News Release Details
The Ensign Group Reports Adjusted Annual Earnings of $2.18 per Share; Reaffirms 2015 Guidance
Quarter and Fiscal Year Highlights Include:
-
Adjusted annual earnings per share was
$2.18 , at the midpoint of Management's annual guidance of between$2.16 and$2.21 per share;
-
Consolidated revenues were up 16.8% over the prior year quarter to a record
$276.9 million in the quarter;
-
Adjusted consolidated EBITDAR was
$44.0 million , an increase of 8.5% over the prior year quarter;
-
Transitioning skilled mix days grew by 118 basis points over the prior year quarter to 19.8% for the quarter and transitioning occupancy was 71.8%, an increase of 121 basis points over the prior year quarter;
-
Same-store skilled mix days grew by 179 basis points over the prior year quarter to 29.3% for the quarter and same-store occupancy was 82.3%, an increase of 137 basis points over the prior year quarter; and
-
Cornerstone Healthcare, Inc. , our home health and hospice subsidiary, grew its Adjusted EBITDA by 97.8% over the prior year to$10.2 million .
Operating Results
"We are proud to report that we saw improvements across our same store, transitioning and newly acquired buckets, all during a historic year in which we completed a significant spin-off of CareTrust REIT, Inc. and experienced one of our most active acquisition years ever," said Ensign's President and Chief Executive Officer
"We are also pleased to report that operating results met annual earnings guidance, with adjusted earnings per share of
In the fourth quarter of 2014, Ensign realigned its operating segments to include a transitional, skilled and assisted living segment, a home health, home care and hospice segment, and an "all other" segment. Mr. Christensen indicated that "we are anxious to share more detail on the performance of these expanding operations and believe that this additional disclosure will demonstrate the expanding influence these service offerings will have on our entire organization."
Chief Financial Officer
A discussion of the company's 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 company's Annual Report on Form 10-K for the year ended
2015 Guidance Reaffirmed
Management also reaffirmed its 2015 annual guidance, projecting revenues of
Quarter Highlights
During the quarter, the company's Board of Directors declared a quarterly cash dividend of
Also during the quarter and since, the company announced the acquisition of thirteen skilled nursing operations, four assisted living operations, two independent living operations, two home health agencies, two hospice agencies, one private home care business and two urgent care businesses, including:
-
In
San Diego, California , nine skilled nursing and assisted living operations, a home health agency and a private home care business from Shea Family Care, the largest provider of a complete continuum of post-acute healthcare services in theSan Diego market.
-
Also in
San Diego, California ,Guardian Angel Hospice , aMedicare andMedi-Cal certified hospice agency.
-
In
Scottsdale, Arizona ,Alarys Home Health , aMedicare andMedicaid certified home health agency.
-
In
Pueblo, Colorado , Riverwalk Post-Acute and Rehabilitation, a 60-bed skilled nursing operation,Rock Canyon Respiratory and Rehabilitation Center , an 81-bed skilled nursing operation with a subacute unit, and the Villas atRock Canyon , a 17-bed independent living and assisted living operation.
-
In
Lubbock, Texas ,Mildred and Shirley L. Garrison Geriatric Education and Care Center, a 103-bed skilled nursing operation.
-
Also in
Lubbock, Texas ,Hospice of the South Plains , a hospice agency serving patients throughout the South Plains area ofNorthwest Texas .
-
In
Colorado Springs, Colorado , Integrity Urgent Care, consisting of two urgent care clinics and our first acquisition of an urgent care clinic in the state ofColorado .
-
In
Abilene, Texas ,Mesa Springs Healthcare , a 44-acre post-acute care campus comprised of a 75-bed skilled nursing operation and 60 independent living homes.
-
In
Omaha , Nebraska, Skyline Nursing and Rehabilitation, a 100-bed skilled nursing operation, and Skyline Assisted and Independent Living, an independent living, assisted living, and seniors apartment operation with 209 units.
These acquisitions brought Ensign's growing portfolio to 143 facilities, eighteen of which are owned, eleven hospice agencies, thirteen home health agencies, two home care businesses and sixteen urgent care clinics spread over twelve states. Management reaffirmed that Ensign is actively seeking additional opportunities to acquire real estate or to lease both well-performing and struggling skilled nursing, assisted living and other healthcare related businesses across
Conference Call
A live webcast will be held today,
About Ensign™
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 management's 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, and acquisition activities. 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 company's 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 company's periodic filings with the
|
||||||||||||||||
GAAP and ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||
As Reported | Non-GAAP Adj. | As Adjusted | As Reported | Non-GAAP Adj. | As Adjusted | |||||||||||
Revenue | $ 276,869 | $ (4,409) | (4)(5) | $ 272,460 | $ 1,027,406 | $ (14,505) | (4)(5) | $ 1,012,901 | ||||||||
Expense: | ||||||||||||||||
Cost of services (exclusive of facility rent, general and administrative and depreciation and amortization expense shown separately below) | 221,137 | (5,060) | (1)(4)(5) | 216,077 | 822,669 | (16,966) | (1)(4)(5) | 805,703 | ||||||||
Facility rent—cost of services | 18,480 | (402) | (6) | 18,078 | 48,488 | (1,941) | (6) | 46,547 | ||||||||
General and administrative expense | 12,525 | (200) | (2)(3)(4) | 12,325 | 56,895 | (9,234) | (2)(3)(4) | 47,661 | ||||||||
Depreciation and amortization | 5,087 | (371) | (7) | 4,716 | 26,430 | (1,265) | (7) | 25,165 | ||||||||
Total expenses | 257,229 | (6,033) | 251,196 | 954,482 | (29,406) | 925,076 | ||||||||||
Income from operations | 19,640 | 1,624 | 21,264 | 72,924 | 14,901 | 87,825 | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (486) | 46 | (440) | (12,976) | 6,517 | (6,459) | ||||||||||
Interest income | 159 | — | 159 | 594 | — | 594 | ||||||||||
Other expense, net | (327) | 46 | (281) | (12,382) | 6,517 | (5,865) | ||||||||||
Income before provision for income taxes | 19,313 | 1,670 | 20,983 | 60,542 | 21,418 | 81,960 | ||||||||||
Tax Effect on Non-GAAP Adjustments | 643 | (8) | 8,246 | (8) | ||||||||||||
Tax True-up for Effective Tax Rate | (1,082) | (9) | (3,492) | (9) | ||||||||||||
Provision for income taxes | 8,517 | (439) | 8,078 | 26,801 | 4,754 | 31,555 | ||||||||||
Net income | 10,796 | 2,109 | 12,905 | 33,741 | 16,664 | 50,405 | ||||||||||
Less: net (loss) income attributable to noncontrolling interests | (715) | 807 | 92 | (2,209) | 2,370 | 161 | ||||||||||
Net income attributable to |
$ 11,511 | 1,302 | $ 12,813 | $ 35,950 | 14,294 | $ 50,244 | ||||||||||
Attributable to |
||||||||||||||||
Net income attributable to |
11,511 | 1,302 | 12,813 | 35,950 | 14,294 | 50,244 | ||||||||||
Loss from discontinued operations, net of income tax benefit | — | — | — | — | — | — | ||||||||||
Income from continuing operations attributable to |
$ 11,511 | $ 1,302 | $ 12,813 | $ 35,950 | $ 14,294 | $ 50,244 | ||||||||||
Net income per share: | ||||||||||||||||
Basic: | ||||||||||||||||
Net income attributable to |
$ 0.51 | $ 0.57 | $ 1.61 | $ 2.25 | ||||||||||||
Loss from discontinued operations, net of income tax benefit | — | — | — | — | ||||||||||||
Income from continuing operations attributable to |
$ 0.51 | $ 0.57 | $ 1.61 | $ 2.25 | ||||||||||||
Diluted: | ||||||||||||||||
Net income attributable to |
$ 0.49 | $ 0.55 | $ 1.56 | $ 2.18 | ||||||||||||
Loss from discontinued operations, net of income tax benefit | — | — | — | — | ||||||||||||
Income from continuing operations attributable to |
$ 0.49 | $ 0.55 | $ 1.56 | $ 2.18 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 22,519 | 22,519 | 22,341 | 22,341 | ||||||||||||
Diluted | 23,378 | 23,378 | 23,095 | 23,095 | ||||||||||||
(1) Represents acquisition-related costs of |
||||||||||||||||
(2) Represents costs of |
||||||||||||||||
(3) Represents costs of |
||||||||||||||||
(4) Represents revenues and expenses incurred at the three independent living operations transferred to CTRE on |
||||||||||||||||
(5) Represents revenues and expenses incurred at newly opened urgent care centers, excluding rent expense recognized in note (6) below and depreciation expense recognized in note (7) below. | ||||||||||||||||
(6) Represents straight-line rent amortization for newly opened urgent care centers and the three independent living operations transferred to CTRE included in Note (4). | ||||||||||||||||
(7) Represents depreciation expense at newly opened urgent care centers and amortization costs related to patient base intangible assets at skilled nursing and assisted living facilities. | ||||||||||||||||
(8) Represents the tax impact of non-GAAP adjustments noted in (1) - (7) at the Company's year to date effective tax rate of 38.5% for the three months and year ended |
||||||||||||||||
(9) Represents an adjustment to the provision for income taxes to our current year to date effective rate to 38.5% for the three months and year ended |
|
||||||||||||||||
GAAP and ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Including Adjustments for Discontinued Operations | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||
As Reported | Non-GAAP Adj. | As Adjusted | As Reported | Non-GAAP Adj. | As Adjusted | |||||||||||
Revenue | $ 237,008 | (1,524) | (9)(10) | $ 235,484 | $ 904,556 | (5,688) | (9)(10) | $ 898,868 | ||||||||
Expense: | ||||||||||||||||
Cost of services (exclusive of facility rent, general and administrative and depreciation and amortization expense shown separately below) | 187,843 | (2,478) | (1)(2)(9)(10) | 185,365 | 725,989 | (11,235) | (1)(2)(9)(10) | 714,754 | ||||||||
Charges related to |
— | — | — | 33,000 | (33,000) | (4) | — | |||||||||
Facility rent—cost of services | 3,557 | (321) | (5)(6) | 3,236 | 13,613 | (1,009) | (5)(6) | 12,604 | ||||||||
General and administrative expense | 11,782 | (2,180) | (3)(7)(8) | 9,602 | 40,103 | (5,148) | (3)(7)(8) | 34,955 | ||||||||
Depreciation and amortization | 8,711 | (210) | (11)(12) | 8,501 | 33,909 | (1,386) | (11)(12) | 32,523 | ||||||||
Total expenses | 211,893 | (5,189) | 206,704 | 846,614 | (51,778) | 794,836 | ||||||||||
Income from operations | 25,115 | 3,665 | 28,780 | 57,942 | 46,090 | 104,032 | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (3,346) | (3,346) | (12,787) | (12,787) | ||||||||||||
Interest income | 143 | 143 | 506 | 506 | ||||||||||||
Other expense, net | (3,203) | (3,203) | (12,281) | (12,281) | ||||||||||||
Income before provision for income taxes | 21,912 | 3,665 | 25,577 | 45,661 | 46,090 | 91,751 | ||||||||||
Tax Effect on Non-GAAP Adjustments | 1,411 | (13) | 17,745 | (13) | ||||||||||||
Tax True-up for Effective Tax Rate | (127) | (14) | (2,422) | (14) | ||||||||||||
Provision for income taxes | 8,563 | 1,284 | 9,847 | 20,003 | 15,323 | 35,326 | ||||||||||
Income from continuing operations | 13,349 | 2,381 | 15,730 | 25,658 | 30,767 | 56,425 | ||||||||||
Loss from discontinued operations, net of income tax benefit | — | — | (1,804) | (1,804) | ||||||||||||
Net income (loss) | 13,349 | 2,381 | 15,730 | 23,854 | 30,767 | 54,621 | ||||||||||
Less: net income (loss) attributable to noncontrolling interests | (7) | (7) | (186) | (186) | ||||||||||||
Net income attributable to |
$ 13,356 | 2,381 | $ 15,737 | $ 24,040 | 30,767 | $ 54,807 | ||||||||||
Attributable to |
||||||||||||||||
Net income attributable to |
13,356 | 2,381 | 15,737 | 24,040 | 30,767 | 54,807 | ||||||||||
Loss from discontinued operations, net of income tax benefit | — | — | (1,804) | (1,804) | ||||||||||||
Income from continuing operations attributable to |
$ 13,356 | 2,381 | $ 15,737 | $ 25,844 | 30,767 | $ 56,611 | ||||||||||
Net (loss) income per share | ||||||||||||||||
Basic: | ||||||||||||||||
Net income attributable to |
0.61 | 0.71 | 1.10 | 2.50 | ||||||||||||
Loss from discontinued operations, net of income tax benefit | — | — | (0.08) | (0.08) | ||||||||||||
Income from continuing operations attributable to |
$ 0.61 | $ 0.71 | $ 1.18 | $ 2.58 | ||||||||||||
Diluted: | ||||||||||||||||
Net income attributable to |
0.59 | 0.70 | 1.07 | 2.45 | ||||||||||||
Loss from discontinued operations, net of income tax benefit | — | — | (0.08) | (0.08) | ||||||||||||
Income from continuing operations attributable to |
$ 0.59 | $ 0.70 | $ 1.16 | $ 2.53 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 22,028 | 22,028 | 21,900 | 21,900 | ||||||||||||
Diluted | 22,507 | 22,507 | 22,364 | 22,364 | ||||||||||||
(1) Represents acquisition-related costs of |
||||||||||||||||
(2) Represents costs of |
||||||||||||||||
(3) Represents additional costs incurred related to a class action lawsuit settlement of |
||||||||||||||||
(4) Charges related to our efforts to achieve a global, company-wide, resolution of any claims connected to the |
||||||||||||||||
(5) Represents straight-line rent amortization for the first six months of 2013 for one newly constructed facility which began operations during the first quarter of 2013. This facility began operating at full capacity during the third quarter and therefore, third and fourth quarter results were not included in the three or year ended periods above. | ||||||||||||||||
(6) Represents straight-line rent amortization for newly opened urgent care centers. | ||||||||||||||||
(7) Represents legal costs incurred in connection with the ongoing investigation into the billing and reimbursement processes of some of our subsidiaries being conducted by the DOJ. | ||||||||||||||||
(8) Represents expenses incurred in connection with the Company's proposed spin-off of its real estate assets to a newly formed publicly traded real estate investment trust (REIT). | ||||||||||||||||
(9) Represents revenues and expenses incurred at newly opened urgent care centers, less rent expense recognized in note (6) above and depreciation expense recognized in note (11) below. | ||||||||||||||||
(10) Represents revenues and expenses incurred for the first six months of 2013 at one newly constructed facility which began operations during the first quarter of 2013, less rent expense recognized in note (5) above and depreciation expense recognized in Note (12) below. This facility began operating at full capacity during the third quarter and therefore, third and fourth quarter results were not included in the three or year ended periods above. | ||||||||||||||||
(11) Represents depreciation expense at newly opened urgent care centers and amortization costs related to patient base intangible assets at skilled nursing and assisted living facilities 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. | ||||||||||||||||
(12) Represents depreciation expense for the first six months of 2013 at one newly constructed facility which began operations in the first quarter of 2013. This facility began operating at full capacity during the third quarter and therefore, third and fourth quarter results were not included in the three or year end periods above. | ||||||||||||||||
(13) Represents the tax impact of non-GAAP adjustments noted in (1) - (12) at the Company's year to date effective tax rate of 38.5% for the three and year ended |
||||||||||||||||
(14) Represents an adjustment to the provision for income taxes to our current year to date effective rate to 40.9% and 37.9% for the three and year ended |
|
||||
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR | ||||
(in thousands) | ||||
(Unaudited) | ||||
The table below reconciles net income to EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR for the periods presented: | ||||
Three Months Ended |
Year Ended |
|||
2014 | 2013 | 2014 | 2013 | |
Consolidated Statements of Income Data: | ||||
Net income | $ 10,796 | $ 13,349 | $ 33,741 | $ 23,854 |
Less: net loss attributable to noncontrolling interests | (715) | (7) | (2,209) | (186) |
Loss from discontinued operations | — | — | — | 1,804 |
Interest expense, net | 327 | 3,203 | 12,382 | 12,281 |
Provision for income taxes | 8,517 | 8,563 | 26,801 | 20,003 |
Depreciation and amortization | 5,087 | 8,711 | 26,430 | 33,909 |
EBITDA | $ 25,442 | $ 33,833 | $ 101,563 | $ 92,037 |
Facility rent—cost of services | 18,480 | 3,557 | 48,488 | 13,613 |
EBITDAR | $ 43,922 | $ 37,390 | $ 150,051 | $ 105,650 |
EBITDA | $ 25,442 | $ 33,833 | $ 101,563 | $ 92,037 |
Adjustments to EBITDA: | ||||
Charge related to the |
— | — | — | 33,000 |
Expenses related to the Spin-Off(b) | 155 | 2,192 | 9,026 | 4,050 |
Legal costs(c) | — | (13) | — | 1,098 |
Settlement of class action lawsuit(d) | — | — | — | 1,524 |
Impairment of goodwill and other indefinite-lived intangibles(e) | — | 490 | 490 | |
Urgent care center (earnings) losses(f) | (609) | 406 | (389) | 1,844 |
Earnings at three operations transferred to REIT(g) | — | — | (122) | — |
Loss at skilled nursing facility not at full operation(h) | — | — | — | 1,256 |
Acquisition related costs(i) | 453 | 10 | 672 | 288 |
Costs incurred to recognize income tax credits(j) | 45 | 42 | 138 | 145 |
Rent related to items (f), (g) and (h) above (k) | 402 | 322 | 1,941 | 1,009 |
Adjusted EBITDA | $ 25,888 | $ 37,282 | $ 112,829 | $ 136,741 |
Facility rent—cost of services | 18,480 | 3,557 | 48,488 | 13,613 |
Less: related to items (f), (g) and (h) above (k) | (402) | (322) | (1,941) | (1,009) |
Adjusted EBITDAR | $ 43,966 | $ 40,517 | $ 159,376 | $ 149,345 |
(a) Charges related to our resolution of any claims connected to the DOJ settlement. | ||||
(b) Expenses incurred in connection with the Spin-Off. | ||||
(c) Legal costs incurred in connection with the settlement of the investigation into the billing and reimbursement processes of some of our subsidiaries conducted by the DOJ. | ||||
(d) Settlement of a class action lawsuit regarding minimum staffing requirements in the |
||||
(e) Impairment charges to goodwill for a skilled nursing facility in |
||||
(f) Operating results at newly opened urgent care centers. This amount excluded rent, depreciation, interest and income taxes. The results also excluded the net loss attributable to the variable interest entity associated with our urgent care business of approximately |
||||
(g) Results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off, excluding rent, depreciation, interest and income taxes. | ||||
(h) Losses incurred through the second quarter of 2013 at one newly constructed skilled nursing facility which began operations during the first quarter of 2013, excluding rent, depreciation, interest and income taxes. | ||||
(i) Costs incurred to acquire an operation which are not capitalizable. | ||||
(j) Costs incurred to recognize income tax credits which contributed to a decrease in effective tax rate. | ||||
(k) Rent related to newly opened urgent care centers, one newly constructed skilled nursing facility which began operations during the first quarter of 2013, and the three independent living facilities which were transferred to CareTrust as part of the Spin-Off, not included in items (f), (g) and (h) above. |
|
||||||||
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
The table below reconciles net income to EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR for each reportable segment for the periods presented: | ||||||||
Year Ended |
Year Ended |
|||||||
2014 | 2013 | 2014 | 2013 | |||||
TSA Services |
|
|||||||
Statements of Income Data: | ||||||||
Income from operations | $ 126,011 | $ 97,777 | $ 9,701 | $ 4,776 | ||||
Depreciation and amortization | 21,669 | 30,595 | 539 | 400 | ||||
EBITDA | $ 147,680 | $ 128,372 | $ 10,240 | $ 5,176 | ||||
Facility rent—cost of services | 45,955 | 11,931 | 779 | 777 | ||||
EBITDAR | $ 193,635 | $ 140,303 | $ 11,019 | $ 5,953 | ||||
EBITDA | $ 147,680 | $ 128,372 | $ 10,240 | $ 5,176 | ||||
Adjustments to EBITDA: | ||||||||
Charge related to the |
— | 33,000 | — | — | ||||
Impairment of goodwill and other indefinite-lived intangibles(b) | — | 490 | — | — | ||||
Settlement of class action lawsuit(c) | 1,524 | |||||||
Earnings at three operations transferred to REIT(d) | (122) | — | — | — | ||||
Loss at skilled nursing facility not at full operation(e) | — | 1,256 | — | — | ||||
Acquisition related costs(f) | 672 | 288 | — | — | ||||
Rent related to items (d) and (e) above (g) | 406 | 158 | — | — | ||||
Adjusted EBITDA | $ 148,636 | $ 165,088 | $ 10,240 | $ 5,176 | ||||
Facility rent—cost of services | 45,955 | 11,931 | 779 | 777 | ||||
Less: related related to items (d) and (e) above (g) | (406) | (158) | — | — | ||||
Adjusted EBITDAR | $ 194,185 | $ 176,861 | $ 11,019 | $ 5,953 | ||||
(a) Charges related to our resolution of any claims connected to the DOJ settlement. | ||||||||
(b) Impairment charges to goodwill for a skilled nursing facility in |
||||||||
(c) Settlement of a class action lawsuit regarding minimum staffing requirements in the |
||||||||
(d) Results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off, excluding rent, depreciation, interest and income taxes. | ||||||||
(e) Losses incurred through the second quarter of 2013 at one newly constructed skilled nursing facility which began operations during the first quarter of 2013, excluding rent, depreciation, interest and income taxes. | ||||||||
(f) Costs incurred to acquire an operation which are not capitalizable. | ||||||||
(g) Rent related to the three independent living facilities which were transferred to CareTrust as part of the Spin-Off and one newly constructed skilled nursing facility which began operations during the first quarter of 2013, not included in items (d) above. |
|
||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(In thousands) | ||
Year Ended |
||
2014 | 2013 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 50,408 | $ 65,755 |
Restricted cash — current | 5,082 | — |
Accounts receivable — less allowance for doubtful accounts of |
130,051 | 111,370 |
Investments — current | 6,060 | 5,511 |
Prepaid income taxes | 2,992 | 9,915 |
Prepaid expenses and other current assets | 8,434 | 9,213 |
Deferred tax asset — current | 10,615 | 9,232 |
Total current assets | 213,642 | 210,996 |
Property and equipment, net | 149,708 | 479,770 |
Insurance subsidiary deposits and investments | 17,873 | 16,888 |
Escrow deposits | 16,153 | 1,000 |
Deferred tax asset | 11,509 | 4,464 |
Restricted and other assets | 6,833 | 9,804 |
Intangible assets, net | 35,568 | 5,718 |
Goodwill | 30,269 | 23,935 |
Other indefinite-lived intangibles | 12,361 | 7,740 |
Total assets | $ 493,916 | $ 760,315 |
Liabilities and equity | ||
Current liabilities: | ||
Accounts payable | 33,186 | 23,793 |
Accrued wages and related liabilities | 56,712 | 40,093 |
Accrued self-insurance liabilities — current | 15,794 | 15,461 |
Other accrued liabilities | 24,630 | 25,698 |
Current maturities of long-term debt | 111 | 7,411 |
Total current liabilities | 130,433 | 112,456 |
Long-term debt — less current maturities | 68,279 | 251,895 |
Accrued self-insurance liabilities — less current portion | 34,166 | 33,642 |
Fair value of interest rate swap | — | 1,828 |
Deferred rent and other long-term liabilities | 3,235 | 3,237 |
Total equity | 257,803 | 357,257 |
Total liabilities and equity | $ 493,916 | $ 760,315 |
|
||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(In thousands) | ||
The following table presents selected data from our consolidated statements of cash flows for the periods presented: | ||
Year Ended |
||
2014 | 2013 | |
Net cash provided by operating activities | $ 84,880 | $ 37,424 |
Net cash used in investing activities | (172,851) | (65,235) |
Net cash provided by financing activities | 72,624 | 52,881 |
Net (decrease) increase in cash and cash equivalents | (15,347) | 25,070 |
Cash and cash equivalents at beginning of period | 65,755 | 40,685 |
Cash and cash equivalents at end of period | $ 50,408 | $ 65,755 |
|
||||
REVENUE BY SEGMENTS | ||||
The following table sets forth our total revenue by segments and as a percentage of total revenue for the periods indicated: | ||||
Three Months Ended |
||||
2014 | 2013 | |||
Revenue Dollars |
Revenue Percentage |
Revenue Dollars |
Revenue Percentage |
|
Transitional, skilled and assisted living services: | ||||
Skilled nursing facilities | $ 240,654 | 86.9% | $ 211,359 | 89.8% |
Assisted and independent living facilities | 13,134 | 4.8 | 11,352 | 4.5 |
Total transitional, skilled and assisted living services | $ 253,788 | 92.5 | $ 222,711 | 94.3 |
Home health and hospice services: | ||||
Home health | $ 8,639 | 2.9 | $ 6,328 | 2.4 |
Hospice | 7,442 | 2.4 | 4,697 | 2.0 |
Total home health and hospice services | $ 16,081 | 5.3 | $ 11,025 | 4.4 |
All other (1) | 7,000 | 2.2 | 3,272 | 1.3 |
Total revenue | $ 276,869 | 100.0% | $ 237,008 | 100.0% |
(1) Includes revenue from services provided at our urgent care clinics and a mobile x-ray and diagnostic company. | ||||
Years Ended |
||||
2014 | 2013 | |||
Revenue Dollars |
Revenue Percentage |
Revenue Dollars |
Revenue Percentage |
|
Transitional, skilled and assisted living services: | ||||
Skilled nursing facilities | $ 901,470 | 87.7% | $ 812,348 | 89.8% |
Assisted and independent living facilities | 48,848 | 4.8 | 40,931 | 4.5 |
Total transitional, skilled and assisted living services | $ 950,318 | 92.5 | $ 853,279 | 94.3 |
Home health and hospice services: | ||||
Home health | $ 29,577 | 2.9 | $ 21,978 | 2.4 |
Hospice | 24,939 | 2.4 | 17,784 | 2.0 |
Total home health and hospice services | $ 54,516 | 5.3 | $ 39,762 | 4.4 |
All other (1) | 22,572 | 2.2 | 11,515 | 1.3 |
Total revenue | $ 1,027,406 | 100.0% | $ 904,556 | 100.0% |
(1) Includes revenue from services provided at our urgent care clinics and a mobile x-ray and diagnostic company. |
|
||||||||
SELECT PERFORMANCE INDICATORS | ||||||||
(Unaudited) | ||||||||
The following tables summarize our selected performance indicators for our TSA services segment along with other statistics, for each of the dates or periods indicated: | ||||||||
Three Months Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Total Facility Results: | ||||||||
Skilled nursing revenue | $ 240,654 | $ 211,359 | $ 29,295 | 13.9% | ||||
Assisted and independent living revenue | 13,134 | 11,352 | 1,782 | 15.7% | ||||
Total transitional, skilled and assisted living revenue | $ 253,788 | $ 222,711 | $ 31,077 | 14.0% | ||||
Number of facilities at period end | 136 | 119 | 17 | 14.3% | ||||
Actual patient days | 1,026,493 | 947,138 | 79,355 | 8.4% | ||||
Occupancy percentage — Operational beds | 78.2% | 78.0% | 0.2% | |||||
Skilled mix by nursing days | 27.8% | 26.0% | 1.8% | |||||
Skilled mix by nursing revenue | 50.4% | 49.1% | 1.3% | |||||
Three Months Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Same Facility Results(1): | ||||||||
Skilled nursing revenue | $ 186,686 | $ 176,987 | $ 9,699 | 5.5% | ||||
Assisted and independent living revenue | 4,386 | 4,305 | 81 | 1.9% | ||||
Total transitional, skilled and assisted living revenue | $ 191,072 | $ 181,292 | $ 9,780 | 5.4% | ||||
Number of facilities at period end | 82 | 82 | — | —% | ||||
Actual patient days | 717,403 | 706,457 | 10,946 | 1.5% | ||||
Occupancy percentage — Operational beds | 82.3% | 80.9% | 1.4% | |||||
Skilled mix by nursing days | 29.3% | 27.5% | 1.8% | |||||
Skilled mix by nursing revenue | 51.9% | 50.4% | 1.5% | |||||
Three Months Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Transitioning Facility Results(2): | ||||||||
Skilled nursing revenue | $ 25,497 | $ 23,976 | $ 1,521 | 6.3% | ||||
Assisted and independent living revenue | 4,625 | 4,405 | 220 | 5.0% | ||||
Total transitional, skilled and assisted living revenue | $ 30,122 | $ 28,381 | $ 1,741 | 6.1% | ||||
Number of facilities at period end | 25 | 25 | — | —% | ||||
Actual patient days | 160,931 | 158,212 | 2,719 | 1.7% | ||||
Occupancy percentage — Operational beds | 71.8% | 70.5% | 1.2% | |||||
Skilled mix by nursing days | 19.8% | 18.6% | 1.2% | |||||
Skilled mix by nursing revenue | 41.6% | 40.5% | 1.1% | |||||
Three Months Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Recently Acquired Facility Results(3): | ||||||||
Skilled nursing revenue | $ 28,471 | $ 10,396 | $ 18,075 | 173.9% | ||||
Assisted and independent living revenue | 4,123 | 1,815 | 2,308 | 127.2% | ||||
Total transitional, skilled and assisted living revenue | $ 32,594 | $ 12,211 | $ 20,383 | 166.9% | ||||
Number of facilities at period end | 29 | 11 | 18 | NM | ||||
Actual patient days | 148,159 | 64,651 | 83,508 | NM | ||||
Occupancy percentage — Operational beds | 68.3% | 69.2% | NM | |||||
Skilled mix by nursing days | 26.6% | 21.6% | NM | |||||
Skilled mix by nursing revenue | 48.5% | 47.1% | NM | |||||
Three Months Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Transferred to CareTrust(4): | ||||||||
Skilled nursing revenue | $ — | $ — | $ — | NM | ||||
Assisted and independent living revenue | — | 827 | (827) | NM | ||||
Total transitional, skilled and assisted living revenue | $ -- | $ 827 | $ (827) | NM | ||||
Actual patient days | — | 17,818 | NM | |||||
Occupancy percentage — Operational beds | — | 73.4% | NM | |||||
_______________________ | ||||||||
(1) Same Facility results represent all facilities purchased prior to |
||||||||
(2) Transitioning Facility results represents all facilities purchased from |
||||||||
(3) Recently Acquired Facility (or "Acquisitions") results represent all facilities purchased on or subsequent to |
||||||||
(4) Transferred to CareTrust results represent the results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off on |
||||||||
Year Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Total Facility Results: | ||||||||
Skilled nursing revenue | $ 901,470 | $ 812,348 | $ 89,122 | 11.0% | ||||
Assisted and independent living revenue | 48,848 | 40,931 | 7,917 | 19.3% | ||||
Total transitional, skilled and assisted living revenue | $ 950,318 | $ 853,279 | $ 97,039 | 11.4% | ||||
Number of facilities at period end | 136 | 119 | 17 | 14.3% | ||||
Actual patient days | 3,921,758 | 3,648,651 | 273,107 | 7.5% | ||||
Occupancy percentage — Operational beds | 78.0% | 77.5% | 0.5% | |||||
Skilled mix by nursing days | 27.6% | 26.4% | 1.2% | |||||
Skilled mix by nursing revenue | 50.8% | 50.0% | 0.8% | |||||
Year Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Same Facility Results(1): | ||||||||
Skilled nursing revenue | $ 724,422 | $ 688,184 | $ 36,238 | 5.3% | ||||
Assisted and independent living revenue | 17,456 | 16,493 | 963 | 5.8% | ||||
Total transitional, skilled and assisted living revenue | $ 741,878 | $ 704,677 | $ 37,201 | 5.3% | ||||
Number of facilities at period end | 82 | 82 | — | —% | ||||
Actual patient days | 2,832,584 | 2,784,664 | 47,920 | 1.7% | ||||
Occupancy percentage — Operational beds | 81.9% | 80.4% | 1.5% | |||||
Skilled mix by nursing days | 29.3% | 27.9% | 1.4% | |||||
Skilled mix by nursing revenue | 52.4% | 51.4% | 1.0% | |||||
Year Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Transitioning Facility Results(2): | ||||||||
Skilled nursing revenue | $ 99,326 | $ 96,454 | $ 2,872 | 3.0% | ||||
Assisted and independent living revenue | 18,171 | 16,467 | 1,704 | 10.3% | ||||
Total transitional, skilled and assisted living revenue | $ 117,497 | $ 112,921 | $ 4,576 | 4.1% | ||||
Number of facilities at period end | 25 | 25 | — | —% | ||||
Actual patient days | 634,772 | 619,161 | 15,611 | 2.5% | ||||
Occupancy percentage — Operational beds | 71.3% | 69.6% | 1.7% | |||||
Skilled mix by nursing days | 19.8% | 19.5% | 0.3% | |||||
Skilled mix by nursing revenue | 41.5% | 40.7% | 0.8% | |||||
Year Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Recently Acquired Facility Results(3): | ||||||||
Skilled nursing revenue | $ 77,722 | $ 27,710 | $ 50,012 | 180.5% | ||||
Assisted and independent living revenue | 11,974 | 4,512 | 7,462 | 165.4% | ||||
Total transitional, skilled and assisted living revenue | $ 89,696 | $ 32,222 | $ 57,474 | 178.4% | ||||
Number of facilities at period end | 29 | 11 | 18 | NM | ||||
Actual patient days | 426,386 | 171,861 | 254,525 | NM | ||||
Occupancy percentage — Operational beds | 66.5% | 66.2% | NM | |||||
Skilled mix by nursing days | 24.4% | 20.5% | NM | |||||
Skilled mix by nursing revenue | 47.0% | 46.6% | NM | |||||
Year Ended |
||||||||
2014 | 2013 | |||||||
(Dollars in thousands) | Change | % Change | ||||||
Transferred to CareTrust(4): | ||||||||
Skilled nursing revenue | $ — | $ — | $ — | NM | ||||
Assisted and independent living revenue | 1,247 | 3,459 | (2,212) | NM | ||||
Total transitional, skilled and assisted living revenue | $ 1,247 | $ 3,459 | $ (2,212) | NM | ||||
Actual patient days | 28,016 | 72,965 | NM | |||||
Occupancy percentage — Operational beds | 70.3% | 75.7% | NM | |||||
_______________________ | ||||||||
(1) Same Facility results represent all facilities purchased prior to |
||||||||
(2) Transitioning Facility results represents all facilities purchased from |
||||||||
(3) Recently Acquired Facility (or "Acquisitions") results represent all facilities purchased on or subsequent to |
||||||||
(4) Transferred to CareTrust results represent the results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off on |
|
||||||||
SKILLED NURSING AVERAGE DAILY REVENUE RATES AND | ||||||||
PERCENT OF SKILLED NURSING REVENUE AND DAYS BY PAYOR | ||||||||
The following table reflects the change in the skilled nursing average daily revenue rates by payor source, excluding services that are not covered by the daily rate: | ||||||||
Three Months Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
Skilled Nursing Average Daily Revenue Rates: | ||||||||
|
|
|
|
|
|
|
|
|
Managed care | 414.69 | 404.09 | 410.24 | 407.70 | 446.51 | 466.26 | 419.19 | 408.26 |
Other skilled | 443.97 | 432.54 | 835.03 | 720.73 | 335.63 | 253.00 | 436.62 | 439.21 |
Total skilled revenue | 492.59 | 493.75 | 485.66 | 477.34 | 465.54 | 477.47 | 488.76 | 491.43 |
|
188.51 | 184.34 | 168.51 | 157.96 | 176.67 | 146.17 | 184.92 | 179.18 |
Private and other payors | 195.75 | 188.72 | 169.23 | 165.96 | 189.73 | 153.29 | 187.98 | 179.57 |
Total skilled nursing revenue |
|
|
|
|
|
|
|
|
Year Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
Skilled Nursing Average Daily Revenue Rates: | ||||||||
|
|
|
|
|
|
|
|
|
Managed care | 412.21 | 398.02 | 411.33 | 394.51 | 456.29 | 465.95 | 416.74 | 400.44 |
Other skilled | 440.54 | 456.19 | 812.83 | 697.96 | 321.63 | 253.00 | 437.08 | 460.76 |
Total skilled revenue | 491.20 | 490.35 | 475.57 | 464.84 | 464.31 | 480.12 | 487.55 | 487.53 |
|
183.36 | 177.35 | 163.22 | 161.95 | 165.44 | 139.92 | 179.45 | 174.04 |
Private and other payors | 193.22 | 187.38 | 170.50 | 167.20 | 182.06 | 149.74 | 185.79 | 179.40 |
Total skilled nursing revenue |
|
|
|
|
|
|
|
|
The following tables set forth our percentage of skilled nursing patient revenue and days by payor source for the three months ended |
||||||||
Three Months Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
Percentage of Skilled Nursing Revenue: | ||||||||
|
28.2% | 30.4% | 32.9% | 34.1% | 22.4% | 26.3% | 28.0% | 30.6% |
Managed care | 16.3 | 14.6 | 7.0 | 4.7 | 21.2 | 20.8 | 15.9 | 13.8 |
Other skilled | 7.4 | 5.4 | 1.7 | 1.7 | 4.9 | — | 6.5 | 4.7 |
Skilled mix | 51.9 | 50.4 | 41.6 | 40.5 | 48.5 | 47.1 | 50.4 | 49.1 |
Private and other payors | 7.2 | 7.6 | 20.6 | 22.2 | 10.5 | 13.4 | 9.0 | 9.5 |
Quality mix | 59.1 | 58.0 | 62.2 | 62.5 | 59.0 | 60.5 | 59.4 | 58.6 |
|
40.9 | 42.0 | 37.8 | 37.5 | 41.0 | 39.5 | 40.6 | 41.4 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Three Months Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
Percentage of Skilled Nursing Days: | ||||||||
|
13.8% | 14.4% | 15.4% | 15.6% | 10.8% | 11.8% | 13.6% | 14.4% |
Managed care | 10.9 | 9.7 | 4.0 | 2.5 | 12.1 | 9.8 | 10.2 | 8.8 |
Other skilled | 4.6 | 3.4 | 0.4 | 0.5 | 3.7 | — | 4.0 | 2.8 |
Skilled mix | 29.3 | 27.5 | 19.8 | 18.6 | 26.6 | 21.6 | 27.8 | 26.0 |
Private and other payors | 10.4 | 10.9 | 28.2 | 29.2 | 14.1 | 19.2 | 13.0 | 13.8 |
Quality mix | 39.7 | 38.4 | 48.0 | 47.8 | 40.7 | 40.8 | 40.8 | 39.8 |
|
60.3 | 61.6 | 52.0 | 52.2 | 59.3 | 59.2 | 59.2 | 60.2 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
The following tables set forth our percentage of skilled nursing patient revenue and days by payor source for the year ended |
||||||||
Year Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
Percentage of Skilled Nursing Revenue: | ||||||||
|
29.7% | 31.1% | 32.8% | 34.8% | 22.7% | 28.8% | 29.4% | 31.4% |
Managed care | 15.9 | 14.9 | 6.9 | 4.7 | 20.1 | 17.8 | 15.3 | 13.9 |
Other skilled | 6.8 | 5.4 | 1.8 | 1.2 | 4.2 | — | 6.1 | 4.7 |
Skilled mix | 52.4 | 51.4 | 41.5 | 40.7 | 47.0 | 46.6 | 50.8 | 50.0 |
Private and other payors | 7.2 | 7.7 | 21.5 | 21.9 | 11.3 | 13.8 | 9.1 | 9.5 |
Quality mix | 59.6 | 59.1 | 63.0 | 62.6 | 58.3 | 60.4 | 59.9 | 59.5 |
|
40.4 | 40.9 | 37.0 | 37.4 | 41.7 | 39.6 | 40.1 | 40.5 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Year Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
Percentage of Skilled Nursing Days: | ||||||||
|
14.4% | 14.7% | 15.5% | 16.4% | 10.6% | 12.4% | 14.2% | 14.8% |
Managed care | 10.7 | 10.0 | 3.8 | 2.7 | 10.7 | 8.1 | 9.7 | 8.9 |
Other skilled | 4.2 | 3.2 | 0.5 | 0.4 | 3.1 | — | 3.7 | 2.7 |
Skilled mix | 29.3 | 27.9 | 19.8 | 19.5 | 24.4 | 20.5 | 27.6 | 26.4 |
Private and other payors | 10.3 | 10.8 | 28.7 | 29.1 | 15.0 | 19.6 | 13.1 | 13.7 |
Quality mix | 39.6 | 38.7 | 48.5 | 48.6 | 39.4 | 40.1 | 40.7 | 40.1 |
|
60.4 | 61.3 | 51.5 | 51.4 | 60.6 | 59.9 | 59.3 | 59.9 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
|
||||
SELECT PERFORMANCE INDICATORS | ||||
(Unaudited) | ||||
The following tables summarize our selected performance indicators for our home health and hospice segment along with other statistics, for each of the dates or periods indicated: | ||||
Three Months Ended December 31, | ||||
2014 | 2013 | Change | % Change | |
Results: | ||||
Home health and hospice revenue | ||||
Home health services: | $ 8,639 | $ 6,328 | $ 2,311 | 36.5% |
Hospice services: | 7,442 | 4,697 | 2,745 | 58.4% |
Total home health and hospice revenue | $ 16,081 | $ 11,025 | $ 5,056 | 45.9% |
Home health services: | ||||
Medicare Episodic Admissions | 1,768 | 1,487 | 281 | 18.9% |
Average Medicare Revenue per Completed Episode | 2,945 | 2,905 | 39.48 | 1.4% |
Hospice services: | ||||
Average Daily Census | 493 | 312 | 181 | 58.0% |
Year Ended |
||||
2014 | 2013 | Change | % Change | |
Results: | ||||
Home health and hospice revenue | ||||
Home health services: | $ 29,577 | $ 21,978 | $ 7,599 | 34.6% |
Hospice services: | 24,939 | 17,784 | 7,155 | 40.2% |
Total home health and hospice revenue | $ 54,516 | $ 39,762 | $ 14,754 | 37.1% |
Home health services: | ||||
Medicare Episodic Admissions | 5,221 | 4,090 | 1,131 | 27.7% |
Average Medicare Revenue per Completed Episode | 2,840 | 2,746 | 94 | 3.4% |
Hospice services: | ||||
Average Daily Census | 420 | 302 | 118 | 39.1% |
|
||||||||
REVENUE BY PAYOR SOURCE | ||||||||
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 |
Year Ended |
|||||||
2014 | 2013 | 2014 | 2013 | |||||
$ | % | $ | % | $ | % | $ | % | |
Revenue: | (Dollars in thousands) | (Dollars in thousands) | ||||||
|
$ 97,133 | 35.1% | $ 86,502 | 36.5% | $ 358,119 | 34.9% | $ 323,803 | 35.8% |
|
81,182 | 29.3% | 74,703 | 31.5% | 313,144 | 30.5% | 292,917 | 32.4% |
Medicaid—skilled | 14,583 | 5.3% | 9,469 | 4.0% | 51,157 | 5.0% | 36,085 | 4.0% |
Total | 192,898 | 69.7% | 170,674 | 72.0% | 722,420 | 70.4% | 652,805 | 72.2% |
Managed care | 40,480 | 14.6% | 30,722 | 13.0% | 145,796 | 14.2% | 118,168 | 13.1% |
Private and other(1) | 43,491 | 15.7% | 35,612 | 14.9% | 159,190 | 15.5% | 133,583 | 14.8% |
Total revenue | $ 276,869 | 100.0% | $ 237,008 | 100.0% | $ 1,027,406 | 100.0% | $ 904,556 | 100.0% |
(1) Private and other payors includes revenue from urgent care centers and other ancillary services. |
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. Adjusted EBITDA consists of net income before (a) interest expense, net, (b) provisions for income taxes, (c) depreciation and amortization, and, (d) discontinued operations, (e) development and operational losses associated with newly-developed operations which have not achieved stabilization, (f) impairment charges, (g) charges related to the DOJ settlement, (h) expenses incurred in connection with the company's proposed spin-off of real estate assets, (i) settlement of a class action lawsuit and (j) normalized tax rate. Adjusted 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, (e) , discontinued operations, (f) development and operational losses associated with newly-developed operations which have not achieved stabilization, (g) impairment charges, (h) charges related to the DOJ settlement, (i) expenses incurred in connection with the company's proposed spin-off of real estate assets, (j) settlement of a class action lawsuit and (k) normalized tax rate. The company believes that the presentation of EBITDA, EBITDAR, adjusted EBITDA, adjusted EBITDAR, adjusted net income and adjusted earnings per share provides important supplemental information to management and investors to evaluate the company's operating performance. The company believes disclosure of adjusted net income per share, EBITDA, EBITDAR, adjusted EBITDA and adjusted EBITDAR
has economic substance because the excluded revenues and expenses are infrequent in nature and are variable in nature, or do not represent current revenues or 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 company's 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 company's periodic filings with the
CONTACT: Investor/Media Relations,Source:The Ensign Group, Inc. , (949) 487-9500, ir@ensigngroup.net
News Provided by Acquire Media