News Release Details
The Ensign Group Reports Record Revenues and Adjusted Earnings of $0.70 per Share; Issues 2014 Guidance
Quarter Highlights Include:
-
Adjusted earnings per share climbed 25% sequentially to
$0.70 per share for the quarter, and grew 4.5% over the prior year quarter; - Same-store skilled mix days grew by 40 basis points to 28.0% of revenues in the quarter;
- Same-store occupancy grew by 41 basis points over the prior year quarter, to 81.3%;
-
Adjusted consolidated EBITDAR was
$40.5 million , an increase of 9.4% over the prior year quarter; -
Consolidated revenues were up 12.6% over the prior year quarter to a record
$237.0 million , and up 9.9% to a record$904.6 million in the year; and -
Same-store revenues increased by
$5.7 million or 3.4% over the prior year quarter.
Operating Results
Commenting on the operating results, Ensign's President and Chief Executive Officer
Diluted GAAP earnings per share were
During the quarter, the company's Board of Directors declared a quarterly cash dividend of
Ensign's growing portfolio consists of 119 facilities, nine home health and seven hospice companies, nine urgent care clinics, and an ancillary service provider, all in 11 states. Of the 119 post-acute and seniors housing facilities, 96 are Ensign-owned, and 75 of those are owned free of mortgage debt, with Ensign affiliates holding purchase options on two of Ensign's 23 leased facilities. Management reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care, assisted living, seniors housing, home health and hospice operations across
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 2014 annual guidance, projecting revenues of
CareTrust Update
Management also reported that the planned separation of Ensign's real estate business from its healthcare operations, which was announced on
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, and the entry into final settlement documents. 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) | ||||||||
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 |
|
— | — | (4) | — | 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 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 income (loss) 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 | — | — | (0.09) | (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 for the first six months of 2013 incurred 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 during the first quarter of 2013. This facility began operating at full capacity during the third quarter and therefore, third quarter results were not included in the three or nine month 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 |
|
||||||||
GAAP and ADJUSTED 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 | $ 210,505 | (79) | (9) | $ 210,426 | $ 823,155 | (79) | (9) | $ 823,076 |
Expense: | ||||||||
Cost of services (exclusive of facility rent, general and administrative and depreciation and amortization expense shown separately below) | 169,133 | (3,077) | (1)(2)(5)(9) | 166,056 | 656,424 | (6,641) | (1)(2)(3)(5)(9) | 649,783 |
Charges related to |
15,000 | (15,000) | (4) | -- | 15,000 | (15,000) | (4) | |
Facility rent—cost of services | 3,247 | (272) | (6)(9) | 2,975 | 13,281 | (860) | (6)(9) | 12,421 |
General and administrative expense | 7,886 | (503) | (7) | 7,383 | 31,819 | (1,945) | (7) | 29,874 |
Depreciation and amortization | 7,287 | (50) | (8)(9) | 7,237 | 28,358 | (501) | (8)(9) | 27,857 |
Total expenses | 202,553 | (18,902) | 183,651 | 744,882 | (24,947) | 719,935 | ||
Income from operations | 7,952 | 18,823 | 26,775 | 78,273 | 24,868 | 103,141 | ||
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 | 4,937 | 18,823 | 23,760 | 66,299 | 24,868 | 91,167 | ||
Tax impact of non-GAAP adjustments | 7,134 | (10) | 9,425 | (10) | ||||
Adjustments to reflect 38.9% tax rate | (149) | (11) | ||||||
Provision for income taxes | 2,020 | 6,985 | 9,005 | 25,134 | 9,425 | 34,559 | ||
Income from continuing operations | 2,917 | 11,838 | 14,755 | 41,165 | 15,443 | 56,608 | ||
Income (loss) from discontinued operations, net of income tax benefit | (1,252) | (1,252) | (1,357) | (1,357) | ||||
Net income | 1,665 | 11,838 | 13,503 | 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 | 11,612 | $ 13,549 | $ 40,591 | 15,089 | $ 55,680 | ||
Attributable to |
||||||||
Net income attributable to |
1,937 | 11,612 | 13,549 | 40,591 | 15,089 | 55,680 | ||
Loss from discontinued operations, net of income tax benefit | (1,252) | (1,252) | (1,357) | (1,357) | ||||
Income from continuing operations attributable to |
$ 3,189 | 11,612 | $ 14,801 | $ 41,948 | 15,089 | $ 57,037 | ||
Net income per share | ||||||||
Basic: | ||||||||
Net income attributable to |
0.09 | 0.63 | 1.89 | 2.60 | ||||
Loss from discontinued operations, net of income tax benefit | (0.06) | (0.06) | (0.07) | (0.06) | ||||
Income from continuing operations attributable to |
$ 0.15 | $ 0.69 | $ 1.96 | $ 2.66 | ||||
Diluted: | ||||||||
Net income attributable to |
0.09 | 0.61 | 1.85 | 2.54 | ||||
Loss from discontinued operations, net of income tax benefit | (0.05) | (0.06) | (0.06) | (0.06) | ||||
Income from continuing operations attributable to |
$ 0.14 | $ 0.67 | $ 1.91 | $ 2.60 | ||||
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 |
||||||||
(2) Represents costs of the decrease in the Company's effective tax rate |
||||||||
(3) Represents the settlement of a class action lawsuit regarding minimum staffing requirements in the state of |
||||||||
(4) Represents the Company's estimated liability related to its efforts to achieve a global, company-wide resolution of any claims connected to the (DOJ) investigation |
||||||||
(5) Represents impairment charges of noncontrolling interests. |
||||||||
(6) Represents straight-line rent amortization for a facility which the Company has begun construction activities, but had not commenced operations of a skilled nursing facility as of |
||||||||
(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 |
||||||||
(8) 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 |
||||||||
(9) Represents revenues and expenses incurred at newly opened urgent care centers | ||||||||
(10) Represents the tax impact of non-GAAP adjustments noted in (1) - (9) above in our effective tax rate of 37.9%. | ||||||||
(11) Represents an adjustment to the provision for income taxes to our effective tax rate of 37.9%. |
|
||||
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 |
|||
2013 | 2012 | 2013 | 2012 | |
Consolidated Statements of Income Data: | ||||
Net income | $ 13,349 | $ 1,665 | $ 23,854 | $ 39,808 |
Net (income) loss attributable to noncontrolling interests | 7 | 272 | 186 | 783 |
Loss (income) from discontinued operations | — | (80) | 1,804 | 1,357 |
Interest expense, net | 3,203 | 3,015 | 12,281 | 11,974 |
Provision for income taxes | 8,563 | 2,020 | 20,003 | 25,134 |
Depreciation and amortization | 8,711 | 7,287 | 33,909 | 28,358 |
EBITDA | $ 33,833 | $ 14,179 | $ 92,037 | $ 107,414 |
Facility rent—cost of services | 3,557 | 3,248 | 13,613 | 13,281 |
EBITDAR | $ 37,390 | $ 17,427 | $ 105,650 | $ 120,695 |
EBITDA | $ 33,833 | $ 14,179 | $ 92,037 | $ 107,414 |
Adjustments to EBITDA: | ||||
Charge related to the |
— | 15,000 | 33,000 | 15,000 |
Expenses related to the Spin-Off(b) | 2,192 | — | 4,050 | — |
Legal costs(c) | (13) | 503 | 1,098 | 1,945 |
Settlement of class action lawsuit(d) | — | — | 1,524 | 2,596 |
Impairment of goodwill and other indefinite-lived intangibles | 490 | 2,225 | 490 | 2,225 |
Urgent care center losses(e) | 406 | 240 | 1,844 | 546 |
Losses at skilled nursing facility not at full operation(f) | — | — | 1,256 | — |
Acquisition related costs(g) | 10 | 20 | 288 | 250 |
Costs incurred to recognize income tax credits(h) | 42 | 153 | 145 | 591 |
Rent related to non-core business items above(i) | 322 | 272 | 1,009 | 860 |
Adjusted EBITDA | $ 37,282 | $ 32,592 | $ 136,741 | $ 131,427 |
Facility rent—cost of services | 3,557 | 3,248 | 13,613 | 13,281 |
Less: rent related to non-core business items above(i) | (322) | (272) | (1,009) | (860) |
Adjusted EBITDAR | $ 40,517 | $ 35,568 | $ 149,345 | $ 143,848 |
(a) Charges related to our efforts to achieve a global, company-wide, resolution of any claims connected to the |
||||
(b) 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). | ||||
(c) Legal costs incurred in connection with the DOJ settlement. | ||||
(d) Settlement of a class action lawsuit regarding minimum staffing requirements in the state of |
||||
(e) Losses incurred at newly opened urgent care centers, excluding rent, depreciation, interest and income taxes. | ||||
(f) Losses incurred through the second quarter at one newly constructed skilled nursing facility which began operations during the first quarter of 2013, excluding rent, depreciation, interest and income taxes. The facility began running at full capacity during the third quarter of 2013, and therefore, results for the third and fourth quarter were not included in the results above. | ||||
(g) Costs incurred to acquire operations which are not capitalizable. | ||||
(h) Costs incurred to recognize income tax credits which contributed to a decrease in effective tax rate. | ||||
(i) Rent related to newly opened urgent care centers and one newly constructed skilled nursing facility which began operations during the first quarter of 2013, not included in items (e) and (f) above. |
|
|||
CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
|
|
||
2013 | 2012 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 65,755 | $ 40,685 | |
Accounts receivable — less allowance for doubtful accounts of |
111,370 | 94,187 | |
Investments — current | 5,511 | 5,195 | |
Prepaid income taxes | 9,915 | 3,787 | |
Prepaid expenses and other current assets | 9,213 | 8,606 | |
Deferred tax asset — current | 9,232 | 14,871 | |
Assets held for sale — current | — | 268 | |
Total current assets | 210,996 | 167,599 | |
Property and equipment, net | 479,770 | 447,855 | |
Insurance subsidiary deposits and investments | 16,888 | 17,315 | |
Escrow deposits | 1,000 | 4,635 | |
Deferred tax asset | 4,464 | 2,234 | |
Restricted and other assets | 9,804 | 8,640 | |
Intangible assets, net | 5,718 | 6,115 | |
Long-term assets held for sale | — | 11,324 | |
Goodwill | 23,935 | 21,557 | |
Other indefinite-lived intangibles | 7,740 | 3,588 | |
Total assets | $ 760,315 | $ 690,862 | |
Liabilities and equity | |||
Current liabilities: | |||
Accounts payable | $ 23,793 | $ 26,069 | |
Accrued charge related to |
— | 15,000 | |
Accrued wages and related liabilities | 40,093 | 35,847 | |
Accrued self-insurance liabilities — current | 15,461 | 16,034 | |
Liabilities held for sale — current | — | 339 | |
Other accrued liabilities | 25,698 | 20,871 | |
Current maturities of long-term debt | 7,411 | 7,187 | |
Total current liabilities | 112,456 | 121,347 | |
Long-term debt — less current maturities | 251,895 | 200,505 | |
Accrued self-insurance liabilities — less current portion | 33,642 | 34,849 | |
Fair value of interest rate swap | 1,828 | 2,866 | |
Long-term liabilities held for sale | — | 130 | |
Deferred rent and other long-term liabilities | 3,237 | 3,281 | |
Total equity | 357,257 | 327,884 | |
Total liabilities and equity | $ 760,315 | $ 690,862 | |
|
|||
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 December 31, |
|||
2013 | 2012 | ||
Net cash provided by operating activities | $ 37,424 | $ 82,050 | |
Net cash used in investing activities | (65,235) | (84,496) | |
Net cash provided by financing activities | 52,881 | 13,547 | |
Net increase (decrease) in cash and cash equivalents | 25,070 | 11,101 | |
Cash and cash equivalents beginning of period | 40,685 | 29,584 | |
Cash and cash equivalents end of period | $ 65,755 | $ 40,685 |
|
||||
SELECT PERFORMANCE INDICATORS | ||||
(Quarterly Information Unaudited) | ||||
The following tables summarize our selected performance indicators, along with other statistics, for each of the dates or periods indicated: | ||||
Three Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Total Facility Results: | ||||
Revenue | $ 237,008 | $ 210,505 | $ 26,503 | 12.6% |
Number of facilities at period end | 119 | 108 | 11 | 10.2% |
Actual patient days | 947,138 | 872,634 | 74,504 | 8.5% |
Occupancy percentage — Operational beds | 78.0% | 78.3% | (0.3)% | |
Skilled mix by nursing days | 26.0% | 25.9% | 0.1% | |
Skilled mix by nursing revenue | 49.1% | 49.7% | (0.6)% | |
Three Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Same Facility Results(1): | ||||
Revenue | $ 174,913 | $ 169,214 | $ 5,699 | 3.4% |
Number of facilities at period end | 77 | 77 | — | —% |
Actual patient days | 664,098 | 661,257 | 2,841 | 0.4% |
Occupancy percentage — Operational beds | 81.3% | 80.9% | 0.4% | |
Skilled mix by nursing days | 28.0% | 27.6% | 0.4% | |
Skilled mix by nursing revenue | 50.9% | 52.1% | (1.2)% | |
Three Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Transitioning Facility Results(2): | ||||
Revenue | $ 36,377 | $ 34,869 | $ 1,508 | 4.3% |
Number of facilities at period end | 25 | 25 | — | —% |
Actual patient days | 183,922 | 182,738 | 1,184 | 0.6% |
Occupancy percentage — Operational beds | 74.4% | 73.9% | 0.5% | |
Skilled mix by nursing days | 19.5% | 18.8% | 0.7% | |
Skilled mix by nursing revenue | 41.8% | 38.8% | 3.0% | |
Three Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Recently Acquired Facility Results(3): | ||||
Revenue | $ 25,718 | $ 6,422 | $ 19,296 | NM |
Number of facilities at period end | 17 | 6 | 11 | NM |
Actual patient days | 99,118 | 28,639 | 70,479 | NM |
Occupancy percentage — Operational beds | 65.7% | 56.8% | NM | |
Skilled mix by nursing days | 19.1% | 14.0% | NM | |
Skilled mix by nursing revenue | 40.9% | 23.5% | NM | |
_______________________ | ||||
(1) Same Facility results represent all facilities purchased prior to January 1, 2010. | ||||
(2) Transitioning Facility results represents all facilities purchased from January 1, 2010 to December 31, 2011. | ||||
(3) Recently Acquired Facility (or "Acquisitions") results represent all facilities purchased on or subsequent to January 1, 2012. |
|
||||
SELECT PERFORMANCE INDICATORS | ||||
(Quarterly Information Unaudited) | ||||
The following tables summarize our selected performance indicators, along with other statistics, for each of the dates or periods indicated: | ||||
Twelve Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Total Facility Results: | ||||
Revenue | $ 904,556 | $ 823,155 | $ 81,401 | 9.9% |
Number of facilities at period end | 119 | 108 | 11 | 10.2% |
Actual patient days | 3,648,651 | 3,452,598 | 196,053 | 5.7% |
Occupancy percentage — Operational beds | 77.5% | 79.0% | (1.5)% | |
Skilled mix by nursing days | 26.4% | 25.9% | 0.5% | |
Skilled mix by nursing revenue | 50.0% | 50.0% | —% | |
Twelve Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Same Facility Results(1): | ||||
Revenue | $ 679,610 | $ 670,747 | $ 8,863 | 1.3% |
Number of facilities at period end | 77 | 77 | — | —% |
Actual patient days | 2,618,541 | 2,638,029 | (19,488) | (0.7)% |
Occupancy percentage — Operational beds | 80.8% | 81.2% | (0.4)% | |
Skilled mix by nursing days | 28.3% | 27.5% | 0.8% | |
Skilled mix by nursing revenue | 52.1% | 52.0% | 0.1% | |
Twelve Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Transitioning Facility Results(2): | ||||
Revenue | $ 141,180 | $ 135,639 | $ 5,541 | 4.1% |
Number of facilities at period end | 25 | 25 | — | —% |
Actual patient days | 724,243 | 736,995 | (12,752) | (1.7)% |
Occupancy percentage — Operational beds | 73.8% | 74.9% | (1.1)% | |
Skilled mix by nursing days | 20.2% | 18.2% | 2.0% | |
Skilled mix by nursing revenue | 42.0% | 39.2% | 2.8% | |
Twelve Months Ended |
||||
2013 | 2012 | |||
(Dollars in thousands) | Change | % Change | ||
Recently Acquired Facility Results(3): | ||||
Revenue | $ 83,766 | $ 16,769 | $ 66,997 | NM |
Number of facilities at period end | 17 | 6 | 11 | NM |
Actual patient days | 305,867 | 77,574 | 228,293 | NM |
Occupancy percentage — Operational beds | 62.7% | 55.5% | NM | |
Skilled mix by nursing days | 18.0% | 11.2% | NM | |
Skilled mix by nursing revenue | 38.1% | 20.9% | NM | |
_______________________ | ||||
(1) Same Facility results represent all facilities purchased prior to January 1, 2010. | ||||
(2) Transitioning Facility results represents all facilities purchased from January 1, 2010 to December 31, 2011. | ||||
(3) Recently Acquired Facility (or "Acquisitions") results represent all facilities purchased on or subsequent to January 1, 2012. |
|
|||||||||
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 | % | |||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | Change | |
Skilled Nursing Average Daily Revenue Rates: | |||||||||
|
|
|
|
|
|
|
|
|
0.8% |
Managed care | 404.54 | 399.71 | 397.83 | 389.83 | 461.24 | 264.91 | 408.26 | 399.25 | 2.3% |
Other skilled | 432.46 | 451.81 | 723.71 | 439.00 | 253.00 | — | 439.21 | 451.60 | (2.7)% |
Total skilled revenue | 494.98 | 494.30 | 478.68 | 461.54 | 465.23 | 425.53 | 491.43 | 489.90 | 0.3% |
|
184.47 | 170.42 | 159.06 | 169.56 | 159.31 | 235.97 | 179.18 | 172.38 | 3.9% |
Private and other payors | 190.34 | 185.72 | 165.11 | 167.11 | 155.97 | 170.02 | 179.57 | 179.55 | 0.0% |
Total skilled nursing revenue |
|
|
|
|
|
|
|
|
1.9% |
Twelve Months Ended |
|||||||||
Same Facility | Transitioning | Acquisitions | Total | % | |||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | Change | |
Skilled Nursing Average Daily Revenue Rates: | |||||||||
|
|
|
|
|
|
|
|
|
0.5% |
Managed care | 398.86 | 391.08 | 378.70 | 395.32 | 458.55 | 427.52 | 400.44 | 391.32 | 2.3% |
Other skilled | 455.88 | 457.58 | 708.32 | 529.85 | 253.00 | — | 460.76 | 458.67 | 0.5% |
Total skilled revenue | 492.13 | 490.63 | 462.86 | 460.25 | 460.78 | 418.88 | 487.53 | 486.98 | 0.1% |
|
176.97 | 168.85 | 158.45 | 155.16 | 167.26 | 204.57 | 174.04 | 167.78 | 3.7% |
Private and other payors | 188.44 | 189.62 | 167.45 | 165.93 | 154.87 | 168.26 | 179.40 | 181.52 | (1.2)% |
Total skilled nursing revenue |
|
|
|
|
|
|
|
|
2.2% |
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 | |||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
Percentage of Skilled Nursing Revenue: | ||||||||
|
30.5% | 31.9% | 34.4% | 33.4% | 25.6% | 23.5% | 30.6% | 31.8% |
Managed care | 14.8 | 14.7 | 5.8 | 4.8 | 15.2 | — | 13.8 | 13.1 |
Other skilled | 5.6 | 5.5 | 1.6 | 0.6 | 0.1 | — | 4.7 | 4.8 |
Skilled mix | 50.9 | 52.1 | 41.8 | 38.8 | 40.9 | 23.5 | 49.1 | 49.7 |
Private and other payors | 7.6 | 7.6 | 21.0 | 21.3 | 12.4 | 8.4 | 9.5 | 9.3 |
Quality mix | 58.5 | 59.7 | 62.8 | 60.1 | 53.3 | 31.9 | 58.6 | 59.0 |
|
41.5 | 40.3 | 37.2 | 39.9 | 46.7 | 68.1 | 41.4 | 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 | |||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
Percentage of Skilled Nursing Days: | ||||||||
|
14.6% | 14.8% | 15.8% | 15.7% | 11.9% | 14.0% | 14.4% | 14.8% |
Managed care | 9.9 | 9.6 | 3.2 | 2.8 | 7.2 | — | 8.8 | 8.4 |
Other skilled | 3.5 | 3.2 | 0.5 | 0.3 | — | — | 2.8 | 2.7 |
Skilled mix | 28.0 | 27.6 | 19.5 | 18.8 | 19.1 | 14.0 | 26.0 | 25.9 |
Private and other payors | 10.8 | 10.6 | 28.4 | 28.5 | 17.2 | 12.7 | 13.8 | 13.3 |
Quality mix | 38.8 | 38.2 | 47.9 | 47.3 | 36.3 | 26.7 | 39.8 | 39.2 |
|
61.2 | 61.8 | 52.1 | 52.7 | 63.7 | 73.3 | 60.2 | 60.8 |
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 year ended |
||||||||
Twelve Months Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
Percentage of Skilled Nursing Revenue: | ||||||||
|
31.3% | 33.0% | 35.1% | 33.3% | 26.6% | 20.6% | 31.4% | 32.9% |
Managed care | 15.2 | 13.7 | 5.7 | 5.3 | 11.5 | 0.3 | 13.9 | 12.4 |
Other skilled | 5.6 | 5.3 | 1.2 | 0.6 | — | — | 4.7 | 4.7 |
Skilled mix | 52.1 | 52.0 | 42.0 | 39.2 | 38.1 | 20.9 | 50.0 | 50.0 |
Private and other payors | 7.5 | 7.6 | 21.4 | 22.6 | 12.1 | 11.2 | 9.5 | 9.5 |
Quality mix | 59.6 | 59.6 | 63.4 | 61.8 | 50.2 | 32.1 | 59.5 | 59.5 |
|
40.4 | 40.4 | 36.6 | 38.2 | 49.8 | 67.9 | 40.5 | 40.5 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Twelve Months Ended |
||||||||
Same Facility | Transitioning | Acquisitions | Total | |||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
Percentage of Skilled Nursing Days: | ||||||||
|
14.8% | 15.4% | 16.5% | 15.1% | 12.6% | 11.0% | 14.8% | 15.3% |
Managed care | 10.2 | 9.1 | 3.3 | 2.8 | 5.4 | 0.2 | 8.9 | 8.0 |
Other skilled | 3.3 | 3.0 | 0.4 | 0.3 | — | — | 2.7 | 2.6 |
Skilled mix | 28.3 | 27.5 | 20.2 | 18.2 | 18.0 | 11.2 | 26.4 | 25.9 |
Private and other payors | 10.7 | 10.4 | 28.4 | 29.2 | 17.0 | 14.7 | 13.7 | 13.2 |
Quality mix | 39.0 | 37.9 | 48.6 | 47.4 | 35.0 | 25.9 | 40.1 | 39.1 |
|
61.0 | 62.1 | 51.4 | 52.6 | 65.0 | 74.1 | 59.9 | 60.9 |
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 |
Twelve Months Ended |
|||||||
2013 | 2012 | 2013 | 2012 | |||||
$ | % | $ | % | $ | % | $ | % | |
Revenue: | (Dollars in thousands) | |||||||
|
$ 86,502 | 36.5% | $ 78,112 | 37.1% | $ 323,803 | 35.8% | $ 302,046 | 36.7% |
|
74,703 | 31.5% | 68,863 | 32.7% | 292,917 | 32.4% | 278,578 | 33.8% |
Medicaid—skilled | 9,469 | 4.0% | 8,690 | 4.1% | 36,085 | 4.0% | 33,031 | 4.0% |
Total | 170,674 | 72.0% | 155,665 | 73.9% | 652,805 | 72.2% | 613,655 | 74.5% |
Managed Care | 30,722 | 13.0% | 26,668 | 12.7% | 118,168 | 13.1% | 98,655 | 12.0% |
Private and Other(1) | 35,612 | 15.0% | 28,172 | 13.4% | 133,583 | 14.7% | 110,845 | 13.5% |
Total revenue |
|
100.0% |
|
100.0% | $ 904,556 | 100.0% | $ 823,155 | 100.0% |
(1) Private and other payors includes revenue from urgent care centers and other ancillary 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. 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 Report on Form 10-K filed today with the
CONTACT: Investor/Media Relations,Source:The Ensign Group, Inc. (949) 487-9500, ir@ensigngroup.net
News Provided by Acquire Media