NHC Reports Year End Earnings

MURFREESBORO, Tenn.--(BUSINESS WIRE)--National HealthCare Corporation (NYSE MKT: NHC)(NYSE MKT: NHC.PRA), the nation's oldest publicly traded long-term health care company, today announced net income available to common shareholders of $49,286,000 or $3.56 per share basic for the year ended December 31, 2012, compared to $55,401,000 or $4.02 per share basic for the year ended December 31, 2011, a decrease of 11.0%. Annual operating revenues in 2012 decreased 1.6% from $773,537,000 to $761,262,000.

For comparative purposes, operating expenses for the 2011 year included a favorable result within our accrued risk reserves of $10,500,000 (approximately $6,825,000 after income taxes or $0.50 per common share basic), thus lowering the 2011 expense. Excluding this adjustment, the year ended December 31, 2012 would have reflected an increase of 4.5% in income before taxes and an increase of 1.5% in net income available to common shareholders (after taxes) compared to 2011.

Fourth quarter of 2012 net income available to common shareholders was $12,266,000 or 88 cents per basic share, compared to $12,358,000 or 89 cents per basic share in the fourth quarter of 2011, a decrease of 0.7%. Operating revenues for the fourth quarter of 2012 increased 0.7% from $192,742,000 to $194,043,000.

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, 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.

About NHC

NHC affiliates operate for themselves and third parties 75 long-term health care centers with 9,460 beds. NHC affiliates also operate 37 homecare programs, six independent living centers and 17 assisted living communities. NHC’s other services include Alzheimer’s 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.

NHC Reports Year End Earnings
Consolidated Statements of Income
(in thousands, except share and per share amounts)
	Three Months Ended						Twelve Months Ended
	December 31						December 31
Revenues:	2012			2011			2012			2011
Net patient revenues	$	180,175		$	178,958		$	705,386		$	715,489
Other revenues		13,868			13,784			55,876			58,048
Net operating revenues		194,043			192,742			761,262			773,537
Costs and Expenses:
Salaries, wages and benefits		108,906			108,247			426,934			428,672
Other operating		49,420			50,355			198,691			198,439
Facility rent		9,848			9,992			39,355			39,736
Depreciation and amortization		7,624			7,557			29,792			28,901
Interest		110			110			455			443
Total costs and expenses		175,908			176,261			695,227			696,191
Income Before Non-Operating Income		18,135			16,481			66,035			77,346
Non-Operating Income		6,699			5,677			25,245			20,533
Income Before Income Taxes		24,834			22,158			91,280			97,879
Income Tax Provision		(10,400	)		(7,632	)		(33,323	)		(33,807	)
Net Income		14,434			14,526			57,957			64,072
Dividends to Preferred Stockholders		(2,168	)		(2,168	)		(8,671	)		(8,671	)
Net Income Available to Common Stockholders	$	12,266		$	12,358		$	49,286		$	55,401
Earnings Per Common Share
Basic	$	0.88		$	0.89		$	3.56		$	4.02
Diluted	$	0.87		$	0.88		$	3.49		$	3.90
Weighted average common shares outstanding
Basic		13,872,472			13,811,852			13,852,709			13,774,628
Diluted		14,034,532			16,442,767			16,598,816			16,414,023
Balance Sheet Data
(in thousands)	Dec. 31			Dec. 31
	2012			2011
Cash and marketable securities	$	173,951		$	146,059
Restricted cash and marketable securities		146,770			134,212
Current assets		414,979			368,198
Property and equipment, net		420,907			429,651
Total assets		920,181			870,424
Current liabilities		226,495			220,659
Long-term debt		10,000			10,000
Stockholders' equity		659,672			611,736

NHC Reports Year End Earnings
Selected Operating Statistics
	Three Months Ended				Twelve Months Ended
	December 31				December 31
	2012		2011		2012		2011
Per Diems:
Medicare	$	434.47	$	427.45	$	430.13	$	452.32
Managed Care	$	408.76	$	400.80	$	408.22	$	415.03
Medicaid	$	165.68	$	158.31	$	159.65	$	157.48
Private Pay and Other	$	192.95	$	183.49	$	192.42	$	185.96
Patient Days:
Medicare		118,006		115,000		478,767		466,325
Managed Care		33,387		27,899		124,801		106,489
Medicaid		270,200		287,798		1,088,944		1,139,880
Private Pay and Other		151,004		153,439		599,966		606,975
		572,597		584,136		2,292,478		2,319,669
Average Per Diem	$	242.44	$	229.49	$	238.25	$	236.03