NHC Reports 2023 Year End Earnings
For the year ended
For the quarter ended
(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.
About
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company’s operations and measure the Company’s performance more consistently across periods. Therefore, the Company believes this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements.
Consolidated Statements of Operations | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
|
|
||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenues and grant income: | |||||||||||||||
Net patient revenues |
$ |
282,997 |
|
$ |
252,424 |
|
$ |
1,087,614 |
|
$ |
1,029,085 |
|
|||
Other revenues |
|
17,917 |
|
|
11,612 |
|
|
53,930 |
|
|
45,196 |
|
|||
Government stimulus income |
|
- |
|
|
517 |
|
|
- |
|
|
11,457 |
|
|||
Net operating revenues and grant income |
|
300,914 |
|
|
264,553 |
|
|
1,141,544 |
|
|
1,085,738 |
|
|||
Costs and expenses: | |||||||||||||||
Salaries, wages and benefits |
|
186,562 |
|
|
167,341 |
|
|
712,344 |
|
|
686,169 |
|
|||
Other operating |
|
70,970 |
|
|
67,365 |
|
|
288,183 |
|
|
285,644 |
|
|||
Facility rent |
|
11,438 |
|
|
10,207 |
|
|
41,525 |
|
|
40,977 |
|
|||
Depreciation and amortization |
|
11,768 |
|
|
10,478 |
|
|
42,034 |
|
|
40,489 |
|
|||
Interest |
|
56 |
|
|
112 |
|
|
324 |
|
|
563 |
|
|||
Total costs and expenses |
|
280,794 |
|
|
255,503 |
|
|
1,084,410 |
|
|
1,053,842 |
|
|||
Income from operations |
|
20,120 |
|
|
9,050 |
|
|
57,134 |
|
|
31,896 |
|
|||
Non-operating income |
|
4,544 |
|
|
2,690 |
|
|
16,660 |
|
|
11,141 |
|
|||
Unrealized gains/(losses) on marketable equity securities |
|
12,001 |
|
|
(4,327 |
) |
|
14,944 |
|
|
(15,806 |
) |
|||
Income before income taxes |
|
36,665 |
|
|
7,413 |
|
|
88,738 |
|
|
27,231 |
|
|||
Income tax provision |
|
(8,700 |
) |
|
(1,839 |
) |
|
(23,450 |
) |
|
(7,254 |
) |
|||
Net income |
|
27,965 |
|
|
5,574 |
|
|
65,288 |
|
|
19,977 |
|
|||
Net loss attributable to noncontrolling interest |
|
441 |
|
|
779 |
|
|
1,510 |
|
|
2,468 |
|
|||
Net income attributable to |
$ |
28,406 |
|
$ |
6,353 |
|
$ |
66,798 |
|
$ |
22,445 |
|
|||
Net income per common share | |||||||||||||||
Basic |
$ |
1.86 |
|
$ |
0.41 |
|
$ |
4.36 |
|
$ |
1.46 |
|
|||
Diluted |
$ |
1.83 |
|
$ |
0.41 |
|
$ |
4.34 |
|
$ |
1.45 |
|
|||
Weighted average common shares outstanding | |||||||||||||||
Basic |
|
15,306,253 |
|
|
15,326,680 |
|
|
15,310,142 |
|
|
15,410,222 |
|
|||
Diluted |
|
15,486,573 |
|
|
15,358,488 |
|
|
15,377,343 |
|
|
15,447,211 |
|
|||
Dividends declared per common share |
$ |
0.59 |
|
$ |
0.57 |
|
$ |
2.34 |
|
$ |
2.26 |
|
|||
Balance Sheet Data |
|
|
|||||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|||||||||
Cash, cash equivalents and marketable securities |
$ |
223,620 |
|
$ |
182,589 |
|
|||||||||
Restricted cash, cash equivalents and marketable securities |
|
167,971 |
|
|
158,067 |
|
|||||||||
Current assets |
|
406,235 |
|
|
353,932 |
|
|||||||||
Property and equipment, net |
|
493,329 |
|
|
506,532 |
|
|||||||||
Total assets |
|
1,310,796 |
|
|
1,275,450 |
|
|||||||||
Current liabilities |
|
214,476 |
|
|
197,887 |
|
|||||||||
Stockholders' equity |
|
910,480 |
|
|
877,514 |
|
|||||||||
Selected Operating Statistics | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
|
|
|||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Skilled Nursing Per Diems: | ||||||||||||||||
Medicare |
$ |
579.84 |
|
$ |
544.11 |
|
$ |
559.07 |
|
$ |
541.23 |
|
||||
Managed Care |
|
478.51 |
|
|
482.99 |
|
|
464.89 |
|
|
439.07 |
|
||||
Medicaid |
|
268.58 |
|
|
236.86 |
|
|
253.95 |
|
|
232.22 |
|
||||
Private Pay and Other |
|
290.85 |
|
|
265.55 |
|
|
282.14 |
|
|
267.50 |
|
||||
Average Skilled Nursing Per Diem |
$ |
337.57 |
|
$ |
310.82 |
|
$ |
324.53 |
|
$ |
304.04 |
|
(1) |
|||
Skilled |
||||||||||||||||
Medicare |
|
79,025 |
|
|
82,965 |
|
|
318,253 |
|
|
341,926 |
|
||||
Managed Care |
|
62,031 |
|
|
51,003 |
|
|
242,023 |
|
|
214,826 |
|
||||
Medicaid |
|
288,538 |
|
|
284,208 |
|
|
1,140,612 |
|
|
1,204,139 |
|
||||
Private Pay and Other |
|
170,916 |
|
|
157,174 |
|
|
663,195 |
|
|
646,651 |
|
||||
Total Skilled |
|
600,510 |
|
|
575,350 |
|
|
2,364,083 |
|
|
2,407,542 |
|
(1) |
|||
(1) For the year ended |
||||||||||||||||
The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
|
|
|||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Net income attributable to |
$ |
28,406 |
|
$ |
6,353 |
|
$ |
66,798 |
|
$ |
22,445 |
|
||||
Non-GAAP adjustments | ||||||||||||||||
Unrealized (gains)/losses on marketable equity securities |
|
(12,001 |
) |
|
4,327 |
|
|
(14,944 |
) |
|
15,806 |
|
||||
Gain on sale of property and equipment |
|
(6,230 |
) |
|
- |
|
|
(6,230 |
) |
|
- |
|
||||
Operating results for newly opened operations not at full capacity (2) |
|
742 |
|
|
1,383 |
|
|
2,359 |
|
|
5,416 |
|
||||
Impairment/(recovery) of assets |
|
- |
|
|
- |
|
|
- |
|
|
(3,728 |
) |
||||
Stock-based compensation expense |
|
663 |
|
|
632 |
|
|
2,782 |
|
|
2,612 |
|
||||
Income tax (benefit)/provision on non-GAAP adjustments |
|
4,375 |
|
|
(1,649 |
) |
|
4,169 |
|
|
(5,228 |
) |
||||
Non-GAAP Net income |
$ |
15,955 |
|
$ |
11,046 |
|
$ |
54,934 |
|
$ |
37,323 |
|
||||
GAAP diluted earnings per share |
$ |
1.83 |
|
$ |
0.41 |
|
$ |
4.34 |
|
$ |
1.45 |
|
||||
Non-GAAP adjustments | ||||||||||||||||
Unrealized (gains)/losses on marketable equity securities |
|
(0.57 |
) |
|
0.21 |
|
|
(0.72 |
) |
|
0.76 |
|
||||
Gain on sale of property and equipment |
|
(0.30 |
) |
|
(0.30 |
) |
||||||||||
Operating results for newly opened operations not at full capacity (2) |
|
0.04 |
|
|
0.07 |
|
|
0.10 |
|
|
0.26 |
|
||||
Impairment/(recovery) of assets |
|
- |
|
|
- |
|
|
(0.18 |
) |
|||||||
Stock-based compensation expense |
|
0.03 |
|
|
0.03 |
|
|
0.13 |
|
|
0.13 |
|
||||
Non-GAAP diluted earnings per share |
$ |
1.03 |
|
$ |
0.72 |
|
$ |
3.55 |
|
$ |
2.42 |
|
||||
(2) The newly opened operations not at full capacity for the 2023 periods presented consisted of operations opened from 2021 through 2023. This consisted of two behavioral health hospitals, two homecare agencies, and two hospice agencies. The newly opened operations for the 2022 periods presented consisted of operations opened from 2020 through 2022. This consisted of two behavioral health hospitals, one homecare agency, and one hospice agency. | ||||||||||||||||
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