MURFREESBORO, Tenn. / Feb 17, 2023 / Business Wire / National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues and grant income for the year ended December 31, 2022 totaled $1,085,738,000 compared to $1,074,302,000 for the year ended December 31, 2021, an increase of 1.1%. The net operating revenues increase in 2022 was despite a reduction in government stimulus income of $51.9 million compared to 2021.

For the year ended December 31, 2022, the reported GAAP net income attributable to NHC was $22,445,000 compared to $138,590,000 for the 2021 year. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2022 was $37,323,000 compared to $62,645,000 for the 2021 year ^(*). The decrease in non-GAAP earnings for 2022 compared to 2021 was primarily due to the $51.9 million decrease of government stimulus income recorded. GAAP diluted earnings per share were $1.45 compared to $8.99 for the years ended December 31, 2022 and 2021, respectively. Adjusted diluted earnings per share were $2.42 compared to $4.06 for the years ended December 31, 2022 and 2021, respectively ^(*).

For the quarter ended December 31, 2022, the reported GAAP net income attributable to NHC was $6,353,000 compared to $15,788,000 for the same period in 2021. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2022 was $11,046,000 compared to $15,801,000 for the same period in 2021 ^(*). The decrease in non-GAAP earnings for the quarter ended December 31, 2022 compared to the fourth quarter of 2021 was primarily due to the $14.5 million decrease of government stimulus income recorded. The GAAP diluted earnings per share were $0.41 compared to $1.02 for the quarters ended December 31, 2022 and 2021, respectively. Adjusted diluted earnings per share were $0.72 and $1.02 for the quarters ended December 31, 2022 and 2021, respectively ^(*).

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

NHC affiliates operate for themselves and third parties 68 skilled nursing facilities with 8,726 beds. NHC affiliates also operate 23 assisted living communities with 1,181 units, five independent living communities with 475 units, three behavioral health hospitals, 35 homecare agencies, and 29 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.