Exhibit 99.1
For release: November 9, 2007
Contact: Gerald Coggin, Sr. V.P. Investor Relations
Phone: (615) 890-2020
NHC reports third quarter earnings
MURFREESBORO, Tenn. -- National HealthCare Corporation (AMEX: NHC; NHC.PR.A), today announced third quarter net income of $13,126,000 or $1.05 per basic share, compared to $9,271,000 or 75 cents per basic share in the third quarter of 2006, an increase of 41.6%.
Revenues increased to $158,511,000 compared to $143,768,000 for the same period a year earlier.
Other revenues for the three months ended September 30, 2007 include a $10,792,000 gain (approximately $6,475,000 after income taxes) related to the sale of undeveloped land.
NHC provides services to 73 long-term health care centers with 9,127 beds. NHC also operates 31 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, 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, including our compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application o f 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.
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Page 2 |
NHC reports third quarter earnings |
|
Condensed Statements of Income |
(in thousands, except share and per share amounts) |
|
| | | | Three Months Ended | | Nine Months Ended |
| | | | September 30 | | September 30 |
Revenues: | | 2007 | | 2006 | | 2007 | | 2006 |
| Net patient revenues | 134,131 | | $ 128,689 | | 401,642 | | $ 375,979 |
| Other revenues | 24,380 | | 15,079 | | 53,319 | | 45,409 |
| | Net revenues | $ 158,511 | | $ 143,768 | | $ 454,961 | | $ 421,388 |
| | | | | | | | | | |
Costs and Expenses: | | | | | | | |
| Salaries, wages and benefits | 83,540 | | $ 72,798 | | 244,253 | | $ 223,839 |
| Other operating | 40,992 | | 41,660 | | 123,753 | | 121,075 |
| Recovery of notes receivable | - | | - | | (6,195) | | (7,309) |
| Rent | | 10,535 | | 10,178 | | 31,544 | | 30,808 |
| Depreciation and amortization | 3,892 | | 3,588 | | 11,476 | | 10,472 |
| Interest | | 281 | | 241 | | 851 | | 761 |
| | Total costs and expenses | $ 139,240 | | $ 128,465 | | $ 405,682 | | $ 379,646 |
| | | | | | | | | | |
Income Before Income Taxes | 19,271 | | 15,303 | | 49,279 | | 41,742 |
| Income Tax Provision | (6,145) | | (6,032) | | (17,221) | | (16,688) |
| | | | | | | | | | |
Net Income | | $ 13,126 | | $ 9,271 | | $ 32,058 | | $ 25,054 |
| | | | | | | | | | |
Earnings Per Share: | | | | | | | |
| Basic | | $ 1.05 | | $ 0.75 | | $ 2.56 | | $ 2.04 |
| Diluted | | $ 1.01 | | $ 0.71 | | $ 2.47 | | $ 1.94 |
| | | | | | | | | | |
Weighted average common shares outstanding | | | | | | | |
| Basic | | 12,538,340 | | 12,300,542 | | 12,534,269 | | 12,292,149 |
| Diluted | | 12,981,366 | | 12,969,936 | | 12,989,561 | | 12,921,595 |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | Balance Sheet Data | | | | | | | |
| | | (in thousands) | Sept. 30 | | Dec. 31 | | | | |
| | | | 2007 | | 2006 | | | | |
| | | Cash and marketable securites | $ 244,759 | | $ 219,246 | | | | |
| | | Current assets | 326,489 | | 290,611 | | | | |
| | | Total assets | 511,666 | | 471,477 | | | | |
| | | Current liabilities | 185,242 | | 168,548 | | | | |
| | | Long-term obligations | 19,996 | | 21,967 | | | | |
| | | Deferred lease credit | 5,150 | | 6,058 | | | | |
| | | Deferred revenue | 26,120 | | 25,762 | | | | |
| | | Shareholders' equity | 275,158 | | 249,142 | | | | |
| | | | | | | | | | |
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NHC reports third quarter earnings |
|
Selected Operating Statistics |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30 | | September 30 |
| 2007 | | 2006 | | 2007 | | 2006 |
Per Diems: | | | | | | | |
Medicare | $ 349.97 | | $ 332.50 | | $ 350.18 | | $ 323.01 |
Medicaid | 143.61 | | 138.10 | | 141.57 | | 135.63 |
Private Pay and Other | 202.71 | | 191.46 | | 202.27 | | 191.96 |
| | | | | | | |
Patient Days: | | | | | | | |
Medicare | 96,627 | | 92,359 | | 296,600 | | 276,606 |
Medicaid | 280,084 | | 288,910 | | 831,164 | | 861,609 |
Private Pay and Other | 165,101 | | 151,527 | | 471,688 | | 427,818 |
| 541,812 | | 532,796 | | 1,599,452 | | 1,566,033 |
| | �� | | | | | |
Average Per Diem | $ 198.42 | | $ 186.98 | | $ 198.15 | | $ 184.11 |
| | | | | | | |
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