National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended March 31, 2025 totaled $373,697,000 compared to $297,176,000 for the quarter ended March 31, 2024, an increase of 25.7%. The increase in net operating revenues for the first quarter of 2025 compared to the first quarter of 2024 was due to an 8.5% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Management, Inc. ("White Oak"). The White Oak operations consist of 22 healthcare operations, which include 15 skilled nursing facilities, two assisted living facilities, four independent living facilities, and a long-term care pharmacy.

For the quarter ended March 31, 2025, the reported GAAP net income attributable to NHC was $32,205,000 compared to $26,213,000 for the same period in 2024. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended March 31, 2025 was $24,838,000 compared to $15,386,000 for the same period in 2024, an increase of 61.4% ^(*). The GAAP diluted earnings per share were $2.07 and $1.69 for the quarters ending March 31, 2025 and 2024, respectively. Adjusted diluted earnings per share were $1.59 and $0.99 for the quarters ending March 31, 2025 and 2024, respectively ^(*).

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,329 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 hospice agencies. NHC's other services include Alzheimer's and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com.

Non-GAAP Financial Presentation

The Company is providing certain non-GAAP financial measures as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. Therefore, the Company believes this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q, and 10-K. All forward-looking statements represent NHC's best judgment as of the date of this release.

Consolidated Statements of Operations
(in thousands, except share and per share amounts)
	Three Months Ended
	March 31
		2025			2024
	(unaudited)
Revenues:
Net patient revenues	$	361,607		$	285,823
Other revenues		12,090			11,353
Net operating revenues		373,697			297,176

Costs and expenses:
Salaries, wages and benefits		228,130			183,138
Other operating		92,457			77,429
Facility rent		11,365			10,348
Depreciation and amortization		10,978			10,586
Total costs and expenses		342,930			281,501

Income from operations		30,767			15,675

Non-operating income		4,079			5,685
Interest expense		(2,106	)		(46	)
Unrealized gains on marketable equity securities		10,982			14,399

Income before income taxes		43,722			35,713
Income tax provision		(11,432	)		(9,462	)
Net income		32,290			26,251

Net income attributable to noncontrolling interest		(85	)		(38	)

Net income attributable to National HealthCare Corporation	$	32,205		$	26,213

Net income per common share
Basic	$	2.09		$	1.71
Diluted	$	2.07		$	1.69

Weighted average common shares outstanding
Basic		15,438,306			15,350,240
Diluted		15,575,752			15,505,096

Dividends declared per common share	$	0.61		$	0.59


Balance Sheet Data	March 31			December 31
(in thousands)		2025			2024
	(unaudited)

Cash, cash equivalents and marketable securities	$	243,171		$	216,185
Restricted cash, cash equivalents and marketable securities		167,639			163,795
Current assets		455,204			424,408
Property and equipment, net		679,448			684,289
Total assets		1,548,821			1,524,429
Current liabilities, excluding long-term debt due within one year		231,725			227,297
Current and long-term debt		134,000			137,000
NHC stockholders' equity		1,004,895			980,161

Selected Operating Statistics
	Three Months Ended
	March 31
		2025			2024
	(unaudited)
Skilled Nursing Per Diems:
Medicare	$	612.13		$	581.75
Managed Care		492.40			470.56
Medicaid		281.67			265.27
Private Pay and Other		337.04			307.84
Average Skilled Nursing Per Diem	$	360.14		$	343.48		⁽¹⁾

Skilled Nursing Patient Days:
Medicare		86,254			81,156
Managed Care		83,646			65,431
Medicaid		363,642			281,821
Private Pay and Other		184,594			157,443
Total Skilled Nursing Patient Days		718,136			585,851		⁽¹⁾

⁽¹⁾ NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the first quarter of 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $275.64 and 20,267 patient days.


The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
	Three Months Ended
	March 31
		2025			2024
	(unaudited)

Net income attributable to National Healthcare Corporation	$	32,205		$	26,213
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(10,982	)		(14,399	)
Gain on sale of unconsolidated company		-			(1,025	)
Stock-based compensation expense		1,027			793
Income tax provision on non-GAAP adjustments		2,588			3,804
Non-GAAP Net income	$	24,838		$	15,386

GAAP diluted earnings per share	$	2.07		$	1.69
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(0.71	)		(0.93	)
Gain on sale of unconsolidated company		-			(0.07	)
Stock-based compensation expense		0.06			0.05
Income tax provision on non-GAAP adjustments		0.17			0.25
Non-GAAP diluted earnings per share	$	1.59		$	0.99

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Brian F. Kidd, SVP/CFO

(615) 890-2020

NHC Reports First Quarter 2025 Earnings