On August 9, 2024, National Healthcare Corp (NHC, Financial) released its 8-K filing for the second quarter ended June 30, 2024. The company, which provides long-term care facilities and various healthcare services, reported net operating revenues and grant income of $300.7 million, a 6.4% increase from $282.6 million in the same period last year. Excluding governmental stimulus income and supplemental Medicaid payments, same-facility net operating revenues increased by 8.0%.
Company Overview
National Healthcare Corp (NHC, Financial) operates skilled nursing facilities, assisted living facilities, independent living facilities, and home care programs. The company provides sub-acute and post-acute skilled nursing care, intermediate nursing care, rehabilitative care, memory and Alzheimer's care, senior living services, and home health care services. Additionally, NHC offers management, accounting, financial, and insurance services to third-party healthcare facility operators. The company's primary revenue comes from its Inpatient services segment.
Performance and Challenges
For the quarter ended June 30, 2024, NHC reported a GAAP net income of $26.8 million, up from $16.3 million in the same period in 2023. Adjusted net income, excluding unrealized gains in marketable equity securities and other non-GAAP adjustments, was $15.6 million compared to $13.7 million in the previous year. The GAAP diluted earnings per share were $1.73, an increase from $1.06, while adjusted diluted earnings per share were $1.00, up from $0.89.
Financial Achievements
The increase in net operating revenues and net income is significant for NHC, reflecting the company's ability to manage costs and improve operational efficiency. The healthcare industry, particularly the long-term care segment, faces challenges such as regulatory changes and fluctuating reimbursement rates. NHC's performance indicates resilience and effective management strategies.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Operating Revenues | $300.7 million | $282.6 million |
| GAAP Net Income | $26.8 million | $16.3 million |
| Adjusted Net Income | $15.6 million | $13.7 million |
| GAAP Diluted EPS | $1.73 | $1.06 |
| Adjusted Diluted EPS | $1.00 | $0.89 |
Income Statement Highlights
Net patient revenues for the quarter were $279.9 million, up from $269.6 million in Q2 2023. Government stimulus income contributed $9.4 million to the total net operating revenues. Total costs and expenses increased to $278.1 million from $268.6 million, driven by higher salaries, wages, and benefits, which rose to $180.1 million from $175.3 million.
Balance Sheet and Cash Flow
As of June 30, 2024, NHC reported cash, cash equivalents, and marketable securities of $270.0 million, up from $223.6 million at the end of 2023. Total assets increased to $1.34 billion from $1.31 billion, while stockholders' equity rose to $945.8 million from $908.8 million.
Operating Statistics
Skilled nursing per diems showed growth across various payer categories, with Medicare per diem increasing to $577.71 from $548.74, and Medicaid per diem rising to $264.49 from $253.22. Total skilled nursing patient days decreased slightly to 567,297 from 588,229, partly due to the exit from three skilled nursing facilities in Missouri.
Analysis
National Healthcare Corp (NHC, Financial) demonstrated strong financial performance in the second quarter of 2024, with significant increases in net operating revenues and net income. The company's ability to manage costs and improve operational efficiency is evident in the reported figures. However, the slight decrease in skilled nursing patient days and the challenges posed by regulatory changes and reimbursement rates remain areas to monitor.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from National Healthcare Corp for further details.
