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Sep 30, 2023
Ensign Group Q3 2023 Earnings Report
Ensign Group reported a strong Q3 2023 with increased earnings and revenue, driven by occupancy and managed care revenue growth. Increased annual earnings and revenue guidance for 2023.
Key Takeaways
Ensign Group reported a strong third quarter in 2023, with GAAP diluted earnings per share of $1.11 and adjusted earnings per share of $1.20. Consolidated GAAP and adjusted revenues for the quarter were $940.8 million, representing a 22.2% increase over the prior year quarter. The company is raising its annual 2023 earnings guidance to between $4.73 to $4.79 per diluted share and annual revenue guidance to between $3.72 billion and $3.73 billion.
GAAP diluted earnings per share increased by 12.1% and adjusted diluted earnings per share increased by 15.4% over the prior year quarter.
GAAP net income increased by 13.7% and adjusted net income increased by 16.6% over the prior year quarter.
Consolidated GAAP and adjusted revenues increased by 22.2% over the prior year quarter.
Same store occupancy increased by 290 basis points over the prior year quarter.
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 is increasing its annual 2023 earnings guidance to between $4.73 to $4.79 per diluted share and annual revenue guidance to between $3.72 billion and $3.73 billion.
Positive Outlook
- New midpoint of 2023 earnings guidance represents an increase of 15.0% over 2022 results.
- New midpoint of 2023 earnings guidance is 30.8% higher than 2021 results.
- Company sees a steady pipeline of new opportunities.
- Company is beginning to see the effects of higher interest rates on pricing.
- Company expects there will be lots of opportunities that will arise as many operators are struggling.
Challenges Ahead
- Lingering challenges on the labor front.
- Persistent labor market pressures.
- Return of more typical seasonality.
- Guidance assumes normalized health insurance costs.
- Guidance assumes management’s current expectations regarding reimbursement rates and recovery of the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income