News Release Details
The Ensign Group Reports Quarterly Earnings Up 27%; Adjusted Earnings of $0.61 per Share; Issues 2013 Guidance
Financial Highlights Include:
-
Adjusted earnings per share climbed 27.1% to
$0.61 per share for the quarter, and grew 8.5% to$2.54 per share for the year, despite theOctober 2011 Medicare cuts, and well within the increased annual guidance published by Management inAugust 2012 ;
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Same-store skilled revenue mix grew by 117 basis points to 53.9% of revenues in the quarter;
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Same-store occupancy grew by 20 basis points over the prior year quarter, and by 53 basis points over the prior year, to 82.7%;
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Adjusted consolidated EBITDAR was
$35.0 million , an increase of 18.0% over the prior year quarter; and
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Consolidated revenues were up 8.8% to a record
$824.7 million in the year, and up 9.6% to a record$211.1 million in the quarter.
Operating Results
"We are pleased to report that operating results exceeded annual earnings guidance, which was increased in
Chief Financial Officer
Operating results for the year came in the midst of an unprecedented 11.1% reduction in
Adjusted net income was up 10.1% to
Ms. Snapper also reported that Ensign's balance sheet remained strong, with its industry-low net-debt-to-EBITDAR ratio of 2.34x at year end. She further noted that the company continues to generate strong cash flow, with cash on hand on
Diluted GAAP earnings per share were
Adjusted non-GAAP earnings for the quarter were
A discussion of the company's use of non-GAAP financial measures is set forth below. A reconciliation of net income to adjusted EBITDAR and adjusted 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
2013 Guidance Issued
Management issued 2013 annual guidance, projecting revenues of
DOJ Investigation Progress
Explaining the
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 acquired one long-term care facility, one home health business, two hospice businesses and a majority interest in an ancillary service provider, in five separate transactions. The operations were all purchased with cash, and include:
-
In
Texas ,Richland Hills Care & Rehabilitation Center , a 92-bed skilled nursing facility located inFort Worth ;
-
In
Arizona ,Emblem Healthcare , a well-regarded hospice agency located in the greaterPhoenix market's burgeoningEast Valley area;
-
In
California ,Vesper Healthcare , a small but respected hospice agency located in thePasadena market;
-
In
Washington ,Symbol Healthcare , a home health agency located in the Tacoma market; and
- In a multi-state transaction, the company also acquired a majority interest in a small but well-regarded mobile ancillary services provider.
The acquisitions brought Ensign's growing portfolio to 108 facilities, seven home health and six hospice companies, and an ancillary service provider, all in 11 states. Of the 108 facilities, 86 are Ensign-owned, and 65 of those are owned free of mortgage debt, with Ensign affiliates holding purchase options on two of Ensign's 22 leased facilities. Management reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care, seniors housing, home health and hospice operations across
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 STATEMENTS OF INCOME (In thousands, except per share data) |
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Three Months Ended |
Year Ended |
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As Reported | Non-GAAP Adj. | As Adjusted | As Reported | Non-GAAP Adj. | As Adjusted | |||
Revenue | $ 211,101 | (79) | (8) | $ 211,022 | $ 824,719 | (79) | (8) | $ 824,640 |
Expense: | ||||||||
Cost of services (exclusive of facility rent, general and administrative and depreciation and amortization expense shown separately below) | 171,765 | (3,077) | (1)(2)(8) | 168,688 | 660,070 | (6,641) | (1)(2)(3)(8) | 653,429 |
Charge related to |
15,000 | (15,000) | (4) | -- | 15,000 | (15,000) | (4) | -- |
Facility rent—cost of services | 3,256 | (272) | (5)(8) | 2,984 | 13,319 | (860) | (5)(8) | 12,459 |
General and administrative expense | 7,886 | (503) | (6) | 7,383 | 31,819 | (1,945) | (6) | 29,874 |
Depreciation and amortization | 7,319 | (50) | (7)(8) | 7,269 | 28,464 | (501) | (7)(8) | 27,963 |
Total expenses | 205,226 | (18,902) | 186,324 | 748,672 | (24,947) | 723,725 | ||
Income from operations | 5,875 | 18,823 | 24,698 | 76,047 | 24,868 | 100,915 | ||
Other income (expense): | ||||||||
Interest expense | (3,098) | (3,098) | (12,229) | (12,229) | ||||
Interest income | 83 | 83 | 255 | 255 | ||||
Other expense, net | (3,015) | (3,015) | (11,974) | (11,974) | ||||
Income before provision for income taxes | 2,860 | 18,823 | 21,683 | 64,073 | 24,868 | 88,941 | ||
Tax Effect on Non-GAAP Adjustments | 7,134 | (9) | 9,425 | (9) | ||||
Tax True-up for Effective Tax Rate | (110) | (10) | ||||||
Provision for income taxes | 1,195 | 7,024 | 8,219 | 24,265 | 9,425 | 33,690 | ||
Net income | $ 1,665 | 11,799 | $ 13,464 | $ 39,808 | 15,443 | $ 55,251 | ||
Less: net loss attributable to noncontrolling interests | (272) | 226 | (46) | (783) | 354 | (429) | ||
Net income attributable to |
$ 1,937 | 11,573 | $ 13,510 | $ 40,591 | 15,089 | $ 55,680 | ||
Net income per share attributable to |
||||||||
Basic | $ 0.09 | $ 0.63 | $ 1.89 | $ 2.60 | ||||
Diluted | $ 0.09 | $ 0.61 | $ 1.85 | $ 2.54 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 21,605 | 21,605 | 21,429 | 21,429 | ||||
Diluted | 22,075 | 22,075 | 21,942 | 21,942 | ||||
(1) Represents acquisition-related costs of |
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(2) Represents costs of |
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(3) Represents the settlement of a class action lawsuit regarding minimum staffing requirements in the state of |
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(4) Represents the Company's estimated liability related to our efforts to achieve a global, company-wide, resolution of any claims connected to the |
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(5) Represents straight-line rent amortization for a facility which the Company has begun construction activities, but has not commenced operations of a skilled nursing facility as of |
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(6) 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 |
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(7) 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. | ||||||||
(8) Represents revenues and expenses incurred at newly opened urgent care centers. | ||||||||
(9) Represents the tax impact of non-GAAP adjustments noted in (1) — (8) at our current year effective tax rate of 37.9%. | ||||||||
(10) Represents an adjustment to the provision for income taxes to our current year effective tax rate of 37.9% |
GAAP and ADJUSTED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) |
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Three Months Ended |
Year Ended |
|||||||
As Reported |
Non-GAAP Adj. |
As Adjusted |
As Reported |
Non-GAAP Adj. |
As Adjusted |
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Revenue | $ 192,662 | $ 192,662 | $ 758,277 | $ 758,277 | ||||
Expense: | ||||||||
Cost of services (exclusive of facility rent, general and administrative and depreciation and amortization expense 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 | 2,162 | ||||||
Adjustments to reflect 38.9% tax rate | 571 | 526 | ||||||
Provision for income taxes | 5,657 | 993 | (5) | 6,650 | 29,492 | 2,688 | (5) | 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 expenses. | ||||||||
(2) 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 |
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(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 |
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(5) Represents the tax impact of acquisition costs, patient base and loss on extinguishment of debt non-GAAP adjustments represented in entries (1) - (4). |
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR (in thousands) (Unaudited) |
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The table below reconciles net income to EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR for the periods presented: | |||||
Three Months Ended |
Year Ended |
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2012 | 2011 | 2012 | 2011 | ||
Consolidated Statements of Income Data: | |||||
Net income | $ 1,665 | $ 10,355 | $ 39,808 | $ 47,675 | |
Net loss attributable to noncontrolling interests | 272 | — | 783 | — | |
Interest expense, net | 3,015 | 2,938 | 11,974 | 13,529 | |
Provision for income taxes | 1,195 | 5,657 | 24,265 | 29,492 | |
Depreciation and amortization | 7,319 | 6,502 | 28,464 | 23,286 | |
EBITDA | $ 13,466 | $ 25,452 | $ 105,294 | $ 113,982 | |
Facility rent—cost of services | 3,256 | 3,345 | 13,319 | 13,725 | |
EBITDAR | $ 16,722 | $ 28,797 | $ 118,613 | $ 127,707 | |
EBITDA | $ 13,466 | $ 25,452 | $ 105,294 | $ 113,982 | |
Adjustments to EBITDA: | |||||
Charge related to the |
15,000 | -- | 15,000 | -- | |
Legal costs(b) | 503 | 780 | 1,945 | 1,544 | |
Settlement of class action lawsuit(c) | -- | -- | 2,596 | -- | |
Impairment of goodwill and other indefinite-lived intangibles(d) | 2,225 | -- | 2,225 | -- | |
Urgent care center losses(e) | 374 | -- | 546 | -- | |
Acquisition related costs(f) | 20 | 91 | 250 | 452 | |
Costs incurred to recognize income tax credits(g) | 153 | -- | 591 | -- | |
Rent related to non-core business items above(h) | 272 | -- | 860 | -- | |
Adjusted EBITDA | $ 32,013 | $ 26,323 | $ 129,307 | $ 115,978 | |
Facility rent—cost of services | 3,256 | 3,345 | 13,319 | 13,725 | |
Less: rent related to non-core business items above(h) | (272) | -- | (860) | -- | |
Adjusted EBITDAR | $ 34,997 | $ 29,668 | $ 141,766 | $ 129,703 | |
(a) Estimated liability related to our efforts to achieve a global, company-wide, resolution of any claims connected to the |
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(b) Legal costs incurred in connection with the ongoing investigation into the billing and reimbursement processes of some our our subsidiaries being conducted by the DOJ. | |||||
(c) Settlement of a class action lawsuit regarding minimum staffing requirements in the state of |
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(d) Impairment charges recorded at DRX, which we attribute to a decline in the estimated fair value of redeemable noncontrolling interest. | |||||
(e) Operating losses incurred at newly opened urgent care centers, which are not already excluded through the net loss attributable to noncontrolling interests. | |||||
(f) Costs incurred to acquire an operation which are not capitalizable. | |||||
(g) Costs incurred to recognize income tax credits which contributed to a decrease in effective tax rate. | |||||
(h) Rent related to urgent care operations, not included in item € above and straight-line rent amortization at one facility, for which the Company has begun construction activities, but has not commenced operations of a skilled nursing facility. |
CONSOLIDATED BALANCE SHEETS (In thousands) |
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2012 | 2011 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 40,923 | $ 29,584 | |
Accounts receivable — less allowance for doubtful accounts of |
94,187 | 86,311 | |
Investments — current | 5,195 | — | |
Prepaid income taxes | 3,787 | 5,882 | |
Prepaid expenses and other current assets | 8,636 | 7,667 | |
Deferred tax asset — current | 14,871 | 11,195 | |
Total current assets | 167,599 | 140,639 | |
Property and equipment, net | 447,877 | 403,862 | |
Insurance subsidiary deposits and investments | 17,315 | 16,752 | |
Escrow deposits | 4,635 | 175 | |
Deferred tax asset | 2,234 | 3,514 | |
Restricted and other assets | 8,643 | 10,418 | |
Intangible assets, net | 9,015 | 2,321 | |
Goodwill | 22,656 | 17,177 | |
Other indefinite-lived intangibles | 10,888 | 1,481 | |
Total assets | $ 690,862 | $ 596,339 | |
Liabilities and equity | |||
Current liabilities: | |||
Accounts payable | $ 26,069 | $ 21,169 | |
Accrued charge related to |
15,000 | — | |
Accrued wages and related liabilities | 35,847 | 41,958 | |
Accrued self-insurance liabilities — current | 16,034 | 12,369 | |
Other accrued liabilities | 21,210 | 18,577 | |
Current maturities of long-term debt | 7,187 | 6,314 | |
Total current liabilities | 121,347 | 100,387 | |
Long-term debt — less current maturities | 200,505 | 181,556 | |
Accrued self-insurance liabilities — less current portion | 34,849 | 31,904 | |
Fair value of interest rate swap | 2,866 | 2,143 | |
Deferred rent and other long-term liabilities | 3,411 | 2,864 | |
Total equity | 327,884 | 277,485 | |
Total liabilities and equity | $ 690,862 | $ 596,339 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
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The following table presents selected data from our consolidated statements of cash flows for the periods presented: | |||
Year Ended December 31, |
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2012 | 2011 | 2010 | |
Net cash provided by operating activities | $ 82,050 | $ 72,687 | $ 60,501 |
Net cash used in investing activities | (84,258) | (156,052) | (57,186) |
Net cash provided by financing activities | 13,547 | 40,861 | 29,918 |
Net increase (decrease) in cash and cash equivalents | 11,339 | (42,504) | 33,233 |
Cash and cash equivalents beginning of period | 29,584 | 72,088 | 38,855 |
Cash and cash equivalents end of period | $ 40,923 | $ 29,584 | $ 72,088 |
SELECT PERFORMANCE INDICATORS (Quarterly Information Unaudited) |
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The following tables summarize our selected performance indicators, along with other statistics, for each of the dates or periods indicated: | ||||
Three Months Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Total Facility Results: | ||||
Revenue | $ 211,101 | $ 192,662 | $ 18,439 | 9.6% |
Number of facilities at period end | 108 | 102 | 6 | 5.9% |
Actual patient days | 872,634 | 833,617 | 39,017 | 4.7% |
Occupancy percentage — Operational beds | 78.3% | 78.5% | (0.2)% | |
Skilled mix by nursing days | 25.9% | 24.7% | 1.2% | |
Skilled mix by nursing revenue | 49.7% | 48.6% | 1.1% | |
Three Months Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Same Facility Results(1): | ||||
Revenue | $ 141,726 | $ 137,466 | $ 4,260 | 3.1% |
Number of facilities at period end | 62 | 62 | — | —% |
Actual patient days | 537,457 | 536,591 | 866 | 0.2% |
Occupancy percentage — Operational beds | 82.0% | 81.8% | 0.2% | |
Skilled mix by nursing days | 29.3% | 28.5% | 0.8% | |
Skilled mix by nursing revenue | 53.9% | 52.7% | 1.2% | |
Three Months Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Transitioning Facility Results(2): | ||||
Revenue | $ 38,492 | $ 34,079 | $ 4,413 | 12.9% |
Number of facilities at period end | 20 | 20 | — | —% |
Actual patient days | 169,032 | 159,119 | 9,913 | 6.2% |
Occupancy percentage — Operational beds | 76.1% | 71.6% | 4.5% | |
Skilled mix by nursing days | 19.9% | 16.9% | 3.0% | |
Skilled mix by nursing revenue | 40.8% | 36.3% | 4.5% | |
Three Months Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Recently Acquired Facility Results(3): | ||||
Revenue | $ 30,883 | $ 21,117 | $ 9,766 | NM |
Number of facilities at period end | 26 | 20 | 6 | NM |
Actual patient days | 166,145 | 137,907 | 28,238 | NM |
Occupancy percentage — Operational beds | 69.8% | 74.6% | NM | |
Skilled mix by nursing days | 17.8% | 15.4% | NM | |
Skilled mix by nursing revenue | 37.1% | 35.3% | NM | |
Year Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Total Facility Results: | ||||
Revenue | $ 824,719 | $ 758,277 | $ 66,442 | 8.8% |
Number of facilities at period end | 108 | 102 | 6 | 5.9% |
Actual patient days | 3,452,598 | 3,124,724 | 327,874 | 10.5% |
Occupancy percentage — Operational beds | 79.0% | 79.2% | (0.2)% | |
Skilled mix by nursing days | 25.9% | 25.5% | 0.4% | |
Skilled mix by nursing revenue | 50.0% | 51.3% | (1.3)% | |
Year Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Same Facility Results(1): | ||||
Revenue | $ 563,719 | $ 568,087 | $ (4,368) | (0.8)% |
Number of facilities at period end | 62 | 62 | — | —% |
Actual patient days | 2,152,011 | 2,137,951 | 14,060 | 0.7% |
Occupancy percentage — Operational beds | 82.7% | 82.2% | 0.5% | |
Skilled mix by nursing days | 29.5% | 29.0% | 0.5% | |
Skilled mix by nursing revenue | 54.2% | 55.4% | (1.2)% | |
Year Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Transitioning Facility Results(2): | ||||
Revenue | $ 147,104 | $ 138,521 | $ 8,583 | 6.2% |
Number of facilities at period end | 20 | 20 | — | —% |
Actual patient days | 662,290 | 640,396 | 21,894 | 3.4% |
Occupancy percentage — Operational beds | 75.0% | 72.7% | 2.3% | |
Skilled mix by nursing days | 18.3% | 16.3% | 2.0% | |
Skilled mix by nursing revenue | 39.0% | 37.3% | 1.7% | |
Year Ended |
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2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Recently Acquired Facility Results(3): | ||||
Revenue | $ 113,896 | $ 51,669 | $ 62,227 | NM |
Number of facilities at period end | 26 | 20 | 6 | NM |
Actual patient days | 638,297 | 346,377 | 291,920 | NM |
Occupancy percentage — Operational beds | 72.1% | 74.9% | NM | |
Skilled mix by nursing days | 17.5% | 14.2% | NM | |
Skilled mix by nursing revenue | 38.2% | 34.0% | NM | |
(1) Same Facility results represent all facilities purchased prior to January 1, 2009. | ||||
(2) Transitioning Facility results represents all facilities purchased from January 1, 2009 to December 31, 2010. | ||||
(3) Recently Acquired Facility (or "Acquisitions") results represent all facilities purchased on or subsequent to January 1, 2011. |
SKILLED NURSING AVERAGE DAILY REVENUE RATES AND PERCENT OF SKILLED NURSING REVENUE AND DAYS BY PAYOR |
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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 |
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Same Facility | Transitioning | Acquisitions | Total | % | |||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | Change | |
Skilled Nursing Average Daily Revenue Rates: | |||||||||
|
$ 576.38 | $ 551.16 | $ 486.70 | $ 482.82 | $ 472.44 | $ 460.48 | $ 547.86 | $ 532.66 | 2.9% |
Managed care | 380.85 | 365.18 | 412.58 | 392.99 | 381.03 | 346.85 | 384.89 | 367.46 | 4.7% |
Other skilled | 554.79 | 571.56 | 574.08 | 622.42 | 610.62 | — | 558.50 | 656.84 | (15.0)% |
Total skilled revenue | 496.80 | 486.43 | 470.74 | 462.95 | 444.50 | 489.90 | 485.03 | 1.0% | |
|
172.72 | 170.75 | 171.56 | 164.47 | 171.89 | 137.96 | 172.38 | 166.10 | 3.8% |
Private and other payors | 195.43 | 191.16 | 157.27 | 172.45 | 167.15 | 160.91 | 179.55 | 178.72 | 0.5% |
Total skilled nursing revenue | $ 269.80 | $ 262.56 | $ 229.00 | $ 216.32 | $ 222.40 | $ 193.32 | $ 255.72 | $ 246.44 | 3.8% |
Year Ended |
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Same Facility | Transitioning | Acquisitions | Total | % | |||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | Change | |
Skilled Nursing Average Daily Revenue Rates: | |||||||||
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(9.0)% |
Managed care | 377.94 | 367.74 | 408.23 | 415.82 | 400.94 | 408.28 | 382.13 | 372.41 | 2.6% |
Other skilled | 521.11 | 542.93 | 571.97 | 554.10 | 610.62 | — | 528.00 | 564.60 | (6.5)% |
Total skilled revenue | 492.71 | 519.82 | 470.08 | 497.87 | 461.19 | 458.06 | 486.98 | 515.90 | (5.6)% |
|
170.76 | 168.36 | 164.91 | 161.43 | 154.04 | 138.48 | 167.78 | 165.11 | 1.6% |
Private and other payors | 196.64 | 188.21 | 167.34 | 173.40 | 165.64 | 158.35 | 181.52 | 179.42 | 1.2% |
Total skilled nursing revenue |
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(1.6)% |
The following tables set forth our percentage of skilled nursing patient revenue and days by payor source for the three months ended |
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Three Months Ended |
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Same Facility | Transitioning | Acquisitions | Total | |||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||
Percentage of Skilled Nursing Revenue: | ||||||||||||||||
|
33.1% | 33.9% | 25.6% | 25.9% | 33.7% | 31.4% | 31.9% | 32.4% | ||||||||
Managed care | 16.5 | 14.1 | 11.1 | 8.1 | 3.3 | 3.9 | 14.0 | 12.3 | ||||||||
Other skilled | 4.3 | 4.7 | 4.1 | 2.3 | 0.1 | — | 3.8 | 3.9 | ||||||||
Skilled mix | 53.9 | 52.7 | 40.8 | 36.3 | 37.1 | 35.3 | 49.7 | 48.6 | ||||||||
Private and other payors | 7.2 | 7.1 | 9.4 | 10.4 | 22.2 | 30.0 | 9.3 | 9.5 | ||||||||
Quality mix | 61.1 | 59.8 | 50.2 | 46.7 | 59.3 | 65.3 | 59.0 | 58.1 | ||||||||
|
38.9 | 40.2 | 49.8 | 53.3 | 40.7 | 34.7 | 41.0 | 41.9 | ||||||||
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 | |||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||
Percentage of Skilled Nursing Days: | ||||||||||||||||
|
15.5% | 16.2% | 12.0% | 11.6% | 15.8% | 13.2% | 14.9% | 15.0% | ||||||||
Managed care | 11.7 | 10.1 | 6.2 | 4.4 | 1.9 | 2.2 | 9.3 | 8.2 | ||||||||
Other skilled | 2.1 | 2.2 | 1.7 | 0.9 | 0.1 | — | 1.7 | 1.5 | ||||||||
Skilled mix | 29.3 | 28.5 | 19.9 | 16.9 | 17.8 | 15.4 | 25.9 | 24.7 | ||||||||
Private and other payors | 9.9 | 9.7 | 13.6 | 13.0 | 29.6 | 36.0 | 13.3 | 13.2 | ||||||||
Quality mix | 39.2 | 38.2 | 33.5 | 29.9 | 47.4 | 51.4 | 39.2 | 37.9 | ||||||||
|
60.8 | 61.8 | 66.5 | 70.1 | 52.6 | 48.6 | 60.8 | 62.1 | ||||||||
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 |
||||||||||||||||
Year Ended |
||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||
Percentage of Skilled Nursing Revenue: | ||||||||||||||||
|
34.4% | 37.1% | 26.3% | 28.3% | 33.3% | 30.5% | 32.9% | 35.3% | ||||||||
Managed care | 15.6 | 14.7 | 9.4 | 7.5 | 4.9 | 3.5 | 13.4 | 12.9 | ||||||||
Other skilled | 4.2 | 3.6 | 3.3 | 1.5 | — | — | 3.7 | 3.1 | ||||||||
Skilled mix | 54.2 | 55.4 | 39.0 | 37.3 | 38.2 | 34.0 | 50.0 | 51.3 | ||||||||
Private and other payors | 7.1 | 7.1 | 10.3 | 10.6 | 24.9 | 30.3 | 9.5 | 8.8 | ||||||||
Quality mix | 61.3 | 62.5 | 49.3 | 47.9 | 63.1 | 64.3 | 59.5 | 60.1 | ||||||||
|
38.7 | 37.5 | 50.7 | 52.1 | 36.9 | 35.7 | 40.5 | 39.9 | ||||||||
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 | |||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||
Percentage of Skilled Nursing Days: | ||||||||||||||||
|
16.3% | 16.3% | 12.0% | 11.8% | 14.9% | 12.5% | 15.3% | 15.2% | ||||||||
Managed care | 11.2 | 10.9 | 5.1 | 3.9 | 2.6 | 1.7 | 9.0 | 8.9 | ||||||||
Other skilled | 2.0 | 1.8 | 1.2 | 0.6 | — | — | 1.6 | 1.4 | ||||||||
Skilled mix | 29.5 | 29.0 | 18.3 | 16.3 | 17.5 | 14.2 | 25.9 | 25.5 | ||||||||
Private and other payors | 9.7 | 10.3 | 13.6 | 13.4 | 31.9 | 36.6 | 13.2 | 12.6 | ||||||||
Quality mix | 39.2 | 39.3 | 31.9 | 29.7 | 49.4 | 50.8 | 39.1 | 38.1 | ||||||||
|
60.8 | 60.7 | 68.1 | 70.3 | 50.6 | 49.2 | 60.9 | 61.9 | ||||||||
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 |
|||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||||||
$ | % | $ | % | $ | % | $ | % | $ | % | $ | % | |
Revenue: | (Dollars in thousands) | |||||||||||
|
$ 78,113 | 37.0% | $ 73,463 | 38.1% | $ 66,878 | 38.7% | $ 302,046 | 36.6% | $ 277,736 | 36.6% | $ 259,711 | 40.0% |
|
68,863 | 32.6% | 64,386 | 33.4% | 61,194 | 35.4% | 278,578 | 33.8% | 272,283 | 35.9% | 219,217 | 33.7% |
Medicaid—skilled | 6,828 | 3.3% | 6,560 | 3.4% | 4,111 | 2.4% | 25,418 | 3.1% | 20,290 | 2.7% | 17,573 | 2.7% |
Total | 153,804 | 72.9% | 144,409 | 74.9% | 132,183 | 76.5% | 606,042 | 73.5% | 570,309 | 75.2% | 496,501 | 76.4% |
Managed Care | 28,530 | 13.5% | 22,328 | 11.6% | 22,265 | 12.9% | 106,268 | 12.9% | 94,266 | 12.4% | 84,364 | 13.0% |
Private and Other(1) | 28,767 | 13.6% | 25,925 | 13.5% | 18,309 | 10.6% | 112,409 | 13.6% | 93,702 | 12.4% | 68,667 | 10.6% |
Total revenue | $ 211,101 | 100.0% | $ 192,662 | 100.0% | $ 172,757 | 100.0% | $ 824,719 | 100.0% | $ 758,277 | 100.0% | $ 649,532 | 100.0% |
(1) Private and other payors includes revenue from urgent care centers and franchising businesses. |
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, EBITDAR, adjusted EBITDA, adjusted EBITDAR and adjusted net income, 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 Report on Form 10-K filed today with the
CONTACT:Source:Robert East Westwicke Partners LLC (443) 213-0500 bob.east@westwickepartners.com orGregory Stapley Investor/Media RelationsThe Ensign Group, Inc. (949) 487-9500 ir@ensigngroup.net
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