National HealthCare (NHC) Q1 2025 earnings summary

Executive summary

• Net operating revenues for Q1 2025 increased 25.7% year-over-year, driven by an 8.5% rise in same-facility revenues and the White Oak acquisition.

• Net income attributable to stockholders was $32.2 million, up from $26.2 million in Q1 2024.

• Adjusted net income (excluding unrealized gains and other non-GAAP items) rose 61.4% to $24.8 million.

• Skilled nursing facility census averaged 89.3%, up from 88.5% a year ago.

Financial highlights

• Net patient revenues grew 26.5% to $361.6 million; other revenues increased 6.5% to $12.1 million.

• Total costs and expenses rose 21.8% to $342.9 million, with salaries, wages, and benefits up 24.6%.

• GAAP diluted EPS was $2.07, up from $1.69; non-GAAP diluted EPS was $1.59, up from $0.99.

• Operating cash flow was $39.3 million, a 307% increase year-over-year.

Outlook and guidance

• CMS finalized a 4.2% Medicare payment increase for SNFs in FY2025 and proposed a 2.8% increase for FY2026.

• Medicaid per diem increased 6.2% year-over-year; state-level increases in Tennessee and Missouri expected to add $17.6 million in annual revenue.

• Management expects to meet short- and long-term liquidity needs through operating cash flow, cash on hand, and available credit.