The third quarter was “one of the biggest acquisition quarters in several years” for the Ensign Group, Executive Vice President Chad Keetch said during Thursday’s earnings call. The firm added 17 new operations during the quarter, including some that previously were announced.
The full list of acquisitions in the quarter, according to a press release issued in conjunction with the earnings call:
- Pleasant Valley Healthcare and Rehabilitation Center, a 124-bed skilled nursing facility in Garland, TX;
- Millbrook Healthcare and Rehabilitation Center, a 124-bed SNF in Lancaster, TX;
- McKinney Healthcare and Rehabilitation Center, a 125-bed SNF in McKinney, TX;
- Park Manor Bee Cave, a 140-bed SNF in Bee Cave, TX;
- Brodie Ranch Nursing and Rehabilitation, a 120-bed SNFin Austin, TX;
- Onion Creek Nursing and Rehabilitation Center, a 125-bed SNF in Austin, TX;
- Riverside Nursing and Rehabilitation Center, a 122-bed SNF in Austin, TX;
- West Oaks Nursing and Rehabilitation Center, a 125-bed SNF in Austin, TX;
- Lakeside Nursing and Rehabilitation Center, a 118-bed SNF in San Antonio, TX;
- Mystic Park Nursing and Rehabilitation Center, a 119-bed SNF in San Antonio, TX;
- The Eden of Las Colinas, a 118-bed SNF in Irving, TX;
- Henderson Health and Rehabilitation, a 266-bed SNF in Henderson, NV;
- Oak Harbor Healthcare, a 132-bed SNF in Mount Pleasant, SC;
- Oak View Health and Rehabilitation, a 190-bed SNF in Conway, SC;
- Villa Maria Post Acute and Rehabilitation, a 65-bed SNF; Villa Maria Wellness Living, a 31-bed assisted living community; and Tucson Recovery at Villa Maria, a 30-bed behavioral health unit, all located in Tucson, AZ;
- Park Manor of McKinney, a 138-bed SNF in McKinney, TX; and
- Fountain Hills Post Acute, a 64-bed SNF in Fountain Hills, AZ.
“An important part of our story has been our local leaders’ ability to acquire struggling operations and transform them into Ensign-caliber operations,” Chief Operating Officer Spencer Burton said. “We also want to be clear that while our teams are urgent and decisive in taking steps to quickly improve the operations we acquire, our primary commitment in acquisitions is building sustained performance and long-term value.”
CEO Barry Port said that opportunities still exist to improve on fundamentals in both existing operations and the growing number of new acquisitions.
“During the quarter, we experienced steady improvement in occupancies, Medicare revenue and managed care revenue,” he noted.
Ensign also reported that its affiliated operations experienced strong quarter-over-quarter growth in skilled mix revenue, with same-store skilled mix revenue of 53.7% and transitioning skilled mix revenue of 47.8%. In addition, the company saw continued improvement in occupancy, with same-store and transitioning occupancy increasing by 2.4% and 5.3%, respectively, over the same quarter in 2021.
Diluted earnings per share were $0.99, representing an increase of 19%, according to Chief Financial Officer Suzanne Snapper. Additionally, she said, adjusted diluted earnings per share were $1.04, an increase of 14%. Adjusted revenues were $770 million, an increase of 15%. Net income was $56.2 million, an increase of 19%, and adjusted net income was $59.2 million, an increase of 14%.
