NHC(NHC) - 2025 Q1 - Quarterly Results

NHC Q1 2025 Earnings Release Financial Highlights National HealthCare Corporation (NHC) reported strong financial results for the first quarter of 2025, with net operating revenues increasing 25.7% year-over-year to $373.7 million, driven by the August 2024 acquisition of White Oak Management, Inc. and an 8.5% increase in same-facility revenues, leading to significant increases in both GAAP and adjusted net income, with adjusted net income growing by 61.4% to $24.8 million Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 ($ millions) | Q1 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Net Operating Revenues | $373.7 | $297.2 | +25.7% | | GAAP Net Income | $32.2 | $26.2 | +22.9% | | Adjusted Net Income | $24.8 | $15.4 | +61.4% | | GAAP Diluted EPS | $2.07 | $1.69 | +22.5% | | Adjusted Diluted EPS | $1.59 | $0.99 | +60.6% | - Revenue growth was fueled by two main factors: an 8.5% increase in same-facility net operating revenues and the acquisition of White Oak Management, Inc. on August 1, 2024[1] - The White Oak acquisition added 22 healthcare operations, including 15 skilled nursing facilities, 2 assisted living facilities, 4 independent living facilities, and a long-term care pharmacy[1] Consolidated Financial Statements The Consolidated Statements of Operations for Q1 2025 show a significant increase in income from operations to $30.8 million, nearly double the $15.7 million from Q1 2024, driven by a $76.5 million increase in net patient revenues, partially offset by higher operating costs, particularly a $45 million rise in salaries, wages, and benefits, while balance sheet data indicates growth in total assets to $1.55 billion and NHC stockholders' equity to over $1 billion as of March 31, 2025 Consolidated Statement of Operations Highlights (in thousands) | Account | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :--- | :--- | :--- | | Net Patient Revenues | $361,607 | $285,823 | | Net Operating Revenues | $373,697 | $297,176 | | Total Costs and Expenses | $342,930 | $281,501 | | Income from Operations | $30,767 | $15,675 | | Net Income Attributable to NHC | $32,205 | $26,213 | | Diluted EPS | $2.07 | $1.69 | Selected Balance Sheet Data (in thousands) | Account | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $243,171 | $216,185 | | Total Assets | $1,548,821 | $1,524,429 | | NHC Stockholders' Equity | $1,004,895 | $980,161 | - Dividends declared per common share increased to $0.61 in Q1 2025 from $0.59 in Q1 2024[7] Selected Operating Statistics Operating statistics for Q1 2025 reflect broad improvements in the skilled nursing segment, with the average skilled nursing per diem rate rising to $360.14 from $343.48 in the prior year, and total skilled nursing patient days increasing significantly to 718,136 from 585,851, showing notable growth in Medicaid and Managed Care patient days, influenced by both organic growth and acquisitions Skilled Nursing Per Diems (YoY) | Payor Type | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Medicare | $612.13 | $581.75 | | Managed Care | $492.40 | $470.56 | | Medicaid | $281.67 | $265.27 | | Average | $360.14 | $343.48 | Total Skilled Nursing Patient Days (YoY) | Payor Type | Q1 2025 (days) | Q1 2024 (days) | | :--- | :--- | :--- | | Medicare | 86,254 | 81,156 | | Managed Care | 83,646 | 65,431 | | Medicaid | 363,642 | 281,821 | | Total | 718,136 | 585,851 | - The year-over-year comparison is impacted by NHC's exit from three skilled nursing facilities in Missouri on March 1, 2024, which accounted for 20,267 patient days in Q1 2024[8] GAAP to Non-GAAP Reconciliation The company provides a reconciliation of GAAP to non-GAAP financial measures to offer a clearer view of ongoing operational performance, where for Q1 2025, GAAP net income of $32.2 million was adjusted to a non-GAAP net income of $24.8 million, primarily by excluding $11.0 million in unrealized gains on marketable equity securities and adding back $1.0 million in stock-based compensation expense Reconciliation of Net Income (in thousands) | Description | Q1 2025 ($ thousands) | Q1 2024 ($ thousands) | | :--- | :--- | :--- | | GAAP Net Income | $32,205 | $26,213 | | Unrealized gains on marketable equity securities | ($10,982) | ($14,399) | | Stock-based compensation expense | $1,027 | $793 | | Income tax provision on non-GAAP adjustments | $2,588 | $3,804 | | Non-GAAP Net Income | $24,838 | $15,386 | Reconciliation of Diluted EPS | Description | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | GAAP Diluted EPS | $2.07 | $1.69 | | Unrealized gains on marketable equity securities | ($0.71) | ($0.93) | | Stock-based compensation expense | $0.06 | $0.05 | | Income tax provision on non-GAAP adjustments | $0.17 | $0.25 | | Non-GAAP Diluted EPS | $1.59 | $0.99 | Company Overview and Disclosures NHC and its affiliates operate a broad portfolio of senior care facilities, including 80 skilled nursing facilities, 26 assisted living communities, and 9 independent living communities, alongside homecare, hospice, and pharmacy services, with the report including standard disclosures explaining the use of non-GAAP financial measures to help investors assess performance consistently and a caution on forward-looking statements, which are subject to risks and uncertainties - NHC affiliates operate 80 skilled nursing facilities (10,329 beds), 26 assisted living communities (1,413 units), 9 independent living communities (777 units), and numerous other healthcare services[3] - The company presents non-GAAP financial measures because it believes they help investors more accurately assess the ongoing nature of its operations and performance across periods[4] - The press release contains forward-looking statements that are not guarantees of future performance and involve risks and uncertainties detailed in SEC filings[5]