EX-99 2 ex991nhc2009thirdquarterearn.htm PRESS RELEASE Converted by EDGARwiz

Exhibit 99.1


[ex991nhc2009thirdquartere001.jpg]


For release: November 5, 2009

Contact: Gerald Coggin, Sr. VP of Corporate Relations

Phone: (615) 890-2020


NHC Reports Third Quarter Earnings


MURFREESBORO, Tenn. -- National HealthCare Corporation (NYSE Amex: NHC;  NYSE Amex: NHC.PR.A), a publicly traded long-term health care company, today announced net income before taxes increased 11.9% to $18,071,000 for the quarter ended September 30, 2009 compared to $16,154,000 for the same period last year.  Net income available to common stockholders was $10,175,000 for the quarter ended September 30, 2009 compared to $11,604,000 for the quarter ended September 30, 2008, a decrease of 12.3%.  The decrease in net income available to common stockholders is due to a change in the income tax provision between the periods.  The effective tax rate increased to 32% in the 2009 third quarter from an effective tax rate of 15% in the 2008 third quarter.

Revenues for the three months ended September 30, 2009 totaled $171,630,000 compared to $163,271,000 for the same three months of 2008, an increase of 5.1%.  Net income was $.74 per basic common share for the quarter ended September 30, 2009 compared to $.91 per basic common share for the quarter ended September 30, 2008.

Recent accomplishments include the renewal of our $75,000,000 bank line of credit agreement and accreditation of our NHC Geriatric Clinical Residency Program by the American Physical Therapy Association.

NHC operates, through various subsidiaries, for itself and third parties, 76 long-term health care centers with 9,772 beds. NHC also operates, through subsidiaries, 33 homecare programs, seven independent living centers and 23 assisted living centers. NHC's other services include Alzheimer's units, long-term care pharmacies, hospice, a rehabilitation services company, and providing management and accounting services to third parties. Other information about the company can be found on our web site at www.NHCcare.com.

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, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; 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.





Page 2

NHC Reports Third Quarter Earnings

 

Condensed Statements of Income

(in thousands, except share and per share amounts)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30

 

September 30

Revenues:

2009

 

2008

 

2009

 

2008

 

Net patient revenues

 $   154,546 

 

 $   146,521 

 

$   463,462 

 

$   433,649 

 

Other revenues

       17,084 

 

       16,750 

 

       48,873 

 

       50,325 

 

 

Net revenues

      171,630 

 

      163,271 

 

     512,335 

 

     483,974 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

Salaries, wages and benefits

       91,834 

 

       88,036 

 

274,435 

 

     261,889 

 

Other operating

       47,199 

 

       44,755 

 

142,588 

 

     134,708 

 

Rent

         8,032 

 

         7,834 

 

     24,064 

 

       23,628 

 

Depreciation and amortization

         6,335 

 

         6,218 

 

       18,865 

 

       18,239 

 

Interest

            159 

 

            274 

 

            554 

 

            663 

 

 

Total costs and expenses

      153,559 

 

      147,117 

 

     460,506 

 

     439,127 

 

Income Before Income Taxes

       18,071 

 

       16,154 

 

       51,829 

 

       44,847 

 

Income Tax Provision

        (5,727)

 

        (2,381)

 

      (18,934)

 

      (13,416)

 

Net Income

       12,344 

 

       13,773 

 

       32,895 

 

       31,431 

 

Dividends to Preferred Shareholders

        (2,169)

 

        (2,169)

 

        (6,505)

 

        (6,505)

 

Net income available to common shareholders

 $     10,175 

 

 $     11,604 

 

$     26,390 

 

$     24,926 

 

Earnings Per Common Share:

 

 

 

 

 

 

 

 

Basic

 $        0.74 

 

 $        0.91 

 

 $        1.95 

 

 $        1.95 

 

Diluted

 $        0.74 

 

 $        0.88 

 

 $        1.95 

 

 $        1.90 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 13,675,162 

 

 12,788,968 

 

13,522,351 

 

12,778,786 

 

Diluted

 13,685,572 

 

 15,678,702 

 

13,540,066 

 

13,099,488 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

(in thousands)

Sept. 30

 

Dec. 31

 

 

 

 

 

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Cash and marketable securities

 $   252,335 

 

 $   232,463 

 

 

 

 

 

 

 

Current assets

      325,946 

 

      312,752 

 

 

 

 

 

 

 

Total assets

      810,071 

 

      777,296 

 

 

 

 

 

 

 

Current liabilities

      243,564 

 

      251,919 

 

 

 

 

 

 

 

Long-term obligations

       29,458 

 

       25,807 

 

 

 

 

 

 

 

Deferred lease credit

         2,726 

 

         3,635 

 

 

 

 

 

 

 

Deferred revenue

       16,383 

 

       15,118 

 

 

 

 

 

 

 

Stockholders' equity

      517,940 

 

      480,817 

 

 

 

 





Page 3

NHC Reports Third Quarter Earnings

 

Selected Operating Statistics

 

 

Three Months Ended

 

Nine Months Ended

 

September 30

 

September 30

 

2009

 

2008

 

2009

 

2008

Per Diems:

 

 

 

 

 

 

 

Medicare

 $   375.47 

 

$   364.28 

 

$   374.58 

 

 $   363.39 

Medicaid

151.24 

 

 147.70 

 

     151.09 

 

      146.64 

Private Pay and Other

      225.65 

 

     214.55 

 

     225.37 

 

      214.66 

 

 

 

 

 

 

 

 

Patient Days:

 

 

 

 

 

 

 

Medicare

    102,365 

 

   103,213 

 

   313,347 

 

    309,567 

Medicaid

    283,896 

 

   281,097 

 

   828,812 

 

    830,260 

Private Pay and Other

    169,191 

 

   171,478 

 

   506,384 

 

    501,526 

 

    555,452 

 

   555,788 

 

1,648,543 

 

 1,641,353 

 

 

 

 

 

 

 

 

Average Per Diem

 $   215.23 

 

$   208.55 

 

$   216.38 

 

 $   208.30