NASDAQ$ENSG

The Ensign Group Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Ensign Group reported record operating results, with GAAP diluted earnings per share of $0.73 and adjusted earnings per share of $0.77. Consolidated GAAP revenues increased by 25.1% over the prior year quarter. The company maintained its 2020 annual earnings and revenue guidance.

The Ensign Group announced record operating results for Q1 2020, with a GAAP diluted EPS of $0.73 and an adjusted EPS of $0.77. Consolidated GAAP revenues reached $589.6 million, a 25.1% increase year-over-year. Despite the impact of COVID-19 in the latter part of the quarter, the company is maintaining its 2020 annual earnings and revenue guidance.

  • GAAP diluted earnings per share increased by 87.2% year-over-year to $0.73.
  • Adjusted diluted earnings per share increased by 92.5% year-over-year to $0.77.
  • Consolidated GAAP revenues increased by 25.1% year-over-year to $589.6 million.
  • Same store occupancy was 80.1%, a 28 basis point increase over the prior year.

Headline financials

Total Revenue

$590M

Previous: $549M+7.4%
EPS (adj)

$0.77

Previous: $0.55+40.0%
Capital Expenditures

$0.00

Previous: -$13.6M+100.0%
Free Cash Flow

$40.8M

Previous: $13.7M+197.6%
Net Income

$40.8M

Previous: $27.4M+49.2%
Operating Income

$56.8M

Previous: $37.8M+50.2%
Gross Profit

$135M

Previous: $119M+13.3%
Cash & Equivalents

$63.2M

Previous: $37.8M+67.1%
Total Assets

$2.39B

Previous: $2.22B+7.6%
Stock-Based Comp

$3.24M

Previous: $2.46M+31.7%

Revenue & EPS history

Ensign Group · Revenue · Quarterly

$590M

Q1 2020+7.4%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Ensign Group · $558M total across 1 segment · Q1 2020

  • Skilled Services
    $558M+24.3%

Forward guidance

The company is maintaining its 2020 annual earnings guidance of $2.50 to $2.58 per diluted share and annual revenue guidance of $2.42 billion to $2.45 billion.

Tailwinds

  • Better-than-expected results in the first quarter
  • Implementation of certain cost reduction initiatives
  • Positive news in both reimbursement and stimulus funding
  • Signs of stabilization in occupancy in many markets
  • Optimism that occupancies will continue to recover in the second half of the year as hospitals reopen and vital elective procedures begin to take place.

Headwinds

  • Significant impact from the pandemic on second quarter
  • Significant impact from the pandemic bleeding into the third quarter.
  • Uncertainty regarding the full impact of COVID-19 on the business.
  • Potential for resurgence of the COVID-19 pandemic.
  • Pathway to achieving results will differ significantly from previous guidance and the quarterly cadence has changed

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.7%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+4.9%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+21.1%

Q2 2020

Best reaction

-14.9%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-5.8%-10.2%
Q4 2025+13.8%+17.8%+19.7%
Q3 2025-0.1%-2.1%-3.2%
Q2 2025+0.1%+1.8%+1.2%
Q1 2025+0.7%+2.9%+14.9%
Q4 2024-8.7%-13.3%-12.4%
Q3 2024+1.9%+4.6%-2.4%
Q2 2024+4.5%+6.5%+8.4%
Q1 2024-1.5%-2.0%+2.4%
Q4 2023+6.7%+3.9%+7.7%
Q3 2023-1.4%-1.4%+13.3%
Q2 2023+1.4%+3.2%+7.0%
Q1 2023-5.7%-4.6%-13.1%
Q4 2022-1.7%-4.4%-2.7%
Q3 2022-1.9%+1.8%+6.7%
Q2 2022+9.5%+6.5%+7.0%
Q1 2022-1.4%-3.8%+1.1%
Q4 2021+7.9%+6.0%+15.9%
Q3 2021+8.3%+11.3%+10.6%
Q2 2021-2.5%-1.3%-3.8%
Q1 2021-3.3%-2.5%-6.3%
Q4 2020+0.4%-2.1%-6.3%
Q3 2020+2.8%+4.8%+23.2%
Q2 2020+21.1%+21.5%+20.9%
Q1 2020+2.6%+2.6%+22.6%
Q4 2019+11.6%+13.9%-2.5%
Q3 2019+1.1%+1.9%+3.9%
Q2 2019-10.3%-15.7%-17.2%
Q1 2019-1.0%+5.0%+4.2%
Q4 2018+11.3%+10.0%+10.2%
Q3 2018+11.2%+20.5%+21.1%
Q2 2018-2.7%-0.1%+8.4%
Q1 2018+12.4%+17.8%+30.7%
Q4 2017+7.5%+8.7%+20.1%
Q3 2017-0.8%-0.2%-2.9%
Q2 2017-7.4%-7.3%-4.4%
Q1 2017+10.4%+9.5%+2.4%
Q4 2016-14.9%-15.5%-8.9%
Q3 2016+3.4%+5.3%+20.7%
Q2 2016-12.2%-8.9%-12.6%
Q1 2016+1.1%
Q4 2015-5.6%
Q3 2015+13.0%
Q2 2015-0.8%
Q1 2015+5.7%
Q4 2014-6.0%
Q3 2014+5.3%
Q2 2014-1.9%
Q1 2014-2.0%
Q4 2013-1.0%
Q3 2013+3.5%
Q2 2013-3.9%
Q1 2013-5.3%
Q4 2012+3.1%
Q3 2012-5.1%
Q2 2012+2.6%
Q1 2011-0.7%
Q1 2012-0.7%
Q4 2011+7.7%
Q4 2009+7.7%
Q3 2011+12.7%
Q3 2010+12.7%
Q4 2010+1.2%
Q2 2010+1.2%
Q2 2011+1.2%
Q1 2010-3.4%

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