NASDAQ$ENSG

The Ensign Group Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Ensign Group reported record operating results driven by occupancy and skilled revenue growth.

Ensign Group reported record fourth-quarter results with GAAP diluted earnings per share of $1.06 and adjusted earnings per share of $1.10. Consolidated GAAP revenues for the year were $3.025 billion. The company issued 2023 earnings guidance of $4.60 to $4.74 per diluted share and revenue guidance of $3.55 billion to $3.62 billion.

  • GAAP diluted earnings per share for the quarter was $1.06, an increase of 23.3% over the prior year quarter.
  • Adjusted diluted earnings per share was $1.10, an increase of 13.4% over the prior year quarter.
  • Total skilled services revenue was $777.6 million for the quarter, an increase of 16.5% over the prior year quarter.
  • Standard Bearer revenue was $19.4 million for the quarter, an increase of 26.0% from prior year quarter.

Headline financials

Total Revenue

$810M

Previous: $693M+16.8%
EPS (adj)

$1.10

Previous: $0.97+13.4%
Net Income

$60.5M

Previous: $49M+23.6%
Operating Income

$75.2M

Previous: $65.6M+14.6%
Gross Profit

$135M

Previous: $122M+10.3%
Cash & Equivalents

$316M

Previous: $262M+20.6%
Total Assets

$3.45B

Previous: $2.85B+21.1%
Stock-Based Comp

$6.04M

Previous: $4.91M+23.0%

Revenue & EPS history

Ensign Group · Revenue · Quarterly

$810M

Q4 2022+16.8%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Ensign Group · $797M total across 2 segments · Q4 2022

  • Skilled Services
    $778M+16.5%
  • Standard Bearer
    $19.4M

Forward guidance

The company issued annual 2023 earnings guidance of $4.60 to $4.74 per diluted share and annual revenue guidance of $3.55 billion to $3.62 billion. The midpoint of this 2023 earnings guidance represents an increase of 12.8% over our 2022 results and is 28.3% higher than our 2021 results.

Tailwinds

  • Earnings guidance of $4.60 to $4.74 per diluted share for 2023.
  • Revenue guidance of $3.55 billion to $3.62 billion for 2023.
  • Midpoint of earnings guidance represents an increase of 12.8% over 2022 results.
  • Midpoint of earnings guidance is 28.3% higher than 2021 results.
  • Liquidity remains strong with approximately $316.3 million of cash on hand and $593.3 million of available capacity under its line-of-credit.

Headwinds

  • Guidance assumes normalized health insurance costs.
  • Guidance assumes current expectations regarding reimbursement rates and recovery of the COVID-19 pandemic.
  • Guidance excludes one-time charges.
  • Guidance excludes acquisition-related costs.
  • Guidance excludes 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 Q4 2022

Historical avgQ4 2022

+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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