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Sep 30, 2021

Ensign Group Q3 2021 Earnings Report

Ensign Group reported Q3 2021 results, with GAAP diluted earnings per share of $0.83 and adjusted earnings per share of $0.91. The company increased its 2021 earnings guidance and announced the formation of a captive REIT.

Key Takeaways

The Ensign Group reported a record quarter with significant improvements in occupancy and skilled revenue, despite challenges related to the pandemic and labor market disruptions. The company increased its annual 2021 earnings guidance.

GAAP diluted earnings per share increased by 7.8% to $0.83, and adjusted diluted earnings per share increased by 16.7% to $0.91 year-over-year.

Consolidated GAAP revenues and adjusted revenues increased by approximately 11.6% year-over-year to $668.5 million.

Same store and transitioning managed care census increased by 25.0% and 30.4%, respectively, and managed care revenue improved by 26.4% and 28.3%, respectively, over the prior year quarter.

GAAP net income increased by 9.8% over the prior year quarter to $47.3 million.

Total Revenue
$669M
Previous year: $599M
+11.6%
EPS
$0.91
Previous year: $0.78
+16.7%
Occupancy percentage
73.5%
Previous year: 70.7%
+4.0%
Gross Profit
$119M
Previous year: $102M
+16.9%
Cash and Equivalents
$305M
Previous year: $175M
+73.7%
Total Assets
$2.81B
Previous year: $2.46B
+14.1%

Ensign Group

Ensign Group

Ensign Group Revenue by Segment

Forward Guidance

The company increased its annual 2021 earnings guidance to between $3.60 and $3.68 per diluted share and affirmed its previous annual revenue guidance of $2.62 billion to $2.69 billion.

Positive Outlook

  • Expect to see some continued improvement in the fourth quarter.
  • Increased annual 2021 earnings guidance to between $3.60 and $3.68 per diluted share, up from the previous guidance of $3.55 to $3.67 per diluted share.
  • Affirming previous annual revenue guidance of $2.62 billion to $2.69 billion.
  • The new midpoint of this 2021 earnings guidance represents an increase of 16.3% over our 2020 results and is 104.5% higher than our 2019 results.
  • Well-positioned not only to continue our positive operational momentum but to accelerate our growth.