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 10, 2016 |
Dated: May 13, 2016 | 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 10, 2016 |
• | Consolidated GAAP net income for the quarter was $9.2 million and consolidated adjusted net income was $17.8 |
• | Consolidated GAAP EBITDAR for the quarter was $51.5 million, an increase of 1.5%, and consolidated adjusted EBITDAR was $62.6 million, an increase of 23.1% over the prior year quarter(1); |
• | Transitioning skilled revenue mix increased by 300 basis points over the prior year quarter to 56.8% and same-store skilled revenue mix increased by 29 basis points over the prior year quarter to 53.6%; |
• | Transitioning revenue for all segments grew by 9.7% over the prior year quarter, and transitioning TSA revenue grew by 8.0% over the prior year quarter; |
• | Cornerstone Healthcare, Inc., our home health and hospice subsidiary, grew its segment income by 18.7% and revenue by $8.4 million to $26.7 million for the quarter, an increase of 45.6% over the prior year quarter; and |
• | Consolidated revenues for the quarter were up $76.7 million or 25.0% over the prior year quarter to $383.2 million. |
• | The Healthcare Resort of Olathe, featuring a 70-bed licensed transitional care operation and 30 private assisted living suites under a long-term lease located in Olathe, Kansas; |
• | Legend Oaks Healthcare and Rehabilitation - Greenville, a 126-bed skilled nursing facility located in Greenville, Texas; |
• | Legend Oaks Healthcare and Rehabilitation - Euless, a 140-bed skilled nursing facility located in Euless, Texas; |
• | Legend Oaks Healthcare and Rehabilitation Center - Gladewater, a 100-bed skilled nursing facility located in Gladewater, Texas; |
• | Legend Oaks Healthcare and Rehabilitation - North Austin, a 124-bed skilled nursing facility located in Austin, Texas; |
• | Legend Healthcare and Rehabilitation - Ennis, a 124-bed skilled nursing facility located in Ennis, Texas; |
• | Granite Mesa Health Center, a 124-bed skilled nursing facility located in Marble Falls, Texas; |
• | Legend Oaks Healthcare and Rehabilitation - Katy, a 125-bed skilled nursing facility located in Katy, Texas; |
• | Legend Oaks Healthcare and Rehabilitation - Kyle, a 126-bed skilled nursing facility located in Kyle, Texas; |
• | Legend Oaks Healthcare and Rehabilitation North Willowbrook, a 124-bed skilled nursing facility located in Houston, Texas; |
• | Sonterra Health Center, a 124-bed skilled nursing facility located in San Antonio, Texas; |
• | Legend Oaks Healthcare and Rehabilitation - San Antonio, a 126-bed skilled nursing facility located in San Antonio, Texas; |
• | Legend Oaks Healthcare and Rehabilitation - West Houston, a 124-bed skilled nursing facility located in Houston, Texas; |
• | Legend Oaks Healthcare and Rehabilitation - West San Antonio, a 124-bed skilled nursing facility located in San Antonio, Texas; |
• | McAllen Transitional Care Center, a 70-bed skilled nursing facility located in McAllen, Texas; |
• | Legend Oaks Healthcare and Rehabilitation Center - Northwest Houston, a 125-bed skilled nursing facility located in Houston, Texas; and |
• | Legend Oaks Healthcare and Rehabilitation - New Braunfels, a 126-bed skilled nursing facility located in New Braunfels, Texas. |
• | Legend Healthcare and Rehabilitation - Paris, a 120-bed skilled nursing facility located in Paris, Texas; and |
• | Legend Oaks Healthcare and Rehabilitation Center, a 125-bed skilled nursing facility located in Houston, Texas. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Revenue | $ | 383,234 | $ | 306,529 | ||||
Expense: | ||||||||
Cost of services (exclusive of losses related to operational closure, rent, general and administrative and depreciation and amortization expense shown separately below) | 306,308 | 241,456 | ||||||
Losses related to operational closure | 7,935 | — | ||||||
Rent—cost of services | 26,991 | 18,966 | ||||||
General and administrative expense | 17,387 | 14,416 | ||||||
Depreciation and amortization | 8,298 | 6,517 | ||||||
Total expenses | 366,919 | 281,355 | ||||||
Income from operations | 16,315 | 25,174 | ||||||
Other income (expense): | ||||||||
Interest expense | (1,370 | ) | (667 | ) | ||||
Interest income | 234 | 166 | ||||||
Other expense, net | (1,136 | ) | (501 | ) | ||||
Income before provision for income taxes | 15,179 | 24,673 | ||||||
Provision for income taxes | 5,889 | 9,585 | ||||||
Net income | 9,290 | 15,088 | ||||||
Less: net income (loss) attributable to noncontrolling interests | 118 | (82 | ) | |||||
Net income attributable to The Ensign Group, Inc. | $ | 9,172 | $ | 15,170 | ||||
Net income per share | ||||||||
Basic: | $0.18 | $0.32 | ||||||
Diluted: | $0.18 | $0.31 | ||||||
Weighted average common shares outstanding: | ||||||||
Basic | 50,679 | 47,815 | ||||||
Diluted | 52,334 | 49,652 | ||||||
Dividends per share | $ | 0.0400 | $ | 0.0375 | ||||
March 31, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 51,370 | $ | 41,569 | |||
Accounts receivable — less allowance for doubtful accounts of $32,098 and $30,308 at March 31, 2016 and December 31, 2015, respectively | 217,171 | 209,026 | |||||
Investments — current | 2,003 | 2,004 | |||||
Prepaid income taxes | 3,254 | 8,141 | |||||
Prepaid expenses and other current assets | 19,441 | 18,827 | |||||
Total current assets | 293,239 | 279,567 | |||||
Property and equipment, net | 311,479 | 299,633 | |||||
Insurance subsidiary deposits and investments | 30,955 | 32,713 | |||||
Escrow deposits | 1,646 | 400 | |||||
Deferred tax asset | 20,823 | 20,852 | |||||
Restricted and other assets | 11,165 | 9,631 | |||||
Intangible assets, net | 44,444 | 45,431 | |||||
Goodwill | 41,034 | 40,886 | |||||
Other indefinite-lived intangibles | 18,896 | 18,646 | |||||
Total assets | $ | 773,681 | $ | 747,759 | |||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 35,695 | $ | 36,029 | |||
Accrued wages and related liabilities | 67,567 | 78,890 | |||||
Accrued self-insurance liabilities — current | 18,204 | 18,122 | |||||
Other accrued liabilities | 46,018 | 46,205 | |||||
Current maturities of long-term debt | 627 | 620 | |||||
Total current liabilities | 168,111 | 179,866 | |||||
Long-term debt — less current maturities | 145,642 | 99,051 | |||||
Accrued self-insurance liabilities — less current portion | 39,872 | 37,881 | |||||
Deferred rent and other long-term liabilities | 9,860 | 3,976 | |||||
Total equity | 410,196 | 426,985 | |||||
Total liabilities and equity | $ | 773,681 | $ | 747,759 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net cash provided by operating activities | $ | 12,695 | $ | 5,860 | |||
Net cash used in investing activities | (20,104 | ) | (36,455 | ) | |||
Net cash provided by financing activities | 17,210 | 42,796 | |||||
Net increase (decrease) in cash and cash equivalents | 9,801 | 12,201 | |||||
Cash and cash equivalents at beginning of period | 41,569 | 50,408 | |||||
Cash and cash equivalents at end of period | $ | 51,370 | $ | 62,609 |
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 March 31, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
$ | % | $ | % | |||||||||||||
TSA Services | ||||||||||||||||
Skilled nursing facilities | $ | 315,212 | 82.3 | % | $ | 264,471 | 86.3 | % | ||||||||
Assisted and independent living facilities | 30,171 | 7.9 | 14,303 | 4.6 | ||||||||||||
Total TSA services | 345,383 | 90.2 | 278,774 | 90.9 | ||||||||||||
Home health and hospice services: | ||||||||||||||||
Home health | 13,908 | 3.6 | $ | 10,363 | 3.4 | |||||||||||
Hospice | 12,758 | 3.3 | 7,952 | 2.6 | ||||||||||||
Total home health and hospice services | 26,666 | 6.9 | 18,315 | 6.0 | ||||||||||||
All other (1) | 11,185 | 2.9 | 9,440 | 3.1 | ||||||||||||
Total revenue | $ | 383,234 | 100.0 | % | $ | 306,529 | 100.0 | % | ||||||||
(1) Includes revenue from services provided at our urgent care clinics and other ancillary operations. | ||||||||||||||||
THE ENSIGN GROUP, INC. | ||||||||||
SELECT PERFORMANCE INDICATORS | ||||||||||
(Unaudited) |
Three Months Ended March 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Total Facility Results: | ||||||||||||||
Skilled nursing revenue | $ | 315,212 | $ | 264,471 | $ | 50,741 | 19.2 | % | ||||||
Assisted and independent living revenue | 30,171 | 14,303 | 15,868 | 110.9 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 345,383 | $ | 278,774 | $ | 66,609 | 23.9 | % | ||||||
Number of facilities at period end | 186 | 143 | 43 | 30.1 | % | |||||||||
Actual patient days | 1,376,879 | 1,077,238 | 299,641 | 27.8 | % | |||||||||
Occupancy percentage — Operational beds | 77.1 | % | 78.8 | % | (1.7 | )% | ||||||||
Skilled mix by nursing days | 32.5 | % | 30.3 | % | 2.2 | % | ||||||||
Skilled mix by nursing revenue | 54.6 | % | 52.9 | % | 1.7 | % |
Three Months Ended March 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Same Facility Results(1): | ||||||||||||||
Skilled nursing revenue | $ | 223,757 | $ | 215,556 | $ | 8,201 | 3.8 | % | ||||||
Assisted and independent living revenue | 9,107 | 9,063 | 44 | 0.5 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 232,864 | $ | 224,619 | $ | 8,245 | 3.7 | % | ||||||
Number of facilities at period end | 106 | 106 | — | — | % | |||||||||
Actual patient days | 856,247 | 845,502 | 10,745 | 1.3 | % | |||||||||
Occupancy percentage — Operational beds | 80.1 | % | 80.5 | % | (0.4 | )% | ||||||||
Skilled mix by nursing days | 31.3 | % | 30.6 | % | 0.7 | % | ||||||||
Skilled mix by nursing revenue | 53.6 | % | 53.3 | % | 0.3 | % |
Three Months Ended March 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
(Dollars in thousands) | Change | % Change | ||||||||||||
Transitioning Facility Results(2): | ||||||||||||||
Skilled nursing revenue | $ | 43,938 | $ | 40,571 | $ | 3,367 | 8.3 | % | ||||||
Assisted and independent living revenue | 4,588 | 4,367 | 221 | 5.1 | % | |||||||||
Total transitional, skilled and assisted living revenue | $ | 48,526 | $ | 44,938 | $ | 3,588 | 8.0 | % | ||||||
Number of facilities at period end | 29 | 29 | — | — | % | |||||||||
Actual patient days | 188,249 | 181,847 | 6,402 | 3.5 | % | |||||||||
Occupancy percentage — Operational beds | 74.1 | % | 71.8 | % | 2.3 | % | ||||||||
Skilled mix by nursing days | 34.9 | % | 31.1 | % | 3.8 | % | ||||||||
Skilled mix by nursing revenue | 56.8 | % | 53.8 | % | 3.0 | % |
Three Months Ended March 31, | |||||||||||||
2016 | 2015 | ||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||
Recently Acquired Facility Results(3): | |||||||||||||
Skilled nursing revenue | $ | 46,897 | $ | 6,447 | $ | 40,450 | NM | ||||||
Assisted and independent living revenue | 16,476 | 873 | 15,603 | NM | |||||||||
Total transitional, skilled and assisted living revenue | $ | 63,373 | $ | 7,320 | $ | 56,053 | NM | ||||||
Number of facilities at period end | 51 | 7 | 44 | NM | |||||||||
Actual patient days | 329,138 | 40,696 | 288,442 | NM | |||||||||
Occupancy percentage — Operational beds | 71.8 | % | 77.6 | % | NM | ||||||||
Skilled mix by nursing days | 36.7 | % | 20.8 | % | NM | ||||||||
Skilled mix by nursing revenue | 57.8 | % | 39.8 | % | NM |
Three Months Ended March 31, | |||||||||||||
2016 | 2015 | ||||||||||||
(Dollars in thousands) | Change | % Change | |||||||||||
Facility Closed(4): | |||||||||||||
Skilled nursing revenue | $ | 620 | $ | 1,897 | $ | (1,277 | ) | NM | |||||
Assisted and independent living revenue | — | — | — | NM | |||||||||
Total transitional, skilled and assisted living revenue | $ | 620 | $ | 1,897 | $ | (1,277 | ) | NM | |||||
Actual patient days | 3,245 | 9,193 | (5,948 | ) | NM | ||||||||
Occupancy percentage — Operational beds | 70.7 | % | 74.6 | % | NM | ||||||||
Skilled mix by nursing days | 9.6 | % | 15.4 | % | NM | ||||||||
Skilled mix by nursing revenue | 14.0 | % | 36.0 | % | NM |
(1) | Same Facility results represent all facilities purchased prior to January 1, 2013. |
(2) | Transitioning Facility results represents all facilities purchased from January 1, 2013 to December 31, 2014. |
(3) | Recently Acquired Facility (Acquisitions) results represent all facilities purchased on or subsequent to January 1, 2015. |
(4) | Facility Closed represent the result of one facility closed during the three months ended March 31, 2016. These results were excluded from Same Facility results for three months ended March 31, 2016 and 2015 for comparison purposes. |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
Skilled Nursing Average Daily Revenue Rates: | |||||||||||||||||||||||||||||||
Medicare | $ | 578.81 | $ | 566.27 | $ | 557.05 | $ | 557.14 | $ | 488.89 | $ | 447.71 | $ | 558.04 | $ | 561.71 | |||||||||||||||
Managed care | 421.54 | 411.53 | 465.94 | 464.09 | 410.77 | 370.04 | 427.87 | 422.79 | |||||||||||||||||||||||
Other skilled | 466.22 | 479.49 | 349.83 | 325.21 | 394.25 | 672.04 | 438.70 | 464.13 | |||||||||||||||||||||||
Total skilled revenue | 500.30 | 501.46 | 478.46 | 484.83 | 449.86 | 464.48 | 488.13 | 497.92 | |||||||||||||||||||||||
Medicaid | 196.98 | 194.31 | 188.19 | 183.51 | 187.25 | 182.39 | 194.12 | 191.69 | |||||||||||||||||||||||
Private and other payors | 199.63 | 190.40 | 234.49 | 210.98 | 208.45 | 186.80 | 206.05 | 193.42 | |||||||||||||||||||||||
Total skilled nursing revenue | $ | 292.15 | $ | 287.85 | $ | 294.41 | $ | 280.61 | $ | 285.97 | $ | 242.06 | $ | 291.17 | $ | 284.54 |
Three Months Ended March 31, | |||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Percentage of Skilled Nursing Revenue: | |||||||||||||||||||||||
Medicare | 28.3 | % | 31.5 | % | 22.7 | % | 23.1 | % | 32.9 | % | 24.8 | % | 28.2 | % | 30.0 | % | |||||||
Managed care | 17.4 | 15.1 | 27.4 | 27.0 | 19.3 | 6.6 | 19.1 | 16.6 | |||||||||||||||
Other skilled | 7.9 | 6.7 | 6.7 | 3.7 | 5.6 | 8.4 | 7.3 | 6.3 | |||||||||||||||
Skilled mix | 53.6 | 53.3 | 56.8 | 53.8 | 57.8 | 39.8 | 54.6 | 52.9 | |||||||||||||||
Private and other payors | 7.9 | 8.0 | 8.3 | 9.1 | 7.7 | 19.5 | 8.0 | 8.5 | |||||||||||||||
Quality mix | 61.5 | 61.3 | 65.1 | 62.9 | 65.5 | 59.3 | 62.6 | 61.4 | |||||||||||||||
Medicaid | 38.5 | 38.7 | 34.9 | 37.1 | 34.5 | 40.7 | 37.4 | 38.6 | |||||||||||||||
Total skilled nursing | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
Same Facility | Transitioning | Acquisitions | Total | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Percentage of Skilled Nursing Days: | |||||||||||||||||||||||
Medicare | 14.2 | % | 16.0 | % | 12.0 | % | 11.6 | % | 19.2 | % | 13.4 | % | 14.7 | % | 15.2 | % | |||||||
Managed care | 12.0 | 10.5 | 17.3 | 16.3 | 13.5 | 4.3 | 13.0 | 11.2 | |||||||||||||||
Other skilled | 5.1 | 4.1 | 5.6 | 3.2 | 4.0 | 3.1 | 4.8 | 3.9 | |||||||||||||||
Skilled mix | 31.3 | 30.6 | 34.9 | 31.1 | 36.7 | 20.8 | 32.5 | 30.3 | |||||||||||||||
Private and other payors | 11.6 | 12.1 | 10.4 | 12.2 | 10.6 | 25.1 | 11.4 | 12.5 | |||||||||||||||
Quality mix | 42.9 | 42.7 | 45.3 | 43.3 | 47.3 | 45.9 | 43.9 | 42.8 | |||||||||||||||
Medicaid | 57.1 | 57.3 | 54.7 | 56.7 | 52.7 | 54.1 | 56.1 | 57.2 | |||||||||||||||
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 | ||||||||||
(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 March 31, | |||||||||||||||
2016 | 2015 | Change | % Change | ||||||||||||
Results: | (Dollars in thousands) | ||||||||||||||
Home health and hospice revenue: | |||||||||||||||
Home health services | $ | 13,908 | $ | 10,363 | $ | 3,545 | 34.2 | % | |||||||
Hospice services | 12,758 | 7,952 | 4,806 | 60.4 | |||||||||||
Total home health and hospice revenue | $ | 26,666 | $ | 18,315 | $ | 8,351 | 45.6 | % | |||||||
Home health services: | |||||||||||||||
Medicare Episodic Admissions | 2,157 | 1,384 | 773 | 55.9 | % | ||||||||||
Average Medicare Revenue per Completed Episode | 2,923 | 2,861 | 62 | 2.2 | % | ||||||||||
Hospice services: | |||||||||||||||
Average Daily Census | 843 | 536 | 307 | 57.3 | % |
Three Months Ended March 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
$ | % | $ | % | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Revenue: | |||||||||||||||
Medicaid | $ | 117,575 | 30.7 | % | $ | 101,628 | 33.2 | % | |||||||
Medicare | 110,278 | 28.8 | 94,356 | 30.8 | |||||||||||
Medicaid-skilled | 21,665 | 5.7 | 15,537 | 5.1 | |||||||||||
Total | 249,518 | 65.2 | 211,521 | 69.1 | |||||||||||
Managed Care | 64,543 | 16.8 | 46,330 | 15.1 | |||||||||||
Private and Other(1) | 69,173 | 18.0 | 48,678 | 15.8 | |||||||||||
Total revenue | $ | 383,234 | 100.0 | % | $ | 306,529 | 100.0 | % | |||||||
(1) Private and other payors also includes revenue from urgent care centers and other ancillary operations. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Net income attributable to The Ensign Group, Inc. | $ | 9,172 | $ | 15,170 | ||||
Non-GAAP adjustments | ||||||||
Results at urgent care centers, including noncontrolling interests(a) | (195 | ) | (169 | ) | ||||
Costs incurred for facilities currently being constructed and other start-up operations(b) | 2,798 | 146 | ||||||
Results at closed facility, including continued obligations and closing expenses(c) | 8,184 | — | ||||||
Acquisition related costs(d) | 145 | 152 | ||||||
Patient base amortization(e) | 276 | 284 | ||||||
Stock-based compensation expense(f) | 1,885 | 1,493 | ||||||
Professional service fees(g) | — | 26 | ||||||
Write off of deferred financing fee(h) | 197 | — | ||||||
Amortization of deferred financing fee related to spin-off transaction debt(i) | 28 | 46 | ||||||
Costs incurred related to new systems implementation(j) | 678 | 287 | ||||||
Break up fee, net of costs, received in connection with a public auction(k) | — | (1,019 | ) | |||||
Tax effect on Non-GAAP adjustments(l) | (5,337 | ) | (454 | ) | ||||
Non-GAAP Net Income | 17,831 | 15,962 | ||||||
Diluted Earnings Per Share As Reported | ||||||||
Net Income | $ | 0.18 | $ | 0.31 | ||||
Average number of shares outstanding | $ | 52,334 | $ | 49,652 | ||||
Adjusted Diluted Earnings Per Share | ||||||||
Net Income | $ | 0.34 | $ | 0.32 | ||||
Average number of shares outstanding | $ | 52,334 | $ | 49,652 | ||||
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Consolidated Statements of Income Data: | ||||||||
Net income | $ | 9,290 | $ | 15,088 | ||||
Less: net income (loss) attributable to noncontrolling interests | 118 | (82 | ) | |||||
Interest expense, net | 1,136 | 501 | ||||||
Provision for income taxes | 5,889 | 9,585 | ||||||
Depreciation and amortization | 8,298 | 6,517 | ||||||
EBITDA | $ | 24,495 | $ | 31,773 | ||||
Rent—cost of services | 26,991 | 18,966 | ||||||
EBITDAR | $ | 51,486 | $ | 50,739 | ||||
EBITDA | $ | 24,495 | $ | 31,773 | ||||
Adjustments to EBITDA: | ||||||||
Urgent care center earnings(a) | (1,057 | ) | (940 | ) | ||||
Breakup fee, net of costs, received in connection with a public auction(b) | — | (1,019 | ) | |||||
Acquisition related costs(c) | $ | 145 | $ | 152 | ||||
Stock-based compensation expense(d) | 1,885 | 1,493 | ||||||
Costs incurred for facilities currently being constructed and other start-up operations(e) | 1,363 | 146 | ||||||
Costs incurred related to new systems implementation(f) | 678 | 287 | ||||||
Professional service fees(g) | — | 26 | ||||||
Results at closed facility, including continued obligations and closing expenses(h) | 8,125 | — | ||||||
Rent related to items(a), (b), and (h) above | 1,940 | 489 | ||||||
Adjusted EBITDA | $ | 37,574 | $ | 32,407 | ||||
Facility rent—cost of services | $ | 26,991 | $ | 18,966 | ||||
Less: related to items (d) and (h) above | (1,940 | ) | (489 | ) | ||||
Adjusted EBITDAR | $ | 62,625 | $ | 50,884 | ||||
(b) | Breakup fee, net of costs, received in connection with a public auction. |
(d) | Stock-based compensation expense incurred during the three months ended March 31, 2016 and 2015. |
(e) | Costs incurred for facilities currently being constructed and other start-up operations. This amount excluded rent, depreciation and interest of $1.4 million for the three months ended March 31, 2016. |
(f) | Costs incurred related to new systems implementation. |
(g) | Professional service fees include costs incurred to recognize income tax credits which contributed to a decrease in effective tax rate. |
(h) | Results at closed facility during three months ended March 31, 2016, including fair value of continued obligation under the lease and related closing expenses $7.9 million and operating loss of $0.2 million. This amount excluded rent, depreciation and interest of $0.1 million. |
THE ENSIGN GROUP, INC. | ||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||||
(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 March 31, | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
TSA Services | Home Health and Hospice | |||||||||||||||||
Statements of Income Data: | ||||||||||||||||||
Income from operations, excluding general and administrative expense(a) | $ | 30,856 | $ | 37,298 | $ | 3,176 | $ | 2,675 | ||||||||||
Depreciation and amortization | 6,302 | 4,949 | 268 | 221 | ||||||||||||||
EBITDA | $ | 37,158 | $ | 42,247 | $ | 3,444 | $ | 2,896 | ||||||||||
Rent—cost of services | 25,987 | 18,163 | 378 | 258 | ||||||||||||||
EBITDAR | $ | 63,145 | $ | 60,410 | $ | 3,822 | $ | 3,154 | ||||||||||
EBITDA | $ | 37,158 | $ | 42,247 | $ | 3,444 | $ | 2,896 | ||||||||||
Adjustments to EBITDA: | ||||||||||||||||||
Stock-based compensation expense(b) | 1,121 | 880 | 66 | 61 | ||||||||||||||
Costs at facilities currently being constructed and other start-up operations(c) | 1,332 | 146 | 31 | — | ||||||||||||||
Acquisition related costs(d) | 145 | 152 | — | — | ||||||||||||||
Results at closed facility, including continued obligations and closing expenses(e) | 8,125 | — | — | — | ||||||||||||||
Rent related to item(c) and (e)above | 1,369 | — | 9 | — | ||||||||||||||
Adjusted EBITDA | $ | 49,250 | $ | 43,425 | $ | 3,550 | $ | 2,957 | ||||||||||
Rent—cost of services | 25,987 | 18,163 | 378 | 258 | ||||||||||||||
Less: rent related to items(c) and (e)above | (1,369 | ) | — | (9 | ) | — | ||||||||||||
Adjusted EBITDAR | $ | 73,868 | $ | 61,588 | $ | 3,919 | $ | 3,215 | ||||||||||
(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 months ended March 31, 2016 and 2015. | ||||||||||||||||||
(c) Costs incurred for facilities currently being constructed and other start-up operations. This amount excluded rent, depreciation and interest of $1.4 million for the three months ended March 31, 2016. | ||||||||||||||||||
(d) Costs incurred to acquire operations which are not capitalizable. | ||||||||||||||||||
(e) Results at closed facility during three months ended March 31, 2016, including fair value of continued obligation under lease agreement and related closing expenses of $7.9 million and operating loss of $0.2 million. This amount excluded rent, depreciation and interest of $0.1 million. | ||||||||||||||||||