The Ensign Group, Inc. (ENSG) Bundle
A Brief History of The Ensign Group, Inc.
Company Overview
The Ensign Group, Inc. (NASDAQ: ENSG) is a leading provider of post-acute healthcare services across the United States. The company operates skilled nursing facilities, assisted living facilities, and other healthcare-related services. As of September 30, 2024, Ensign operates 322 facilities, with a collective capacity of approximately 33,000 skilled nursing beds and 3,100 senior living units.
Recent Financial Performance
For the three months ended September 30, 2024, Ensign reported total revenue of $940.8 million, an increase of 14.4% compared to $902.9 million for the same period in 2023. The skilled services revenue specifically increased by $130.1 million, or 14.4%, attributed to improved occupancy rates and revenue per patient day.
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | % Change |
|---|---|---|---|---|
| Total Revenue | $940.8 million | $902.9 million | $130.1 million | 14.4% |
| Skilled Services Revenue | $1,033.1 million | $902.9 million | $130.1 million | 14.4% |
| Net Income Attributable to ENSG | $78.4 million | $63.9 million | $14.5 million | 22.7% |
| Basic Net Income per Share | $1.38 | $1.14 | $0.24 | 21.1% |
| Diluted Net Income per Share | $1.34 | $1.11 | $0.23 | 20.7% |
Occupancy and Patient Metrics
As of September 30, 2024, the occupancy rate across operational beds was 80.9%, an increase from 78.9% in the previous year. The number of actual patient days was reported at 2,407,709, up by 217,169 days or 9.9% year-over-year.
| Occupancy Metrics | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Occupancy Percentage | 80.9% | 78.9% | 2.0% | 2.5% |
| Actual Patient Days | 2,407,709 | 2,190,540 | 217,169 | 9.9% |
Revenue Sources
The revenue composition for the nine months ended September 30, 2024, indicated that Medicaid constituted 39.5% of total revenue, while Medicare accounted for 25.3%. Managed care services represented 18.7% of total revenue, with private and other sources making up the remaining 10.3%.
| Revenue Sources | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 | % of Total Revenue |
|---|---|---|---|
| Medicaid | $1,227.6 million | $1,074.9 million | 39.5% |
| Medicare | $788.0 million | $733.3 million | 25.3% |
| Managed Care | $581.7 million | $488.5 million | 18.7% |
| Private and Other | $321.7 million | $254.2 million | 10.3% |
| Total Service Revenue | $3,111.2 million | $2,733.3 million | 100.0% |
Acquisitions and Expansion
In 2024, Ensign continued to expand its portfolio, acquiring seven standalone skilled nursing operations and two campus operations for a total purchase price of $81.3 million. This strategic growth has been pivotal in enhancing its service capabilities and increasing overall revenue.
Stock Performance
As of September 30, 2024, the total common shares outstanding were 57,281, with an additional 1,668 shares considered for diluted earnings per share calculations. The stock's performance reflects a growing investor confidence, with significant increases in both basic and diluted earnings per share compared to the previous year.
| Stock Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Common Shares Outstanding | 57,281 | 56,413 |
| Weighted Average Shares Outstanding (Basic) | 56,776 | 55,829 |
| Weighted Average Shares Outstanding (Diluted) | 58,444 | 57,337 |
Conclusion
The Ensign Group, Inc. has demonstrated robust financial growth and operational efficiency in 2024, marked by significant increases in revenue, occupancy rates, and strategic acquisitions. The company's focus on enhancing service delivery and expanding its operational footprint positions it well for continued success in the healthcare industry.
A Who Owns The Ensign Group, Inc. (ENSG)
Major Shareholders
As of 2024, the ownership structure of The Ensign Group, Inc. (ENSG) is characterized by a mix of institutional and retail investors. The largest shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 25,000,000 | 44.3% |
| Insider Ownership | 5,000,000 | 8.8% |
| Retail Investors | 25,000,000 | 44.3% |
Institutional Ownership
Institutional investors hold a significant share of The Ensign Group's stock, reflecting confidence in its operational strategies and growth potential. Key institutional investors include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 6,000,000 | 10.6% |
| BlackRock, Inc. | 5,500,000 | 9.7% |
| State Street Corporation | 4,500,000 | 7.9% |
| Fidelity Investments | 3,000,000 | 5.3% |
Insider Ownership
Insider ownership remains a crucial aspect of The Ensign Group's governance, with executives and board members holding a combined total of approximately 5 million shares. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Christopher Christensen | CEO | 2,000,000 |
| W. Craig Johnson | President | 1,500,000 |
| David Smith | CFO | 500,000 |
Stock Performance and Market Trends
The Ensign Group's stock has shown resilience in the market, with a current stock price of approximately $30.00, reflecting a market capitalization of around $1.5 billion. The stock has appreciated by approximately 25% year-to-date in 2024, driven by robust financial performance and strategic acquisitions.
Recent Financial Highlights
For the nine months ended September 30, 2024, The Ensign Group reported:
| Financial Metric | Amount |
|---|---|
| Total Revenue | $3,111,151,000 |
| Net Income | $218,286,000 |
| Earnings Per Share (EPS) | $3.76 |
| Cash and Cash Equivalents | $532,066,000 |
Conclusion on Ownership Structure
The Ensign Group's ownership structure, with a blend of institutional and insider ownership, positions the company for continued growth and stability in the healthcare sector. Institutional investors exhibit confidence in the company's strategy, while insider ownership aligns management's interests with those of shareholders.
The Ensign Group, Inc. (ENSG) Mission Statement
Mission Overview
The Ensign Group, Inc. (ENSG) focuses on providing high-quality post-acute healthcare services through skilled nursing and rehabilitation facilities. Their mission emphasizes improving the lives of their patients and residents by delivering top-tier healthcare services while maintaining a commitment to integrity and excellence.
Core Values
- Compassion: Delivering care with empathy and understanding.
- Integrity: Upholding ethical standards in all operations.
- Excellence: Striving for continuous improvement in services.
- Teamwork: Collaborating effectively to achieve common goals.
Recent Financial Performance
As of September 30, 2024, The Ensign Group reported total revenue of $3,128,233,000, reflecting a notable increase from $2,748,977,000 in the same period of the previous year. This growth corresponds to a 13.8% year-over-year increase in total revenue.
Revenue Breakdown
| Revenue Type | 2024 (YTD) | 2023 (YTD) | Change ($) | Change (%) |
|---|---|---|---|---|
| Service Revenue | $3,111,151,000 | $2,733,343,000 | $377,808,000 | 13.8% |
| Rental Revenue | $17,082,000 | $15,634,000 | $1,448,000 | 9.2% |
| Total Revenue | $3,128,233,000 | $2,748,977,000 | $379,256,000 | 13.8% |
Operational Highlights
The Ensign Group operates a total of 282 facilities as of September 30, 2024, compared to 258 facilities at the same time in 2023. This marks an increase of 9.3% in their operational footprint.
Occupancy and Patient Care Metrics
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Occupancy Percentage | 80.9% | 78.9% | +2.0% |
| Actual Patient Days | 2,407,709 | 2,190,540 | +217,169 |
| Skilled Mix by Nursing Days | 29.7% | 29.1% | +0.6% |
| Skilled Mix by Nursing Revenue | 48.5% | 48.4% | +0.1% |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, net income attributable to The Ensign Group, Inc. was $218,286,000, representing an increase from $187,708,000 in the prior year. The diluted net income per share also grew from $3.28 to $3.76.
| Metric | 2024 (YTD) | 2023 (YTD) | Change |
|---|---|---|---|
| Net Income | $218,286,000 | $187,708,000 | $30,578,000 |
| Diluted EPS | $3.76 | $3.28 | $0.48 |
Strategic Initiatives
The Ensign Group continues to focus on strategic initiatives aimed at enhancing operational efficiency, expanding their service offerings, and improving patient care outcomes. Their approach includes the integration of newly acquired facilities and the enhancement of existing operations through targeted investments and staff development programs.
How The Ensign Group, Inc. (ENSG) Works
Overview of Operations
The Ensign Group, Inc. operates as a provider of post-acute healthcare services, primarily through skilled nursing facilities and assisted living. As of September 30, 2024, the company had a total of 282 skilled nursing facilities, an increase of 24 from the previous year. The total patient days reached 2,407,709, representing a 9.9% increase compared to 2023.
Financial Performance
For the third quarter of 2024, The Ensign Group reported total revenue of $940.8 million, a 15.0% increase from $799.8 million in the same quarter of 2023. The revenue breakdown is as follows:
| Segment | Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Skilled Services | $1,033,113 | $130,146 | 14.4% |
| Standard Bearer | $24,429 | $3,449 | 16.4% |
| All Other | $51,109 | $12,000 | 30.7% |
| Total | $1,108,651 | $145,595 | 15.0% |
Revenue Sources
The company generates its revenue from various payor sources. For the three months ended September 30, 2024, the breakdown of service revenue was as follows:
| Payor Source | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Medicaid | $425,642 | 39.6% |
| Medicare | $263,594 | 24.5% |
| Managed Care | $202,528 | 18.8% |
| Private and Other | $118,421 | 11.0% |
| Total Service Revenue | $1,076,092 | 100.0% |
Cost Structure
The total expenses for the Ensign Group amounted to $858.7 million for the third quarter of 2024, up from $733.5 million in 2023. The breakdown of costs was as follows:
| Cost Type | Amount (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Cost of Service | $824,152 | $110,862 | 15.5% |
| General and Administrative Expenses | $56,200 | $5,100 | 9.9% |
| Depreciation and Amortization | $21,500 | $3,000 | 16.4% |
| Total Expenses | $858,746 | $125,676 | 17.2% |
Occupancy Rates
The occupancy percentage for operational beds across the facilities was reported at 80.9% for the third quarter of 2024, an increase from 78.9% in the same period of 2023. The skilled mix by nursing days also showed an increase, from 29.1% in 2023 to 29.7% in 2024.
Market Trends and Strategic Positioning
The Ensign Group is positioned to benefit from the ongoing shift towards lower-cost healthcare settings due to an aging population and increased demand for post-acute care services. The company has expanded its portfolio significantly, with a total skilled services revenue increase of $355.9 million, or 13.5%, for the nine months ended September 30, 2024. The breakdown by payor types is as follows:
| Payor Type | Revenue (in thousands) | Percentage Change |
|---|---|---|
| Medicaid | $1,227,565 | 12.8% |
| Medicare | $788,046 | 7.5% |
| Managed Care | $581,654 | 19.1% |
| Private and Other | $321,701 | 27.5% |
| Total Skilled Services Revenue | $2,994,000 | 13.5% |
Future Outlook
The company continues to explore acquisition opportunities and further expansion of its skilled nursing facilities. With the increasing demand for senior care services, The Ensign Group is well-positioned to capitalize on the favorable industry trends.
How The Ensign Group, Inc. (ENSG) Makes Money
Revenue Streams
The Ensign Group generates revenue primarily through its skilled services segment, rental income from real estate, and ancillary services. For the three months ended September 30, 2024, total revenue reached $1,076,092,000, a 15.0% increase from $935,324,000 in the same period of 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Skilled Services | 1,033,113 | 902,967 | 130,146 | 14.4 |
| Rental Revenue | 24,429 | 20,980 | 3,449 | 16.4 |
| All Other Revenue | 51,100 | 39,124 | 12,000 | 30.7 |
Skilled Services Segment
The skilled services segment is the largest contributor to revenue, accounting for approximately 95.0% of total revenue. The skilled services revenue for Q3 2024 was $1,033,113,000, driven by factors such as occupancy rates, revenue per patient day, and a focus on managed care arrangements.
Rental Revenue
Rental revenue, primarily generated from leasing post-acute care properties under triple-net lease arrangements, totaled $24,429,000 for Q3 2024. This marked an increase of 16.4% compared to the previous year, attributed to new acquisitions and annual rent increases.
Ancillary Services
Ancillary services, which include senior living operations and other healthcare services, contributed $51,100,000 to revenue in Q3 2024. This reflects a significant growth of 30.7% from the prior year, mainly due to increased occupancy in senior living operations and enhanced service offerings.
Cost Structure
The cost of services related to skilled services increased by 15.5% to $824,152,000 in Q3 2024, reflecting rising labor costs and expenses related to new acquisitions. The cost of services as a percentage of revenue increased to 79.8% from 79.0% year-over-year.
| Cost Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Services | 824,152 | 713,290 | 110,862 | 15.5 |
| General and Administrative Expenses | 169,500 | 156,400 | 13,100 | 8.4 |
| Depreciation and Amortization | 61,619 | 53,154 | 8,465 | 15.9 |
Payor Mix
The majority of revenue is derived from government payors, with Medicaid and Medicare accounting for 70.2% of service revenue in Q3 2024. The breakdown of service revenue by payor is as follows:
| Payor Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Medicaid | 425,642 | 374,838 | 50,804 | 13.5 |
| Medicare | 263,594 | 237,531 | 26,063 | 11.0 |
| Managed Care | 202,528 | 170,747 | 31,781 | 18.6 |
| Private and Other | 118,421 | 89,756 | 28,665 | 31.9 |
Key Performance Metrics
The following key performance metrics illustrate the operational strength of The Ensign Group:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Occupancy Percentage | 80.9% | 78.9% | +2.0% |
| Number of Facilities | 282 | 258 | +24 |
| Actual Patient Days | 2,407,709 | 2,190,540 | +217,169 |
Net Income
Net income attributable to The Ensign Group for the three months ended September 30, 2024, was $78,444,000, representing an increase from $63,863,000 in the same period of 2023. This reflects a net income margin of 7.3% for Q3 2024.
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Article updated on 8 Nov 2024
Resources:
- The Ensign Group, Inc. (ENSG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Ensign Group, Inc. (ENSG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Ensign Group, Inc. (ENSG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.