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Jun 30, 2020
Ensign Group Q2 2020 Earnings Report
Ensign Group reported record operating results and returned all Provider Relief Funds received through the CARES Act for Q2 2020.
Key Takeaways
Ensign Group reported a strong second quarter with GAAP diluted earnings per share of $0.73 and adjusted earnings per share of $0.78. Consolidated GAAP revenues for the quarter were $584.7 million. The company returned approximately $110.0 million in Provider Relief Funds received through the CARES Act.
GAAP diluted earnings per share increased by 97.3% year-over-year to $0.73.
Adjusted diluted earnings per share increased by 100.0% year-over-year to $0.78.
Consolidated GAAP revenues increased by 18.6% year-over-year to $584.7 million.
The company returned all CARES Act Provider Relief Funds, representing approximately $110.0 million.
Ensign Group
Ensign Group
Forward Guidance
The company increased its 2020 annual earnings guidance to $3.00 to $3.10 per diluted share and affirmed its previous annual revenue guidance of $2.42 billion to $2.45 billion.
Positive Outlook
- Increased 2020 annual earnings guidance to $3.00 to $3.10 per diluted share.
- Affirmed previous annual revenue guidance of $2.42 billion to $2.45 billion.
- Company is optimistic that occupancies will begin to recover once community spread begins to slow.
- Company is well positioned to operate within the current environment.
- Company is in a strong position to return to its pre-COVID path when things normalize.
Challenges Ahead
- The company expects to continue to see a significant impact from the pandemic on the third quarter stretching into the fourth quarter.
- Pathway to achieving these results will differ significantly from our typical quarterly cadence.
- As this virus continues to spread in unpredictable ways and as testing continues to become more and more available, we will continue to see positive cases in our operations throughout the third quarter.
- Company’s portfolio has experienced an increase in COVID-19 cases in its buildings in correlation with the trends occurring in the local community.
- Occupancies are lower than they were a year ago at this time.