The Ensign Group (ENSG) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with consolidated revenue of $1.04B, up 12.5% year-over-year, and strong growth in occupancy and skilled mix days, particularly in managed care populations.

• Net income rose 11% to $71M, with GAAP diluted EPS of $1.22 (up 8.9%) and adjusted EPS of $1.32 (up 13.8%).

• Expanded portfolio to 312 operations across 14 states, adding 15 new operations and multiple real estate assets, including expansion into Tennessee.

• Lower employee turnover for the 11th consecutive quarter and reduced staffing agency usage for the 6th quarter.

• Authorized a new $20M stock repurchase program and maintained a quarterly dividend of $0.06 per share, marking 21 consecutive years of annual increases.

Financial highlights

• Q2 2024 consolidated revenue: $1.04B (up 12.5% YoY); skilled services revenue: $991.3M (up 12.1% YoY).

• Q2 2024 GAAP net income: $71M; adjusted net income: $76.4M (up 15.3% YoY).

• Q2 2024 adjusted EBITDA: $117.2M; adjusted EBITDAR: $170.5M.

• Cash and cash equivalents at June 30, 2024: $477.3M; available credit: $573.1M.

• Paid a quarterly cash dividend of $0.06 per share.

Outlook and guidance

• 2024 annual revenue guidance raised to $4.20B–$4.22B; diluted EPS guidance increased to $5.38–$5.50.

• Midpoint of 2024 EPS guidance is 14% above 2023 and 31% above 2022.

• Guidance based on 58.5M diluted shares, 25% tax rate, and includes closed and expected 2024 acquisitions.

• Management expects continued growth through acquisitions and operational improvements, with a focus on increasing occupancy and skilled mix.

• Q4 expected to be seasonally stronger, with margins consistent with historical trends.