Ensign Group(US:ENSG)2025-11-03 21:18Financial Performance - GAAP diluted earnings per share for Q3 2025 was $1.42, a 6.0% increase year-over-year, while adjusted diluted earnings per share was $1.64, an 18.0% increase year-over-year[5] - GAAP net income for the quarter was $83.8 million, up 6.9% from the prior year, and adjusted net income was $96.5 million, an 18.9% increase year-over-year[5] - Consolidated GAAP and adjusted revenue for the quarter was $1.30 billion, an increase of 19.8% over the prior year[5] - Total revenue for Q3 2025 reached $1,296,405, a 19.9% increase from $1,081,776 in Q3 2024[22] - Service revenue increased to $1,289,779 in Q3 2025, up 19.8% from $1,076,092 in Q3 2024[22] - Net income attributable to The Ensign Group, Inc. for Q3 2025 was $83,844, representing a 6.3% increase from $78,444 in Q3 2024[28] - Non-GAAP net income for Q3 2025 was $96,474, a 19.0% increase compared to $81,141 in Q3 2024[28] - Adjusted EBITDA for Q3 2025 reached $151,090,000, up 22.0% from $123,884,000 in Q3 2024[34] - Total expenses for Q3 2025 were $1,200,187, a 20.9% increase from $992,438 in Q3 2024[22] Revenue Growth - Total skilled services revenue reached $1.24 billion for the quarter, representing a 19.9% increase compared to the prior year[5] - The company raised its annual 2025 earnings guidance to between $6.48 and $6.54 per diluted share, reflecting an 18.4% increase over 2024 results[8] - Annual revenue guidance was increased to $5.05 billion to $5.07 billion, up from $4.99 billion to $5.02 billion, accounting for current quarter growth and anticipated acquisitions[8] - Skilled services revenue for Q3 2025 was $1,239,096,000, representing a 19.9% increase from $1,033,113,000 in Q3 2024[39] - For the three months ended September 30, 2025, total service revenue reached $1,289,779,000, a 19.8% increase from $1,076,092,000 in 2024[49] - For the nine months ended September 30, 2025, total service revenue was $3,678,233,000, a 18.2% increase from $3,111,151,000 in 2024[51] Operational Metrics - Same Facilities and Transitioning Facilities occupancy rates improved to 83.0% and 84.4%, marking increases of 2.1% and 3.6% respectively from the prior year[5] - The number of facilities at the end of Q3 2025 increased to 314, up 11.3% from 282 in Q3 2024[39] - Actual patient days in Q3 2025 totaled 2,772,062, a 15.1% increase from 2,407,709 in Q3 2024[39] - Occupancy percentage for operational beds improved to 82.3% in Q3 2025, compared to 80.9% in Q3 2024[39] - The number of recently acquired facilities increased to 56, up from 24 in 2024, marking a substantial expansion[41] Cash Flow and Liquidity - Operating cash flow for the nine months ended September 30, 2025, was $380,950, up 54.4% from $246,730 in the same period of 2024[26] - Ensign's liquidity remains strong with approximately $443.7 million in cash and $592.6 million available under its line of credit[9] - The company reported a net decrease in cash and cash equivalents of $20,930 for the nine months ended September 30, 2025[26] Dividends and Shareholder Returns - The company paid a quarterly cash dividend of $0.0625 per share of common stock, indicating a commitment to continue dividend payments in the future[13] Non-GAAP Financial Measures - Adjusted EBITDA excludes stock-based compensation expense, acquisition-related costs, and other specific expenses to provide a clearer view of operating performance[59] - The company believes that adjusted financial measures provide important supplemental information for evaluating operating performance[59] - The company acknowledges that non-GAAP financial measures may not be comparable with similar measures from other companies in the industry[59] - The company emphasizes that these non-GAAP measures should not be relied upon to the exclusion of GAAP financial measures[59]