The Ensign Group, Inc. reported significant financial growth in its third quarter and year-to-date results for 2024, driven by increased service revenue and strategic acquisitions. For the three months ended September 30, 2024, total revenue reached $1,081.8 million, a 15.0% increase from $940.8 million in the same period of 2023. Service revenue specifically rose to $1,076.1 million, up from $935.3 million, with skilled services contributing $1,033.1 million, reflecting a 14.4% increase. The company’s net income for Q3 2024 was $78.6 million, compared to $64.0 million in Q3 2023, resulting in diluted earnings per share of $1.34, up from $1.11.
For the nine months ended September 30, 2024, total revenue was $3,128.2 million, a 13.8% increase from $2,749.0 million in 2023. Net income for this period was $218.7 million, compared to $188.0 million in the prior year. The company’s skilled services revenue for the nine months increased by 13.5% to $2,994.0 million, with notable growth across all payer types, including a 12.8% rise in Medicaid revenue and a 19.1% increase in managed care revenue.
The Ensign Group expanded its operational footprint by adding 24 stand-alone skilled nursing operations and two campus operations during the nine months, resulting in a total of 282 skilled nursing facilities and 29 campuses as of September 30, 2024. The company’s real estate portfolio now includes 121 owned properties, with 231 facilities under long-term lease arrangements.
Total expenses for Q3 2024 were $992.4 million, up from $861.0 million in Q3 2023, primarily due to increased labor and healthcare costs associated with the expanded operations. The cost of services as a percentage of revenue increased to 79.8% from 79.0% year-over-year, reflecting the impact of higher operational costs.
The company’s liquidity remains strong, with cash and cash equivalents totaling $532.1 million as of September 30, 2024, compared to $467.9 million a year earlier. However, net cash provided by operating activities decreased to $246.7 million from $291.4 million, largely due to increased income tax payments, which rose significantly to $82.0 million from $8.5 million in the prior year.
Strategically, Ensign has focused on acquisitions to enhance its service offerings and operational capacity, with Standard Bearer Healthcare REIT, Inc. facilitating real estate acquisitions. The company is also navigating regulatory changes and compliance requirements in the healthcare sector, which may impact future operations and financial performance.
About ENSIGN GROUP, INC
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