National HealthCare (NHC) Q3 2024 earnings summary

Executive summary

• Net operating revenues for Q3 2024 increased 17.9% year-over-year, driven by higher per diem rates and the White Oak Senior Living acquisition.

• GAAP net income attributable to stockholders was $42.8M for Q3 2024, up from $10.4M in Q3 2023; adjusted net income was $19.9M, up from $13.3M.

• The White Oak acquisition expanded operations into North Carolina and contributed $37.3M in net patient revenues for the quarter.

• Skilled nursing facility census averaged 88.3% for Q3 2024, up from 88.1% a year ago.

Financial highlights

• Q3 2024 net operating revenues: $340.2M (Q3 2023: $288.5M); nine months ended September 30, 2024: $938.0M (2023: $840.6M).

• Q3 2024 net income attributable to stockholders: $42.8M (Q3 2023: $10.4M); nine months: $95.8M (2023: $38.4M).

• Q3 2024 diluted EPS: $2.73 (Q3 2023: $0.68); nine months: $6.15 (2023: $2.50).

• Q3 2024 adjusted net income (non-GAAP): $19.9M; nine months: $50.9M.

• Q3 2024 net unrealized gains on marketable equity securities: $32.8M; nine months: $56.3M.

Outlook and guidance

• Management expects continued growth from the White Oak acquisition and ongoing per diem rate increases.

• Short-term liquidity is supported by $84.8M in cash, $164.8M in marketable equity securities, and a $50M line of credit.

• Long-term liquidity is expected to be met through operating cash flows and available assets.