Delaware | 001-33757 | 33-0861263 | ||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||
27101 Puerta Real, Suite 450, Mission Viejo, CA | 92691 | |||||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press Release of the Company dated May 4, 2015 |
Dated: May 10, 2015 | THE ENSIGN GROUP, INC. | |||
By: | /s/ Suzanne D. Snapper | |||
Suzanne D. Snapper | ||||
Chief Financial Officer | ||||
Exhibit No. | Description | |
99.1 | Press Release of the Company dated May 4, 2015 |
• | Consolidated adjusted EBITDAR was $50.3 million, an increase of 33.8% over the prior year quarter; |
• | Consolidated adjusted net income climbed 27.5% over the prior year quarter to $15.8 million, while adjusted earnings per share outpaced the prior year quarter at $0.60 per share, compared to $0.54 per share; |
• | Same-store skilled mix revenue grew by 159 basis points over the prior year quarter to 53.9% due to an increase in Medicare and managed care days of 288 and 796 basis points, respectively, over the prior year quarter; |
• | Cornerstone Healthcare, Inc., our home health and hospice subsidiary, grew its revenue by $7.2 million, an increase of 57.0% over the prior year quarter and adjusted EBITDA by 40.3% over the prior year quarter to $3.3 million; and |
• | Consolidated revenues for the quarter were up 24.4% over the prior year quarter to $311.1 million. |
• | In Saint George, Utah, Coral Desert Rehabilitation and Care, a 60-bed all-private/Medicare transitional care facility; |
• | In Panorama City, California, the underlying real estate of Panorama Gardens Nursing and Rehabilitation Center, a 143-bed skilled nursing facility that had been operated by an Ensign subsidiary since September 2000 under a lease; |
• | In Boise and Twin Falls, Idaho, Heritage Assisted Living of Boise, a 100-unit assisted living operation; Heritage Assisted Living of Twin Falls, a 78-unit assisted living operation; and Woodstone Assisted Living, an 85-unit assisted living facility; |
• | In Ogden and Saint George, Utah, Wasatch Healthcare and Rehabilitation, a 63-bed skilled nursing facility and St. George Rehabilitation, a 130-bed skilled nursing facility; |
• | In Bainbridge Island, Washington, Bainbridge Island Health and Rehabilitation, a 69-bed skilled nursing facility; |
• | In Saint George, Utah, Gentle Touch home care, a private home care business; |
• | In San Jose, California, Managed Care at Home, a Medicare and Medi-Cal certified home health agency; |
• | In Whittier, California, the underlying ground lease for The Orchard Post-Acute Care Center, a 162-bed skilled nursing facility that had been operated by an Ensign subsidiary since September 2006 under a lease; |
• | In Arizona, seven skilled nursing operations with a total of 730 skilled nursing beds and three independent and assisted living operations with a total of 784 units, all under a new long-term master lease; |
• | In Olympia, Washington, Olympia Transitional Care and Rehabilitation, a 125-bed skilled nursing facility; |
• | In Westlake Village, California, Buena Vista Hospice, a Medicare and Medi-Cal certified hospice agency serving the Ventura County area; |
• | In Wisconsin, fifteen assisted and independent living operations with a total of 761 units under a long-term master lease with an option to purchase the real estate; and |
• | In Orange and Whittier, California, two assisted living operations with a total of 188 units under a long-term lease. |
Three Months Ended June 30, 2015 | Six Months Ended June 30, 2015 | |||||||||||||||||||||||
As Reported | Non-GAAP Adj. | As Adjusted | As Reported | Non-GAAP Adj. | As Adjusted | |||||||||||||||||||
Revenue | $ | 311,056 | (6,974 | ) | (5) | $ | 304,082 | $ | 617,585 | (13,641 | ) | (5) | $ | 603,944 | ||||||||||
Expense: | ||||||||||||||||||||||||
Cost of services (exclusive of rent, general and administrative and depreciation and amortization expense shown separately below) | 248,292 | (8,370 | ) | (1)(3)(5)(8) | 239,922 | 489,748 | (15,515 | ) | (1)(3)(5)(8) | 474,233 | ||||||||||||||
Rent—cost of services | 19,066 | (527 | ) | (6) | 18,539 | 38,031 | (1,016 | ) | (6) | 37,015 | ||||||||||||||
General and administrative expense | 15,335 | (1,499 | ) | (2)(3)(4) | 13,836 | 29,751 | (1,323 | ) | (2)(3)(4)(9) | 28,428 | ||||||||||||||
Depreciation and amortization | 6,379 | (607 | ) | (7) | 5,772 | 12,896 | (1,173 | ) | (7) | 11,723 | ||||||||||||||
Total expenses | 289,072 | (11,003 | ) | 278,069 | 570,426 | (19,027 | ) | 551,399 | ||||||||||||||||
Income from operations | 21,984 | 4,029 | 26,013 | 47,159 | 5,386 | 52,545 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense | (567 | ) | 46 | (521 | ) | (1,233 | ) | 92 | (1,141 | ) | ||||||||||||||
Interest income | 195 | — | 195 | 361 | — | 361 | ||||||||||||||||||
Other expense, net | (372 | ) | 46 | (326 | ) | (872 | ) | 92 | (780 | ) | ||||||||||||||
Income before provision for income taxes | 21,612 | 4,075 | 25,687 | 46,287 | 5,478 | 51,765 | ||||||||||||||||||
Tax impact of non-GAAP adjustments | 1,569 | 2,109 | ||||||||||||||||||||||
Tax true-up for effective tax rate | (59 | ) | (10) | (143 | ) | (10) | ||||||||||||||||||
Provision for income taxes | 8,379 | 1,510 | (11) | 9,889 | 17,964 | 1,966 | (11) | 19,930 | ||||||||||||||||
Net income | 13,233 | 2,565 | 15,798 | 28,323 | 3,512 | 31,835 | ||||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 45 | 2 | 47 | (37 | ) | 159 | 122 | |||||||||||||||||
Net income attributable to The Ensign Group, Inc. | $ | 13,188 | $ | 2,563 | $ | 15,751 | $ | 28,360 | $ | 3,353 | $ | 31,713 | ||||||||||||
Net income per share | ||||||||||||||||||||||||
Basic: | $0.52 | $0.62 | $1.15 | $1.28 | ||||||||||||||||||||
Diluted: | $0.50 | $0.60 | $1.11 | $1.24 | ||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 25,474 | 25,474 | 24,695 | 24,695 | ||||||||||||||||||||
Diluted | 26,433 | 26,433 | 25,636 | 25,636 | ||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||
As Reported | Non-GAAP Adj. | As Adjusted | As Reported | Non-GAAP Adj. | As Adjusted | |||||||||||||||||||
Revenue | $ | 250,043 | (3,515 | ) | (4)(5) | $ | 246,528 | $ | 489,696 | (6,478 | ) | (4)(5) | $ | 483,218 | ||||||||||
Expense: | ||||||||||||||||||||||||
Cost of services (exclusive of rent, general and administrative and depreciation and amortization expense shown separately below) | 202,057 | (4,061 | ) | (1)(4)(5) | 197,996 | 391,795 | (7,429 | ) | (1)(4)(5) | 384,366 | ||||||||||||||
Rent—cost of services | 8,283 | (525 | ) | (6) | 7,758 | 11,832 | (1,129 | ) | (6) | 10,703 | ||||||||||||||
General and administrative expense | 18,257 | (7,333 | ) | (2)(3)(4) | 10,924 | 31,414 | (9,003 | ) | (2)(3)(4) | 22,411 | ||||||||||||||
Depreciation and amortization | 7,804 | (332 | ) | (7) | 7,472 | 16,666 | (515 | ) | (7) | 16,151 | ||||||||||||||
Total expenses | 236,401 | (12,251 | ) | 224,150 | 451,707 | (18,076 | ) | 433,631 | ||||||||||||||||
Income from operations | 13,642 | 8,737 | 22,379 | 37,989 | 11,598 | 49,587 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense | (8,720 | ) | 6,363 | (2,357 | ) | (12,083 | ) | 6,425 | (5,658 | ) | ||||||||||||||
Interest income | 134 | — | 134 | 293 | — | 293 | ||||||||||||||||||
Other expense, net | (8,586 | ) | 6,363 | (2,223 | ) | (11,790 | ) | 6,425 | (5,365 | ) | ||||||||||||||
Income before provision for income taxes | 5,056 | 15,100 | 20,156 | 26,199 | 18,023 | 44,222 | ||||||||||||||||||
Tax impact of non-GAAP adjustments | 5,814 | (8) | 6,940 | (8) | ||||||||||||||||||||
Tax true-up for effective tax rate | (1,577 | ) | (9) | (1,539 | ) | (9) | ||||||||||||||||||
Provision for income taxes | 3,523 | 4,237 | 7,760 | 11,625 | 5,401 | 17,026 | ||||||||||||||||||
Net income | 1,533 | 10,863 | 12,396 | 14,574 | 12,622 | 27,196 | ||||||||||||||||||
Less: net (loss) income attributable to noncontrolling interests | (474 | ) | 513 | 39 | (959 | ) | 1,039 | 80 | ||||||||||||||||
Net income attributable to The Ensign Group, Inc. | $ | 2,007 | $ | 10,350 | $ | 12,357 | $ | 15,533 | $ | 11,583 | $ | 27,116 | ||||||||||||
Net income per share | ||||||||||||||||||||||||
Basic: | $0.09 | $0.56 | $0.70 | $1.22 | ||||||||||||||||||||
Diluted: | $0.09 | $0.54 | $0.68 | $1.18 | ||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 22,259 | 22,259 | 22,214 | 22,214 | ||||||||||||||||||||
Diluted | 22,960 | 22,960 | 22,915 | 22,915 | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Consolidated Statements of Income Data: | ||||||||||||||||
Net income | $ | 13,233 | $ | 1,533 | $ | 28,323 | $ | 14,574 | ||||||||
Less: net income (loss) attributable to noncontrolling interests | 45 | (474 | ) | (37 | ) | (959 | ) | |||||||||
Interest expense, net | 372 | 8,586 | 872 | 11,790 | ||||||||||||
Provision for income taxes | 8,379 | 3,523 | 17,964 | 11,625 | ||||||||||||
Depreciation and amortization | 6,379 | 7,804 | 12,896 | 16,666 | ||||||||||||
EBITDA | $ | 28,318 | $ | 21,920 | $ | 60,092 | $ | 55,614 | ||||||||
Rent—cost of services | 19,066 | 8,283 | 38,031 | 11,832 | ||||||||||||
EBITDAR | $ | 47,384 | $ | 30,203 | $ | 98,123 | $ | 67,446 | ||||||||
EBITDA | $ | 28,318 | $ | 21,920 | $ | 60,092 | $ | 55,614 | ||||||||
Adjustments to EBITDA: | ||||||||||||||||
Expenses related to the Spin-Off(a) | — | 7,281 | — | 8,871 | ||||||||||||
Stock-based compensation expense(b) | 1,733 | — | 3,226 | — | ||||||||||||
Costs incurred related to new systems implementation(c) | 858 | — | 1,145 | — | ||||||||||||
Urgent care center earnings(d) | (625 | ) | (3 | ) | (1,565 | ) | (32 | ) | ||||||||
Costs at facilities currently being constructed(e) | 462 | — | 608 | — | ||||||||||||
Earnings at three operations transferred to CareTrust (f) | — | (30 | ) | — | (122 | ) | ||||||||||
Acquisition related costs(g) | 438 | 90 | 590 | 134 | ||||||||||||
Breakup fee, net of costs, received in connection with a public auction(h) | — | — | (1,019 | ) | — | |||||||||||
Costs incurred to recognize income tax credits(i) | 27 | 29 | 53 | 62 | ||||||||||||
Rent related to item(d) and (f) above(j) | 527 | 525 | 1,016 | 1,129 | ||||||||||||
Adjusted EBITDA | $ | 31,738 | $ | 29,812 | $ | 64,146 | $ | 65,656 | ||||||||
Rent—cost of services | 19,066 | 8,283 | 38,031 | 11,832 | ||||||||||||
Less: related to items (d) and (f) above(j) | (527 | ) | (525 | ) | (1,016 | ) | (1,129 | ) | ||||||||
Adjusted EBITDAR | $ | 50,277 | $ | 37,570 | $ | 101,161 | $ | 76,359 | ||||||||
THE ENSIGN GROUP, INC. | ||||||||||||||||||||||||||||||||||
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR | ||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||
The table below reconciles income from operations to EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR for each reportable segment for the periods presented: | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||
TSA Services | Home Health and Hospice | TSA Services | Home Health and Hospice | |||||||||||||||||||||||||||||||
Statements of Income Data: | ||||||||||||||||||||||||||||||||||
Income from operations, excluding general and administrative expense(a) | $ | 35,067 | $ | 31,372 | $ | 2,996 | $ | 2,213 | $ | 72,366 | $ | 68,304 | $ | 5,671 | $ | 4,085 | ||||||||||||||||||
Depreciation and amortization | 4,877 | 6,600 | 224 | 126 | 9,826 | 14,461 | 445 | 247 | ||||||||||||||||||||||||||
EBITDA | $ | 39,944 | $ | 37,972 | $ | 3,220 | $ | 2,339 | $ | 82,192 | $ | 82,765 | $ | 6,116 | $ | 4,332 | ||||||||||||||||||
Rent—cost of services | 18,214 | 7,632 | 275 | 206 | 36,376 | 10,637 | 535 | 365 | ||||||||||||||||||||||||||
EBITDAR | $ | 58,158 | $ | 45,604 | $ | 3,495 | $ | 2,545 | $ | 118,568 | $ | 93,402 | $ | 6,651 | $ | 4,697 | ||||||||||||||||||
EBITDA | $ | 39,944 | $ | 37,972 | $ | 3,220 | $ | 2,339 | $ | 82,192 | $ | 82,765 | $ | 6,116 | $ | 4,332 | ||||||||||||||||||
Adjustments to EBITDA: | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense(b) | 1,033 | — | 61 | — | 1,913 | — | 122 | — | ||||||||||||||||||||||||||
Costs at facilities currently being constructed(c) | 462 | — | — | — | 608 | — | — | — | ||||||||||||||||||||||||||
Earnings at three operations transferred to CareTrust (d) | — | (30 | ) | — | — | — | (122 | ) | — | — | ||||||||||||||||||||||||
Acquisition related costs(e) | 438 | 90 | — | — | 590 | 134 | — | — | ||||||||||||||||||||||||||
Rent related to item(d) above(f) | — | 226 | — | — | — | 406 | — | — | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 41,877 | $ | 38,258 | $ | 3,281 | $ | 2,339 | $ | 85,303 | $ | 83,183 | $ | 6,238 | $ | 4,332 | ||||||||||||||||||
Rent—cost of services | 18,214 | 7,632 | 275 | 206 | 36,376 | 10,637 | 535 | 365 | ||||||||||||||||||||||||||
Less: rent related to items(d) above(f) | — | (226 | ) | — | — | — | (406 | ) | — | — | ||||||||||||||||||||||||
Adjusted EBITDAR | 60,091 | 45,664 | 3,556 | 2,545 | 121,679 | 93,414 | 6,773 | 4,697 | ||||||||||||||||||||||||||
(a) General and administrative expenses are not allocated to any segment for purposes of determining segment profit or loss. | ||||||||||||||||||||||||||||||||||
(b) Stock-based compensation expense incurred during the three and six months ended June 30, 2015. | ||||||||||||||||||||||||||||||||||
(c) Costs incurred for facilities currently being constructed during the three and six months ended June 30, 2015. | ||||||||||||||||||||||||||||||||||
(d) Results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off transaction, excluding rent, depreciation, interest and income taxes. | ||||||||||||||||||||||||||||||||||
(e) Costs incurred to acquire operations which are not capitalizable. | ||||||||||||||||||||||||||||||||||
(f) Rent related to the three independent living facilities which were transferred to CareTrust not included in item (d) above. | ||||||||||||||||||||||||||||||||||
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 50,635 | $ | 50,408 | |||
Restricted cash — current | 1,481 | 5,082 | |||||
Accounts receivable — less allowance for doubtful accounts of $23,913 and $20,438 at June 30, 2015 and December 31, 2014, respectively | 171,362 | 130,051 | |||||
Investments — current | 4,751 | 6,060 | |||||
Prepaid income taxes | 4,719 | 2,992 | |||||
Prepaid expenses and other current assets | 12,395 | 8,434 | |||||
Deferred tax asset — current | 10,602 | 10,615 | |||||
Total current assets | 255,945 | 213,642 | |||||
Property and equipment, net | 243,881 | 149,708 | |||||
Insurance subsidiary deposits and investments | 19,857 | 17,873 | |||||
Escrow deposits | 3,344 | 16,153 | |||||
Deferred tax asset | 11,500 | 11,509 | |||||
Restricted and other assets | 6,825 | 6,833 | |||||
Intangible assets, net | 38,580 | 35,568 | |||||
Goodwill | 32,781 | 30,269 | |||||
Other indefinite-lived intangibles | 16,226 | 12,361 | |||||
Total assets | $ | 628,939 | $ | 493,916 | |||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 33,843 | $ | 33,186 | |||
Accrued wages and related liabilities | 58,482 | 56,712 | |||||
Accrued self-insurance liabilities — current | 16,537 | 15,794 | |||||
Other accrued liabilities | 34,431 | 24,630 | |||||
Current maturities of long-term debt | 501 | 111 | |||||
Total current liabilities | 143,794 | 130,433 | |||||
Long-term debt — less current maturities | 49,019 | 68,279 | |||||
Accrued self-insurance liabilities — less current portion | 35,856 | 34,166 | |||||
Deferred rent and other long-term liabilities | 3,357 | 3,235 | |||||
Total equity | 396,913 | 257,803 | |||||
Total liabilities and equity | $ | 628,939 | $ | 493,916 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Net cash provided by operating activities | $ | 6,808 | $ | 37,077 | |||
Net cash used in investing activities | (89,427 | ) | (87,405 | ) | |||
Net cash provided by financing activities | 82,846 | 6,966 | |||||
Net increase (decrease) in cash and cash equivalents | 227 | (43,362 | ) | ||||
Cash and cash equivalents at beginning of period | 50,408 | 65,755 | |||||
Cash and cash equivalents at end of period | $ | 50,635 | $ | 22,393 |
THE ENSIGN GROUP, INC. | ||||||||||||||||||||||||||||||
REVENUE BY SEGMENT | ||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
The following table sets forth our total revenue by segment and as a percentage of total revenue for the periods indicated: | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||
Transitional, skilled and assisted living services: | ||||||||||||||||||||||||||||||
Skilled nursing facilities | $ | 265,709 | 85.4 | % | $ | 219,863 | 87.9 | % | $ | 530,179 | 85.8 | % | $ | 432,682 | 88.4 | % | ||||||||||||||
Assisted and independent living facilities | 15,927 | 5.1 | 12,152 | 4.9 | 30,230 | 4.9 | 23,455 | 4.8 | ||||||||||||||||||||||
Total transitional, skilled and assisted living services | 281,636 | 90.5 | 232,015 | 92.8 | 560,409 | 90.7 | 456,137 | 93.2 | ||||||||||||||||||||||
Home health and hospice services: | ||||||||||||||||||||||||||||||
Home health | $ | 11,294 | 3.6 | % | $ | 7,132 | 2.9 | % | $ | 21,656 | 3.5 | % | $ | 13,283 | 2.7 | % | ||||||||||||||
Hospice | 8,650 | 2.8 | 5,572 | 2.2 | 16,604 | 2.7 | 10,567 | 2.2 | ||||||||||||||||||||||
Total home health and hospice services | 19,944 | 6.4 | 12,704 | 5.1 | 38,260 | 6.2 | 23,850 | 4.9 | ||||||||||||||||||||||
All other (1) | 9,476 | 3.1 | 5,324 | 2.1 | 18,916 | 3.1 | 9,709 | 1.9 | ||||||||||||||||||||||
Total revenue | $ | 311,056 | 100.0 | % | $ | 250,043 | 100.0 | % | $ | 617,585 | 100.0 | % | $ | 489,696 | 100.0 | % | ||||||||||||||
(1) Includes revenue from services provided at our urgent care clinics and a mobile x-ray and diagnostic company. | ||||||||||||||||||||||||||||||
THE ENSIGN GROUP, INC. | ||||||||||
SELECT PERFORMANCE INDICATORS | ||||||||||
(in thousands) | ||||||||||
(Unaudited) |
Three Months Ended June 30, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Total Facility Results: | ||||||||||||||
Skilled nursing revenue | $ | 265,709 | $ | 219,863 | $ | 45,846 | 20.9 | % | ||||||
Assisted and independent living revenue | 15,927 | 12,152 | 3,775 | 31.1 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 281,636 | $ | 232,015 | $ | 49,621 | 21.4 | % | ||||||
Number of facilities at period end | 150 | 125 | 25 | 20.0 | % | |||||||||
Actual patient days | 1,121,158 | 967,403 | 153,755 | 15.9 | % | |||||||||
Occupancy percentage — Operational beds | 78.0 | % | 77.8 | % | 0.2 | % | ||||||||
Skilled mix by nursing days | 30.1 | % | 27.8 | % | 2.3 | % | ||||||||
Skilled mix by nursing revenue | 53.4 | % | 51.4 | % | 2.0 | % |
Three Months Ended June 30, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Same Facility Results(1): | ||||||||||||||
Skilled nursing revenue | $ | 208,613 | $ | 198,954 | $ | 9,659 | 4.9 | % | ||||||
Assisted and independent living revenue | 8,001 | 7,950 | 51 | 0.6 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 216,614 | $ | 206,904 | $ | 9,710 | 4.7 | % | ||||||
Number of facilities at period end | 101 | 101 | — | — | % | |||||||||
Actual patient days | 822,751 | 828,881 | (6,130 | ) | (0.7 | )% | ||||||||
Occupancy percentage — Operational beds | 80.8 | % | 80.7 | % | 0.1 | % | ||||||||
Skilled mix by nursing days | 30.3 | % | 28.5 | % | 1.8 | % | ||||||||
Skilled mix by nursing revenue | 53.9 | % | 52.3 | % | 1.6 | % |
Three Months Ended June 30, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Transitioning Facility Results(2): | ||||||||||||||
Skilled nursing revenue | $ | 16,082 | $ | 15,244 | $ | 838 | 5.5 | % | ||||||
Assisted and independent living revenue | 3,224 | 2,876 | 348 | 12.1 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 19,306 | $ | 18,120 | $ | 1,186 | 6.5 | % | ||||||
Number of facilities at period end | 17 | 17 | — | — | % | |||||||||
Actual patient days | 100,478 | 98,290 | 2,188 | 2.2 | % | |||||||||
Occupancy percentage — Operational beds | 68.2 | % | 65.9 | % | 2.3 | % | ||||||||
Skilled mix by nursing days | 20.4 | % | 19.7 | % | 0.7 | % | ||||||||
Skilled mix by nursing revenue | 42.3 | % | 41.5 | % | 0.8 | % |
Three Months Ended June 30, | |||||||||||||
2015 | 2014 | ||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||
Recently Acquired Facility Results(3): | |||||||||||||
Skilled nursing revenue | $ | 41,014 | $ | 5,665 | $ | 35,349 | NM | ||||||
Assisted and independent living revenue | 4,702 | 856 | 3,846 | NM | |||||||||
Total transitional, skilled and assisted living revenue | $ | 45,716 | $ | 6,521 | $ | 39,195 | NM | ||||||
Number of facilities at period end | 32 | 7 | 25 | NM | |||||||||
Actual patient days | 197,929 | 29,065 | 168,864 | NM | |||||||||
Occupancy percentage — Operational beds | 72.9 | % | 57.6 | % | NM | ||||||||
Skilled mix by nursing days | 34.2 | % | 26.3 | % | NM | ||||||||
Skilled mix by nursing revenue | 55.5 | % | 45.0 | % | NM |
Three Months Ended June 30, | |||||||||||||
2015 | 2014 | ||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||
Transferred to CareTrust(4): | |||||||||||||
Assisted and independent living revenue | $ | — | $ | 470 | $ | (470 | ) | NM | |||||
Total transitional, skilled and assisted living revenue | $ | — | $ | 470 | $ | (470 | ) | NM | |||||
Actual patient days | — | 11,167 | NM | ||||||||||
Occupancy percentage — Operational beds | — | % | 69.3 | % | NM |
(1) | Same Facility results represent all facilities purchased prior to January 1, 2012. |
(2) | Transitioning Facility results represents all facilities purchased from January 1, 2012 to December 31, 2013. |
(3) | Recently Acquired Facility (or "Acquisitions") results represent all facilities purchased on or subsequent to January 1, 2014. |
(4) | Transferred to CareTrust results represent the results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off on June 1, 2014. These results were excluded from Same Facility for the three months ended June 30, 2014 for comparison purposes. |
Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Total Facility Results: | ||||||||||||||
Skilled nursing revenue | $ | 530,179 | $ | 432,682 | $ | 97,497 | 22.5 | % | ||||||
Assisted and independent living revenue | 30,230 | 23,455 | 6,775 | 28.9 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 560,409 | $ | 456,137 | $ | 104,272 | 22.9 | % | ||||||
Number of facilities at period end | 150 | 125 | 25 | 20.0 | % | |||||||||
Actual patient days | 2,198,396 | 1,900,270 | 298,126 | 15.7 | % | |||||||||
Occupancy percentage — Operational beds | 78.4 | % | 78.0 | % | 0.4 | % | ||||||||
Skilled mix by nursing days | 30.2 | % | 27.8 | % | 2.4 | % | ||||||||
Skilled mix by nursing revenue | 53.2 | % | 51.2 | % | 2.0 | % |
Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Same Facility Results(1): | ||||||||||||||
Skilled nursing revenue | $ | 420,356 | $ | 396,201 | $ | 24,155 | 6.1 | % | ||||||
Assisted and independent living revenue | 15,854 | 15,706 | 148 | 0.9 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 436,210 | $ | 411,907 | $ | 24,303 | 5.9 | % | ||||||
Number of facilities at period end | 101 | 101 | — | — | % | |||||||||
Actual patient days | 1,640,054 | 1,645,828 | (5,774 | ) | (0.4 | )% | ||||||||
Occupancy percentage — Operational beds | 81.0 | % | 80.5 | % | 0.5 | % | ||||||||
Skilled mix by nursing days | 30.5 | % | 28.6 | % | 1.9 | % | ||||||||
Skilled mix by nursing revenue | 53.8 | % | 52.1 | % | 1.7 | % |
Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Transitioning Facility Results(2): | ||||||||||||||
Skilled nursing revenue | $ | 32,629 | $ | 30,177 | $ | 2,452 | 8.1 | % | ||||||
Assisted and independent living revenue | 6,414 | 5,646 | 768 | 13.6 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 39,043 | $ | 35,823 | $ | 3,220 | 9.0 | % | ||||||
Number of facilities at period end | 17 | 17 | — | — | % | |||||||||
Actual patient days | 202,291 | 194,649 | 7,642 | 3.9 | % | |||||||||
Occupancy percentage — Operational beds | 69.0 | % | 65.6 | % | 3.4 | % | ||||||||
Skilled mix by nursing days | 20.7 | % | 19.2 | % | 1.5 | % | ||||||||
Skilled mix by nursing revenue | 42.5 | % | 40.6 | % | 1.9 | % |
Six Months Ended June 30, | |||||||||||||
2015 | 2014 | ||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||
Recently Acquired Facility Results(3): | |||||||||||||
Skilled nursing revenue | $ | 77,194 | $ | 6,304 | $ | 70,890 | NM | ||||||
Assisted and independent living revenue | 7,962 | 856 | 7,106 | NM | |||||||||
Total transitional, skilled and assisted living revenue | $ | 85,156 | $ | 7,160 | $ | 77,996 | NM | ||||||
Number of facilities at period end | 32 | 7 | 25 | NM | |||||||||
Actual patient days | 356,051 | 31,777 | 324,274 | NM | |||||||||
Occupancy percentage — Operational beds | 73.3 | % | 56.2 | % | NM | ||||||||
Skilled mix by nursing days | 33.3 | % | 26.5 | % | NM | ||||||||
Skilled mix by nursing revenue | 54.4 | % | 44.8 | % | NM |
Six Months Ended June 30, | |||||||||||||
2015 | 2014 | ||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||
Transferred to CareTrust(4): | |||||||||||||
Assisted and independent living revenue | — | 1,247 | (1,247 | ) | NM | ||||||||
Total transitional, skilled and assisted living revenue | $ | — | $ | 1,247 | $ | (1,247 | ) | NM | |||||
Actual patient days | — | 28,016 | NM | ||||||||||
Occupancy percentage — Operational beds | — | % | 70.3 | % | NM |
(1) | Same Facility results represent all facilities purchased prior to January 1, 2012. |
(2) | Transitioning Facility results represents all facilities purchased from January 1, 2012 to December 31, 2013. |
(3) | Recently Acquired Facility (or "Acquisitions") results represent all facilities purchased on or subsequent to January 1, 2014. |
(4) | Transferred to CareTrust results represent the results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off on June 1, 2014. These results were excluded from Same Facility for the six months ended June 30, 2014 for comparison purposes. |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Skilled Nursing Average Daily Revenue Rates: | |||||||||||||||||||||||||||||||
Medicare | $ | 565.66 | $ | 554.19 | $ | 485.55 | $ | 454.87 | $ | 524.11 | $ | 510.45 | $ | 554.72 | $ | 546.52 | |||||||||||||||
Managed care | 420.72 | 416.16 | 469.91 | 469.88 | 449.65 | 426.16 | 428.94 | 419.91 | |||||||||||||||||||||||
Other skilled | 468.38 | 443.16 | 333.97 | — | 361.80 | 307.67 | 448.95 | 435.98 | |||||||||||||||||||||||
Total skilled revenue | 500.85 | 491.93 | 478.46 | 460.49 | 468.83 | 421.20 | 494.31 | 488.22 | |||||||||||||||||||||||
Medicaid | 184.26 | 177.09 | 175.29 | 160.44 | 193.23 | 183.23 | 184.80 | 175.79 | |||||||||||||||||||||||
Private and other payors | 193.42 | 189.44 | 136.04 | 156.06 | 205.00 | 185.07 | 189.87 | 185.87 | |||||||||||||||||||||||
Total skilled nursing revenue | $ | 281.14 | $ | 268.54 | $ | 230.82 | $ | 218.93 | $ | 288.93 | $ | 245.91 | $ | 278.71 | $ | 263.79 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Skilled Nursing Average Daily Revenue Rates: | |||||||||||||||||||||||||||||||
Medicare | $ | 567.73 | $ | 553.05 | $ | 482.92 | $ | 457.70 | $ | 534.55 | $ | 505.65 | $ | 558.20 | $ | 546.17 | |||||||||||||||
Managed care | 416.13 | 410.79 | 460.77 | 466.02 | 453.93 | 422.30 | 425.87 | 414.53 | |||||||||||||||||||||||
Other skilled | 473.75 | 442.41 | 327.08 | — | 368.68 | 300.59 | 456.13 | 437.74 | |||||||||||||||||||||||
Total skilled revenue | 501.87 | 490.36 | 474.07 | 460.85 | 474.03 | 414.43 | 496.10 | 487.50 | |||||||||||||||||||||||
Medicaid | 188.71 | 178.53 | 172.52 | 161.71 | 194.88 | 183.30 | 188.20 | 177.08 | |||||||||||||||||||||||
Private and other payors | 193.01 | 189.23 | 149.14 | 152.56 | 210.32 | 186.86 | 191.62 | 185.23 | |||||||||||||||||||||||
Total skilled nursing revenue | $ | 284.81 | $ | 269.16 | $ | 231.47 | $ | 217.58 | $ | 289.78 | $ | 244.78 | $ | 281.59 | $ | 264.42 |
Three Months Ended June 30, | |||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Percentage of Skilled Nursing Revenue: | |||||||||||||||||||||||
Medicare | 30.7 | % | 30.8 | % | 26.6 | % | 25.6 | % | 26.6 | % | 16.7 | % | 29.9 | % | 30.1 | % | |||||||
Managed care | 15.8 | 15.2 | 15.5 | 15.9 | 22.6 | 19.7 | 16.9 | 15.3 | |||||||||||||||
Other skilled | 7.4 | 6.3 | 0.2 | — | 6.3 | 8.6 | 6.6 | 6.0 | |||||||||||||||
Skilled mix | 53.9 | 52.3 | 42.3 | 41.5 | 55.5 | 45.0 | 53.4 | 51.4 | |||||||||||||||
Private and other payors | 8.4 | 9.0 | 9.6 | 11.6 | 9.0 | 6.0 | 8.6 | 9.1 | |||||||||||||||
Quality mix | 62.3 | 61.3 | 51.9 | 53.1 | 64.5 | 51.0 | 62.0 | 60.5 | |||||||||||||||
Medicaid | 37.7 | 38.7 | 48.1 | 46.9 | 35.5 | 49.0 | 38.0 | 39.5 | |||||||||||||||
Total skilled nursing | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended June 30, | |||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Percentage of Skilled Nursing Days: | |||||||||||||||||||||||
Medicare | 15.3 | % | 14.9 | % | 12.6 | % | 12.3 | % | 14.7 | % | 8.1 | % | 15.0 | % | 14.5 | % | |||||||
Managed care | 10.6 | 9.8 | 7.6 | 7.4 | 14.6 | 11.4 | 11.0 | 9.6 | |||||||||||||||
Other skilled | 4.4 | 3.8 | 0.2 | — | 4.9 | 6.8 | 4.1 | 3.7 | |||||||||||||||
Skilled mix | 30.3 | 28.5 | 20.4 | 19.7 | 34.2 | 26.3 | 30.1 | 27.8 | |||||||||||||||
Private and other payors | 12.2 | 12.8 | 16.2 | 16.3 | 12.7 | 8.0 | 12.6 | 12.9 | |||||||||||||||
Quality mix | 42.5 | 41.3 | 36.6 | 36.0 | 46.9 | 34.3 | 42.7 | 40.7 | |||||||||||||||
Medicaid | 57.5 | 58.7 | 63.4 | 64.0 | 53.1 | 65.7 | 57.3 | 59.3 | |||||||||||||||
Total skilled nursing | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Six Months Ended June 30, | |||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Percentage of Skilled Nursing Revenue: | |||||||||||||||||||||||
Medicare | 31.2 | % | 31.2 | % | 27.2 | % | 25.1 | % | 24.4 | % | 16.0 | % | 29.9 | % | 30.6 | % | |||||||
Managed care | 15.5 | 14.9 | 15.2 | 15.5 | 24.1 | 20.2 | 16.8 | 15.0 | |||||||||||||||
Other skilled | 7.1 | 6.0 | 0.1 | — | 5.9 | 8.6 | 6.5 | 5.6 | |||||||||||||||
Skilled mix | 53.8 | 52.1 | 42.5 | 40.6 | 54.4 | 44.8 | 53.2 | 51.2 | |||||||||||||||
Private and other payors | 8.2 | 9.0 | 9.9 | 11.8 | 9.5 | 5.7 | 8.5 | 9.2 | |||||||||||||||
Quality mix | 62.0 | 61.1 | 52.4 | 52.4 | 63.9 | 50.5 | 61.7 | 60.4 | |||||||||||||||
Medicaid | 38.0 | 38.9 | 47.6 | 47.6 | 36.1 | 49.5 | 38.3 | 39.6 | |||||||||||||||
Total skilled nursing | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Six Months Ended June 30, | |||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Percentage of Skilled Nursing Days: | |||||||||||||||||||||||
Medicare | 15.6 | % | 15.2 | % | 13.1 | % | 11.9 | % | 13.2 | % | 7.8 | % | 15.1 | % | 14.8 | % | |||||||
Managed care | 10.6 | 9.8 | 7.6 | 7.3 | 15.4 | 11.7 | 11.1 | 9.6 | |||||||||||||||
Other skilled | 4.3 | 3.6 | — | — | 4.7 | 7.0 | 4.0 | 3.4 | |||||||||||||||
Skilled mix | 30.5 | 28.6 | 20.7 | 19.2 | 33.3 | 26.5 | 30.2 | 27.8 | |||||||||||||||
Private and other payors | 12.2 | 12.8 | 15.4 | 16.8 | 13.1 | 7.4 | 12.5 | 13.0 | |||||||||||||||
Quality mix | 42.7 | 41.4 | 36.1 | 36.0 | 46.4 | 33.9 | 42.7 | 40.8 | |||||||||||||||
Medicaid | 57.3 | 58.6 | 63.9 | 64.0 | 53.6 | 66.1 | 57.3 | 59.2 | |||||||||||||||
Total skilled nursing | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
THE ENSIGN GROUP, INC. | ||||||||||
SELECT PERFORMANCE INDICATORS | ||||||||||
(in thousands) | ||||||||||
(Unaudited) | ||||||||||
The following tables summarize our selected performance indicators for our home health and hospice segment along with other statistics, for the periods indicated: | ||||||||||
Three Months Ended June 30, | |||||||||||||||
2015 | 2014 | Change | % Change | ||||||||||||
Results: | (Dollars in thousands) | ||||||||||||||
Home health and hospice revenue: | |||||||||||||||
Home health services | $ | 11,294 | $ | 7,132 | $ | 4,162 | 58.4 | % | |||||||
Hospice services | 8,650 | 5,572 | 3,078 | 55.2 | |||||||||||
Total home health and hospice revenue | $ | 19,944 | $ | 12,704 | $ | 7,240 | 57.0 | % | |||||||
Home health services: | |||||||||||||||
Medicare Episodic Admissions | 1,672 | 1,293 | 379 | 29.3 | % | ||||||||||
Average Medicare Revenue per Completed Episode | 2,954 | 2,961 | (7 | ) | (0.2 | )% | |||||||||
Hospice services: | |||||||||||||||
Average Daily Census | 562 | 392 | 170 | 43.4 | % |
Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | Change | % Change | ||||||||||||
Results: | (Dollars in thousands) | ||||||||||||||
Home health and hospice revenue: | |||||||||||||||
Home health services | $ | 21,656 | $ | 13,283 | $ | 8,373 | 63.0 | % | |||||||
Hospice services | 16,604 | 10,567 | 6,037 | 57.1 | |||||||||||
Total home health and hospice revenue | $ | 38,260 | $ | 23,850 | $ | 14,410 | 60.4 | % | |||||||
Home health services: | |||||||||||||||
Medicare Episodic Admissions | 3,415 | 2,510 | 905 | 36.1 | % | ||||||||||
Average Medicare Revenue per Completed Episode | 2,984 | 2,910 | 74 | 2.5 | % | ||||||||||
Hospice services: | |||||||||||||||
Average Daily Census | 552 | 420 | 132 | 31.4 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||
Medicaid | $ | 100,873 | 32.4 | % | $ | 85,937 | 34.4 | % | $ | 202,502 | 32.8 | % | $ | 169,279 | 34.6 | % | |||||||||||||
Medicare | 95,396 | 30.7 | 77,333 | 30.9 | 189,752 | 30.7 | 153,803 | 31.4 | |||||||||||||||||||||
Medicaid-skilled | 16,745 | 5.4 | 12,353 | 4.9 | 32,282 | 5.3 | 22,961 | 4.7 | |||||||||||||||||||||
Total | 213,014 | 68.5 | 175,623 | 70.2 | 424,536 | 68.8 | 346,043 | 70.7 | |||||||||||||||||||||
Managed Care | 47,633 | 15.3 | 35,776 | 14.3 | 93,963 | 15.2 | 68,754 | 14.0 | |||||||||||||||||||||
Private and Other(1) | 50,409 | 16.2 | 38,644 | 15.5 | 99,086 | 16.0 | 74,899 | 15.3 | |||||||||||||||||||||
Total revenue | $ | 311,056 | 100.0 | % | $ | 250,043 | 100.0 | % | $ | 617,585 | 100.0 | % | $ | 489,696 | 100.0 | % | |||||||||||||
(1) Private and other payors includes revenue from urgent care centers and other ancillary services. |