Ensign: The Ensign Group Reports First Quarter 2025 Results; Raises Annual Earnings and Revenue Guidance

SAN JUAN CAPISTRANO, Calif. , April 29, 2025 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign (TM) group of companies, which provide post-acute healthcare services and invest in the long-term healthcare industry, primarily in skilled nursing and senior living facilities, announced operating results for the first quarter of 2025, reporting GAAP diluted earnings per share of $1.37 and adjusted earnings per share (1) of $1.52 , both for the quarter ended March 31, 2025 . Highlights Include: GAAP diluted earnings per share for the quarter was $1.37 , an increase of 15.1% over the prior year quarter. Adjusted diluted earnings per share (1) for the quarter was $1.52 , an increase of 16.9%, over the prior year quarter. GAAP net income was $80.3 million for the quarter, an increase of 16.6% over the prior year quarter. Adjusted net income (1) was $89.0 million for the quarter, an increase of 18.0%, over the prior year quarter. Same Facilities and Transitioning Facilities occupancy for the quarter increased by 2.9% and 5.0% to 82.6% and 83.5%, respectively, over the prior year quarter and increased sequentially over the fourth quarter by 1.5% and 1.8%, respectively. Same Store and Transitioning Facilities skilled revenue for the quarter increased by 5.6% and 8.8%, respectively, over the prior year quarter. Same Facilities and Transitioning skilled daily census for the quarter increased by 7.6% and 9.9%, respectively, over the prior year quarter and increased sequentially over the fourth quarter by 10.1% and 11.7%, respectively. Same Facilities and Transitioning Facilities managed care days for the quarter improved by 8.9% and 15.6%, respectively, from prior year quarter. Consolidated GAAP and adjusted revenue for the quarter were $1.17 billion , an increase of 16.1% over the prior year quarter. Standard Bearer (2) revenue was $28.4 million for the quarter, an increase of 27.9%. FFO was $17.1 million for the quarter, an increase of 21.1%. (1) See "Reconciliation of GAAP to Non-GAAP Financial Information". (2) Our Skilled Services and Standard Bearer Segments are defined and outlined in Note 8 on Form 10-Q. Operating Results "We are thrilled to announce another record setting quarter achieved by our local teams. In spite of all the industry noise, our results this quarter demonstrate that we've never been stronger, showing yet again that sound fundamentals coupled with incredible passion can forge consistency even in an ever-changing environment. Our operators set several all-time highs during the quarter, which are only made possible by strong clinical outcomes achieved by our dedicated team of our caregivers and front-line staff," said Barry Port , Ensign's Chief Executive Officer. "During the quarter we saw same store and transitioning occupancy increase to 82.6% and 83.5%, which is a new high-water mark for both groups of operations. We also saw skilled daily census increase for both our same store and transitioning operations by 7.6% and 9.9%, respectively, over the prior year quarter. In addition, our managed care census grew by 8.9% and 15.6% for our same store and transitioning operations, respectively, over the prior year quarter. These improvements in occupancy and skilled mix in our mature and maturing operations highlight the enormous upside inherent in our portfolio. At the same time, we continue to acquire new operations with enormous long-term upside. Since 2024, we've added 47 new operations across several markets, many of which are already performing at or above our expectations. We continue to develop a deep bench of talent for future growth and continue to see a steady flow of new deals. We are excited about the trajectory we are on for the year and look forward to capturing the enormous potential inherent in our portfolio," Mr. Port added. "After such a strong first quarter, including some faster-than-expected contribution from some of our newly acquired operations, we are raising our annual 2025 earnings guidance to between $6.22 to $6.38 per diluted share, up from $6.16 to $6.34 per diluted share. The new midpoint of this increased 2025 earnings guidance represents an increase of 14.5% over our 2024 results and is 32.1% higher than our 2023 results. We are also increasing our annual revenue guidance to $4.89 billion to $4.94 billion , up from $4.83 billion to $4.91 billion , to account for our current quarter growth and acquisitions we anticipate closing during the first half of 2025. We are excited about our start to the year and are confident that our partners will continue to manage and innovate while balancing the addition of newly acquired operations. When we consider the current health of our organization, combined with our culture and proven local leadership strategy, we are well-positioned to continue our operational momentum," Port said. Speaking to the Company's growth, Chad Keetch , Ensign's Chief Investment Officer and Executive Vice President said, "We continued our steady pace of growth by adding 19 new operations, including eight real estate assets, that began operating during the quarter and since, bringing the number of operations acquired during 2024 and since to 47. We continue to see significant opportunities to add meaningful density in the markets we know best and are making progress on several additions that we expect to close in the next few months. While we anticipate the current rate of acquisitions to continue this year, we remain committed to staying true to the proven deal criteria that has allowed us to grow in a healthy and sustainable way. We continue to see more and more opportunities to acquire new operations, and our focus is to carefully choose the acquisitions that will be accretive to shareholders in both the near- and long-term." Suzanne Snapper , Ensign's Executive Vice President and Chief Financial Officer reported that the Company's liquidity remains strong with approximately $282.7 million of cash on hand and $572.1 million of available capacity under its line-of-credit. Ms. Snapper also indicated that, "Management's annual guidance is based on diluted weighted average common shares outstanding of approximately 59.5 million and a 25.0% tax rate. In addition, the guidance assumes, among other things, normalized insurance costs and management's current expectations regarding reimbursement rates. It also excludes certain charges that arise outside the normal course of business, acquisition related costs and share-based compensation." A discussion of the Company's use of non-GAAP financial measures is set forth below. A reconciliation of net income to adjusted EBT, EBITDA, adjusted EBITDAR, adjusted EBITDA and FFO for Standard Bearer, as well as a reconciliation of GAAP earnings per share, net income to adjusted net income and adjusted net earnings per share appear in the financial data portion of this release. More complete information is contained in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 , which is expected to be filed with the SEC today and can be viewed on the Company's website at http://www.ensigngroup.net . Growth and Real Estate Highlights Mr. Keetch added additional commentary on the Company's continued acquisition activity. "We were very happy to continue our robust pace of new acquisitions during the quarter and since across eight of our 17 states. We are very excited to add density to one of our newest markets in Tennessee where, after a long period of planning, we were able to establish multiple clusters. We are also excited to grow into Alabama , Oregon and Alaska and look forward to bolstering our presence in those markets over time. In the meantime, we continue to prioritize growth in our established geographies as it allows our clusters to provide a comprehensive solution to the healthcare needs in those markets." The recent acquisitions include the following leased operations: The Health Center at Research Park , a 91-bed skilled nursing facility located in Huntsville, Alabama . Meadowbrook Healthcare and Rehabilitation Center , a 75-bed skilled nursing facility located in Pulaski, Tennessee ; Wellpark Health and Rehabilitation, a 30-bed skilled nursing facility located in Knoxville, Tennessee ; Legacy Park Health and Rehabilitation, a 176-bed skilled nursing facility located in Knoxville, Tennessee ; VanAyer Senior Living and Rehabilitation, a 75-bed skilled nursing facility located in Martin, Tennessee ; Union City Health and Rehabilitation, a 115-bed skilled nursing facility located in Union City, Tennessee ; Alamitos West Health and Rehabilitation, a 142-bed skilled nursing facility located in Los Alamitos, California ; and Katella Senior Living Community , a 68-unit senior living facility located in Los Alamitos, California . Standard Bearer also announced the following real estate acquisitions, which are operated by an Ensign-affiliate: Mt. Angel Health and Rehabilitation, and Mt. Angel Orchard House , a healthcare campus with 98 skilled nursing beds and 50 senior living units located in Mt. Angel, Oregon ; Polaris Extended Care and Polaris Transitional Care, a skilled nursing facility with 146 beds located in Anchorage, Alaska ; Horizon House , a 82-unit senior living facility located in Anchorage, Alaska ; South Hill Rehabilitation and Care Center, a 113 bed skilled nursing facility located in Spokane, Washington ; Citrus Heights Respiratory and Rehabilitation, a 204-bed skilled nursing facility located in Mesa, Arizona ; Springdale Village Post Acute, a 122-bed skilled nursing facility located in Mesa, Arizona ; Mesquite Post Acute Care, a 120-bed skilled nursing facility located in Lubbock, Texas ; and Pacific Haven Subacute and Healthcare Center, a 99-bed skilled nursing facility located in Garden Grove, California . The following three real estate purchases by Standard Bearer took place on December 31, 2024 and an Ensign-affiliated operator took c