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Sep 30, 2022

Ensign Group Q3 2022 Earnings Report

Ensign Group reported strong Q3 2022 results, marked by revenue growth and increased earnings per share.

Key Takeaways

Ensign Group reported a strong third quarter with a 15.2% increase in consolidated GAAP revenues, reaching $770.0 million. GAAP diluted earnings per share increased by 19.3% to $0.99, and adjusted diluted earnings per share increased by 14.3% to $1.04. The company also raised its annual 2022 earnings guidance to $4.10 to $4.18 per diluted share and revenue guidance to $3.01 billion to $3.03 billion.

GAAP diluted earnings per share increased by 19.3% to $0.99, and adjusted diluted earnings per share increased by 14.3% to $1.04 year-over-year.

Consolidated GAAP revenues increased by 15.2% to $770.0 million year-over-year.

Total skilled services revenue increased by 15.1% to $739.3 million year-over-year.

The company raised its annual 2022 earnings guidance to $4.10 to $4.18 per diluted share and revenue guidance to $3.01 billion to $3.03 billion.

Total Revenue
$770M
Previous year: $669M
+15.2%
EPS
$1.04
Previous year: $0.91
+14.3%
Occupancy percentage
75.7%
Previous year: 73.5%
+3.0%
Gross Profit
$129M
Previous year: $119M
+9.0%
Cash and Equivalents
$309M
Previous year: $305M
+1.4%
Total Assets
$3.27B
Previous year: $2.81B
+16.1%

Ensign Group

Ensign Group

Ensign Group Revenue by Segment

Forward Guidance

The Ensign Group raised its annual 2022 earnings guidance to $4.10 to $4.18 per diluted share, up from the previously increased guidance of $4.05 to $4.15 per diluted share, and raised its annual revenue guidance to $3.01 billion to $3.03 billion, up from the previously increased revenue guidance of $2.96 billion to $3.0 billion.

Positive Outlook

  • Improvements in occupancies
  • Improvements in skilled mix
  • Improvements in reimbursement
  • Strong quarter over quarter growth in skilled mix revenue
  • Attractive acquisition environment

Challenges Ahead

  • Potential operational fundamentals improvement in existing operations
  • Potential operational fundamentals improvement in new acquisitions
  • Industry-wide changes leading to more opportunities
  • Risk of reduced prices and reimbursement rates
  • COVID-19 pandemic impact on business and operations