Ensign Group Q3 2020 Earnings Report
Key Takeaways
The Ensign Group announced record operating results for the third quarter of 2020, with GAAP diluted earnings per share of $0.77 and adjusted earnings per share of $0.78. Consolidated GAAP revenues for the quarter were $599.3 million. The company increased its 2020 annual earnings guidance to $3.04 to $3.12 per diluted share and provided 2021 annual earnings per share guidance of $3.44 to $3.56 per diluted share.
GAAP diluted earnings per share increased by 97.4% over the prior year quarter.
Adjusted diluted earnings per share increased by 95.0% over the prior year quarter.
Consolidated GAAP revenues increased by 17.0% over the prior year quarter.
GAAP net income increased by 94.4% over the prior year quarter.
Ensign Group
Ensign Group
Ensign Group Revenue by Segment
Forward Guidance
The company is increasing its 2020 annual earnings guidance to $3.04 to $3.12 per diluted share and maintaining annual revenue guidance of $2.42 billion to $2.45 billion. Management also provided guidance for 2021, with annual earnings per share guidance of $3.44 to $3.56 per diluted share and annual revenue guidance of $2.62 billion to $2.69 billion.
Positive Outlook
- Enormous upside in newly acquired operations.
- Great acquisitions on the horizon.
- Operations are primed to rebuild occupancies.
- Operations are primed to gain additional market share.
- Deepened relationships with acute care providers and other healthcare partners.
Challenges Ahead
- Significant impact from the pandemic on the fourth quarter and beyond.
- Continued COVID-19-related expenses in the fourth quarter and into 2021.
- Higher labor costs.
- Ongoing acquisition of unprecedented levels of PPE.
- Costs related to more and more testing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income