National Healthcare Corp. has a market cap of $564.4 million; its shares were traded at around $40.8 with a P/E ratio of 12.9 and P/S ratio of 0.8. The dividend yield of National Healthcare Corp. stocks is 3%. National Healthcare Corp. had an annual average earning growth of 5.1% over the past 10 years. GuruFocus rated National Healthcare Corp. the business predictability rank of 4-star.
Highlight of Business Operations:Total costs and expenses for the 2011 second quarter compared to the 2010 second quarter increased $11,439,000 or 7.0% to $173,743,000 from $162,304,000. Salaries, wages and benefits, the largest operating costs of this service company, increased $7,113,000 or 7.3% to $104,793,000 from $97,680,000. Other operating expenses
increased $3,530,000 or 7.3% to $51,888,000 for the 2011 period compared to $48,358,000 for the 2010 period. Facility rent expense increased $422,000 or 5.2% to $9,879,000. Depreciation and amortization increased to 6.2% to $7,075,000.
Total costs and expenses for the 2011 six months compared to the 2010 period increased $17,421,000 or 5.4% to $340,810,000 from $323,389,000. Salaries, wages and benefits, the largest operating costs of this service company, increased $19,799,000 or 10.2% to $213,555,000 from $193,756,000. Other operating expenses decreased $4,084,000 or 4.2% to $93,277,000 for the 2011 period compared to $97,361,000 for the 2010 period. Rent expense increased $822,000 or 4.3% to $19,744,000. Depreciation and amortization increased to 7.2% to $14,037,000.
Net cash provided by operating activities for the six months ended June 30, 2011 was $27,158,000 as compared to $19,565,000 in the same period last year. Cash provided by operating activities consisted of net income of $32,335,000, adjustments for non-cash items of $14,535,000, and $19,712,000 used for working capital. Cash used for working capital primarily consisted of an increase in restricted cash and cash equivalents of $3,438,000, a decrease in accounts receivable of $9,448,000, a decrease in accrued payroll of $14,258,000, and a decrease in accrued risk reserves of $12,817,000.
Cash used in investing activities totaled $13,473,000 and $25,743,000 for the six months ended June 30, 2011 and 2010, respectively. Cash used for property and equipment additions was $13,352,000 for the six months ended June 30, 2011 and $11,665,000 in the comparable period in 2010. For the 2010 six-month period, cash in the amount of $14,342,000 was used in the May 1, 2010 acquisition of three homecare programs in South Carolina. Cash provided by net collections of notes receivable was $1,139,000 in 2011 compared to $759,000 in 2010. Purchases and sales of restricted marketable securities resulted in a net use of cash of $1,260,000 for the 2011 period compared to $495,000 for the 2010 period.
Net cash used in financing activities totaled $4,832,000 for the six months ended June 30, 2011 compared to $10,281,000 in the same period in 2010. Cash used for dividend payments to common and preferred stockholders totaled $12,004,000 in the current year period. In the prior period, cash used for dividend payments to common and preferred stockholders totaled $11,468,000. In the current period, $7,152,000 of cash was provided by the issuance of common stock. Cash of $1,009,000 was provided by the issuance of common stock in the same period last year. Tax benefits from exercise of stock options provided cash of $120,000 in 2011 and $189,000 for the same period in 2010.
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