News Release Details
The Ensign Group Reports Fourth Quarter 2011 Earnings of $0.48 per Share; Issues 2012 Guidance
(Logo: http://photos.prnewswire.com/prnh/20071213/LATH168LOGO)
Financial Highlights Include:
- Operating results met annual revenue projections and exceeded earnings guidance, with consolidated revenues of
$758.3 million , up 16.7%, and adjusted earnings of$2.34 per diluted share, up 21.2%; - Same-store
Medicare occupancy grew by 564 basis points, and same-store assisted-living occupancy increased by 254 basis points sequentially and 261 basis points quarter over quarter; - Consolidated EBITDAR for the year climbed by 19.6% to
$127.7 million , and for the quarter declined by only 184 basis points to$28.8 million in spite of the 11.1%October 1 Medicare cuts and changes to therapy regulations which increased therapy costs; - Consolidated EBITDA for the year climbed by 23.5% to
$114.0 million , and for the quarter declined by only 89 basis points to$25.5 million , also despite theMedicare cuts and therapy cost increases; and - Net income for the year climbed 17.6% to
$47.7 million , despite a decline of 11.3% in the quarter due to theMedicare cuts and therapy cost increases, which decline was on the low end of previously-issued forecasts.
Operating Results
The better-than-expected operating results came in the midst of an unprecedented 11.1% reduction in
"The fourth quarter marked the most daunting challenge to Ensign's facility-centric leadership structure and operating model to date, and perhaps the best test of our flexibility, responsiveness and resilience that we will ever experience," said Ensign's President and Chief Executive Officer
Noting that the rate cuts were more heavily weighted toward the highest-acuity patients,
He also lauded Ensign's facility leadership teams for being able to make critical adjustments across a variety of revenue and expense variables in their individual markets and operations. "As a result of a thousand little things that they collectively did, even with the rate cuts our overall skilled revenue was only off 4.4% on a same-store basis, and net income only declined 11.3% in the quarter," he added, noting that additional planned mitigation efforts will not take full effect until the first half of 2012.
Chief Financial Officer
She also noted that operating results met annual revenue projections and exceeded earnings guidance, both of which were increased in 2011. Revenue guidance was raised in
In other results, she reported that consolidated EBITDA for the year grew by 23.5% or
Fully diluted GAAP earnings per share were
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
2012 Guidance Issued
Management issued 2012 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 six long-term care facilities and two home health businesses in eight separate transactions. The facilities and businesses were purchased with cash, and include:
- In
Southern California , The Springs at Pacific Regent La Jolla, a 59-bedMedicare -only skilled nursing facility located inSan Diego 's prestigiousVillage of La Jolla . - In
Idaho ,Pocatello Care & Rehabilitation Center , an 88-bed skilled nursing facility that an Ensign operating subsidiary has operated under a lease since 2006, and the underlying real estate of which was acquired pursuant to a fixed-price purchase option in that lease. - In
Nevada ,Rosewood Rehabilitation Center , a well-regarded 99-bed skilled nursing facility in theReno market. - Also in
Nevada , Park Place Assisted Living, a 60-unit assisted living facility in the growingReno market. - In
Arizona , Rose Court Independent &Assisted Living Community , an 89-unit assisted and independent living facility inPhoenix that was acquired from a lender's REO portfolio. - In
Utah , Orem Rehabilitation & Nursing Center, a 120-bed skilled nursing facility that an Ensign operating subsidiary has operated under a lease since 2008, and the underlying real estate of which was acquired from the estate of the former landlord. - In
Colorado , Homecare Solutions, a small home health agency based inDenver . - In
Oregon ,Connected Home Health , a small home health agency based inPortland . This acquisition represents Ensign's first foray into theOregon healthcare market.
The acquisitions brought Ensign's growing portfolio to 103 facilities, 78 of which are Ensign-owned, with Ensign affiliates holding purchase options on five of Ensign's 25 leased facilities, as well as three hospice companies and five home health businesses, spread over 11 states. Management reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care, home health and hospice operations across
Urgent Care Joint Venture
In
Immediate Clinic's state-of-the-art walk-in clinics will offer daily access to healthcare for minor injuries and illnesses, including X-ray and lab services, all from convenient neighborhood locations and with no appointment. Design and construction planning for several new locations is currently underway, and
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
GAAP and ADJUSTED CONSOLIDATED STATEMENT 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 | $ 192,662 | $ 192,662 | $ 758,277 | $ 758,277 | ||||||||||||||||
Expense: | ||||||||||||||||||||
Cost of services (exclusive of facility rent and depreciation and amortization shown separately below) | 156,287 | (91) (1) | 156,196 | 600,804 | (452) (1) | 600,352 | ||||||||||||||
Facility rent—cost of services | 3,345 | 3,345 | 13,725 | 13,725 | ||||||||||||||||
General and administrative expense | 7,578 | (780) (2) | 6,798 | 29,766 | (1,544) (2) | 28,222 | ||||||||||||||
Depreciation and amortization | 6,502 | (213) (3) | 6,289 | 23,286 | (1,021) (3) | 22,265 | ||||||||||||||
Total expenses | 173,712 | (1,084) | 172,628 | 667,581 | (3,017) | 664,564 | ||||||||||||||
Income from operations | 18,950 | 1,084 | 20,034 | 90,696 | 3,017 | 93,713 | ||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest expense | (2,989) | (2,989) | (13,778) | 2,542 (4) | (11,236) | |||||||||||||||
Interest income | 51 | 51 | 249 | 249 | ||||||||||||||||
Other expense, net | (2,938) | (2,938) | (13,529) | 2,542 | (10,987) | |||||||||||||||
Income before provision for income taxes | 16,012 | 1,084 | 17,096 | 77,167 | 5,559 | 82,726 | ||||||||||||||
Tax impact of non-GAAP adjustments | 422 (6) | 2,162 (6) | ||||||||||||||||||
Adjustment to increase tax rate to 38.9% | 571 (5) | 526 (5) | ||||||||||||||||||
Provision for income taxes | 5,657 | 993 | 6,650 | 29,492 | 2,688 | 32,180 | ||||||||||||||
Net income | $ 10,355 | 91 | $ 10,446 | $ 47,675 | 2,871 | $ 50,546 | ||||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ 0.49 | $ 0.49 | $ 2.27 | $ 2.41 | ||||||||||||||||
Diluted | $ 0.48 | $ 0.48 | $ 2.21 | $ 2.34 | ||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 21,109 | 21,109 | 20,967 | 20,967 | ||||||||||||||||
Diluted | 21,621 | 21,621 | 21,583 | 21,583 | ||||||||||||||||
(1) Represents acquisition-related costs. | ||||||||||||||||||||
(2) Represents legal costs incurred in connection with the ongoing investigation into the billing and reimbursement processes at some of our subsidiaries being conducted by the | ||||||||||||||||||||
(3) 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. | ||||||||||||||||||||
(4) Represents the loss on extinguishment and amortization of remaining deferred financing costs in connection with the Senior Credit Facility entered into by the Company on | ||||||||||||||||||||
(5) The Company's effective tax rates were a lower-than-normal 38.3% for the year and 35.3% for the quarter. This non-GAAP adjustment normalizes the tax rate to 38.9%, thereby increasing the tax expense and reducing adjusted earnings per share. | ||||||||||||||||||||
(6) Represents the tax impact of non-GAAP adjustments noted in (1) — (4) at a normalized rate of 38.9%. | ||||||||||||||||||||
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, | |||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||
Consolidated Statement of Income Data: | |||||||||||||||||
Net income | $ | 10,355 | $ | 11,672 | $ | 47,675 | $ | 40,526 | |||||||||
Interest expense, net | 2,938 | 2,192 | 13,529 | 8,875 | |||||||||||||
Provision for income taxes | 5,657 | 7,420 | 29,492 | 26,253 | |||||||||||||
Depreciation and amortization | 6,502 | 4,395 | 23,286 | 16,633 | |||||||||||||
EBITDA | $ | 25,452 | $ | 25,679 | $ | 113,982 | $ | 92,287 | |||||||||
Facility rent-cost of services | 3,345 | 3,656 | 13,725 | 14,478 | |||||||||||||
EBITDAR | $ | 28,797 | $ | 29,335 | $ | 127,707 | $ | 106,765 | |||||||||
CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS | |||||||||
(In thousands) | |||||||||
December 31, | |||||||||
2011 | 2010 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 29,584 | $ | 72,088 | |||||
Accounts receivable-less allowance for doubtful accounts of | 86,311 | 69,437 | |||||||
Prepaid income taxes | 5,882 | 1,333 | |||||||
Prepaid expenses and other current assets | 7,667 | 7,175 | |||||||
Deferred tax asset-current | 11,195 | 9,975 | |||||||
Total current assets | 140,639 | 160,008 | |||||||
Property and equipment, net | 403,862 | 262,527 | |||||||
Insurance subsidiary deposits and investments | 16,752 | 16,358 | |||||||
Escrow deposits | 175 | 14,422 | |||||||
Deferred tax asset | 3,514 | 4,987 | |||||||
Restricted and other assets | 10,418 | 6,509 | |||||||
Intangible assets, net | 2,321 | 4,070 | |||||||
Goodwill | 17,177 | 10,339 | |||||||
Other indefinite-lived intangibles | 1,481 | 672 | |||||||
Total assets | $ | 596,339 | $ | 479,892 | |||||
Liabilities and stockholders' equity Current liabilities: | |||||||||
Accounts payable | $ | 21,169 | $ | 17,897 | |||||
Accrued wages and related liabilities | 41,958 | 37,377 | |||||||
Accrued self-insurance liabilities-current | 12,369 | 11,480 | |||||||
Other accrued liabilities | 18,577 | 13,557 | |||||||
Current maturities of long-term debt | 6,314 | 3,055 | |||||||
Total current liabilities | 100,387 | 83,366 | |||||||
Long-term debt-less current maturities | 181,556 | 139,451 | |||||||
Accrued self-insurance liabilities-less current portion | 31,904 | 25,920 | |||||||
Fair value of interest rate swap | 2,143 | — | |||||||
Deferred rent and other long-term liabilities | 2,864 | 2,952 | |||||||
Stockholders' equity | 277,485 | 228,203 | |||||||
Total liabilities and stockholders' equity | $ | 596,339 | $ | 479,892 | |||||
The following table presents selected data from our condensed consolidated statement of cash flows for the periods presented: | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2011 | 2010 | ||||||||
Net cash provided by operating activities | $ | 72,687 | $ | 60,501 | |||||
Net cash used in investing activities | (156,052) | (57,186) | |||||||
Net cash provided by financing activities | 40,861 | 29,918 | |||||||
Net increase (decrease) in cash and cash equivalents | (42,504) | 33,233 | |||||||
Cash and cash equivalents at beginning of period | 72,088 | 38,855 | |||||||
Cash and cash equivalents at end of period | $ | 29,584 | $ | 72,088 | |||||
SELECT PERFORMANCE INDICATORS | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
The following tables summarize our selected performance indicators, along with other statistics, for each of the dates or periods indicated: | |||||||||||||||
Three Months Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Total Facility Results: | |||||||||||||||
Revenue | $ | 192,662 | $ | 172,757 | $ | 19,905 | 11.5% | ||||||||
Number of facilities at period end | 102 | 82 | 20 | 24.4% | |||||||||||
Actual patient days | 833,617 | 700,984 | 132,633 | 18.9% | |||||||||||
Occupancy percentage - Operational beds | 78.5% | 80.5% | (2.0)% | ||||||||||||
Skilled mix by nursing days | 24.7% | 24.5% | 0.2% | ||||||||||||
Skilled mix by nursing revenue | 48.6% | 50.5% | (1.9)% | ||||||||||||
Three Months Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Same Facility Results(1): | |||||||||||||||
Revenue | $ | 134,501 | $ | 137,598 | $ | (3,097) | (2.3)% | ||||||||
Number of facilities at period end | 60 | 60 | — | —% | |||||||||||
Actual patient days | 525,028 | 530,088 | (5,060) | (1.0)% | |||||||||||
Occupancy percentage - Operational beds | 82.4% | 83.2% | (0.8)% | ||||||||||||
Skilled mix by nursing days | 28.3% | 27.5% | 0.8% | ||||||||||||
Skilled mix by nursing revenue | 52.9% | 54.0% | (1.1)% | ||||||||||||
Three Months Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Transitioning Facility Results(2): | |||||||||||||||
Revenue | $ | 27,760 | $ | 26,266 | $ | 1,494 | 5.7% | ||||||||
Number of facilities at period end | 17 | 17 | — | —% | |||||||||||
Actual patient days | 126,706 | 130,076 | (3,370) | (2.6)% | |||||||||||
Occupancy percentage - Operational beds | 70.1% | 72.0% | (1.9)% | ||||||||||||
Skilled mix by nursing days | 17.1% | 14.6% | 2.5% | ||||||||||||
Skilled mix by nursing revenue | 36.8% | 36.0% | 0.8% | ||||||||||||
Three Months Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Recently Acquired Facility Results(3): | |||||||||||||||
Revenue | $ | 30,401 | $ | 8,893 | $ | 21,508 | NM | ||||||||
Number of facilities at period end | 25 | 5 | 20 | NM | |||||||||||
Actual patient days | 181,883 | 40,820 | 141,063 | NM | |||||||||||
Occupancy percentage - Operational beds | 74.4% | 76.8% | (2.4)% | ||||||||||||
Skilled mix by nursing days | 16.2% | 14.4% | 1.8% | ||||||||||||
Skilled mix by nursing revenue | 36.1% | 33.6% | 2.5% | ||||||||||||
(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 | |||||||||||||||
Year Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Total Facility Results: | |||||||||||||||
Revenue | $ | 758,277 | $ | 649,532 | $ | 108,745 | 16.7% | ||||||||
Number of facilities at period end | 102 | 82 | 20 | 24.4% | |||||||||||
Actual patient days | 3,124,724 | 2,706,543 | 418,181 | 15.5% | |||||||||||
Occupancy percentage - Operational beds | 79.2% | 79.9% | (0.7)% | ||||||||||||
Skilled mix by nursing days | 25.5% | 25.0% | 0.5% | ||||||||||||
Skilled mix by nursing revenue | 51.3% | 49.1% | 2.2% | ||||||||||||
Year Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Same Facility Results(1): | |||||||||||||||
Revenue | $ | 555,894 | $ | 522,048 | $ | 33,846 | 6.5% | ||||||||
Number of facilities at period end | 60 | 60 | — | —% | |||||||||||
Actual patient days | 2,090,370 | 2,091,188 | (818) | —% | |||||||||||
Occupancy percentage - Operational beds | 82.7% | 82.5% | 0.2% | ||||||||||||
Skilled mix by nursing days | 29.0% | 27.9% | 1.1% | ||||||||||||
Skilled mix by nursing revenue | 55.5% | 52.9% | 2.6% | ||||||||||||
Year Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Transitioning Facility Results(2): | |||||||||||||||
Revenue | $ | 111,561 | $ | 101,424 | $ | 10,137 | 10.0% | ||||||||
Number of facilities at period end | 17 | 17 | — | —% | |||||||||||
Actual patient days | 511,784 | 510,243 | 1,541 | 0.3% | |||||||||||
Occupancy percentage - Operational beds | 71.4% | 71.2% | 0.2% | ||||||||||||
Skilled mix by nursing days | 17.0% | 14.5% | 2.5% | ||||||||||||
Skilled mix by nursing revenue | 38.4% | 32.8% | 5.6% | ||||||||||||
Year Ended | |||||||||||||||
December 31, | |||||||||||||||
2011 | 2010 | ||||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||||
Recently Acquired Facility Results(3): | |||||||||||||||
Revenue | $ | 90,822 | $ | 26,060 | $ | 64,762 | NM | ||||||||
Number of facilities at period end | 25 | 5 | 20 | NM | |||||||||||
Actual patient days | 522,570 | 105,112 | 417,458 | NM | |||||||||||
Occupancy percentage - Operational beds | 74.7% | 75.8% | (1.1)% | ||||||||||||
Skilled mix by nursing days | 15.3% | 15.2% | 0.1% | ||||||||||||
Skilled mix by nursing revenue | 35.8% | 32.0% | 3.8% | ||||||||||||
(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 | |||||||||||||||
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 | % | |||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | Change | |||||||||||||||||||||||||||
Skilled Nursing Average Daily Revenue Rates: | |||||||||||||||||||||||||||||||||||
$ | 552.61 | $ | 642.87 | $ | 486.53 | $ | 527.16 | $ | 463.58 | $ | 514.06 | $ | 532.66 | $ | 621.98 | (14.4)% | |||||||||||||||||||
Managed care | 363.95 | 352.77 | 404.47 | 440.04 | 344.15 | 354.04 | 367.46 | 359.66 | 2.2% | ||||||||||||||||||||||||||
Other skilled | 660.85 | 534.53 | 639.96 | 550.00 | 571.26 | 626.95 | 656.84 | 537.70 | 22.2% | ||||||||||||||||||||||||||
Total skilled revenue | 492.09 | 522.10 | 467.17 | 503.94 | 448.42 | 494.99 | 485.03 | 519.37 | (6.6)% | ||||||||||||||||||||||||||
169.65 | 165.22 | 164.07 | 150.04 | 149.92 | 163.71 | 166.10 | 161.96 | 2.6% | |||||||||||||||||||||||||||
Private and other payors | 191.28 | 188.75 | 174.62 | 166.77 | 161.57 | 163.05 | 178.72 | 182.55 | (2.1)% | ||||||||||||||||||||||||||
Total skilled nursing revenue | $ | 262.87 | $ | 266.02 | $ | 217.40 | $ | 203.88 | $ | 201.82 | $ | 211.14 | $ | 246.44 | $ | 251.97 | (2.2)% | ||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | % | |||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | Change | |||||||||||||||||||||||||||
Skilled Nursing Average Daily Revenue Rates: | |||||||||||||||||||||||||||||||||||
$ | 620.10 | $ | 573.50 | $ | 522.46 | $ | 465.03 | $ | 489.19 | $ | 434.48 | $ | 595.30 | $ | 553.61 | 7.5% | |||||||||||||||||||
Managed care | 365.94 | 346.66 | 424.97 | 412.45 | 392.56 | 363.74 | 372.41 | 351.11 | 6.1% | ||||||||||||||||||||||||||
Other skilled | 565.58 | 546.35 | 545.72 | 550.00 | 570.60 | 625.23 | 564.60 | 548.94 | 2.9% | ||||||||||||||||||||||||||
Total skilled revenue | 521.81 | 483.18 | 493.67 | 453.47 | 480.28 | 437.16 | 515.90 | 478.92 | 7.7% | ||||||||||||||||||||||||||
168.04 | 163.96 | 159.90 | 154.38 | 154.32 | 165.67 | 165.11 | 162.00 | 1.9% | |||||||||||||||||||||||||||
Private and other payors | 188.83 | 184.32 | 173.90 | 172.54 | 160.23 | 166.24 | 179.42 | 180.72 | (0.7)% | ||||||||||||||||||||||||||
Total skilled nursing revenue | $ | 272.87 | $ | 255.36 | $ | 218.55 | $ | 200.22 | $ | 205.95 | $ | 206.88 | $ | 256.34 | $ | 243.26 | 5.4% | ||||||||||||||||||
The following tables set forth our percentage of skilled nursing patient revenue and days by payor source for the three months ended December 31, 2011 and 2010: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Percentage of Skilled Nursing Revenue: | |||||||||||||||||||||||||
34.1% | 36.5% | 24.9% | 27.6% | 31.4% | 26.9% | 32.4% | 34.8% | ||||||||||||||||||
Managed care | 14.0 | 14.4 | 9.9 | 8.4 | 3.9 | 4.0 | 12.3 | 13.1 | |||||||||||||||||
Other skilled | 4.8 | 3.1 | 2.0 | — | 0.8 | 2.7 | 3.9 | 2.6 | |||||||||||||||||
Skilled mix | 52.9 | 54.0 | 36.8 | 36.0 | 36.1 | 33.6 | 48.6 | 50.5 | |||||||||||||||||
Private and other payors | 7.0 | 7.8 | 10.9 | 11.1 | 23.6 | 11.3 | 9.5 | 8.5 | |||||||||||||||||
Quality mix | 59.9 | 61.8 | 47.7 | 47.1 | 59.7 | 44.9 | 58.1 | 59.0 | |||||||||||||||||
40.1 | 38.2 | 52.3 | 52.9 | 40.3 | 55.1 | 41.9 | 41.0 | ||||||||||||||||||
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 | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Percentage of Skilled Nursing Days: | |||||||||||||||||||||||||
16.2% | 15.1% | 11.1% | 10.7% | 13.7% | 11.1% | 15.0% | 14.1% | ||||||||||||||||||
Managed care | 10.2 | 10.9 | 5.3 | 3.9 | 2.3 | 2.4 | 8.2 | 9.2 | |||||||||||||||||
Other skilled | 1.9 | 1.5 | 0.7 | — | 0.2 | 0.9 | 1.5 | 1.2 | |||||||||||||||||
Skilled mix | 28.3 | 27.5 | 17.1 | 14.6 | 16.2 | 14.4 | 24.7 | 24.5 | |||||||||||||||||
Private and other payors | 9.6 | 11.0 | 13.6 | 13.5 | 29.6 | 14.5 | 13.2 | 11.7 | |||||||||||||||||
Quality mix | 37.9 | 38.5 | 30.7 | 28.1 | 45.8 | 28.9 | 37.9 | 36.2 | |||||||||||||||||
62.1 | 61.5 | 69.3 | 71.9 | 54.2 | 71.1 | 62.1 | 63.8 | ||||||||||||||||||
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 years ended December 31, 2011 and 2010: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Percentage of Skilled Nursing Revenue: | |||||||||||||||||||||||||
37.3% | 34.6% | 27.3% | 26.2% | 31.4% | 24.0% | 35.3% | 33.0% | ||||||||||||||||||
Managed care | 14.5 | 14.8 | 10.0 | 6.6 | 3.3 | 4.5 | 12.9 | 13.2 | |||||||||||||||||
Other skilled | 3.7 | 3.5 | 1.1 | — | 1.1 | 3.5 | 3.1 | 2.9 | |||||||||||||||||
Skilled mix | 55.5 | 52.9 | 38.4 | 32.8 | 35.8 | 32.0 | 51.3 | 49.1 | |||||||||||||||||
Private and other payors | 7.0 | 7.9 | 10.9 | 11.9 | 21.3 | 14.0 | 8.8 | 8.7 | |||||||||||||||||
Quality mix | 62.5 | 60.8 | 49.3 | 44.7 | 57.1 | 46.0 | 60.1 | 57.8 | |||||||||||||||||
37.5 | 39.2 | 50.7 | 55.3 | 42.9 | 54.0 | 39.9 | 42.2 | ||||||||||||||||||
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 | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Percentage of Skilled Nursing Days: | |||||||||||||||||||||||||
16.4% | 15.4% | 11.4% | 11.3% | 13.2% | 11.4% | 15.2% | 14.5% | ||||||||||||||||||
Managed care | 10.8 | 10.9 | 5.1 | 3.2 | 1.7 | 2.6 | 8.9 | 9.2 | |||||||||||||||||
Other skilled | 1.8 | 1.6 | 0.5 | — | 0.4 | 1.2 | 1.4 | 1.3 | |||||||||||||||||
Skilled mix | 29.0 | 27.9 | 17.0 | 14.5 | 15.3 | 15.2 | 25.5 | 25.0 | |||||||||||||||||
Private and other payors | 10.2 | 11.0 | 13.7 | 13.8 | 27.4 | 17.4 | 12.6 | 11.7 | |||||||||||||||||
Quality mix | 39.2 | 38.9 | 30.7 | 28.3 | 42.7 | 32.6 | 38.1 | 36.7 | |||||||||||||||||
60.8 | 61.1 | 69.3 | 71.7 | 57.3 | 67.4 | 61.9 | 63.3 | ||||||||||||||||||
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |||||||||||||||||
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 December 31, | ||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
$ | 73,463 | 38.1% | $ | 66,878 | 38.7% | $ | 277,736 | 36.6% | $ | 259,711 | 40.0% | ||||||||||||||||||
64,386 | 33.4 | 61,194 | 35.4 | 272,283 | 35.9 | 219,217 | 33.7 | ||||||||||||||||||||||
6,560 | 3.4 | 4,111 | 2.4 | 20,290 | 2.7 | 17,573 | 2.7 | ||||||||||||||||||||||
Total | 144,409 | 74.9 | 132,183 | 76.5 | 570,309 | 75.2 | 496,501 | 76.4 | |||||||||||||||||||||
Managed Care | 22,328 | 11.6 | 22,265 | 12.9 | 94,266 | 12.4 | 84,364 | 13.0 | |||||||||||||||||||||
Private and Other | 25,925 | 13.5 | 18,309 | 10.6 | 93,702 | 12.4 | 68,667 | 10.6 | |||||||||||||||||||||
Total revenue | $ | 192,662 | 100.0% | $ | 172,757 | 100.0% | $ | 758,277 | 100.0% | $ | 649,532 | 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
SOURCE
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