What is The Ensign Group's gross profit margin?

What is the revenue and EPS growth rate for The Ensign Group year over year?

What were the key takeaways from The Ensign Group’s earnings call?

What guidance did The Ensign Group's management provide for the next earnings period?

What factors drove the changes in The Ensign Group's revenue and profit?

What does The Ensign Group do and what are its main business segments?

What is the market's earnings forecast for The Ensign Group next quarter?

What were the key takeaways from The Ensign Group's earnings call?

- **Record Quarter Growth**: 19.8% YoY revenue increase driven by 83% same-store occupancy and 5.1% skilled days growth.
- **Sustainable Expansion**: 2025 guidance raised to $6.54 EPS (18.4% YoY) as organic growth outpaces acquisitions.
- **Acquisition Discipline**: 2025 acquisitions of 1,857 beds closed at disciplined pricing, with 11-building CA portfolio already showing strong clinical improvement.
- **Behavioral Health Expansion**: Adding inpatient psych units to capture growing demand for high-acuity post-acute care.
- **Labor Stability**: Turnover below state averages, agency usage near pre-pandemic levels, wage inflation contained.

**【CEO Summary Section】**
- Reported a record quarter with strong clinical outcomes, driving same-store occupancy to 83% and transitioning occupancy to 84.4%, both all-time highs.
- Highlighted demographic tailwinds, with U.S. population aged 80+ projected to grow 50% by 2035, supporting demand for skilled nursing services.
- Skilled mix improvements: same-store skilled days up 5.1%, Medicare revenue up 10%, and managed care revenue up 7.1% year-over-year.
- Raised 2025 earnings guidance to $6.48-$6.54 per share (18.4% YoY growth) and revenue guidance to $5.05-$5.07 billion.

**【CFO Financial Commentary】**
- Q3 2025 GAAP EPS: $1.42 (6% YoY growth); Adjusted EPS: $1.64 (18% YoY growth).
- Consolidated revenue: $1.3 billion (19.8% YoY growth).
- Cash flows from operations: $381 million; available liquidity: $1.04 billion (cash + line of credit).
- Dividend of $0.0625 per share maintained; 22 consecutive years of dividend payments.

**【Q&A Key Highlights】**
- **Skilled Mix Growth Potential**: Same-store skilled days at 31.7% of total, with significant upside as facilities add higher acuity services (e.g., Beacon Harbor EBIT up 45% YoY).
- **Managed Care Expansion**: New markets like Alabama require 1-2 years to establish partnerships, but early results in Arizona (River Park Post Acute EBIT up 376% YoY) demonstrate rapid turnaround potential.
- **Acquisition Strategy**: Disciplined approach to pricing, avoiding overpriced deals; 2025 acquisitions include 11-building CA portfolio and 7-building UT portfolio, both performing ahead of expectations.
- **Behavioral Health**: Adding inpatient psych units in AZ and CA to meet demand from counties and managed care plans.
- **Labor Market**: Turnover below state averages, agency usage minimal (less than 1/5 of pre-pandemic levels), wage inflation stable at low-single digits.


The Ensign Group, Inc. (ENSG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ENSG

ENSG fundamentals

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