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National Healthcare Corp Reports Operating Results (10-Q)

November 08, 2010 | About:
10qk

10qk

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National Healthcare Corp (NHC) filed Quarterly Report for the period ended 2010-09-30.

National Healthcare Corp has a market cap of $530.63 million; its shares were traded at around $38.51 with a P/E ratio of 15.04 and P/S ratio of 0.79. The dividend yield of National Healthcare Corp stocks is 2.91%. National Healthcare Corp had an annual average earning growth of 5.2% over the past 10 years. GuruFocus rated National Healthcare Corp the business predictability rank of 3.5-star.NHC is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of NHC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NHC.


Highlight of Business Operations:

Total costs and expenses for the 2010 third quarter compared to the 2009 third quarter increased $9,435,000 or 6.1% to $162,994,000 from $153,559,000. Salaries, wages and benefits, the largest operating costs of this service company, increased $6,697,000 or 7.3% to $98,531,000 from $91,834,000. Other operating expenses increased $2,097,000 or 4.4% to $49,296,000 for the 2010 period compared to $47,199,000 for the 2009 period. Rent expense increased $199,000 or 2.5% to $8,231,000 compared to $8,032,000 for the 2009 period. Depreciation and amortization increased $465,000 or 7.3% to $6,800,000 from $6,335,000. Interest costs decreased $23,000 to $136,000.

The income tax provision for the three months ended September 30, 2010 is $4,611,000 (an effective income tax rate of 23.4%). The income tax provision and effective tax rate for the three months ended September 30, 2010 were unfavorably impacted by adjustments to unrecognized tax benefits resulting in an increase in the provision of $651,000 or 3.3% of income before taxes. The income tax provision and effective tax rate for 2010 were favorably impacted by statute of limitations expirations resulting in a benefit to the provision of $3,721,000 composed of $2,502,000 tax and $1,219,000 of interest and penalties on permanent differences, or 18.9% of income before taxes in 2010. The income tax provision for the three months ended September 30, 2009 was $5,727,000 (an effective tax rate of 31.7%). The income tax provision and effective tax rate for the three months ended September 30, 2009 were favorably impacted by statute of limitation expirations and adjustments to unrecognized tax benefits resulting in a benefit to the provision of $1,553,000 composed of $941,000 tax and $612,000 of interest and penalties on permanent differences, or 8.6% of income before taxes in 2009.

Total costs and expenses for the 2010 nine-month period compared to the 2009 nine-month period increased $23,303,000 or 5.1% to $483,809,000 from $460,506,000. Salaries, wages and benefits, the largest operating costs of this service company, increased $17,852,000 or 6.5% to $292,287,000 from $274,435,000. Other operating expenses increased $4,069,000 or 2.9% to $146,657,000 for the 2010 period compared to $142,588,000 for the 2009 period. Rent expense increased $515,000 or 2.1% to $24,579,000 compared to $24,064,000 for the 2009 period. Depreciation and amortization increased $1,025,000 or 5.4% to $19,890,000 from $18,865,000. Interest costs decreased $158,000 to $396,000.

The income tax provision for the nine months ended September 30, 2010 is $18,745,000 (an effective tax rate of 33.4%). The income tax provision and effective tax rate for the nine months ended September 30, 2010 were unfavorably impacted by adjustments to unrecognized tax benefits resulting in an increase in the provision of $786,000 or 1.4% of income before taxes. The income tax provision and effective tax rate for 2010 were favorably impacted by statute of limitations expirations resulting in a benefit to the provision of $3,721,000 composed of $2,502,000 tax and $1,219,000 of interest and penalties on permanent differences, or 6.6% of income before taxes in 2010. The income tax provision for the nine months ended September 30, 2009 was $18,934,000 (an effective tax rate of 36.5%). The income tax provision and effective tax rate for the nine months ended 2009 were favorably impacted by statute of limitation expirations and adjustments to unrecognized tax benefits resulting in a benefit to the provision of $1,553,000 composed of $941,000 tax and $612,000 of interest and penalties on permanent differences, or 3.0% of income before taxes in 2009.

Investing Activities - Cash used in investing activities totaled $33,684,000 and $29,635,000 for the nine months ended September 30, 2010 and 2009, respectively. Cash used for property and equipment additions was $33,261,000 for the nine months ended September 30, 2010 and $32,070,000 in the comparable period in 2009. Cash provided by net collections of notes receivable was $1,026,000 in 2010 compared to $4,697,000 in 2009. The enhanced cash fund balance was liquidated in December 2009; therefore, there was no activity during the first nine months of 2010. There has been $48,018,000 funded from our restricted cash and cash equivalents into restricted marketable securities for the nine months ended September 30, 2010. Cash was used in purchasing restricted marketable securities of $85,484,000 and cash was provided from the sale of marketable securities of $36,017,000 for the first nine months of 2010.

Financing Activities - Net cash used in financing activities totaled $22,269,000 in the nine months ended September 30, 2010 compared to $1,203,000 net cash provided by financing activities in the same period in 2009. Cash used for dividend payments to common and preferred stockholders totaled $17,487,000. In the prior period, cash used for dividend payments to common and preferred stockholders totaled $16,455,000. In the current period, cash of $5,944,000 was used to repurchase 182,900 shares of common stock and $1,012,000 of cash was provided by the issuance of common stock. Cash of $14,179,000 was provided by the issuance of common stock in the same period last year. Tax benefits from exercise of stock options provided cash of $189,000 in 2010 and $3,602,000 in 2009.

Read the The complete Report

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10qk
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