The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the
Ensign(TM) group of companies, which provide post-acute healthcare
services and invest in the long-term healthcare industry, primarily
in skilled nursing and senior living facilities, announced
operating results for the second quarter of 2024, reporting GAAP
diluted earnings per share of $1.22 and adjusted earnings per
share(1) of $1.32, both for the quarter ended June 30, 2024.
Highlights Include:
- GAAP net income was $71.0 million, an increase of 11.0% over
the prior year quarter. Adjusted net income(1) was $76.4 million
for the quarter, an increase of 15.3%, over the prior year
quarter.
- GAAP diluted earnings per share for the quarter was $1.22, an
increase of 8.9% over the prior year quarter. Adjusted diluted
earnings per share(1) was $1.32, an increase of 13.8%, over the
prior year quarter.
- Same Facilities and Transitioning Facilities occupancy
increased by 2.8% and 4.3%, respectively, over the prior year
quarter and Same Facilities occupancy was 80.8% for the second
quarter of 2024.
- Same Facilities and Transitioning Facilities skilled services
revenue increased by 6.8% and 6.0%, respectively, over the prior
year quarter.
- Same Facilities and Transitioning Facilities managed care
revenue increased by 12.2% and 36.5%, respectively, over the prior
year quarter.
- Consolidated GAAP and adjusted revenue for the quarter were
$1.04 billion, an increase of 12.5% over the prior year
quarter.
- Total skilled services(2) revenue was $991.3 million for the
quarter, an increase of 12.1% over the prior year quarter. Total
skilled services(2) segment income was $122.2 million for the
quarter, an increase of 4.4% over the prior year quarter.
- Standard Bearer(2) revenue was $23.4 million for the quarter,
an increase of 17.3% over the prior year quarter. FFO was $14.5
million for the quarter, an increase of 9.5% over the prior year
quarter.
- See "Reconciliation of GAAP to
Non-GAAP Financial Information".
- Our Skilled Services and Standard
Bearer Segments are defined and outlined in Note 8 on Form
10-Q.
Operating Results
“We are thrilled to report another record
quarter and are excited about the continued momentum our teams have
created across our entire portfolio. We are in awe as our local
leaders continue to consistently drive outstanding clinical and
financial performance as they work together with their cluster
partners to practice proven operational principles,” said Barry
Port, Ensign’s Chief Executive Officer. “We are very pleased to see
growth over the prior year quarter in occupancy and skilled mix
days in our same store and transitioning operations, particularly
in our managed care population. In addition, our focus on ‘customer
second’ continues to ensure that our caregivers and their teams are
recognized for their amazing daily achievements, which has resulted
in lower turnover for the 11th quarter in a row and a decrease in
the use of staffing agencies for the 6th quarter in a row. All of
this has occurred while our teams have simultaneously been
assisting the newly acquired operations integrate into their local
clusters and begin the process of improving clinically and
financially,” Port added.
The Company also reported that same store
occupancy for the quarter reached 80.8%, which grew by 2.8% over
the prior year quarter. In addition, the Company noted that it saw
an increase in same store and transitioning skilled services
revenue during the quarter of 6.8% and 6.0%, respectively. Mr. Port
noted that he expects continued growth in same store occupancies
and emphasized the incredible amount of built-in upside as their
maturing operations move toward the occupancy levels of dozens of
the Company’s most mature same store operations, which are
consistently in the 90+ percent occupancy range. He also emphasized
that the Company’s consolidated occupancy represents enormous
organic growth potential and highlighted the Company’s model of
acquiring lower occupancy operations at very attractive prices,
which provides a significant long-term ramp with years of upside.
“As our operators continue to build on a solid foundation of strong
clinical results, cultural excellence, and sustainable real estate
expenses, we are confident that they will continue to capitalize on
the occupancy and skilled mix growth inherent in our portfolio,
which will allow us to consistently achieve the financial results
that we have delivered over time,” Port said.
Speaking to the Company’s growth, Chad Keetch,
Ensign’s Chief Investment Officer and Executive Vice President
said, “As we expected, we continued to add to our growing portfolio
and are very excited about the ten new operations and six real
estate assets we added during the quarter, bringing the number of
operations acquired during the year to 15. We continue to see a
very healthy pipeline of new acquisition opportunities and are
making progress on several additions that we expect to close in the
third and fourth quarters. Our scalable, decentralized growth model
is not dependent on a centralized team of experts, but instead is
driven by local leadership. In times like these when deal
opportunities are abundant, we rely on a proven set of deal
criteria that ensure we remain disciplined and grow in a healthy
way. One of the foundational elements of our consistent performance
has been to insist that the prices we pay will result in a cost
structure that allows us to achieve high margins over a long period
of time. However, we don’t grow just for the sake of growth or
acquire revenue or buy earnings. Accordingly, we will sacrifice
short term margins and metrics growth for the long-term built in
organic upside. We have and will continue to grow when we see deals
that will be accretive to shareholders in both the near- and
long-term.”
Mr. Port added, “Due to our solid skilled mix
and occupancy growth, as well as continued strength from our recent
acquisitions, we are raising and narrowing our annual 2024 earnings
guidance to between $5.38 to $5.50 per diluted share, up from $5.29
to $5.47 per diluted share. This new midpoint of our 2024 earnings
guidance represents an increase of more than 14% of our 2023
results and is 31% higher than our 2022 results. We are also
increasing our annual revenue guidance to between $4.20 billion to
$4.22 billion, up from our previous guidance of $4.13 billion to
$4.17 billion. We are excited about the upcoming year and are
confident that our partners will continue to manage and innovate
while balancing the addition of newly acquired operations.”
Speaking to the Company’s financial health,
Suzanne Snapper, Ensign’s Executive Vice President and Chief
Financial Officer reported that the Company’s liquidity remains
strong with approximately $477.3 million of cash on hand and $573.1
million of available capacity under its line-of-credit. Ms. Snapper
also indicated that, “Management’s annual guidance is based on
diluted weighted average common shares outstanding of approximately
58.5 million and a 25.0% tax rate. In addition, the guidance
assumes, among other things, normalized health insurance costs and
management’s current expectations regarding reimbursement rates. It
also excludes certain charges that arise outside of the business,
acquisition related costs and share-based compensation.”
A discussion of the Company's use of non-GAAP
financial measures is set forth below. A reconciliation of net
income to adjusted EBT, EBITDA, adjusted EBITDAR, adjusted EBITDA
and FFO for Standard Bearer, as well as, a reconciliation of GAAP
earnings per share, net income to adjusted net income and adjusted
net earnings per share appear in the financial data portion of this
release. More complete information is contained in the company’s
Quarterly Report on Form 10-Q for the period ended June 30, 2024,
which is expected to be filed with the SEC today and can be viewed
on the Company’s website at http://www.ensigngroup.net.
Growth and Real Estate
Highlights
Mr. Keetch added additional commentary on the
Company’s continued acquisition activity. “We were very happy to
complete several new acquisitions during the quarter across 7 of
our 14 states. We continue to prioritize growth in our established
geographies as it allows our clusters to work together with their
acute care partners to provide a comprehensive solution to their
healthcare needs. In particular, we are very excited to grow in
Arizona where we have deep and long-standing relationships with the
largest hospital systems in the state. However, we are also excited
to build clusters in new states or in markets where we have
significant room to add more density and expect additional growth
in some of our newer markets in the next several months.
The recent acquisitions include the following
leased operations:
- Creekview Health and Rehabilitation, a 78-bed skilled nursing
facility located in Knoxville, Tennessee;
- Foothills Transitional Care and Rehabilitation, a 135-bed
skilled nursing facility located in Maryville, Tennessee;
- Midlothian Healthcare Center, a 120-bed skilled nursing
facility located in Midlothian, Texas; and
- The Springs at St. Andrews Village, a 58-bed skilled nursing
facility located in Aurora, Colorado
Standard Bearer also announced the following
real estate acquisitions, all of which are operated by an
Ensign-affiliate effective as of the acquisition date:
- River Park Post Acute and Elmwood Senior Living, a healthcare
campus with 66 skilled nursing beds, 45 assisted living units and
119 independent living units located in Chandler, Arizona;
- Hillside Village of De Soto Rehabilitation and Nursing Center,
a healthcare campus with 49 skilled nursing beds and 38 assisted
living units, located in De Soto, Kansas;
- Spencer Post Acute Rehabilitation Center, an 82-bed skilled
nursing facility located in Spencer, Iowa;
- South Davis Specialty Care, a 95-bed skilled nursing operation,
located in Bountiful, Utah;
- Western Peaks Specialty Hospital and South Davis Community
Hospital Child Care Center, a 33-bed long-term acute care hospital
(LTACH) and 10 pediatric LTAC beds and a day child care center
located in Bountiful, Utah; and
- Wellsprings of Gilbert, a 32 bed skilled nursing facility
located in Gilbert, Arizona;
Ensign's growing portfolio consists of 312
healthcare operations, 29 of which also include senior living
operations, across fourteen states. Ensign now owns 120 real estate
assets, 90 of which it operates. Keetch noted that Ensign’s overall
strategy will continue to include both leasing and acquiring real
estate and that the Company is actively looking for performing and
underperforming operations in several states.
The Company continues to provide additional
disclosure on Standard Bearer, which is comprised of 115 owned
properties. Of these assets, 86 are leased to an Ensign-affiliated
operator and 30 are leased to third-party operators. Keetch noted
that each of these properties are subject to triple-net, long-term
leases and generated rental revenue of $23.4 million for the
quarter, of which $19.2 million was derived from Ensign affiliated
operations. For the quarter, Ensign reported $14.5 million in
FFO.
The Company paid a quarterly cash dividend of
$0.06 per share of Ensign common stock. Ms. Snapper noted that the
Company’s liquidity remains strong and that the Company plans to
continue its long history of paying dividends into the future,
noting that in December of 2023 the Company increased the annual
dividend for the 21st consecutive year.
Conference Call
A live webcast will be held Friday, July 26,
2024 at 10:00 a.m. Pacific time (1:00 p.m. Eastern time) to discuss
Ensign’s second quarter financial results. To listen to the
webcast, or to view any financial or statistical information
required by SEC Regulation G, please visit the Investors Relations
section of Ensign’s website at http://investor.ensigngroup.net. The
webcast will be recorded and will be available for replay via the
website until 5:00 p.m. Pacific time on Friday, August 30,
2024.
About Ensign™
The Ensign Group, Inc.'s independent
subsidiaries provide a broad spectrum of skilled nursing and senior
living services, physical, occupational and speech therapies and
other rehabilitative and healthcare services at 312 healthcare
facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas,
Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah,
Washington and Wisconsin. As part of its investment strategy, the
Company will also acquire, lease and own healthcare real estate to
service the post-acute care continuum through acquisition and
investment opportunities in healthcare properties. Ensign’s new
business venture operating subsidiaries also offer several other
post-acute-related services, including mobile x-ray, emergency and
non-emergency transportation services, long-term care pharmacy and
other consulting services also across several states. Each of these
operations is operated by a separate, independent subsidiary that
has its own management, employees and assets. References herein to
the consolidated "Company" and "its" assets and activities, as well
as the use of the terms "we," "us," "its" and similar verbiage, are
not meant to imply that The Ensign Group, Inc. has direct operating
assets, employees or revenue, or that any of the facilities, the
Service Center, Standard Bearer or the captive insurance subsidiary
are operated by the same entity. More information about Ensign is
available at http://www.ensigngroup.net.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995:
This press release contains, and the related
conference call and webcast will include forward-looking statements
that are based on management’s current expectations, assumptions
and beliefs about its business, financial performance, operating
results, the industry in which it operates and other future events.
Forward-looking statements can often be identified by words such as
"anticipates," "expects," "intends," "plans," "predicts,"
"believes," "seeks," "estimates," "may," "will," "should," "would,"
"could," "potential," "continue," "ongoing," similar expressions,
and variations or negatives of these words. These forward-looking
statements include, but are not limited to, statements regarding
growth prospects, future operating and financial performance, and
acquisition activities. They are not guarantees of future results
and are subject to risks, uncertainties and assumptions that could
cause actual results to materially and adversely differ from those
expressed in any forward-looking statement.
These risks and uncertainties relate to the
Company’s business, its industry and its common stock and include:
reduced prices and reimbursement rates for its services; its
ability to acquire, develop, manage or improve operations, its
ability to manage its increasing borrowing costs as it incurs
additional indebtedness to fund the acquisition and development of
operations; its ability to access capital on a cost-effective basis
to continue to successfully implement its growth strategy; its
operating margins and profitability could suffer if it is unable to
grow and manage effectively its increasing number of operations;
competition from other companies in the acquisition, development
and operation of facilities; its ability to defend claims and
lawsuits, including professional liability claims alleging that our
services resulted in personal injury, and other regulatory-related
claims; and the application of existing or proposed government
regulations, or the adoption of new laws and regulations, that
could limit its business operations, require it to incur
significant expenditures or limit its ability to relocate its
operations if necessary. Additionally, our business and operations
continue to be impacted by the unprecedented nature of the changes
in the regulations and environment, as such, we are unable to
predict the full extent and duration of the financial impact of
these changes on our business, financial condition and results of
operations. Therefore, our actual results could differ materially
and adversely from those expressed in any forward-looking
statements as a result of various factors. Readers should not place
undue reliance on any forward-looking statements and are encouraged
to review the Company’s periodic filings with the Securities and
Exchange Commission, including its Form 10-Q and 10-K, for a more
complete discussion of the risks and other factors that could
affect Ensign’s business, prospects and any forward-looking
statements. Except as required by the federal securities laws,
Ensign does not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, changing circumstances or any other
reason after the date of this press release.
Contact Information
Investor/Media Relations, The Ensign Group, Inc., (949) 487-9500,
ir@ensigngroup.net.
SOURCE: The Ensign Group, Inc.
THE ENSIGN
GROUP, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
|
|
|
|
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data) |
REVENUE |
|
|
|
|
|
|
|
Service revenue |
$ |
1,030,574 |
|
|
$ |
916,101 |
|
|
$ |
2,035,059 |
|
|
$ |
1,798,019 |
|
Rental revenue |
|
5,711 |
|
|
|
5,244 |
|
|
|
11,398 |
|
|
|
10,167 |
|
TOTAL REVENUE |
$ |
1,036,285 |
|
|
$ |
921,345 |
|
|
$ |
2,046,457 |
|
|
$ |
1,808,186 |
|
Expense: |
|
|
|
|
|
|
|
Cost of services |
|
820,360 |
|
|
|
722,685 |
|
|
|
1,619,623 |
|
|
|
1,419,011 |
|
Rent—cost of services |
|
53,272 |
|
|
|
49,760 |
|
|
|
105,148 |
|
|
|
96,397 |
|
General and administrative expense |
|
56,194 |
|
|
|
53,430 |
|
|
|
113,352 |
|
|
|
105,321 |
|
Depreciation and amortization |
|
20,488 |
|
|
|
17,596 |
|
|
|
40,145 |
|
|
|
34,708 |
|
TOTAL EXPENSES |
$ |
950,314 |
|
|
$ |
843,471 |
|
|
$ |
1,878,268 |
|
|
$ |
1,655,437 |
|
Income from operations |
|
85,971 |
|
|
|
77,874 |
|
|
|
168,189 |
|
|
|
152,749 |
|
Other income
(expense): |
|
|
|
|
|
|
|
Interest expense |
|
(2,040 |
) |
|
|
(2,023 |
) |
|
|
(4,004 |
) |
|
|
(4,059 |
) |
Interest income |
|
7,084 |
|
|
|
3,542 |
|
|
|
13,544 |
|
|
|
7,526 |
|
Other income |
|
1,049 |
|
|
|
1,660 |
|
|
|
3,933 |
|
|
|
3,219 |
|
Other income, net |
|
6,093 |
|
|
|
3,179 |
|
|
$ |
13,473 |
|
|
$ |
6,686 |
|
Income before provision for income taxes |
|
92,064 |
|
|
|
81,053 |
|
|
|
181,662 |
|
|
|
159,435 |
|
Provision for income taxes |
|
20,883 |
|
|
|
16,963 |
|
|
|
41,521 |
|
|
|
35,376 |
|
NET INCOME |
$ |
71,181 |
|
|
$ |
64,090 |
|
|
$ |
140,141 |
|
|
$ |
124,059 |
|
Less: net income attributable to noncontrolling interests |
|
174 |
|
|
|
97 |
|
|
|
299 |
|
|
|
214 |
|
Net income attributable to The Ensign Group,
Inc. |
$ |
71,007 |
|
|
$ |
63,993 |
|
|
$ |
139,842 |
|
|
$ |
123,845 |
|
|
|
|
|
|
|
|
|
NET
INCOME PER SHARE ATTRIBUTABLE TO THE ENSIGN GROUP
INC. |
|
|
|
|
|
|
|
Basic |
$ |
1.26 |
|
|
$ |
1.15 |
|
|
$ |
2.48 |
|
|
$ |
2.23 |
|
Diluted |
$ |
1.22 |
|
|
$ |
1.12 |
|
|
$ |
2.41 |
|
|
$ |
2.17 |
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
Basic |
|
56,544 |
|
|
|
55,611 |
|
|
|
56,441 |
|
|
|
55,456 |
|
Diluted |
|
58,013 |
|
|
|
57,260 |
|
|
|
57,969 |
|
|
|
57,190 |
|
THE ENSIGN
GROUP, INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands) |
|
|
|
|
|
June 30,
2024 |
|
December 31,
2023 |
|
|
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
477,336 |
|
$ |
509,626 |
Accounts receivable—less allowance for doubtful accounts of $9,460
and $9,348 at June 30, 2024 and December 31, 2023,
respectively |
|
547,121 |
|
|
485,039 |
Investments—current |
|
24,126 |
|
|
17,229 |
Prepaid income taxes |
|
18,798 |
|
|
3,830 |
Prepaid expenses and other current assets |
|
47,699 |
|
|
31,206 |
Total current assets |
$ |
1,115,080 |
|
$ |
1,046,930 |
Property and equipment, net |
|
1,177,822 |
|
|
1,090,771 |
Right-of-use assets |
|
1,842,613 |
|
|
1,756,430 |
Insurance subsidiary deposits and investments |
|
112,756 |
|
|
92,687 |
Deferred tax assets |
|
66,572 |
|
|
67,124 |
Restricted and other assets |
|
38,551 |
|
|
40,205 |
Intangible assets, net |
|
6,703 |
|
|
6,525 |
Goodwill |
|
77,241 |
|
|
76,869 |
TOTAL ASSETS |
$ |
4,437,338 |
|
$ |
4,177,541 |
LIABILITIES AND EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
88,652 |
|
$ |
92,811 |
Accrued wages and related liabilities |
|
322,928 |
|
|
332,568 |
Lease liabilities—current |
|
89,176 |
|
|
82,526 |
Accrued self-insurance liabilities—current |
|
61,356 |
|
|
54,664 |
Other accrued liabilities |
|
164,640 |
|
|
168,228 |
Current maturities of long-term debt |
|
4,017 |
|
|
3,950 |
Total current liabilities |
$ |
730,769 |
|
$ |
734,747 |
Long-term debt—less current maturities |
|
143,559 |
|
|
145,497 |
Long-term lease liabilities—less current portion |
|
1,720,250 |
|
|
1,639,326 |
Accrued self-insurance liabilities—less current portion |
|
123,835 |
|
|
111,246 |
Other
long-term liabilities |
|
55,854 |
|
|
49,408 |
Total equity |
|
1,663,071 |
|
|
1,497,317 |
TOTAL LIABILITIES AND EQUITY |
$ |
4,437,338 |
|
$ |
4,177,541 |
THE ENSIGN
GROUP, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS |
|
The following table presents selected data from our condensed
consolidated statements of cash flows for the periods
presented: |
|
|
|
Six Months
Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
NET CASH PROVIDED BY/(USED IN): |
(In thousands) |
Operating activities |
$ |
112,249 |
|
|
$ |
168,082 |
|
Investing activities |
|
(144,564 |
) |
|
|
(62,435 |
) |
Financing activities |
|
25 |
|
|
|
(1,943 |
) |
Net (decrease) increase in cash and cash
equivalents |
|
(32,290 |
) |
|
|
103,704 |
|
Cash and
cash equivalents beginning of period |
|
509,626 |
|
|
|
316,270 |
|
Cash and cash equivalents at end of period |
$ |
477,336 |
|
|
$ |
419,974 |
|
THE ENSIGN
GROUP, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION(In thousands, except per share
data) |
|
RECONCILIATION OF GAAP TO NON-GAAP NET
INCOME |
The following table reconciles GAAP net income to
Non-GAAP net income for the periods presented: |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income
attributable to The Ensign Group, Inc. |
$ |
71,007 |
|
|
$ |
63,993 |
|
|
$ |
139,842 |
|
|
$ |
123,845 |
|
Non-GAAP adjustments |
|
|
|
|
|
|
|
Stock-based compensation expense(a) |
|
8,985 |
|
|
|
8,881 |
|
|
|
17,223 |
|
|
|
15,454 |
|
Litigation(b) |
|
(1,634 |
) |
|
|
(885 |
) |
|
|
(870 |
) |
|
|
(818 |
) |
Cost of services - impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
1,849 |
|
|
|
— |
|
Cost of services - business interruption recoveries |
|
— |
|
|
|
(750 |
) |
|
|
— |
|
|
|
(750 |
) |
Cost of services - acquisition related costs(c) |
|
165 |
|
|
|
112 |
|
|
|
279 |
|
|
|
572 |
|
General and administrative - costs incurred related to system
implementations |
|
2,357 |
|
|
|
60 |
|
|
|
2,433 |
|
|
|
875 |
|
Depreciation and amortization - patient base(d) |
|
174 |
|
|
|
— |
|
|
|
213 |
|
|
|
47 |
|
Provision for income taxes on Non-GAAP adjustments(e) |
|
(4,645 |
) |
|
|
(5,155 |
) |
|
|
(9,176 |
) |
|
|
(8,328 |
) |
Non-GAAP Net Income |
$ |
76,409 |
|
|
$ |
66,256 |
|
|
$ |
151,793 |
|
|
$ |
130,897 |
|
|
|
|
|
|
|
|
|
Average number of diluted shares outstanding |
|
58,013 |
|
|
|
57,260 |
|
|
|
57,969 |
|
|
|
57,190 |
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
$ |
1.22 |
|
|
$ |
1.12 |
|
|
$ |
2.41 |
|
|
$ |
2.17 |
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share |
$ |
1.32 |
|
|
$ |
1.16 |
|
|
$ |
2.62 |
|
|
$ |
2.29 |
|
|
|
|
|
|
|
|
|
Footnotes: |
|
|
|
|
|
|
|
(a) Represents stock-based compensation expense incurred. |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cost of services |
$ |
5,918 |
|
|
$ |
5,911 |
|
|
$ |
11,319 |
|
|
$ |
10,218 |
|
General and administrative |
|
3,067 |
|
|
|
2,970 |
|
|
|
5,904 |
|
|
|
5,236 |
|
Total Non-GAAP adjustment |
$ |
8,985 |
|
|
$ |
8,881 |
|
|
$ |
17,223 |
|
|
$ |
15,454 |
|
|
|
|
|
|
|
|
|
(b) Represents
specific proceedings arising outside of the ordinary course of
business and legal adjustments associated with a favorable
overturned verdict. |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cost of services |
$ |
(1,634 |
) |
|
$ |
(885 |
) |
|
$ |
(1,634 |
) |
|
$ |
(818 |
) |
General and administrative |
|
— |
|
|
|
— |
|
|
|
764 |
|
|
|
— |
|
Total Non-GAAP adjustment |
$ |
(1,634 |
) |
|
$ |
(885 |
) |
|
$ |
(870 |
) |
|
$ |
(818 |
) |
|
|
|
|
|
|
|
|
(c) Represents
costs incurred to acquire operations that are not
capitalizable. |
(d) Represents
amortization expenses related to patient base intangible assets at
newly acquired skilled nursing and senior living facilities. |
(e) Represents an
adjustment to the provision for income tax to our historical year
to date effective tax rate of 25.0%. |
THE ENSIGN
GROUP, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION(In thousands) |
|
The table below reconciles net income to EBITDA,
Adjusted EBITDA and Adjusted EBITDAR for the periods
presented: |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Consolidated Statements of Income Data: |
|
|
|
|
|
|
|
Net income |
$ |
71,181 |
|
|
$ |
64,090 |
|
|
$ |
140,141 |
|
|
$ |
124,059 |
|
Less: Net income attributable to noncontrolling interests |
|
174 |
|
|
|
97 |
|
|
|
299 |
|
|
|
214 |
|
Interest income |
|
7,084 |
|
|
|
3,542 |
|
|
|
13,544 |
|
|
|
7,526 |
|
Add: Provision for income taxes |
|
20,883 |
|
|
|
16,963 |
|
|
|
41,521 |
|
|
|
35,376 |
|
Depreciation and amortization |
|
20,488 |
|
|
|
17,596 |
|
|
|
40,145 |
|
|
|
34,708 |
|
Interest expense |
|
2,040 |
|
|
|
2,023 |
|
|
|
4,004 |
|
|
|
4,059 |
|
EBITDA |
$ |
107,334 |
|
|
$ |
97,033 |
|
|
$ |
211,968 |
|
|
$ |
190,462 |
|
Adjustments to EBITDA: |
|
|
|
|
|
|
|
Stock-based compensation expense |
|
8,985 |
|
|
|
8,881 |
|
|
|
17,223 |
|
|
|
15,454 |
|
Litigation(a) |
|
(1,634 |
) |
|
|
(885 |
) |
|
|
(870 |
) |
|
|
(818 |
) |
Impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
1,849 |
|
|
|
— |
|
Business interruption recoveries |
|
— |
|
|
|
(750 |
) |
|
|
— |
|
|
|
(750 |
) |
Acquisition related costs(b) |
|
165 |
|
|
|
112 |
|
|
|
279 |
|
|
|
572 |
|
Costs incurred related to system implementations |
|
2,357 |
|
|
|
60 |
|
|
|
2,433 |
|
|
|
875 |
|
ADJUSTED EBITDA |
$ |
117,207 |
|
|
$ |
104,451 |
|
|
$ |
232,882 |
|
|
$ |
205,795 |
|
Rent—cost of services |
|
53,272 |
|
|
|
49,760 |
|
|
|
105,148 |
|
|
|
96,397 |
|
ADJUSTED EBITDAR |
$ |
170,479 |
|
|
|
|
$ |
338,030 |
|
|
|
|
|
|
|
|
|
|
|
(a) Litigation relates to specific proceedings
arising outside of the ordinary course of business and legal
adjustments associated with a favorable overturned verdict. (b)
Costs incurred to acquire operations that are not
capitalizable.
The following table reconciles net income to
EBITDA and Adjusted EBITDA for the periods presented, with the
presentation recast to conform to the current period
presentation.
|
Three Months Ended |
|
3/31/2023 |
|
6/30/2023 |
|
9/30/2023 |
|
12/31/2023 |
|
3/31/2024 |
Consolidated Statements of Income Data: |
|
|
|
|
|
|
|
|
|
Net income |
$ |
59,969 |
|
$ |
64,090 |
|
|
$ |
63,968 |
|
|
$ |
21,823 |
|
|
$ |
68,960 |
Less: Net income attributable to noncontrolling interests |
|
117 |
|
|
97 |
|
|
|
105 |
|
|
|
132 |
|
|
|
125 |
Interest income |
|
3,984 |
|
|
3,542 |
|
|
|
5,259 |
|
|
|
6,431 |
|
|
|
6,460 |
Add: Provision for income taxes |
|
18,413 |
|
|
16,963 |
|
|
|
18,077 |
|
|
|
9,459 |
|
|
|
20,638 |
Depreciation and amortization |
|
17,112 |
|
|
17,596 |
|
|
|
18,446 |
|
|
|
19,233 |
|
|
|
19,657 |
Interest expense |
|
2,036 |
|
|
2,023 |
|
|
|
2,024 |
|
|
|
2,004 |
|
|
|
1,964 |
EBITDA |
$ |
93,429 |
|
$ |
97,033 |
|
|
$ |
97,151 |
|
|
$ |
45,956 |
|
|
$ |
104,634 |
Adjustments to EBITDA: |
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
6,573 |
|
|
8,881 |
|
|
|
7,237 |
|
|
|
8,076 |
|
|
|
8,238 |
Litigation(a) |
|
67 |
|
|
(885 |
) |
|
|
2,783 |
|
|
|
58,816 |
|
|
|
764 |
Impairment of long-lived assets |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,849 |
Business interruption recoveries |
|
— |
|
|
(750 |
) |
|
|
(259 |
) |
|
|
(123 |
) |
|
|
— |
Acquisition related costs(b) |
|
460 |
|
|
112 |
|
|
|
150 |
|
|
|
92 |
|
|
|
114 |
Costs incurred related to system implementations |
|
815 |
|
|
60 |
|
|
|
— |
|
|
|
88 |
|
|
|
76 |
ADJUSTED EBITDA |
$ |
101,344 |
|
$ |
104,451 |
|
|
$ |
107,062 |
|
|
$ |
112,905 |
|
|
$ |
115,675 |
Rent—cost of services |
|
46,637 |
|
|
49,760 |
|
|
|
50,357 |
|
|
|
50,604 |
|
|
|
51,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below reconciles income before provision
for income taxes to Adjusted EBT for the periods presented:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
Consolidated statements of income data: |
(In thousands) |
Income before provision for income taxes |
$ |
92,064 |
|
|
$ |
81,053 |
|
|
$ |
181,662 |
|
|
$ |
159,435 |
|
Stock-based compensation expense |
|
8,985 |
|
|
|
8,881 |
|
|
|
17,223 |
|
|
|
15,454 |
|
Litigation(a) |
|
(1,634 |
) |
|
|
(885 |
) |
|
|
(870 |
) |
|
|
(818 |
) |
Business interruption recoveries |
|
— |
|
|
|
(750 |
) |
|
|
— |
|
|
|
(750 |
) |
Impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
1,849 |
|
|
|
— |
|
Acquisition related costs(b) |
|
165 |
|
|
|
112 |
|
|
|
279 |
|
|
|
572 |
|
Costs incurred related to system implementations |
|
2,357 |
|
|
|
60 |
|
|
|
2,433 |
|
|
|
875 |
|
Depreciation and amortization - patient base(c) |
|
174 |
|
|
|
— |
|
|
|
213 |
|
|
|
47 |
|
ADJUSTED EBT |
$ |
102,111 |
|
|
$ |
88,471 |
|
|
$ |
202,789 |
|
|
$ |
174,815 |
|
(a) Litigation relates to specific proceedings
arising outside of the ordinary course of business and legal
adjustments associated with a favorable overturned verdict. (b)
Costs incurred to acquire operations that are not capitalizable.
(c) Included in depreciation and amortization are amortization
expenses related to patient base intangible assets at newly
acquired skilled nursing and senior living facilities.
THE ENSIGN
GROUP, INC.UNAUDITED SELECT PERFORMANCE INDICATORS |
|
The following tables summarize our selected
performance indicators for our skilled services segment along with
other statistics, for each of the dates or periods presented: |
|
|
|
Three Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
TOTAL FACILITY RESULTS: |
(Dollars in thousands) |
Skilled services revenue |
$ |
991,285 |
|
|
$ |
884,200 |
|
|
$ |
107,085 |
|
|
12.1 |
% |
Number of facilities at period end |
|
272 |
|
|
|
253 |
|
|
|
19 |
|
|
7.5 |
% |
Number of campuses at period end(1) |
|
29 |
|
|
|
26 |
|
|
|
3 |
|
|
11.5 |
% |
Actual patient days |
|
2,299,068 |
|
|
|
2,124,862 |
|
|
|
174,206 |
|
|
8.2 |
% |
Occupancy percentage — Operational beds |
|
80.1 |
% |
|
|
78.0 |
% |
|
|
2.1 |
% |
|
2.7 |
% |
Skilled mix by nursing days |
|
29.9 |
% |
|
|
30.8 |
% |
|
(0.9 |
)% |
|
(2.9 |
)% |
Skilled mix by nursing revenue |
|
48.2 |
% |
|
|
50.7 |
% |
|
(2.5 |
)% |
|
(4.9 |
)% |
|
Three Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
SAME FACILITY RESULTS:(2) |
(Dollars in thousands) |
Skilled services revenue |
$ |
745,469 |
|
|
$ |
697,935 |
|
|
$ |
47,534 |
|
|
6.8 |
% |
Number of facilities at period end |
|
194 |
|
|
|
194 |
|
|
|
— |
|
|
— |
% |
Number of campuses at period end(1) |
|
25 |
|
|
|
25 |
|
|
|
— |
|
|
— |
% |
Actual patient days |
|
1,705,703 |
|
|
|
1,663,531 |
|
|
|
42,172 |
|
|
2.5 |
% |
Occupancy percentage — Operational beds |
|
80.8 |
% |
|
|
78.6 |
% |
|
|
2.2 |
% |
|
2.8 |
% |
Skilled mix by nursing days |
|
31.5 |
% |
|
|
32.0 |
% |
|
(0.5 |
)% |
|
(1.6 |
)% |
Skilled mix by nursing revenue |
|
49.4 |
% |
|
|
51.5 |
% |
|
(2.1 |
)% |
|
(4.1 |
)% |
|
Three Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
TRANSITIONING FACILITY
RESULTS:(3) |
(Dollars in thousands) |
Skilled services revenue |
$ |
123,496 |
|
|
$ |
116,553 |
|
|
$ |
6,943 |
|
|
6.0 |
% |
Number of facilities at period end |
|
40 |
|
|
|
40 |
|
|
|
— |
|
|
— |
% |
Number of campuses at period end(1) |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
— |
% |
Actual patient days |
|
329,061 |
|
|
|
323,165 |
|
|
|
5,896 |
|
|
1.8 |
% |
Occupancy percentage — Operational beds |
|
75.7 |
% |
|
|
72.6 |
% |
|
|
3.1 |
% |
|
4.3 |
% |
Skilled mix by nursing days |
|
21.7 |
% |
|
|
20.8 |
% |
|
|
0.9 |
% |
|
4.3 |
% |
Skilled mix by nursing revenue |
|
38.3 |
% |
|
|
38.8 |
% |
|
(0.5 |
)% |
|
(1.3 |
)% |
|
Three Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
RECENTLY ACQUIRED FACILITY
RESULTS:(4) |
(Dollars in thousands) |
Skilled services revenue |
$ |
122,320 |
|
|
$ |
69,712 |
|
|
$ |
52,608 |
|
NM |
Number of facilities at period end |
|
38 |
|
|
|
19 |
|
|
|
19 |
|
NM |
Number of campuses at period end(1) |
|
3 |
|
|
|
— |
|
|
|
3 |
|
NM |
Actual patient days |
|
264,304 |
|
|
|
138,166 |
|
|
|
126,138 |
|
NM |
Occupancy percentage — Operational beds |
|
81.5 |
% |
|
|
86.1 |
% |
|
NM |
|
NM |
Skilled mix by nursing days |
|
29.9 |
% |
|
|
38.9 |
% |
|
NM |
|
NM |
Skilled mix by nursing revenue |
|
50.4 |
% |
|
|
62.3 |
% |
|
NM |
|
NM |
- Campus represents a facility that offers both skilled nursing
and senior living services. Revenue and expenses related to skilled
nursing and senior living services have been allocated and recorded
in the respective operating segment.
- Same Facility results represent all facilities purchased prior
to January 1, 2021.
- Transitioning Facility results represent all facilities
purchased from January 1, 2021 to December 31, 2022.
- Recently Acquired Facility (Acquisitions) results represent all
facilities purchased on or subsequent to January 1, 2023.
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
TOTAL FACILITY RESULTS: |
(Dollars in thousands) |
Skilled services revenue |
$ |
1,960,887 |
|
|
$ |
1,735,123 |
|
|
$ |
225,764 |
|
|
13.0 |
% |
Number of facilities at period end |
|
272 |
|
|
|
253 |
|
|
|
19 |
|
|
7.5 |
% |
Number of campuses at period end(1) |
|
29 |
|
|
|
26 |
|
|
|
3 |
|
|
11.5 |
% |
Actual patient days |
|
4,554,599 |
|
|
|
4,172,567 |
|
|
|
382,032 |
|
|
9.2 |
% |
Occupancy percentage — Operational beds |
|
80.1 |
% |
|
|
78.0 |
% |
|
|
2.1 |
% |
|
2.7 |
% |
Skilled mix by nursing days |
|
30.4 |
% |
|
|
31.5 |
% |
|
(1.1 |
)% |
|
(3.5 |
)% |
Skilled mix by nursing revenue |
|
49.0 |
% |
|
|
51.7 |
% |
|
(2.7 |
)% |
|
(5.2 |
)% |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
SAME FACILITY RESULTS:(2) |
(Dollars in thousands) |
Skilled services revenue |
$ |
1,488,722 |
|
|
$ |
1,393,741 |
|
|
$ |
94,981 |
|
|
6.8 |
% |
Number of facilities at period end |
|
194 |
|
|
|
194 |
|
|
|
— |
|
|
— |
% |
Number of campuses at period end(1) |
|
25 |
|
|
|
25 |
|
|
|
— |
|
|
— |
% |
Actual patient days |
|
3,416,043 |
|
|
|
3,313,436 |
|
|
|
102,607 |
|
|
3.1 |
% |
Occupancy percentage — Operational beds |
|
80.9 |
% |
|
|
78.7 |
% |
|
|
2.2 |
% |
|
2.8 |
% |
Skilled mix by nursing days |
|
31.9 |
% |
|
|
32.8 |
% |
|
(0.9 |
)% |
|
(2.7 |
)% |
Skilled mix by nursing revenue |
|
50.2 |
% |
|
|
52.5 |
% |
|
(2.3 |
)% |
|
(4.4 |
)% |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
TRANSITIONING FACILITY
RESULTS:(3) |
(Dollars in thousands) |
Skilled services revenue |
$ |
247,120 |
|
|
$ |
231,144 |
|
|
$ |
15,976 |
|
|
6.9 |
% |
Number of facilities at period end |
|
40 |
|
|
|
40 |
|
|
|
— |
|
|
— |
% |
Number of campuses at period end(1) |
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
— |
% |
Actual patient days |
|
657,532 |
|
|
|
639,117 |
|
|
|
18,415 |
|
|
2.9 |
% |
Occupancy percentage — Operational beds |
|
74.8 |
% |
|
|
72.2 |
% |
|
|
2.6 |
% |
|
3.6 |
% |
Skilled mix by nursing days |
|
21.7 |
% |
|
|
21.8 |
% |
|
(0.1 |
)% |
|
(0.5 |
)% |
Skilled mix by nursing revenue |
|
38.1 |
% |
|
|
40.4 |
% |
|
(2.3 |
)% |
|
(5.7 |
)% |
|
Six Months
Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
RECENTLY ACQUIRED FACILITY
RESULTS:(4) |
(Dollars in thousands) |
Skilled services revenue |
$ |
225,045 |
|
|
$ |
110,238 |
|
|
$ |
114,807 |
|
NM |
Number of facilities at period end |
|
38 |
|
|
|
19 |
|
|
|
19 |
|
NM |
Number of campuses at period end(1) |
|
3 |
|
|
|
— |
|
|
|
3 |
|
NM |
Actual patient days |
|
481,024 |
|
|
|
220,014 |
|
|
|
261,010 |
|
NM |
Occupancy percentage — Operational beds |
|
82.5 |
% |
|
|
85.9 |
% |
|
NM |
|
NM |
Skilled mix by nursing days |
|
31.8 |
% |
|
|
40.4 |
% |
|
NM |
|
NM |
Skilled mix by nursing revenue |
|
53.0 |
% |
|
|
64.0 |
% |
|
NM |
|
NM |
- Campus represents a facility that offers both skilled nursing
and senior living services. Revenue and expenses related to skilled
nursing and senior living services have been allocated and recorded
in the respective operating segment.
- Same Facility results represent all facilities purchased prior
to January 1, 2021.
- Transitioning Facility results represent all facilities
purchased from January 1, 2021 to December 31, 2022.
- Recently Acquired Facility (Acquisitions) results represent all
facilities purchased on or subsequent to January 1, 2023.
THE ENSIGN
GROUP, INC.SKILLED NURSING AVERAGE DAILY REVENUE RATES
ANDPERCENT OF SKILLED NURSING REVENUE AND DAYS BY
PAYOR(Unaudited) |
|
The following tables reflect the change in skilled
nursing average daily revenue rates by payor source, excluding
services that are not covered by the daily rate(1): |
|
|
Three Months Ended June 30, |
|
Same Facility |
|
Transitioning |
|
Acquisitions |
|
Total |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SKILLED NURSING AVERAGE DAILY REVENUE RATES |
Medicare |
$ |
750.50 |
|
$ |
711.27 |
|
$ |
699.67 |
|
$ |
666.81 |
|
$ |
847.86 |
|
$ |
863.55 |
|
$ |
760.63 |
|
$ |
724.65 |
Managed care |
|
548.68 |
|
|
527.96 |
|
|
518.97 |
|
|
511.87 |
|
|
577.58 |
|
|
616.58 |
|
|
548.28 |
|
|
531.37 |
Other skilled |
|
617.55 |
|
|
595.87 |
|
|
494.40 |
|
|
506.32 |
|
|
621.86 |
|
|
531.80 |
|
|
607.13 |
|
|
583.35 |
Total skilled revenue |
|
631.46 |
|
|
609.68 |
|
|
595.72 |
|
|
589.26 |
|
|
733.52 |
|
|
762.71 |
|
|
639.39 |
|
|
620.17 |
Medicaid |
|
300.18 |
|
|
272.88 |
|
|
269.12 |
|
|
244.31 |
|
|
304.59 |
|
|
286.19 |
|
|
295.73 |
|
|
268.64 |
Private and other payors |
|
277.77 |
|
|
261.15 |
|
|
249.55 |
|
|
238.46 |
|
|
323.77 |
|
|
345.65 |
|
|
278.32 |
|
|
261.47 |
Total skilled nursing revenue |
$ |
402.18 |
|
$ |
379.46 |
|
$ |
337.56 |
|
$ |
315.27 |
|
$ |
434.66 |
|
$ |
476.45 |
|
$ |
396.63 |
|
$ |
376.00 |
(1) The rates are based on contractually
agreed-upon amounts or rates, excluding the estimates of variable
consideration under the revenue recognition standard, Financial
Accounting Standards Board (FASB) Accounting Standards Codification
(ASC) Topic 606 and state relief funding during the three months
ended June 30, 2023.
|
|
|
Six Months Ended June 30, |
|
Same Facility |
|
Transitioning |
|
Acquisitions |
|
Total |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SKILLED NURSING AVERAGE DAILY REVENUE RATES |
Medicare |
$ |
747.66 |
|
$ |
711.25 |
|
$ |
696.25 |
|
$ |
666.23 |
|
$ |
852.62 |
|
$ |
858.19 |
|
$ |
759.21 |
|
$ |
720.06 |
Managed care |
|
548.52 |
|
|
522.43 |
|
|
523.54 |
|
|
512.50 |
|
|
586.47 |
|
|
606.49 |
|
|
549.10 |
|
|
525.35 |
Other skilled |
|
619.01 |
|
|
597.65 |
|
|
494.77 |
|
|
498.79 |
|
|
603.84 |
|
|
524.67 |
|
|
606.98 |
|
|
584.16 |
Total skilled revenue |
|
631.63 |
|
|
608.89 |
|
|
594.02 |
|
|
589.49 |
|
|
743.85 |
|
|
754.00 |
|
|
640.09 |
|
|
616.65 |
Medicaid |
|
296.64 |
|
|
270.02 |
|
|
269.31 |
|
|
243.89 |
|
|
302.48 |
|
|
278.36 |
|
|
292.81 |
|
|
265.79 |
Private and other payors |
|
280.87 |
|
|
262.14 |
|
|
254.55 |
|
|
237.16 |
|
|
332.78 |
|
|
347.26 |
|
|
281.69 |
|
|
261.44 |
Total skilled nursing revenue |
$ |
402.00 |
|
$ |
380.36 |
|
$ |
337.89 |
|
$ |
318.63 |
|
$ |
445.75 |
|
$ |
476.32 |
|
$ |
397.34 |
|
$ |
375.96 |
(1) The rates are based on contractually
agreed-upon amounts or rates, excluding the estimates of variable
consideration under the revenue recognition standard, Financial
Accounting Standards Board (FASB) Accounting Standards Codification
(ASC) Topic 606 and state relief funding during the six months
ended June 30, 2023.
The following tables set forth our percentage of
skilled nursing patient revenue and days by payor source for the
periods presented:
|
Three Months Ended June 30, |
|
Same Facility |
|
Transitioning |
|
Acquisitions |
|
Total |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERCENTAGE OF SKILLED NURSING REVENUE |
Medicare |
20.4 |
% |
|
22.9 |
% |
|
20.0 |
% |
|
22.2 |
% |
|
32.5 |
% |
|
44.2 |
% |
|
21.8 |
% |
|
24.6 |
% |
Managed
care |
20.1 |
|
|
19.8 |
|
|
13.7 |
|
|
11.0 |
|
|
13.1 |
|
|
13.6 |
|
|
18.4 |
|
|
18.2 |
|
Other skilled |
8.9 |
|
|
8.8 |
|
|
4.6 |
|
|
5.6 |
|
|
4.8 |
|
|
4.5 |
|
|
8.0 |
|
|
7.9 |
|
Skilled mix |
49.4 |
|
|
51.5 |
|
|
38.3 |
|
|
38.8 |
|
|
50.4 |
|
|
62.3 |
|
|
48.2 |
|
|
50.7 |
|
Private and other payors |
7.1 |
|
|
7.5 |
|
|
8.9 |
|
|
9.0 |
|
|
7.7 |
|
|
5.9 |
|
|
7.4 |
|
|
7.6 |
|
Medicaid |
43.5 |
|
|
41.0 |
|
|
52.8 |
|
|
52.2 |
|
|
41.9 |
|
|
31.8 |
|
|
44.4 |
|
|
41.7 |
|
TOTAL SKILLED NURSING |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
Three Months Ended June 30, |
|
Same Facility |
|
Transitioning |
|
Acquisitions |
|
Total |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERCENTAGE OF SKILLED NURSING DAYS |
Medicare |
10.9 |
% |
|
12.2 |
% |
|
9.6 |
% |
|
10.5 |
% |
|
16.7 |
% |
|
24.4 |
% |
|
11.4 |
% |
|
12.8 |
% |
Managed
care |
14.7 |
|
|
14.3 |
|
|
8.9 |
|
|
6.8 |
|
|
9.9 |
|
|
10.5 |
|
|
13.3 |
|
|
12.9 |
|
Other skilled |
5.9 |
|
|
5.5 |
|
|
3.2 |
|
|
3.5 |
|
|
3.3 |
|
|
4.0 |
|
|
5.2 |
|
|
5.1 |
|
Skilled mix |
31.5 |
|
|
32.0 |
|
|
21.7 |
|
|
20.8 |
|
|
29.9 |
|
|
38.9 |
|
|
29.9 |
|
|
30.8 |
|
Private and other payors |
10.2 |
|
|
11.0 |
|
|
12.0 |
|
|
11.8 |
|
|
10.3 |
|
|
8.1 |
|
|
10.5 |
|
|
10.9 |
|
Medicaid |
58.3 |
|
|
57.0 |
|
|
66.3 |
|
|
67.4 |
|
|
59.8 |
|
|
53.0 |
|
|
59.6 |
|
|
58.3 |
|
TOTAL SKILLED NURSING |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
Six Months Ended June 30, |
|
Same Facility |
|
Transitioning |
|
Acquisitions |
|
Total |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERCENTAGE OF SKILLED NURSING REVENUE |
Medicare |
20.9 |
% |
|
24.1 |
% |
|
19.3 |
% |
|
23.5 |
% |
|
35.6 |
% |
|
45.2 |
% |
|
22.5 |
% |
|
25.4 |
% |
Managed
care |
20.2 |
|
|
20.0 |
|
|
14.1 |
|
|
11.5 |
|
|
13.4 |
|
|
14.2 |
|
|
18.7 |
|
|
18.5 |
|
Other skilled |
9.1 |
|
|
8.4 |
|
|
4.7 |
|
|
5.4 |
|
|
4.0 |
|
|
4.6 |
|
|
7.8 |
|
|
7.8 |
|
Skilled mix |
50.2 |
|
|
52.5 |
|
|
38.1 |
|
|
40.4 |
|
|
53.0 |
|
|
64.0 |
|
|
49.0 |
|
|
51.7 |
|
Private and other payors |
7.1 |
|
|
7.4 |
|
|
9.0 |
|
|
8.6 |
|
|
7.4 |
|
|
5.9 |
|
|
7.4 |
|
|
7.4 |
|
Medicaid |
42.7 |
|
|
40.1 |
|
|
52.9 |
|
|
51.0 |
|
|
39.6 |
|
|
30.1 |
|
|
43.6 |
|
|
40.9 |
|
TOTAL SKILLED NURSING |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
Six Months Ended June 30, |
|
Same Facility |
|
Transitioning |
|
Acquisitions |
|
Total |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERCENTAGE OF SKILLED NURSING DAYS |
Medicare |
11.3 |
% |
|
12.9 |
% |
|
9.4 |
% |
|
11.2 |
% |
|
18.6 |
% |
|
25.1 |
% |
|
11.8 |
% |
|
13.3 |
% |
Managed
care |
14.8 |
|
|
14.5 |
|
|
9.1 |
|
|
7.2 |
|
|
10.2 |
|
|
11.2 |
|
|
13.5 |
|
|
13.2 |
|
Other skilled |
5.8 |
|
|
5.4 |
|
|
3.2 |
|
|
3.4 |
|
|
3.0 |
|
|
4.1 |
|
|
5.1 |
|
|
5.0 |
|
Skilled mix |
31.9 |
|
|
32.8 |
|
|
21.7 |
|
|
21.8 |
|
|
31.8 |
|
|
40.4 |
|
|
30.4 |
|
|
31.5 |
|
Private and other payors |
10.3 |
|
|
10.7 |
|
|
11.9 |
|
|
11.5 |
|
|
9.9 |
|
|
8.1 |
|
|
10.5 |
|
|
10.7 |
|
Medicaid |
57.8 |
|
|
56.5 |
|
|
66.4 |
|
|
66.7 |
|
|
58.3 |
|
|
51.5 |
|
|
59.1 |
|
|
57.8 |
|
TOTAL SKILLED NURSING |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
THE ENSIGN
GROUP, INC.UNAUDITED REVENUE BY PAYOR SOURCE |
|
|
The following tables set forth our service revenue
by payor source and as a percentage of total service revenue for
the periods presented: |
|
|
|
Three Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
% of Revenue |
|
Revenue |
|
% of Revenue |
Medicaid(1) |
$ |
411,760 |
|
40.0 |
% |
|
$ |
359,781 |
|
39.3 |
% |
Medicare |
|
258,869 |
|
25.1 |
|
|
|
248,081 |
|
27.1 |
|
Medicaid — skilled |
|
62,969 |
|
6.1 |
|
|
|
62,015 |
|
6.7 |
|
Total Medicaid and Medicare |
|
733,598 |
|
71.2 |
|
|
|
669,877 |
|
73.1 |
|
Managed care |
|
191,022 |
|
18.5 |
|
|
|
161,101 |
|
17.6 |
|
Private and other(2) |
|
105,954 |
|
10.3 |
|
|
|
85,123 |
|
9.3 |
|
SERVICE REVENUE |
$ |
1,030,574 |
|
100.0 |
% |
|
$ |
916,101 |
|
100.0 |
% |
(1) Medicaid payor includes revenue for senior
living operations and revenue related to state relief funding
during the three months ended June 30, 2023. (2) Private and other
also includes revenue from senior living operations and all revenue
generated in other ancillary services.
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
% of Revenue |
|
Revenue |
|
% of Revenue |
Medicaid(1) |
$ |
801,923 |
|
39.4 |
% |
|
$ |
700,045 |
|
38.9 |
% |
Medicare |
|
524,452 |
|
25.8 |
|
|
|
495,804 |
|
27.6 |
|
Medicaid — skilled |
|
126,278 |
|
6.2 |
|
|
|
119,942 |
|
6.7 |
|
Total Medicaid and Medicare |
|
1,452,653 |
|
71.4 |
|
|
|
1,315,791 |
|
73.2 |
|
Managed care |
|
379,126 |
|
18.6 |
|
|
|
317,764 |
|
17.7 |
|
Private and other(2) |
|
203,280 |
|
10.0 |
|
|
|
164,464 |
|
9.1 |
|
SERVICE REVENUE |
$ |
2,035,059 |
|
100.0 |
% |
|
$ |
1,798,019 |
|
100.0 |
% |
(1) Medicaid payor includes revenue for senior
living operations and revenue related to state relief funding
during the six months ended June 30, 2023. (2) Private and other
also includes revenue from senior living operations and all revenue
generated in other ancillary services.
THE ENSIGN
GROUP, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION BY SEGMENT(In
thousands) |
|
Skilled Services |
|
The table below reconciles net income to EBITDA
and Adjusted EBITDA for the skilled services reportable segment for
the periods presented: |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Statements of Income Data: |
|
|
|
|
|
|
|
Segment income(a) |
$ |
122,185 |
|
$ |
117,008 |
|
|
$ |
248,994 |
|
$ |
230,353 |
|
Depreciation and amortization |
|
10,911 |
|
|
9,417 |
|
|
|
21,447 |
|
|
18,481 |
|
EBITDA |
$ |
133,096 |
|
$ |
126,425 |
|
|
$ |
270,441 |
|
$ |
248,834 |
|
Adjustments to EBITDA: |
|
|
|
|
|
|
|
Business interruption recoveries |
|
— |
|
|
(750 |
) |
|
|
— |
|
|
(750 |
) |
Stock-based compensation expense |
|
5,693 |
|
|
5,705 |
|
|
|
10,907 |
|
|
9,861 |
|
Litigation(b) |
|
2,100 |
|
|
— |
|
|
|
2,100 |
|
|
— |
|
ADJUSTED EBITDA |
$ |
140,889 |
|
$ |
131,380 |
|
|
$ |
283,448 |
|
$ |
257,945 |
|
|
|
|
|
|
|
|
|
(a) Segment income reflects profit or loss from
operations before provision for income taxes and impairment charges
from operations. General and administrative expenses are not
allocated to the skilled services segment for purposes of
determining segment profit or loss. (b) Litigation relates to
specific proceedings arising outside of the ordinary course of
business.
Standard Bearer
The following table sets forth details of
operating results for our revenue and earnings, and their
respective components, by Standard Bearer for the periods
presented:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
Rental
revenue generated from third-party tenants |
$ |
4,198 |
|
$ |
3,786 |
|
$ |
8,393 |
|
$ |
7,572 |
Rental revenue generated from Ensign's independent
subsidiaries |
|
19,156 |
|
|
16,128 |
|
|
37,162 |
|
|
32,059 |
TOTAL RENTAL REVENUE |
$ |
23,354 |
|
$ |
19,914 |
|
$ |
45,555 |
|
$ |
39,631 |
Segment income(a) |
|
7,360 |
|
|
7,133 |
|
|
14,618 |
|
|
14,352 |
Depreciation and amortization |
|
7,166 |
|
|
6,133 |
|
|
13,995 |
|
|
12,099 |
FFO(b) |
$ |
14,526 |
|
$ |
13,266 |
|
$ |
28,613 |
|
$ |
26,451 |
|
|
|
|
|
|
|
|
(a) Segment income reflects profit or loss from
operations before provision for income taxes, excluding gain or
loss from sale of real estate, insurance recoveries and impairment
of long-lived assets. Included in Standard Bearer expenses for the
three and six months ended June 30, 2024 is the management fee of
$1.4 million and $2.7 million, respectively, and interest of $5.0
million and $9.3 million, respectively, from intercompany
agreements between Standard Bearer and the Company and its
independent subsidiaries, including the Service Center. Included in
Standard Bearer expenses for the three and six months ended June
30, 2023 is the management fee of $1.2 million and $2.4 million,
respectively, and interest of $2.9 million and $5.7 million,
respectively, from intercompany agreements between Standard Bearer
and the Company and its independent subsidiaries, including the
Service Center.
(b) FFO, in accordance with the definition used
by the National Association of Real Estate Investment Trusts, means
net income attributable to common stockholders, computed in
accordance with U.S. GAAP, excluding gains or losses from sales of
real estate, insurance recoveries related to real estate and
impairment of long-lived assets, while including depreciation and
amortization related to real estate to earnings.
Discussion of Non-GAAP Financial
Measures
EBITDA consists of net income before (a)
interest income, (b) provision for income taxes, (c) depreciation
and amortization, and (d) interest expense. Adjusted EBITDA
consists of net income before (a) interest income, (b) provision
for income taxes, (c) depreciation and amortization, (d) interest
expense, (e) stock-based compensation expense, (f) acquisition
related costs, (g) costs incurred related to system
implementations, (h) litigation, (i) impairment of long-lived
assets and (j) business interruption recoveries. Adjusted EBITDAR
consists of net income before (a) interest income, (b) provision
for income taxes, (c) depreciation and amortization, (d) interest
expense, (e) rent-cost of services, (f) stock-based compensation
expense, (g) acquisition related costs, (h) costs incurred related
to system implementations, (i) litigation, (j) impairment of
long-lived assets and (k) business interruption recoveries.
Adjusted EBT consists of net income before (a) provision for income
taxes, (b) stock-based compensation expense, (c) acquisition
related costs, (d) costs incurred related to system
implementations, (e) litigation, (f) impairment of long-lived
assets, (g) business interruption recoveries and (h) depreciation
and amortization of patient base intangible assets. Funds from
Operations (FFO) for our Standard Bearer segment consists of
segment income, excluding depreciation and amortization related to
real estate, gains or losses from the sale of real estate,
insurance recoveries related to real estate and impairment of
long-lived assets. The Company believes that the presentation of
adjusted net income, adjusted earnings per share, EBITDA, adjusted
EBITDA, adjusted EBT and FFO provides important supplemental
information to management and investors to evaluate the Company’s
operating performance. Adjusted EBITDAR is a financial valuation
measure that is not specified in GAAP. This measure is not
displayed as a performance measure as it excludes rent expense,
which is a normal and recurring operating expense. The Company
believes disclosure of adjusted net income, adjusted net income per
share, EBITDA, adjusted EBITDA, adjusted EBITDAR, adjusted EBT and
FFO has substance because the excluded revenues and expenses are
infrequent in nature and are variable in nature, or do not
represent current revenues or cash expenditures. A material
limitation associated with the use of these measures as compared to
the GAAP measures of net income and diluted earnings per share is
that they may not be comparable with the calculation of net income
and diluted earnings per share for other companies in the Company's
industry. These non-GAAP financial measures should not be relied
upon to the exclusion of GAAP financial measures. For further
information regarding why the Company believes that this non-GAAP
measures provide useful information to investors, the specific
manner in which management uses these measures, and some of the
limitations associated with the use of these measures, please refer
to the Company's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K and Quarterly
Report on Form 10-Q. The Company’s periodic filings are available
on the SEC's website at www.sec.gov or under the "Financials" link
of the Investor Relations section on Ensign’s website at
http://www.ensigngroup.net.
Grafico Azioni Ensign (NASDAQ:ENSG)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Ensign (NASDAQ:ENSG)
Storico
Da Ott 2023 a Ott 2024