The Ensign Group Reports First Quarter 2025 Results; Raises Annual Earnings and Revenue Guidance

Core Insights - The Ensign Group, Inc. reported strong operating results for Q1 2025, with GAAP diluted earnings per share of $1.37 and adjusted earnings per share of$ 1.52, reflecting increases of 15.1% and 16.9% respectively compared to the prior year quarter [4][5]. Financial Performance - GAAP net income for the quarter was $80.3 million, up 16.6% year-over-year, while adjusted net income reached$ 89.0 million, an 18.0% increase [5]. - Consolidated revenue for the quarter was $1.17 billion, representing a 16.1% increase from the previous year [5]. - The company experienced significant growth in occupancy rates, with same store occupancy increasing to 82.6% and transitioning occupancy to 83.5%, both new highs [4][5]. Growth and Acquisitions - The company added 47 new operations since 2024, with 19 new operations added in the latest quarter alone, indicating a robust acquisition strategy [8][9]. - Ensign's portfolio now consists of 343 healthcare operations across 17 states, with a focus on both leasing and acquiring real estate [12][13]. Guidance and Future Outlook - Following a strong first quarter, the company raised its annual 2025 earnings guidance to between$ 6.22 and $6.38 per diluted share, which is a 14.5% increase over 2024 results [7]. - Annual revenue guidance was also increased to$ 4.89 billion to $4.94 billion, reflecting confidence in continued growth and acquisitions [7]. Operational Highlights - The skilled daily census increased by 7.6% and 9.9% for same store and transitioning operations respectively compared to the prior year quarter [5]. - Managed care census grew by 8.9% and 15.6% for same store and transitioning operations respectively, highlighting the company's operational strength [5]. Dividend and Share Repurchase - The company paid a quarterly cash dividend of$ 0.0625 per share and completed a $20 million share repurchase program, demonstrating strong liquidity and commitment to returning value to shareholders [14].