Mar 31, 2021

Ensign Group Q1 2021 Earnings Report

Ensign Group reported record results for Q1 2021, with GAAP diluted earnings per share of $0.86 and adjusted earnings per share of $0.87. Consolidated GAAP revenues were $627.3 million, and management raised the Company’s 2021 annual earnings guidance.

Key Takeaways

Ensign Group reported record operating results for the first quarter of 2021. GAAP diluted earnings per share was $0.86, and adjusted earnings per share was $0.87. Consolidated GAAP revenues reached $627.3 million. Management increased the Company’s 2021 annual earnings guidance to $3.54 to $3.66 per diluted share.

GAAP diluted earnings per share increased by 17.8% over the prior year quarter, reaching $0.86.

Adjusted diluted earnings per share increased by 13.0% over the prior year quarter, totaling $0.87.

Consolidated GAAP revenues increased by 6.4% over the prior year quarter, amounting to $627.3 million.

Same store and transitioning skilled revenue improved by 7.6% and 43.7%, respectively, over the prior year quarter.

Total Revenue
$627M
Previous year: $590M
+6.4%
EPS
$0.87
Previous year: $0.77
+13.0%
Occupancy percentage
71.1%
Previous year: 79.4%
-10.5%
Gross Profit
$112M
Previous year: $103M
+8.6%
Cash and Equivalents
$156M
Previous year: $63.2M
+146.0%
Total Assets
$2.51B
Previous year: $2.39B
+5.2%

Ensign Group

Ensign Group

Ensign Group Revenue by Segment

Forward Guidance

Management increased the Company’s 2021 annual earnings guidance to $3.54 to $3.66 per diluted share and affirmed its previous annual revenue guidance of $2.62 billion to $2.69 billion. The midpoint of this 2021 earnings guidance represents an increase of approximately 15% over the Company’s 2020 results.

Positive Outlook

  • Strong results during the first quarter
  • Positive trends in occupancy
  • Continuation of sequestration suspension
  • Higher Medicaid funding in certain states
  • Proven local leadership strategy

Challenges Ahead

  • Normalized health insurance costs
  • Normal anticipated Medicare and Medicaid reimbursement rate increases, net of provider taxes
  • Acquisitions closed in the first half of 2021
  • Recovery of the COVID-19 pandemic
  • Excludes acquisition-related costs and amortization costs related to intangible assets acquired, share-based compensation and start-up losses

Revenue & Expenses

Visualization of income flow from segment revenue to net income