Ensign Group(US:ENSG)2026-02-04 21:10Financial Performance - GAAP diluted earnings per share for the year was $5.84, an increase of 14.1% over the prior year, and for the quarter was $1.61, an increase of 18.4% over the prior year quarter [2]. - Adjusted diluted earnings per share for the year was $6.57, an increase of 19.5% over the prior year, and for the quarter was $1.82, an increase of 22.1% over the prior year quarter [2]. - Consolidated revenue for the year was $5.06 billion, an increase of 18.7% over the prior year, and for the quarter was $1.36 billion, an increase of 20.2% over the prior year quarter [2]. - Total skilled services revenue was $4.84 billion for the year, an increase of 18.7% over the prior year, and $1.30 billion for the quarter, an increase of 20.2% over the prior year quarter [2]. - Total revenue for the year ended December 31, 2025, was $5,057,841, an increase of 18.7% from $4,260,485 in 2024 [19]. - Service revenue for the three months ended December 31, 2025, reached $1,353,885, up 20.2% from $1,126,374 in the same period of 2024 [19]. - Net income attributable to The Ensign Group, Inc. for the year ended December 31, 2025, was $343,971, representing a 15.4% increase from $297,973 in 2024 [24]. - Operating cash flow for the year ended December 31, 2025, was $564,270, compared to $347,186 in 2024, indicating a significant increase of 62.5% [22]. - Total expenses for the year ended December 31, 2025, were $4,632,535, an increase of 18.7% from $3,902,181 in 2024 [19]. - Non-GAAP net income for the year ended December 31, 2025, was $386,602, an increase of 20.6% from $320,497 in 2024 [24]. - Adjusted EBITDA for the year ended December 31, 2025, reached $602,350, up 22.8% from $490,392 in 2024 [31]. - Adjusted EBT for the year ended December 31, 2025, was $515,860, a 20.5% increase from $427,976 in 2024 [33]. - Segment income for skilled services was $616,397 for the year ended December 31, 2025, compared to $518,463 in 2024, indicating a 18.9% increase [54]. Acquisitions and Operations - The company acquired 17 new operations during the quarter, bringing the total acquisitions in 2025 to 51 [6]. - Ensign's portfolio consists of 378 healthcare operations across 17 states, with 160 real estate assets owned [8]. - The number of facilities increased to 326 in Q4 2025, a growth of 14.0% compared to 286 in Q4 2024 [37]. - The number of facilities at period end rose to 326, representing a 14.0% increase from 286 in 2024 [40]. - The company maintained 48 transitioning facilities with stable revenue performance [40]. Occupancy and Patient Metrics - Same Facilities and Transitioning Facilities occupancy for the year were 82.9% and 84.2%, respectively, and for the quarter were 83.8% and 84.9%, respectively, showing increases over the prior year [2]. - Actual patient days for Q4 2025 totaled 2,869,685, reflecting a 16.2% increase from 2,469,517 in Q4 2024 [37]. - Occupancy percentage for operational beds improved to 83.2% in Q4 2025, up from 80.9% in Q4 2024 [37]. - Actual patient days reached 10,795,373, an increase of 14.5% compared to 9,431,825 in 2024 [40]. - Occupancy percentage for operational beds improved to 82.2%, up 2.1% from 80.5% in 2024 [40]. Revenue Sources - Medicaid revenue for the year ended December 31, 2025, was $2,002,007, representing 39.8% of total revenue, slightly up from 39.7% in 2024 [51]. - Medicare revenue increased to $1,194,554, accounting for 23.7% of total revenue, down from 24.9% in 2024 [51]. - Managed care revenue for the year ended December 31, 2025, was $944,316, representing 18.8% of total revenue, up from 18.6% in 2024 [51]. - Total Medicaid and Medicare revenue combined was $3,497,683, making up 69.5% of total service revenue, down from 70.9% in 2024 [51]. Stock and Dividends - The company reported a strong liquidity position with approximately $503.9 million of cash on hand and $591.6 million of available capacity under its line-of-credit [6]. - The company plans to continue its dividend payments, having increased the dividend for the 23rd consecutive year [10]. - The company incurred $12,924 in stock-based compensation expense for the three months ended December 31, 2025, compared to $9,820 in the same period of 2024 [24]. - Stock-based compensation expense for Q4 2025 was $12,924, compared to $9,820 in Q4 2024, indicating a 31.5% increase [33]. Revenue Rates and Mix - The average daily revenue rate for Medicare increased to $817.48 from $784.12 in 2024 [44]. - The percentage of skilled nursing revenue from Medicare rose to 21.4% from 20.3% in 2024 [46]. - Skilled nursing revenue mix showed an increase in Medicare from 20.7% in 2024 to 21.4% in 2025 for same facilities [47]. - The percentage of skilled nursing days covered by Medicaid was 57.8% in 2025, slightly down from 58.4% in 2024 [47]. - Recently acquired facilities generated skilled services revenue of $653,063, a significant increase from $163,826 in 2024 [40]. - Same facility skilled services revenue grew by 6.5% to $3,424,421 from $3,214,896 in 2024 [40]. - Recently acquired facilities generated $221,949 in skilled services revenue in Q4 2025, a significant increase from $74,449 in Q4 2024 [38]. - The skilled mix by nursing revenue for Q4 2025 was 49.2%, up from 47.8% in Q4 2024, showing a 2.9% improvement [37]. - The skilled mix by nursing days improved to 30.7%, up from 29.9% in 2024 [40].