The financial report for National Healthcare Corporation (NHC) shows a decrease in total assets, total liabilities, and total equity for the quarter ending March 31, 2024. The company’s total assets decreased by $45,000,000, total liabilities decreased by $45,000,000, and total equity decreased by $45,000,000. The company’s total revenue increased by $15,505,069, while total expenses increased by $15,390,072, resulting in a net income of $15,505,069. The company’s cash and cash equivalents increased by $606,000, and their accounts receivable increased by $3,939,724. The company’s total liabilities increased by $16,000,000, while their total equity decreased by $16,000,000. The company’s total assets increased by $45,000,000, while their total liabilities increased by $45,000,000. The company’s total assets increased by $45,000,000, while their total equity increased by $45,000,000.
Company Overview
National HealthCare Corporation (NHC) provides healthcare services across the post-acute care continuum, including skilled nursing, assisted living, home care, and hospice care. In the first quarter of 2024, NHC reported strong financial results:
The improved financial performance was driven by higher occupancy rates in skilled nursing and assisted living facilities, per diem rate increases from government payors, and lower agency nurse staffing costs.
Revenue Analysis
NHC’s total revenue for the first quarter of 2024 was $297 million, up 10.2% from $270 million in the same period last year. This revenue growth came from:
Profitability
NHC’s net income in the first quarter of 2024 jumped 107% to $26.2 million, compared to $11.7 million in the first quarter of 2023. Excluding one-time gains, adjusted net income increased 25% year-over-year to $15 million.
Financial Metric | Q1 2024 | Q1 2023 | Change |
---|---|---|---|
Net Income | $26.2 million | $11.7 million | +107% |
Adjusted Net Income | $15 million | $12.1 million | +25% |
This profitability improvement was driven mostly by lower agency nurse staffing costs, which fell 51% from the previous year. Other factors included higher occupancy and per diem rate increases.
Expenses
NHC’s total expenses increased 8.5% year-over-year in the first quarter of 2024, reaching $281 million. Key expense changes:
The company continues to face inflationary pressures and labor shortages, leading to wage increases. However, reduction in agency staffing helped offset some of these cost increases.
Cash Flows
Cash Flow Metric | Q1 2024 | Q1 2023 | Change |
---|---|---|---|
Operating Cash Flow | $9.6 million | $13.9 million | -30.4% |
Investing Cash Flow | -$2.4 million | -$1.4 million | -69.2% |
Financing Cash Flow | -$12.1 million | -$12.6 million | +4.4% |
NHC generated $9.6 million in operating cash flow, down 30% from last year. This was largely due to a temporary increase in patient accounts receivable caused by a cyber attack on a claims processing intermediary. Over time, management expects accounts receivable and operating cash flow to return to normal levels.
Outlook
NHC expects the positive trends from the first quarter of 2024 to continue going forward. The company is well-positioned to meet short-term and long-term liquidity needs through existing cash balances, marketable securities, operating cash flow, and availability of its unencumbered real estate assets. Profitability is projected to keep improving as long as occupancy rates remain high, per diem rates increase, and agency staffing costs decline. However, inflationary pressures, potential reimbursement changes, and labor shortages remain risks to monitor closely.