NHC Reports Third Quarter Earnings

  NHC Reports Third Quarter Earnings

Business Wire

MURFREESBORO, Tenn. -- October 31, 2012

National HealthCare Corporation (The "Company") (NYSE MKT: NHC) (NYSE
MKT:NHC.PRA), a publicly traded long-term health care company, today announced
net income available to common shareholders for the quarter ended September
30, 2012 of $15,066,000 compared to $15,044,000 for the quarter ended
September 30, 2011. Net income was $1.09 per common share basic for both the
quarters ended September 30, 2012 and 2011. Revenues for the three months
ended September 30, 2012 totaled $189,368,000 compared to $197,064,000 for the
three months ended September 30, 2011, a decrease of 3.9%.

The decline in revenues was due to decreases in Medicare per diem rates.
However, these decreases were partially offset by an improved patient mix. The
Company continues to implement cost saving measures in order to reduce total
costs and expenses.

Net income available to common shareholders for the nine month period ended
September 30, 2012 was $37,020,000 compared to $43,043,000, a decrease of
14.0%. Net income was $2.67 per common share basic for the nine month period
ended September 30, 2012 compared to $3.13 per common share basic for the same
period in 2011. For comparative purposes, operating expenses for the 2011 nine
month period included favorable results within our accrued risk reserves of
$10,500,000 (approximately $6,825,000 after income taxes or $0.50 per common
share basic). Excluding this adjustment, the nine months ended September 30,
2012 would have reflected an increase of 2.2% in net income available to
common shareholders compared to the same period in 2011.

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

At September 30, 2012, 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.

                                                                       
Interim Condensed
Consolidated Statements of
Income
(in thousands, except share
and per share amounts)
                                                                              
                           Three Months Ended                Nine Months Ended
                           September 30                      September 30
Revenues:                  2012             2011             2012             2011
  Net patient revenues     $ 175,361        $ 182,134        $ 525,211        $ 536,531
  Other                     14,007         14,930         42,008         44,264     
  revenues
        Net operating       189,368        197,064        567,219        580,795    
        revenues
                                                                              
Costs and Expenses:
  Salaries, wages and        106,844          106,870          318,028          320,425
  benefits
  Other operating            48,519           54,807           149,271          148,084
  Facility                   9,813            10,000           29,507           29,744
  rent
  Depreciation and           7,402            7,307            22,168           21,344
  amortization
  Interest                  119            136            345            333        
        Total costs and     172,697        179,120        519,319        519,930    
        expenses
                                                                              
Income Before                16,671           17,944           47,900           60,865
Non-Operating Income
Non-Operating Income        6,771          5,140          18,546         14,856     
                                                                              
Income Before Income         23,442           23,084           66,446           75,721
Taxes
Income Tax Provision        (6,209     )    (5,873     )    (22,923    )    (26,175    )
                                                                              
Net Income                   17,233           17,211           43,523           49,546
                                                                              
Dividends to Preferred      (2,167     )    (2,167     )    (6,503     )    (6,503     )
Stockholders
                                                                              
Net Income Available to    $ 15,066        $ 15,044        $ 37,020        $ 43,043     
Common Stockholders
                                                                              
Earnings Per Common
Share
  Basic                    $ 1.09           $ 1.09           $ 2.67           $ 3.13
  Diluted                  $ 1.04           $ 1.05           $ 2.63           $ 3.02
                                                                              
Weighted average common
shares outstanding
  Basic                      13,852,403       13,807,995       13,846,022       13,762,084
  Diluted                    16,605,285       16,444,749       16,578,535       16,404,305
                                                                              
                                                                              
           Balance Sheet
           Data
           (in             Sept. 30         Dec. 31
           thousands)
                           2012             2011
           Cash and
           marketable      $ 326,651        $ 280,271
           securities
           Current           397,937          362,186
           assets
           Property and
           equipment,        421,843          429,651
           net
           Total assets      906,093          865,672
           Current           218,769          215,907
           liabilities
           Long-term         10,000           10,000
           debt
           Stockholders'     652,502          611,736
           equity
                                                                              

                                                        
Selected Operating Statistics
                                                            
                      Three Months Ended      Nine Months Ended
                      September 30            September 30
                      2012        2011        2012          2011
Per Diems:
Medicare              $ 431.06    $ 471.80    $ 428.71      $ 460.45
Managed Care          $ 411.52    $ 424.22    $ 408.02      $ 419.64
Medicaid              $ 160.24    $ 156.56    $ 158.72      $ 157.41
Private Pay and Other $ 192.93    $ 188.00    $ 192.24      $ 187.66
                                                            
Patient Days:
Medicare                116,593     116,128     360,761       351,334
Managed Care            32,471      28,009      91,414        78,671
Medicaid                271,674     286,841     818,744       850,938
Private Pay and Other  153,217    153,259    448,962      454,701
                        573,955     584,237     1,719,881     1,735,644
                                                            
Average Per Diem      $ 238.20    $ 240.30    $ 237.36      $ 238.56
                                                              

Contact:

National HealthCare Corporation
Gerald Coggin, 615-890-2020
Sr. VP of Corporate Relations
 
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