The Ensign Group made healthy strides during the third quarter, reporting adjusted earnings of $0.55 per share — a 19.6% increase over last year.
The company also reported during a third-quarter earnings call held Thursday an adjusted net income of $30.9 million, diluted earnings of $0.48 per share for the quarter. That a 26.3% increase over the prior year’s third quarter — and revenues of $600.5 million.
Executives said the third-quarter results were one of the best in company history.
“These extraordinary results are a testament to the quality outcomes that are being achieved by our local leaders and caregivers, as they continue to drive impressive increases to occupancy, and are even more noteworthy given that in the third quarter of 2018 we had the largest quarter over quarter improvements in our history,” Ensign CEO Barry Port said during a third-quarter earnings call Thursday.
Ensign’s same-store skilled occupancy was 80% for the quarter — an increase of 210 basis points over the prior year quarter — and an 11.2% increase in skill managed care revenue. Transitional skilled service occupancy, which increased by 240 basis points, was 77.9%.
It was the second quarter in a row the company recorded an increase of over 200 basis points in occupancy in both same store and transitioning operations, Port noted.
“We believe these results demonstrate that even in a period where occupancies across the industry are down, and in what is historically one of our slowest quarters, we are able to consistently drive results across all payor types, including Medicaid, Medicare, managed care and private pay,” he added.
Ensign also raised its 2019 annual earnings guidance (pre spin-off) to between $2.24 and $2.31 per diluted share and annual revenue of between $2.35 billion and $2.40 billion.
When adjusting for the Pennant Group spin-off, the 2019 annual guidance translated to between $2.15 to $2.21 per diluted share and annual revenue of between $2.27 billion and $2.30 billion.
“We are very excited about our performance so far this year and are confident that, even with the implementation of PDPM, which took effect October 1, as our local leaders continue to adjust to local market conditions, we will carry this momentum into the fourth quarter and beyond,” Port said.
The company also acquired five skilled nursing facilities during the third quarter, bringing its total to 202 skilled nursing operations. Executives said the average price for its 2019 acquisitions was about $50,000 per bed and varied by state.
