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Jun 30, 2023
Ensign Group Q2 2023 Earnings Report
Ensign Group reported record results driven by excellent clinical and financial performance, with improvements in occupancy, skilled revenue, and managed care revenues. Increased annual earnings and revenue guidance, reflecting confidence in continued operational success and growth potential.
Key Takeaways
The Ensign Group reported a strong second quarter with GAAP diluted earnings per share of $1.12 and adjusted earnings per share of $1.16. The company saw increases in skilled services revenue and segment income, along with improvements in same store and transitioning occupancy and revenue. Due to this solid performance, the company increased its annual 2023 earnings and revenue guidance.
GAAP diluted earnings per share was $1.12, and adjusted diluted earnings per share was $1.16, up 10.9% and 14.9% respectively year-over-year.
GAAP net income was $64.0 million, and adjusted net income was $66.3 million, up 10.9% and 15.4% respectively year-over-year.
Total skilled services revenue was $884.2 million, up 25.9% year-over-year, with segment income increasing by 14.4%.
Same store and transitioning occupancy increased by 4.0% and 3.3%, respectively year-over-year.
Ensign Group
Ensign Group
Ensign Group Revenue by Segment
Revenue by Segment
Skilled Services Revenue
CapyFin.comStandard Bearer Revenue
CapyFin.com Forward Guidance
The company raised its annual 2023 earnings guidance to between $4.70 and $4.78 per diluted share, up from $4.64 to $4.77 per diluted share, and raised its annual revenue guidance to between $3.69 billion and $3.73 billion, up from $3.68 billion to $3.73 billion.
Positive Outlook
- Solid skilled mix and occupancy growth.
- Continued strength from recent acquisitions.
- Earnings guidance increased to $4.70 to $4.78 per diluted share.
- Revenue guidance increased to $3.69 billion to $3.73 billion.
- Expect to announce a handful of new acquisition announcements in the very near future.
Challenges Ahead
- Operating environment continues to present challenges.
- Persistent labor market pressures.
- Return of more typical seasonality.
- Transitional growth pains expected in recently acquired operations, including some pressures on occupancy.
- Guidance excludes one-time charges, acquisition-related costs and amortization costs related to intangible assets acquired and share-based compensation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income