On February 27, 2025, National Healthcare Corp (NHC, Financial) released its 8-K filing, detailing its financial performance for the year ended December 31, 2024. The company, a leading provider of long-term care facilities, reported a notable increase in net operating revenues and grant income, totaling $1.307 billion, a 14.5% rise from the previous year. This growth was primarily attributed to a 9.4% increase in same-facility net operating revenues and the acquisition of White Oak Manor, which added 22 healthcare operations to NHC's portfolio.
Company Overview
National Healthcare Corp (NHC, Financial) operates a diverse range of healthcare facilities, including skilled nursing, assisted living, independent living, and home care programs. The company also offers management, accounting, and insurance services to third-party healthcare operators. NHC's primary revenue source is its inpatient services, which include skilled nursing and rehabilitative care.
Performance and Challenges
For the year ended December 31, 2024, NHC reported a GAAP net income of $101.9 million, up from $66.8 million in 2023. Adjusted net income, excluding unrealized gains in marketable equity securities and other non-GAAP adjustments, was $76.9 million, a 39.9% increase from the previous year. This performance underscores the company's ability to enhance profitability through strategic acquisitions and operational improvements.
However, the company faced challenges in the fourth quarter, with GAAP net income dropping to $6.1 million from $28.4 million in the same period of 2023. This decline was influenced by unrealized losses on marketable equity securities. Despite this, adjusted net income for the quarter rose by 62.7% to $26 million, highlighting the underlying strength of NHC's core operations.
Financial Achievements
NHC's financial achievements are significant in the healthcare industry, where efficient management of facilities and strategic growth are crucial. The acquisition of White Oak Manor expanded NHC's footprint and contributed to revenue growth. The company's ability to increase same-facility revenues by 9.4% demonstrates effective operational management and market positioning.
Key Financial Metrics
Key metrics from NHC's financial statements include:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Operating Revenues | $1,307,382,000 | $1,141,544,000 |
| GAAP Net Income | $101,927,000 | $66,798,000 |
| Adjusted Net Income | $76,862,000 | $54,934,000 |
| GAAP Diluted EPS | $6.53 | $4.34 |
| Adjusted Diluted EPS | $4.93 | $3.55 |
These metrics are crucial for investors as they reflect the company's profitability and growth potential. The increase in adjusted EPS indicates improved operational efficiency and profitability, excluding market volatility impacts.
Analysis of Performance
NHC's performance in 2024 highlights its strategic focus on growth through acquisitions and enhancing existing facility operations. The acquisition of White Oak Manor significantly contributed to revenue growth, while the increase in same-facility revenues demonstrates effective management. Despite challenges in the fourth quarter, the company's adjusted earnings growth indicates resilience and strong operational fundamentals.
Overall, NHC's financial results for 2024 reflect a successful year of strategic expansion and operational improvement, positioning the company well for future growth in the healthcare sector.
Explore the complete 8-K earnings release (here) from National Healthcare Corp for further details.
