EX-99 2 ex99ern.htm PRESS RELEASE

Exhibit 99

For release: March 14, 2006

Contact: Gerald Coggin, Sr. VP of Corporate Relations

Phone: (615) 890-2020

NHC Reports 19.5% Increase in Net Income

MURFREESBORO, Tenn. -- National HealthCare Corporation (AMEX: NHC), a 34 year-old publicly traded long-term health care company, today announced after tax earnings for the year ended Dec. 31, 2005 of $28,635,000 or $2.34 per share basic compared to $23,972,000 or $2.05 per share basic for the year ended Dec. 31, 2004, an increase of 19.5% and 14.1%, respectively.

For the three months ended Dec. 31, 2005 net income was $9,846,000 compared to $8,777,000 in 2004, a 12.2% increase. Earnings per basic share was 80 cents compared to 75 cents last year. Revenues for the three months ended Dec. 31, 2005 totaled $139,613,000 compared to $151,032,000 for the last three months of 2004. Revenues in 2005 were $542,381,000 compared to $521,829,000 in 2004.

Our results for 2005 reflect continued strong occupancy, an approximate $4,200,000 increase in management fee collections over 2004, further reductions in outstanding debt and an increase in cash and marketable securities.

NHC operates for itself and third parties 74 long-term health care centers with 9,177 beds. NHC also operates 30 homecare programs, six independent living centers and 22 assisted living centers. NHC's other services include managed care specialty medical units, Alzheimer's units, hospice, rehabilitative services and accounting and financial services. Additional information including the company's most recent press releases may be obtained on NHC's Web site at www.NHCcare.com.

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q and 10-K, and include, among others, the following: liabilities and other claims asserted against us, including claims related to the 2003 fire and patient care liabilities, as well as the resolution of current litigation; availability of insurance and assets for indemnification; national and local economic conditions; including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including our compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; and other factors referenced or incorporated by reference in the S.E.C. filings. The risks included here are not exhaustive. All forward-looking statements represent NHC's best judgment as of the date of this release.

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NHC Reports 19.5% Increase in Net Income



Condensed Statements of Income
(in thousands except share and per share Three Months Ended Year Ended December 31
2005 2004 2005 2004
Revenues:
Net patient revenues $ 121,927 $ 138,476 $ 476,596 $ 464,671
Other revenues 17,686 12,556 65,785 57,158
Net revenues $ 139,613 $ 151,032 $ 542,381 $ 521,829
Costs and Expenses:
Salaries, wages and benefits $ 70,831 $ 76,065 $ 285,488 $ 276,114
Other operating 37,727 46,109 150,160 149,562
Write-off of notes receivable --- --- 1,000 ---
Rent 10,389 10,289 42,049 41,034
Depreciation and amortization 4,262 3,697 15,463 13,765
Interest 336 377 1,531 1,299
Total costs and expenses $ 123,545 $ 136,537 $ 495,691 $ 481,774
Income Before Income Taxes 16,068 14,495 46,690 40,055
Income Tax Provision 6,222 5,718 18,055 16,083
Net Income $ 9,846 $ 8,777 $ 28,635 $ 23,972
Earnings Per Share:
Basic $ .80 $ .75 $ 2.34 $ 2.05
Diluted $ .77 $ .72 $ 2.24 $ 1.95
Weighted average common shares outstanding
Basic 12,245,395 11,689,630 12,240,423 11,674,901
Diluted 12,857,138 12,149,242 12,789,994 12,281,181
Dividends declared per share .150 .125 .575 .500
Balance Sheet Data December December 31
(in thousands) 2005 2004
Cash and marketable securities $ 202,301 $ 168,721
Current assets 260,579 227,734
Total assets 410,625 373,117
Current liabilities 147,191 128,605
Long-term obligations 27,571 30,726
Deferred lease credit 6,154 5,452
Deferred revenue 25,465 25,112
Shareowners' equity 203,059 182,348

Selected Operating Statistics Quarter Ended December 31, Year Ended December 31,
2005 2004 2005 2004
Per Diems:
Medicare $321.50 $ 314.85 $311.75 $ 296.93
Medicaid 128.18 125.34 126.57 122.53
Private Pay and Other 187.24 184.24 189.95 183.21
Patient Days:
Medicare 89,401 83,557 355,107 326,203
Medicaid 302,583 309,547 1,198,352 1,243,544
Private Pay and Other 138.032 132,901 546,732 499,014
530,016 526,005 2,100,191 2,068,761
Average Per Diem $176.17 $ 170.33 $174.38 $ 164.66

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