ENSG - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to The Ensign Group Fourth Quarter Fiscal year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

to Investment conference Officer, like speaker to now Chief today, Chad would hand over the your I Keetch. Sir, please go ahead.

Chad Keetch

everyone, February our be our PM yesterday, A replay Thank today. available section of on on Welcome, and this XX at for Relations on you Pacific you. ensigngroup.net. website joining the We Investor filed X:XX it call earnings website and release of XXXX. until our press Friday, is available thank us will also

about listening X, be that not may a these today’s that based the environment replay our be to call. made call listeners updated are any any in will remind have which this to all are made on we of We forward statements subsequent expectations, nor looking operate. been current as today beliefs XXXX, statements the business statements management’s today, and Also, and February and assumptions

that information, could reason. to and events, publicly any other encouraged or more These by today’s as reliance and our subject results. our discussion our not place securities are laws, looking uncertainties risks on expressed future changing where changes for undertake filings any federal statements SEC forward-looking those review circumstances cause complete from for undue result for Ensign results that Except new update a statements factors its statements of of not to impact implied do revise or Listeners differ should and affiliates required could to or as arise actual to call. are a on materially

other collectively to legal, resources, subsidiaries subsidiaries. payroll, or assets, through relationships provide Center, such wholly-owned with Group, as no to addition, our the contractual operating risk other holding human operating referred a Service subsidiaries, of Certain Ensign company services and technology, The In independent revenues. with management information employees Inc. is accounting direct

general and our company, subsidiary, workers’ Ensign liabilities. coverage wholly-owned as well our professional our refer for for captive insurance words its us certain to claims-made liability to compensation and which we, subsidiaries. to Ensign, captive, operating and a refer consolidated the provide as subsidiaries addition, Inc. we insurance In as Group The

revenue All Center of have management, are assets. the independent own the Service of our employees Inc. Ensign wholly-owned construed the us, terms captive be well The References its use The similar today operating the meant imply that of as operating and separate consolidated as and by that terms their not to herein has are operated assets we, Group, and used companies nor and our operated as Group. company subsidiaries and any should or meaning activities subsidiaries, the that employees to or by direct are the assets, it Ensign

GAAP that can our with GAAP a press available of be is upon non-GAAP in on complete Also, available XX-K. non-GAAP to relied the measures we is business, understanding our reporting supplement more metrics. these we viewed of release with Form together A our yesterday’s GAAP results, reconciliation they GAAP believe reports. and our to When but provide not exclusion should

over call CEO. Port, the to Barry? I’ll And with Barry turn that, our

Barry Port

Good morning, everyone.

spun we without even record healthy were results of of the the We significantly we thrilled These contribution history. achieved in quarter, very to Pennant out report our October. earnings record as The another in share achieved that highest Group are positive per our operations

the from fourth adjusted the prior year Our quarter quarter And XX.X% our $X.XX, an was $X.XX, prior an per of was earnings increase XX.X% increase third the of an of over quarter. XX.X%, GAAP over year increase quarter. earnings per sequentially share and for the spin share

mix the up growth the earnings year improvement per operations. days experienced store, was year. transitioning year and across acquired was share from and earnings per newly for strong XX.X% revenue this we came GAAP skilled $X.XX and of Our the entire adjusted $X.XX, share same Most for in and occupancy,

pleased our to points over increase XXX store an XX.X%, the basis see prior in We rise to again occupancy same are year.

of Similarly, year. we transitioning XXX points also basis saw XX.X%, increase occupancy an prior over increase in the an our to

this row, we XXX of in store fourth a have same the in and operations over quarter addition, experienced In in increase transitioning is quarter-over-quarter. both occupancy points an basis

single These and results of and their day. leadership and the soul possible stewardships are and by into put operational Center made extraordinary their all who heart teams Service field-based clinical partners respective local their every

leaders. We are amazing especially impressed with these

achieve transaction truly both been We’re system, able were significant of distractions. going transformative have leaders XX results completing spin-off record become on, our in operate, a able could we newer bottom-line excuses the or midst living improvement which brand implementing these of reimbursement Instead to markets. that which in and of all remarkable. new to in saw some of something all pull markets With including our off a we

programs the These were skilled and results self-insurance of on combination multiple number occupancy, of mix improvements fronts, collections. including the

and made process, we very performance our we addition, all from are buildings. the transitions to our with improvements dramatic acquired saw In of nearly pleased newly

areas each these we been occurring simultaneously are we off, every of progress improvements While making are at efforts encouraged single as times, have market. paying to different these in see in those nearly

as potential operations, our newly store same want and remind tremendous as also we you acquired XXX can growth XX We to that well see our in operations. organic transitioning

and transform we operations we our truly and operation It momentum to into excited the continues to transitions a and expecting cultural operational expect about many XXXX. as The been to have clinical, reputational of are very years time. materialize, often continued several it take our in takes improvement continue healthcare

quarter just completed Payment of or CMS’s Driven most of operations As we our PDPM. Model under Patient first know, you

have congratulate that high members and ready for live who long-term that operation program to excellent outcomes. deliver it when are adapt. went We tirelessly we’re high that the our to each acuity worked CMS patients operators to quality an team help patient-centered creating rewards grateful continue program serve for and ensure We

X% our a approximately we growth serve for a same for generally they clinically of range higher acuity our into basket mature which After store increase, operations, approximately adjusting experienced for X% the patient complex as recent to operations market from operations. transitioning

and a clinical there strength in out complexity, is pointed acuity build the we in shift capability. and we past, the as As

that it’s a store improvement. surprise buildings same higher So rate are no our reflecting

Our our model resulted of environment. clinical acuity, which has improving locally on independent capabilities our focused current consistent improvement been has the rate always increasing in driven earnings, of in

experienced a during PDPM to we first While under unrelated new our quarter performance impact. of totally our the improvement lion’s quarter the modest rate share is in system, the the

to more better for want remind quarter, of sense and is just will it this long-term impact to PDPM. you have that we quarters a several We one take all believe the

the forward independent future are and performance going PDPM. our sustainable that confident past, are in present of We

XXXX the earnings $X.XX for to Given we guidance $X.XX over the guidance $X.XX per XX.X% to to continued quarter share next by and of the of billion strength billion. quarters, raising diluted and revenue our our few are $X.XX expectations annual annual improvement

that with continued guidance be very meet is the spin-adjusted for inherent confidence, optimistic over diluted on underline was this XXXX the midpoint historic $X.XX in the when Pennant the the are or represents increase impact full XXXX horizon and of adjusting continue an We which exceed that of per results, year the able that share our to XX.X% we’ll spin-off. our of our portfolio acquisitions to growth upside To the attractive rates.

XXXX. our diluted for results In which of $X.XX, adjusted XXXX includes the results addition, Pennant X of this guidance XX.X% of months represents first over an increase

we In historical expect placed into the sooner that Pennant’s fourth quarter, anticipated, trend than accelerate more and much than earnings to we XXXX.

to stay our and are true continue that leaders beyond. confident very excited about as year performance local continue this We our model, our our XXXX to strength will and are operating into

close come to culture And a rigorous reaching even not to so, it a to sound adherence full potential. will our to do have We relentless our take fundamentals. commitment and

to I’ll activity. Chad? our update an give us that, with on recent ask Chad And investment

Chad Keetch

you, Thank Barry.

in prior increase our During $X.XX share, over years, in X X cash independent model year, campuses nursing we that continued value year. a our the quarter, X.X% in to paid we confidence part dividend, living and skilled consecutive shows X Arizona. XXth and we’ve operation the for operations ability the to in Also X since, announced we Texas, dividend skilled during healthcare the quarterly is we return healthcare which acquisition a operation have This operating shareholders. our operating is an and per quarter in Utah Texas, our several of been representing nursing of increased hope campus long-term the of of

have XXX total, units were added purchase own additional acquiring improving by in senior real we excited in acquisitions, on XXX value remain beds Texas, opportunities beds of In the and additions, estate XX X about Arizona. future nursing in in Texas, that in the results unlock continue in skilled estate. estate and real campus evaluate value the living XX We XX by operations estate methodically We add our now to the Utah, to to units assets real alternatives. skilled included estate the of to senior and all real we continue part various the nursing X,XXX very Of and which own living operating assets. our own real

are that the and decide operations focus real the them consider can estate. most In our both time always assets, still and the on these at of estate, is build value which distressed created the whatever focus the in of the into acquired be and we Ensign-caliber value to maturing continuing that our But and with operations. long-term to equity real meantime, will been were be we operations do the carefully has health to in

pipeline turnaround opportunities strong. strategic last deals we our for the quarter, As remain typical well-priced saw and

believe to be dry being keeping still are powder very plenty We’re selective we buyers’ continue for of an will on hand attractive what and market.

excited so they see know continue newer existing adding will very do our and newly as including geographical to continue of some grow to we markets strength are to markets and significant our we We mature prepare emerging growth. for well, as and advantages footprint within to

When to potential. we of quarter, to last there local long-term primary pipeline, constraint the you is of driven we our reminded evaluate availability level return of locally I and our and clinical it’s reputation leaders. including factors interest, or each opportunity, As the capital building’s are the not use the leadership, operational many evaluate growth availability

process it’s acquisition health operations. see our on because across the health Whether or be transition scalable. time right. And local Our prices of we spans X decision-making so our markets, is their aggressive our larger are or when the of neighboring the and relies ability markets, growth. to our are deal a they many a of it have over strong, leaders we process several fuels When at that X growth our in

certainly perfect transitions have of of and pleased the continue our have our for in room seeing results we improvement, lots been with all we are very acquisitions. to we While XXXX

are that many and help confident making talent are be be that are all at the us to had opportunities will anxious in there necessary grow. We investment And prices. to right remain leadership

our of shareholders Pennant can spin-off attest, fellow significant has As created the value.

pleased very are the to of of We are Ensign Group very Pennant so that gone with spin-off far, the from well. has the and results separation report pleased

We continue our of ways patients, connected and our to closely care. partners the of to the work remain continue and together, needs to within to as continuum providers adapt we ever-changing seek payors other Pennant to

our very of and the in to In those several of proven the we remains look each have are We meantime, well, other principles unique applying and to operational entrepreneurial alive culture growth. spirit early fostering our and stages entrepreneurial forward businesses. companies Ensign that

over I’ll the call to with that, turn Barry. Barry? And

Barry Port

Thanks, Chad.

been through made like have that examples improvements few represent to over of the vast runs quarter. some Suzanne numbers, the share we’d the that a Before

same strategy our see clinical newly from implementing out, dramatic acquiring leadership our portfolio highlighted progressed entirely pointed are in capabilities. facilities and consistently organic, have underperforming operational almost We store, as to improving improvements acquired we our And as of to we CEO-caliber transitioning changes. operations,

same to example, was mix revenue For compared XX.X% XXXX, for our in skilled XX.X% facilities. transitioning for store operations

of in Brad a independent XX-bed some Having first was campus hundreds healthcare examples. tremendous that [Deoanne XXXX, expansion recent nursing, their Harlingen, Edmunds June skilled prior mature newly revenue our Parez] represents Rehabilitation and some organic living buildings this expansion those acquired and transformation, To provide XX-bed of led by assisted you help we’d upside Palms A get Texas. like portion This ownership, Palms to living rapid Nadine undergone Retirement. clinical of opportunity margin acquired as has to better of a thousands [ph] kind and sense such campus Director, we expertise. in and Golden portfolio XX-bed months. X expand In in Executive Golden its large dollars and our of for losing

points skilled patient points quarter its a of to XXX focus first when and plenty X the taking Texas occupancy its complex With is of compared XX.X% – mix full compared on has more basis XXX This all Palms seen of sharp has campuses more to grow becoming to on and premier led and Golden first of by grow. quarter profile, South by complex basis grow total well operations. Golden room last Palms of operation. months to in to growth EBITDAR one has of its way

Center a a improves Desert since way, their was operation and conceivable how Nursing, care have capabilities perfect the their Rehabilitation Blossom CEO, Chandler, reputation worked up Balandin, acquisition. and It’s Arizona, nursing is with their grow skilled every a facility Health partners that XXXX. Director transitioning acquired Meredith and in in of community. Scott closely Petty, in of to in managed almost build example XXX-bed

to X in in days X. X, years first XX.X% have grown they years X X first operation, the XX.X% and next to skilled XX% year XX.X% XX.X% to to from operation. in the grew Over Similarly, occupancy XX.X% of year year from finally in of

XXX% much XXXX EBITDA result, years. XXXX has a As opportunity grown growth the more from next for over by to with many

California, physicians, Finally, in being let a Cherryll and operations. providers reputation Ventura of highlight Director, performance November one a care and organizations, managed hospitals developed Santos, Executive same of Through our continuously partnerships store in the post-acute nursing they spite improved as all most large Tim dedicated Oxnard, Care of of acquired trusted elevated flag COO, one in a local flying of County. have Center with have story. XX-bed Cooley; is in Glenwood growth skilled operation XXXX. me

plateaued, they when the team their Accordingly, quarter points Glenwood and same improve XXX EBITDA continues by skilled XX.X%. revenue XXXX, has continue to in by basis compared in to to have order seen innovate and occupancy growth grow. of grow XXX to resulting and mix basis never in points

are for a to leaders Ensign at the care, the one time. standard post-acute local continue operations that Our reason operation set

beyond As at Ensign at this this of acquisition, demonstrate improvement these story. true years examples incremental a progress is endures heart operation, our for many the

financial I’ll time the with more And we’ll it detail that, and guidance. up to provide questions. Suzanne? our performance company’s for the turn to Suzanne over And then open on

Suzanne Snapper

and Thank good XX-K for contained in morning, year our you, everyone. press financials are filed the and Barry, release Detailed yesterday.

year. the $X.XX of increase by and the year. adjusted GAAP X.X% $X.XX the for million, transitioning income XX.X% skilled following. net Spin-adjusted increase year year the revenues for was revenues quarter income increase the over $XXX respectively. of managed net Some include revenue year additional and XX.X%, highlights and of year. an for Consolidated increased Same-store $XX.X care was for an were the million, the GAAP prior were year XX.X% the over consolidated over an billion prior billion, and XX.X% the prior

is X.XX maintained and December as of XX of line of particularly EBITDAR raise the included, the cash heavy of acquisitions, ratio decrease ratio cash spin-off. million quarter our times which acquisitions temporarily from at on availability This $XXX quarter times Other of and million up. credit. impressive, tend catches for the $XX.X we had revolving of prior a adjusting We key to equivalents a while given X.XX lease-adjusted period when metrics end, new net-debt-to-EBITDAR a from that

previously revenue continuing cash announced and operations were diluted for guidance XXXX $X.XX to midpoint growth our results, We’ve billion. from to between was cash attributable diluted our share. of over this collections. $X.XX flow million. XXXX guidance to spin-adjusted $X.XX increase and $X.XX XX.X% XXXX Also, an $X.XX same-store, raised of share, The and the between These our per EBITDAR improvements per represents $XXX.X which and billion acquired our transitioning to from operations enhanced the annual year newly are in

from primary operations, exclusion diluted on Medicaid exclusion net stabilized, XX%, the rate $XX.X which common tax increased Medicare XXXX the not with guidance of approximately and inclusion coming compensation. close average stock-based the weighted of million, inclusion outstanding start-up shares of the expected based rate to of year, of acquisitions losses half with of associated the of in tax, anticipated yet provider The reimbursement first is the are increases,

state and impact could influence changes and our systems, occupancy economy on the variations Additionally, census mix, general other performance and skilled accruals reimbursement seasonality of the in in insurance variations of acquisition our in include: factors impact delays factors. staffing, a short-term budgets, activities, that other the quarterly our and of

Barry? And with over turn Barry. that, back I’ll to the call

Barry Port

want again, Thanks, today Suzanne. to for We to, thank joining you us support. our their and appreciation shareholders our for express and confidence

the center better us We’re every service also day. colleagues appreciative and field in making to the our for

to procedure? turn – the the turn Q&A instruct Latif, portion now on of our audience you the We’ll can please Q&A the call.

Operator

of Our Vanacore Instructions] from Stifel. [Operator sir. first Chad question comes line the of Yes,

please. question Your

Chad Vanacore

morning. Good

Chad Keetch

morning. Hey,

Barry Port

Chad. Morning,

Chad Vanacore

just listed acquisitions XX%. for about How guidance, pace, you attribute would guidance to internal the So you by performance? much much thinking increase and how then XXXX of toward in that EPS accelerated

Suzanne Snapper

think included real of It went we they January. in, we it’s QX come acquisitions acquisitions it, of out vast to much to QX, known. if in, the I just were we looked all performance, going take I at timing internal in were look the accomplished were or the on, everything come think, majority – in to December matter when and were and that we mean, in if those going going they a I was that at pretty there in when

of performance. those bit And a that able earlier. But vast to in just we’re to it deal get with majority so, little has the continued

last the of that to quarters. points one the over four up XXX things basis grow the is occupancy think continue that number we see I for quarter-over-quarter

year skilled We been all mix have see continue long. that to we seeing drive like

occupancy at be that the that boost had to maturity, of continued so just has XX% level next the so, and we us that could confidence confidence more that continued up that earnings. greater gotten operations, that gave And we than individual many

Barry Port

function acquisitions over earlier the also how they’ve Chad, that, maybe for more been add as a accretive well. I’d to many quarters have is it and how of the last that just become transitioned us

Chad Vanacore

Okay. be rate basis outperformance the at basically primary driver points. skilled flat I year-over-year, And then, up noticed was seem to but quarter. by the quarter, XXX skilled revenue mix just mix by looking in days

any So Advantage true-ups give can Medicare were any we color you should us then, what Medicare more there items on And and or rates end-of-the-year up? some that consider? drove onetime

Suzanne Snapper

percent, skilled think looking about at little as numbers, this of and little Yeah, you as mix a a a we our look bit overall, misleading. at I bit. a percentage talked the When so it’s

you at, I one step looking put need we think know whole look the back increase I for of the releases, day in the amount and at to and dollar things revenue. these our whole on

And so on whole and care managed and on actually Medicare substantially other fronts. increased a pretty skilled day, it the

as skilled increased. a So whole day a whole dollar and revenue

yeah, you skilled we So you it see actually the at looks But as a flat. a that, you occupancy growth. underlying did the could when see look in the mix because those. continued data, drive see percent, And pretty can

as when Medicare rates that including in question, to rates the fourth in think pretty of do portion rate. quarter, during Medicaid rate of much our the care couple all a your quarter. of rate, for in always Turning to continue And managed QX, I we have are full the we that’s see, a and the we come

of managed a level care those so rates both, are combination patients. And the are

still to the the Some over few over flipped they did flip not them to have PDPM. the RUG of PDPM system, and are people a on

Chad Vanacore

one of rate the affect might impact. thinking the then All PDPM that right. about things Well, was

using rate could of the much in concurrent and of then terms on population? how nowadays Medicare in you been then, therapy like cost maybe with what’s And us of group your the that? you’re share side So experience

Chad Keetch

Chad. take that Yeah. I’ll one,

bit if presents when PDPM, out look at how little So you buckets, story. look it and at performed clear under a it we by it break we

our them rates. powerhouse. X% rate unsophisticated the market And increase, about acquiring into factor about When an for on you obviously, X% same-store acute X% buildings basket for improvement is before, clinical as out it’s said So and on transitioning, transforming and the on side. we’ve focus

see in so, that And buckets. those raising of between difference rates is And part in the that you transformation the two acute.

of go expenses that you up that acuity when I’ll come But some would well. a we bit of up in a skilled in increase are see acuity. came expect function also census. there as as increase didn’t you a little as acuity-related necessarily go Nursing tell our that That in function as an PDPM. costs increase to

expenses And up. drive go also of the you rates up see so, see you as some the acuity-related

happen. So by them of rate if picture not function little there you the well. it’s higher acuity. what drives as looking saw with opposite it rates also was was expenses PDPM sense what bit itself, improvement higher, that our at an at definitely but perfect makes what’s PDPM, of the a a would when said level But we But little consider our bit of happened look from a happened you our acuity CMS of drives together, as

Barry Port

necessarily just and that’s to thing other the building in isn’t you our for a comment space. in, been example, is, while on want level buildings representative acquire. underline Chad, on I to So, add to looking what think one that, sure, I a make to buildings our not mean, we’re see we of the we it’s acuity experience,

Chad Vanacore

right. Hey, of have in you you’re year Chad, and a deployment just opportunistic, All for but less acquisitions knowing target or do this about acquisitions mind? more capital that thinking

Barry Port

to also focus that that year, just balance I operations. I sheet sure. capacity opportunistic front. know say Chad. really for be side, we have that don’t, the sounds the but this is deals do on odd, more our on And will our the but strength to just of We very Both

each We in XX have to in all those extent in grow strength their And that. to ability XXXX. markets, follows the we mentioned, markets of with – as Barry our improved there’s of

this year dollar a the don’t be been target. really yeah, we little in than the But geography we’re So might past. I in think broader that of it’s scope a looking have

deal, each always a they fundamentals And we’ve that at as of them. come the use take sound to going time. one just used each to We’re evaluate

Chad Vanacore

lot. a Thanks color. the appreciate Alright,

Chad Keetch

Chad. Thanks,

Suzanne Snapper

Chad. Thanks,

Operator

Thank you.

of next from question comes Our Stephens. Fidel Scott

Your is open. line

Gerard Campagna

a couple of Yeah, is This Gerard Hey, guys, questions for just on here. Scott. thanks.

out growing your all called in of XX markets. guys You

curious is of you industry is just Or by maybe an what kind growth just guys Or market overall are growth gains? seeing I’m your that underlying in perspective? industry? of primarily any the from driven share So seeing kind

Barry Port

are we acute Certainly, our markets our markets of each providers. maturing really, kind to We of sound those and healthy our collections very in payors question, most and our a improvements fruition We But in Scott. board. our good then mix model, fundamentals just way. model – really all Scott. improving of with of it’s – leadership is across on underlying kind Yeah. each function of We see similar of of That’s the skilled board, improvements see relationships see across business in kind markets in growth of and a in total occupancy our coming the in fundamentals.

Gerard Campagna

That’s buckets. a occupancy talked it, a over We store in left And about Great. call transitioning question. you’ve lot same just then separate maybe XXXX at, Obviously, the and helpful. and XX% XX%.

that are at translate buckets Just you kind in left those of opportunity more and kind I transitioning think and where incremental would maturity the help the that the bucket facilities about maybe those us timeline of really along guess that’s of the kind point? can this of facilities? to

Suzanne Snapper

It’s Yeah. really question. great a

I And to – is there each one in report room average. on drive for think buckets trying absolutely When that is, have, occupancy answer we the as as is really goes? we you’re the have additional growth we that at question. to of what far XX%

operations, down buckets is of buckets when average. same same transitioning to close each percentage large go And the to store that where that one those aren’t very a We the to the even other you high thing proportion aren’t and very buckets. who operations close of even of XX%. There have the a

have at it’s average, them majority them So of the the below vast have that we operating really most we of operating not but average. a

Gerard Campagna

Great, thanks. all me. for That’s

Operator

next Capital Thank [Operator Our Morgan Markets. of Frank Instructions] you. question from comes RBC

please. question, Your

Frank Morgan

your Hello. your mean, by long know a is to and part it the of between the fair take? mix would mix could transitioning to rate-growth that that I’m And clinical similar it But I driven does that’s curious, called and profile? out of you clinical bucket Hey, say rate portfolios. how that take a transform how also – really how have transitioning long – same store I differential growth facility?

Chad Keetch

underlying It building. kind can in really Frank; Yes, to building by a takes of that the opportunity building happen and varies you of longer. is It other depends had past. operations about definitely much there. is model the the in quicker, we little some buckets of on that But opportunity that’s employ. whole, capabilities really there. a kind talk for as and operations, the But clinical it try When growth reputation the the

Frank Morgan

could a But mean, I at – XX-basis-point occupancy at guess, and consolidated margins, those in than margins. when it be looking look your just question, levers, the at I more the I rate nice consolidated positive I look it growth looks even all in that. improvement the thought almost growth a like I would have

same but sort you think not same the around the to store the and kind margin store transitioning? once is, – the what you maybe just differential maybe between transitionings margin And can target get a of you up is what of any of to these more sort of there get numbers, sort of color Is level? exact

Suzanne Snapper

just of I add clinical, what mean, bit other is Maybe, to there to said Barry a upside. Yeah. and question little for on a the ton

I think that have we’ve improvement out clinical hopefully that us over you sub-acute units added examples try saw Barry Glenwoods other continued the services. gives three got clinical demonstrate and time, where we’ve to on there, the to we

of make have picture to a that. full sure just you So

the take those substantially, heavy going pretty acquisitions, acquisitions we’ve down bring like quarter, the they’re portion lot And in obviously, more can more we provide. sophisticated margin that when of are the cycle services bottom a – on continued continuous we very because had about, margin for line. just and looking add-ons from acquisition we you’re That’s especially outcomes and the and consolidated, then, turnaround talking period. this where if can is get There when been a you the at and that looking clinical consolidated clinical that where we to we the at bringing to provide, they business, could aren’t

putting bottom to gotten all a better, hitting ton line. – We’ve there’s sudden they’re that of but that dollars a of the mean doesn’t it

our We the strength that out our to and we then upon go based see we up. that have more too, guidance could expect that we place things line coming bottom put that accelerate, up throughout have quarters that and we’ve hit in that the new in processes and continued is think strength that’s And that the why you markets.

Frank Morgan

sort be something And there at worthy considering that real get type you benchmark would about question. the the some the my of of to down Is I guess, earlier next time you. estate of the a Got consider in size to to road. the be it then, of So, is prepared in transaction? facilities, remarks the growth actually looking level you before portfolio. that of might mentioned noting that’d want you And

Barry Port

Yeah, not really. Frank,

more I mentioned still I those think about new, sure are that is making us. there. is to being way the its to that at maximized, not focus Most there value but at estate least that pretty assets on equity of least real

wouldn’t if to sense. that about humming around our so, is to cylinders, on all want more before they’re were sure turning the and too value. soon, the making unlock that do makes We operations focus to try And that we

new a those critical there’s certainly, just us. to XX, there keep but how mind in with mass So are

Frank Morgan

you. Got Last one…

Chad Keetch

off now we real estate We size we spun that in assets, of number of were the when are CareTrust. at terms

Frank Morgan

my to Great. going one be That of questions. was

there? updates or these supplemental MFAR And payments, any thoughts any updates proposals might have the have you Medicaid potential I’ll hop-off. Thanks. then, finally, around some And just or on just Okay. of you

Barry Port

some kind stand, don’t overly believe of worrying look, put worried will of lot don’t about a as there’s out lot that whole released. proposals don’t we We what see we ourselves they CMS. behind CMS that. a get were Yeah, Obviously, we by sure a there’s initial about in kind initially know some of – too of of We approach spend time support taken making those. tempered

is in Governors in Association involved National comment discussing with We’re as CMS, proposed the actively American that involved is Hospital changes the Association. process

concerned overly there. lot point. about be not happening, this we’re and it from dialing there will expect initially So there’s what of a dialogue put some out at that was too But we back

Suzanne Snapper

couple potential regards proposal, And even Yeah. in MFAR with out. the time implementation a years the to proposal, of is the

think we before, I And prepare. when a like so, give you’ve that will do regulation comes, and new – us do that seen

in be, we out. may the so, execute we adjust on, whatever when and have And that a can that new things come know, place relation make plan we we sure

Frank Morgan

Okay, thank you.

Barry Port

Thanks, Frank.

Operator

Thank you. like remarks. for to the closing Port, to Barry I’d over time, At call this turn CEO, back Sir?

Barry Port

thank like us. call. and you. We’d for the Thank ahead to go wrap up everyone And we’ll joining

Operator

gentlemen, and today’s concludes Thank participating. you call. Ladies for this conference

disconnect. now may You

The Ensign Group, Inc. (ENSG) 7 Feb 202019 Q4 Earnings call transcript