News Release Details
The Ensign Group Reports Second Quarter 2012 Adjusted Earnings of $0.67 per Share
Financial highlights for the Second Quarter include:
-
Adjusted net income climbed 9.8% to
$14.6 million , while adjusted earnings per share exceeded the prior year quarter at a record$0.67 per share, compared to$0.63 per share; -
Same-store occupancy grew by 114 basis points over the prior year quarter to 83.1%, with same-store
Medicare days increasing by 3.9% over the prior year quarter; - Same-store skilled mix days grew 74 basis points to 30.1%, with same-store skilled revenue reaching 55.0%, a 47 basis-point increase sequentially and just 134 basis points shy of the all-time high set in the second quarter of 2011;
-
Consolidated EBITDAR was
$33.7 million , an increase of 2.0% over the prior year quarter, and the same-store EBITDAR margin grew to 17.0%, the second consecutive sequential margin increase since theOctober 1, 2011 implementation of an 11.1%Medicare cut and changes to therapy regulations which increased therapy costs; and -
Consolidated revenues were a record
$204.3 million , up 9.7%.
Operating Results
Ensign posted record revenues and earnings per share for the quarter, despite the effects of last October's unprecedented 11.1% reduction in
Alluding to intensive and ongoing efforts to mitigate the effects of the October changes, Ensign's President and Chief Executive Officer
As one evidence of the results being produced, he remarked that, "For our same-store skilled revenue mix to be back in the mid-50 percent range so quickly is remarkable, especially in light of the fact that our average daily
In other results, Chief Financial Officer
She also noted that increasing revenue in transitioning facilities, as well as substantial growth in the recently acquired facilities, helped the company reach record consolidated revenues of
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-Q, which was filed with the
2012 Guidance Increased
Management increased previously-announced 2012 annual earnings guidance, projecting adjusted net income of
Quarter Highlights
Dividend Declared
During the quarter, the company's Board of Directors declared a quarterly cash dividend of
Growth by Acquisition
Also during the quarter and since, the company announced the acquisition of one home health and hospice business, a skilled nursing and assisted living campus and two skilled nursing facilities in three separate transactions. The business and facilities were purchased with cash, and include:
-
In
Utah ,Zion's Way Home Health & Hospice , a thriving home care provider with multiple agencies inSouthern Utah andPage, Arizona . -
In
Idaho ,Discovery Care Center , a 45-bed skilled nursing and 24-unit assisted living campus in Salmon. -
Also in
Idaho ,Owyhee Health & Rehabilitation Center , a 49-bed skilled nursing facility located inHomedale , a suburb of the growingBoise market. -
In
Southern California , Ensign exercised a purchase option to acquire the underlying real estate of Palomar Vista Healthcare Center, a 74-bed skilled nursing facility located inEscondido .An Ensign subsidiary has operated Palomar Vista since 2003 under a lease from the family that founded the facility.
The acquisitions brought Ensign's growing portfolio to 107 facilities, 83 of which are Ensign-owned, with Ensign affiliates holding purchase options on four of Ensign's 24 leased facilities, as well as four hospice companies and six 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
Class Action Settlement
In
Storm Update
In
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 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) |
||||||
Three Months Ended |
Six Months Ended |
|||||
As Reported |
Non- GAAP Adj. |
As Adjusted | As Reported |
Non- GAAP Adj. |
As Adjusted | |
Revenue |
|
|
|
|
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Expense: | ||||||
Cost of services (exclusive of facility rent, general and administrative and depreciation and amortization expense shown separately below) | 162,599 | (2,642)(1)(3) | 159,957 | 323,428 | (2,957)(1)(2)(3) | 320,471 |
Facility rent—cost of services | 3,368 | (121)(4) | 3,247 | 6,689 | (292)(4) | 6,397 |
General and administrative expense | 8,137 | (593)(5) | 7,544 | 15,834 | (848)(5) | 14,986 |
Depreciation and amortization | 7,042 | (123)(6) | 6,919 | 13,966 | (307)(6) | 13,659 |
Total expenses | 181,146 | (3,479) | 177,667 | 359,917 | (4,404) | 355,513 |
Income from operations | 23,162 | 3,479 | 26,641 | 46,551 | 4,404 | 50,955 |
Other income (expense): | ||||||
Interest expense | (3,114) | (3,114) | (6,039) | (6,039) | ||
Interest income | 52 | 52 | 103 | 103 | ||
Other expense, net | (3,062) | (3,062) | (5,936) | (5,936) | ||
Income before provision for income taxes | 20,100 | 3,479 | 23,579 | 40,615 | 4,404 | 45,019 |
Tax Effect on Non-GAAP Adjustments | 1,357(7) | 1,718(7) | ||||
Tax True-up for Effective Tax Rate | 18(8) | 331(8) | ||||
Provision for income taxes | 7,821 | 1,375 | 9,196 | 15,508 | 2,049 | 17,557 |
Net income |
|
2,104 |
|
|
2,355 |
|
Less: net loss attributable to noncontrolling interests | (177) | (177) | (253) | (253) | ||
Net income attributable to |
|
2,104 |
|
|
2,355 |
|
Net income per share: | ||||||
Basic |
|
|
|
|
||
Diluted |
|
|
|
|
||
Weighted average common shares outstanding: | ||||||
Basic | 21,368 | 21,368 | 21,309 | 21,309 | ||
Diluted | 21,886 | 21,886 | 21,841 | 21,841 | ||
(1) Represents acquisition-related costs of (2) Represents costs of (3) Represents the settlement of a class action lawsuit regarding minimum staffing requirements in the state of (4) 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 (5) 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 (6) 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. (7) Represents the tax impact of non-GAAP adjustments noted in (1) — (6) at a normalized rate of 39.0%. (8) In FY 2011 and 2010, the Company's effective tax rate was 38.3% and 39.3%, respectively. Therefore, this represents an adjustment to the provision for income taxes to normalize our current quarter effective rate to 39.0%. |
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDAR (in thousands) |
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The table below reconciles net income to EBITDA and EBITDAR for the periods presented: | ||||
Three Months Ended |
Six Months Ended |
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2012 | 2011 | 2012 | 2011 | |
Consolidated Statements of Income Data: | ||||
Net income |
|
|
|
|
Net loss attributable to noncontrolling interests | 177 | — | 253 | — |
Interest expense, net | 3,062 | 2,664 | 5,936 | 5,336 |
Provision for income taxes | 7,821 | 8,478 | 15,508 | 16,772 |
Depreciation and amortization | 7,042 | 5,546 | 13,966 | 10,605 |
EBITDA |
|
|
|
|
Facility rent—cost of services | 3,368 | 3,433 | 6,689 | 7,049 |
EBITDAR |
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||
|
|
|
2012 | 2011 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents |
|
|
Accounts receivable — less allowance for doubtful accounts of |
96,452 | 86,311 |
Investments — current | 4,737 | — |
Prepaid income taxes | 2,616 | 5,882 |
Prepaid expenses and other current assets | 6,912 | 7,667 |
Deferred tax asset — current | 10,620 | 11,195 |
Total current assets | 154,122 | 140,639 |
Property and equipment, net | 420,028 | 403,862 |
Insurance subsidiary deposits and investments | 17,840 | 16,752 |
Escrow deposits | 210 | 175 |
Deferred tax asset | 4,913 | 3,514 |
Restricted and other assets | 11,952 | 10,418 |
Intangible assets, net | 5,078 | 2,321 |
Goodwill | 22,180 | 17,177 |
Other indefinite-lived intangibles | 10,598 | 1,481 |
Total assets |
|
|
Liabilities and equity | ||
Current liabilities: | ||
Accounts payable |
|
|
Accrued wages and related liabilities | 33,926 | 41,958 |
Accrued self-insurance liabilities — current | 16,259 | 12,369 |
Other accrued liabilities | 18,534 | 18,577 |
Current maturities of long-term debt | 7,080 | 6,314 |
Total current liabilities | 96,876 | 100,387 |
Long-term debt — less current maturities | 194,069 | 181,556 |
Accrued self-insurance liabilities — less current portion | 33,492 | 31,904 |
Fair value of interest rate swap | 2,723 | 2,143 |
Deferred rent and other long-term liabilities | 3,312 | 2,864 |
Total liabilities | 330,472 | 318,854 |
Temporary equity — redeemable noncontrolling interest | 11,506 | — |
Total equity | 304,943 | 277,485 |
Total liabilities and equity |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
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The following table presents selected data from our condensed consolidated statements of cash flows for the periods presented: |
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Six Months Ended | ||
|
||
2012 | 2011 | |
Net cash provided by operating activities |
|
|
Net cash used in investing activities | (35,830) | (58,245) |
Net cash provided by (used in) financing activities | 13,971 | (3,178) |
Net increase (decrease) in cash and cash equivalents | 3,201 | (33,977) |
Cash and cash equivalents beginning of period | 29,584 | 72,088 |
Cash and cash equivalents end of period |
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SELECT PERFORMANCE INDICATORS |
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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 | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Total Facility Results: | ||||
Revenue |
|
|
|
9.7% |
Number of facilities at period end | 105 | 87 | 18 | 20.7% |
Actual patient days | 855,782 | 746,995 | 108,787 | 14.6% |
Occupancy percentage — Operational beds | 79.2% | 79.2% | —% | |
Skilled mix by nursing days | 26.1% | 26.3% | (0.2)% | |
Skilled mix by nursing revenue | 50.4% | 52.7% | (2.3)% | |
Three Months Ended | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Same Facility Results(1): | ||||
Revenue |
|
|
|
(1.3)% |
Number of facilities at period end | 62 | 62 | — | —% |
Actual patient days | 537,061 | 531,330 | 5,731 | 1.1% |
Occupancy percentage — Operational beds | 83.1% | 81.9% | 1.2% | |
Skilled mix by nursing days | 30.1% | 29.4% | 0.7% | |
Skilled mix by nursing revenue | 55.0% | 56.4% | (1.4)% | |
Three Months Ended | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Transitioning Facility Results(2): | ||||
Revenue |
|
|
|
1.8% |
Number of facilities at period end | 20 | 20 | — | —% |
Actual patient days | 163,215 | 160,262 | 2,953 | 1.8% |
Occupancy percentage — Operational beds | 74.3% | 72.9% | 1.4% | |
Skilled mix by nursing days | 16.8% | 16.4% | 0.4% | |
Skilled mix by nursing revenue | 36.7% | 38.1% | (1.4)% | |
Three Months Ended | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Recently Acquired Facility Results(3): | ||||
Revenue |
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|
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NM |
Number of facilities at period end | 23 | 5 | 18 | NM |
Actual patient days | 155,506 | 55,403 | 100,103 | NM |
Occupancy percentage — Operational beds | 72.7% | 74.6% | NM | |
Skilled mix by nursing days | 17.5% | 17.4% | NM | |
Skilled mix by nursing revenue | 38.6% | 39.1% | 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. |
Six Months Ended | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Total Facility Results: | ||||
Revenue |
|
|
|
10.1% |
Number of facilities at period end | 105 | 87 | 18 | 20.7% |
Actual patient days | 1,707,293 | 1,478,480 | 228,813 | 15.5% |
Occupancy percentage — Operational beds | 79.5% | 79.9% | (0.4)% | |
Skilled mix by nursing days | 26.2% | 26.3% | (0.1)% | |
Skilled mix by nursing revenue | 50.5% | 52.8% | (2.3)% | |
Six Months Ended | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Same Facility Results(1): | ||||
Revenue |
|
|
|
(1.4)% |
Number of facilities at period end | 62 | 62 | — | —% |
Actual patient days | 1,077,326 | 1,064,867 | 12,459 | 1.2% |
Occupancy percentage — Operational beds | 83.3% | 82.5% | 0.8% | |
Skilled mix by nursing days | 30.0% | 29.4% | 0.6% | |
Skilled mix by nursing revenue | 54.8% | 56.5% | (1.7)% | |
Six Months Ended | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Transitioning Facility Results(2): | ||||
Revenue |
|
|
|
3.1% |
Number of facilities at period end | 20 | 20 | — | —% |
Actual patient days | 325,198 | 321,537 | 3,661 | 1.1% |
Occupancy percentage — Operational beds | 74.0% | 73.6% | 0.4% | |
Skilled mix by nursing days | 17.3% | 15.9% | 1.4% | |
Skilled mix by nursing revenue | 37.4% | 37.2% | 0.2% | |
Six Months Ended | ||||
|
||||
2012 | 2011 | |||
(Dollars in thousands) | Change | % Change | ||
Recently Acquired Facility Results(3): | ||||
Revenue |
|
|
|
NM |
Number of facilities at period end | 23 | 5 | 18 | NM |
Actual patient days | 304,769 | 92,076 | 212,693 | NM |
Occupancy percentage — Operational beds | 73.5% | 75.0% | NM | |
Skilled mix by nursing days | 17.7% | 16.6% | NM | |
Skilled mix by nursing revenue | 39.5% | 38.1% | 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: |
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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: | |||||||||
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(12.9)% |
Managed care | 370.28 | 368.52 | 407.56 | 432.48 | 382.55 | 497.78 | 374.15 | 374.75 | (0.2)% |
Other skilled | 580.47 | 518.68 | 586.21 | 477.75 | — | — | 581.21 | 515.61 | 12.7% |
Total skilled revenue | 491.21 | 529.10 | 471.46 | 514.41 | 456.98 | 476.15 | 486.00 | 526.05 | (7.6)% |
|
169.38 | 167.55 | 162.64 | 162.23 | 146.28 | 149.38 | 165.63 | 165.84 | (0.1)% |
Private and other payors | 195.86 | 186.24 | 174.28 | 173.53 | 165.59 | 166.05 | 182.28 | 181.33 | 0.5% |
Total skilled nursing revenue |
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|
|
|
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(4.2)% |
Six 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: | |||||||||
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|
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|
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(12.5)% |
Managed care | 367.79 | 368.00 | 409.57 | 429.41 | 409.72 | 488.74 | 373.31 | 373.48 | —% |
Other skilled | 574.56 | 526.69 | 577.75 | 495.29 | — | — | 574.97 | 524.57 | 9.6% |
Total skilled revenue | 489.85 | 528.52 | 471.17 | 508.57 | 464.02 | 465.40 | 485.44 | 524.83 | (7.5)% |
|
169.64 | 167.07 | 163.28 | 160.21 | 145.22 | 141.24 | 165.96 | 164.85 | 0.7% |
Private and other payors | 197.77 | 186.58 | 173.22 | 172.03 | 164.11 | 163.55 | 182.89 | 181.14 | 1.0% |
Total skilled nursing revenue |
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(3.7)% |
The following tables set forth our percentage of skilled nursing patient revenue and days by payor source for the three and six months ended
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: | ||||||||
|
35.3% | 38.2% | 25.8% | 29.1% | 33.1% | 36.0% | 33.6% | 36.7% |
Managed care | 15.4 | 15.1 | 8.0 | 7.9 | 5.5 | 3.1 | 13.1 | 13.5 |
Other skilled | 4.3 | 3.1 | 2.9 | 1.1 | — | — | 3.7 | 2.5 |
Skilled mix | 55.0 | 56.4 | 36.7 | 38.1 | 38.6 | 39.1 | 50.4 | 52.7 |
Private and other payors | 7.0 | 7.0 | 11.6 | 10.6 | 26.5 | 26.6 | 9.7 | 8.2 |
Quality mix | 62.0 | 63.4 | 48.3 | 48.7 | 65.1 | 65.7 | 60.1 | 60.9 |
|
38.0 | 36.6 | 51.7 | 51.3 | 34.9 | 34.3 | 39.9 | 39.1 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Three Months Ended |
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Same Facility | Transitioning | Acquisitions | Total | |||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
Percentage of Skilled Nursing Days: | ||||||||
|
17.0% | 16.5% | 11.5% | 11.9% | 14.5% | 16.1% | 15.7% | 15.5% |
Managed care | 11.1 | 11.2 | 4.2 | 4.0 | 3.0 | 1.3 | 8.8 | 9.4 |
Other skilled | 2.0 | 1.7 | 1.1 | 0.5 | — | — | 1.6 | 1.4 |
Skilled mix | 30.1 | 29.4 | 16.8 | 16.4 | 17.5 | 17.4 | 26.1 | 26.3 |
Private and other payors | 9.5 | 10.4 | 14.5 | 13.5 | 33.1 | 34.0 | 13.3 | 11.8 |
Quality mix | 39.6 | 39.8 | 31.3 | 29.9 | 50.6 | 51.4 | 39.4 | 38.1 |
|
60.4 | 60.2 | 68.7 | 70.1 | 49.4 | 48.6 | 60.6 | 61.9 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Six Months Ended |
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Same Facility | Transitioning | Acquisitions | Total | |||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
Percentage of Skilled Nursing Revenue: | ||||||||
|
35.4% | 38.2% | 26.4% | 28.8% | 33.9% | 34.9% | 33.8% | 36.6% |
Managed care | 15.2 | 15.1 | 8.3 | 7.4 | 5.6 | 3.2 | 13.2 | 13.5 |
Other skilled | 4.2 | 3.2 | 2.7 | 1.0 | — | — | 3.5 | 2.7 |
Skilled mix | 54.8 | 56.5 | 37.4 | 37.2 | 39.5 | 38.1 | 50.5 | 52.8 |
Private and other payors | 7.1 | 7.1 | 10.6 | 10.7 | 26.7 | 28.1 | 9.5 | 8.2 |
Quality mix | 61.9 | 63.6 | 48.0 | 47.9 | 66.2 | 66.2 | 60.0 | 61.0 |
|
38.1 | 36.4 | 52 | 52.1 | 33.8 | 33.8 | 40.0 | 39.0 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Six Months Ended |
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Same Facility | Transitioning | Acquisitions | Total | |||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
Percentage of Skilled Nursing Days: | ||||||||
|
17.0% | 16.5% | 11.9% | 11.7% | 14.9% | 15.3% | 15.8% | 15.5% |
Managed care | 11.1 | 11.3 | 4.4 | 3.7 | 2.8 | 1.3 | 8.9 | 9.4 |
Other skilled | 1.9 | 1.7 | 1.0 | 0.5 | — | — | 1.5 | 1.4 |
Skilled mix | 30.0 | 29.5 | 17.3 | 15.9 | 17.7 | 16.6 | 26.2 | 26.3 |
Private and other payors | 9.7 | 10.5 | 13.3 | 13.5 | 33.8 | 34.9 | 13.2 | 11.9 |
Quality mix | 39.7 | 40.0 | 30.6 | 29.4 | 51.5 | 51.5 | 39.4 | 38.2 |
|
60.3 | 60.0 | 69.4 | 70.6 | 48.5 | 48.5 | 60.6 | 61.8 |
Total skilled nursing | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
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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 | Six Months Ended | |||||||
|
|
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2012 | 2011 | 2012 | 2011 | |||||
$ | % | $ | % | $ | % | $ | % | |
Revenue: | (Dollars in thousands) | |||||||
|
$ 73,641 | 36.0% | $ 67,080 | 36.0% |
|
36.2% | $ 133,306 | 36.1% |
|
70,396 | 34.5 | 68,964 | 37 | 140,190 | 34.5 | 136,605 | 37.0 |
Medicaid—skilled | 6,413 | 3.1 | 4,296 | 2.3 | 12,274 | 3.0 | 8,706 | 2.4 |
Total | 150,450 | 73.6 | 140,340 | 75.3 | 299,688 | 73.7 | 278,617 | 75.5 |
Managed Care | 25,730 | 12.6 | 24,175 | 13 | 51,422 | 12.7 | 48,317 | 13.1 |
Private and Other | 28,128 | 13.8 | 21,811 | 11.7 | 55,358 | 13.6 | 42,335 | 11.4 |
Total revenue | $ 204,308 | 100.0% | $ 186,326 | 100.0% |
|
100.0% | $ 369,269 | 100.0% |
Discussion of Non-GAAP Financial Measures
EBITDA consists of net income, adjusted for net losses attributable to noncontrolling interest, 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-Q filed today with the
CONTACT:Source:Robert East ,Westwicke Partners LLC , (443) 213-0500, bob.east@westwickepartners.com, orGregory Stapley , Investor/Media Relations,The Ensign Group, Inc. , (949) 487-9500, ir@ensigngroup.net
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