NHC's Q2 Net Income Flat, EPS Dips Amid Stable Operations

TL;DR

NHC's Q2 numbers are a snooze-fest, showing flat growth and a slight EPS dip, so don't expect any fireworks here.

AI Summary

NATIONAL HEALTHCARE CORP (NHC) reported a net income of $15,499,173 for the six months ended June 30, 2025, compared to $15,450,003 for the same period in 2024, representing a slight increase of 0.32%. Diluted earnings per share for the six months ended June 30, 2025, were $0.61, a decrease from $0.64 in the prior year. For the quarter ended June 30, 2025, diluted EPS was $0.59, down from $0.61 in the comparable 2024 quarter. The company's common stock remained at a par value of $0.01 per share, with 45,000,000 shares authorized. Total common stock outstanding was 15,499,173 shares as of June 30, 2025. Retained earnings increased from $233,486 as of December 31, 2024, to $269,351 as of June 30, 2025, indicating profit retention. The company's strategic outlook appears stable, focusing on maintaining its current operational structure in skilled nursing care facilities.

Why It Matters

For investors, NHC's flat net income and slight EPS decline suggest a mature company in a stable but slow-growth sector, potentially appealing to income-focused investors due to its consistent, albeit modest, profitability. Employees and customers can expect continued stability in service delivery from this established skilled nursing care provider. In a competitive landscape, NHC's consistent performance, even without significant growth, indicates resilience, but also highlights the challenges of expanding margins in healthcare. The broader market may view this as typical for the skilled nursing industry, which often faces reimbursement pressures and demographic shifts.

Risk Assessment

Risk Level: low — The risk level is low due to the company's consistent net income and retained earnings growth, indicating financial stability. Net income for the six months ended June 30, 2025, was $15,499,173, a marginal increase from $15,450,003 in the prior year, demonstrating stable profitability. Retained earnings also grew from $233,486 at December 31, 2024, to $269,351 at June 30, 2025, suggesting prudent financial management.

Analyst Insight

Investors should consider NHC a stable, dividend-paying stock rather than a growth play. Monitor future filings for any significant changes in healthcare policy or reimbursement rates that could impact its skilled nursing care facilities.

Financial Highlights

net Income

$15.5M

eps

$0.61

Key Numbers

• $15.5M — Net Income (for six months ended June 30, 2025, a 0.32% increase from prior year)
• $0.61 — Diluted EPS (for six months ended June 30, 2025, a decrease from $0.64)
• $0.59 — Diluted EPS (for quarter ended June 30, 2025, a decrease from $0.61)
• $269K — Retained Earnings (as of June 30, 2025, an increase from $233K at year-end 2024)
• 45,000,000 — Authorized Shares (common stock, unchanged)
• 15,499,173 — Outstanding Shares (common stock as of June 30, 2025)

Key Players & Entities

• NATIONAL HEALTHCARE CORP (company) — filer of 10-Q
• NHC (company) — ticker symbol
• $15,499,173 (dollar_amount) — net income for six months ended June 30, 2025
• $15,450,003 (dollar_amount) — net income for six months ended June 30, 2024
• $0.61 (dollar_amount) — diluted EPS for six months ended June 30, 2025
• $0.64 (dollar_amount) — diluted EPS for six months ended June 30, 2024
• $0.59 (dollar_amount) — diluted EPS for quarter ended June 30, 2025
• $0.61 (dollar_amount) — diluted EPS for quarter ended June 30, 2024
• $269,351 (dollar_amount) — retained earnings as of June 30, 2025
• $233,486 (dollar_amount) — retained earnings as of December 31, 2024

FAQ

Industry Context

NATIONAL HEALTHCARE CORP operates within the skilled nursing care facilities sector. This industry is characterized by a significant reliance on government reimbursement programs (Medicare and Medicaid) and is subject to stringent regulatory oversight. Trends include an aging population driving demand, but also increasing labor costs and evolving care models.

Regulatory Implications

The skilled nursing care industry is heavily regulated by federal and state agencies, impacting operational standards, reimbursement rates, and compliance requirements. Changes in healthcare policy, such as those related to Medicare/Medicaid funding or quality reporting, can significantly affect NHC's financial performance and operational flexibility.

What Investors Should Do

1. Monitor changes in reimbursement rates for Medicare and Medicaid.
2. Analyze trends in operating expenses, particularly labor costs.
3. Evaluate the company's strategy for adapting to evolving healthcare delivery models.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing net income of $15,499,173 and $0.61 diluted EPS for the six months.
• 2024-06-30: End of Second Quarter 2024 — Comparative period for the six months ended June 30, 2025, with net income of $15,450,003 and $0.64 diluted EPS.
• 2025-08-07: 10-Q Filing Date — The date the current report was officially submitted to the SEC.

Glossary

Diluted EPS

Earnings per share calculated after accounting for all dilutive potential common shares, such as stock options or convertible securities. (Indicates the profitability on a per-share basis, reflecting potential dilution from outstanding securities.)

Retained Earnings

The cumulative amount of net income that a company has kept over time, rather than distributing to shareholders as dividends. (Shows the company's ability to generate profits and reinvest them back into the business.)

Common Stock

Represents ownership in a corporation and entitles the shareholder to voting rights and a claim on residual assets. (The fundamental equity instrument of the company, with details on authorized and outstanding shares provided.)

Par Value

A nominal value assigned to a share of stock by the company's charter, often a very small amount. (A legal accounting requirement, with NHC's common stock having a par value of $0.01.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, NATIONAL HEALTHCARE CORP reported a net income of $15.5 million, a marginal 0.32% increase from $15.45 million in the prior year. However, diluted EPS saw a decline, from $0.64 to $0.61 for the six-month period and from $0.61 to $0.59 for the second quarter. Retained earnings showed positive growth, increasing to $269,351 from $233,486 at year-end 2024, indicating profit retention.

Key Financial Figures

• $0.01 — exchange on which registered Common, $0.01 par value NHC NYSE American Indica

Filing Documents

• nhc20250630_10q.htm (10-Q) — 1863KB
• ex_844450.htm (EX-31.1) — 14KB
• ex_844451.htm (EX-31.2) — 14KB
• ex_844452.htm (EX-32) — 11KB
• nhc01.jpg (GRAPHIC) — 7KB
• 0001437749-25-025500.txt ( ) — 8674KB
• nhc-20250630.xsd (EX-101.SCH) — 65KB
• nhc-20250630_cal.xml (EX-101.CAL) — 65KB
• nhc-20250630_def.xml (EX-101.DEF) — 426KB
• nhc-20250630_lab.xml (EX-101.LAB) — 378KB
• nhc-20250630_pre.xml (EX-101.PRE) — 470KB
• nhc20250630_10q_htm.xml (XML) — 1634KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 40 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. NATIONAL HEALTHCARE CORPORATION Interim Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Revenues: Net patient revenues $ 363,349 $ 279,918 $ 724,956 $ 565,741 Other revenues 11,561 11,295 23,651 22,648 Government stimulus income - 9,445 - 9,445 Net operating revenues and grant income 374,910 300,658 748,607 597,834 Cost and expenses: Salaries, wages, and benefits 226,534 180,076 454,664 363,214 Other operating 91,943 78,154 184,400 155,583 Facility rent 11,328 10,570 22,693 20,918 Depreciation and amortization 11,015 9,338 21,993 19,924 Total costs and expenses 340,820 278,138 683,750 559,639 Income from operations 34,090 22,520 64,857 38,195 Other income (expense): Non–operating income 5,132 4,956 9,211 10,641 Interest expense ( 1,993 ) - ( 4,099 ) ( 46 ) Unrealized gains/(losses) on marketable equity securities ( 5,061 ) 9,124 5,921 23,523 Income before income taxes 32,168 36,600 75,890 72,313 Income tax provision ( 8,055 ) ( 9,494 ) ( 19,487 ) ( 18,956 ) Net income 24,113 27,106 56,403 53,357 Net income attributable to noncontrolling interest ( 391 ) ( 262 ) ( 476 ) ( 300 ) Net income attributable to National HealthCare Corporation $ 23,722 $ 26,844 $ 55,927 $ 53,057 Earnings per share attributable to National HealthCare Corporation stockholders: Basic $ 1.53 $ 1.74 $ 3.62 $ 3.45 Diluted $ 1.52 $ 1.73 $ 3.59 $ 3.42 Weighted average common shares outstanding: Basic 15,462,135 15,391,535 15,450,286 15,371,150 Diluted 15,599,638 15,555,612 15,587,783 15,530,624 Dividends declared per common share $ 0.64 $ 0.61 $ 1.25 $ 1.20 The accompanying notes to interim condensed consolidated financial statements are an integral part of these consolidated statements. 3 Table of Contents NATIONAL HEALTHCARE CORPORATION

View Full Filing

View this 10-Q filing on SEC EDGAR