NHC(US:NHC)2021-02-19 20:55Financial Performance - Net patient revenues for the year ended December 31, 2020, were $931,795,000, a decrease of 1.14% from $947,872,000 in 2019[276]. - Total net operating revenues and grant income increased to $1,028,217,000 in 2020, up from $996,383,000 in 2019, reflecting a growth of 3.3%[276]. - The company reported net income of $41,990,000 for 2020, down from $67,976,000 in 2019, representing a decline of 38.3%[276]. - Basic earnings per share attributable to stockholders decreased to $2.74 in 2020 from $4.47 in 2019, a decline of 38.7%[276]. - Non-GAAP net income for 2020 was $58,543,000, compared to $59,616,000 in 2019, indicating a slight decrease of 1.8%[198]. - The company reported total costs and expenses of $980,062,000 for 2020, up from $947,345,000 in 2019, representing an increase of 3.5%[194]. - The income before income taxes for 2020 was $52,423,000, a decrease from $88,015,000 in 2019, reflecting a decline of 40.4%[194]. - The company reported a net cash used in investing activities of $63,878, compared to $14,265 in 2019, showing a significant increase in investment outflows[287]. - Cash provided by operating activities for the year ended December 31, 2020, was $203,259,000, a 103.1% increase from $100,103,000 in 2019[236]. Government Assistance and Relief Funds - The Company received $63,573,000 from the Provider Relief Fund, recording $47,505,000 as government stimulus income for the year ended December 31, 2020[174]. - The Company anticipates incurring additional COVID-19 related expenses or lost revenues in the future, with $16,068,000 of provider relief funds remaining to be utilized[174]. - The Company received approximately $51,253,000 as part of the expanded Medicare Accelerated and Advance Payment Program[175]. - The Company deferred $21,158,000 of the employer's portion of social security taxes, with half due by December 31, 2021, and the other half by December 31, 2022[347]. - The Company recognized government stimulus income of $47,505,000 in 2020, which was not present in 2019[193]. Operational Metrics - The overall census in skilled nursing facilities for 2020 was 83.6%, down from 90.3% in 2019 and 89.8% in 2018[182]. - The Company has 75 skilled nursing facilities, with 81% rated as 4 or 5 stars compared to 49% in the industry[185]. - The census in skilled nursing facilities dropped to 83.6% for the year due to the impact of COVID-19[341]. - The company operates two reportable segments: inpatient services and homecare services, focusing on improving patient care quality and profitability[190]. Expenses and Liabilities - Salaries, wages, and benefits accounted for 59.3% of net operating revenues in 2020, slightly down from 59.5% in 2019[201]. - Salaries, wages, and benefits increased to $609,306,000 in 2020, compared to $592,831,000 in 2019, marking a rise of 2.5%[276]. - The company incurred $47,897,000 in COVID-19 related expenses for the year ended December 31, 2020[214]. - Total current liabilities increased to $281,228, up from $194,763 in 2019, reflecting a rise of 44.3%[285]. - Accrued professional liability and workers' compensation reserves totaled $99,537,000 as of December 31, 2020[188]. Market and Investment Performance - The company experienced unrealized losses on marketable equity securities of $23,966,000 in 2020, compared to unrealized gains of $12,230,000 in 2019[198]. - Unrealized losses in marketable equity securities amounted to $36,196,000, a decrease of 296.0% compared to the previous year[219]. - The fair value of marketable equity securities was approximately $133,270,000 as of December 31, 2020, with unrealized gains of $98,300,000, of which $88,100,000 was related to NHI[265]. - The company has established comprehensive risk management policies to manage market risks related to its fixed-income and equity portfolios[259]. Future Outlook and Strategic Plans - The company plans to continue focusing on expanding its healthcare facilities and improving operational efficiency in the upcoming periods[196]. - The company anticipates that future performance will be influenced by various factors, including changes in government payment rates and customer demand[243]. - The Company is expanding operations with recent acquisitions and constructions, including a 30-bed addition in Springfield, MO, and a 166-bed acquisition in Knoxville, TN[186]. Changes in Accounting and Reporting - The company adopted ASU No. 2016-13 on January 1, 2020, which did not have a material impact on consolidated financial statements[338]. - The company also early adopted ASU No. 2019-12 on January 1, 2020, with no material impact on consolidated financial statements[340]. - The company recognizes revenue based on performance obligations satisfied over time, ensuring compliance with U.S. GAAP standards[299].