NHC · National HealthCare Corporation

National HealthCare Corporation's first quarter 2026 results demonstrated solid operational performance, with net operating revenues reaching $381.8 million, up 2.2% from $373.7 million in the prior year quarter, primarily driven by higher net patient revenues of $369.8 million versus $361.6 million. Income from operations improved to $32.3 million from $30.8 million, reflecting better cost management as salaries, wages and benefits increased modestly to $235.1 million while other operating expenses declined slightly to $91.2 million. The company reported GAAP net income attributable to NHC of $35.9 million, or $2.27 diluted EPS, compared to $32.2 million and $2.07 in Q1 2025. Adjusted net income, excluding unrealized gains on marketable equity securities of $9.1 million and stock-based compensation, rose more sharply by 21.1% to $30.1 million, with adjusted diluted EPS at $1.91 versus $1.59. Non-operating income contributed $3.8 million, and interest expense fell significantly to $0.3 million from $2.1 million, aiding pre-tax income growth to $44.8 million. Balance sheet strength is evident with no current or long-term debt as of March 31, 2026, up from $40 million at year-end, cash and equivalents at $258.4 million, and stockholders' equity at $1.09 billion. Skilled nursing per diems improved across Medicare ($630 vs. $612), managed care ($507 vs. $492), Medicaid ($292 vs. $282), and private pay ($350 vs. $337), with total patient days slightly up to 724,456. The company operates 80 skilled nursing facilities with 10,323 beds and expanded services including assisted living and hospice. Dividends increased to $0.64 per share from $0.61, signaling confidence in cash generation. No forward guidance was provided in the release.