Ensign Group Q1 2023 Earnings Report
Key Takeaways
The Ensign Group reported a strong first quarter in 2023, with a 24.3% increase in consolidated GAAP revenues to $886.8 million. GAAP diluted earnings per share increased by 18.0% to $1.05, and adjusted diluted earnings per share increased by 14.1% to $1.13. The company also increased its annual 2023 earnings and revenue guidance.
GAAP diluted earnings per share increased by 18.0% to $1.05, and adjusted diluted earnings per share increased by 14.1% to $1.13 compared to the prior year quarter.
Consolidated GAAP revenues increased by 24.3% to $886.8 million over the prior year quarter.
Same store and transitioning occupancy increased by 4.2% and 5.4%, respectively, over the prior year quarter.
The company increased its annual 2023 earnings guidance to between $4.64 and $4.77 per diluted share and revenue guidance to between $3.68 billion and $3.73 billion.
Ensign Group
Ensign Group
Ensign Group Revenue by Segment
Forward Guidance
Ensign Group increased its annual 2023 earnings guidance to between $4.64 and $4.77 per diluted share, up from $4.60 to $4.74 per diluted share. The company also raised its annual revenue guidance to between $3.68 billion and $3.73 billion, up from its previous guidance of $3.55 billion to $3.62 billion.
Positive Outlook
- Solid skilled mix
- Very strong sequential occupancy growth
- Sooner-than-expected results from recent acquisitions
- Earnings guidance increased to between $4.64 and $4.77 per diluted share
- Revenue guidance increased to between $3.68 billion and $3.73 billion
Challenges Ahead
- Lingering challenges on the labor front
- Potential pressures on occupancy during the summer months
- Normalized health insurance costs assumed
- Management's current expectations regarding reimbursement rates and recovery of the COVID-19 pandemic
- Exclusion of one-time charges, acquisition-related costs, amortization costs related to intangible assets acquired and share-based compensation