The following is a summary of the Ensign Group, Inc. (ENSG) Q1 2024 Earnings Call Transcript:
Financial Performance:
Ensign Group achieved a sequential increase in same-store skilled mix revenue of 1.9% over the previous quarter.
The company's same-store occupancy for the quarter reached 81%, a growth of 2.7% over the prior year quarter.
The quarterly rental revenue from real estate assets owned by Standard Bearer was reported at $22.2 million.
Annual earnings guidance for 2024 is set at $5.29 to $5.47 per diluted share, and annual revenue guidance is pegged at $4.13 billion to $4.17 billion.
Business Progress:
The company successfully added 13 new operations and six real estates assets during the quarter.
Ensign Group observed strong performance improvements at the Olympia Transitional Care and Berthoud Care and Rehabilitation facilities.
50% reduction in employee turnover and elimination of contract staffing was achieved at Berthoud Care and Rehabilitation with the implementation of a successful incentive system.
The company plans to continue growth in established regions while establishing new clusters in potential growth areas.
In response to regulatory changes, particularly the new minimum staffing rule introduced by CMS, the company has plans to challenge these in court.
Organic growth is being pursued through operational initiatives, with confidence in achieving proposed results.
Despite recently acquiring more senior living or independent living beds, Ensign Group maintains its primary focus on skilled nursing operations. It is expected these acquisitions will not significantly affect the company's 2024 operations due to CMS's staffing rules' phase-in period.
More details: Ensign IR
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