NASDAQ$ENSG

The Ensign Group Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Ensign Group reported record operating results and returned all Provider Relief Funds received through the CARES Act for Q2 2020.

Ensign Group reported a strong second quarter with GAAP diluted earnings per share of $0.73 and adjusted earnings per share of $0.78. Consolidated GAAP revenues for the quarter were $584.7 million. The company returned approximately $110.0 million in Provider Relief Funds received through the CARES Act.

  • GAAP diluted earnings per share increased by 97.3% year-over-year to $0.73.
  • Adjusted diluted earnings per share increased by 100.0% year-over-year to $0.78.
  • Consolidated GAAP revenues increased by 18.6% year-over-year to $584.7 million.
  • The company returned all CARES Act Provider Relief Funds, representing approximately $110.0 million.

Headline financials

Total Revenue

$585M

Previous: $576M+1.6%
EPS (adj)

$0.78

Previous: $0.54+44.4%
Capital Expenditures

-$364K

Previous: -$35.8M+99.0%
Free Cash Flow

$39.9M

Previous: -$7.15M+657.6%
Net Income

$40.2M

Previous: $28.6M+40.7%
Operating Income

$55.4M

Previous: $37.8M+46.5%
Gross Profit

$133M

Previous: $119M+12.1%
Cash & Equivalents

$202M

Previous: $39M+416.7%
Total Assets

$2.49B

Previous: $2.32B+7.2%
Stock-Based Comp

$3.53M

Previous: $3.8M-7.1%

Revenue & EPS history

Ensign Group · Revenue · Quarterly

$585M

Q2 2020+1.6%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Ensign Group · $924M total across 2 segments · Q3 2023

  • Skilled Services
    $903M+22.1%
  • Standard Bearer
    $21M+12.3%

Forward guidance

The company increased its 2020 annual earnings guidance to $3.00 to $3.10 per diluted share and affirmed its previous annual revenue guidance of $2.42 billion to $2.45 billion.

Tailwinds

  • Increased 2020 annual earnings guidance to $3.00 to $3.10 per diluted share.
  • Affirmed previous annual revenue guidance of $2.42 billion to $2.45 billion.
  • Company is optimistic that occupancies will begin to recover once community spread begins to slow.
  • Company is well positioned to operate within the current environment.
  • Company is in a strong position to return to its pre-COVID path when things normalize.

Headwinds

  • The company expects to continue to see a significant impact from the pandemic on the third quarter stretching into the fourth quarter.
  • Pathway to achieving these results will differ significantly from our typical quarterly cadence.
  • As this virus continues to spread in unpredictable ways and as testing continues to become more and more available, we will continue to see positive cases in our operations throughout the third quarter.
  • Company’s portfolio has experienced an increase in COVID-19 cases in its buildings in correlation with the trends occurring in the local community.
  • Occupancies are lower than they were a year ago at this time.

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 Q2 2020

Historical avgQ2 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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