National HealthCare Corporation (NHC) SEC Filings & Earnings Calls

Revenue growth partially dependent on acquisition; organic growth not separately disclosed.

“The increase in net operating revenues ... primarily related to the June 1, 2026 acquisition of five skilled nursing facilities.” · word for word

Unrealized gains on marketable equity securities create earnings volatility.

“Unrealized gains/(losses) on marketable equity securities $915,000 vs ($5,061,000) prior year”

Labor shortage and wage inflation

“Due to America’s healthcare labor shortage, the challenge of maintaining desirable patient census levels has been amplified.” · word for word

Medicaid budget pressure

“State Medicaid plans subject to budget constraints are of particular concern to us.” · word for word

Increased leverage from acquisition financing.

“NHC drew down the entire $475 million under the senior unsecured term loan facility and $55 million under the senior unsecured revolving credit facility.”

Increased debt obligations and financial covenants.

“The Credit Agreement contains certain customary affirmative and negative covenants, including ... maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio.”

Related-party transaction with potential conflicts of interest.

“Seller, which is wholly owned by the National Health Corporation Leveraged Employee Stock Ownership Plan (the “ESOP”), was formed in 1986 and serves as NHC’s administrative services affiliate and contractor.”

Unrealized gains on marketable equity securities create earnings volatility.

“Unrealized gains on marketable equity securities $9,074 (2026) vs $10,982 (2025)”

Debt repayment reduced interest expense but may indicate limited leverage capacity.

“Current and long-term debt - $40,000 (zero debt at March 31, 2026 vs $40M at Dec 31, 2025)”

Medicare reimbursement risk

“Applied against the proposed 2.4% rate increase, a 3.6% system-wide reduction under this framework could represent a net negative reimbursement outcome.” · word for word

Labor cost pressure

“Salaries, wages, and benefits increased $6,944,000, or 3.0%, to $235,074,000 from $228,130,000.” · word for word

Significant financial commitment with non-refundable deposits.

“The Agreement provides that within five business days of the Effective Date, we are required to make a $5 million deposit ... which will be non-refundable to us (except as otherwise provided in the Agreement) after the expiration of a review period.”

Related party transactions with NHI and National

“As of December 31, 2025, we leased from NHI the real property of 28 skilled nursing facilities... Base rent expense under the NHI lease agreements for 2025... was $32,225,000.” · word for word

Professional liability claims increase

“We have also incurred unfavorable claims activity within our professional liability captive insurance company during 2025. The unfavorable claims activity resulted in additional other operating expenses of $17,563,000 for the year ended December 31, 2025 compared to the same period a year ago.” · word for word

Medicaid reimbursement dependency

“Any significant increase in our Medicaid population could have a material adverse effect on our financial position, results of operations and cash flow, especially if states operating these programs continue to limit, or more aggressively seek limits on, reimbursement rates or service levels.” · word for word

Labor shortage risk

“Although we continue to face workforce and labor shortages within all of our operations, we are working diligently to find solutions to reduce and eliminate agency nurse staffing expenses within our healthcare operations.” · word for word

Homecare Medicare Payment Cut

“CMS projects payments to home health agencies in fiscal year 2026 will decrease by 6.4% or $1.1 billion, relative to the prior year.” · word for word

Labor Shortage

“Due to America’s healthcare labor shortage, the challenge of maintaining desirable patient census levels has been amplified.” · word for word

Professional Liability Claims

“We also incurred unfavorable claims activity within our professional liability captive insurance company during the third quarter of 2025. The unfavorable claims activity resulted in additional other operating expenses of $4,219,000 for the third quarter of 2025 compared to the same period in the prior year.” · word for word