Highlights Include:
- GAAP diluted earnings per share for the quarter was
$1.19 , an increase of 13.3% over the prior year quarter. Adjusted diluted earnings per share(1) for the quarter was$1.30 , an increase of 15.0% over the prior year quarter.
- GAAP net income was
$68.8 million , an increase of 15.0% over the prior year quarter. Adjusted net income(1) was$75.4 million for the quarter, an increase of 16.6%, over the prior year quarter.
- Same Facilities and Transitioning Facilities occupancy increased by 2.7% and 3.1%, respectively, over the prior year quarter. Same Facilities occupancy was 81.0% during the first quarter of 2024.
- Same Facilities skilled revenue increased by 3.8% over the prior year quarter and increased by 5.6% sequentially over the fourth quarter.
- Same Facilities and Transitioning Facilities managed care census increased by 4.8% and 27.8%, respectively, over the prior year quarter.
- Consolidated GAAP and adjusted revenue for the quarter were
$1.01 billion , an increase of 13.9% over the prior year quarter.
- Total skilled services(2) revenue was
$969.6 million for the quarter, an increase of 13.9% over the prior year quarter and 3.1% sequentially over the fourth quarter. Total skilled services(2) segment income was$126.8 million for the quarter, an increase of 11.9% over the prior year quarter and 8.6% sequentially over the fourth quarter.
- Standard Bearer(2) revenue was
$22.2 million for the quarter, an increase of 12.6% over the prior year quarter. FFO was$14.1 million for the quarter, an increase of 6.8% over the prior year quarter.
(1) See "Reconciliation of GAAP to Non-GAAP Financial Information".
(2) Our Skilled Services and Standard Bearer Segments are defined and outlined in Note 8 on Form 10-Q.
Operating Results
“We are very pleased with the continued and consistent performance that our local teams achieved again. After another record quarter, we are excited about the remarkable momentum our teams have created across our entire portfolio and look forward to seeing that continue throughout the year,” said
“We are eager to continue to drive improvements in our existing portfolio and to take advantage of the many acquisition opportunities we see on the horizon. We are affirming our annual 2024 earnings guidance of
Speaking to the Company’s growth,
Speaking to the Company’s financial health,
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
Growth and Real Estate Highlights
The recent acquisitions include the following leased operations:
Hearthstone Health and Rehabilitation, a 125-bed skilled nursing facility located inSparks, Nevada ;
- Park Post Acute, a 135-bed skilled nursing facility located in
Parker, Colorado ;
Oakwood Care and Rehabilitation, a 170-bed skilled nursing facility located inLakewood, Colorado ;
TriState Health and Rehabilitation Center , a 116-bed skilled nursing facility located inHarrogate, Tennessee ;
Creekview Health and Rehabilitation, a 78-bed skilled nursing facility located inKnoxville, Tennessee ;
- Foothills Transitional Care and Rehabilitation, a 135-bed skilled nursing facility located in
Maryville, Tennessee ; and
- Midlothian Healthcare Center, a 120-bed skilled nursing facility located in
Midlothian, Texas .
Standard Bearer also announced the following real estate acquisitions, all of which will be operated by an Ensign-affiliated operator:
- Atchison Senior Village Rehabilitation and Nursing Center, a 45-bed skilled nursing facility located in
Atchison, Kansas ;
- 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 inDe Soto, Kansas ;
Spencer Post Acute Rehabilitation Center , an 82-bed skilled nursing facility located inSpencer, Iowa ;
- South Davis Specialty Care a 95-bed skilled nursing operation, located in
Bountiful, Utah ; and
Western Peaks Specialty Hospital , a 43-bed long-term acute care hospital (LTACH) located inBountiful, Utah .
Ensign's growing portfolio consists of 310 healthcare operations, 29 of which also include senior living operations, across fourteen states. Ensign now owns 119 real estate assets, 89 of which it operates. Keetch noted that Ensign’s overall strategy will continue to include both leasing and acquiring the 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 114 owned properties. Of these assets, 85 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
The Company paid a quarterly cash dividend of
Conference Call
A live webcast will be held
About Ensign™
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
Contact Information
Investor/Media Relations,
SOURCE:
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
(In thousands, except per share data) | |||||||
REVENUE | |||||||
Service revenue | $ | 1,004,485 | $ | 881,918 | |||
Rental revenue | 5,687 | 4,923 | |||||
TOTAL REVENUE | $ | 1,010,172 | $ | 886,841 | |||
Expense: | |||||||
Cost of services | 799,263 | 696,326 | |||||
Rent—cost of services | 51,876 | 46,637 | |||||
General and administrative expense | 57,158 | 51,891 | |||||
Depreciation and amortization | 19,657 | 17,112 | |||||
TOTAL EXPENSES | 927,954 | 811,966 | |||||
Income from operations | 82,218 | 74,875 | |||||
Other income (expense): | |||||||
Interest expense | (1,964 | ) | (2,036 | ) | |||
Other income | 9,344 | 5,543 | |||||
Other income, net | 7,380 | 3,507 | |||||
Income before provision for income taxes | 89,598 | 78,382 | |||||
Provision for income taxes | 20,638 | 18,413 | |||||
NET INCOME | 68,960 | 59,969 | |||||
Less: net income attributable to noncontrolling interests | 125 | 117 | |||||
Net income attributable to | $ | 68,835 | $ | 59,852 | |||
NET INCOME PER SHARE ATTRIBUTABLE TO THE | |||||||
Basic | $ | 1.22 | $ | 1.08 | |||
Diluted | $ | 1.19 | $ | 1.05 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||
Basic | 56,337 | 55,300 | |||||
Diluted | 57,921 | 57,098 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 511,839 | $ | 509,626 | |||
Accounts receivable—less allowance for doubtful accounts of | 519,439 | 485,039 | |||||
Investments—current | 14,459 | 17,229 | |||||
Prepaid expenses and other current assets | 42,451 | 35,036 | |||||
Total current assets | 1,088,188 | 1,046,930 | |||||
Property and equipment, net | 1,101,560 | 1,090,771 | |||||
Right-of-use assets | 1,821,024 | 1,756,430 | |||||
Insurance subsidiary deposits and investments | 107,666 | 92,687 | |||||
Deferred tax assets | 66,486 | 67,124 | |||||
Restricted and other assets | 39,686 | 40,205 | |||||
Intangible assets, net | 6,559 | 6,525 | |||||
77,241 | 76,869 | ||||||
TOTAL ASSETS | $ | 4,308,410 | $ | 4,177,541 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 82,635 | $ | 92,811 | |||
Accrued wages and related liabilities | 294,208 | 332,568 | |||||
Lease liabilities—current | 85,898 | 82,526 | |||||
Accrued self-insurance liabilities—current | 62,589 | 54,664 | |||||
Other accrued liabilities | 180,408 | 168,228 | |||||
Current maturities of long-term debt | 3,983 | 3,950 | |||||
Total current liabilities | 709,721 | 734,747 | |||||
Long-term debt—less current maturities | 144,533 | 145,497 | |||||
Long-term lease liabilities—less current portion | 1,701,652 | 1,639,326 | |||||
Accrued self-insurance liabilities—less current portion | 117,364 | 111,246 | |||||
Other long-term liabilities | 51,673 | 49,408 | |||||
Total equity | 1,583,467 | 1,497,317 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 4,308,410 | $ | 4,177,541 |
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: | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
NET CASH PROVIDED BY/(USED IN): | (In thousands) | ||||||
Operating activities | $ | 35,312 | $ | 48,344 | |||
Investing activities | (34,655 | ) | (35,971 | ) | |||
Financing activities | 1,556 | (1,674 | ) | ||||
Net increase in cash and cash equivalents | 2,213 | 10,699 | |||||
Cash and cash equivalents beginning of period | 509,626 | 316,270 | |||||
Cash and cash equivalents at end of period | $ | 511,839 | $ | 326,969 |
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 | |||||||
2024 | 2023 | ||||||
Net income attributable to | $ | 68,835 | $ | 59,852 | |||
Non-GAAP adjustments | |||||||
Stock-based compensation expense(a) | 8,238 | 6,573 | |||||
Litigation(b) | 764 | 67 | |||||
Cost of services - impairment of long-lived assets | 1,849 | — | |||||
Cost of services - acquisition related costs(c) | 114 | 460 | |||||
General and administrative - costs incurred related to new systems implementation | 76 | 815 | |||||
Depreciation and amortization - patient base(d) | 39 | 47 | |||||
Provision for income taxes on Non-GAAP adjustments(e) | (4,531 | ) | (3,173 | ) | |||
Non-GAAP Net Income | $ | 75,384 | $ | 64,641 | |||
Average number of diluted shares outstanding | 57,921 | 57,098 | |||||
Diluted Earnings Per Share | |||||||
Net Income | $ | 1.19 | $ | 1.05 | |||
Adjusted Diluted Earnings Per Share | |||||||
Net Income | $ | 1.30 | $ | 1.13 | |||
Footnotes: | |||||||
(a) Represents stock-based compensation expense incurred. | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Cost of services | $ | 5,401 | $ | 4,307 | |||
General and administrative | 2,837 | 2,266 | |||||
Total Non-GAAP adjustment | $ | 8,238 | $ | 6,573 | |||
(b) Litigation relates to specific proceedings arising outside of the ordinary course of business. | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Cost of services | $ | — | $ | 67 | |||
General and administrative | 764 | — | |||||
Total Non-GAAP adjustment | $ | 764 | $ | 67 | |||
(c) Represents costs incurred to acquire operations that are not capitalizable. | |||||||
(d) Included in depreciation and amortization are 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%. |
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 | |||||||
2024 | 2023 | ||||||
Consolidated Statements of Income Data: | |||||||
Net income | $ | 68,960 | $ | 59,969 | |||
Less: Net income attributable to noncontrolling interests | 125 | 117 | |||||
Other income, net | 7,380 | 3,507 | |||||
Add: Provision for income taxes | 20,638 | 18,413 | |||||
Depreciation and amortization | 19,657 | 17,112 | |||||
EBITDA | $ | 101,750 | $ | 91,870 | |||
Adjustments to EBITDA: | |||||||
Stock-based compensation expense | 8,238 | 6,573 | |||||
Litigation(a) | 764 | 67 | |||||
Impairment of long-lived assets | 1,849 | — | |||||
Acquisition related costs(b) | 114 | 460 | |||||
Costs incurred related to new systems implementation | 76 | 815 | |||||
ADJUSTED EBITDA | $ | 112,791 | $ | 99,785 | |||
Rent—cost of services | 51,876 | 46,637 | |||||
ADJUSTED EBITDAR | $ | 164,667 | |||||
(a) Litigation relates to specific proceedings arising outside of the ordinary course of business. | |||||||
(b) Costs incurred to acquire operations that are not capitalizable. |
The table below reconciles income before provision for income taxes to Adjusted EBT for the periods presented:
Three Months Ended | |||||||
2024 | 2023 | ||||||
Consolidated statements of income data: | (In thousands) | ||||||
Income before provision for income taxes | $ | 89,598 | $ | 78,382 | |||
Stock-based compensation expense | 8,238 | 6,573 | |||||
Litigation(a) | 764 | 67 | |||||
Impairment of long-lived assets | 1,849 | — | |||||
Acquisition related costs(b) | 114 | 460 | |||||
Costs incurred related to new systems implementation | 76 | 815 | |||||
Depreciation and amortization - patient base(c) | 39 | 47 | |||||
ADJUSTED EBT | $ | 100,678 | $ | 86,344 | |||
(a) Litigation relates to specific proceedings arising outside of the ordinary course of business. | |||||||
(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. |
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 | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
TOTAL FACILITY RESULTS: | (Dollars in thousands) | ||||||||||||||
Skilled services revenue | $ | 969,602 | $ | 850,923 | $ | 118,679 | 13.9 | % | |||||||
Number of facilities at period end | 264 | 253 | 11 | 4.3 | % | ||||||||||
Number of campuses at period end(1) | 27 | 26 | 1 | 3.8 | % | ||||||||||
Actual patient days | 2,255,531 | 2,047,705 | 207,826 | 10.1 | % | ||||||||||
Occupancy percentage — Operational beds | 80.1 | % | 77.9 | % | 2.2 | % | |||||||||
Skilled mix by nursing days | 31.0 | % | 32.3 | % | (1.3 | )% | |||||||||
Skilled mix by nursing revenue | 49.9 | % | 52.7 | % | (2.8 | )% |
Three Months Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
SAME FACILITY RESULTS:(2) | (Dollars in thousands) | ||||||||||||||
Skilled services revenue | $ | 743,253 | $ | 695,806 | $ | 47,447 | 6.8 | % | |||||||
Number of facilities at period end | 194 | 194 | — | — | % | ||||||||||
Number of campuses at period end(1) | 25 | 25 | — | — | % | ||||||||||
Actual patient days | 1,710,340 | 1,649,905 | 60,435 | 3.7 | % | ||||||||||
Occupancy percentage — Operational beds | 81.0 | % | 78.9 | % | 2.1 | % | |||||||||
Skilled mix by nursing days | 32.4 | % | 33.6 | % | (1.2 | )% | |||||||||
Skilled mix by nursing revenue | 50.9 | % | 53.6 | % | (2.7 | )% |
Three Months Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
TRANSITIONING FACILITY RESULTS:(3) | (Dollars in thousands) | ||||||||||||||
Skilled services revenue | $ | 123,624 | $ | 114,591 | $ | 9,033 | 7.9 | % | |||||||
Number of facilities at period end | 40 | 40 | — | — | % | ||||||||||
Number of campuses at period end(1) | 1 | 1 | — | — | % | ||||||||||
Actual patient days | 328,471 | 315,952 | 12,519 | 4.0 | % | ||||||||||
Occupancy percentage — Operational beds | 74.0 | % | 71.8 | % | 2.2 | % | |||||||||
Skilled mix by nursing days | 21.7 | % | 23.0 | % | (1.3 | )% | |||||||||
Skilled mix by nursing revenue | 37.9 | % | 42.0 | % | (4.1 | )% |
Three Months Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
RECENTLY ACQUIRED FACILITY RESULTS:(4) | (Dollars in thousands) | ||||||||||||||
Skilled services revenue | $ | 102,725 | $ | 40,526 | $ | 62,199 | NM | ||||||||
Number of facilities at period end | 30 | 19 | 11 | NM | |||||||||||
Number of campuses at period end(1) | 1 | — | 1 | NM | |||||||||||
Actual patient days | 216,720 | 81,848 | 134,872 | NM | |||||||||||
Occupancy percentage — Operational beds | 83.8 | % | 85.6 | % | NM | ||||||||||
Skilled mix by nursing days | 34.1 | % | 43.0 | % | NM | ||||||||||
Skilled mix by nursing revenue | 56.1 | % | 66.9 | % | NM | ||||||||||
(1) 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. | |||||||||||||||
(2) Same Facility results represent all facilities purchased prior to | |||||||||||||||
(3) Transitioning Facility results represent all facilities purchased from | |||||||||||||||
(4)Recently Acquired Facility (Acquisitions) results represent all facilities purchased on or subsequent to |
SKILLED NURSING AVERAGE DAILY REVENUE RATES AND PERCENT OF SKILLED NURSING REVENUE AND DAYS BY PAYOR (Unaudited) | |||||||||||||||||||||||||||||||
The following table reflects 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 | |||||||||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
SKILLED NURSING AVERAGE DAILY REVENUE RATES | |||||||||||||||||||||||||||||||
Medicare | $ | 745.00 | $ | 711.24 | $ | 692.63 | $ | 665.71 | $ | 857.22 | $ | 849.75 | $ | 757.86 | $ | 715.64 | |||||||||||||||
Managed care | 548.37 | 517.06 | 527.91 | 513.07 | 596.52 | 591.96 | 549.91 | 519.43 | |||||||||||||||||||||||
Other skilled | 620.47 | 599.52 | 495.13 | 490.82 | 576.46 | 513.98 | 606.82 | 585.02 | |||||||||||||||||||||||
Total skilled revenue | 631.79 | 608.13 | 592.32 | 589.70 | 754.79 | 740.70 | 640.78 | 613.16 | |||||||||||||||||||||||
Medicaid | 293.05 | 267.09 | 269.49 | 243.45 | 299.79 | 264.00 | 289.78 | 262.78 | |||||||||||||||||||||||
Private and other payors | 283.96 | 263.19 | 259.61 | 235.74 | 344.88 | 349.95 | 285.16 | 261.40 | |||||||||||||||||||||||
Total skilled nursing revenue | $ | 401.81 | $ | 381.27 | $ | 338.23 | $ | 322.06 | $ | 459.18 | $ | 476.10 | $ | 398.06 | $ | 375.92 | |||||||||||||||
(1) The rates are based on contractually agreed-upon amounts or rates, excluding the estimates of variable consideration under the revenue recognition standard, |
The following tables set forth our percentage of skilled nursing patient revenue and days by payor source for the periods presented:
Three Months Ended | |||||||||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
PERCENTAGE OF SKILLED NURSING REVENUE | |||||||||||||||||||||||||||||||
Medicare | 21.5 | % | 25.2 | % | 18.7 | % | 24.8 | % | 39.0 | % | 46.7 | % | 23.1 | % | 26.2 | % | |||||||||||||||
Managed care | 20.4 | 20.1 | 14.5 | 12.1 | 13.7 | 15.3 | 18.9 | 18.8 | |||||||||||||||||||||||
Other skilled | 9.0 | 8.3 | 4.7 | 5.1 | 3.4 | 4.9 | 7.9 | 7.7 | |||||||||||||||||||||||
Skilled mix | 50.9 | 53.6 | 37.9 | 42.0 | 56.1 | 66.9 | 49.9 | 52.7 | |||||||||||||||||||||||
Private and other payors | 7.3 | 7.2 | 9.2 | 8.1 | 7.0 | 6.0 | 7.4 | 7.3 | |||||||||||||||||||||||
Medicaid | 41.8 | 39.2 | 52.9 | 49.9 | 36.9 | 27.1 | 42.7 | 40.0 | |||||||||||||||||||||||
TOTAL SKILLED NURSING | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended | |||||||||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
PERCENTAGE OF SKILLED | |||||||||||||||||||||||||||||||
Medicare | 11.6 | % | 13.5 | % | 9.1 | % | 12.0 | % | 20.9 | % | 26.2 | % | 12.1 | % | 13.8 | % | |||||||||||||||
Managed care | 15.0 | 14.8 | 9.3 | 7.6 | 10.6 | 12.3 | 13.7 | 13.6 | |||||||||||||||||||||||
Other skilled | 5.8 | 5.3 | 3.3 | 3.4 | 2.6 | 4.5 | 5.2 | 4.9 | |||||||||||||||||||||||
Skilled mix | 32.4 | 33.6 | 21.7 | 23.0 | 34.1 | 43.0 | 31.0 | 32.3 | |||||||||||||||||||||||
Private and other payors | 10.2 | 10.4 | 11.9 | 11.0 | 9.4 | 8.2 | 10.4 | 10.4 | |||||||||||||||||||||||
Medicaid | 57.4 | 56.0 | 66.4 | 66.0 | 56.5 | 48.8 | 58.6 | 57.3 | |||||||||||||||||||||||
TOTAL SKILLED NURSING | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
UNAUDITED REVENUE BY PAYOR SOURCE | |||||||||||||||
The following table sets forth our service revenue by payor source and as a percentage of total service revenue for the periods presented: | |||||||||||||||
Three Months Ended | |||||||||||||||
2024 | 2023 | ||||||||||||||
Revenue | % of Revenue | Revenue | % of Revenue | ||||||||||||
Medicaid(1) | $ | 390,163 | 38.8 | % | $ | 340,264 | 38.6 | % | |||||||
Medicare | 265,583 | 26.4 | 247,723 | 28.1 | |||||||||||
Medicaid — skilled | 63,309 | 6.4 | 57,927 | 6.6 | |||||||||||
Total Medicaid and Medicare | 719,055 | 71.6 | 645,914 | 73.3 | |||||||||||
Managed care | 188,104 | 18.7 | 156,663 | 17.8 | |||||||||||
Private and other(2) | 97,326 | 9.7 | 79,341 | 8.9 | |||||||||||
SERVICE REVENUE | $ | 1,004,485 | 100.0 | % | $ | 881,918 | 100.0 | % | |||||||
(1) Medicaid payor includes revenue for senior living operations and revenue related to state relief funding. | |||||||||||||||
(2) Private and other also includes revenue from senior living operations and all revenue generated in other ancillary services. |
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 | |||||||
2024 | 2023 | ||||||
Statements of Income Data: | |||||||
Segment income(a) | $ | 126,809 | $ | 113,345 | |||
Depreciation and amortization | 10,536 | 9,064 | |||||
EBITDA | $ | 137,345 | $ | 122,409 | |||
Adjustments to EBITDA: | |||||||
Stock-based compensation expense | 5,214 | 4,156 | |||||
ADJUSTED EBITDA | $ | 142,559 | $ | 126,565 | |||
(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. |
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 | |||||||
2024 | 2023 | ||||||
Rental revenue generated from third-party tenants | $ | 4,195 | $ | 3,786 | |||
Rental revenue generated from Ensign's independent subsidiaries | 18,006 | 15,931 | |||||
TOTAL RENTAL REVENUE | $ | 22,201 | $ | 19,717 | |||
Segment income(a) | 7,258 | 7,219 | |||||
Depreciation and amortization | 6,829 | 5,966 | |||||
FFO(b) | $ | 14,087 | $ | 13,185 | |||
(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 months ended | |||||||
(b) FFO, in accordance with the definition used by the |
Discussion of Non-GAAP Financial Measures
EBITDA consists of net income before (a) other income, net, (b) provisions for income taxes and (c) depreciation and amortization. Adjusted EBITDA consists of net income before (a) other income, net, (b) provisions for income taxes, (c) depreciation and amortization, (d) stock-based compensation expense, (e) acquisition related costs, (f) costs incurred related to new systems implementation, (g) litigation and (h) impairment of long-lived assets. Adjusted EBITDAR consists of net income before (a) other income, net, (b) provisions for income taxes, (c) depreciation and amortization, (d) rent-cost of services, (e) stock-based compensation expense, (f) acquisition related costs, (g) costs incurred related to new systems implementation, (h) litigation and (i) impairment of long-lived assets. Adjusted EBT consists of (a) income before provision for income taxes, (b) stock-based compensation expense, (c) acquisition related costs, (d) costs incurred related to new systems implementation, (e) litigation, (f) impairment of long-lived assets and (g) 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. 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
Source:
2024 GlobeNewswire, Inc., source