For release: May 3, 2007
Contact: Gerald Coggin, Sr. V.P. Investor Relations
Phone: (615) 890-2020
NHC reports first quarter earnings up 29.9%
MURFREESBORO, Tenn. -- National HealthCare Corporation (AMEX: NHC), today announced first quarter net income of $7,040,000 or 56 cents per basic share, compared to $5,420,000 or 44 cents per basic share in the first quarter of 2006, an increase of 29.9%.
Revenues increased to $146,504,000 compared to $136,951,000 for the same period a year earlier.
During the quarter, construction was completed on a 60 bed addition to our Parklane facility in Columbia, South Carolina. Two hundred and ten beds have been newly constructed since April 1 of last year.
NHC provides services to 73 long-term health care centers with 9,129 beds. NHC also operates 30 homecare programs, six independent living centers and assisted living centers at 22 locations. NHC’s other services include managed care specialty medical units, Alzheimer’s units, hospice, and a rehabilitation services company. In order to understand in all material respects the financial condition, results of operations and cash flows of NHC, the investor must review our most recent Form 10-Q quarterly report, Form 10-K annual report and press releases which are available on our web site atwww.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, including claims related to the 2003 fire 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, includ ing 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.
-more-
Page 2
NHC reports first quarter earnings up 29.9%
Condensed Statements of Income (unaudited) |
(in thousands, except share and per share amounts) | | Three Months Ended March 31, |
| | 2007 | | | 2006 |
Revenues: | | | | | |
Net patient revenues | $ | 133,480 | | $ | 123,336 |
Other revenues | | 13,024 | | | 13,615 |
Net revenues | $ | 146,504 | | $ | 136,951 |
| | | | | |
Costs and Expenses: | | | | | |
Salaries, wages and benefits | $ | 79,174 | | $ | 73,724 |
Other operating | | 41,828 | | | 40,269 |
Rent | | 10,523 | | | 10,292 |
Depreciation and amortization | | 3,756 | | | 3,414 |
Interest | | 276 | | | 277 |
Total costs and expenses | $ | 135,557 | | $ | 127,976 |
| | | | | |
Income Before Income Taxes | | 10,947 | | | 8,975 |
Income Tax Provision | | (3,907) | | | (3,555) |
Net Income | $ | 7,040 | | $ | 5,420 |
| | | | | |
Earnings Per Share: | | | | | |
Basic | $ | .56 | | $ | .44 |
Diluted | $ | .54 | | $ | .42 |
| | | | | |
Weighted average common shares outstanding | | | | | |
Basic | | 12,526,231 | | | 12,281,862 |
Diluted | | 12,992,219 | | | 12,911,769 |
| | | | | |
| | | | | |
Balance Sheet Data (unaudited) | | March 31, | | | December 31, |
(in thousands) | | 2007 | | | 2006 |
Cash, restricted cash and marketable securities | $ | 229,019 | | $ | 219,246 |
Current assets | | 298,620 | | | 290,611 |
Total assets | | 487,297 | | | 471,477 |
Current liabilities | | 167,042 | | | 168,548 |
Deferred lease credits | | 5,755 | | | 6,058 |
Deferred revenue | | 28,163 | | | 25,762 |
Other long-term obligations | | 32,260 | | | 21,967 |
Stockholder’s capital | | 254,077 | | | 249,142 |
| | | | | |
| | | | | |
Selected Operating Statistics | | Three Months Ended March 31, |
| | 2007 | | | 2006 |
Per Diems: | | | | | |
Medicare | $ | 352.12 | | $ | 315.09 |
Medicaid | | 139.96 | | | 135.23 |
Private Pay and Other | | 201.10 | | | 193.41 |
| | | | | |
Patient Days: | | | | | |
Medicare | | 99,491 | | | 90,427 |
Medicaid | | 274,544 | | | 285,692 |
Private Pay and Other | | 150,420 | | | 133,723 |
| | 524,455 | | | 509,842 |
| | | | | |
Average Per Diem | $ | 197.74 | | $ | 182.39 |
-30-
