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8-K - NATIONAL HEALTHCARE CORPform8kye2013earnings.htm

Exhibit 99.1

[ex991nhc2013yearendearnin001.jpg]


For release:  February 24, 2014

Contact: Gerald Coggin, Sr. VP of Corporate Relations

Phone: (615) 890-2020


NHC Reports Year End Earnings


MURFREESBORO, Tenn. -- National HealthCare Corporation (NYSE MKT:  NHC, NHC.PRA), the nation's oldest publicly traded long-term health care company, today announced net income available to common shareholders of $55,942,000 or $4.05 per share basic for the year ended December 31, 2013, compared to $50,629,000 or $3.65 per share basic for the year ended December 31, 2012.  Annual net operating revenues in 2013 increased 3.7% from $761,002,000 to $788,957,000, despite the automatic 2% cuts known as "sequestration" that began on April 1, 2013 for Medicare providers.  

Operating results for the 2013 year compared to the 2012 year were favorably impacted by a gain on the recovery of notes receivable in the amount of $5,454,000 (approximately $3,327,000 after income taxes), by the positive results within our accrued risk reserves, as well as the continued efforts to reduce expenses in our skilled nursing facilities.

Fourth quarter of 2013 net income available to common shareholders was $14,421,000 or $1.04 per basic share, compared to $13,727,000 or 99 cents per basic share in the fourth quarter of 2012, an increase of 5.1%.  Net operating revenues for the fourth quarter of 2013 increased 6.6% from $193,977,000 to $206,796,000.


Forward-Looking Statements

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 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, including 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; 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 NHCs best judgment as of the date of this release.


About NHC

NHC affiliates operate for themselves and third parties 69 long-term health care centers with 8,943 beds.  NHC affiliates also operate 38 homecare programs, five independent living centers and 15 assisted living communities.  NHCs other services include Alzheimers units, long-term care pharmacies, hospice, a rehabilitation services company, and providing management and accounting services to third parties. Other information about the company can be found on our web site at www.nhccare.com.  



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Consolidated Statements of Income








(in thousands, except share and per share amounts)




















Three Months Ended


Twelve Months Ended





December 31


December 31





2013


2012


2013


2012

Revenues:


(unaudited)






Net patient revenues

 $   196,040


 $     180,175


 $   735,837


 $   705,386


Other revenues

       10,756


         13,802


       53,120


       55,616



Net operating revenues

      206,796


       193,977


      788,957


      761,002












Costs and Expenses:









Salaries, wages and benefits

      123,400


       108,906


      453,560


      426,934


Other operating

       46,098


         46,959


      194,989


      196,230


Facility rent


         9,822


           9,848


       39,449


       39,355


Depreciation and amortization

         7,574


           7,624


       28,547


       29,792


Interest


              83


              110


            331


            455



Total costs and expenses

      186,977


       173,447


      716,876


      692,766












Income Before Non-Operating Income

       19,819


         20,530


       72,081


       68,236

Non-Operating Income

         5,674


           6,699


       30,095


       25,245












Income Before Income Taxes

       25,493


         27,229


      102,176


       93,481

Income Tax Provision

       (8,904)


        (11,334)


     (37,563)


     (34,181)












Net Income


       16,589


         15,895


       64,613


       59,300












Dividends to Preferred Stockholders

       (2,168)


          (2,168)


      (8,671)


       (8,671)












Net Income Available to Common Stockholders

 $     14,421


 $      13,727


 $     55,942


 $     50,629












Earnings Per Common Share









Basic


 $        1.04


 $          0.99


 $        4.05


 $        3.65


Diluted


 $        0.99


 $          0.95


 $        3.87


 $        3.57












Weighted average common shares outstanding









Basic


 13,820,554


   13,872,472


 13,829,626


 13,852,709


Diluted


 16,690,915


   16,657,861


 16,698,803


 16,598,816












Dividends declared per common share

 $        0.32


 $          1.30


 $        1.26


 $        2.20














Balance Sheet Data










(in thousands)

Dec. 31


Dec. 31









2013


2012







Cash and marketable securities

 $   186,714


 $     173,951







Restricted cash and marketable securities

      155,932


       146,770







Current assets

      436,928


       417,245







Property and equipment, net

      456,798


       420,907







Total assets

      980,725


       924,700







Current liabilities

      250,359


       228,761







Long-term debt

       10,000


         10,000







Stockholders' equity

      688,112


       656,148
















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Selected Operating Statistics







(unaudited)









Three Months Ended


Twelve Months Ended


December 31


December 31


2013


2012


2013


2012

Per Diems:








Medicare

 $      435.34


 $   434.47


 $   429.32


 $   430.13

Managed Care

 $      406.30


 $   408.76


 $   406.18


 $   408.22

Medicaid

 $      167.81


 $   165.68


 $   165.26


 $   159.65

Private Pay and Other

 $      210.84


 $   192.95


 $   204.52


 $   192.42









Patient Days:








Medicare

       119,150


    118,006


    479,716


    478,767

Managed Care

        40,413


      33,387


    148,600


    124,801

Medicaid

       304,460


    270,200


 1,094,942


 1,088,944

Private Pay and Other

       160,514


    151,004


    606,280


    599,966


       624,537


    572,597


 2,329,538


 2,292,478









Average Per Diem

 $      245.37


 $   242.44


 $   245.22


 $   238.25