Financial Data and Key Metrics Changes - The company reported GAAP diluted earnings per share of $1.42, an increase of 6% year-over-year, and adjusted diluted earnings per share of $1.64, an increase of 18% [32] - Consolidated GAAP revenue and adjusted revenues were both $1.3 billion, reflecting a 19.8% increase [32] - GAAP net income was $83.8 million, up 6.9%, while adjusted net income reached $96.5 million, an increase of 18.9% [32] - Cash and cash equivalents stood at $443.7 million, with cash flows from operations amounting to $381 million [32] - The company raised its 2025 earnings guidance to between $6.48-$6.54 per diluted share, up from a previous range of $6.34-$6.46 [16][36] Business Line Data and Key Metrics Changes - Same-Store occupancy increased to 83%, while transitioning occupancy rose to 84.4%, both representing all-time highs [8] - Skilled days increased for Same-Store operations by 5.1% and for transitioning operations by 10.9% year-over-year [10] - Medicare revenue increased by 10% for Same-Store operations and 8.8% for transitioning operations [10] - Managed care revenue saw increases of 7.1% for Same-Store and 24.3% for transitioning operations [10] Market Data and Key Metrics Changes - Ensign-affiliated facilities outperformed peers by 24% at the state level and 33% at the county level according to CMS data [7] - The U.S. population aged 80 and older is projected to grow by over 50% in the next decade, creating sustained demand for skilled nursing services [9] Company Strategy and Development Direction - The company continues to focus on organic growth through improved occupancy and skilled mix, with a strong emphasis on clinical excellence [10][11] - Ensign has successfully sourced, underwritten, and transitioned 73 new operations since 2024, indicating a solid pipeline for future growth [11][12] - The company maintains a disciplined approach to acquisitions, avoiding overpriced deals while enhancing capabilities within existing operations [12][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential driven by demographic trends and the company's ability to capture market share [9][10] - The company is confident in achieving its revised earnings guidance due to strong performance and positive momentum in occupancy and skilled mix [36] - Management highlighted improvements in labor metrics, including turnover and stable wage growth, which are critical for maintaining operational success [15] Other Important Information - Standard Bearer Healthcare REIT generated rental revenue of $32.6 million for the quarter, with $27.6 million from Ensign-affiliated operations [25] - The company has a long history of paying dividends, having increased the annual dividend for 22 consecutive years [35] Q&A Session Summary Question: How should we think about the room to run on the skilled mix side, specifically in the same-store portfolio? - Management noted that there is substantial potential for skilled mix growth in facilities like Beacon, with ongoing efforts to add services that meet the needs of acute providers and managed care partners [45][48] Question: Can you talk about the managed care contracting environment in new markets like Alabama? - Management indicated that establishing managed care partnerships takes time, but they have relationships in overlapping states that facilitate this process [50] Question: What is driving the heightened pace of deal activity this year? - Management clarified that the recent deals were driven by long-standing relationships and emotional decisions from sellers rather than special market conditions [58][60] Question: Are you seeing any traction with managed care companies regarding behavioral health? - Management confirmed ongoing traction in adding behavioral units in several facilities, indicating strong relationships with county programs and managed care partners [63]