National HealthCare Corporation principally operates long-term health carecenters and home health care programs. Their health care centers provide subacute skilled and intermediate nursing and rehabilitative care. National Healthcare Corp has a market cap of $523.4 million; its shares were traded at around $38.35 with a P/E ratio of 18.2 and P/S ratio of 0.8. The dividend yield of National Healthcare Corp stocks is 2.4%. National Healthcare Corp had an annual average earning growth of 2.3% over the past 5 years.
Highlight of Business Operations:Our investment in the Fund totaled $35,900,000 on December 7, 2007. Since that date, we have received cash distributions of $31,278,000, reported realized losses of $808,000, and reported losses to reduce the Fund balance to its net asset value of $1,796,000. Our investment in the Fund totaled $5,618,000 at March 31, 2009.
Potential Recognition of Deferred Income - During 1988, we sold the assets of eight long-term health care centers to National Health Corporation (ANational@), our administrative general partner at the time of the sale. The resulting profit of $15,745,000 was deferred. $10,000,000 of the deferred gain and related deferred income taxes of $4,000,000 was recognized as income in December 2007 with the collection of the $10,000,000 note from National. $3,745,000 of the deferred gain has been amortized into income on a straight-line basis over the 20-year management contract period. Additional deferred income of $2,000,000 will be reported when the Company no longer has an obligation to advance the $2,000,000 working capital loan which obligation was extended until January 20, 2018 with the extension of the management agreement with National to that date.
Other revenues decreased $574,000 or 3.5% in the three month 2009 period to $15,602,000 from $16,176,000 in the 2008 three month period. Decreases in other revenues include decreased collections of management and accounting services fees ($274,000), decreased dividends and other realized gains on securities due to lower dividend rates ($126,000), and decreased rental income ($573,000).
Total costs and expenses for the 2009 first quarter compared to the 2008 first quarter increased $6,123,000 or 4.2% to $153,067,000 from $146,989,000. Salaries, wages and benefits, the largest operating costs of this service company, increased $3,185,000 or 3.6% to $90,726,000 from $87,541,000. Other operating expenses increased $2,654,000 or 5.9% to $47,968,000 for the 2009 period compared to $45,314,000 in the 2008 period. Rent expense increased $50,000 to $7,968,000 compared to $7,918,000 in the 2008 period. Depreciation and amortization increased $246,000 or 4.1% to $6,243,000 from $5,997,000. Interest costs decreased $12,000 to $207,000.
Investing Activities - Cash used in investing activities totaled $4,448,000 for the three months ended March 31, 2009, as compared to $10,772,000 provided from investing activities for the three months ended March 31, 2008. Cash used for property and equipment additions was $9,456,000 for the three months ended March 31, 2009 and $4,910,000 in the comparable period in 2008. Investments in notes receivable totaled $11,000 in 2009 compared to $1,900,000 in 2008. Cash provided by net collections of notes receivable was $3,166,000 in 2009 compared to $4,207,000 in 2008. Collections of our investment in the cash fund in liquidation balance totaled $2,186,000 in the first three months of 2009 compared to $12,376,000 in 2008.
Net cash provided by financing activities totaled $11,620,000 in the three months ended March 31, 2009 compared to $4,337,000 net cash used for the same period in 2008. Cash used for payments of debt totaled $-0- and dividend payments to common and preferred shareholders totaled $5,291,000. In the prior year, cash used for payments of debt totaled $7,431,000, dividend payments to common and preferred shareholders totaled $4,506,000. Tax benefits from exercise of stock options provided cash of $3,499,000 in 2009 and $124,000 in 2008. In the current period, $13,091,000 cash was provided by the issuance of common stock compared to $194,000 in the same period last year.
Read the The complete Report