National HealthCare Corporation (NYSE American: NHC) turned in a positive 2017 with the help of the recent Republican-led tax overhaul.
The Murfreesboro, Tenn.-based skilled nursing provider announced Tuesday that it logged net income of $56.2 million for the year ended December, a boost of 11.2% from NHC’s performance in 2016.
Last year’s performance included an $8.5 million positive adjustment for tax burdens under the Tax Cuts and Jobs Act of 2017, the company said, along with operating losses associated with two new skilled nursing facilities and three assisted living facilities brought on line during 2016 and 2017.
Without those mitigating factors, NHC said, the company would have seen net income of $51.5 million for the year.
The full effects of the sweeping tax overhaul, passed just before Christmas, remain to be seen, though analysts predicted that the legislation could provide tax breaks for real estate investment trusts (REITs) and other potential long-term care investors.
The provider, which operates 76 SNFs with a total of about 9,500 beds, also saw gains in diluted earnings per share, which rose 11.1% to $3.69 in 2017.
NHC also operates 24 assisted living communities, 36 home health programs, and five independent-living facilities. The company’s stock fell nearly 7% in Tuesday’s trading, dropping to $58.00 per share.
Written by Alex Spanko