NATIONAL HEALTHCARE CORP Earnings Per Share Disclosure
Note 7 – Earning Per Share
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 share and per share amounts):
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Basic: | ||||||||||||
| Weighted average common shares outstanding | 15,472,185 | 15,393,782 | 15,310,142 | |||||||||
| Net income attributable to common stockholders of National Healthcare Corporation | $ | 120,015 | $ | 101,927 | $ | 66,798 | ||||||
| Earnings per common share, basic | $ | 7.76 | $ | 6.62 | $ | 4.36 | ||||||
| Diluted: | ||||||||||||
| Weighted average common shares outstanding | 15,472,185 | 15,393,782 | 15,310,142 | |||||||||
| Dilutive effect of stock options | 174,153 | 204,746 | 67,201 | |||||||||
| Assumed average common shares outstanding | 15,646,338 | 15,598,528 | 15,377,343 | |||||||||
| Net income attributable to common stockholders of National Healthcare Corporation | $ | 120,015 | $ | 101,927 | $ | 66,798 | ||||||
| Earnings per common share, diluted | $ | 7.67 | $ | 6.53 | $ | 4.34 | ||||||
For the years ended December 31, 2025, 2024 and 2023, there were stock options excluded from the calculation of diluted weighted average shares of common stock outstanding.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.