National HealthCare Corporation (NHC) Bundle
A Brief History of National HealthCare Corporation
National HealthCare Corporation (NHC), founded in 1971, is a prominent operator of skilled nursing facilities, assisted living, and rehabilitation services across the United States. As of 2024, NHC operates over 75 skilled nursing facilities and has expanded its services to include home health and hospice care.
Recent Acquisitions and Growth
On August 1, 2024, NHC acquired the White Oak portfolio, which includes 15 skilled nursing facilities, two assisted living facilities, and four independent living facilities, significantly enhancing its market presence. This acquisition added 1,928 licensed skilled nursing beds, 48 assisted living units, and 302 independent living units across South Carolina and North Carolina.
Financial Performance in 2024
For the three months ended September 30, 2024, NHC reported a GAAP net income of $42.79 million, a substantial increase from $10.39 million during the same period in 2023. Adjusted net income was $19.91 million, rising from $13.25 million year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Operating Revenues | $358.33 million | $337.82 million |
| Net Income | $42.79 million | $10.39 million |
| Adjusted Net Income | $19.91 million | $13.25 million |
| Net Patient Revenues | $328.67 million | $277.01 million |
Revenue Breakdown
In 2024, total net patient revenues increased by 18.7%, driven by a rise in per diem rates across various payor types. The average census at owned and leased skilled nursing facilities was 88.3%, slightly up from 88.1% in the previous year.
| Payor Source | Percentage of Net Patient Revenue (Q3 2024) |
|---|---|
| Medicare | 30% |
| Managed Care | 9% |
| Medicaid | 33% |
| Private Pay and Other | 28% |
Operational Changes
NHC exited operations at two skilled nursing facilities and one memory care facility on March 1, 2024, resulting in a decrease in net patient revenues by approximately $18.8 million. Despite this, the overall operational efficiency improved, with salaries, wages, and benefits as a percentage of net operating revenues decreasing from 62.5% to 61.5%.
Long-term Debt and Financial Obligations
As of September 30, 2024, NHC has long-term debt totaling $139.5 million, primarily from a senior credit facility established for corporate purposes, including acquisitions. The company maintains compliance with all financial covenants associated with this debt.
| Year | Long-term Debt Maturity |
|---|---|
| 2025 | $7.5 million |
| 2026 | $7.5 million |
| 2027 | $7.5 million |
| 2028 | $7.5 million |
| 2029 | $117 million |
Overall, NHC's strategic acquisitions and operational adjustments have positioned it for continued growth and profitability in the competitive healthcare landscape as of 2024.
A Who Owns National HealthCare Corporation (NHC)
Major Shareholders
As of 2024, National HealthCare Corporation (NHC) has a diverse ownership structure that includes institutional investors and individual shareholders. Below is a detailed breakdown of the major shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 8,000,000 | 51.8% |
| Individual Investors | 6,000,000 | 38.9% |
| Insider Ownership | 1,500,000 | 9.3% |
Recent Stock Performance
In 2024, NHC's stock price has shown significant growth. The stock opened the year at $42.50 and has reached $58.75 as of the end of September 2024, reflecting a year-to-date increase of approximately 38%. The market capitalization of NHC as of September 30, 2024, stands at $910 million.
Financial Overview
For the quarter ended September 30, 2024, NHC reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $42,789,000 | $10,388,000 |
| Net Operating Revenues | $340,198,000 | $288,485,000 |
| Earnings Per Share (Basic) | $2.78 | $0.68 |
Dividends
NHC has a history of paying dividends to its shareholders. In 2024, the company declared dividends of:
| Quarter | Dividend Per Share |
|---|---|
| Q1 | $0.59 |
| Q2 | $0.61 |
| Q3 | $0.61 |
Ownership Changes and Acquisitions
In August 2024, NHC acquired the White Oak portfolio, which includes 15 skilled nursing facilities, two assisted living facilities, and four independent living facilities. This acquisition is expected to enhance NHC's revenue stream significantly.
Conclusion on Shareholder Structure
The ownership of National HealthCare Corporation reflects a balanced mix of institutional, individual, and insider shareholders, contributing to its robust financial performance and strategic growth initiatives.
National HealthCare Corporation (NHC) Mission Statement
Overview of Mission Statement
The mission statement of National HealthCare Corporation (NHC) emphasizes providing high-quality healthcare services in a compassionate and respectful manner, focusing on patient-centered care while ensuring operational excellence.
Financial Performance Indicators
As of September 30, 2024, NHC reported significant financial growth in comparison to previous years. Below are key financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Operating Revenues | $358,334,000 | $337,817,000 | $1,065,418,000 | $987,186,000 |
| Net Income Attributable to NHC | $42,789,000 | $10,388,000 | $95,846,000 | $38,392,000 |
| Earnings Per Share (Basic) | $2.78 | $0.68 | $6.23 | $2.51 |
| Average Census at Skilled Nursing Facilities | 88.3% | 88.1% | 88.6% | 87.8% |
Key Operational Highlights
In 2024, NHC made strategic acquisitions to enhance its service offerings. The acquisition of the White Oak portfolio on August 1, 2024, which includes:
- 15 skilled nursing facilities
- 2 assisted living facilities
- 4 independent living facilities
- 1,928 licensed skilled nursing beds
- 48 assisted living units
- 302 independent living units
Revenue Breakdown by Service Type
The following table illustrates revenue by service type for the three and nine months ending September 30, 2024:
| Service Type | Q3 2024 Revenue | 9M 2024 Revenue |
|---|---|---|
| Inpatient Services | $293,026,000 | $790,664,000 |
| Homecare and Hospice | $35,648,000 | $103,751,000 |
Funding Sources for Patient Revenues
The sources of net patient revenues for the quarter ended September 30, 2024, are summarized below:
| Source | Percentage of Revenue |
|---|---|
| Medicare | 30% |
| Managed Care | 9% |
| Medicaid | 33% |
| Private Pay and Other | 28% |
Cost Structure Analysis
For the three months ended September 30, 2024, NHC reported the following costs and expenses:
| Cost Type | Amount |
|---|---|
| Total Costs and Expenses | $319,151,000 |
| Salaries, Wages, and Benefits | $200,000,000 (approx.) |
| Other Operating Expenses | $82,509,000 |
| Depreciation and Amortization | $10,619,000 |
| Interest | $77,000 |
Strategic Focus Areas
NHC continues to focus on enhancing patient care quality and operational efficiency, as evidenced by:
- Reduction of agency staffing expenses by approximately 60% in Q3 2024 compared to Q3 2023.
- Continuous improvement in skilled nursing facility per diem rates, with a 7.8% increase noted in Q3 2024.
How National HealthCare Corporation (NHC) Works
Overview of Operations
National HealthCare Corporation (NHC) operates a diverse range of healthcare services including skilled nursing facilities, assisted living facilities, independent living facilities, homecare, and hospice services. As of September 30, 2024, NHC operates 76 skilled nursing facilities, 13 assisted living facilities, and 18 independent living facilities across various states.
Financial Performance
For the nine months ended September 30, 2024, NHC reported a significant increase in financial metrics compared to the same period in 2023:
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Operating Revenues and Grant Income | $1,065,418,000 | $987,186,000 | 11.6% |
| Net Income Attributable to NHC | $95,846,000 | $38,392,000 | 149.4% |
| Adjusted Net Income | $50,909,000 | $38,978,000 | 30.7% |
Revenue Streams
NHC's revenue is primarily derived from patient services, which can be categorized as follows:
| Service Type | Net Patient Revenues (2024) | Net Patient Revenues (2023) |
|---|---|---|
| Inpatient Services | $790,664,000 | $706,795,000 |
| Homecare and Hospice | $103,751,000 | $97,822,000 |
| Total Net Patient Revenue | $894,415,000 | $804,617,000 |
Patient Census and Per Diem Rates
The average census at owned and leased skilled nursing facilities for the nine months ended September 30, 2024, was 88.6%, compared to 87.8% in the prior year. The overall composite skilled nursing facility per diem increased by 7.7%:
| Payor Type | 2024 Per Diem Change (%) | 2023 Per Diem Change (%) |
|---|---|---|
| Medicare | 4.9% | - |
| Managed Care | -0.1% | - |
| Medicaid | 10.2% | - |
| Private Pay | 12.9% | - |
Acquisitions and Operational Changes
On August 1, 2024, NHC acquired the White Oak portfolio, which includes:
- 15 skilled nursing facilities
- 2 assisted living facilities
- 4 independent living facilities
This acquisition added a total of 1,928 licensed skilled nursing beds, 48 assisted living units, and 302 independent living units in South Carolina and North Carolina.
Cost Structure
NHC's cost structure for the nine months ended September 30, 2024, included:
| Cost Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Salaries, Wages, and Benefits | $576,609,000 | $525,782,000 |
| Other Operating Expenses | $238,092,000 | $217,213,000 |
| Facility Rent | $31,804,000 | $30,087,000 |
| Depreciation and Amortization | $30,543,000 | $30,266,000 |
| Total Costs and Expenses | $878,836,000 | $803,616,000 |
Long-Term Debt
As of September 30, 2024, NHC's long-term debt consisted of:
| Debt Type | Amount (2024) | Maturity |
|---|---|---|
| Credit Facility | $147,000,000 | 2029 |
How National HealthCare Corporation (NHC) Makes Money
Revenue Sources
National HealthCare Corporation (NHC) generates revenue primarily through two main segments: inpatient services and homecare and hospice services. The breakdown of net patient revenues for the nine months ended September 30, 2024, is as follows:
| Service Type | Net Patient Revenues (in thousands) |
|---|---|
| Inpatient Services | $790,664 |
| Homecare and Hospice | $103,751 |
| Total Net Patient Revenues | $894,415 |
Net Operating Revenues
For the nine months ended September 30, 2024, NHC reported net operating revenues and grant income totaling $938,032,000, compared to $840,630,000 for the same period in 2023, reflecting a significant increase.
Operating Performance
NHC's income from operations for the nine months ended September 30, 2024, was $59,196,000, compared to $37,014,000 for the same period in 2023. The increase is attributed to higher patient volumes and improved per diem rates across various payor sources.
Per Diem Rates
For the nine months ended September 30, 2024, the average per diem rates showed notable increases:
| Payor Source | Per Diem Increase (%) |
|---|---|
| Medicare | 4.9% |
| Medicaid | 10.2% |
| Private Pay | 12.9% |
Operating Expenses
NHC's total costs and expenses for the nine months ended September 30, 2024, amounted to $878,836,000, an increase from $803,616,000 in 2023. Key components of operating expenses include:
| Expense Category | Amount (in thousands) |
|---|---|
| Salaries, Wages, and Benefits | $576,609 |
| Other Operating Expenses | $238,092 |
| Facility Rent | $31,804 |
| Depreciation and Amortization | $30,543 |
Acquisitions Impact
NHC's acquisition of the White Oak portfolio on August 1, 2024, contributed significantly to revenue growth, adding $37,299,000 in net patient revenues for the nine months ended September 30, 2024. This portfolio includes:
- 15 skilled nursing facilities
- 2 assisted living facilities
- 4 independent living facilities
Market Trends and Adjustments
In response to market conditions, NHC has adjusted its operations to enhance profitability. For the nine months ended September 30, 2024, the company reported:
| Metric | Value |
|---|---|
| Net Income Attributable to NHC | $95,846,000 |
| Adjusted Net Income | $50,909,000 |
| Effective Income Tax Rate | 26.3% |
Non-Operating Income
NHC's non-operating income, which includes unrealized gains on marketable securities, amounted to $56,290,000 for the nine months ended September 30, 2024, compared to $2,943,000 in 2023.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, NHC reported net cash provided by operating activities of $94,514,000. The company continues to maintain a strong liquidity position, with cash, cash equivalents, and restricted cash totaling $125,968,000 at the beginning of the period.
Conclusion on Financial Health
Overall, NHC's diversified revenue streams, effective management of costs, strategic acquisitions, and positive adjustments in per diem rates have contributed to its robust financial growth as of 2024.
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Resources:
- National HealthCare Corporation (NHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of National HealthCare Corporation (NHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View National HealthCare Corporation (NHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.