The Ensign Group Reports Record Net Income, Adjusted Earnings of 0.62 Per Share
Conference Call and Webcast Scheduled for November 8, 2012 at 10:00 am PT
MISSION VIEJO, Calif., Nov 7, 2012 (Menafn - GlobeNewswire via COMTEX) --The Ensign Group, Inc. ENSG, the parent company of the Ensign(TM) group of skilled nursing, rehabilitative care services, assisted and independent living, home health, hospice care and urgent care companies, today reported operating results for the third quarter of 2012.
Financial highlights for the Third Quarter include:
--Net income climbed 14.6% to a record 13.3 million;
--Same-store skilled nursing occupancy grew by 40 basis points over the
prior year quarter to 82.1%;
--Same-store skilled mix days held steady at 28.7% despite reported soft
hospital occupancy in many markets, while consolidated skilled days grew
by 34 basis points to 25.2% of patient days;
--Consolidated EBITDAR was a record 34.4 million, an increase of 3.0%
over the prior year quarter, and the fourth consecutive sequential
increase since the October 1, 2011 implementation of an 11.1% Medicare
cut and changes to therapy regulations which increased therapy costs;
and
--Consolidated revenues were a record 207.2 million, up 5.5%.
Operating Results
Ensign matched its adjusted earnings per share for the same quarter of 2011, despite the effects of last October's unprecedented 11.1% reduction in Medicare rates to skilled nursing facilities and a simultaneous change in therapy regulations that increased the cost of delivering physical and other types of therapy to skilled nursing patients.
"We have now successfully navigated a full four quarters under the difficult circumstances posed by last years' cuts, and have posted improved operating results each quarter," said Christopher Christensen, Ensign's President and Chief Executive Officer. He observed that, even though same-store revenues are tracking behind the prior year as a result of the cuts, the 14.6% earnings increase illustrates that Ensign's unique operating model has been able to adjust effectively on the expense side to the new reimbursement realities in skilled nursing care.
Mr. Christensen also highlighted the company's diversification into home health and hospice care, and into subacute care, as further evidence of the organization's agility and ability to quickly adjust in the face of operating headwinds. "As always, it is our empowered and motivated local leaders and their teams that have rallied to make up lost revenues, craft their own unique and innovative ways to get the job done, and again set Ensign apart from the crowd," he said.
Mr. Christensen noted that the last four quarters "have been the perfect storm" for the skilled nursing industry, adding, "And we are grateful that -- while we have increased revenue, earnings and occupancy more slowly than last year -- we have nevertheless increased, and done so through a very difficult time."
In other results, Chief Financial Officer Suzanne Snapper reported that EBITDA rose nearly 1.0 million to 31.1 million, notwithstanding the October 2011 Medicare cuts and therapy changes. She noted that Ensign, as a growing, dynamic company, had benefitted from the contributions of recently-acquired and transitioning facilities, which posted revenue gains of 80% and 5.7% respectively, more than offsetting the 3.3% decline in same-store revenue resulting from the 2011 cuts.
She also reported that, while much of the industry appears to have suffered a decline in occupancy during the quarter, Ensign's same-store skilled nursing occupancy was actually up by 40 basis points to 82.1%, and same-store occupancy was up 35 basis points to 82.2%. "We believe that as the quality of our service offerings, our superior clinical outcomes and our connections to our individual markets continue to strengthen, we will increasingly draw market share across the portfolio," she added, noting that the largest increases are expected "at the higher end of the acuity spectrum."
Fully diluted GAAP earnings per share were 0.60 for the quarter, an 11.1% increase compared to 0.54 in the third quarter of 2011. Adjusted non-GAAP earnings for the quarter were 0.62 per fully diluted share, compared to 0.62 in the third quarter of 2011. A reconciliation of key GAAP and non-GAAP financial metrics appears in the financial data included with this release. More complete information is contained in the Company's 10-Q, which was filed with the SEC today and can be viewed on the Company's website at http://www.ensigngroup.net.
2012 Guidance Confirmed
Management confirmed its annual guidance, which was increased following the second quarter, projecting adjusted net income of 2.48 to 2.56 per diluted share on revenues of 830 million to 846 million. The guidance is based on diluted weighted average common shares outstanding of 22.1 million and assumes, among other things, no additional acquisitions or dispositions beyond those made to date, the effects of the announced Medicare market basket update, anticipated increases in overall net Medicaid reimbursement rates, a normalized tax rate of approximately 39%, and that tax rates do not materially increase. It also excludes expenses related to normalized rent from one operating lease for a not-yet opened facility and the costs associated with the settlement of the California class action, as well as expenses related to the DOJ investigation which can vary widely from quarter to quarter depending on the DOJ's activities and the required response by the Company.
Quarter Highlights
Dividend Declared
During the quarter, the company's Board of Directors declared a quarterly cash dividend of 0.06 per share of Ensign common stock. Ensign has been a dividend-paying company since 2002, and has increased its dividend every year.
Acquisition Growth
During the quarter, the company announced the acquisition of one skilled nursing and assisted living campus and one skilled nursing facility, both in the same transaction. In addition, the company exercised fixed-formula purchase options on three skilled nursing facilities it has operated for many years. The facilities were purchased with cash, and include:
--In Idaho, Discovery Care Center, a 45-bed skilled nursing and 24-unit
assisted living campus in Salmon.
--Also in Idaho, Owyhee Health & Rehabilitation Center, a 49-bed skilled
nursing facility located in Homedale, a suburb of the growing Boise
market.
--In Southern California, Ensign exercised a purchase option to acquire
the underlying real estate of Palomar Vista Healthcare Center, a 74-bed
skilled nursing facility located in Escondido. An Ensign subsidiary has
operated Palomar Vista since 2003 under a lease from the family that
founded the facility.
--Also in Southern California, Ensign exercised purchase options to
acquire the underlying real estate of Atlantic Memorial Healthcare
Center, a 104-bed skilled nursing facility, and Shoreline Healthcare
Center, a 75-bed skilled nursing facility, both located in the City of
Long Beach. Separate Ensign subsidiaries have operated the two
facilities since 2002 under leases from the family that built and
originally operated the two facilities.
The acquisitions brought Ensign's growing portfolio to 107 facilities, 85 of which are Ensign-owned, with Ensign affiliates holding purchase options on two of Ensign's 22 leased facilities, as well as four hospice companies and six home health businesses, spread over 11 states. Management reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care, home health and hospice operations across the United States.
Conference Call
A live webcast will be held on Thursday, November 8, 2012 at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time) to discuss Ensign's third quarter 2012 financial results. To listen to the webcast, or to view any financial or statistical information required by SEC Regulation G, please visit the Investors section of the Ensign 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, November 23, 2012.
About Ensign(TM)
The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services, and other rehabilitative and healthcare services for both long-term residents and short-stay rehabilitation patients at 107 facilities, four hospice companies and six home health businesses in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa, Nebraska and Oregon. Each of these facilities and businesses is operated by a separate, independent operating 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 home health and hospice businesses, the urgent care joint venture, the Service Center or the captive insurance subsidiary are operated by the same entity. More information about Ensign is available at http://www.ensigngroup.net.
The Ensign Group, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13849
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. 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 facilities, its ability to manage its increasing borrowing costs as it incurs additional indebtedness to fund the acquisition and development of facilities; 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 facilities; competition from other companies in the acquisition, development and operation of facilities; 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 facilities if necessary. 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, which was filed today, 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.
THE ENSIGN GROUP, INC.
GAAP and ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
----------------------------------------------------------------------------------------------------------------------
Three Months EndedNine Months Ended
September 30, 2012September 30, 2012
--------------------------------------------------------------------------------------
AsNon-GAAPAsAsNon-GAAPAs
ReportedAdj.AdjustedReportedAdj.Adjusted
--------------------------------------------------------
Revenue 207,150 207,150 613,618 613,618
Expense:
Cost of services (exclusive
of facility rent, general
and administrative and
depreciation and
amortization expense shown
separately below)164,877(307)(1)(2)164,570488,305(3,265)(1)(2)(3)485,040
Facility rent--cost of
services3,374(153)(4)3,22110,063(445)(4)9,618
General and administrative
expense8,099(594)(5)7,50523,933(1,442)(5)22,491
Depreciation and
amortization7,179(127)7,05221,145(433)20,712
------------------(6)----------------------------(6)----------
Total expenses183,529(1,181)182,348543,446(5,585)537,861
Income from operations23,6211,18124,80270,1725,58575,757
Other income (expense):
Interest expense(3,092)(3,092)(9,131)(9,131)
Interest income6969172172
--------------------------------------------------------
Other expense, net(3,023)(3,023)(8,959)(8,959)
Income before provision for
income taxes20,5981,18121,77961,2135,58566,798
Tax Effect on Non-GAAP
Adjustments461(7)2,178(7)
Tax True-up for Effective
Tax Rate471803
--------(8)--------(8)
Provision for income taxes7,5629328,49423,0702,98126,051
--------------------------------------------------------
Net income 13,036249 13,285 38,1432,604 40,747
========================================================
Less: net loss attributable
to noncontrolling interests(258)(258)(511)(511)
Net income attributable to
The Ensign Group, Inc. 13,294249 13,543 38,6542,604 41,258
========================================================
Net income per share:
Basic 0.62 0.63 1.81 1.93
========================================
Diluted 0.60 0.62 1.77 1.88
========================================
Weighted average common
shares outstanding:
Basic21,48821,48821,36921,369
========================================
Diluted22,01022,01021,89921,899
========================================
----------------------------
----------------------------------------------------------------------------------------------------------------------
(1) Represents acquisition-related costs of 110 and 230 for the three and nine months ended September 30, 2012,
respectively.
----------------------------------------------------------------------------------------------------------------------
(2) Represents costs of 197 and 439 for the three and nine months ended September 30, 2012, respectively, incurred
to recognize income tax credits which contributed to decrease in effective tax rate.
(3) Represents the settlement of a class action lawsuit regarding minimum staffing requirements in the state of
California of 2,596 during the three months ended June 30, 2012.
(4) Represents straight-line rent amortization for a facility which the Company has begun construction activities, but
has not commenced operations of a skilled nursing facility as of September 30, 2012.
(5) Represents legal costs incurred in connection with the ongoing investigation into the billing and reimbursement
processes of some of our subsidiaries being conducted by the Department of Justice (DOJ).
(6) Represents amortization costs related to patient base intangible assets acquired. Patient base intangible assets
are amortized over a period of four to eight months, depending on the classification of the patients and the level of
occupancy in a new acquisition on the acquisition date.
(7) Represents the tax impact of non-GAAP adjustments noted in (1) -- (6) at a normalized rate of 39.0%.
(8) In FY 2011 and 2010, the Company's effective tax rate was 38.3% and 39.3%, respectively. Therefore, this
represents an adjustment to the provision for income taxes to normalize our current quarter effective rate to 39.0%.
THE ENSIGN GROUP, INC.
GAAP and ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
-----------------------------------------------------------------------------------------------------------
Three Months EndedNine Months Ended
September 30, 2011September 30, 2011
--------------------------------------------------------------------------
AsNon-GAAPAsAsNon-GAAPAs
ReportedAdj.AdjustedReportedAdj.Adjusted
--------------------------------------------------------
Revenue 196,346 196,346 565,615 565,615
Expense:
Cost of services (exclusive
of facility rent, general
and administrative and
depreciation and
amortization expense shown
separately below)155,725(158)(1)155,567444,517(362)(1)444,155
Facility rent--cost of
services3,3313,33110,38010,380
General and administrative
expense7,1957,19522,18822,188
Depreciation and
amortization6,179(249)5,93016,784(808)15,976
------------------(2)----------------------------(2)----------
Total expenses172,430(407)172,023493,869(1,170)492,699
Income from operations23,91640724,32371,7461,17072,916
Other income (expense):
Interest expense(5,323)2,542(2,781)(10,789)2,542(3)(8,247)
Interest income6868198198
--------------------------------------------------------
Other expense, net(5,255)2,542(2,713)(10,591)2,542(8,049)
Income before provision for
income taxes18,6612,94921,61061,1553,71264,867
Provision for income taxes7,0631,1168,17923,8351,44725,282
------------------(4)--------------------------------------
Net income 11,5981,833 13,431 37,3202,265 39,585
========================================================
Net income per share:
Basic 0.55 0.64 1.78 1.89
========================================
Diluted 0.54 0.62 1.73 1.84
========================================
Weighted average common
shares outstanding:
Basic20,99520,99520,92020,920
========================================
Diluted21,57021,57021,57121,571
========================================
-----------------------------------------------------------------------------------------------------------
(1) Represents acquisition-related costs expenses.
(2) Represents amortization costs related to patient base intangible assets acquired. Patient base
intangible assets are amortized over a period of four to eight months, depending on the classification of
the patients and the level of occupancy in a new acquisition on the acquisition date.
(3) Represents the loss on extinguishment and amortization of remaining deferred financing costs in
connection with the Senior Credit Facility entered into by the Company on July 15, 2011.
(4) Represents the tax impact of acquisition costs, patient base and loss on extinguishment of debt
non-GAAP adjustments represented in entries (1) - (3).
THE ENSIGN GROUP, INC.
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDAR
(in thousands)
The table below reconciles net income to EBITDA and EBITDAR for the periods
presented:
Three Months EndedNine Months Ended
September 30,Septebmer 30,
-----------------------------------------
2012201120122011
-------------------------------------
Consolidated Statements of Income
Data:
Net income 13,036 11,598 38,143 37,320
Net loss attributable to
noncontrolling interests258--511--
Interest expense, net3,0235,2558,95910,591
Provision for income taxes7,5627,06323,07023,835
Depreciation and amortization7,1796,17921,14516,784
-------------------------------------
EBITDA 31,058 30,095 91,828 88,530
=====================================
Facility rent--cost of services3,3743,33110,06310,380
-------------------------------------
EBITDAR 34,432 33,426 101,891 98,910
=====================================
THE ENSIGN GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
SeptemberDecember
30,31,
20122011
--------------------
Assets
Current assets:
Cash and cash equivalents 32,028 29,584
Accounts receivable -- less
allowance for doubtful accounts
of 13,628 and 12,782 at
September 30, 2012 and December
31, 2011, respectively98,07286,311
Investments -- current4,254--
Prepaid income taxes3,2325,882
Prepaid expenses and other
current assets7,9857,667
Deferred tax asset -- current10,17811,195
--------------------
Total current assets155,749140,639
Property and equipment, net439,233403,862
Insurance subsidiary deposits and
investments18,14916,752
Escrow deposits--175
Deferred tax asset4,7873,514
Restricted and other assets12,38510,418
Intangible assets, net4,8672,321
Goodwill22,18017,177
Other indefinite-lived
intangibles10,5981,481
--------------------
Total assets 667,948 596,339
====================
Liabilities and equity
Current liabilities:
Accounts payable 23,211 21,169
Accrued wages and related
liabilities34,86841,958
Accrued self-insurance
liabilities -- current15,89712,369
Other accrued liabilities22,61518,577
Current maturities of long-term
debt7,1336,314
--------------------
Total current liabilities103,724100,387
Long-term debt -- less current
maturities192,299181,556
Accrued self-insurance
liabilities -- less current
portion34,92831,904
Fair value of interest rate swap3,1162,143
Deferred rent and other long-term
liabilities3,3062,864
--------------------
Total liabilities337,373318,854
--------------------
Temporary equity -- redeemable
noncontrolling interest11,511--
--------------------
Total equity319,064277,485
--------------------
Total liabilities and equity 667,948 596,339
====================
THE ENSIGN GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
The following table presents selected data from our
condensed consolidated statements of cash flows for the
periods presented:
Nine Months Ended
September 30,
----------------------
20122011
--------------------
Net cash provided by operating
activities 51,593 53,245
Net cash used in investing
activities(61,841)(126,870)
Net cash provided by (used in)
financing activities12,69227,187
--------------------
Net increase (decrease) in cash
and cash equivalents2,444(46,438)
Cash and cash equivalents
beginning of period29,58472,088
--------------------
Cash and cash equivalents end of
period 32,028 25,650
====================
THE ENSIGN GROUP, INC.
SELECT PERFORMANCE INDICATORS
The following tables summarize our selected performance indicators, along with other
statistics, for each of the dates or periods indicated:
Three Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Total Facility Results:
Revenue 207,150 196,346 10,8045.5%
Number of facilities at period end1079988.1%
Actual patient days872,701812,62760,0747.4%
Occupancy percentage -- Operational
beds78.7%78.7%--%
Skilled mix by nursing days25.2%24.9%0.3%
Skilled mix by nursing revenue49.3%51.3%(2.0)%
Three Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Same Facility Results(1):
Revenue 139,664 144,357 (4,693)(3.3)%
Number of facilities at period end6262----%
Actual patient days537,256536,5007560.1%
Occupancy percentage -- Operational
beds82.2%81.8%0.4%
Skilled mix by nursing days28.7%28.7%--%
Skilled mix by nursing revenue53.3%55.7%(2.4)%
Three Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Transitioning Facility Results(2):
Revenue 37,163 35,147 2,0165.7%
Number of facilities at period end2020----%
Actual patient days168,062159,7508,3125.2%
Occupancy percentage -- Operational
beds75.7%71.9%3.8%
Skilled mix by nursing days18.8%16.8%2.0%
Skilled mix by nursing revenue40.0%38.6%1.4%
Three Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Recently Acquired Facility
Results(3):
Revenue 30,323 16,842 13,481NM
Number of facilities at period end25178NM
Actual patient days167,383116,37751,006NM
Occupancy percentage -- Operational
beds71.9%75.2%NM
Skilled mix by nursing days16.8%11.0%NM
Skilled mix by nursing revenue37.0%29.1%NM
_______________________
(1)Same Facility results represent all facilities purchased prior to January 1, 2009.
(2)Transitioning Facility results represents all facilities purchased from January 1,
2009 to December 31, 2010.
(3)Recently Acquired Facility (or "Acquisitions") results represent all facilities
purchased on or subsequent to January 1, 2011.
Nine Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Total Facility Results:
Revenue 613,618 565,615 48,0038.5%
Number of facilities at period end1079988.1%
Actual patient days2,580,0262,291,107288,91912.6%
Occupancy percentage -- Operational
beds79.2%79.5%(0.3)%
Skilled mix by nursing days25.8%25.8%--%
Skilled mix by nursing revenue50.1%52.2%(2.1)%
Nine Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Same Facility Results(1):
Revenue 421,993 430,621 (8,628)(2.0)%
Number of facilities at period end6262----%
Actual patient days1,614,5541,601,36013,1940.8%
Occupancy percentage -- Operational
beds82.9%82.3%0.6%
Skilled mix by nursing days29.6%29.2%0.4%
Skilled mix by nursing revenue54.3%56.2%(1.9)%
Nine Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Transitioning Facility Results(2):
Revenue 108,611 104,442 4,1694.0%
Number of facilities at period end2020----%
Actual patient days493,258481,27711,9812.5%
Occupancy percentage -- Operational
beds74.6%73.0%1.6%
Skilled mix by nursing days17.8%16.2%1.6%
Skilled mix by nursing revenue38.3%37.7%0.6%
Nine Months Ended
September 30,
----------------------
20122011
--------------------
(Dollars in thousands)Change% Change
------------------------
Recently Acquired Facility
Results(3):
Revenue 83,014 30,552 52,462NM
Number of facilities at period end25178NM
Actual patient days472,152208,453263,699NM
Occupancy percentage -- Operational
beds72.9%75.1%NM
Skilled mix by nursing days17.4%13.2%NM
Skilled mix by nursing revenue38.6%32.9%NM
_______________________
(1)Same Facility results represent all facilities purchased prior to January 1, 2009.
(2)Transitioning Facility results represents all facilities purchased from January 1,
2009 to December 31, 2010.
(3)Recently Acquired Facility (or "Acquisitions") results represent all facilities
purchased on or subsequent to January 1, 2011.
THE ENSIGN GROUP, INC.
SKILLED NURSING AVERAGE DAILY REVENUE RATES AND
PERCENT OF SKILLED NURSING REVENUE AND DAYS BY PAYOR
The following table reflects the change in the skilled nursing average daily revenue rates by payor source, excluding
services that are not covered by the daily rate:
Three Months Ended September 30,
---------------------------------------------------------------------------------------------------------
Same FacilityTransitioningAcquisitionsTotal
-----------------------------------------------------------------------------------------------%
20122011201220112012201120122011Change
---------------------------------------------------------------------------------------------------------
Skilled Nursing
Average Daily
Revenue Rates:
Medicare 564.05 643.35 483.99 536.50 464.93 472.68 539.13 616.78(12.6)%
Managed care380.35369.63399.24415.53398.82490.71383.29375.052.2%
Other skilled565.92538.68582.27550.61----568.60539.855.3%
Total skilled
revenue494.56535.11467.43509.47454.10474.63487.11529.46(8.0)%
Medicaid171.03168.44161.56160.86150.51137.38166.74164.601.3%
Private and
other payors195.48188.75166.36177.01167.14152.27180.75177.242.0%
Total skilled
nursing
revenue 266.15 275.75 219.68 221.55 206.73 180.37 249.38 257.06(3.0)%
Nine Months Ended September 30,
---------------------------------------------------------------------------------------------------------
Same FacilityTransitioningAcquisitionsTotal
-----------------------------------------------------------------------------------------------%
20122011201220112012201120122011Change
---------------------------------------------------------------------------------------------------------
Skilled Nursing
Average Daily
Revenue Rates:
Medicare 561.39 640.30 484.52 535.07 471.11 468.00 539.61 617.12(12.6)%
Managed care371.90368.52405.64424.72405.85489.89376.64373.990.7%
Other skilled571.69530.87579.57520.02----572.78530.028.1%
Total skilled
revenue491.37530.69469.82508.88460.53470.05485.99526.38(7.7)%
Medicaid170.11167.54162.71160.42147.24138.87166.22164.760.9%
Private and
other payors197.05187.29170.78173.71165.15156.45182.19179.691.4%
Total skilled
nursing
revenue 267.72 275.62 218.53 218.57 207.64 189.26 250.98 259.85(3.4)%
The following tables set forth our percentage of skilled nursing patient revenue and days by payor
source for the three and nine months ended September 30, 2012 and 2011:
Three Months Ended September 30,
------------------------------------------------------------------------------
Same FacilityTransitioningAcquisitionsTotal
------------------------------------------------------------------------
20122011201220112012201120122011
----------------------------------------------------------------
Percentage of
Skilled Nursing
Revenue:
Medicare33.6%37.9%26.9%29.6%31.7%25.8%32.3%35.9%
Managed care15.514.39.57.25.33.313.412.5
Other skilled4.23.53.61.8----3.62.9
----------------------------------------------------------------
Skilled mix53.355.740.038.637.029.149.351.3
Private and other
payors7.07.010.710.724.832.69.59.2
----------------------------------------------------------------
Quality mix60.362.750.749.361.861.758.860.5
Medicaid39.737.349.350.738.238.341.239.5
----------------------------------------------------------------
Total skilled
nursing100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
================================================================
Three Months Ended September 30,
------------------------------------------------------------------------------
Same FacilityTransitioningAcquisitionsTotal
------------------------------------------------------------------------
20122011201220112012201120122011
----------------------------------------------------------------
Percentage of
Skilled Nursing
Days:
Medicare15.9%16.3%12.2%12.2%14.1%9.8%14.9%14.9%
Managed care10.910.75.23.92.71.28.78.6
Other skilled1.91.71.40.7----1.61.4
----------------------------------------------------------------
Skilled mix28.728.718.816.816.811.025.224.9
Private and other
payors9.510.214.213.330.838.713.213.3
----------------------------------------------------------------
Quality mix38.238.933.030.147.649.738.438.2
Medicaid61.861.167.069.952.450.361.661.8
----------------------------------------------------------------
Total skilled
nursing100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
================================================================
The following tables set forth our percentage of skilled nursing patient revenue and days by payor
source for the three and nine months ended September 30, 2012 and 2011:
Nine Months Ended September 30,
------------------------------------------------------------------------------
Same FacilityTransitioningAcquisitionsTotal
------------------------------------------------------------------------
20122011201220112012201120122011
----------------------------------------------------------------
Percentage of
Skilled Nursing
Revenue:
Medicare34.8%38.1%26.6%29.1%33.1%29.7%33.3%36.3%
Managed care15.314.88.77.35.53.213.213.1
Other skilled4.23.33.01.3----3.62.8
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Skilled mix54.356.238.337.738.632.950.152.2
Private and other
payors7.07.110.610.626.030.79.58.6
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Quality mix61.363.348.948.364.663.659.660.8
Medicaid38.736.751.151.735.436.440.439.2
----------------------------------------------------------------
Total skilled
nursing100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
================================================================
Nine Months Ended September 30,
------------------------------------------------------------------------------
Same FacilityTransitioningAcquisitionsTotal
------------------------------------------------------------------------
20122011201220112012201120122011
----------------------------------------------------------------
Percentage of
Skilled Nursing
Days:
Medicare16.6%16.4%12.0%11.9%14.6%12.0%15.5%15.3%
Managed care11.011.14.73.82.81.28.89.1
Other skilled2.01.71.10.5----1.51.4
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Skilled mix29.629.217.816.217.413.225.825.8
Private and other
payors9.610.413.613.432.737.213.212.4
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Quality mix39.239.631.429.650.150.439.038.2
Medicaid60.860.468.670.449.949.661.061.8
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Total skilled
nursing100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
================================================================
THE ENSIGN GROUP, INC.
REVENUE BY PAYOR SOURCE
The following table sets forth our total revenue by payor source and as a percentage of total revenue
for the periods indicated:
Three Months EndedNine Months Ended
September 30,September 30,
----------------------------------------------------------------------------
2012201120122011
------------------------------------------------------------------------
%%%%
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Revenue:(Dollars in thousands)
Medicaid 76,70937.0% 70,96736.1% 223,93436.5% 204,27336.1%
Medicare69,52633.6%71,29336.3%209,71534.2%207,89736.8%
Medicaid--skilled6,3163.0%5,0242.6%18,5903.0%13,7302.4%
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Total152,55173.6%147,28475.0%452,23973.7%425,90075.3%
Managed Care26,31612.7%23,62112.0%77,73812.7%71,93812.7%
Private and Other28,28313.7%25,44113.0%83,64113.6%67,77712.0%
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Total revenue 207,150100.0% 196,346100.0% 613,618100.0% 565,615100.0%
================================================================
Discussion of Non-GAAP Financial Measures
EBITDA consists of net income, adjusted for net losses attributable to noncontrolling interest, before
(a) interest expense, net, (b) provisions for income taxes, and (c) depreciation and amortization.
EBITDAR consists of net income before (a) interest expense, net, (b) provisions for income taxes, (c)
depreciation and amortization, and (d) facility rent-cost of services. The Company believes that the
presentation of EBITDA and EBITDAR provides important supplemental information to management and
investors to evaluate the Company's operating performance. The Company believes disclosure of
adjusted non-GAAP net income and non-GAAP diluted earnings per share has economic substance because
the excluded expenses are infrequent in nature and are variable in nature, or do not represent
current 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 measure provides useful information to investors, the specific manner in which management
uses this measure, and some of the limitations associated with the use of this measure, please refer
to the Company's Report on Form 10-Q filed today with the SEC. The Form 10-Q is available on the
SEC's website at www.sec.gov or under the "Financial Information" link of the Investor Relations
section on Ensign's website at http://www.ensigngroup.net.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: The Ensign Group, Inc.
(Logo:http://media.primezone.com/cache/21305/int/14772.jpg)
CONTACT: Robert East,
Westwicke Partners LLC, (443) 213-0500,
bob.east@westwickepartners.com,
or
Gregory Stapley, Investor/Media Relations,
The Ensign Group, Inc., (949) 487-9500,
ir@ensigngroup.net
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
