Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001047335 | |
Entity Shell Company | false | |
Entity Registrant Name | NATIONAL HEALTHCARE CORP | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 001-13489 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2057472 | |
Entity Address, Address Line One | 100 E. Vine Street | |
Entity Address, City or Town | Murfreesboro | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37130 | |
City Area Code | 615 | |
Local Phone Number | 890–2020 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,318,790 | |
Title of 12(b) Security | Common, $0.1 par value | |
Trading Symbol | NHC | |
Security Exchange Name | NYSEAMER |
Interim Condensed Consolidated
Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||||
Net patient revenues | $ 235,264,000 | $ 230,654,000 | $ 471,375,000 | $ 462,346,000 | ||
Other revenues | 11,887,000 | 11,488,000 | 24,061,000 | 22,757,000 | ||
Net operating revenues | 247,151,000 | 242,142,000 | 495,436,000 | 485,103,000 | ||
Costs and expenses: | ||||||
Salaries, wages and benefits | 147,878,000 | 145,466,000 | 289,266,000 | 285,561,000 | ||
Other operating | 67,598,000 | 62,589,000 | 137,030,000 | 127,761,000 | ||
Facility rent | 10,197,000 | 10,272,000 | 20,435,000 | 20,501,000 | ||
Depreciation and amortization | 10,335,000 | 10,397,000 | 20,852,000 | 20,739,000 | ||
Interest | 954,000 | 1,253,000 | 1,880,000 | 2,493,000 | ||
Total costs and expenses | 236,962,000 | 229,977,000 | 469,463,000 | 457,055,000 | ||
Income from operations | 10,189,000 | 12,165,000 | 25,973,000 | 28,048,000 | ||
Other income: | ||||||
Non–operating income | 8,272,000 | 5,654,000 | 14,273,000 | 2,589,000 | ||
Unrealized gains (losses) on marketable equity securities | (54,000) | 12,448,000 | 6,784,000 | (3,069,000) | ||
Income before income taxes | 18,407,000 | 30,267,000 | 47,030,000 | 27,568,000 | ||
Income tax provision | (4,725,000) | (7,892,000) | (12,117,000) | (8,092,000) | ||
Net income | 13,682,000 | 22,375,000 | 34,913,000 | 19,476,000 | ||
Net loss attributable to noncontrolling interest | 29,000 | $ 38,000 | 86,000 | $ 108,000 | 67,000 | 194,000 |
Net income attributable to National HealthCare Corporation | $ 13,711,000 | $ 21,269,000 | $ 22,461,000 | $ (2,791,000) | $ 34,980,000 | $ 19,670,000 |
Earnings per share attributable to National HealthCare Corporation stockholders: | ||||||
Basic (in dollars per share) | $ 0.90 | $ 1.48 | $ 2.29 | $ 1.29 | ||
Diluted (in dollars per share) | $ 0.89 | $ 1.47 | $ 2.28 | $ 1.29 | ||
Basic (in shares) | 15,269,637 | 15,221,262 | 15,262,950 | 15,218,962 | ||
Diluted (in shares) | 15,352,702 | 15,228,305 | 15,338,520 | 15,224,958 | ||
Dividends declared per common share (in dollars per share) | $ 0.52 | $ 0.50 | $ 1.02 | $ 0.98 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 13,682,000 | $ 22,375,000 | $ 34,913,000 | $ 19,476,000 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on investments in restricted marketable debt securities | 2,969,000 | (794,000) | 6,194,000 | (3,592,000) |
Reclassification adjustment for realized gains on sale of securities | 0 | (14,000) | 0 | (25,000) |
Income tax benefit (expense) related to items of other comprehensive income | (624,000) | 169,000 | (1,301,000) | 759,000 |
Other comprehensive income (loss), net of tax | 2,345,000 | (639,000) | 4,893,000 | (2,858,000) |
Net loss attributable to noncontrolling interest | 29,000 | 86,000 | 67,000 | 194,000 |
Comprehensive income attributable to National HealthCare Corporation | $ 16,056,000 | $ 21,822,000 | $ 39,873,000 | $ 16,812,000 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 29,746,000 | $ 43,247,000 |
Restricted cash and cash equivalents, current portion | 34,436,000 | 9,967,000 |
Marketable equity securities | 147,007,000 | 140,223,000 |
Restricted marketable debt securities, current portion | 0 | 18,676,000 |
Accounts receivable | 97,448,000 | 97,274,000 |
Inventories | 7,317,000 | 7,470,000 |
Prepaid expenses and other assets | 4,192,000 | 3,863,000 |
Notes receivable, current portion | 1,431,000 | 1,289,000 |
Total current assets | 321,577,000 | 322,009,000 |
Property and Equipment: | ||
Property and equipment, at cost | 1,009,842,000 | 979,088,000 |
Accumulated depreciation and amortization | (465,256,000) | (444,438,000) |
Net property and equipment | 544,586,000 | 534,650,000 |
Other Assets: | ||
Restricted cash and cash equivalents, less current portion | 1,724,000 | 1,706,000 |
Restricted marketable securities, less current portion | 155,571,000 | 153,917,000 |
Deposits and other assets | 5,903,000 | 5,602,000 |
Operating lease right-of-use assets | 214,367,000 | 0 |
Goodwill | 20,995,000 | 20,995,000 |
Notes receivable, less current portion | 14,217,000 | 9,707,000 |
Investments in unconsolidated companies | 35,675,000 | 32,362,000 |
Total other assets | 448,452,000 | 224,289,000 |
Total assets | 1,314,615,000 | 1,080,948,000 |
Current Liabilities: | ||
Trade accounts payable | 15,737,000 | 19,759,000 |
Finance lease obligations, current portion | 4,043,000 | 3,924,000 |
Operating lease liabilities, current portion | 23,625,000 | 0 |
Accrued payroll | 56,691,000 | 67,618,000 |
Amounts due to third party payors | 16,799,000 | 16,108,000 |
Accrued risk reserves, current portion | 28,496,000 | 28,643,000 |
Other current liabilities | 18,330,000 | 14,249,000 |
Dividends payable | 7,966,000 | 7,623,000 |
Total current liabilities | 171,687,000 | 157,924,000 |
Long-term debt | 55,000,000 | 55,000,000 |
Finance lease obligations, less current portion | 17,077,000 | 19,128,000 |
Operating lease liabilities, less current portion | 190,742,000 | 0 |
Accrued risk reserves, less current portion | 68,795,000 | 67,381,000 |
Refundable entrance fees | 7,975,000 | 8,078,000 |
Obligation to provide future services | 2,172,000 | 2,172,000 |
Deferred income taxes | 21,145,000 | 18,550,000 |
Other noncurrent liabilities | 15,395,000 | 15,204,000 |
Deferred revenue | 4,380,000 | 3,054,000 |
Total liabilities | 554,368,000 | 346,491,000 |
Equity: | ||
Common stock, $.01 par value; 45,000,000 shares authorized; 15,318,790 and 15,255,002 shares, respectively, issued and outstanding | 153,000 | 153,000 |
Capital in excess of par value | 221,054,000 | 219,435,000 |
Retained earnings | 535,797,000 | 516,435,000 |
Accumulated other comprehensive income (loss) | 2,148,000 | (2,745,000) |
Total National HealthCare Corporation stockholders’ equity | 759,152,000 | 733,278,000 |
Noncontrolling interest | 1,095,000 | 1,179,000 |
Total equity | 760,247,000 | 734,457,000 |
Total liabilities and equity | $ 1,314,615,000 | $ 1,080,948,000 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 15,318,790 | 15,255,002 |
Common stock, shares outstanding (in shares) | 15,318,790 | 15,255,002 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 34,913,000 | $ 19,476,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,852,000 | 20,739,000 |
Equity in (earnings) losses of unconsolidated investments | (4,801,000) | 4,584,000 |
Distributions from unconsolidated investments | 2,609,000 | 3,741,000 |
Unrealized (gains) losses on marketable equity securities | (6,784,000) | 3,069,000 |
Gains on sale of restricted marketable debt securities | 0 | (25,000) |
Gain on acquisition of equity method investment | (1,975,000) | 0 |
Deferred income taxes | (1,294,000) | 2,376,000 |
Stock–based compensation | 1,108,000 | 1,177,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (174,000) | 4,537,000 |
Income tax receivable | 0 | 5,465,000 |
Inventories | 153,000 | (153,000) |
Prepaid expenses and other assets | (590,000) | (1,551,000) |
Trade accounts payable | (4,022,000) | 188,000 |
Accrued payroll | (10,927,000) | (11,414,000) |
Amounts due to third party payors | 691,000 | (171,000) |
Accrued risk reserves | 1,227,000 | 1,538,000 |
Other current liabilities | 4,081,000 | (1,386,000) |
Other noncurrent liabilities | 191,000 | 540,000 |
Deferred revenue | 1,326,000 | 1,395,000 |
Net cash provided by operating activities | 39,172,000 | 49,373,000 |
Cash Flows From Investing Activities: | ||
Additions to property and equipment | (13,989,000) | (15,456,000) |
Acquisition of equity method investment | (15,589,000) | 0 |
Investments in unconsolidated companies | (356,000) | 0 |
Investments in notes receivable | (5,312,000) | 0 |
Collections of notes receivable | 660,000 | 800,000 |
Purchase of restricted marketable debt securities | (6,887,000) | (6,545,000) |
Sale of restricted marketable debt securities | 30,103,000 | 4,399,000 |
Net cash used in investing activities | (11,370,000) | (16,802,000) |
Cash Flows From Financing Activities: | ||
Principal payments on debt | 0 | (15,000,000) |
Principal payments under finance lease obligations | (1,932,000) | (1,820,000) |
Dividends paid to common stockholders | (15,275,000) | (14,602,000) |
Distributions attributable to noncontrolling interest | (17,000) | 0 |
Issuance of common shares | 1,383,000 | 1,327,000 |
Repurchase of common shares | (872,000) | (867,000) |
Entrance fee refunds | (103,000) | (159,000) |
Net cash used in financing activities | (16,816,000) | (31,121,000) |
Net Increase in Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 10,986,000 | 1,450,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Beginning of Period | 54,920,000 | 67,421,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, End of Period | 65,906,000 | 68,871,000 |
Balance Sheet Classifications: | ||
Total Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 54,920,000 | $ 67,421,000 |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 15,212,133 | |||||
Balance at Dec. 31, 2017 | $ 152,000 | $ 215,659,000 | $ 419,423,000 | $ 67,504,000 | $ 694,000 | $ 703,432,000 |
Net income attributable to National HealthCare Corporation | 0 | 0 | (2,791,000) | 0 | 0 | (2,791,000) |
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | (108,000) | (108,000) |
Other comprehensive income (loss) | 0 | 0 | 0 | (2,219,000) | 0 | (2,219,000) |
Stock–based compensation | $ 0 | 428,000 | 0 | 0 | 0 | 428,000 |
Shares sold – options exercised (in shares) | 21,906 | |||||
Shares sold – options exercised | $ 0 | 1,067,000 | 0 | 0 | 0 | 1,067,000 |
Repurchase of common shares (in shares) | (14,506) | |||||
Repurchase of common shares | $ 0 | (867,000) | 0 | 0 | 0 | (867,000) |
Dividends declared to common stockholders | 0 | 0 | (7,305,000) | 0 | 0 | (7,305,000) |
Reclassification due to new accounting standards at Dec. 31, 2017 | $ 0 | 0 | 68,201,000 | (68,201,000) | 0 | 0 |
Balance (in shares) at Mar. 31, 2018 | 15,219,533 | |||||
Balance at Mar. 31, 2018 | $ 152,000 | 216,287,000 | 477,528,000 | (2,916,000) | 586,000 | 691,637,000 |
Balance (in shares) at Dec. 31, 2017 | 15,212,133 | |||||
Balance at Dec. 31, 2017 | $ 152,000 | 215,659,000 | 419,423,000 | 67,504,000 | 694,000 | 703,432,000 |
Net income attributable to National HealthCare Corporation | 19,670,000 | |||||
Net loss attributable to noncontrolling interest | (194,000) | |||||
Other comprehensive income (loss) | (2,858,000) | |||||
Reclassification due to new accounting standards at Dec. 31, 2017 | $ 0 | 0 | 68,201,000 | (68,201,000) | 0 | 0 |
Balance (in shares) at Jun. 30, 2018 | 15,225,654 | |||||
Balance at Jun. 30, 2018 | $ 152,000 | 217,296,000 | 492,377,000 | (3,555,000) | 500,000 | 706,770,000 |
Balance (in shares) at Dec. 31, 2017 | 15,212,133 | |||||
Balance at Dec. 31, 2017 | $ 152,000 | 215,659,000 | 419,423,000 | 67,504,000 | 694,000 | $ 703,432,000 |
Shares sold – options exercised (in shares) | 68,291 | |||||
Reclassification due to new accounting standards at Dec. 31, 2017 | $ 0 | 0 | 68,201,000 | (68,201,000) | 0 | $ 0 |
Balance (in shares) at Dec. 31, 2018 | 15,255,002 | |||||
Balance at Dec. 31, 2018 | $ 153,000 | 219,435,000 | 516,435,000 | (2,745,000) | 1,179,000 | 734,457,000 |
Balance (in shares) at Mar. 31, 2018 | 15,219,533 | |||||
Balance at Mar. 31, 2018 | $ 152,000 | 216,287,000 | 477,528,000 | (2,916,000) | 586,000 | 691,637,000 |
Net income attributable to National HealthCare Corporation | 0 | 0 | 22,461,000 | 0 | 0 | 22,461,000 |
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | (86,000) | (86,000) |
Other comprehensive income (loss) | 0 | 0 | 0 | (639,000) | 0 | (639,000) |
Stock–based compensation | $ 0 | 749,000 | 0 | 0 | 0 | 749,000 |
Shares sold – options exercised (in shares) | 6,121 | |||||
Shares sold – options exercised | $ 0 | 260,000 | 0 | 0 | 0 | 260,000 |
Dividends declared to common stockholders | $ 0 | 0 | (7,612,000) | 0 | 0 | (7,612,000) |
Balance (in shares) at Jun. 30, 2018 | 15,225,654 | |||||
Balance at Jun. 30, 2018 | $ 152,000 | 217,296,000 | 492,377,000 | (3,555,000) | 500,000 | 706,770,000 |
Balance (in shares) at Dec. 31, 2018 | 15,255,002 | |||||
Balance at Dec. 31, 2018 | $ 153,000 | 219,435,000 | 516,435,000 | (2,745,000) | 1,179,000 | 734,457,000 |
Net income attributable to National HealthCare Corporation | 0 | 0 | 21,269,000 | 0 | 0 | 21,269,000 |
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | (38,000) | (38,000) |
Other comprehensive income (loss) | 0 | 0 | 0 | 2,548,000 | 0 | 2,548,000 |
Stock–based compensation | $ 0 | 424,000 | 0 | 0 | 0 | 424,000 |
Shares sold – options exercised (in shares) | 59,384 | |||||
Shares sold – options exercised | $ 0 | 579,000 | 0 | 0 | 0 | 579,000 |
Repurchase of common shares (in shares) | (10,396) | |||||
Repurchase of common shares | $ 0 | (872,000) | 0 | 0 | 0 | (872,000) |
Dividends declared to common stockholders | $ 0 | 0 | (7,652,000) | 0 | 0 | (7,652,000) |
Balance (in shares) at Mar. 31, 2019 | 15,303,990 | |||||
Balance at Mar. 31, 2019 | $ 153,000 | 219,566,000 | 530,052,000 | (197,000) | 1,141,000 | 750,715,000 |
Balance (in shares) at Dec. 31, 2018 | 15,255,002 | |||||
Balance at Dec. 31, 2018 | $ 153,000 | 219,435,000 | 516,435,000 | (2,745,000) | 1,179,000 | 734,457,000 |
Net income attributable to National HealthCare Corporation | 34,980,000 | |||||
Net loss attributable to noncontrolling interest | (67,000) | |||||
Other comprehensive income (loss) | $ 4,893,000 | |||||
Shares sold – options exercised (in shares) | 332,852 | |||||
Balance (in shares) at Jun. 30, 2019 | 15,318,790 | |||||
Balance at Jun. 30, 2019 | $ 153,000 | 221,054,000 | 535,797,000 | 2,148,000 | 1,095,000 | $ 760,247,000 |
Balance (in shares) at Mar. 31, 2019 | 15,303,990 | |||||
Balance at Mar. 31, 2019 | $ 153,000 | 219,566,000 | 530,052,000 | (197,000) | 1,141,000 | 750,715,000 |
Net income attributable to National HealthCare Corporation | 0 | 0 | 13,711,000 | 0 | 0 | 13,711,000 |
Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | (29,000) | (29,000) |
Other comprehensive income (loss) | 0 | 0 | 0 | 2,345,000 | 0 | 2,345,000 |
Stock–based compensation | $ 0 | 684,000 | 0 | 0 | 0 | 684,000 |
Shares sold – options exercised (in shares) | 14,800 | |||||
Shares sold – options exercised | $ 0 | 804,000 | 0 | 0 | 0 | 804,000 |
Dividends declared to common stockholders | 0 | 0 | (7,966,000) | 0 | 0 | (7,966,000) |
Distributions attributable to noncontrolling interest | $ 0 | 0 | 0 | 0 | (17,000) | (17,000) |
Balance (in shares) at Jun. 30, 2019 | 15,318,790 | |||||
Balance at Jun. 30, 2019 | $ 153,000 | $ 221,054,000 | $ 535,797,000 | $ 2,148,000 | $ 1,095,000 | $ 760,247,000 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Common Stock [Member] | ||||
Dividends declared to common stockholders, per share (in dollars per share) | $ 0.52 | $ 0.50 | $ 0.50 | $ 0.48 |
Dividends declared to common stockholders, per share (in dollars per share) | $ 0.52 | $ 0.50 |
Note 1 - Description of Busines
Note 1 - Description of Business | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 National HealthCare Corporation (“NHC” or the “Company”) is a leading provider of senior health care services. As of June 30, 2019, |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 The listing below is not not December 31, 2018 December 31, 2018 www.nhccare.com Basis of Presentation The unaudited interim condensed consolidated financial statements to which these notes are attached include all normal, recurring adjustments which are necessary to fairly present the financial position, results of operations and cash flows of NHC. All significant intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements include the accounts of all entities controlled by NHC. The Company presents noncontrolling interest within the equity section of its consolidated balance sheets. The Company presents the amount of consolidated net income that is attributable to NHC and the noncontrolling interest in its consolidated statements of operations. We assume that users of these interim financial statements have read or have access to the audited December 31, 2018 consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations and that the adequacy of additional disclosure needed for a fair presentation, except in regard to material contingencies, may be determined in that context. Accordingly, footnotes and other disclosures which would substantially duplicate the disclosure contained in our most recent annual report to stockholders have been omitted. This interim financial information is not necessarily indicative of the results that may be expected for a full year for a variety of reasons. Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could cause our reported net income to vary significantly from period to period. Recently Adopted Accounting Guidance In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016 - 02, "Leases (Topic 842 )." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied either retrospectively to each prior reporting period presented in the financial statements or retrospectively at the beginning of the period of adoption. The Company adopted the standard as of January 1, 2019, electing the transition method that allows us to apply the standard as of the adoption date and record a cumulative adjustment in retained earnings, if applicable. We did not have a cumulative adjustment to retained earnings. The interim condensed consolidated financial statements for the period ending June 30, 2019, are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with our historical accounting policy. On June 20, 2018, the FASB issued ASU No. 2018 - 07, “Compensation – Stock Compensation (Topic 718 ): Improvements to Nonemployee Share-based Payment Accounting.” ASU No. 2018 - 07 simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees is aligned with the requirements for share-based payments granted to employees. On January 1, 2019, the Company early adopted the provisions of ASU No. 2018 - 07 and this standard did not have an impact on our consolidated financial statements. On August 28, 2018, the FASB issued ASU No. 2018 - 13, “Fair Value Measurement (Topic 820 ): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018 - 13 changes the fair value measurement disclosure requirements of Accounting Standards Codification (“ASC”) 820. Entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but they will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. On January 1, 2019, the Company early adopted the provisions of ASU No. 2018 - 13 and this standard did not have a material impact on our consolidated financial statements as we do not have any Level 3 investments. Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016 - 13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.” ASU No. 2016 - 13 adds to U.S GAAP an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact this standard will have on our policies and procedures and internal control framework. Net Patient Revenues and Accounts Receivable Net patient revenues are derived from services rendered to patients for skilled and intermediate nursing, rehabilitation therapy, assisted living and independent living, and home health care services. Net patient revenue is reported at the amount that reflects the consideration to which the Company expects to be entitled in exchange for providing patient services. These amounts are due from patients, governmental programs, and other third -party payors, and include variable consideration for retroactive revenue adjustments due to settlement of audits, reviews, and investigations. The Company recognizes revenue as its performance obligations are completed. Routine services are treated as a single performance obligation satisfied over time as services are rendered. These routine services represent a bundle of services that are not capable of being distinct. The performance obligations are satisfied over time as the patient simultaneously receives and consumes the benefits of the healthcare services provided. Additionally, there may be ancillary services which are not included in the daily rates for routine services, but instead are treated as separate performance obligations satisfied at a point in time when those services are rendered. The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third party payors. Contractual adjustments are based on contractual agreements and historical experience. The Company considers the patient's ability and intent to pay the amount of consideration upon admission. Subsequent changes resulting from a patient’s ability to pay are recorded as bad debt expense, which is included as a component of other operating expenses in the interim condensed consolidated statements of operations. For the three months and six months ended June 30, 2019, bad debt expense was and respectively. For the three months and six months ended June 30, 2018, bad debt expense was and respectively. As of June 30, 2019, and December 31, 2018, the Company has recorded allowance for doubtful accounts of and respectively, as our best estimate of probable losses inherent in the accounts receivable balance. Other Revenues Other revenues include revenues from the provision of insurance services, management and accounting services to other long–term care providers, and rental income. Our insurance revenues consist of premiums that are generally paid in advance and then amortized into income over the policy period. We charge for management services based on a percentage of net revenues. We charge for accounting services based on a monthly fee or a fixed fee per bed of the healthcare facility under contract. We record other revenues as the performance obligations are satisfied based on the terms of our contractual arrangements. Segment Reporting In accordance with the provisions of ASC 280, “Segment Reporting”, the Company is required to report financial and descriptive information about its reportable operating segments. The Company has reportable operating segments: ( 1 ) inpatient services, which includes the operation of skilled nursing facilities, assisted and independent living facilities, and one behavioral health hospital, and ( 2 ) homecare services. The Company also reports an “all other” category that includes revenues from rental income, management and accounting services fees, insurance services, and costs of the corporate office. See Note 6 for further disclosure of the Company’s operating segments. Other Operating Expenses Other operating expenses include the costs of care and services that we provide to the residents of our facilities and the costs of maintaining our facilities. Our primary patient care costs include drugs, medical supplies, purchased professional services, food, and professional liability insurance and licensing fees. The primary facility costs include utilities and property insurance. General and Administrative Costs With the Company being a healthcare provider, the majority of our expenses are "cost of revenue" items. Costs that could be classified as "general and administrative" by the Company would include its corporate office costs, excluding stock-based compensation, which were and for the three months and six months ended June 30, 2019, respectively. General and administrative costs were and for the three months and six months ended June 30, 2018, respectively. Property and Equipment Property and equipment are recorded at cost. Depreciation is provided by the straight-line method over the expected useful lives of the assets estimated as follows: buildings and improvements, - years and equipment and furniture, - years. Leasehold improvements are amortized over periods that do not exceed the non-cancelable respective lease terms using the straight-line method. Finance leases are recorded at cost. Finance leases are amortized in accordance with the provision codified within ASC 842, Leases . Amortization of finance lease assets is included in depreciation and amortization expense. Accrued Risk Reserves We are self–insured for risks related to health insurance and have wholly–owned limited purpose insurance companies that insure risks related to workers’ compensation and general and professional liability insurance claims. The accrued risk reserves include a liability for reported claims and estimates for incurred but unreported claims. Our policy is to engage an external, independent actuary to assist in estimating our exposure for claims obligations (for both asserted and unasserted claims). We reassess our accrued risk reserves on a quarterly basis. Professional liability remains an area of particular concern to us. The long-term care industry has seen an increase in personal injury/wrongful death claims based on alleged negligence by skilled nursing facilities and their employees in providing care to residents. As of June 30, 2019, we and/or our managed centers are defendants in such claims. It remains possible that those pending matters plus potential unasserted claims could exceed our reserves, which could have a material adverse effect on our consolidated financial position, results of operations and cash flows. It is also possible that future events could cause us to make significant adjustments or revisions to these reserve estimates and cause our reported net income to vary significantly from period to period. We are principally self-insured for incidents occurring in all centers owned or leased by us. The coverages include both primary policies and excess policies. In all years, settlements, if any, in excess of available insurance policy limits and our own reserves would be expensed by us. Continuing Care Contracts and Refundable Entrance Fee We have one continuing care retirement center (“CCRC”) within our operations. Residents at this retirement center may enter into continuing care contracts with us. The contracts provide that 10% of the resident entry fee becomes non-refundable upon occupancy, and the remaining refundable portion of the entry fee is calculated using the lessor of the price at which the apartment is re-assigned or 90% of the original entry fee, plus 40% of any appreciation if the apartment exceeds the original resident’s entry fee. Non-refundable fees are included as a component of the transaction price and are amortized into revenue over the actuarily determined remaining life of the resident, which is the expected period of occupancy by the resident. We pay the refundable portion of our entry fees to residents when they relocate from our community and the apartment is re-occupied. Refundable entrance fees are not included as part of the transaction price and are classified as non-current liabilities in our consolidated balance sheets. As of June 30, 2019, and December 31, 2018, we have recorded a refundable entrance fee in the amount of $7,975,000 and $8,078,000, respectively. Obligation to Provide Future Services We annually estimate the present value of the cost of future services and the use of facilities to be provided to the current CCRC residents and compare that amount with the balance of non-refundable deferred revenue from entrance fees received. If the present value of the cost of future services exceeds the related anticipated revenues, a liability is recorded (obligation to provide future services) with a corresponding charge to income. As of June 30, 2019, and December 31, 2018, we have recorded a future service obligation in the amount of Other Noncurrent Liabilities Other noncurrent liabilities include reserves primarily related to various uncertain income tax positions. Deferred Revenue Deferred revenue includes the deferred gain on the sale of assets to National Health Corporation (“National”), the non-refundable portion ( 10% ) of CCRC entrance fees being amortized over the remaining life expectancies of the residents, and premiums received within our workers’ compensation and professional liability companies in which the performance obligations have not been satisfied. Noncontrolling Interest The noncontrolling interest in a subsidiary is presented within total equity in the Company's interim condensed consolidated balance sheets. The Company presents the noncontrolling interest and the amount of consolidated net income attributable to NHC in its interim condensed consolidated statements of operations. The Company’s earnings per share is calculated based on net income attributable to NHC’s stockholders. The carrying amount of the noncontrolling interest is adjusted based on an allocation of subsidiary earnings based on ownership interest. Variable Interest Entities We have equity interests in unconsolidated limited liability companies that operate various post-acute and senior healthcare businesses. We analyze our investments in these limited liability companies to determine if the company is considered a variable interest entity (“VIE”) and would require consolidation. To the extent that we own interests in a VIE and we (i) are the sole entity that has the power to direct the activities of the VIE and (ii) have the obligation or rights to absorb the VIE's losses or receive its benefits, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary. The Company's maximum exposure to losses in its investments in unconsolidated VIEs cannot be quantified and may or may not be limited to its investment in the unconsolidated VIE. The investments in unconsolidated VIEs are classified as “investments in limited liability companies” in the consolidated balance sheets. |
Note 3 - Net Patient Revenues
Note 3 - Net Patient Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 3 The Company disaggregates revenue from contracts with customers by service type and by payor. Revenue by Service Type The Company’s net patient services can generally be classified into the following two 1 2 Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2019 2018 2019 2018 Net patient revenues: Inpatient services $ 220,887 $ 215,617 $ 442,521 $ 431,968 Homecare 14,377 15,037 28,854 30,378 Total net patient revenue $ 235,264 $ 230,654 $ 471,375 $ 462,346 For inpatient services, revenue is recognized on a daily basis as each day represents a separate contract and performance obligation. For homecare, revenue is recognized when services are provided based on the number of days of service rendered in the episode or on a per-visit basis. Typically, patients and third As our performance obligations relate to contracts with a duration of one not no one not Revenue by Payor Certain groups of patients receive funds to pay the cost of their care from a common source. The following table sets forth sources of net patient revenues for the periods indicated: Three Months Ended June 30 Six Months Ended June 30 Source 2019 2018 2019 2018 Medicare 33 % 35 % 34 % 36 % Managed Care 11 % 12 % 11 % 12 % Medicaid 29 % 26 % 28 % 26 % Private Pay and Other 27 % 27 % 27 % 26 % Total 100 % 100 % 100 % 100 % Medicare covers skilled nursing services for beneficiaries who require nursing care and/or rehabilitation services following a hospitalization of at least three For homecare services, Medicare pays based on the acuity level of the patient for each episode of care. An episode of care is defined as a length of care up to 60 60% not Medicaid is operated by individual states with the financial participation of the federal government. The states in which we operate currently use prospective cost–based reimbursement systems. Under cost–based reimbursement systems, the skilled nursing facility is reimbursed for the reasonable direct and indirect allowable costs it incurred in a base year in providing routine resident care services as defined by the program. Private pay, managed care, and other payment sources include commercial insurance, individual patient funds, managed care plans and the Veterans Administration. Private paying patients, private insurance carriers and the Veterans Administration generally pay based on the healthcare center's charges or specifically negotiated contracts. For private pay patients in skilled nursing, assisted living and independent living facilities, the Company bills for room and board charges, with the remittance being due on receipt of the statement and generally by the 10th Certain managed care payors for homecare services pay on a per-visit basis. This non-episodic based revenue is recorded on an accrual basis based upon the date of services at amounts equal to its established or estimated per-visit rates. Third Party Payors Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. Noncompliance with such laws and regulations can be subject to regulatory actions including fines, penalties, and exclusion from the Medicare and Medicaid programs. We believe that we are following all applicable laws and regulations. Medicare and Medicaid program revenues, as well as certain Managed Care program revenues, are subject to audit and retroactive adjustment by government representatives or their agents. The Medicare PPS methodology requires that patients be assigned to Resource Utilization Groups ("RUGs") based on the acuity level of the patient to determine the amount paid to us for patient services. The assignment of patients to the various RUG categories is subject to post–payment review by Medicare intermediaries or their agents. Settlements with third not no not June 30, 2019 December 31, 2018, |
Note 4 - Other Revenues
Note 4 - Other Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Other Revenues [Text Block] | Note 4 Other revenues are outlined in the table below. Revenues from insurance services include premiums for workers’ compensation and professional liability insurance policies that our wholly owned insurance subsidiaries have written for certain healthcare operators to which we provide management or accounting services. Revenues from management and accounting services include fees provided to manage and provide accounting services to other healthcare operators. Revenues from rental income include health care real estate properties owned by us and leased to third Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2019 2018 2019 2018 Insurance services $ 1,615 $ 1,955 $ 3,139 $ 3,646 Management and accounting services fees 4,297 3,738 9,047 7,446 Rental income 5,677 5,553 11,285 11,086 Other 298 242 590 579 Total other revenues $ 11,887 $ 11,488 $ 24,061 $ 22,757 Insurance Services For workers’ compensation insurance services, the premium revenues reflected in the interim condensed consolidated statements of operations for the three six June 30, 2019 three six June 30, 2018, For professional liability insurance services, the premium revenues reflected in the interim condensed consolidated statements of operations for the three six June 30, 2019 three six June 30, 2018 Management Fees from National We manage five skilled nursing facilities owned by National. For the three six June 30, 2019, three six June 30, 2018, Rental Income The Company leases real estate assets consisting of skilled nursing facilities and assisted living facilities to third 7 The following table sets forth the undiscounted cash flows for future minimum lease payments receivable for leases in effect at June 30, 2019 ( in thousands 2020 $ 21,938 2021 22,474 2022 22,923 2023 22,816 2024 22,730 Thereafter 34,316 Total future minimum lease payments $ 147,197 |
Note 5 - Non-operating Income
Note 5 - Non-operating Income | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Other Nonoperating Income and Expense [Text Block] | Note 5 Non–operating income includes equity in earnings of unconsolidated investments, dividends and other realized gains and losses on sales of marketable securities, and interest income. Our most significant equity method investment is a 75.1% non–controlling ownership interest in Caris HealthCare L.P. (“Caris”), a business that specializes in hospice care services. For the three six June 30, 2018, Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2019 2018 2019 2018 Equity in earnings (losses) of unconsolidated investments $ 2,480 $ 2,001 $ 4,801 $ (4,584 ) Dividends and net realized gains on sales of securities 1,931 1,795 3,862 3,597 Interest income 1,886 1,858 3,635 3,576 Gain on acquisition of equity method investment 1,975 - 1,975 - Total non-operating income $ 8,272 $ 5,654 $ 14,273 $ 2,589 Gain on A cquisition of E quity M ethod I nvestment Effective June 1, 2019, 60 Upon acquiring the remaining ownership interest, the Company recorded and increased its previously held equity interest up to fair value as of the acquisition date. This remeasurement of our equity interest at fair value resulted in a gain of $1,975,000 during the second 2019. |
Note 6 - Business Segments
Note 6 - Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 6 The Company has two reportable operating segments: ( 1 2 The Company also reports an “all other” category that includes revenues from rental income, management and accounting services fees, insurance services, and costs of the corporate office. For additional information on these reportable segments see Note 2 Summary of Significant Accounting Policies . The Company’s CODM evaluates performance and allocates capital resources to each segment based on an operating model that is designed to improve the quality of patient care and profitability of the Company while enhancing long-term shareholder value. The CODM does not not The following table sets forth the Company’s unaudited interim condensed consolidated statements of operations by business segment (in thousands Three Months Ended June 30, 2019 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 220,887 $ 14,377 $ - $ 235,264 Other revenues 242 - 11,645 11,887 Net operating revenues 221,129 14,377 11,645 247,151 Costs and expenses: Salaries, wages and benefits 130,720 8,480 8,678 147,878 Other operating 60,172 4,674 2,752 67,598 Rent 8,229 489 1,479 10,197 Depreciation and amortization 9,471 61 803 10,335 Interest 319 - 635 954 Total costs and expenses 208,911 13,704 14,347 236,962 Income (loss) from operations 12,218 673 (2,702 ) 10,189 Non-operating income - - 8,272 8,272 Unrealized losses on marketable equity securities - - (54 ) (54 ) Income before income taxes $ 12,218 $ 673 $ 5,516 $ 18,407 Three Months Ended June 30, 2018 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 215,617 $ 15,037 $ - $ 230,654 Other revenues 181 - 11,307 11,488 Net operating revenues 215,798 15,037 11,307 242,142 Costs and expenses: Salaries, wages and benefits 128,115 8,611 8,740 145,466 Other operating 56,069 4,740 1,780 62,589 Rent 8,267 485 1,520 10,272 Depreciation and amortization 9,571 44 782 10,397 Interest 383 - 870 1,253 Total costs and expenses 202,405 13,880 13,692 229,977 Income (loss) from operations 13,393 1,157 (2,385 ) 12,165 Non-operating income - - 5,654 5,654 Unrealized gains on marketable equity securities - - 12,448 12,448 Income before income taxes $ 13,393 $ 1,157 $ 15,717 $ 30,267 Six Months Ended June 30, 2019 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 442,521 $ 28,854 $ - $ 471,375 Other revenues 473 - 23,588 24,061 Net operating revenues 442,994 28,854 23,588 495,436 Costs and expenses: Salaries, wages and benefits 256,821 16,506 15,939 289,266 Other operating 122,801 8,926 5,303 137,030 Rent 16,520 951 2,964 20,435 Depreciation and amortization 19,124 122 1,606 20,852 Interest 668 - 1,212 1,880 Total costs and expenses 415,934 26,505 27,024 469,463 Income (loss) from operations 27,060 2,349 (3,436 ) 25,973 Non-operating income - - 14,273 14,273 Unrealized gains on marketable equity securities - - 6,784 6,784 Income before income taxes $ 27,060 $ 2,349 $ 17,621 $ 47,030 Six Months Ended June 30, 2018 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 431,968 $ 30,378 $ - $ 462,346 Other revenues 451 - 22,306 22,757 Net operating revenues 432,419 30,378 22,306 485,103 Costs and expenses: Salaries, wages and benefits 251,495 16,642 17,424 285,561 Other operating 113,904 10,019 3,838 127,761 Rent 16,524 973 3,004 20,501 Depreciation and amortization 19,032 82 1,625 20,739 Interest 780 - 1,713 2,493 Total costs and expenses 401,735 27,716 27,604 457,055 Income (loss) from operations 30,684 2,662 (5,298 ) 28,048 Non-operating income - - 2,589 2,589 Unrealized losses on marketable equity securities - - (3,069 ) (3,069 ) Income (loss) before income taxes $ 30,684 $ 2,662 $ (5,778 ) $ 27,568 |
Note 7 - Long-term Leases
Note 7 - Long-term Leases | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | Note 7 The Company’s lease portfolio primarily consists of finance and operating real estate leases for certain skilled nursing facilities, assisted and independent living facilities, homecare offices, and pharmacy warehouses. The original terms of the leases typically range from 2 to 15 years. Several of the real estate leases include renewal options which vary in length and may not On January 1, 2019, one 12 not Operating lease right-of-use assets and liabilities are recorded at the present value of the lease payments over the lease term. The present values of the lease payments are discounted using the incremental borrowing rate associated with each lease. As most of our leases do not January 1, 2019. not Accounting Policy Elections The Company has elected the package of practical expedients offered in the transition guidance which allows management not not Operating Leases with NHI At June 30, 2019, first third On January 1, 2007, December 2012, first three 2026. two 2007 In September 2013 second 2014 seven 13th Base rent expense under both NHI lease agreements totals $34,200,000 annually. Percentage rent under the leases is based on a quarterly calculation of revenue increases and is payable on a quarterly basis. Percentage rent expense under both leases was $965,000 and $928,000 for the three June 30, 2019 2018, six June 30, 2019 2018, We have a right of first 180 Finance Leases Effective June 1, 2014, third 2014 Lease Classification At June 30, 2019, in thousands Right-of-Use Assets Balance Sheet Classification June 30, 2019 Finance lease assets Net property and equipment $ 18,114 Operating lease right-of-use assets Operating lease right-of-use assets 214,367 Total $ 232,481 Lease Liabilities Balance Sheet Classification June 30, 2019 Current: Finance lease liabilities Finance lease obligations, current portion $ 4,043 Operating lease liabilities Operating lease liabilities, current portion 23,625 Noncurrent: Finance lease liabilities Finance lease obligations, less current portion 17,077 Operating lease liabilities Operating lease liabilities, less current portion 190,742 Total $ 235,487 Weighted-average remaining lease terms and discount rates at June 30, 2019 Weighted-average remaining lease terms (in years) Finance 4.7 Operating 7.6 Weighted-average discount rate Finance 6.0 % Operating 6.0 % Lease Costs For the three six June 30, 2019, (in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Finance lease costs: Depreciation of leased assets $ 968 $ 1,949 Interest of lease liabilities 334 682 Total finance lease costs 1,302 2,631 Operating lease costs: Operating lease costs 9,004 18,090 Variable lease costs 965 1,930 Short-term lease costs 228 415 Total operating lease costs 10,197 20,435 Total lease costs $ 11,499 $ 23,066 Minimum Lease Payments The following table summarizes the maturity of our finance and operating lease liabilities as of June 30, 2019 ( in thousands Finance Leases Operating Leases 2020 $ 5,200 $ 35,658 2021 5,200 35,351 2022 5,200 35,047 2023 5,200 34,564 2024 3,467 34,369 Thereafter - 91,294 Total minimum lease payments $ 24,267 $ 266,283 Less: amounts representing interest (3,147 ) (51,916 ) Present value of future minimum lease payments 21,120 214,367 Less: current portion (4,043 ) (23,625 ) Noncurrent lease liabilities $ 17,077 $ 190,742 Other Supplemental cash flow data for the six June 30, 2019 (in th ousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 18,090 Operating cash flows for finance leases 682 Financing cash flows for finance leases 1,932 |
Note 8- Earnings Per Share
Note 8- Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 8 Basic net income per share is computed based on the weighted average number of common shares outstanding for each period presented. Diluted net income per share reflects the potential dilution that would have occurred if securities to issue common stock were exercised, converted, or resulted in the issuance of common stock that would have then shared in our earnings. The following table summarizes the earnings and the weighted average number of common shares used in the calculation of basic and diluted earnings per share (in thousands, except for share and per share amounts) : Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Basic: Weighted average common shares outstanding 15,269,637 15,221,262 15,262,950 15,218,962 Net income attributable to National HealthCare Corporation $ 13,711 $ 22,461 $ 34,980 $ 19,670 Earnings per common share, basic $ 0.90 $ 1.48 $ 2.29 $ 1.29 Diluted: Weighted average common shares outstanding 15,269,637 15,221,262 15,262,950 15,218,962 Effects of dilutive instruments 83,065 7,043 75,570 5,996 Weighted average common shares outstanding 15,352,702 15,228,305 15,338,520 15,224,958 Net income attributable to National HealthCare Corporation $ 13,711 $ 22,461 $ 34,980 $ 19,670 Earnings per common share, diluted $ 0.89 $ 1.47 $ 2.28 $ 1.29 In the above table, options to purchase 8,796 and 1,137,015 shares of our common stock have been excluded for the six June 30, 2019 2018, |
Note 9 - Investments in Marketa
Note 9 - Investments in Marketable Securities | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 9 Our investments in marketable equity securities are carried at fair value with the changes in unrealized gains and losses recognized in our results of operations at each measurement date. Our investments in marketable debt securities are classified as available for sale securities and carried at fair value with the unrealized gains and losses recognized through accumulated other comprehensive income at each measurement date. Realized gains and losses from securities sales are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note 10 Marketable securities and restricted marketable securities consist of the following (in thousands) June 30, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Investments available for sale: Marketable equity securities $ 30,176 $ 147,007 $ 30,176 $ 140,223 Restricted investments available for sale: Corporate debt securities 61,747 63,326 69,439 67,632 Asset-based securities 59,632 60,358 62,772 62,068 U.S. Treasury securities 9,866 9,974 22,038 21,457 State and municipal securities 21,606 21,913 21,818 21,436 $ 183,027 $ 302,578 $ 206,243 $ 312,816 Included in the marketable equity securities are the following (in thousands, except share amounts): June 30, 2019 December 31, 2018 Shares Cost Fair Value Shares Cost Fair Value NHI Common Stock 1,630,642 $ 24,734 $ 127,239 1,630,642 $ 24,734 $ 123,179 The amortized cost and estimated fair value of debt securities classified as available for sale, by contractual maturity, are as follows (in thousands) June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Maturities: Within 1 year $ 9,573 $ 9,588 $ 11,448 $ 11,401 1 to 5 years 92,116 93,733 98,487 97,430 6 to 10 years 51,162 52,250 64,932 62,527 Over 10 years - - 1,200 1,235 $ 152,851 $ 155,571 $ 176,067 $ 172,593 Gross unrealized gains related to marketable equity securities are $116,851,000 and $110,081,000 as of June 30, 2019 December 31, 2018, June 30, 2019 December 31, 2018, three six June 30, 2019, three six June 30, 2018, Gross unrealized gains related to available for sale debt securities are $2,907,000 and $335,000 as of June 30, 2019 December 31, 2018, June 30, 2019 December 31, 2018, For the marketable securities in gross unrealized loss positions, (a) it is more likely than not not six June 30, 2019 December 31, 2018. Proceeds from the sale of available for sale debt securities during the six June 30, 2019 2018 six June 30, 2019 2018, six June 30, 2019 2018, |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 10 The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three may Level 1 Level 2 not Level 3 no 3 A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following table summarizes fair value measurements by level at June 30, 2019 December 31, 2018 (in thousands) Fair Value Measurements Using June 30, 2019 Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 29,746 $ 29,746 $ – $ – Restricted cash and cash equivalents 36,160 36,160 – – Marketable equity securities 147,007 147,007 – – Corporate debt securities 63,326 48,759 14,567 – Mortgage–backed securities 60,358 – 60,358 – U.S. Treasury securities 9,974 9,974 – – State and municipal securities 21,913 – 21,913 – Total financial assets $ 368,484 $ 271,646 $ 96,838 $ – Fair Value Measurements Using December 31, 2018 Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 43,247 $ 43,247 $ – $ – Restricted cash and cash equivalents 11,673 11,673 – – Marketable equity securities 140,223 140,223 – – Corporate debt securities 67,632 47,921 19,711 – Asset - backed securities 62,068 – 62,068 – U.S. Treasury securities 21,457 21,457 – – State and municipal securities 21,436 – 21,436 – Total financial assets $ 367,736 $ 264,521 $ 103,215 $ – |
Note 11 - Long-term Debt
Note 11 - Long-term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 11 Long–term debt consists of the following: Weighted Average Interest Rate Maturity June 30, 2019 December 31, 2018 Variable (dollars in thousands) Credit facility, interest payable monthly 3.8% 2020 $ 55,000 $ 55,000 Less current portion – – Total long-term debt $ 55,000 $ 55,000 The available borrowing capacity of the credit facility is $110,000,000. The credit facility has a maturity date of October 2020. |
Note 12 - Stock Repurchase Prog
Note 12 - Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | Note 12 In August 2018, six June 30, 2019, |
Note 13 - Stock-based Compensat
Note 13 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note 13 NHC recognizes stock–based compensation expense for all stock options granted over the requisite service period using the fair value at the date of grant using the Black–Scholes pricing model. Stock–based compensation totaled $684,000 and $749,000 for the three June 30, 2019 2018, six June 30, 2019 2018, At June 30, 2019, Stock Options The following table summarizes the significant assumptions used to value the options granted for the six June 30, 2019 December 31, 2018. June 30, 2019 December 31, 2018 Risk–free interest rate 2.30% 2.46% Expected volatility 17.4% 16.1% Expected life, in years 2.3% 3.0% Expected dividend yield 2.73% 3.29% The following table summarizes our outstanding stock options for the six June 30, 2019 December 31, 2018. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Options outstanding at January 1, 2018 1,239,407 $ 71.19 $ – Options granted 110,265 61.39 – Options exercised (68,291 ) 54.31 – Options cancelled (118,000 ) 72.11 – Options outstanding at December 31, 2018 1,163,381 71.16 – Options granted 53,796 77.89 – Options exercised (332,852 ) 71.56 – Options cancelled (60,000 ) 72.94 -- Options outstanding at June 30, 2019 824,325 $ 71.31 $ 8,115,000 Options exercisable at June 30, 2019 209,029 $ 68.05 $ 2,739,000 Options Outstanding June 30, 2019 Exercise Prices Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years 144,968 60.73 - 62.78 61.81 2.5 679,357 72.94 - 77.92 73.33 2.8 824,325 71.31 2.8 |
Note 14 - Income Taxes
Note 14 - Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 14 The income tax provision for the three June 30, 2019 three June 30, 2019 three June 30, 2018 three June 30, 2018 The income tax provision for the six June 30, 2019 six June 30, 2019 six June 30, 2018 six June 30, 2018 six Interest and penalties expense related to U.S. federal and state income tax returns are included within income tax expense. The Company is no 2015 |
Note 15 - Contingencies and Com
Note 15 - Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 15 Accrued Risk Reserves We are self–insured for risks related to health insurance and have wholly–owned limited purpose insurance companies that insure risks related to workers’ compensation and general and professional liability insurance claims both for our owned and leased entities and certain of the entities to which we provide management or accounting services. The liability we have recognized for reported claims and estimates for incurred but unreported claims totals $97,291,000 and $96,024,000 at June 30, 2019 December 31, 2018, As a result of the terms of our insurance policies and our use of wholly owned limited purpose insurance companies, we have retained significant insurance risk with respect to workers’ compensation and general and professional liability. We consider the professional services of independent actuaries to assist us in estimating our exposures for claims obligations (for both asserted and unasserted claims) related to deductibles and exposures in excess of coverage limits, and we maintain reserves for these obligations. Such estimates are based on many variables including historical and statistical information and other factors. Workers’ Compensation For workers’ compensation, we utilize a wholly owned Tennessee domiciled property/casualty insurance company to write coverage for NHC affiliates and for third–party customers. Policies are written for a duration of twelve General and Professional Liability Lawsuits and Insurance The senior care industry has experienced increases in both the number of personal injury/wrongful death claims and in the severity of awards based upon alleged negligence by nursing facilities and their employees in providing care to residents. As of June 30, 2019, Insurance coverage for both periods includes both primary policies and excess policies. The primary coverage is in the amount of $1.0 million per incident, $3.0 million per location with an annual primary policy aggregate limit that is adjusted on an annual basis. For 2018 2019, third Financing Commitments In conjunction with our management contract with National, we have entered into a line of credit arrangement whereby we may June 30, 2019, no Nutritional Support Services, L.P., Qui Tam Litigation On June 19, 2018, No. 6:17 2608 not April 16, 2018, Governmental Regulations Laws and regulations governing the Medicare, Medicaid and other federal healthcare programs are complex and subject to interpretation. Management believes that it is following all applicable laws and regulations in all material respects. However, compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusions from the Medicare, Medicaid and other federal healthcare programs. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The unaudited interim condensed consolidated financial statements to which these notes are attached include all normal, recurring adjustments which are necessary to fairly present the financial position, results of operations and cash flows of NHC. All significant intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements include the accounts of all entities controlled by NHC. The Company presents noncontrolling interest within the equity section of its consolidated balance sheets. The Company presents the amount of consolidated net income that is attributable to NHC and the noncontrolling interest in its consolidated statements of operations. We assume that users of these interim financial statements have read or have access to the audited December 31, 2018 consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations and that the adequacy of additional disclosure needed for a fair presentation, except in regard to material contingencies, may be determined in that context. Accordingly, footnotes and other disclosures which would substantially duplicate the disclosure contained in our most recent annual report to stockholders have been omitted. This interim financial information is not necessarily indicative of the results that may be expected for a full year for a variety of reasons. |
Use of Estimates, Policy [Policy Text Block] | Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could cause our reported net income to vary significantly from period to period. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Guidance In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016 - 02, "Leases (Topic 842 )." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied either retrospectively to each prior reporting period presented in the financial statements or retrospectively at the beginning of the period of adoption. The Company adopted the standard as of January 1, 2019, electing the transition method that allows us to apply the standard as of the adoption date and record a cumulative adjustment in retained earnings, if applicable. We did not have a cumulative adjustment to retained earnings. The interim condensed consolidated financial statements for the period ending June 30, 2019, are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with our historical accounting policy. On June 20, 2018, the FASB issued ASU No. 2018 - 07, “Compensation – Stock Compensation (Topic 718 ): Improvements to Nonemployee Share-based Payment Accounting.” ASU No. 2018 - 07 simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees is aligned with the requirements for share-based payments granted to employees. On January 1, 2019, the Company early adopted the provisions of ASU No. 2018 - 07 and this standard did not have an impact on our consolidated financial statements. On August 28, 2018, the FASB issued ASU No. 2018 - 13, “Fair Value Measurement (Topic 820 ): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018 - 13 changes the fair value measurement disclosure requirements of Accounting Standards Codification (“ASC”) 820. Entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but they will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. On January 1, 2019, the Company early adopted the provisions of ASU No. 2018 - 13 and this standard did not have a material impact on our consolidated financial statements as we do not have any Level 3 investments. Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016 - 13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.” ASU No. 2016 - 13 adds to U.S GAAP an impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact this standard will have on our policies and procedures and internal control framework. |
Revenue [Policy Text Block] | Net Patient Revenues and Accounts Receivable Net patient revenues are derived from services rendered to patients for skilled and intermediate nursing, rehabilitation therapy, assisted living and independent living, and home health care services. Net patient revenue is reported at the amount that reflects the consideration to which the Company expects to be entitled in exchange for providing patient services. These amounts are due from patients, governmental programs, and other third -party payors, and include variable consideration for retroactive revenue adjustments due to settlement of audits, reviews, and investigations. The Company recognizes revenue as its performance obligations are completed. Routine services are treated as a single performance obligation satisfied over time as services are rendered. These routine services represent a bundle of services that are not capable of being distinct. The performance obligations are satisfied over time as the patient simultaneously receives and consumes the benefits of the healthcare services provided. Additionally, there may be ancillary services which are not included in the daily rates for routine services, but instead are treated as separate performance obligations satisfied at a point in time when those services are rendered. The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third party payors. Contractual adjustments are based on contractual agreements and historical experience. The Company considers the patient's ability and intent to pay the amount of consideration upon admission. Subsequent changes resulting from a patient’s ability to pay are recorded as bad debt expense, which is included as a component of other operating expenses in the interim condensed consolidated statements of operations. For the three months and six months ended June 30, 2019, bad debt expense was and respectively. For the three months and six months ended June 30, 2018, bad debt expense was and respectively. As of June 30, 2019, and December 31, 2018, the Company has recorded allowance for doubtful accounts of and respectively, as our best estimate of probable losses inherent in the accounts receivable balance. |
Revenue Recognition for Alternative Revenue Programs, Policy [Policy Text Block] | Other Revenues Other revenues include revenues from the provision of insurance services, management and accounting services to other long–term care providers, and rental income. Our insurance revenues consist of premiums that are generally paid in advance and then amortized into income over the policy period. We charge for management services based on a percentage of net revenues. We charge for accounting services based on a monthly fee or a fixed fee per bed of the healthcare facility under contract. We record other revenues as the performance obligations are satisfied based on the terms of our contractual arrangements. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting In accordance with the provisions of ASC 280, “Segment Reporting”, the Company is required to report financial and descriptive information about its reportable operating segments. The Company has reportable operating segments: ( 1 ) inpatient services, which includes the operation of skilled nursing facilities, assisted and independent living facilities, and one behavioral health hospital, and ( 2 ) homecare services. The Company also reports an “all other” category that includes revenues from rental income, management and accounting services fees, insurance services, and costs of the corporate office. See Note 6 for further disclosure of the Company’s operating segments. |
Other Operating Expenses Policy [Policy Text Block] | Other Operating Expenses Other operating expenses include the costs of care and services that we provide to the residents of our facilities and the costs of maintaining our facilities. Our primary patient care costs include drugs, medical supplies, purchased professional services, food, and professional liability insurance and licensing fees. The primary facility costs include utilities and property insurance. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | General and Administrative Costs With the Company being a healthcare provider, the majority of our expenses are "cost of revenue" items. Costs that could be classified as "general and administrative" by the Company would include its corporate office costs, excluding stock-based compensation, which were and for the three months and six months ended June 30, 2019, respectively. General and administrative costs were and for the three months and six months ended June 30, 2018, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are recorded at cost. Depreciation is provided by the straight-line method over the expected useful lives of the assets estimated as follows: buildings and improvements, - years and equipment and furniture, - years. Leasehold improvements are amortized over periods that do not exceed the non-cancelable respective lease terms using the straight-line method. Finance leases are recorded at cost. Finance leases are amortized in accordance with the provision codified within ASC 842, Leases . Amortization of finance lease assets is included in depreciation and amortization expense. |
Liability Reserve Estimate, Policy [Policy Text Block] | Accrued Risk Reserves |
Continuing Care Contracts and Refundable Entrance Fee, Policy [Policy Text Block] | Continuing Care Contracts and Refundable Entrance Fee |
Other Noncurrent Liabilities [Policy Text Block] | Other Noncurrent Liabilities |
Revenue from Contract with Customer [Policy Text Block] | Deferred Revenue |
Noncontrolling Interest, Policy [Policy Text Block] | Noncontrolling Interest |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities |
Note 3 - Net Patient Revenues (
Note 3 - Net Patient Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2019 2018 2019 2018 Net patient revenues: Inpatient services $ 220,887 $ 215,617 $ 442,521 $ 431,968 Homecare 14,377 15,037 28,854 30,378 Total net patient revenue $ 235,264 $ 230,654 $ 471,375 $ 462,346 Three Months Ended June 30 Six Months Ended June 30 Source 2019 2018 2019 2018 Medicare 33 % 35 % 34 % 36 % Managed Care 11 % 12 % 11 % 12 % Medicaid 29 % 26 % 28 % 26 % Private Pay and Other 27 % 27 % 27 % 26 % Total 100 % 100 % 100 % 100 % |
Note 4 - Other Revenues (Tables
Note 4 - Other Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Other Revenues [Table Text Block] | Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2019 2018 2019 2018 Insurance services $ 1,615 $ 1,955 $ 3,139 $ 3,646 Management and accounting services fees 4,297 3,738 9,047 7,446 Rental income 5,677 5,553 11,285 11,086 Other 298 242 590 579 Total other revenues $ 11,887 $ 11,488 $ 24,061 $ 22,757 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | 2020 $ 21,938 2021 22,474 2022 22,923 2023 22,816 2024 22,730 Thereafter 34,316 Total future minimum lease payments $ 147,197 |
Note 5 - Non-operating Income (
Note 5 - Non-operating Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Other Nonoperating Income, by Component [Table Text Block] | Three Months Ended June 30 Six Months Ended June 30 (in thousands) 2019 2018 2019 2018 Equity in earnings (losses) of unconsolidated investments $ 2,480 $ 2,001 $ 4,801 $ (4,584 ) Dividends and net realized gains on sales of securities 1,931 1,795 3,862 3,597 Interest income 1,886 1,858 3,635 3,576 Gain on acquisition of equity method investment 1,975 - 1,975 - Total non-operating income $ 8,272 $ 5,654 $ 14,273 $ 2,589 |
Note 6 - Business Segments (Tab
Note 6 - Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended June 30, 2019 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 220,887 $ 14,377 $ - $ 235,264 Other revenues 242 - 11,645 11,887 Net operating revenues 221,129 14,377 11,645 247,151 Costs and expenses: Salaries, wages and benefits 130,720 8,480 8,678 147,878 Other operating 60,172 4,674 2,752 67,598 Rent 8,229 489 1,479 10,197 Depreciation and amortization 9,471 61 803 10,335 Interest 319 - 635 954 Total costs and expenses 208,911 13,704 14,347 236,962 Income (loss) from operations 12,218 673 (2,702 ) 10,189 Non-operating income - - 8,272 8,272 Unrealized losses on marketable equity securities - - (54 ) (54 ) Income before income taxes $ 12,218 $ 673 $ 5,516 $ 18,407 Three Months Ended June 30, 2018 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 215,617 $ 15,037 $ - $ 230,654 Other revenues 181 - 11,307 11,488 Net operating revenues 215,798 15,037 11,307 242,142 Costs and expenses: Salaries, wages and benefits 128,115 8,611 8,740 145,466 Other operating 56,069 4,740 1,780 62,589 Rent 8,267 485 1,520 10,272 Depreciation and amortization 9,571 44 782 10,397 Interest 383 - 870 1,253 Total costs and expenses 202,405 13,880 13,692 229,977 Income (loss) from operations 13,393 1,157 (2,385 ) 12,165 Non-operating income - - 5,654 5,654 Unrealized gains on marketable equity securities - - 12,448 12,448 Income before income taxes $ 13,393 $ 1,157 $ 15,717 $ 30,267 Six Months Ended June 30, 2019 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 442,521 $ 28,854 $ - $ 471,375 Other revenues 473 - 23,588 24,061 Net operating revenues 442,994 28,854 23,588 495,436 Costs and expenses: Salaries, wages and benefits 256,821 16,506 15,939 289,266 Other operating 122,801 8,926 5,303 137,030 Rent 16,520 951 2,964 20,435 Depreciation and amortization 19,124 122 1,606 20,852 Interest 668 - 1,212 1,880 Total costs and expenses 415,934 26,505 27,024 469,463 Income (loss) from operations 27,060 2,349 (3,436 ) 25,973 Non-operating income - - 14,273 14,273 Unrealized gains on marketable equity securities - - 6,784 6,784 Income before income taxes $ 27,060 $ 2,349 $ 17,621 $ 47,030 Six Months Ended June 30, 2018 Inpatient Services Homecare All Other Total Revenues: Net patient revenues $ 431,968 $ 30,378 $ - $ 462,346 Other revenues 451 - 22,306 22,757 Net operating revenues 432,419 30,378 22,306 485,103 Costs and expenses: Salaries, wages and benefits 251,495 16,642 17,424 285,561 Other operating 113,904 10,019 3,838 127,761 Rent 16,524 973 3,004 20,501 Depreciation and amortization 19,032 82 1,625 20,739 Interest 780 - 1,713 2,493 Total costs and expenses 401,735 27,716 27,604 457,055 Income (loss) from operations 30,684 2,662 (5,298 ) 28,048 Non-operating income - - 2,589 2,589 Unrealized losses on marketable equity securities - - (3,069 ) (3,069 ) Income (loss) before income taxes $ 30,684 $ 2,662 $ (5,778 ) $ 27,568 |
Note 7 - Long-term Leases (Tabl
Note 7 - Long-term Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lease, Balance Sheet Classification [Table Text Block] | Right-of-Use Assets Balance Sheet Classification June 30, 2019 Finance lease assets Net property and equipment $ 18,114 Operating lease right-of-use assets Operating lease right-of-use assets 214,367 Total $ 232,481 Lease Liabilities Balance Sheet Classification June 30, 2019 Current: Finance lease liabilities Finance lease obligations, current portion $ 4,043 Operating lease liabilities Operating lease liabilities, current portion 23,625 Noncurrent: Finance lease liabilities Finance lease obligations, less current portion 17,077 Operating lease liabilities Operating lease liabilities, less current portion 190,742 Total $ 235,487 |
Lease, Cost [Table Text Block] | Weighted-average remaining lease terms (in years) Finance 4.7 Operating 7.6 Weighted-average discount rate Finance 6.0 % Operating 6.0 % Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Finance lease costs: Depreciation of leased assets $ 968 $ 1,949 Interest of lease liabilities 334 682 Total finance lease costs 1,302 2,631 Operating lease costs: Operating lease costs 9,004 18,090 Variable lease costs 965 1,930 Short-term lease costs 228 415 Total operating lease costs 10,197 20,435 Total lease costs $ 11,499 $ 23,066 |
Lessee, Lease, Liability, Maturity [Table Text Block] | Finance Leases Operating Leases 2020 $ 5,200 $ 35,658 2021 5,200 35,351 2022 5,200 35,047 2023 5,200 34,564 2024 3,467 34,369 Thereafter - 91,294 Total minimum lease payments $ 24,267 $ 266,283 Less: amounts representing interest (3,147 ) (51,916 ) Present value of future minimum lease payments 21,120 214,367 Less: current portion (4,043 ) (23,625 ) Noncurrent lease liabilities $ 17,077 $ 190,742 |
Lease, Cash Flow Information [Table Text Block] | Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 18,090 Operating cash flows for finance leases 682 Financing cash flows for finance leases 1,932 |
Note 8- Earnings Per Share (Tab
Note 8- Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Basic: Weighted average common shares outstanding 15,269,637 15,221,262 15,262,950 15,218,962 Net income attributable to National HealthCare Corporation $ 13,711 $ 22,461 $ 34,980 $ 19,670 Earnings per common share, basic $ 0.90 $ 1.48 $ 2.29 $ 1.29 Diluted: Weighted average common shares outstanding 15,269,637 15,221,262 15,262,950 15,218,962 Effects of dilutive instruments 83,065 7,043 75,570 5,996 Weighted average common shares outstanding 15,352,702 15,228,305 15,338,520 15,224,958 Net income attributable to National HealthCare Corporation $ 13,711 $ 22,461 $ 34,980 $ 19,670 Earnings per common share, diluted $ 0.89 $ 1.47 $ 2.28 $ 1.29 |
Note 9 - Investments in Marke_2
Note 9 - Investments in Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | June 30, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Investments available for sale: Marketable equity securities $ 30,176 $ 147,007 $ 30,176 $ 140,223 Restricted investments available for sale: Corporate debt securities 61,747 63,326 69,439 67,632 Asset-based securities 59,632 60,358 62,772 62,068 U.S. Treasury securities 9,866 9,974 22,038 21,457 State and municipal securities 21,606 21,913 21,818 21,436 $ 183,027 $ 302,578 $ 206,243 $ 312,816 |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | June 30, 2019 December 31, 2018 Shares Cost Fair Value Shares Cost Fair Value NHI Common Stock 1,630,642 $ 24,734 $ 127,239 1,630,642 $ 24,734 $ 123,179 |
Investments Classified by Contractual Maturity Date [Table Text Block] | June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Maturities: Within 1 year $ 9,573 $ 9,588 $ 11,448 $ 11,401 1 to 5 years 92,116 93,733 98,487 97,430 6 to 10 years 51,162 52,250 64,932 62,527 Over 10 years - - 1,200 1,235 $ 152,851 $ 155,571 $ 176,067 $ 172,593 |
Note 10 - Fair Value Measurem_2
Note 10 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurements Using June 30, 2019 Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 29,746 $ 29,746 $ – $ – Restricted cash and cash equivalents 36,160 36,160 – – Marketable equity securities 147,007 147,007 – – Corporate debt securities 63,326 48,759 14,567 – Mortgage–backed securities 60,358 – 60,358 – U.S. Treasury securities 9,974 9,974 – – State and municipal securities 21,913 – 21,913 – Total financial assets $ 368,484 $ 271,646 $ 96,838 $ – Fair Value Measurements Using December 31, 2018 Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 43,247 $ 43,247 $ – $ – Restricted cash and cash equivalents 11,673 11,673 – – Marketable equity securities 140,223 140,223 – – Corporate debt securities 67,632 47,921 19,711 – Asset - backed securities 62,068 – 62,068 – U.S. Treasury securities 21,457 21,457 – – State and municipal securities 21,436 – 21,436 – Total financial assets $ 367,736 $ 264,521 $ 103,215 $ – |
Note 11 - Long-term Debt (Table
Note 11 - Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | Weighted Average Interest Rate Maturity June 30, 2019 December 31, 2018 Variable (dollars in thousands) Credit facility, interest payable monthly 3.8% 2020 $ 55,000 $ 55,000 Less current portion – – Total long-term debt $ 55,000 $ 55,000 |
Note 13 - Stock-based Compens_2
Note 13 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | June 30, 2019 December 31, 2018 Risk–free interest rate 2.30% 2.46% Expected volatility 17.4% 16.1% Expected life, in years 2.3% 3.0% Expected dividend yield 2.73% 3.29% |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Options outstanding at January 1, 2018 1,239,407 $ 71.19 $ – Options granted 110,265 61.39 – Options exercised (68,291 ) 54.31 – Options cancelled (118,000 ) 72.11 – Options outstanding at December 31, 2018 1,163,381 71.16 – Options granted 53,796 77.89 – Options exercised (332,852 ) 71.56 – Options cancelled (60,000 ) 72.94 -- Options outstanding at June 30, 2019 824,325 $ 71.31 $ 8,115,000 Options exercisable at June 30, 2019 209,029 $ 68.05 $ 2,739,000 |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Options Outstanding June 30, 2019 Exercise Prices Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years 144,968 60.73 - 62.78 61.81 2.5 679,357 72.94 - 77.92 73.33 2.8 824,325 71.31 2.8 |
Note 1 - Description of Busin_2
Note 1 - Description of Business (Details Textual) | Jun. 30, 2019 |
Number of Skilled Nursing Centers | 75 |
Number of Beds | 9,510 |
Number of Assisted Living Facilities | 26 |
Number of Independent Living Facilities | 5 |
Number of Geriatric Psychiatric Hospitals | 1 |
Number of Homecare Programs | 36 |
Number of States in which Entity Operates | 10 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Accounts Receivable, Credit Loss Expense (Reversal) | $ 992,000 | $ 1,064,000 | $ 2,039,000 | $ 2,023,000 | |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 5,541,000 | $ 5,541,000 | $ 4,610,000 | ||
Number of Reportable Segments | 2 | ||||
General and Administrative Expense, Total | $ 6,677,000 | $ 6,573,000 | $ 11,821,000 | $ 13,250,000 | |
Loss Contingency, Pending Claims, Number, Ending Balance | 65 | 65 | |||
Continuing Care Retirement Communities, Refund Obligation | $ 2,172,000 | $ 2,172,000 | $ 2,172,000 | ||
Building and Building Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment, Useful Life | 20 years | ||||
Building and Building Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment, Useful Life | 40 years | ||||
Equipment and Furniture [Member] | Minimum [Member] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Equipment and Furniture [Member] | Maximum [Member] | |||||
Property, Plant and Equipment, Useful Life | 15 years |
Note 3 - Net Patient Revenues_2
Note 3 - Net Patient Revenues (Details Textual) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 5,541,000 | $ 4,610,000 |
Medicare and Medicaid [Member] | ||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 16,799,000 | $ 16,108,000 |
Note 3 - Net Patient Revenues -
Note 3 - Net Patient Revenues - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net patient revenues | $ 235,264 | $ 230,654 | $ 471,375 | $ 462,346 |
Revenue, concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Medicare [Member] | ||||
Revenue, concentration percentage | 33.00% | 35.00% | 34.00% | 36.00% |
Inpatient Services [Member] | ||||
Net patient revenues | $ 220,887 | $ 215,617 | $ 442,521 | $ 431,968 |
Managed Care [Member] | ||||
Revenue, concentration percentage | 11.00% | 12.00% | 11.00% | 12.00% |
Homecare [Member] | ||||
Net patient revenues | $ 14,377 | $ 15,037 | $ 28,854 | $ 30,378 |
Medicaid [Member] | ||||
Revenue, concentration percentage | 29.00% | 26.00% | 28.00% | 26.00% |
Private Pay and Other [Member] | ||||
Revenue, concentration percentage | 27.00% | 27.00% | 27.00% | 26.00% |
Note 4 - Other Revenues (Detail
Note 4 - Other Revenues (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Insurance Services Revenue, Total | $ 1,615,000 | $ 1,955,000 | $ 3,139,000 | $ 3,646,000 |
Number of Skilled Nursing Centers | 75 | 75 | ||
Number of Assisted Living Facilities | 26 | 26 | ||
FLORIDA | ||||
Number of Assisted Living Facilities | 4 | 4 | ||
National [Member] | ||||
Number of Skilled Nursing Centers | 5 | 5 | ||
Property Management Fee Revenue | $ 1,351,000 | 1,038,000 | $ 3,206,000 | 2,053,000 |
Workers Compensation Revenue [Member] | ||||
Insurance Services Revenue, Total | 943,000 | 1,282,000 | 1,791,000 | 2,300,000 |
Professional Liability Insurance [Member] | ||||
Insurance Services Revenue, Total | $ 672,000 | $ 673,000 | $ 1,348,000 | $ 1,346,000 |
Note 4 - Other Revenues - Summa
Note 4 - Other Revenues - Summary of Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Insurance services | $ 1,615 | $ 1,955 | $ 3,139 | $ 3,646 |
Management and accounting services fees | 4,297 | 3,738 | 9,047 | 7,446 |
Rental income | 5,677 | 5,553 | 11,285 | 11,086 |
Other | 298 | 242 | 590 | 579 |
Total other revenues | $ 11,887 | $ 11,488 | $ 24,061 | $ 22,757 |
Note 4 - Other Revenues - Minim
Note 4 - Other Revenues - Minimum Lease Payments Receivable (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2020 | $ 21,938 |
2021 | 22,474 |
2022 | 22,923 |
2023 | 22,816 |
2024 | 22,730 |
Thereafter | 34,316 |
Total future minimum lease payments | $ 147,197 |
Note 5 - Non-operating Income_2
Note 5 - Non-operating Income (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Acquisition of Equity Method Investment | $ 1,975,000 | $ 0 | $ 1,975,000 | $ 0 |
Nonoperating Income (Expense) [Member] | ||||
Gain (Loss) on Acquisition of Equity Method Investment | $ 1,975,000 | |||
Caris [Member] | ||||
Equity Method Investment, Ownership Percentage | 75.10% | 75.10% | ||
Loss Contingency, Damages Paid, Value | $ 136,000 | $ 8,364,000 |
Note 5 - Non-operating Income -
Note 5 - Non-operating Income - Summary of Non-operating Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity in earnings (losses) of unconsolidated investments | $ 2,480,000 | $ 2,001,000 | $ 4,801,000 | $ (4,584,000) |
Dividends and net realized gains on sales of securities | 1,931,000 | 1,795,000 | 3,862,000 | 3,597,000 |
Interest income | 1,886,000 | 1,858,000 | 3,635,000 | 3,576,000 |
Gain on acquisition of equity method investment | 1,975,000 | 0 | 1,975,000 | 0 |
Total non-operating income | $ 8,272,000 | $ 5,654,000 | $ 14,273,000 | $ 2,589,000 |
Note 6 - Business Segments (Det
Note 6 - Business Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2019 | |
Number of Operating Segments | 2 |
Note 6 - Business Segments - Su
Note 6 - Business Segments - Summary of Financial Information by Reporting Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Net patient revenues | $ 235,264,000 | $ 230,654,000 | $ 471,375,000 | $ 462,346,000 |
Other revenues | 11,887,000 | 11,488,000 | 24,061,000 | 22,757,000 |
Net operating revenues | 247,151,000 | 242,142,000 | 495,436,000 | 485,103,000 |
Costs and expenses: | ||||
Salaries, wages and benefits | 147,878,000 | 145,466,000 | 289,266,000 | 285,561,000 |
Other operating | 67,598,000 | 62,589,000 | 137,030,000 | 127,761,000 |
Rent | 10,197,000 | 10,272,000 | 20,435,000 | 20,501,000 |
Depreciation and amortization | 10,335,000 | 10,397,000 | 20,852,000 | 20,739,000 |
Interest | 954,000 | 1,253,000 | 1,880,000 | 2,493,000 |
Total costs and expenses | 236,962,000 | 229,977,000 | 469,463,000 | 457,055,000 |
Income (loss) from operations | 10,189,000 | 12,165,000 | 25,973,000 | 28,048,000 |
Non-operating income (loss) | 8,272,000 | 5,654,000 | 14,273,000 | 2,589,000 |
Unrealized gains (losses) on marketable equity securities | (54,000) | 12,448,000 | 6,784,000 | (3,069,000) |
Income before income taxes | 18,407,000 | 30,267,000 | 47,030,000 | 27,568,000 |
Inpatient Services Segment [Member] | ||||
Revenues: | ||||
Net patient revenues | 220,887,000 | 215,617,000 | 442,521,000 | 431,968,000 |
Other revenues | 242,000 | 181,000 | 473,000 | 451,000 |
Net operating revenues | 221,129,000 | 215,798,000 | 442,994,000 | 432,419,000 |
Costs and expenses: | ||||
Salaries, wages and benefits | 130,720,000 | 128,115,000 | 256,821,000 | 251,495,000 |
Other operating | 60,172,000 | 56,069,000 | 122,801,000 | 113,904,000 |
Rent | 8,229,000 | 8,267,000 | 16,520,000 | 16,524,000 |
Depreciation and amortization | 9,471,000 | 9,571,000 | 19,124,000 | 19,032,000 |
Interest | 319,000 | 383,000 | 668,000 | 780,000 |
Total costs and expenses | 208,911,000 | 202,405,000 | 415,934,000 | 401,735,000 |
Income (loss) from operations | 12,218,000 | 13,393,000 | 27,060,000 | 30,684,000 |
Non-operating income (loss) | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on marketable equity securities | 0 | 0 | 0 | 0 |
Income before income taxes | 12,218,000 | 13,393,000 | 27,060,000 | 30,684,000 |
Homecare Services Segment [Member] | ||||
Revenues: | ||||
Net patient revenues | 14,377,000 | 15,037,000 | 28,854,000 | 30,378,000 |
Other revenues | 0 | 0 | 0 | 0 |
Net operating revenues | 14,377,000 | 15,037,000 | 28,854,000 | 30,378,000 |
Costs and expenses: | ||||
Salaries, wages and benefits | 8,480,000 | 8,611,000 | 16,506,000 | 16,642,000 |
Other operating | 4,674,000 | 4,740,000 | 8,926,000 | 10,019,000 |
Rent | 489,000 | 485,000 | 951,000 | 973,000 |
Depreciation and amortization | 61,000 | 44,000 | 122,000 | 82,000 |
Interest | 0 | 0 | 0 | 0 |
Total costs and expenses | 13,704,000 | 13,880,000 | 26,505,000 | 27,716,000 |
Income (loss) from operations | 673,000 | 1,157,000 | 2,349,000 | 2,662,000 |
Non-operating income (loss) | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on marketable equity securities | 0 | 0 | 0 | 0 |
Income before income taxes | 673,000 | 1,157,000 | 2,349,000 | 2,662,000 |
Other Segments [Member] | ||||
Revenues: | ||||
Net patient revenues | 0 | 0 | 0 | 0 |
Other revenues | 11,645,000 | 11,307,000 | 23,588,000 | 22,306,000 |
Net operating revenues | 11,645,000 | 11,307,000 | 23,588,000 | 22,306,000 |
Costs and expenses: | ||||
Salaries, wages and benefits | 8,678,000 | 8,740,000 | 15,939,000 | 17,424,000 |
Other operating | 2,752,000 | 1,780,000 | 5,303,000 | 3,838,000 |
Rent | 1,479,000 | 1,520,000 | 2,964,000 | 3,004,000 |
Depreciation and amortization | 803,000 | 782,000 | 1,606,000 | 1,625,000 |
Interest | 635,000 | 870,000 | 1,212,000 | 1,713,000 |
Total costs and expenses | 14,347,000 | 13,692,000 | 27,024,000 | 27,604,000 |
Income (loss) from operations | (2,702,000) | (2,385,000) | (3,436,000) | (5,298,000) |
Non-operating income (loss) | 8,272,000 | 5,654,000 | 14,273,000 | 2,589,000 |
Unrealized gains (losses) on marketable equity securities | (54,000) | 12,448,000 | 6,784,000 | (3,069,000) |
Income before income taxes | $ 5,516,000 | $ 15,717,000 | $ 17,621,000 | $ (5,778,000) |
Note 7 - Long-term Leases (Deta
Note 7 - Long-term Leases (Details Textual) | Jun. 01, 2014USD ($) | Mar. 01, 2014 | Jan. 01, 2007USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Number of Skilled Nursing Centers | 75 | 75 | ||||||
Number of Facilities Under Capitalized Lease | 3 | |||||||
Number of Capitalized Lease Agreements | 3 | |||||||
Capital Leases, Future Minimum Payments, Net Minimum Payments, Total | $ 5,200,000 | |||||||
Two Leases with NHI [Member] | ||||||||
Number of Skilled Nursing Centers Leased from NHI | 35 | 35 | ||||||
Number of Assisted Living Centers Leased from NHI | 7 | 7 | ||||||
Number of Independent Living Centers Leased from NHI | 3 | 3 | ||||||
Number of Lease Agreements with NHI | 2 | 2 | ||||||
Lease One With NHI [Member] | ||||||||
Lessee, Operating Lease, Term of Contract | 15 years | |||||||
Number of Skilled Nursing Facilities Subleased | 4 | 4 | ||||||
Number of Additional Lease Options | 3 | |||||||
Term of Additional Lease Option | 5 years | |||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 30,750,000 | |||||||
Operating Lease Additional Percentage Rent Percentage | 4.00% | |||||||
Lease Two with NHI [Member] | ||||||||
Lessee, Operating Lease, Term of Contract | 15 years | |||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 3,450,000 | $ 34,200,000 | ||||||
Operating Lease Additional Percentage Rent Percentage | 4.00% | |||||||
Number of Skilled Nursing Centers | 7 | |||||||
Facility Purchase Price | $ 49,000,000 | |||||||
Both NHI Lease Agreements [Member] | ||||||||
Operating Leases Percentage Rent Expense | $ 965,000 | $ 928,000 | $ 1,930,000 | $ 1,856,000 | ||||
Capital Lease [Member] | ||||||||
Number of Additional Lease Options | 2 | |||||||
Term of Additional Lease Option | 5 years | |||||||
Initial Lease Term | 10 years | |||||||
Capital Lease Additional Percentage Rent Percentage | 4.00% | |||||||
Minimum [Member] | ||||||||
Lessee, Operating Lease, Term of Contract | 2 years | 2 years | ||||||
Maximum [Member] | ||||||||
Lessee, Operating Lease, Term of Contract | 15 years | 15 years |
Note 7 - Long-term Leases - Bal
Note 7 - Long-term Leases - Balance Sheet Classification (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Finance lease assets | $ 18,114,000 | |
Operating lease right-of-use assets | 214,367,000 | $ 0 |
Total | 232,481,000 | |
Finance lease liabilities | 4,043,000 | 3,924,000 |
Operating lease liabilities | 23,625,000 | 0 |
Noncurrent lease liabilities, finance leases | 17,077,000 | 19,128,000 |
Noncurrent lease liabilities, operating leases | 190,742,000 | $ 0 |
Total | $ 235,487,000 |
Note 7 - Long-term Leases - Lea
Note 7 - Long-term Leases - Lease Information and Expense (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Finance (Year) | 4 years 8 months 12 days | 4 years 8 months 12 days |
Operating (Year) | 7 years 7 months 6 days | 7 years 7 months 6 days |
Finance | 6.00% | 6.00% |
Operating | 6.00% | 6.00% |
Depreciation of leased assets | $ 968 | $ 1,949 |
Interest of lease liabilities | 334 | 682 |
Total finance lease costs | 1,302 | 2,631 |
Operating lease costs | 9,004 | 18,090 |
Variable lease costs | 965 | 1,930 |
Short-term lease costs | 228 | 415 |
Total operating lease costs | 10,197 | 20,435 |
Total lease costs | $ 11,499 | $ 23,066 |
Note 7 - Long-term Leases - Mat
Note 7 - Long-term Leases - Maturity of Lease Liabilities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
2020, finance leases | $ 5,200,000 | |
2020, operating leases | 35,658,000 | |
2021, finance leases | 5,200,000 | |
2021, operating leases | 35,351,000 | |
2022, finance leases | 5,200,000 | |
2022, operating leases | 35,047,000 | |
2023, finance leases | 5,200,000 | |
2023, operating leases | 34,564,000 | |
2024, finance leases | 3,467,000 | |
2024, operating leases | 34,369,000 | |
Thereafter, finance leases | 0 | |
Thereafter, operating leases | 91,294,000 | |
Total minimum lease payments, finance leases | 24,267,000 | |
Total minimum lease payments, operating leases | 266,283,000 | |
Less: amounts representing interest, finance leases | (3,147,000) | |
Less: amounts representing interest, operating leases | (51,916,000) | |
Present value of future minimum lease payments, finance leases | 21,120,000 | |
Present value of future minimum lease payments, operating leases | 214,367,000 | |
Less: current portion, finance leases | (4,043,000) | $ (3,924,000) |
Less: current portion, operating leases | (23,625,000) | 0 |
Noncurrent lease liabilities, finance leases | 17,077,000 | 19,128,000 |
Noncurrent lease liabilities, operating leases | $ 190,742,000 | $ 0 |
Note 7 - Long-term Leases - Cas
Note 7 - Long-term Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating cash flows for operating leases | $ 18,090 | |
Operating cash flows for finance leases | 682 | |
Financing cash flows for finance leases | $ 1,932 | $ 1,820 |
Note 8- Earnings Per Share (Det
Note 8- Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 8,796 | 1,137,015 |
Note 8 - Earnings Per Share - S
Note 8 - Earnings Per Share - Summary of Earnings and Weighted Average Number of Common Shares Used in Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic: | ||||||
Weighted average common shares outstanding (in shares) | 15,269,637 | 15,221,262 | 15,262,950 | 15,218,962 | ||
Net income attributable to National HealthCare Corporation | $ 13,711 | $ 21,269 | $ 22,461 | $ (2,791) | $ 34,980 | $ 19,670 |
Earnings per common share, basic (in dollars per share) | $ 0.90 | $ 1.48 | $ 2.29 | $ 1.29 | ||
Diluted: | ||||||
Weighted average common shares outstanding (in shares) | 15,269,637 | 15,221,262 | 15,262,950 | 15,218,962 | ||
Effects of dilutive instruments (in shares) | 83,065 | 7,043 | 75,570 | 5,996 | ||
Weighted average common shares outstanding (in shares) | 15,352,702 | 15,228,305 | 15,338,520 | 15,224,958 | ||
Net income attributable to National HealthCare Corporation | $ 13,711 | $ 21,269 | $ 22,461 | $ (2,791) | $ 34,980 | $ 19,670 |
Earnings per common share, diluted (in dollars per share) | $ 0.89 | $ 1.47 | $ 2.28 | $ 1.29 |
Note 9 - Investments in Marke_3
Note 9 - Investments in Marketable Securities (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Equity Securities Fv Ni Gross Unrealized Gain | $ 116,851,000 | $ 116,851,000 | $ 110,081,000 | ||
Equity Securities Fv Ni Gross Unrealized Loss | 20,000 | 20,000 | 34,000 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss), Total | (54,000) | $ 12,448,000 | 6,784,000 | $ (3,069,000) | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2,907,000 | 2,907,000 | 335,000 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 187,000 | 187,000 | 3,809,000 | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | 0 | $ 0 | |||
Proceeds from Sale of Debt Securities, Available-for-sale | 30,103,000 | 4,399,000 | |||
Realized Investment Gains (Losses), Total | 0 | 25,000 | |||
Proceeds from Sale and Maturity of Marketable Securities, Total | $ 0 | $ 0 |
Note 9 - Investments in Marke_4
Note 9 - Investments in Marketable Securities - Marketable Securities and Restricted Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted investments available for sale, amortized cost | $ 152,851 | $ 176,067 |
Restricted investments available for sale, fair value | 155,571 | 172,593 |
Investments available for sale, amortized cost | 183,027 | 206,243 |
Investments available for sale, fair value | 302,578 | 312,816 |
Equity Securities [Member] | ||
Unrestricted investments available for sale, amortized cost | 30,176 | 30,176 |
Unrestricted investments available for sale, fair value | 147,007 | 140,223 |
Corporate Debt Securities [Member] | ||
Restricted investments available for sale, amortized cost | 61,747 | 69,439 |
Restricted investments available for sale, fair value | 63,326 | 67,632 |
Collateralized Mortgage Backed Securities [Member] | ||
Restricted investments available for sale, amortized cost | 59,632 | 62,772 |
Restricted investments available for sale, fair value | 60,358 | 62,068 |
US Government Corporations and Agencies Securities [Member] | ||
Restricted investments available for sale, amortized cost | 9,866 | 22,038 |
Restricted investments available for sale, fair value | 9,974 | 21,457 |
US States and Political Subdivisions Debt Securities [Member] | ||
Restricted investments available for sale, amortized cost | 21,606 | 21,818 |
Restricted investments available for sale, fair value | $ 21,913 | $ 21,436 |
Note 9 - Investments in Marke_5
Note 9 - Investments in Marketable Securities - Available for Sale Marketable Equity Securities (Details) - NHI Common Stock [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
NHI Common Stock, Shares (in shares) | 1,630,642 | 1,630,642 |
NHI Common Stock, Cost | $ 24,734 | $ 24,734 |
NHI Common Stock, Fair Value | $ 127,239 | $ 123,179 |
Note 9 - Investments in Marke_6
Note 9 - Investments in Marketable Securities - Amortized Cost and Estimated Fair Value of Debt Securities as Available for Sale (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Within 1 year, cost | $ 9,573,000 | $ 11,448,000 |
Within 1 year, fair value | 9,588,000 | 11,401,000 |
1 to 5 years, cost | 92,116,000 | 98,487,000 |
1 to 5 years, fair value | 93,733,000 | 97,430,000 |
6 to 10 years, cost | 51,162,000 | 64,932,000 |
6 to 10 years, fair value | 52,250,000 | 62,527,000 |
Over 10 years, cost | 0 | 1,200,000 |
Over 10 years, fair value | 0 | 1,235,000 |
Cost | 152,851,000 | 176,067,000 |
Fair Value | $ 155,571,000 | $ 172,593,000 |
Note 10 - Fair Value Measurem_3
Note 10 - Fair Value Measurements - Summary of Fair Value Measurements by Level (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Restricted cash and cash equivalents | $ 36,160,000 | $ 9,549,000 | |
Available-for-sale securities | 155,571,000 | $ 172,593,000 | |
Corporate Debt Securities [Member] | |||
Available-for-sale securities | 63,326,000 | 67,632,000 | |
Collateralized Mortgage Backed Securities [Member] | |||
Available-for-sale securities | 60,358,000 | 62,068,000 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Available-for-sale securities | 21,913,000 | 21,436,000 | |
Fair Value, Recurring [Member] | |||
Cash and cash equivalents | 29,746,000 | 43,247,000 | |
Restricted cash and cash equivalents | 36,160,000 | 11,673,000 | |
Total financial assets | 368,484,000 | 367,736,000 | |
Fair Value, Recurring [Member] | Equity Securities [Member] | |||
Available-for-sale securities | 147,007,000 | 140,223,000 | |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | |||
Available-for-sale securities | 63,326,000 | 67,632,000 | |
Fair Value, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Available-for-sale securities | 60,358,000 | ||
Fair Value, Recurring [Member] | Asset-backed Securities [Member] | |||
Available-for-sale securities | 62,068,000 | ||
Fair Value, Recurring [Member] | US Treasury Securities [Member] | |||
Available-for-sale securities | 9,974,000 | 21,457,000 | |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Available-for-sale securities | 21,913,000 | 21,436,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Cash and cash equivalents | 29,746,000 | 43,247,000 | |
Restricted cash and cash equivalents | 36,160,000 | 11,673,000 | |
Total financial assets | 271,646,000 | 264,521,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | |||
Available-for-sale securities | 147,007,000 | 140,223,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | |||
Available-for-sale securities | 48,759,000 | 47,921,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Available-for-sale securities | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member] | |||
Available-for-sale securities | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | |||
Available-for-sale securities | 9,974,000 | 21,457,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
Total financial assets | 96,838,000 | 103,215,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | |||
Available-for-sale securities | 14,567,000 | 19,711,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Available-for-sale securities | 60,358,000 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | |||
Available-for-sale securities | 62,068,000 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Available-for-sale securities | $ 21,913,000 | $ 21,436,000 |
Note 11 - Long-term Debt (Detai
Note 11 - Long-term Debt (Details Textual) - Bank of America [Member] - USD ($) | 1 Months Ended | |
Oct. 31, 2015 | Jun. 30, 2019 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 110,000,000 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | |
Base Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.40% |
Note 11 - Long-term Debt - Summ
Note 11 - Long-term Debt - Summary of Long-term Debt (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Long-term debt | $ 55,000,000 | $ 55,000,000 |
Less current portion | 0 | 0 |
Total long-term debt | $ 55,000,000 | 55,000,000 |
Line of Credit [Member] | ||
Long-term debt, weighted average interest rate | 3.80% | |
Long-term debt, maturities | 2020 | |
Long-term debt | $ 55,000,000 | $ 55,000,000 |
Note 12 - Stock Repurchase Pr_2
Note 12 - Stock Repurchase Program (Details Textual) - Common Stock [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Aug. 31, 2018 | |
Stock Repurchase Program, Authorized Amount | $ 25,000,000 | |
Stock Repurchased and Retired During Period, Shares | 10,396 | |
Stock Repurchased and Retired During Period, Value | $ 872,000 |
Note 13 - Stock-based Compens_3
Note 13 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expense | $ 684,000 | $ 749,000 | $ 1,108,000 | $ 1,177,000 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 4,520,000 | $ 4,520,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |
Note 13 - Stock-based Compens_4
Note 13 - Stock-based Compensation - Summary of Assumptions Used to Value Options Granted (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Risk–free interest rate | 2.30% | 2.46% |
Expected volatility | 17.40% | 16.10% |
Expected life (Year) | 2 years 3 months 18 days | 3 years |
Expected dividend yield | 2.73% | 3.29% |
Note 13 - Stock-based Compens_5
Note 13 - Stock-based Compensation - Summary of Options Outstanding (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Options outstanding, shares (in shares) | shares | 1,163,381 | 1,239,407 |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 71.16 | $ 71.19 |
Options granted, shares (in shares) | shares | 53,796 | 110,265 |
Options granted, weighted average exercise price (in dollars per share) | $ / shares | $ 77.89 | $ 61.39 |
Options exercised, shares (in shares) | shares | (332,852) | (68,291) |
Options exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 71.56 | $ 54.31 |
Options cancelled, shares (in shares) | shares | (60,000) | (118,000) |
Options cancelled, weighted average exercise price (in dollars per share) | $ / shares | $ 72.94 | $ 72.11 |
Options outstanding, shares (in shares) | shares | 824,325 | 1,163,381 |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 71.31 | $ 71.16 |
Options outstanding, aggregate intrinsic value | $ | $ 8,115,000 | |
Options exercisable, shares (in shares) | shares | 209,029 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 68.05 | |
Options exercisable, aggregate intrinsic value | $ | $ 2,739,000 |
Note 13 - Stock-based Compens_6
Note 13 - Stock-based Compensation - Options Outstanding by Exercise Price Range (Details) | 6 Months Ended |
Jun. 30, 2019$ / shares | |
Weighted average exercise price (in dollars per share) | $ 71.31 |
Weighted average remaining contractual life (Year) | 2 years 9 months 18 days |
Exercise Price Range 1 [Member] | |
Exercise prices, lower range (in dollars per share) | $ 60.73 |
Exercise prices, upper range (in dollars per share) | 62.78 |
Weighted average exercise price (in dollars per share) | $ 61.81 |
Weighted average remaining contractual life (Year) | 2 years 6 months |
Exercise Price Range 2 [Member] | |
Exercise prices, lower range (in dollars per share) | $ 72.94 |
Exercise prices, upper range (in dollars per share) | 77.92 |
Weighted average exercise price (in dollars per share) | $ 73.33 |
Weighted average remaining contractual life (Year) | 2 years 9 months 18 days |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Expense (Benefit), Total | $ 4,725,000 | $ 7,892,000 | $ 12,117,000 | $ 8,092,000 |
Effective Income Tax Rate Reconciliation, Percent, Total | 25.70% | 26.10% | 25.80% | 29.40% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount, Total | $ 95,000 | $ 112,000 | $ 295,000 | |
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Amount | $ (47,000) | $ (22,000) | (275,000) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount, Total | $ 105,000 | $ 881,000 | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent, Total | 3.20% | |||
Open Tax Year | 2015 |
Note 15 - Contingencies and C_2
Note 15 - Contingencies and Commitments (Details Textual) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Self Insurance Reserve | $ 97,291,000 | $ 96,024,000 |
Direct Business Coverage Statutory Limits | $ 1,000,000 | |
Loss Contingency, Pending Claims, Number, Ending Balance | 65 | |
Primary Insurance Coverage, Amount Per Incident | $ 1,000,000 | |
Primary Insurance Coverage, Amount Per Location | 3,000,000 | |
Annual Excess Coverage | 9,000,000 | $ 9,000,000 |
National [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000,000 | |
Long-term Line of Credit, Total | $ 0 |