8-K Additional Segment Disclosures


 
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 10, 2015
The Ensign Group, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
Delaware
 
001-33757
 
33-0861263
 
 
 
 
 
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
 
 
27101 Puerta Real, Suite 450,
Mission Viejo, CA
 
 
92691
 
 
 
(Address of principal executive offices)
 
(Zip Code)
Registrant's telephone number, including area code: (949) 487-9500
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 



 
 
 
 
 






Item 7.01 Regulation FD Disclosure.

As previously disclosed during the fourth quarter of the fiscal year 2014, The Ensign Group, Inc., a Delaware corporation, beginning with the filing of its Annual Report on Form 10-K for the year ended December 31, 2014, realigned its operating segments to include (1) a transitional, skilled and assisted living ("TSA Services") segment, (2) a home health and hospice segment, and (3) an "all other" category. The Company is furnishing supplemental disclosure of certain operating measures by segment to provide better visibility into these new segments. These expanded disclosures do not change the Company’s previously disclosed consolidated financial statements.

The information in this Current Report on Form 8-K under this Item 7.01 shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act except as shall be expressly set forth by specific reference in such a filing. The furnishing of this report is not intended to constitute a determination by the Company that the information is material or that the dissemination of the information is required by Regulation FD.

Use and Definition of Non-GAAP Financial Measures

EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR are supplemental non-GAAP financial measures. Regulation G, Conditions for Use of Non-GAAP Financial Measures, and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information. We calculate EBITDA as net income, adjusted for net losses attributable to noncontrolling interest, before (a) interest expense, net, (b) provision for income taxes, and (c) depreciation and amortization. We calculate EBITDAR by adjusting EBITDA to exclude facility rent-cost of services. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business.

We believe EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR are useful to investors and other external users of our financial statements in evaluating our operating performance because:

they are widely used by investors and analysts in our industry as a supplemental measure to evaluate the overall operating performance of companies in our industry without regard to items such as interest expense, net and depreciation and amortization, which can vary substantially from company to company depending on the book value of assets, capital structure and the method by which assets were acquired; and
they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure and asset base from our operating results.

We use EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR:

as measurements of our operating performance to assist us in comparing our operating performance on a consistent basis;
to allocate resources to enhance the financial performance of our business;
to evaluate the effectiveness of our operational strategies; and
to compare our operating performance to that of our competitors.

We typically use EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR to compare the operating performance of each operation. EBITDA and EBITDAR are useful in this regard because they do not include such costs as net interest expense, income taxes, depreciation and amortization expense, and, with respect to EBITDAR, facility rent - cost of services, which may vary from period-to-period depending upon various factors, including the method used to finance facilities, the amount of debt that we have incurred, whether a facility is owned or leased, the date of acquisition of a facility or business, and the tax law of the state in which a business unit operates. As a result, we believe that the use of EBITDA and EBITDAR provide a meaningful and consistent comparison of our business between periods by eliminating certain items required by GAAP.

We also establish compensation programs and bonuses for our leaders that are partially based upon the achievement of Adjusted EBITDAR targets.

Despite the importance of these measures in analyzing our underlying business, designing incentive compensation and for our goal setting, EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR are non-GAAP financial measures that have





no standardized meaning defined by GAAP. Therefore, our EBITDA, Adjusted EBITDA, EBITDAR and Adjusted EBITDAR measures have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for analysis of our results as reported in accordance with GAAP. Some of these limitations are:

they do not reflect our current or future cash requirements for capital expenditures or contractual commitments;
they do not reflect changes in, or cash requirements for, our working capital needs;
they do not reflect the net interest expense, or the cash requirements necessary to service interest or principal payments, on our debt;
they do not reflect any income tax payments we may be required to make;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and EBITDAR do not reflect any cash requirements for such replacements; and
other companies in our industry may calculate these measures differently than we do, which may limit their usefulness as comparative measures.

We compensate for these limitations by using them only to supplement net income on a basis prepared in accordance with GAAP in order to provide a more complete understanding of the factors and trends affecting our business.

(2) Adjusted EBITDA is EBITDA adjusted for non-core business items for each reportable segment, which for the reported periods includes, to the extent applicable:

charge related to the U.S. Government inquiry;
legal costs incurred in connection with the U.S. Government inquiry;
settlement of a class action lawsuit;
results at one newly constructed skilled nursing facility;
results at three independent living facilities transferred to CareTrust as part of the Spin-Off transaction;
acquisition-related costs;
rent related to our one newly constructed skilled nursing facility and three independent living facilities transferred to CareTrust.

Adjusted EBITDAR is EBITDAR adjusted for the above noted non-core business items.

Management strongly encourages investors to review our consolidated financial statements in their entirety and to not rely on any single financial measure. Because these non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. To properly and prudently evaluate the Company’s business, you should review the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 9, 2015, and future periodic and current reports the Company files with the SEC, and you should not rely on any single financial measure to evaluate the Company’s business.





 
THE ENSIGN GROUP, INC.
 
 
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR
 
 
(in thousands)
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
The table below reconciles income from operations to EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR for each reportable segment for the periods presented:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
TSA Services (1)
 
Home Health and
Hospice (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income Data:
 
 
 
 
 
 
 
 
 
 
Income from operations
 
$
36,932

 
$
(1,834
)
 
$
1,872

 
$
1,103

 
 
Depreciation and amortization
 
7,861

 
7,103

 
121

 
76

 
 
EBITDA
 
$
44,793

 
$
5,269

 
$
1,993

 
$
1,179

 
 
Facility rent—cost of services
 
3,005

 
2,970

 
159

 
196

 
 
EBITDAR
 
$
47,798

 
$
8,239

 
$
2,152

 
$
1,375

 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
 
$
44,793

 
$
5,269

 
$
1,993

 
$
1,179

 
 
Adjustments to EBITDA:
 
 
 
 
 
 
 
 
 
 
Charge related to the U.S. Government inquiry(a)
 

 
33,000

 

 

 
 
Loss at skilled nursing facility not at full operation(b)
 

 
1,466

 

 

 
 
Acquisition related costs(c)
 
44

 
79

 

 

 
 
Rent related to item(b) above(d)
 

 
79

 

 

 
 
Adjusted EBITDA
 
$
44,837

 
$
39,893

 
$
1,993

 
$
1,179

 
 
Facility rent—cost of services
 
3,005

 
2,970

 
159

 
196

 
 
Less: related to item (b) above(d)
 

 
(79
)
 

 

 
 
Adjusted EBITDAR
 
$
47,842

 
$
42,784

 
$
2,152

 
$
1,375

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The total non-GAAP adjustments for the three months ended March 31, 2014 and 2013 is $1,973 and $36,750, respective, of which included non-GAAP adjustments for our TSA services disclosed above.
 
 
(a) Charges related to our resolution of any claims connected to the DOJ settlement.
 
 
(b) Losses incurred through the second quarter of 2013 at one newly constructed skilled nursing facility which began operations during the first quarter of 2013, excluding rent, depreciation, interest and income taxes.
 
 
(c) Costs incurred to acquire an operation which are not capitalizable.
 
 
(d) Rent related to one newly constructed skilled nursing facility which began operations during the first quarter of 2013, not included in items (b) above.
 
 
 
 
 
 
 
 
 
 
 
 






 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
TSA Services (1)
 
Home Health and Hospice (1)
 
TSA Services (1)
 
Home Health and Hospice (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
$
31,372

 
$
32,558

 
$
2,213

 
$
564

 
$
68,304

 
$
30,724

 
$
4,085

 
$
1,667

 
Depreciation and amortization
 
6,600

 
7,798

 
126

 
103

 
14,461

 
14,901

 
247

 
179

 
EBITDA
 
$
37,972

 
$
40,356

 
$
2,339

 
$
667

 
$
82,765

 
$
45,625

 
$
4,332

 
$
1,846

 
Facility rent—cost of services
 
7,632

 
2,990

 
206

 
202

 
10,637

 
5,960

 
365

 
398

 
EBITDAR
 
$
45,604

 
$
43,346

 
$
2,545

 
$
869

 
$
93,402

 
$
51,585

 
$
4,697

 
$
2,244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
 
$
37,972

 
$
40,356

 
$
2,339

 
$
667

 
$
82,765

 
$
45,625

 
$
4,332

 
$
1,846

 
Adjustments to EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charge related to the U.S. Government inquiry(a)
 

 

 

 

 

 
33,000

 

 

 
Settlement of class action lawsuit(b)
 

 
609

 

 

 

 
609

 

 

 
Earnings at three operations transferred to CareTrust REIT(c)
 
(30
)
 

 

 

 
(122
)
 

 

 

 
(Earnings) losses at skilled nursing facility not at full operation(d)
 

 
(210
)
 

 

 

 
1,256

 

 

 
Acquisition related costs(e)
 
90

 
147

 

 

 
134

 
226

 

 

 
Rent related to items (c) and (d) above (f)
 
226

 
79

 

 

 
406

 
158

 

 

 
Adjusted EBITDA
 
$
38,258

 
$
40,981

 
$
2,339

 
$
667

 
$
83,183

 
$
80,874

 
$
4,332

 
$
1,846

 
Facility rent—cost of services
 
7,632

 
2,990

 
206

 
202

 
10,637

 
5,960

 
365

 
398

 
Less: related to items (c) and (d) above (f)
 
(226
)
 
(79
)
 

 

 
(406
)
 
(158
)
 

 

 
Adjusted EBITDAR
 
$
45,664

 
$
43,892

 
$
2,545

 
$
869

 
$
93,414

 
$
86,676

 
$
4,697

 
$
2,244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The total non-GAAP adjustments for the three months ended June 30, 2014 and 2013 is $7,892 and $1,478, respectively, of which included non-GAAP adjustments for our TSA services disclosed above. The total non-GAAP adjustments for the six months ended June 30, 2014 and 2013 is $10,042 and $38,048, respectively, of which included non-GAAP adjustments for our TSA services disclosed above.
 
(a) Charges related to our resolution of any claims connected to the DOJ settlement.
 
(b) Settlement of a class action lawsuit regarding minimum staffing requirements in the State of California.
 
(c) Results at three independent living facilities which were transferred to CareTrust as part of our June 2014 Spin-Off of CareTrust REIT (the "Spin-Off), excluding rent, depreciation, interest and income taxes.
 
(d) (Earnings) losses incurred at one newly constructed skilled nursing facility which began operations during the first quarter of 2013, excluding rent, depreciation, interest and income taxes.
 
(e) Costs incurred to acquire an operation which are not capitalizable.
 
(f) Rent related to the three independent living facilities which were transferred to CareTrust as part of the Spin-Off and one newly constructed skilled nursing facility which began operations during the first quarter of 2013, not included in items (c) and (d) above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
TSA Services (1)
 
Home Health and Hospice (1)
 
TSA Services (1)
 
Home Health and Hospice (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
$
27,262

 
$
30,347

 
$
2,707

 
$
1,462

 
$
95,566

 
$
61,071

 
$
6,792

 
$
3,129

 
Depreciation and amortization
 
3,459

 
7,867

 
124

 
100

 
17,920

 
22,768

 
371

 
279

 
EBITDA
 
$
30,721

 
$
38,214

 
$
2,831

 
$
1,562

 
$
113,486

 
$
83,839

 
$
7,163

 
$
3,408

 
Facility rent—cost of services
 
17,507

 
2,981

 
203

 
196

 
28,144

 
8,941

 
568

 
594

 
EBITDAR
 
$
48,228

 
$
41,195

 
$
3,034

 
$
1,758

 
$
141,630

 
$
92,780

 
$
7,731

 
$
4,002

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
 
$
30,721

 
$
38,214

 
$
2,831

 
$
1,562

 
$
113,486

 
$
83,839

 
$
7,163

 
$
3,408

 
Adjustments to EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charge related to the U.S. Government inquiry(a)
 

 

 

 

 

 
33,000

 

 

 
Settlement of class action lawsuit(b)
 

 
915

 

 

 

 
1,524

 

 

 
Earnings at three operations transferred to CareTrust REIT(c)
 

 

 

 

 
(122
)
 

 

 

 
Losses at skilled nursing facility not at full operation(d)
 

 

 

 

 

 
1,256

 

 
 
 
Acquisition related costs(e)
 
85

 
38

 

 

 
219

 
264

 

 

 
Rent related to items (c) and (d) above (f)
 

 

 

 

 
406

 
158

 

 

 
Adjusted EBITDA
 
$
30,806

 
$
39,167

 
$
2,831

 
$
1,562

 
$
113,989

 
$
120,041

 
$
7,163

 
$
3,408

 
Facility rent—cost of services
 
17,507

 
2,981

 
203

 
196

 
28,144

 
8,941

 
568

 
594

 
Less: related to items (c) and (d) above (f)
 

 

 

 

 
(406
)
 
(158
)
 

 

 
Adjusted EBITDAR
 
$
48,313

 
$
42,148

 
$
3,034

 
$
1,758

 
$
141,727

 
$
128,824

 
$
7,731

 
$
4,002

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The total non-GAAP adjustments for the three months ended September 30, 2014 and 2013 is $557 and $3,003, respectively, of which included non-GAAP adjustments for our TSA services disclosed above. The total non-GAAP adjustments for the nine months ended September 30, 2014 and 2013 is $10,603 and $41,249, respectively, of which included non-GAAP adjustments for our TSA services disclosed above.
 
(a) Charges related to our resolution of any claims connected to the DOJ settlement.
 
(b) Settlement of a class action lawsuit regarding minimum staffing requirements in the State of California.
 
(c) Results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off, excluding rent, depreciation, interest and income taxes.
 
(d) Losses incurred through the second quarter of 2013 at one newly constructed skilled nursing facility which began operations during the first quarter of 2013, excluding rent, depreciation, interest and income taxes.
 
(e) Costs incurred to acquire an operation which are not capitalizable.
 
(f) Rent related to the three independent living facilities which were transferred to CareTrust as part of the Spin-Off and one newly constructed skilled nursing facility which began operations during the first quarter of 2013, not included in items (c) and (d) above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 






 
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
 
 
TSA Services (1)
 
Home Health and Hospice (1)
 
TSA Services (1)
 
Home Health and Hospice (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
$
30,445

 
$
36,706

 
$
2,909

 
$
1,647

 
$
126,011

 
$
97,777

 
$
9,701

 
$
4,776

 
Depreciation and amortization
 
3,749

 
7,827

 
168

 
121

 
21,669

 
30,595

 
539

 
400

 
EBITDA
 
$
34,194

 
$
44,533

 
$
3,077

 
$
1,768

 
$
147,680

 
$
128,372

 
$
10,240

 
$
5,176

 
Facility rent—cost of services
 
17,811

 
2,990

 
211

 
183

 
45,955

 
11,931

 
779

 
777

 
EBITDAR
 
$
52,005

 
$
47,523

 
$
3,288

 
$
1,951

 
$
193,635

 
$
140,303

 
$
11,019

 
$
5,953

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
 
$
34,194

 
$
44,533

 
$
3,077

 
$
1,768

 
$
147,680

 
$
128,372

 
$
10,240

 
$
5,176

 
Adjustments to EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charge related to the U.S. Government inquiry(a)
 

 

 

 

 

 
33,000

 

 

 
Impairment of goodwill and other indefinite-lived intangibles(b)
 

 
490

 

 

 

 
490

 

 

 
Settlement of class action lawsuit(c)
 

 

 

 

 

 
1,524

 

 

 
Earnings at three operations transferred to CareTrust REIT(d)
 

 

 

 

 
(122
)
 

 

 

 
Losses at skilled nursing facility not at full operation(e)
 

 

 

 

 

 
1,256

 

 

 
Acquisition related costs(f)
 
453

 
10

 

 

 
672

 
288

 

 

 
Rent related to items (d) and (e) above (g)
 

 

 

 

 
406

 
158

 

 

 
Adjusted EBITDA
 
$
34,647

 
$
45,033

 
$
3,077

 
$
1,768

 
$
148,636

 
$
165,088

 
$
10,240

 
$
5,176

 
Facility rent—cost of services
 
17,811

 
2,990

 
211

 
183

 
45,955

 
11,931

 
779

 
777

 
Less: related to items (d) and (e) above (g)
 

 

 

 

 
(406
)
 
(158
)
 

 

 
Adjusted EBITDAR
 
$
52,458

 
$
48,023

 
$
3,288

 
$
1,951

 
$
194,185

 
$
176,861

 
$
11,019

 
$
5,953

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The total non-GAAP adjustments for the three months ended December 31, 2014 and 2013 is $446 and $3,449, respectively, of which included non-GAAP adjustments for our TSA services disclosed above. The total non-GAAP adjustments for the year ended December 31, 2014 and 2013 is $11,266 and $44,704, respectively, of which included non-GAAP adjustments for our TSA services disclosed above.
 
(a) Charges related to our resolution of any claims connected to the DOJ settlement.
 
(b) Impairment charges to goodwill for a skilled nursing facility in Utah during the year ended December 31, 2013.
 
(c) Settlement of a class action lawsuit regarding minimum staffing requirements in the State of California.
 
(d) Results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off, excluding rent, depreciation, interest and income taxes.
 
(e) Losses incurred through the second quarter of 2013 at one newly constructed skilled nursing facility which began operations during the first quarter of 2013, excluding rent, depreciation, interest and income taxes.
 
(f) Costs incurred to acquire an operation which are not capitalizable.
 
(g) Rent related to the three independent living facilities which were transferred to CareTrust as part of the Spin-Off and one newly constructed skilled nursing facility which began operations during the first quarter of 2013, not included in items (d) and (e) above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





 
THE ENSIGN GROUP, INC.
 
 
REVENUE BY SEGMENT
 
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table sets forth our total revenue by segment and as a percentage of total revenue for the periods indicated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
 
2014
 
2013
 
 
 
 
$
 
%
 
$
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Transitional, skilled and assisted living services:
 
 
 
 
 
 
 
 
 
 
Skilled nursing facilities
 
$
212,819

 
88.8
%
 
$
197,934

 
90.7
%
 
 
Assisted and independent living facilities
 
11,303

 
4.7

 
8,794

 
4.1

 
 
Total transitional, skilled and assisted living services 
 
$
224,122

 
93.5

 
$
206,728

 
94.8

 
 
Home health and hospice services:
 

 

 

 

 
 
Home health
 
$
6,151

 
2.6

 
$
4,890

 
2.2

 
 
Hospice
 
4,995

 
2.1

 
4,172

 
1.9

 
 
Total home health and hospice services
 
$
11,146

 
4.7

 
$
9,062

 
4.1

 
 
All other (1)
 
4,385

 
1.8

 
2,411

 
1.1

 
 
Total revenue
 
$
239,653

 
100.0
%
 
$
218,201

 
100.0
%
 
 
(1) Includes revenue from services provided at our urgent care clinics and a mobile x-ray and diagnostic company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
 
 
 
2014
 
2013
 
 
 
 
$
 
%
 
$
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Transitional, skilled and assisted living services:
 
 
 
 
 
 
 
 
 
 
Skilled nursing facilities
 
$
219,863

 
87.9
%
 
$
198,280

 
90.1
%
 
 
Assisted and independent living facilities
 
12,152

 
4.9

 
9,886

 
4.5

 
 
Total transitional, skilled and assisted living services 
 
$
232,015

 
92.8

 
$
208,166

 
94.6

 
 
Home health and hospice services:
 

 

 

 

 
 
Home health
 
$
7,132

 
2.9

 
$
5,022

 
2.3

 
 
Hospice
 
5,572

 
2.2

 
4,258

 
1.9

 
 
Total home health and hospice services
 
$
12,704

 
5.1

 
$
9,280

 
4.2

 
 
All other (1)
 
5,324

 
2.1

 
2,640

 
1.2

 
 
Total revenue
 
$
250,043

 
100.0
%
 
$
220,086

 
100.0
%
 
 
(1) Includes revenue from services provided at our urgent care clinics and a mobile x-ray and diagnostic company.
 
 
 
 
 
 
 
 
 
 
 
 





 
 
 
Three Months Ended September 30,
 
 
 
 
2014
 
2013
 
 
 
 
$
 
%
 
$
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Transitional, skilled and assisted living services:
 
 
 
 
 
 
 
 
 
 
Skilled nursing facilities
 
$
228,134

 
87.5
%
 
$
204,775

 
89.3
%
 
 
Assisted and independent living facilities
 
12,259

 
4.7

 
10,899

 
4.8

 
 
Total transitional, skilled and assisted living services 
 
$
240,393

 
92.2

 
$
215,674

 
94.1

 
 
Home health and hospice services:
 

 

 

 

 
 
Home health
 
$
7,655

 
2.9

 
$
5,738

 
2.5

 
 
Hospice
 
6,930

 
2.7

 
4,657

 
2.0

 
 
Total home health and hospice services
 
$
14,585

 
5.6

 
$
10,395

 
4.5

 
 
All other (1)
 
5,863

 
2.2

 
3,192

 
1.4

 
 
Total revenue
 
$
260,841

 
100.0
%
 
$
229,261

 
100.0
%
 
 
(1) Includes revenue from services provided at our urgent care clinics and a mobile x-ray and diagnostic company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
 
 
 
2014
 
2013
 
 
 
 
$
 
%
 
$
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Transitional, skilled and assisted living services:
 
 
 
 
 
 
 
 
 
 
Skilled nursing facilities
 
$
240,654

 
86.9
%
 
$
211,359

 
89.2
%
 
 
Assisted and independent living facilities
 
13,134

 
4.8

 
11,352

 
4.7

 
 
Total transitional, skilled and assisted living services 
 
$
253,788

 
91.7

 
$
222,711

 
93.9

 
 
Home health and hospice services:
 

 

 

 

 
 
Home health
 
$
8,639

 
3.1

 
$
6,328

 
2.7

 
 
Hospice
 
7,442

 
2.7

 
4,697

 
2.0

 
 
Total home health and hospice services
 
$
16,081

 
5.8

 
$
11,025

 
4.7

 
 
All other (1)
 
7,000

 
2.5

 
3,272

 
1.4

 
 
Total revenue
 
$
276,869

 
100.0
%
 
$
237,008

 
100.0
%
 
 
(1) Includes revenue from services provided at our urgent care clinics and a mobile x-ray and diagnostic company.
 
 
 
 
 
 
 
 
 
 
 
 






















 
THE ENSIGN GROUP, INC.
 
 
SELECT PERFORMANCE INDICATORS
 
 
(in thousands)
 
 
(Unaudited)
 
The following tables summarize our selected performance indicators for our transitional, skilled and assisted living services segment along with other statistics, for each of the dates or periods indicated:
 
Three Months Ended
March 31,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Total Facility Results:
 
 
 
 
 
 
 
Skilled nursing revenue
$
212,819

 
$
197,934

 
$
14,885

 
7.5
 %
Assisted and independent living revenue
11,303

 
8,794

 
2,509

 
28.5
 %
Total transitional, skilled and assisted living revenue
$
224,122

 
$
206,728

 
$
17,394

 
8.4
 %
Number of facilities at period end
120

 
110

 
10

 
9.1
 %
Actual patient days
932,867

 
860,265

 
72,602

 
8.4
 %
Occupancy percentage — Operational beds
78.1
%
 
77.8
%
 
 
 
0.3
 %
Skilled mix by nursing days
27.8
%
 
27.7
%
 
 
 
0.1
 %
Skilled mix by nursing revenue
51.1
%
 
51.5
%
 
 
 
(0.4
)%
 
Three Months Ended
March 31,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Same Facility Results(1):
 
 
 
 
 
 
 
Skilled nursing revenue
$
177,834

 
$
172,915

 
$
4,919

 
2.8
%
Assisted and independent living revenue
4,277

 
3,948

 
329

 
8.3
%
Total transitional, skilled and assisted living revenue
$
182,111

 
$
176,863

 
$
5,248

 
3.0
%
Number of facilities at period end
82

 
82

 

 
%
Actual patient days
695,463

 
688,008

 
7,455

 
1.1
%
Occupancy percentage — Operational beds
81.5
%
 
80.5
%
 
 
 
1.0
%
Skilled mix by nursing days
29.7
%
 
28.8
%
 
 
 
0.9
%
Skilled mix by nursing revenue
52.7
%
 
52.7
%
 
 
 
%
 
Three Months Ended
March 31,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Transitioning Facility Results(2):
 
 
 
 
 
 
 
Skilled nursing revenue
$
24,260

 
$
24,268

 
$
(8
)
 
 %
Assisted and independent living revenue
4,417

 
3,921

 
496

 
12.6
 %
Total transitional, skilled and assisted living revenue
$
28,677

 
$
28,189

 
$
488

 
1.7
 %
Number of facilities at period end
25

 
25

 

 
 %
Actual patient days
155,767

 
150,572

 
5,195

 
3.5
 %
Occupancy percentage — Operational beds
71.0
%
 
68.6
%
 
 
 
2.4
 %
Skilled mix by nursing days
19.3
%
 
20.8
%
 
 
 
(1.5
)%
Skilled mix by nursing revenue
40.8
%
 
42.7
%
 
 
 
(1.9
)%





 
Three Months Ended
March 31,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Recently Acquired Facility Results(3):
 
 
 
 
 
 
 
Skilled nursing revenue
$
10,725

 
$
751

 
$
9,974

 
1,328.1
%
Assisted and independent living revenue
1,832

 

 
1,832

 
NM

Total transitional, skilled and assisted living revenue
$
12,557

 
$
751

 
$
11,806

 
1,572.0
%
Number of facilities at period end
12

 
2

 
10

 
NM

Actual patient days
64,788

 
3,207

 
61,581

 
NM

Occupancy percentage — Operational beds
66.5
%
 
42.7
%
 
 
 
NM

Skilled mix by nursing days
21.8
%
 
33.1
%
 
 
 
NM

Skilled mix by nursing revenue
46.8
%
 
66.4
%
 
 
 
NM

 
Three Months Ended
March 31,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Transferred to CareTrust(4):
 
 
 
 
 
 
 
Skilled nursing revenue
$

 
$

 
$

 
NM
Assisted and independent living revenue
777

 
925

 
(148
)
 
NM
Total transitional, skilled and assisted living revenue
$
777

 
$
925

 
$
(148
)
 
NM
Actual patient days
16,849

 
18,478

 
 
 
NM
Occupancy percentage — Operational beds
70.9
%
 
77.8
%
 
 
 
NM
                                
(1)
Same Facility results represent all facilities purchased prior to January 1, 2011.
(2)
Transitioning Facility results represents all facilities purchased from January 1, 2011 to December 31, 2012.
(3)
Recently Acquired Facility (Acquisitions) results represent all facilities purchased on or subsequent to January 1, 2013.
(4)
Transferred to CareTrust results represent the results at three independent living facilities which were transferred to CareTrust as part of the Spin-Off on June 1, 2014. These results were excluded from Same Facility and Transitioning Facility for the three months ended March 31, 2014 and 2013 for comparison purposes.

 
Three Months Ended
June 30,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Total Facility Results:
 
 
 
 
 
 
 
Skilled nursing revenue
$
219,863

 
$
198,280

 
$
21,583

 
10.9
%
Assisted and independent living revenue
12,152

 
9,886

 
2,266

 
22.9
%
Total transitional, skilled and assisted living revenue
$
232,015

 
$
208,166

 
$
23,849

 
11.5
%
Number of facilities at period end
125

 
118

 
7

 
5.9
%
Actual patient days
967,403

 
901,194

 
66,209

 
7.3
%
Occupancy percentage — Operational beds
77.8
%
 
76.6
%
 
 
 
1.2
%
Skilled mix by nursing days
27.8
%
 
26.1
%
 
 
 
1.7
%
Skilled mix by nursing revenue
51.4
%
 
49.9
%
 
 
 
1.5
%





 
Three Months Ended
June 30,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Same Facility Results(1):
 
 
 
 
 
 
 
Skilled nursing revenue
$
179,529

 
$
167,920

 
$
11,609

 
6.9
%
Assisted and independent living revenue
4,438

 
4,108

 
330

 
8.0
%
Total transitional, skilled and assisted living revenue
$
183,967

 
$
172,028

 
$
11,939

 
6.9
%
Number of facilities at period end
82

 
82

 

 
%
Actual patient days
706,036

 
689,150

 
16,886

 
2.5
%
Occupancy percentage — Operational beds
81.9
%
 
79.7
%
 
 
 
2.2
%
Skilled mix by nursing days
29.4
%
 
27.7
%
 
 
 
1.7
%
Skilled mix by nursing revenue
53.0
%
 
51.5
%
 
 
 
1.5
%
 
Three Months Ended
June 30,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Transitioning Facility Results(2):
 
 
 
 
 
 
 
Skilled nursing revenue
$
24,546

 
$
23,741

 
$
805

 
3.4
%
Assisted and independent living revenue
4,510

 
3,997

 
513

 
12.8
%
Total transitional, skilled and assisted living revenue
$
29,056

 
$
27,738

 
$
1,318

 
4.8
%
Number of facilities at period end
25

 
25

 

 
%
Actual patient days
158,049

 
152,672

 
5,377

 
3.5
%
Occupancy percentage — Operational beds
71.2
%
 
68.8
%
 
 
 
2.4
%
Skilled mix by nursing days
20.6
%
 
19.2
%
 
 
 
1.4
%
Skilled mix by nursing revenue
42.0
%
 
39.7
%
 
 
 
2.3
%
 
Three Months Ended
June 30,
 
 
 
 
 
2014
 
2013
 
 
 
 
 
(Dollars in thousands)
 
Change
 
% Change
Recently Acquired Facility Results(3):
 
 
 
 
 
 
 
Skilled nursing revenue
$
15,788

 
$
6,619

 
$
9,169

 
138.5
%
Assisted and independent living revenue
2,734

 
893

 
1,841

 
206.2
%
Total transitional, skilled and assisted living revenue
$
18,522

 
$
7,512

 
$
11,010

 
146.6
%
Number of facilities at period end
17

 
10

 
7

 
NM

Actual patient days
92,151

 
40,931

 
51,220

 
NM

Occupancy percentage — Operational beds
64.5
%
 
62.5
%
 
 
 
NM

Skilled mix by nursing days
23.1
%
 
17.5
%
 
 
 
NM

Skilled mix by nursing revenue
46.3
%
 
44.9