NHC(US:NHC)2025-02-28 20:05Operations Overview - As of December 31, 2024, the company operates or manages 80 skilled nursing facilities with a total of 10,341 licensed beds, 26 assisted living facilities with 1,413 units, and various other healthcare services across 9 states[184]. - The company expanded its operations by acquiring the White Oak portfolio, which includes 15 skilled nursing facilities and 2 assisted living facilities, adding 1,928 licensed skilled nursing beds[193]. - The company opened several new facilities, including a 135-unit assisted living facility in Vero Beach, FL, and a 66-bed skilled nursing facility in Nashville, TN, in 2023[192]. Financial Performance - For the year ended December 31, 2024, net patient revenues reached $1,111.3 million, an increase from $956.1 million in 2023, representing a growth of approximately 16.2%[199]. - Total costs and expenses for 2024 were $1,221.6 million, leading to an income before income taxes of $136.4 million, compared to $88.7 million in 2023[199]. - GAAP net income attributable to the company was $101,927,000 for 2024, up from $66,798,000 in 2023, while non-GAAP adjusted net income increased to $76,862,000 from $54,934,000[213]. - Net patient revenues reached $1,251,759,000 in 2024, reflecting a $164,145,000 increase, or 15.1%, compared to 2023[215]. - Total net operating revenues and grant income rose to $1,307,382, up 14.56% from $1,141,544 in 2023[288]. - Net income for 2024 reached $102,086 thousand, a significant increase of 56.3% compared to $65,288 thousand in 2023[300]. Revenue Sources - The company recognized $3,266,000 in acquisition-related expenses for the White Oak acquisition in 2024[361]. - Medicare accounted for 33% of the company's net patient revenues in 2024, a decrease from 34% in 2023[370]. - The Company recorded net patient revenues from supplemental Medicaid payments of $12,749,000, $20,214,000, and $19,442,000 for the years ended December 31, 2024, 2023, and 2022, respectively[377]. Cost Management - Salaries, wages, and benefits increased by $98,586,000, or 13.8%, to $810,930,000, representing 62.0% of net operating revenues and grant income[220]. - Total costs and expenses increased by $30,568,000, or 2.9%, to $1,084,410,000 in 2023[238]. - Agency nurse staffing expenses decreased by approximately 44.5%, or $30,682,000, compared to the prior year[239]. Investments and Acquisitions - The company made a substantial acquisition of White Oak Manor for $215,896 thousand in 2024, marking a significant investment in market expansion[300]. - The total estimated fair value of the White Oak acquisition, including goodwill, is $215,905,000[360]. Cash Flow and Assets - Cash provided by operating activities was $107,303,000 in 2024, compared to $111,216,000 in 2023[250]. - Total assets grew to $1,524,429, reflecting an increase of 16.28% from $1,310,796 in 2023[294]. - Cash and cash equivalents decreased to $76,121, down 28.93% from $107,076 in 2023[294]. Compliance and Risk Management - The Company believes it is compliant with all applicable laws and regulations governing Medicare and Medicaid programs[378]. - The company is self-insured for risks related to workers' compensation and general and professional liability insurance, with reserves reassessed quarterly[266]. Market and Economic Factors - The company is actively pursuing partnerships with hospital systems and payors to enhance its position in the post-acute healthcare services market[188]. - A hypothetical 10% change in quoted market prices would result in a related increase or decrease in the fair value of equity investments of approximately $16,325,000[275].