NASDAQ$ENSG

The Ensign Group Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Ensign Group reported record results driven by excellent clinical and financial performance, with improvements in occupancy, skilled revenue, and managed care revenues. Increased annual earnings and revenue guidance, reflecting confidence in continued operational success and growth potential.

The Ensign Group reported a strong second quarter with GAAP diluted earnings per share of $1.12 and adjusted earnings per share of $1.16. The company saw increases in skilled services revenue and segment income, along with improvements in same store and transitioning occupancy and revenue. Due to this solid performance, the company increased its annual 2023 earnings and revenue guidance.

  • GAAP diluted earnings per share was $1.12, and adjusted diluted earnings per share was $1.16, up 10.9% and 14.9% respectively year-over-year.
  • GAAP net income was $64.0 million, and adjusted net income was $66.3 million, up 10.9% and 15.4% respectively year-over-year.
  • Total skilled services revenue was $884.2 million, up 25.9% year-over-year, with segment income increasing by 14.4%.
  • Same store and transitioning occupancy increased by 4.0% and 3.3%, respectively year-over-year.

Headline financials

Total Revenue

$921M

Previous: $732M+25.8%
EPS (adj)

$1.16

Previous: $1.01+14.9%
Free Cash Flow

$64M

Previous: $57.7M+10.9%
Net Income

$64M

Previous: $57.7M+10.9%
Operating Income

$77.9M

Previous: $78.2M-0.5%
Gross Profit

$199M

Previous: $169M+17.7%
Cash & Equivalents

$420M

Previous: $286M+47.1%
Total Assets

$3.95B

Previous: $3.12B+26.5%
Stock-Based Comp

$8.88M

Previous: $5.62M+58.1%

Revenue & EPS history

Ensign Group · Revenue · Quarterly

$921M

Q2 2023+25.8%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Ensign Group · $904M total across 2 segments · Q2 2023

  • Skilled Services
    $884M+25.9%
  • Standard Bearer
    $19.9M+13.1%

Forward guidance

The company raised its annual 2023 earnings guidance to between $4.70 and $4.78 per diluted share, up from $4.64 to $4.77 per diluted share, and raised its annual revenue guidance to between $3.69 billion and $3.73 billion, up from $3.68 billion to $3.73 billion.

Tailwinds

  • Solid skilled mix and occupancy growth.
  • Continued strength from recent acquisitions.
  • Earnings guidance increased to $4.70 to $4.78 per diluted share.
  • Revenue guidance increased to $3.69 billion to $3.73 billion.
  • Expect to announce a handful of new acquisition announcements in the very near future.

Headwinds

  • Operating environment continues to present challenges.
  • Persistent labor market pressures.
  • Return of more typical seasonality.
  • Transitional growth pains expected in recently acquired operations, including some pressures on occupancy.
  • Guidance excludes one-time charges, acquisition-related costs and amortization costs related to intangible assets acquired and share-based compensation.

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 2023

Historical avgQ2 2023

+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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