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Dec 31, 2022

Ensign Group Q4 2022 Earnings Report

Ensign Group reported record operating results driven by occupancy and skilled revenue growth.

Key Takeaways

Ensign Group reported record fourth-quarter results with GAAP diluted earnings per share of $1.06 and adjusted earnings per share of $1.10. Consolidated GAAP revenues for the year were $3.025 billion. The company issued 2023 earnings guidance of $4.60 to $4.74 per diluted share and revenue guidance of $3.55 billion to $3.62 billion.

GAAP diluted earnings per share for the quarter was $1.06, an increase of 23.3% over the prior year quarter.

Adjusted diluted earnings per share was $1.10, an increase of 13.4% over the prior year quarter.

Total skilled services revenue was $777.6 million for the quarter, an increase of 16.5% over the prior year quarter.

Standard Bearer revenue was $19.4 million for the quarter, an increase of 26.0% from prior year quarter.

Total Revenue
$810M
Previous year: $693M
+16.8%
EPS
$1.1
Previous year: $0.97
+13.4%
Occupancy percentage
76.2%
Previous year: 73.9%
+3.1%
Gross Profit
$135M
Previous year: $122M
+10.3%
Cash and Equivalents
$316M
Previous year: $262M
+20.6%
Total Assets
$3.45B
Previous year: $2.85B
+21.1%

Ensign Group

Ensign Group

Ensign Group Revenue by Segment

Forward Guidance

The company issued annual 2023 earnings guidance of $4.60 to $4.74 per diluted share and annual revenue guidance of $3.55 billion to $3.62 billion. The midpoint of this 2023 earnings guidance represents an increase of 12.8% over our 2022 results and is 28.3% higher than our 2021 results.

Positive Outlook

  • Earnings guidance of $4.60 to $4.74 per diluted share for 2023.
  • Revenue guidance of $3.55 billion to $3.62 billion for 2023.
  • Midpoint of earnings guidance represents an increase of 12.8% over 2022 results.
  • Midpoint of earnings guidance is 28.3% higher than 2021 results.
  • Liquidity remains strong with approximately $316.3 million of cash on hand and $593.3 million of available capacity under its line-of-credit.

Challenges Ahead

  • Guidance assumes normalized health insurance costs.
  • Guidance assumes current expectations regarding reimbursement rates and recovery of the COVID-19 pandemic.
  • Guidance excludes one-time charges.
  • Guidance excludes acquisition-related costs.
  • Guidance excludes amortization costs related to intangible assets acquired and share-based compensation.