NHC Reports Second Quarter 2025 Earnings
MWN-AI** Summary
National HealthCare Corporation (NHC), a leader in the senior healthcare sector, reported robust financial results for the second quarter of 2025, reflecting significant growth in net operating revenues. For the quarter ending June 30, 2025, NHC achieved net operating revenues of $374.9 million, a remarkable increase of 24.7% from $300.7 million reported in the same quarter of 2024. This growth was attributed to a 9.6% rise in same-facility revenues and the acquisition of White Oak Management, Inc. in August 2024.
Despite the revenue increase, NHC's GAAP net income attributable to the company decreased to $23.7 million, compared to $26.8 million in the previous year. Adjusting for non-GAAP items, NHC's adjusted net income surged by 64.7% to $25.7 million in Q2 2025, up from $15.6 million in Q2 2024. As a result, the adjusted diluted earnings per share rose sharply to $1.65 from $1.00 year-on-year, while GAAP diluted earnings per share dipped slightly from $1.73 to $1.52.
Further underscoring its operational scale, NHC affiliates manage 80 skilled nursing facilities and a range of senior living communities and homecare services as of August 2025. The company is noting its efforts in enhancing service offerings, notably in skilled nursing and memory care.
The financial statements also highlight an increase in total assets, now totaling $1.56 billion, reflecting strategic growth initiatives. NHC continues to navigate a demanding healthcare environment, with confidence in its long-term operational strategies despite the external challenges faced in recent quarters. Shareholders should interpret these results as a positive reflection of NHC’s ongoing commitment to enhancing its financial and operational frameworks.
MWN-AI** Analysis
National HealthCare Corporation (NHC) reported a strong second quarter in 2025, achieving a remarkable 24.7% increase in net operating revenues year-over-year, totaling approximately $374.91 million. This robust growth is attributed to a 9.6% rise in same-facility revenues and the strategic acquisition of White Oak Management, bolstering NHC's operational capacity.
Despite the revenue surge, net income attributable to NHC decreased to $23.72 million from $26.84 million in Q2 2024, primarily due to unrealized losses in marketable securities. However, the adjusted net income saw a significant increase of 64.7%, highlighting operational profitability, with adjusted diluted earnings per share improving to $1.65 from $1.00 in the prior year. This suggests that NHC is effectively managing its core operations even amidst market volatility.
Investors should note the company’s strong cash position, with cash and cash equivalents rising to $257.63 million, reflecting improved liquidity and financial health. NHC also declared a dividend of $0.64 per share, indicating its commitment to returning value to shareholders, consistent with its long history as a dividend-paying stock.
The skilled nursing sector remains competitive, but NHC's increased per diem rates across Medicare, Managed Care, and Medicaid categories suggest the company is well-positioned to capitalize on rising healthcare demands. The ongoing operational expansion into behavioral health and hospice care enhances diversification, providing additional revenue streams.
However, investors should be cautious of market fluctuations affecting unrealized gains/losses. The forward-looking uncertainties inherent in healthcare regulations and post-acute care dynamics could impact future earnings. Thus, NHC presents a cautiously optimistic investment opportunity—favoring long-term holdings over speculative trades in the current climate. Overall, maintaining a diversified portfolio that includes NHC could provide a strategic advantage in navigating the evolving healthcare landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
National HealthCare Corporation (NYSE American: NHC ), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended June 30, 2025 totaled $374,910,000 compared to $300,658,000 for the quarter ended June 30, 2024, an increase of 24.7%. The increase in net operating revenues for the second quarter of 2025 compared to the second quarter of 2024 was due to an 9.6% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Management, Inc. (“White Oak”).
For the quarter ended June 30, 2025, the reported GAAP net income attributable to NHC was $23,722,000 compared to $26,844,000 for the same period in 2024. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended June 30, 2025 was $25,710,000 compared to $15,612,000 for the same period in 2024, an increase of 64.7% (*) . The GAAP diluted earnings per share were $1.52 and $1.73 for the quarters ending June 30, 2025 and 2024, respectively. Adjusted diluted earnings per share were $1.65 and $1.00 for the quarters ending June 30, 2025 and 2024, respectively (*) .
(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items. |
About NHC
As of August 1, 2025, NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,329 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 hospice agencies. NHC’s other services include Alzheimer’s and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com .
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. 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. All forward-looking statements represent NHC’s best judgment as of the date of this release.
| Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except share and per share amounts) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
| Revenues: | |||||||||||||||
| Net patient revenues | $ | 363,349 | $ | 279,918 | $ | 724,956 | $ | 565,741 | |||||||
| Other revenues | 11,561 | 11,295 | 23,651 | 22,648 | |||||||||||
| Government stimulus income | - | 9,445 | - | 9,445 | |||||||||||
| Net operating revenues and grant income | 374,910 | 300,658 | 748,607 | 597,834 | |||||||||||
| Costs and expenses: | |||||||||||||||
| Salaries, wages and benefits | 226,534 | 180,076 | 454,664 | 363,214 | |||||||||||
| Other operating | 91,943 | 78,154 | 184,400 | 155,583 | |||||||||||
| Facility rent | 11,328 | 10,570 | 22,693 | 20,918 | |||||||||||
| Depreciation and amortization | 11,015 | 9,338 | 21,993 | 19,924 | |||||||||||
| Total costs and expenses | 340,820 | 278,138 | 683,750 | 559,639 | |||||||||||
| Income from operations | 34,090 | 22,520 | 64,857 | 38,195 | |||||||||||
| Non-operating income | 5,132 | 4,956 | 9,211 | 10,641 | |||||||||||
| Interest expense | (1,993 | ) | - | (4,099 | ) | (46 | ) | ||||||||
| Unrealized gains/(losses) on marketable equity securities | (5,061 | ) | 9,124 | 5,921 | 23,523 | ||||||||||
| Income before income taxes | 32,168 | 36,600 | 75,890 | 72,313 | |||||||||||
| Income tax provision | (8,055 | ) | (9,494 | ) | (19,487 | ) | (18,956 | ) | |||||||
| Net income | 24,113 | 27,106 | 56,403 | 53,357 | |||||||||||
| Net income attributable to noncontrolling interest | (391 | ) | (262 | ) | (476 | ) | (300 | ) | |||||||
| Net income attributable to National HealthCare Corporation | $ | 23,722 | $ | 26,844 | $ | 55,927 | $ | 53,057 | |||||||
| Net income per common share | |||||||||||||||
| Basic | $ | 1.53 | $ | 1.74 | $ | 3.62 | $ | 3.45 | |||||||
| Diluted | $ | 1.52 | $ | 1.73 | $ | 3.59 | $ | 3.42 | |||||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 15,462,135 | 15,391,535 | 15,450,286 | 15,371,150 | |||||||||||
| Diluted | 15,599,638 | 15,555,612 | 15,587,783 | 15,530,624 | |||||||||||
| Dividends declared per common share | $ | 0.64 | $ | 0.61 | $ | 1.25 | $ | 1.20 | |||||||
| Balance Sheet Data | June 30 | December 31 | |||||||||||||
| (in thousands) | 2025 | 2024 | |||||||||||||
(unaudited) | |||||||||||||||
| Cash, cash equivalents and marketable securities | $ | 257,628 | $ | 216,185 | |||||||||||
| Restricted cash, cash equivalents and marketable securities | 169,340 | 163,795 | |||||||||||||
| Current assets | 463,227 | 424,408 | |||||||||||||
| Property and equipment, net | 676,619 | 684,289 | |||||||||||||
| Total assets | 1,562,220 | 1,524,429 | |||||||||||||
| Current liabilities, excluding current long-term debt | 261,245 | 227,297 | |||||||||||||
| Current and long-term debt | 110,000 | 137,000 | |||||||||||||
| NHC stockholders' equity | 1,021,905 | 980,161 |
| Selected Operating Statistics | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
| Skilled Nursing Per Diems: | |||||||||||||||
| Medicare | $ | 614.85 | $ | 577.71 | $ | 613.47 | $ | 579.81 | |||||||
| Managed Care | 486.17 | 447.96 | 489.30 | 459.48 | |||||||||||
| Medicaid | 286.43 | 264.49 | 284.07 | 264.88 | |||||||||||
| Private Pay and Other | 341.34 | 312.91 | 339.24 | 310.31 | |||||||||||
| Average Skilled Nursing Per Diem | $ | 361.42 | $ | 338.86 | $ | 360.78 | (1) | $ | 341.21 | (1) | |||||
| Skilled Nursing Patient Days: | |||||||||||||||
| Medicare | 83,615 | 74,602 | 169,869 | 155,758 | |||||||||||
| Managed Care | 83,015 | 62,957 | 166,661 | 128,388 | |||||||||||
| Medicaid | 368,687 | 279,504 | 732,329 | 561,325 | |||||||||||
| Private Pay and Other | 194,202 | 150,234 | 378,796 | 307,677 | |||||||||||
| Total Skilled Nursing Patient Days | 729,519 | 567,297 | 1,447,655 | (1) | 1,153,148 | (1) | |||||||||
| (1) NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the six months ended June 30, 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $275.64 and 20,267 patient days. | |||||||||||||||
| The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts): | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
| Net income attributable to National Healthcare Corporation | $ | 23,722 | $ | 26,844 | $ | 55,927 | $ | 53,057 | |||||||
| Non-GAAP adjustments | |||||||||||||||
| Unrealized (gains)/losses on marketable equity securities | 5,061 | (9,124 | ) | (5,921 | ) | (23,523 | ) | ||||||||
| Operating losses for newly-opened operations not at full capacity | - | 20 | - | 20 | |||||||||||
| Gain on sale of property and equipment | (3,606 | ) | - | (3,606 | ) | - | |||||||||
| Gain on sale of unconsolidated company | - | - | - | (1,024 | ) | ||||||||||
| Stock-based compensation expense | 1,232 | 1,176 | 2,260 | 1,969 | |||||||||||
| Acquisition-related expenses | - | 2,194 | - | 2,194 | |||||||||||
| Employee retention credit | - | (9,445 | ) | - | (9,445 | ) | |||||||||
| Income tax provision/(benefit) on non-GAAP adjustments | (699 | ) | 3,947 | 1,889 | 7,750 | ||||||||||
| Non-GAAP Net income | $ | 25,710 | $ | 15,612 | $ | 50,549 | $ | 30,998 | |||||||
| GAAP diluted earnings per share | $ | 1.52 | $ | 1.73 | $ | 3.59 | $ | 3.42 | |||||||
| Non-GAAP adjustments | |||||||||||||||
| Unrealized (gains)/losses on marketable equity securities | 0.32 | (0.59 | ) | (0.38 | ) | (1.51 | ) | ||||||||
| Gain on sale of property and equipment | (0.23 | ) | - | (0.23 | ) | - | |||||||||
| Gain on sale of unconsolidated company | - | - | - | (0.07 | ) | ||||||||||
| Stock-based compensation expense | 0.08 | 0.08 | 0.14 | 0.13 | |||||||||||
| Acquisition-related expenses | - | 0.14 | - | 0.14 | |||||||||||
| Employee retention credit | - | (0.61 | ) | - | (0.61 | ) | |||||||||
| Income tax provision/(benefit) on non-GAAP adjustments | (0.04 | ) | 0.25 | 0.12 | 0.50 | ||||||||||
| Non-GAAP diluted earnings per share | $ | 1.65 | $ | 1.00 | $ | 3.24 | $ | 2.00 | |||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250808690172/en/
Brian F. Kidd, SVP/CFO
Phone: (615) 890-2020
FAQ**
How has the August 2024 acquisition of White Oak Management, Inc. impacted National HealthCare Corporation NHC's revenue growth for the quarter ended June 30, 2025, contributing to the 24.7% increase in net operating revenues compared to 2024?
In light of the decrease in reported GAAP net income for National HealthCare Corporation NHC from $26.8 million in 20to $23.7 million in 2025, what are the primary factors driving this decline despite a significant increase in adjusted net income?
What strategies is National HealthCare Corporation NHC implementing to maintain or further improve its same-facility net operating revenues, which experienced a 9.6% year-over-year increase for the quarter ended June 30, 2025?
Given the fluctuations noted in the unrealized gains and losses in marketable equity securities, how does National HealthCare Corporation NHC plan to stabilize its financial performance moving forward, particularly in terms of non-GAAP financial metrics?
**MWN-AI FAQ is based on asking OpenAI questions about National HealthCare Corporation (NYSE: NHC).
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