Ensign Group Inc (ENSG) Reports Q3 2023 Earnings and Raises 2023 Earnings Guidance
Ensign Group Inc (NASDAQ:ENSG) reported a 22.2% increase in consolidated GAAP and adjusted revenues for Q3 2023, amounting to $940.8 million.
GAAP net income for the quarter was $63.9 million, a 13.7% increase over the prior year quarter.
Adjusted net income for Q3 2023 was $69.0 million, a 16.6% increase over the prior year quarter.
Ensign Group Inc (NASDAQ:ENSG) raises its annual 2023 earnings guidance to between $4.73 to $4.79 per diluted share.
Ensign Group Inc (NASDAQ:ENSG), a leading provider of post-acute healthcare services, announced its operating results for the third quarter of 2023 on October 25, 2023. The company reported GAAP diluted earnings per share of $1.11 and adjusted earnings per share of $1.20 for the quarter ended September 30, 2023.
Financial Highlights
Ensign Group Inc (NASDAQ:ENSG) reported GAAP diluted earnings per share for the quarter at $1.11 and adjusted diluted earnings per share was $1.20, an increase of 12.1% and 15.4%, respectively, over the prior year quarter. The company's GAAP net income was $63.9 million and adjusted net income was $69.0 million for the quarter, an increase of 13.7% and 16.6%, respectively, over the prior year quarter.
Consolidated GAAP and adjusted revenues for the quarter were $940.8 million, an increase of 22.2% over the prior year quarter. Total skilled services revenue for the quarter was $903.0 million, an increase of 22.1% over the prior year quarter, and total skilled services segment income was $117.8 million, an increase of 15.8% over the prior year quarter.
Company's Performance and Future Outlook
Ensign Group Inc (NASDAQ:ENSG) CEO, Barry Port, expressed satisfaction with the company's strong quarter and the continued improvement in clinical and financial results across the portfolio. The company also reported an increase in same store and transitioning combined managed care revenue by 13.8% and managed care census increased by 6.6%, over the prior year quarter.
Due to solid results during the quarter, the company is increasing its annual 2023 earnings guidance to between $4.73 to $4.79 per diluted share, up from $4.70 to $4.78 per diluted share. The company is also raising its annual revenue guidance to between $3.72 billion and $3.73 billion, up from its previous guidance of $3.69 billion to $3.73 billion.
Financial Health
Ensign Group Inc (NASDAQ:ENSG) reported strong liquidity with approximately $467.9 million of cash on hand and $593.3 million of available capacity under its line-of-credit. The company's guidance is based on diluted weighted average common shares outstanding of approximately 57.7 million and a 25.0% tax rate.
Acquisition Activity
Ensign Group Inc (NASDAQ:ENSG) continues to see a steady pipeline of new opportunities and has added six new operations and four real estate assets during the quarter. The company's growing portfolio consists of 296 healthcare operations, 26 of which also include senior living operations, across thirteen states.
Explore the complete 8-K earnings release (here) from Ensign Group Inc for further details.
This article first appeared on GuruFocus.
