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8-K - FORM 8-K - ENSIGN GROUP, INC | c04739e8vk.htm |
Exhibit 99.1
The Ensign Group Reports Record Quarter; Raises Guidance
Conference Call and Webcast Scheduled for August 10, 2010 at 8:00 am PT
MISSION VIEJO, Calif., Aug 06, 2010 /PRNewswire via COMTEX News Network/ The Ensign Group, Inc.
(Nasdaq: ENSG), the parent company of the Ensign(TM) group of skilled nursing, rehabilitative care
services, home health, hospice care and assisted living companies, today reported record results
for the second quarter of 2010.
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Financial Highlights Include:
| Adjusted earnings were a record $0.46 per diluted share, up 15.0% over the second quarter of 2009; | ||
| Total revenue was a record $157.9 million, up 19.5% on a consolidated basis; | ||
| Same-store skilled mix increased by 284 basis points to 52.9%; | ||
| Same-store skilled revenue increased by 10.4%; | ||
| Consolidated EBITDAR climbed 19.9% to $25.7 million, with consolidated EBITDAR margins of 16.3%; and | ||
| Net income rose 17.5% to $9.6 million for the quarter. |
Operating Results
Ensigns President and Chief Executive Officer Christopher Christensen praised Ensigns operational
leaders and their teams for the outstanding quality standards maintained during the quarter, noting
that financial performance follows clinical excellence. We understand that our patients, our staff
and our business all benefit from one essential thing: high quality care, he said.
He also remarked on progress in the 19 facility acquisitions completed by the Company in 2009 and
2010 to date, noting that all but one are already profitable, and nearly all are running at or
ahead of proforma since acquisition. He also reported that Horizon Home Health and Hospice,
Ensigns Idaho home health and hospice business which was acquired on May 1, is seeing a surge in
census and is also running ahead of proforma.
Mr. Christensen also referenced Ensigns balance sheet and its industry-low adjusted
net-debt-to-EBITDAR ratio of approximately 2.1x. He further noted that the company continues to
generate strong cash flow, with net cash from operations of
$14.9 million through June 30, 2010. Our balance sheet, together with our accumulated operating and turnaround expertise, position us well to continue our pattern of disciplined growth, he added.
$14.9 million through June 30, 2010. Our balance sheet, together with our accumulated operating and turnaround expertise, position us well to continue our pattern of disciplined growth, he added.
Fully diluted GAAP earnings per share were $0.46 for the quarter, compared to $0.39 per share in
the prior year. Excluding
$0.1 million in acquisition expenses and amortization of recently-acquired patient bases, adjusted
net income was $9.7 million or
$0.46 per diluted share for the quarter.
A discussion of the companys use of non-GAAP financial measures is set forth below. A
reconciliation of net income to EBITDAR and EBITDA, as well as a reconciliation of GAAP earnings
per share and net income to adjusted net earnings per share and adjusted net income, appear in the
financial data portion of this release.
More complete information is contained in the Companys 10-Q, which was filed with the SEC today
and can be viewed on the Companys website at http://www.ensigngroup.net.
2010 Guidance Increased
Management increased its 2010 annual guidance, projecting revenues of $628 million to $638 million,
and net income of $1.79 to $1.83 per diluted share for the year. The guidance is based on diluted
weighted average common shares outstanding of
21.4 million and assumes, among other things, no additional acquisitions or dispositions beyond those made to date, and an aggregate 1.0% projected decline in overall reimbursement rates. It also assumes that tax rates do not materially increase, and no negative impact associated with the implementation of RUGs IV and MDS 3.0.
21.4 million and assumes, among other things, no additional acquisitions or dispositions beyond those made to date, and an aggregate 1.0% projected decline in overall reimbursement rates. It also assumes that tax rates do not materially increase, and no negative impact associated with the implementation of RUGs IV and MDS 3.0.
Quarter Highlights
During the quarter, the companys Board of Directors declared a quarterly cash dividend of $0.05
per share of Ensign common stock. Ensign has been a dividend-paying company since 2002.
The company also announced the acquisition of two long-term care facilities and a home health and
hospice business in two separate transactions during the quarter. The real estate and operations
were purchased with cash, and include:
| In Texas, Heritage Gardens Healthcare Center, a 140-bed skilled nursing facility in Carrollton, Texas, and Silver Springs Healthcare Center, a 144-bed skilled nursing facility in Houston, Texas, on May 1, 2010. | ||
| And in Idaho, Horizon Home Health and Hospice, a well-regarded home health and hospice agency based in Meridian, Idaho, also on May 1, 2010. |
The two facility acquisitions brought Ensigns growing portfolio to 81 facilities, 51 of which are
Ensign-owned, with Ensign affiliates holding purchase options on eight of Ensigns 30 leased
facilities. Ensign also owns one home health and two hospice businesses. Management reaffirmed that
Ensign is actively seeking additional opportunities to acquire both well-performing and struggling
long-term care operations across the Western United States.
Conference Call
A live webcast will be held on Tuesday, August 10, 2010, at 8:00 a.m. Pacific Time (11:00 a.m.
Eastern Time) to discuss Ensigns second quarter results. To listen to the webcast, or to view any
financial or statistical information required by SEC Regulation G, please visit the Investors
section of the Ensign website at http://investor.ensigngroup.net. The webcast will be recorded, and
will be available for replay via the website until 5:00 p.m. Pacific Time on Tuesday, August 17,
2010.
About
Ensign(TM)
The Ensign Group, Inc.s independent operating subsidiaries provide a broad spectrum of skilled
nursing and assisted living services, physical, occupational and speech therapies, home health and
hospice services, and other rehabilitative and healthcare services for both long-term residents and
short-stay rehabilitation patients at 81 facilities, two hospice companies and a home health
business in California, Arizona, Texas, Washington, Utah, Idaho and Colorado. Each of these
facilities is operated by a separate, wholly-owned independent operating subsidiary that has its
own management, employees and assets. References herein to the consolidated Company and its
assets and activities, as well as the use of the terms we, us, its and similar verbiage are
not meant to imply that The Ensign Group, Inc. has direct operating assets, employees or revenue,
or that any of the facilities, the hospice business, the Service Center or the captive insurance
subsidiary are operated by the same entity. More information about Ensign is available at
http://www.ensigngroup.net.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains, and the related conference call and webcast will include,
forward-looking statements that are based on managements current expectations, assumptions and
beliefs about its business, financial performance, operating results, the industry in which it
operates and other future events. Forward-looking statements can often be identified by words such
as anticipates, expects, intends, plans, predicts, believes, seeks, estimates,
may, will, should, would, could, potential, continue, ongoing, similar expressions,
and variations or negatives of these words. These forward-looking statements include, but are not
limited to, statements regarding growth prospects, future operating and financial performance. They
are not guarantees of future results and are subject to risks, uncertainties and assumptions that
could cause actual results to materially and adversely differ from those expressed in any
forward-looking statement.
These risks and uncertainties relate to the companys business, its industry and its common stock
and include: reduced prices and reimbursement rates for its services; its ability to acquire,
develop,
manage or improve facilities, its ability to manage its increasing borrowing costs as it incurs
additional indebtedness to fund the acquisition and development of facilities; its ability to
access capital on a cost-effective basis to continue to successfully implement its growth strategy;
its operating margins and profitability could suffer if it is unable to grow and manage effectively
its increasing number of facilities; competition from other companies in the acquisition,
development and operation of facilities; and the application of existing or proposed government
regulations, or the adoption of new laws and regulations, that could limit its business operations,
require it to incur significant expenditures or limit its ability to relocate its facilities if
necessary. Readers should not place undue reliance on any forward-looking statements and are
encouraged to review the companys periodic filings with the Securities and Exchange Commission,
including its Form 10-Q, which was filed today, for a more complete discussion of the risks and
other factors that could affect Ensigns business, prospects and any forward-looking statements.
Except as required by the federal securities laws, Ensign does not undertake any obligation to
publicly update or revise any forward-looking statements, whether as a result of new information,
future events, changing circumstances or any other reason after the date of this press release.
THE ENSIGN GROUP, INC.
GAAP AND ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
GAAP AND ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended | ||||||||||||
June 30, 2010 | ||||||||||||
Non- | ||||||||||||
As | GAAP | As | ||||||||||
Reported | Adj. | Adjusted | ||||||||||
Revenue |
$ | 157,948 | $ | 157,948 | ||||||||
Expense: |
||||||||||||
Cost of services
(exclusive of
facility rent and
depreciation and
amortization shown
separately below) |
125,808 | (37 | )(1) | 125,771 | ||||||||
Facility rentcost of
services |
3,616 | 3,616 | ||||||||||
General and
administrative
expense |
6,407 | 6,407 | ||||||||||
Depreciation and
amortization |
4,023 | (114 | )(2) | 3,909 | ||||||||
Total expenses |
139,854 | (151 | ) | 139,703 | ||||||||
Income from operations |
18,094 | 151 | 18,245 | |||||||||
Other income
(expense): |
||||||||||||
Interest expense |
(2,308 | ) | (2,308 | ) | ||||||||
Interest income |
63 | 63 | ||||||||||
Other expense, net |
(2,245 | ) | (2,245 | ) | ||||||||
Income before
provision for income
taxes |
15,849 | 151 | 16,000 | |||||||||
Provision for income
taxes |
6,230 | 60 | (3) | 6,290 | ||||||||
Net income |
$ | 9,619 | 91 | $ | 9,710 | |||||||
Net income per share: |
||||||||||||
Basic |
$ | 0.46 | $ | 0.47 | ||||||||
Diluted |
$ | 0.46 | $ | 0.46 | ||||||||
Weighted average
common shares
outstanding: |
||||||||||||
Basic |
20,741 | 20,741 | ||||||||||
Diluted |
21,126 | 21,126 | ||||||||||
Six Months Ended | ||||||||||||
June 30, 2010 | ||||||||||||
Non- | ||||||||||||
As | GAAP | As | ||||||||||
Reported | Adj. | Adjusted | ||||||||||
Revenue |
$ | 312,122 | $ | 312,122 | ||||||||
Expense: |
||||||||||||
Cost of services
(exclusive of
facility rent and
depreciation and
amortization shown
separately below) |
248,991 | (89 | )(1) | 248,902 | ||||||||
Facility rentcost of
services |
7,191 | 7,191 | ||||||||||
General and
administrative
expense |
12,181 | 12,181 | ||||||||||
Depreciation and
amortization |
7,978 | (369 | )(2) | 7,609 | ||||||||
Total expenses |
276,341 | (458 | ) | 275,883 | ||||||||
Income from operations |
35,781 | 458 | 36,239 | |||||||||
Other income
(expense): |
||||||||||||
Interest expense |
(4,588 | ) | (4,588 | ) | ||||||||
Interest income |
130 | 130 | ||||||||||
Other expense, net |
(4,458 | ) | (4,458 | ) | ||||||||
Income before
provision for income
taxes |
31,323 | 458 | 31,781 | |||||||||
Provision
for income taxes |
12,356 | 181 | (3) | 12,537 | ||||||||
Net income |
$ | 18,967 | 277 | $ | 19,244 | |||||||
Net income per share: |
||||||||||||
Basic |
$ | 0.92 | $ | 0.93 | ||||||||
Diluted |
$ | 0.90 | $ | 0.91 | ||||||||
Weighted average
common shares
outstanding: |
||||||||||||
Basic |
20,713 | 20,713 | ||||||||||
Diluted |
21,103 | 21,103 | ||||||||||
(1) | Represents acquisition-related costs expenses. | |
(2) | Represents amortization costs related to patient base intangible assets acquired. Patient base intangible assets are amortized over a period of four to eight months, depending on the classification of the patients and the level of occupancy in a new acquisition on the acquisition date. | |
(3) | Represents the tax impact of acquisition costs and patient base non-GAAP adjustments represented in entries (1) and (2). |
THE ENSIGN GROUP, INC.
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDAR
(in thousands)
The table below reconciles net income to EBITDA and EBITDAR for the
periods presented:
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDAR
(in thousands)
The table below reconciles net income to EBITDA and EBITDAR for the
periods presented:
Three Months Ended | ||||||||
June 30, | ||||||||
2010 | 2009 | |||||||
Consolidated Statement of Income Data: |
||||||||
Net income |
$ | 9,619 | $ | 8,184 | ||||
Interest expense, net |
2,245 | 1,072 | ||||||
Provision for income taxes |
6,230 | 5,282 | ||||||
Depreciation and amortization |
4,023 | 3,209 | ||||||
EBITDA |
$ | 22,117 | $ | 17,747 | ||||
Facility rentcost of services |
3,616 | 3,724 | ||||||
EBITDAR |
$ | 25,733 | $ | 21,471 | ||||
Six Months Ended | ||||||||
June 30, | ||||||||
2010 | 2009 | |||||||
Consolidated Statement of Income Data: |
||||||||
Net income |
$ | 18,967 | $ | 16,107 | ||||
Interest expense, net |
4,458 | 2,330 | ||||||
Provision for income taxes |
12,356 | 10,560 | ||||||
Depreciation and amortization |
7,978 | 6,174 | ||||||
EBITDA(1) |
$ | 43,759 | $ | 35,171 | ||||
Facility rentcost of services |
7,191 | 7,425 | ||||||
EBITDAR(1) |
$ | 50,950 | $ | 42,596 | ||||
THE ENSIGN GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS
(In thousands)
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 26,353 | $ | 38,855 | ||||
Accounts receivable |
72,678 | 62,606 | ||||||
Prepaid income taxes |
1,245 | 1,242 | ||||||
Prepaid expenses and other current assets |
6,695 | 6,498 | ||||||
Deferred tax asset-current |
8,868 | 8,126 | ||||||
Total current assets |
115,839 | 117,327 | ||||||
Property and equipment, net |
251,320 | 230,774 | ||||||
Insurance subsidiary deposits and
investments |
15,397 | 13,810 | ||||||
Escrow deposits |
| 7,595 | ||||||
Deferred tax asset |
6,659 | 4,262 | ||||||
Restricted and other assets |
6,036 | 5,650 | ||||||
Intangible assets, net |
4,288 | 4,498 | ||||||
Goodwill |
10,524 | 7,432 | ||||||
Other indefinite-lived intangibles |
672 | | ||||||
Total assets |
$ | 410,735 | $ | 391,348 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 16,267 | $ | 15,498 | ||||
Accrued wages and related liabilities |
27,538 | 28,756 | ||||||
Accrued
self-insurance liabilities-current |
10,500 | 10,074 | ||||||
Other accrued liabilities |
13,442 | 15,375 | ||||||
Current maturities of long-term debt |
2,125 | 2,065 | ||||||
Total current liabilities |
69,872 | 71,768 | ||||||
Long-term debt-less current maturities |
106,363 | 107,401 | ||||||
Accrued self-insurance liabilities-less
current portion |
25,059 | 22,096 | ||||||
Deferred rent and other long-term
liabilities |
2,897 | 2,524 | ||||||
Stockholders equity |
206,544 | 187,559 | ||||||
Total liabilities and
stockholders equity |
$ | 410,735 | $ | 391,348 | ||||
The following table presents selected data from our condensed consolidated
statement of cash flows for the periods presented:
Six Months Ended | ||||||||
June 30, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Net cash provided by operating activities |
$ | 14,903 | $ | 18,700 | ||||
Net cash used in investing activities |
(25,153 | ) | (24,072 | ) | ||||
Net cash used in financing activities |
(2,252 | ) | (2,267 | ) | ||||
Net decrease in cash and cash equivalents |
(12,502 | ) | (7,639 | ) | ||||
Cash and cash equivalents at beginning of
period |
38,855 | 41,326 | ||||||
Cash and cash equivalents at end of period |
$ | 26,353 | $ | 33,687 | ||||
THE ENSIGN GROUP, INC.
SELECT PERFORMANCE INDICATORS
(Dollars in thousands)
The following table summarizes our selected performance indicators,
along with other statistics, for each of the dates or periods
indicated:
SELECT PERFORMANCE INDICATORS
(Dollars in thousands)
The following table summarizes our selected performance indicators,
along with other statistics, for each of the dates or periods
indicated:
Three Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
(Dollars in | ||||||||||||||||
thousands) | Change | % Change | ||||||||||||||
Total Facility |
||||||||||||||||
Results: |
||||||||||||||||
Revenue |
$ | 157,948 | $ | 132,178 | $ | 25,770 | 19.5 | % | ||||||||
Number of facilities
at period end |
81 | 70 | 11 | 15.7 | % | |||||||||||
Actual patient days |
667,858 | 576,738 | 91,120 | 15.8 | % | |||||||||||
Occupancy
percentage
Operational beds |
79.3 | % | 79.4 | % | (0.1 | )% | ||||||||||
Skilled mix by nursing
days |
24.8 | % | 24.3 | % | 0.5 | % | ||||||||||
Skilled mix by nursing
revenue |
48.2 | % | 48.0 | % | 0.2 | % |
Three Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
(Dollars in | ||||||||||||||||
thousands) | Change | % Change | ||||||||||||||
Same Facility |
||||||||||||||||
Results(1): |
||||||||||||||||
Revenue |
$ | 120,899 | $ | 116,296 | $ | 4,603 | 4.0 | % | ||||||||
Number of facilities
at period end |
56 | 56 | | | % | |||||||||||
Actual patient days |
488,508 | 495,981 | (7,473 | ) | (1.5 | )% | ||||||||||
Occupancy percentage
Operational beds |
82.5 | % | 81.6 | % | 0.9 | % | ||||||||||
Skilled mix by
nursing days |
28.6 | % | 25.9 | % | 2.7 | % | ||||||||||
Skilled mix by
nursing revenue |
52.9 | % | 50.1 | % | 2.8 | % |
Three Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||
(Dollars in | ||||||||||||||||
thousands) | ||||||||||||||||
Transitioning Facility
Results(2): |
||||||||||||||||
Revenue |
$ | 8,753 | $ | 7,924 | $ | 829 | 10.5 | % | ||||||||
Number of facilities at
period end |
6 | 6 | | | % | |||||||||||
Actual patient days |
40,901 | 39,249 | 1,652 | 4.2 | % | |||||||||||
Occupancy percentage
Operational beds |
70.6 | % | 67.7 | % | 2.9 | % | ||||||||||
Skilled mix by nursing
days |
18.5 | % | 18.2 | % | 0.3 | % | ||||||||||
Skilled mix by nursing
revenue |
39.7 | % | 41.7 | % | (2.0 | )% |
Three Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||
(Dollars in | ||||||||||||||||
thousands) | ||||||||||||||||
Recently Acquired
Facility Results(3): |
||||||||||||||||
Revenue |
$ | 28,296 | $ | 7,958 | $ | 20,338 | NM | % | ||||||||
Number of facilities at
period end |
19 | 7 | 12 | NM | % | |||||||||||
Actual patient days |
138,449 | 41,508 | 96,941 | NM | % | |||||||||||
Occupancy percentage
Operational beds |
72.2 | % | 68.1 | % | 4.1 | % | ||||||||||
Skilled mix by nursing
days |
13.5 | % | 10.8 | % | 2.7 | % | ||||||||||
Skilled mix by nursing
revenue |
29.5 | % | 23.3 | % | 6.2 | % |
(1) | Same Facility results represent all facilities purchased prior to January 1, 2007. Same Facility results for 2009 include the results of operations through June 30, 2009 of our assisted living facility in Arizona. We decided not to exercise our renewal option on the lease which expired on September 30, 2009. The reduction in the number of actual and available patient days primarily relates to the non-renewal of this lease. | |
(2) | Transitioning Facility results represents all facilities purchased from January 1, 2007 to December 31, 2008. | |
(3) | Recently Acquired Facility (or Acquisitions) results represent all facilities purchased on or subsequent to January 1, 2009. |
THE ENSIGN GROUP, INC.
SELECT PERFORMANCE INDICATORS
(Dollars in thousands)
SELECT PERFORMANCE INDICATORS
(Dollars in thousands)
The following table summarizes our selected performance indicators, along with other
statistics, for each of the dates or periods indicated:
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||
(Dollars in | ||||||||||||||||
thousands) | ||||||||||||||||
Total Facility
Results: |
||||||||||||||||
Revenue |
$ | 312,122 | $ | 262,463 | $ | 49,659 | 18.9 | % | ||||||||
Number of facilities
at period end |
81 | 70 | 9 | 12.9 | % | |||||||||||
Actual patient days |
1,316,942 | 1,143,357 | 173,585 | 15.2 | % | |||||||||||
Occupancy percentage
Operational beds |
79.4 | % | 79.6 | % | (0.2 | )% | ||||||||||
Skilled mix by
nursing days |
25.4 | % | 24.8 | % | 0.6 | % | ||||||||||
Skilled mix by
nursing revenue |
49.0 | % | 48.3 | % | 0.7 | % |
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||
(Dollars in | ||||||||||||||||
thousands) | ||||||||||||||||
Same Facility
Results(1): |
||||||||||||||||
Revenue |
$ | 242,049 | $ | 232,600 | $ | 9,449 | 4.1 | % | ||||||||
Number of
facilities at
period end |
56 | 56 | | | % | |||||||||||
Actual patient
days |
974,009 | 992,838 | (18,829 | ) | (1.9 | )% | ||||||||||
Occupancy
percentage
Operational
beds |
82.6 | % | 82.0 | % | 0.6 | % | ||||||||||
Skilled mix by
nursing days |
29.0 | % | 26.3 | % | 2.7 | % | ||||||||||
Skilled mix by
nursing
revenue |
53.5 | % | 50.2 | % | 3.3 | % |
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||
(Dollars in | ||||||||||||||||
thousands) | ||||||||||||||||
Transitioning Facility
Results(2): |
||||||||||||||||
Revenue |
$ | 16,917 | $ | 16,164 | $ | 753 | 4.7 | % | ||||||||
Number of facilities
at period end |
6 | 6 | | | % | |||||||||||
Actual patient days |
80,878 | 78,041 | 2,837 | 3.6 | % | |||||||||||
Occupancy percentage
Operational beds |
70.2 | % | 67.7 | % | 2.5 | % | ||||||||||
Skilled mix by nursing
days |
18.7 | % | 18.7 | % | | % | ||||||||||
Skilled mix by nursing
revenue |
40.0 | % | 43.2 | % | (3.2 | )% |
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||
(Dollars in | ||||||||||||||||
thousands) | ||||||||||||||||
Recently Acquired
Facility Results(3): |
||||||||||||||||
Revenue |
$ | 53,156 | $ | 13,699 | $ | 39,457 | NM | % | ||||||||
Number of facilities at
period end |
19 | 7 | 12 | NM | % | |||||||||||
Actual patient days |
262,055 | 72,478 | 189,577 | NM | % | |||||||||||
Occupancy percentage
Operational beds |
71.8 | % | 65.9 | % | 5.9 | % | ||||||||||
Skilled mix by nursing
days |
14.2 | % | 9.6 | % | 4.6 | % | ||||||||||
Skilled mix by nursing
revenue |
30.6 | % | 20.8 | % | 9.8 | % |
(1) | Same Facility results represent all facilities purchased prior to January 1, 2007. Same Facility results for 2009 include the results of operations through June 30, 2009 of our assisted living facility in Arizona. We decided not to exercise our renewal option on the lease which expired on September 30, 2009. The reduction in the number of actual and available patient days primarily relates to the non-renewal of this lease. | |
(2) | Transitioning Facility results represents all facilities purchased from January 1, 2007 to December 31, 2008. | |
(3) | Recently Acquired Facility (or Acquisitions) results represent all facilities purchased on or subsequent to January 1, 2009. |
THE ENSIGN GROUP, INC.
SKILLED NURSING AVERAGE DAILY REVENUE RATES AND REVENUE BY PAYOR
SKILLED NURSING AVERAGE DAILY REVENUE RATES AND REVENUE BY PAYOR
The following table reflects the change in the skilled nursing average daily revenue
rates by payor source, excluding therapy and other ancillary services that are not
covered by the daily rate:
Three Months Ended | ||||||||||||
June 30, | ||||||||||||
Same Facility | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Skilled Nursing
Average Daily
Revenue Rates: |
||||||||||||
Medicare |
$ | 551.53 | $ | 552.06 | | % | ||||||
Managed care |
343.52 | 340.15 | 1.0 | % | ||||||||
Other skilled |
543.60 | 620.88 | (12.4 | )% | ||||||||
Total skilled revenue |
469.43 | 470.83 | (0.3 | )% | ||||||||
Medicaid |
163.44 | 160.44 | 1.9 | % | ||||||||
Private and other
payors |
189.80 | 185.21 | 2.5 | % | ||||||||
Total skilled nursing
revenue |
$ | 253.53 | $ | 243.42 | 4.2 | % |
Six Months Ended | ||||||||||||
June 30, | ||||||||||||
Same Facility | ||||||||||||
2010 | 2009 | % Change | ||||||||||
Skilled Nursing Average
Daily Revenue Rates: |
||||||||||||
Medicare |
$ | 553.30 | $ | 543.66 | 1.8 | % | ||||||
Managed care |
341.68 | 334.46 | 2.2 | % | ||||||||
Other skilled |
547.19 | 632.38 | (13.5 | )% | ||||||||
Total skilled revenue |
469.74 | 463.42 | 1.4 | % | ||||||||
Medicaid |
163.86 | 160.95 | 1.8 | % | ||||||||
Private and other payors |
187.63 | 183.81 | 2.1 | % | ||||||||
Total skilled nursing
revenue |
$ | 254.99 | $ | 243.14 | 4.9 | % |
The following table sets forth our total revenue by payor source and as a percentage
of total revenue for the periods indicated:
Three Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
$ | % | $ | % | |||||||||||||
Revenue: |
||||||||||||||||
Medicaid |
$ | 64,002 | 40.5 | % | $ | 53,603 | 40.6 | % | ||||||||
Medicare |
50,589 | 32.1 | 43,156 | 32.7 | ||||||||||||
Medicaid-skilled |
4,624 | 2.9 | 2,705 | 2.0 | ||||||||||||
Total |
119,215 | 75.5 | 99,464 | 75.3 | ||||||||||||
Managed Care |
20,222 | 12.8 | 17,182 | 13.0 | ||||||||||||
Private and
Other |
18,511 | 11.7 | 15,532 | 11.7 | ||||||||||||
Total
revenue |
$ | 157,948 | 100.0 | % | $ | 132,178 | 100.0 | % | ||||||||
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
$ | % | $ | % | |||||||||||||
Revenue: |
||||||||||||||||
Medicaid |
$ | 125,656 | 40.3 | % | $ | 105,839 | 40.3 | % | ||||||||
Medicare |
101,711 | 32.6 | 86,362 | 32.9 | ||||||||||||
Medicaid-skilled |
9,041 | 2.9 | 4,988 | 1.9 | ||||||||||||
Total |
236,408 | 75.8 | 197,189 | 75.1 | ||||||||||||
Managed Care |
40,791 | 13.0 | 34,679 | 13.2 | ||||||||||||
Private and
Other |
34,923 | 11.2 | 30,595 | 11.7 | ||||||||||||
Total
revenue |
$ | 312,122 | 100.0 | % | $ | 262,463 | 100.0 | % | ||||||||
Discussion of Non-GAAP Financial Measures
EBITDA consists of net income before (a) interest expense, net, (b) provisions for income taxes,
and (c) depreciation and amortization. EBITDAR consists of net income before (a) interest expense,
net, (b) provisions for income taxes, (c) depreciation and amortization, and (d) facility rent-cost
of services. The Company believes that the presentation of EBITDA and EBITDAR provides important
supplemental information to management and investors to evaluate the Companys operating
performance. The Company believes disclosure of adjusted non-GAAP net income and non-GAAP
diluted earnings per share has economic substance because the excluded expenses are infrequent in
nature and are variable in nature, or do not represent current cash expenditures. A material
limitation associated with the use of these measures as compared to the GAAP measures of net income
and diluted earnings per share is that they may not be comparable with the calculation of net
income and diluted earnings per share for other companies in the Companys industry. These non-GAAP
financial measures should not be relied
upon to the exclusion of GAAP financial measures. For further information regarding why the Company
believes that this non-GAAP measure provides useful information to investors, the specific manner
in which management uses this measure, and some of the limitations associated with the use of this
measure, please refer to the Companys Report on Form 10-Q filed today with the SEC. The Form 10-Q
is available on the SECs website at www.sec.gov or under the Financial Information link of the
Investor Relations section on Ensigns website at http://www.ensigngroup.net.
SOURCE The Ensign Group, Inc.
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