GAAP diluted earnings per share were $2.73 for the quarter ended September 30, 2024 compared to $0.68 for the quarter ended September 30, 2023. Adjusted diluted earnings per share were $1.27 and $0.86 for the quarters ended September 30, 2024 and 2023, 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 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 777 units, three behavioral health hospitals, 34 homecare agencies, and 32 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						Nine Months Ended
	September 30						September 30
		2024			2023			2024			2023
	(unaudited)						(unaudited)
Revenues and grant income:
Net patient revenues	$	328,674		$	277,005		$	894,415		$	804,617
Other revenues		11,524			11,480			34,172			36,013
Government stimulus income		-			-			9,445			-
Net operating revenues and grant income		340,198			288,485			938,032			840,630

Costs and expenses:
Salaries, wages and benefits		213,395			182,664			576,609			525,782
Other operating		82,509			72,490			238,092			217,213
Facility rent		10,886			10,094			31,804			30,087
Depreciation and amortization		10,619			10,135			30,543			30,266
Interest		1,742			77			1,788			268
Total costs and expenses		319,151			275,460			878,836			803,616

Income from operations		21,047			13,025			59,196			37,014

Non-operating income		4,224			4,097			14,865			12,116
Unrealized gains/(losses) on marketable equity securities		32,767			(3,093	)		56,290			2,943

Income before income taxes		58,038			14,029			130,351			52,073
Income tax provision		(15,338	)		(3,908	)		(34,294	)		(14,750	)
Net income		42,700			10,121			96,057			37,323

Net (income)/loss attributable to noncontrolling interest		89			267			(211	)		1,069

Net income attributable to National HealthCare Corporation	$	42,789		$	10,388		$	95,846		$	38,392

Net income per common share
Basic	$	2.78		$	0.68		$	6.23		$	2.51
Diluted	$	2.73		$	0.68		$	6.15		$	2.50

Weighted average common shares outstanding
Basic		15,411,680			15,299,913			15,384,758			15,311,453
Diluted		15,667,321			15,324,511			15,576,294			15,334,269

Dividends declared per common share	$	0.61		$	0.59		$	1.81		$	1.75


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

Cash, cash equivalents and marketable securities	$	249,561		$	223,620
Restricted cash, cash equivalents and marketable securities		177,179			167,971
Current assets		445,726			406,235
Property and equipment, net		686,425			493,329
Total assets		1,562,707			1,310,796
Current liabilities, excluding long-term debt due within one year		240,446			214,476
Current and long-term debt		147,000			-
NHC stockholders' equity		983,468			908,752

Selected Operating Statistics
	Three Months Ended							Nine Months Ended
	September 30							September 30
		2024			2023				2024				2023
	(unaudited)							(unaudited)
Skilled Nursing Per Diems:
Medicare	$	578.12		$	551.82			$	579.24			$	552.21
Managed Care		459.94			489.18				459.64				460.20
Medicaid		290.00			256.46				274.44				248.99
Private Pay and Other		323.36			283.49				315.09				279.12

Average Skilled Nursing Per Diem	$	350.85		$	325.34		⁽¹⁾	$	344.76		⁽¹⁾	$	320.09		⁽¹⁾

Skilled Nursing Patient Days:
Medicare		79,957			75,215				235,715				239,228
Managed Care		70,635			61,979				199,023				179,992
Medicaid		344,940			290,887				906,265				852,074
Private Pay and Other		177,846			170,857				485,523				492,279

Total Skilled Nursing Patient Days		673,378			598,938		⁽¹⁾		1,826,526		⁽¹⁾		1,763,573		⁽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 September 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $244.20 and 32,141 patient days. For the nine months ended September 30, 2023, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $248.51 and 95,030 patient days.

The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
	Three Months Ended							Nine Months Ended
	September 30							September 30
		2024			2023				2024				2023
	(unaudited)							(unaudited)

Net income attributable to National Healthcare Corporation	$	42,789		$	10,388			$	95,846			$	38,392
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities		(32,767	)		3,093				(56,290	)			(2,943	)
Operating results for newly opened operations not at full capacity⁽²⁾		120			66				140				1,616
Stock-based compensation expense		1,093			708				3,062				2,119
Gain on sale of unconsolidated company		-			-				(1,024	)			-
Acquisition-related expenses ⁽³⁾		637			-				2,831				-
Employee retention credit		-			-				(9,445	)			-
Income tax provision on non-GAAP adjustments		8,038			(1,005	)			15,789				(206	)
Non-GAAP Net income	$	19,910		$	13,250			$	50,909			$	38,978

GAAP diluted earnings per share	$	2.73		$	0.68			$	6.15			$	2.51
Non-GAAP adjustments
Unrealized (gains)/losses on marketable equity securities		(1.55	)		0.15				(2.67	)			(0.14	)
Operating results for newly opened operations not at full capacity ⁽²⁾		0.01			-				0.01				0.07
Stock-based compensation expense		0.05			0.03				0.15				0.10
Gain on sale of unconsolidated company		-			-				(0.05	)			-
Acquisition-related expenses ⁽³⁾		0.03			-				0.13				-
Employee retention credit		-			-				(0.45	)			-
Non-GAAP diluted earnings per share	$	1.27		$	0.86			$	3.27			$	2.54

⁽²⁾ The operating results for newly opened facilities or agencies not at full capacity include healthcare operations that are still considered in the start-up phase, which are two hospice agencies for the three and nine months ended September 30, 3024. For the three and nine months ended September 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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