News Release Details
The Ensign Group Reports Fourth Quarter 2010 Earnings of $0.55 per Share; Issues 2011 Guidance
(Logo: http://photos.prnewswire.com/prnh/20071213/LATH168LOGO)
Financial Highlights Include:
- Same-store occupancy grew by 137 basis points to a record 83.1% for the year, and by 194 basis points to 83.7% for the quarter;
- Consolidated EBITDAR climbed 22.8% to
$106.8 million for the year, with consolidated EBITDAR margins improving by 40 basis points to 16.4% and same-store EBITDAR margins increasing by 92 basis points to 17.6% for the year and by 192 basis points to 18.9% for the quarter; - Same-store skilled mix by revenue increased 292 basis points to 53.5% for 2010, and by 319 basis points to 54.6% for the quarter;
- Total revenue was a record
$649.5 million for the year and$172.8 million for the quarter, up 19.8% and 17.8% over the comparable periods in 2009; - Consolidated net income for
the year climbed 24.7% to
$40.5 million , or$1.92 per diluted share; and - The company's net debt-to-EBITDAR ratio at
December 31 was 1.76x.
Operating Results
Ensign's President and Chief Executive Officer
Mr. Christensen lauded the company's facility leaders and care teams, stating that, "We could never have achieved this occupancy growth or these financial results without first and consistently delivering outstanding clinical outcomes for our residents and their families," noting that based on state survey results, 2010 had seen a marked uptick in quality-of-care metrics across the organization. "Quality care begets financial performance," he added, "and the clinical excellence that produced these results is the work product of many, many dedicated leaders and caregivers across the Ensign organization who selflessly give their all to their residents, their communities and each other every day."
He noted that the company achieved these results while actively acquiring additional assets, with eight new facilities and one home health business flying the Ensign banner since
Executive Vice President
Mr. Stapley noted that the company has already acquired two strategic "potential flagship" continuing care retirement campuses in the first quarter of 2011. He also observed that opportunities for organic growth and improvement across the company's expanding portfolio appear more compelling than ever, as local leaders continue to focus on business fundamentals, occupancy continues to climb, and recent acquisitions start to mature.
Mr. Christensen also referenced Ensign's balance sheet and its industry-low debt ratio, reporting that the company's net-debt-to-EBITDAR ratio was 1.76x at year end. He further noted that the company continues to generate strong cash flow, with cash on hand on
In other results, consolidated EBITDA for the year grew by 27.8% or
Net income was
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 10-K, which was filed with the SEC today and can be viewed on the Company's website at http://www.ensigngroup.net.
2011 Guidance Issued
Management issued 2011 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, the company announced that it procured a
The company also announced the acquisition of eight long-term care facilities and a home health business in six separate transactions since
- In
Idaho ,Emmett Care & Rehabilitation Center, a 72-bed skilled nursing facility inEmmett, Idaho , and Parke View Rehabilitation & Care Center, an 86-bed skilled nursing facility inBurley, Idaho . - In
Texas , Heritage Gardens Healthcare Center, a 140-bed skilled nursing facility inCarrollton, Texas , and Silver Springs Healthcare Center, a 137-bed skilled nursing facility inHouston, Texas . - Also in
Idaho , Horizon Home Health and Hospice, a well-regarded four-office home health and hospice agency based in the greaterBoise, Idaho market. - In
Colorado , Canterbury Gardens Independent & Assisted Living Community, a 215-bed assisted and independent living facility inAurora, Colorado . - Also in
Texas ,Wisteria Place , a full-service senior care campus inAbilene , with 123 skilled nursing beds, 77 assisted living units and 20 independent living cottages, and Wisteria Independent Living, a separate residential retirement community also located inAbilene , with 72 independent living units. - And in
Utah ,St. Joseph Villa , a full-service senior care campus with 221 skilled nursing beds, 48 assisted living units and 60 independent living apartments.St. Joseph Villa also includes the Marian Center, the Salt Lake Valley's premier long-term inpatient acute psychiatric program, with its 12 psychiatric beds.
The acquisitions brought Ensign's growing portfolio to 85 facilities, 55 of which are Ensign-owned, with Ensign affiliates holding purchase options on eight of Ensign's 30 leased facilities. Management reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care operations across the
Conference Call
A live webcast will be held on
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. 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 Securities and Exchange Commission, including its Form 10-K, which was filed today, for a more complete discussion of the risks and other factors that could affect Ensign's 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) | |||||||
Three Months Ended December 31, 2010 | Year Ended December 31, 2010 | ||||||
As Reported | Non- GAAP Adj. | As Adjusted | As Reported | Non- GAAP Adj. | As Adjusted | ||
Revenue | $ 172,757 | $ 172,757 | $ 649,532 | $ 649,532 | |||
Expense: | |||||||
Cost of services (exclusive of facility rent and depreciation and amortization shown separately below) | 136,217 | (54) (1) | 136,163 | 516,668 | (150) (1) | 516,518 | |
Facility rent—cost of services | 3,656 | 3,656 | 14,478 | 14,478 | |||
General and administrative expense | 7,205 | 7,205 | 26,099 | 26,099 | |||
Depreciation and amortization | 4,395 | (27) (2) | 4,368 | 16,633 | (481) (2) | 16,152 | |
Total expenses | 151,473 | (81) | 151,392 | 573,878 | (631) | 573,247 | |
Income from operations | 21,284 | 81 | 21,365 | 75,654 | 631 | 76,285 | |
Other income (expense): | |||||||
Interest expense | (2,252) | (2,252) | (9,123) | (9,123) | |||
Interest income | 60 | 60 | 248 | 248 | |||
Other expense, net | (2,192) | (2,192) | (8,875) | (8,875) | |||
Income before provision for income taxes | 19,092 | 81 | 19,173 | 66,779 | 631 | 67,410 | |
Provision for income taxes | 7,420 | 32 (3) | 7,452 | 26,253 | 248 (3) | 26,501 | |
Net income | $ 11,672 | 49 | $ 11,721 | $ 40,526 | 383 | $ 40,909 | |
Net income per share: | |||||||
Basic | $ 0.56 | $ 0.56 | $ 1.95 | $ 1.97 | |||
Diluted | $ 0.55 | $ 0.55 | $ 1.92 | $ 1.93 | |||
Weighted average common shares outstanding: | |||||||
Basic | 20,791 | 20,791 | 20,744 | 20,744 | |||
Diluted | 21,275 | 21,275 | 21,159 | 21,159 | |||
(1) | Represents acquisition-related costs. | |
(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: | |||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||
Consolidated Statement of Income Data: | |||||||||||||||||
Net income | $ | 11,672 | $ | 8,693 | $ | 40,526 | $ | 32,486 | |||||||||
Interest expense, net | 2,192 | 1,914 | 8,875 | 5,412 | |||||||||||||
Provision for income taxes | 7,420 | 5,503 | 26,253 | 21,040 | |||||||||||||
Depreciation and amortization | 4,395 | 3,863 | 16,633 | 13,276 | |||||||||||||
EBITDA(1) | $ | 25,679 | $ | 19,973 | $ | 92,287 | $ | 72,214 | |||||||||
Facility rent—cost of services | 3,656 | 3,571 | 14,478 | 14,703 | |||||||||||||
EBITDAR(1) | $ | 29,335 | $ | 23,544 | $ | 106,765 | $ | 86,917 | |||||||||
THE ENSIGN GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS (In thousands) | |||||||||
December 31, | |||||||||
2010 | 2009 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 72,088 | $ | 38,855 | |||||
Accounts receivable—less allowance for doubtful accounts of $9,793 and $7,575 at December 31, 2010 and 2009, respectively | 69,437 | 62,606 | |||||||
Prepaid income taxes | 1,333 | 1,242 | |||||||
Prepaid expenses and other current assets | 7,175 | 6,498 | |||||||
Deferred tax asset—current | 9,975 | 8,126 | |||||||
Total current assets | 160,008 | 117,327 | |||||||
Property and equipment, net | 262,527 | 230,774 | |||||||
Insurance subsidiary deposits and investments | 16,358 | 13,810 | |||||||
Escrow deposits | 14,422 | 7,595 | |||||||
Deferred tax asset | 4,987 | 4,262 | |||||||
Restricted and other assets | 6,509 | 5,650 | |||||||
Intangible assets, net | 4,070 | 4,498 | |||||||
Goodwill | 10,339 | 7,432 | |||||||
Other indefinite-lived intangibles | 672 | — | |||||||
Total assets | $ | 479,892 | $ | 391,348 | |||||
Liabilities and stockholders' equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 17,897 | $ | 15,498 | |||||
Accrued wages and related liabilities | 37,377 | 28,756 | |||||||
Accrued self-insurance liabilities—current | 11,480 | 10,074 | |||||||
Other accrued liabilities | 13,557 | 15,375 | |||||||
Current maturities of long-term debt | 3,055 | 2,065 | |||||||
Total current liabilities | 83,366 | 71,768 | |||||||
Long-term debt—less current maturities | 139,451 | 107,401 | |||||||
Accrued self-insurance liabilities—less current portion | 25,920 | 22,096 | |||||||
Deferred rent and other long-term liabilities | 2,952 | 2,524 | |||||||
Stockholders' equity | 228,203 | 187,559 | |||||||
Total liabilities and stockholders' equity | $ | 479,892 | $ | 391,348 | |||||
The following table presents selected data from our condensed consolidated statement of cash flows for the periods presented: | |||||||
Year Ended | |||||||
December 31, | |||||||
2010 | 2009 | ||||||
(In thousands) | |||||||
Net cash provided by operating activities | $ | 60,501 | $ | 46,271 | |||
Net cash used in investing activities | (57,186) | (80,469) | |||||
Net cash provided by (used in) financing activities | 29,918 | 31,727 | |||||
Net increase (decrease) in cash and cash equivalents | 33,233 | (2,471) | |||||
Cash and cash equivalents at beginning of period | 38,855 | 41,326 | |||||
Cash and cash equivalents at end of period | $ | 72,088 | $ | 38,855 | |||
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: | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Total Facility Results : | ||||||||||||||||||||||||||||||||
Revenue | $ | 172,757 | $ | 146,615 | $ | 26,142 | 17.8 | % | ||||||||||||||||||||||||
Number of facilities at period end | 82 | 77 | 5 | 6.5 | % | |||||||||||||||||||||||||||
Actual patient days | 700,984 | 628,699 | 72,285 | 11.5 | % | |||||||||||||||||||||||||||
Occupancy percentage — Operational beds | 80.5 | % | 78.7 | % | 1.8 | % | ||||||||||||||||||||||||||
Skilled mix by nursing days | 24.5 | % | 24.4 | % | 0.1 | % | ||||||||||||||||||||||||||
Skilled mix by nursing revenue | 50.5 | % | 47.9 | % | 2.6 | % | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Same Facility Results(1) : | ||||||||||||||||||||||||||||||||
Revenue | $ | 130,950 | $ | 119,683 | $ | 11,267 | 9.4 | % | ||||||||||||||||||||||||
Number of facilities at period end | 56 | 56 | — | — | % | |||||||||||||||||||||||||||
Actual patient days | 499,241 | 491,648 | 7,593 | 1.5 | % | |||||||||||||||||||||||||||
Occupancy percentage — Operational beds | 83.7 | % | 81.7 | % | 2.0 | % | ||||||||||||||||||||||||||
Skilled mix by nursing days | 28.2 | % | 27.3 | % | 0.9 | % | ||||||||||||||||||||||||||
Skilled mix by nursing revenue | 54.6 | % | 51.4 | % | 3.2 | % | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Transitioning Facility Results(2) : | ||||||||||||||||||||||||||||||||
Revenue | $ | 9,785 | $ | 8,623 | $ | 1,162 | 13.5 | % | ||||||||||||||||||||||||
Number of facilities at period end | 6 | 6 | — | — | % | |||||||||||||||||||||||||||
Actual patient days | 43,425 | 41,892 | 1,533 | 3.7 | % | |||||||||||||||||||||||||||
Occupancy percentage — Operational beds | 74.1 | % | 71.5 | % | 2.6 | % | ||||||||||||||||||||||||||
Skilled mix by nursing days | 19.4 | % | 17.8 | % | 1.6 | % | ||||||||||||||||||||||||||
Skilled mix by nursing revenue | 44.1 | % | 39.3 | % | 4.8 | % | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Recently Acquired Facility Results(3) : | ||||||||||||||||||||||||||||||||
Revenue | $ | 32,022 | $ | 18,309 | $ | 13,713 | NM | % | ||||||||||||||||||||||||
Number of facilities at period end | 20 | 15 | 5 | NM | % | |||||||||||||||||||||||||||
Actual patient days | 158,318 | 95,159 | 63,159 | NM | % | |||||||||||||||||||||||||||
Occupancy percentage — Operational beds | 73.5 | % | 68.9 | % | 4.6 | % | ||||||||||||||||||||||||||
Skilled mix by nursing days | 13.8 | % | 12.2 | % | 1.6 | % | ||||||||||||||||||||||||||
Skilled mix by nursing revenue | 34.1 | % | 28.3 | % | 5.8 | % | ||||||||||||||||||||||||||
(1) | Same Facility results represent all facilities purchased prior to January 1, 2007. | ||||
(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 acquisition made on or subsequent to January 1, 2009. | ||||
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: | ||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Total Facility Results : | ||||||||||||||||||||||||||||||||
Revenue | $ | 649,532 | $ | 542,002 | $ | 107,530 | 19.8 | % | ||||||||||||||||||||||||
Number of facilities at period end | 82 | 77 | 5 | 6.5 | % | |||||||||||||||||||||||||||
Actual patient days | 2,706,543 | 2,353,087 | 353,456 | 15.0 | % | |||||||||||||||||||||||||||
Occupancy percentage — Operational beds | 79.9 | % | 79.4 | % | 0.5 | % | ||||||||||||||||||||||||||
Skilled mix by nursing days | 25.0 | % | 24.6 | % | 0.4 | % | ||||||||||||||||||||||||||
Skilled mix by nursing revenue | 49.1 | % | 48.2 | % | 0.9 | % | ||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Same Facility Results(1) : | ||||||||||||||||||||||||||||
Revenue | $ | 497,274 | $ | 468,032 | $ | 29,242 | 6.2 | % | ||||||||||||||||||||
Number of facilities at period end | 56 | 56 | — | — | % | |||||||||||||||||||||||
Actual patient days | 1,971,860 | 1,980,008 | (8,148) | (0.4) | % | |||||||||||||||||||||||
Occupancy percentage — Operational beds | 83.1 | % | 81.7 | % | 1.4 | % | ||||||||||||||||||||||
Skilled mix by nursing days | 28.6 | % | 26.6 | % | 2.0 | % | ||||||||||||||||||||||
Skilled mix by nursing revenue | 53.5 | % | 50.6 | % | 2.9 | % | ||||||||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2010 | 2009 | Change | % Change | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Transitioning Facility Results(2) : | |||||||||||||||||
Revenue | $ | 35,830 | $ | 33,305 | $ | 2,525 | 7.6 | % | |||||||||
Number of facilities at period end | 6 | 6 | — | — | % | ||||||||||||
Actual patient days | 167,245 | 162,250 | 4,995 | 3.1 | % | ||||||||||||
Occupancy percentage — Operational beds | 71.9 | % | 69.8 | % | 2.1 | % | |||||||||||
Skilled mix by nursing days | 19.1 | % | 18.1 | % | 1.0 | % | |||||||||||
Skilled mix by nursing revenue | 41.5 | % | 41.2 | % | 0.3 | % | |||||||||||
Year Ended | ||||||||||||||||||
December 31, | ||||||||||||||||||
2010 | 2009 | Change | % Change | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Recently Acquired Facility Results(3) : | ||||||||||||||||||
Revenue | $ | 116,428 | $ | 40,665 | $ | 75,763 | NM | % | ||||||||||
Number of facilities at period end | 20 | 15 | 5 | NM | % | |||||||||||||
Actual patient days | 567,438 | 210,829 | 356,609 | NM | % | |||||||||||||
Occupancy percentage — Operational beds | 72.5 | % | 68.1 | % | 4.4 | % | ||||||||||||
Skilled mix by nursing days | 13.8 | % | 11.2 | % | 2.6 | % | ||||||||||||
Skilled mix by nursing revenue | 31.5 | % | 25.2 | % | 6.3 | % | ||||||||||||
(1) | Same Facility results represent all facilities purchased prior to January 1, 2007. Same Facility results for 2009 include the results of operations through September 30, 2009 of our assisted living facility in Arizona where we decided not to exercise our renewal option on the lease which expired on September 30, 2009. The non-renewal of this lease reduced the number of actual patient days by 21,984 during the year ended December 31, 2010. | ||||
(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 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 | Twelve Months Ended | ||||||||||||||||||||||||
Same Facility | Same Facility | ||||||||||||||||||||||||
2010 | 2009 | % Change | 2010 | 2009 | % Change | ||||||||||||||||||||
Skilled Nursing Average Daily Revenue Rates: | |||||||||||||||||||||||||
Medicare | $ | 647.13 | $ | 555.81 | 16.4 | % | $ | 577.63 | $ | 547.06 | 5.6 | % | |||||||||||||
Managed care | 350.48 | 343.66 | 2.0 | % | 345.36 | 337.99 | 2.2 | % | |||||||||||||||||
Other skilled | 534.53 | 551.05 | (3.0) | % | 546.35 | 592.57 | (7.8) | % | |||||||||||||||||
Total skilled revenue | 523.75 | 469.47 | 11.6 | % | 484.67 | 465.12 | 4.2 | % | |||||||||||||||||
Medicaid | 166.47 | 163.90 | 1.6 | % | 165.10 | 161.36 | 2.3 | % | |||||||||||||||||
Private and other payors | 194.46 | 183.34 | 6.1 | % | 189.78 | 182.69 | 3.9 | % | |||||||||||||||||
Total skilled nursing revenue | $ | 269.94 | $ | 249.51 | 8.2 | % | $ | 258.89 | $ | 244.39 | 5.9 | % | |||||||||||||
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 December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||
Medicaid | $ | 66,878 | 38.7 | % | $ | 59,760 | 40.8 | % | $ | 259,711 | 40.0 | % | $ | 219,188 | 40.4 | % | |||||||||||||||||
Medicare | 61,194 | 35.4 | 46,895 | 32.0 | 219,217 | 33.7 | 174,769 | 32.3 | |||||||||||||||||||||||||
Medicaid-skilled | 4,111 | 2.4 | 3,823 | 2.6 | 17,573 | 2.7 | 12,449 | 2.3 | |||||||||||||||||||||||||
Total | 132,183 | 76.5 | 110,478 | 75.4 | 496,501 | 76.4 | 406,406 | 75.0 | |||||||||||||||||||||||||
Managed Care | 22,265 | 12.9 | 19,868 | 13.5 | 84,364 | 13.0 | 72,544 | 13.4 | |||||||||||||||||||||||||
Private and Other | 18,309 | 10.6 | 16,269 | 11.1 | 68,667 | 10.6 | 63,052 | 11.6 | |||||||||||||||||||||||||
Total revenue | $ | 172,757 | 100.0 | % | $ | 146,615 | 100.0 | % | $ | 649,532 | 100.0 | % | $ | 542,002 | 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 Company's 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 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 Report on Form 10-K filed today with the SEC. The Form 10-K is available on the SEC's website at www.sec.gov or under the "Financial Information" link of the Investor Relations section on Ensign's website at http://www.ensigngroup.net.
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