ENSG - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to The Ensign Group, Inc.

First Quarter Fiscal Year 2020 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. Instructions] [Operator

like Please conference go now today, your hand Keetch. Mr. ahead to would to the speaker I sir.

Chad Keetch

Thank thank you, you and for joining operator. us today. Welcome everyone

P.M. matters. have As of XX-Q and this on A Xth, be of announcement Pacific the also a always, our begin, on This our available I call XXXX. available website Relations before few press will we yesterday. until housekeeping June on replay Investors We is release website filed earnings www.ensigngroup.net. X:XX just Friday, our section at

to We want XXth, that are may all to be statements listening today's made this be subsequent been and statements XXXX of call call. to remind not the May anyone a will have replay today, these as of nor that updated

statements to on we Also, that and and on the made expectations, assumptions, business based or expressed subject about which could today's environment differ our in results today implied call. are current risks are beliefs statements to management's our materially and actual from uncertainties those cause These any operate. forward-looking

and Listeners statements reliance could complete our of that place encouraged to filings undue a on discussion factors forward-looking our more should results. impact for review not SEC are

Ensign and changing circumstances, to or Except as by forward-looking new future events, affiliates arise of information, federal securities update as do for not changes required other undertake or where its laws, publicly statements, any revise a reason. result any

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

well subsidiary, made to as In wholly-owned Captive, and for certain liabilities. captive operating provides as insurance workers' claims the professional insurance our subsidiaries liability coverage general as compensation which we for addition, to refer our

operated by Captive separate Service own subsidiaries, and that of have their Center employees wholly-owned including management, operating and companies the our independent are the All assets.

imply and and of nor of has terms company we, References or the Group, herein the assets to by as subsidiaries to Ensign used should as are today well Ensign operating meant that Inc. revenue direct terms meaning or consolidated its and activities The construed us, similar that our Ensign The are assets, employees not be or the it as any operated Group. use

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

And I with call will over that, Port. to turn Barry the

CEO. Our Barry?

Barry Port

morning Good everyone.

behalf patients some front-line the their teams of on over operational outline their several publicly I weeks. I to want metrics and for of last heroism dedication our shareholders, our of families, Before all thank our and

most faced, few As months and operationally. both times proven the be clinically challenging the past some of an organization, we to have

has been patients adapt to day treat, of and to this and spent leaders During our put all protect, have can their doing and employees. to night learn, test. ability period, the our they collaborate, comfort unprecedented Each and

an things aw, to the do incredibly witnessed We in are doing them as in to and their compassionate extraordinary we duty call go way. beyond thoughtful

that XX-hour the lines times, are praise it media. And more news be and of and on caregivers these long-term heaped isn't time to and hard at a in understand front upon cycles leaders can post-acute live and care. in We why social admiration

and to post-acute recognition day their give all deserve line very care, you up or our to their every Nevertheless, you. are the be even to of past though and them others associated gratitude love with front on honored each might look even showing best of for marginalize the patients. of We contributions

update some impact want before you to first details quarter an provide we we performance provide of the the COVID-XX. on on Now,

the As in we of stated into generated quarter XXXX. in our release yesterday, first operational momentum the continued tremendous XXXX we

quarter of a our quarter. achieved year very share increase per quarter row, highest we fourth over increase sequentially the prior For an XX.X% our in $X.XX, and the XX.X% earnings of in second strong over an of history a

to occupancy first the in improvement Our impressive in mix same-store hit quarter acquired across transitioning company operations. results quarter-over-quarter continued in an see and as the to strength February. days its and high in in skilled Prior the consolidated came COVID, occupancy we newly occupancy, from all-time

see weeks of last traffic the in increase equipment. COVID-XX patient slowdown to normal by and the of of caused in Starting occupancy unprecedented for March, began resulting decline protective and personal we few a use need in costs and an the

While and our the for quarter. increased our these in included are substantially occupancy we still declines expenses expectations own results, exceeded

any reimbursement to the on want or also not stimulus We by our in positives make the that front. were other it boosted results first funds quarter clear

I'm results sure you are to celebrate. that all quarterly something agree our

of the Given quarter never at update circumstances, feel stronger arrived doorsteps a at organization our this focus to unique when on an these this We been it's be our impact pandemic time COVID-XX. provide and to important has our clinically will underline financially. that

all fourth including sequential we last and markets yet breaking markets of significant fourth the year, quarter, our record last achieved the over you some quarter. told improvement bottom-line of newer of our at in that saw XX we end we of quarter As improvement XX.X%

of model you in designed our survive, uncertainty. grow only much Let and times us and Ensign born that these but a to thrive remind like to is not was in face

manage transitioning the local operations in and gives with that our our sheet to acquired combined unusual leadership and these confidence strategy, to to Our us are through we current and health. well-positioned newly potential our same-store enormous healthy balance pre-COVID proven times culture, health rebound

rapidly local of been provide our they care environment, patients. have highest COVID-XX Each the adapting actively to the leaders as their continue of to evolving level to

is building. country the experiencing, to whole what the is and by market you by might impact As varied expect, building similar

not is being COVID-XX. Overall, by our overwhelmed portfolio

release XXXX, in XXX XX our May of across Xth, mentioned in-house. COVID-XX has we Company's as yesterday, affiliated the patients XXX operations As confirmed states

operations cases, Xth, than had XX operations over XX had XX seven May as Also, and no cases XXX COVID-XX. positive COVID-XX of had operations less cases confirmed of

As the to operate continues to more become expect quarter, the number COVID but we cases for in second to foreseeable during available, rise we we continue prepared known the to the of testing believe environment future. are

to March, setting. the vital all We impact half in and on of started to due latter pause occupancies, see directly stay-at-home a the orders, occupancies lower post-acute coming decline overall hospital procedures into which of referrals patient governmental

X.X% Between mid-April and combined transitioning down the May, was XX.X%. an and improved mix slowed occupancy mid-March rate XX% between down and additional these specifically, X.X% and over of combined same-store last by mix several the actually as and decline by More mid-April, XX.X%, skilled respectively, weeks. and occupancy, in early by transitioning approximately numbers skilled demonstrate by was same-store occupancy down was

Also demonstrates a our recent declines, occupancy in weeks, healthcare This due Care last recovery was stay in skilled to the partners. together the the the partnership boost special over of partially arrangements mix skilled flattening CMS' with the waiver continued qualifying Managed community. with of mix and three-day with few

experience been an And followed in when occupancy. increase our us know, following overall as that through by invariably have we is mix, increase an it those in skilled history

and preparing its several organization to weeks the actions been employees, of possible an the taken and the actual potential for patients physicians provide numerous The environment a the in affiliated patients. have and has over of past few for safest surge cases, course COVID

and other of clinical PPE, With supplies measures testing environment. unique and markets providing in Service successful and an equipment. Center, and initiatives They staff resources the various retention environment establish of safety protocols the training acquiring in the assistance solutions, the acquiring tailored the ever-changing Center they've regulatory to field helping and Service implemented been have also are and to

To flexibility enhance impact taken have in operations. of operations, our redirect and and critical to mitigate volume the our resources to we financial operational also steps reductions

and actions included Simultaneously, cost unfolds. we liquidity and key by has Directors, certain leaders. voluntary delayed to and reduction delivery-of-care. to The deferred response be could which the Board took executive facets has organization costs capital initiatives, of implemented and organizational Company's reduction spend other impacting plan team our continues the that without evolve as other the base pandemic increase multiple in the salaries

elective today, are continue procedures seeing we delayed said significant expect in our that will quarter many year, vital impact been of markets and the continue stabilization hospitals the are second to and quarter, see the of on that to third as seen a recover pandemic have to occupancy optimistic we've take but half and reopen the the signs of from place. to begin second occupancies we've we in and As in carrying into

billion. and share $X.XX We $X.XX guidance our of $X.XX annual guidance diluted are to maintaining of billion $X.XX to XXXX annual revenue earnings per

quarter, increase this have both than provide can results our positive we also implementation circumstances under which expected reasons, would reduction normal stimulus The factors. other in the guidance. that for reimbursement cost for confident are news an to funding including on the We initiatives certain and first of guidance are better several led

our the flow confident time. will we momentum, well-positioned what these of are has While of pre-COVID results the cadence to to differ achieving over from as much planned originally pathway significantly continues normalize quarterly the we to patients regain and are that changed, we

to year continue we the and impact portfolio will evaluate of readjust necessary. As the progresses, across will the COVID-XX we if

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

Chad Keetch

cash XXXX a quarterly of $X.XX are has practice to Due been Thank share continue liquidity, you, pleased company to long-standing company and shareholders. no plans our Barry. there to paying a current Ensign to future per stock. dividends. dividend since strong common were we a suspend paid dividend The paying of Ensign dividend our of

a one are in and announced two healthcare both the during Texas, operation in four we part of operation and quarter, Antonio, skilled including Colorado. one nursing nursing independent operations living skilled campus San acquisitions, that Also

allowing operations to were We COVID-related to the advance well portfolio that to of able pleased were complete our four transitions. access restrictions, multifaceted the these very successfully us add in we

report to happy doing that well. are operations four are of We all these

halted pipeline We summer, from in sometime the pandemic a temporarily, to have others threat. the we dust we fresh the will look when to while A require deals the COVID this as few are these slated responded several deals close that of settles.

to estate And our portfolio years operations, XX took years include living real was of senior other This operations we spun these to out growing which operate. which assets, states. XX five the to now founded owned the to of assets is took XX across it owns XX acquire nursing less now XXXX. skilled of and of businesses compared assets ancillary With build XX XXX we as additions, portfolio when XX in Ensign CTRE it comprised than

slowly we continue that older significant come a to deals Through to be are the plans. of will there this that pandemic many to changes as that influx anticipate happening, we newer We begin evaluate all of opportunities. and return pre-COVID our out

selective next even we pass While selective opportunity each are majority acquisition that opportunities always will we with of to few more very over are the be potential the and us, on quarters. presented the

And turnarounds very, very be that at ideal also not is is sure extremely be believe the because choosing to will that some and the it tricky time, best there we we are but to available want only opportunities. underwrite this attractive horizon we on

approach As disciplined acquisitions the on our also an an investments, but aside, we on return maximizing focused pressures not when on want buffer our to excellent there is just are remind it's that you occupancies. to

future opportunities the of or occupancy. we historical and lower results acquire start operations is performance, of create fair that through reasonable on know, to we approach performance. reflects out we as all lower price pay not will and pay underwriting the prices And to our with tend based that on occupancies pro you that most a are Our forma our to

they go cushion with are to have weather in like leases healthy we these without occupancies is Similarly, important, on problems coverage experiencing. expect we hugely of many our operators our into that did into other March, looming when built are So, insistence down storms plenty entering coverage as model. able we

unlevered. we to liquidity, XX will currently assets our completely but real that estate our more own Lastly, continue methodically give we details Suzanne around to real add estate portfolio. value are

an these equity that significant up they of fund that Ensign upcoming built operated for of very affiliate have been have wave the assets can unlock long Many acquisitions. by enough attractive to we value

taking includes HUD which of options, properties those mortgage financing. to our evaluating constantly handful are small a for We

to detail some call I'll with operations. back around And for pass over Barry the Barry? more that,

Barry Port

Chad. Thanks

or effort proactively to this deal includes to leaders local markets. all We have shifting comprehensive preparing and and great recovery plans for are their patient through a negative of now for our their provide focus whether learned positive, care unknown. each process types, executing a in COVID on This

in provided done other ensure to These and public building-to-building and are with efforts infection recommendations being protocols officials authorities. market-to-market a with public control comprehensive by the partnership and health health and local vary CDC and state compliance

unit these other of the Some floor have efforts involved it's entire In building. dedicated of situations, or a an facility.

City In Ana Post Jared agreement Director the with by Moakley Executive Creek into of entered one MacDonald [ph] led Director, State and of example, unique Utah. Acute a Nursing,

hospitals our County an At patients, for Lake care support local the wave of out of prepare that patients. to the we're dedicate urging COVID COVID-positive sought to of the operation state Salt a to in seeking

and Ana, clinical to surrounding solution leadership along allow with would City hospitals. and and Jared to that Creek began become a operational resources, market plan for market a build the

along protocols for many to staff, ensure plan proper a extensive required the operational there This preparation on other detailed staffing PPE planned details. and control that hand infection detailed with adequate was

operation hospitals both the local proper and safety and employees. and the patients worked with transfer ensure process, entire and the to hand-in-hand health of the officials care Through

entered Creek this has during already state us, as and with allowing has cover accepted transitioned patients to The a operation of the their unique to of function home. temporary successfully dozens for this payment agreement arrangement into community. many vital To-date, them and City resource expenses

Health Desert in wave Rehabilitation Blossom an initial In April. cases of positive another signed and example, COVID early

However, Director Petty Francis Nursing, Scott prepared. were of CEO, Andrew and

status on they updates After the their communication member. so safety confirmation spread and help team implemented the daily cases, put on control for positive The also the ensure infection. family quickly allow plan hold of leadership have of of admissions that these families, would for of to

utilize They transmission to precautions, with establish unit-specific a dedicated patients oversight, team thoughtfully separation, disinfection the their health effective to in and county prepared protocols, department loved procedures while, The the executed plan infection physical barriers, clinical their actively unit implement enhanced that unit their to technology virtually and all rest connect these ones. to manage with patient based working to the allow COVID lockstep includes facility. their COVID and of staff in

to execution plan, their the and accept After strategic Care become initial surrounding partnering COVID-positive partners were pivot hospital community area, the the research and patients. to important of recovering to able they with their Managed an

not able sharp outbreak a decline onset Even to because successfully to only out occupancies the levels the were cases, of their though carry occupancy, they of caused plan, quickly were returned in comprehensive pre-COVID they and and heal, treat the but to actively help recovery they success. with treat return continue COVID-positive successfully And in home. able COVID-positive patients patients to unit, many great to them in many

market more that a these else like a them willingness just them team time heroism of occurring the is have of position been every an at many easy operations the it to the the families day -when our pass In are to are and would each someone that These, simply to are examples, in care along to reinforced course, just and have there forever their of examples handle. for organization of few this. The to served patients caregivers they with in second grateful their none. of operation as are take

Our teams respective like this in It with to new these tremendous operating and continue lead of solutions shown adapting Ensign's in to really is really have model shines. unique environment their markets. times in each that flexibility

our will why time. to we the Our and during continue adapt leadership reasons operational have and model this unprecedented are adapted

Care with markets with varying approach are attempting world-class Managed be the solution many CEO-caliber this with local and governments, to a leaders a working center to across than a very hospitals their to rollout service clinical and partners carefully local partners our one-size-fits-all of Rather restrictions, pandemic. their support

that ready working to have teams in the are to the be the will and begin admit of waiting many vital while been post-acute wings procedures resume protocols. all in many, our COVID-XX need As to care, and reopen, hospitals of patients methodically framework within

can the I'll Now, the who guidance. provide details pass call about Suzanne, Suzanne? over our quarter more and to

Suzanne Snapper

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

Some increase million, prior $XX over include, net an additional consolidated the of quarter the XX% year highlights was quarter. GAAP income for

were Consolidated was year GAAP year of million, from Adjusted the million, of XX% over prior an quarter. the revenues XX% $XX net quarter. $XXX income prior increase an increase

XX.X%, Same-store Care basis XX% Managed respectively. over same-store the increase an of and and and occupancy XX% XX skilled points up Medicare revenue was year was prior

of basis and was XX.X%, was skilled transitioning XX%, occupancy and over year Transitioning respectively. Managed prior an and XXX points increase Medicare revenue XX% and the Care up

liquidity we available of Cash $XXX cash as $XX generated million revolving from May million and remains was cash $XX strong. operations credit of million. The cash was company's Xst, capacity million facility. of equivalents $XX free have and on And and our flow approximately

and have liquidity. a more properties also unlevered with significant will allow As that we Chad even mentioned, assets add of XX equity identified handful to value estate real have us

In waving relief March COVID designed government provide to stay, XXXX, the Program the providers to the an during Payment for and legislative special the undertake qualifying relief funding Medicare. and initiatives Accelerated to healthcare regulatory numerous including and Act, CARES federal Advanced began pandemic, three-day

has received CARES Through approximately May the the Xst, of aid company $XX million under XXXX, grant Act.

addition, Program, approximately Medicare the of which have will Accelerated of repaid received loan In $XXX we from million to in August Payment XXXX. be a

of but the known The virus continued Medicare through suspends Act the will have XXst, December Xst, of depend In magnitude reimbursement, the through impact year. a positive centers CARES will sequestration, of as addition, otherwise impact our X% Medicare automatic on remainder suspension positive the the XXXX. the for of sequestration the of XXXX temporarily the of impact period May on reduction our revenue, the upon claims the

quarter when is Medical has end Percentage the as The the at will X.X%. increase national by Federal the government increased FMAP federal lifted. status known also emergency FMAP The of Assistance the terminate

a operate Medicaid which states have expect do by to others but and increases rates so our in we will on have already in increase impact varied we well. temporary approved state, FMAP for as The the several to

$X.XX Barry $X.XX diluted revenue As annual previously billion of between announced and mentioned, share and XXXX maintained guidance $X.XX our and we billion. between per $X.XX

an In addition guidance of XXXX increase XX.X% adjusted represents of XXXX this results. spin our

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

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

And call back like that, to Barry? Barry. turn to the with over I'd

Barry Port

Thanks Suzanne.

and or serve. swift uniquely off clear strategic CTRE the Before were positions again of of our like first most we the names that public you this resulting to floods that remind we the questions, over take we was market formation our to left want wake of action changes reimbursement the two leaders days in fires, in and from company revenues move time some in and experienced with just our isn't front have each spin us model when IV respected filing or the to the RUGs costs the aftermath they over of hurricanes, devastation of in us. reductions, Whether proven industry faced Ensign decrease the have on and in we again increased it the early adversity in the in for bankruptcy,

is today expressed teams on proven local entirely model. our our and in based our confidence optimism Our

mission. and culture be their due Our and organizational always of success to and commitment daily will and their ownership our sacrifice has

us every appreciation our our can't making those your remarkable our field a of support. of colleagues Service We're our shareholders nurses to do grateful and our and housekeepers for and better. who confidence work, you. adequately to each We day in to front-line to the you thank especially are staff, and all We're the CNAs showing and grateful and up express Center,

Joelle, turn over audience can we'll procedure. And call on of you instruct Q&A the the to turn portion that, please -- the our with the call. Q&A

Operator

Instructions] you. Thank [Operator

Frank question Markets. Our Capital first comes from with Morgan RBC

is line Your now open.

Frank Morgan

afternoon. color the guidance. start Good I you think cadence, any additional little second, are the the normal and wouldn't I around guess, obviously, said a it third pattern. be probably Maybe choppy quarter on the will

you potentially the said And recognizing Does said color -- any just you included you million. close. might in a guidance? be that So, of couple would include deals that that think I you there. had $XX Is that that think I

Just there flow I that or straight mechanical have So, a few is more. and let's I through? guess, just for start revenue a

Barry Port

I'll Frank. Thanks, funding. comment the let Yes. Suzanne CARES on

kind a As bit little far and of as terms in cadence little difficult we It's expect with obviously what census of to goes, you're asking recovery. a predict.

based three what that the even from on -- seeing during Monday seen weekly here you had ago. real here, pretty I'm can about tell some up of we're to we second we weeks seeing kind to Friday, to seeing can I weeks steady more until of micro daily speak but quarter. we're our -- four Look, of are getting in what kind declines and We kind declines still

this through on even last true. through We now until remaining week standpoint, remained an at And some census week weekend the we've from where the we up through our This occupancy a flat flat relatively where first week the weekend was is were that and seeing the point weekends. both then declines and are is the end.

in specifically pace very look, time point has over small I'm peers, fortunate decreased but several here, some And about to in we've very compared to of Now, past been even decline kind the our see of a pace pretty substantial substantially of weeks. decline -- that way. talking the

that different of the arrangements same partners, that elective pockets due that's the have part are to part that to different waiver Medicare, Care we due that vital Managed with of over to beginning stay our dramatically some of up time and of three-days gone to of happen, is period part with has procedures mix but skilled Our markets. also is of due

second continue and we some through gives to it decline that quarter even leak quarter. so, into And confidence potentially even probably may see third the the that will some us

for see We demand, that lot if of even are have necessary. waiting for of it pent-up that a but don't sure, vital for elective especially those kind been kind of know those does, we procedures

it through I is. won't think our the normal summer quite normally as slowdown be probably marked as

again, of of what terms this tell there's a in -- But of a close involved of just guessing lot lot like but and can -- feeling. this, feel we're we're some then what what you Frank, seeing in we're to I we

So, even if the you, slowdown continues focus through will will to the beginning is demand return of normal pent-up And the somewhat our of COVID third tell quarter, also to start it a we the feel adjusting pace. on like the that things see bears I because environment. repeating to

even free. confirmation So, to they're setting setting in the within potentially and observation how facilities there's they're some acute come be they're placed from how the patients infection of in terms units handled post-acute that our changes there and substantial how though until might or the testing staged in

our to the as make All working of operators that to need weeks prepared -- are comprehensive that months make that to part been and to have be adjust adjustments on those adapt we're we and be many who that sure we to all sure resurgence. we nuances continue of minimize and do a plan past can the over

comment -- would want that that not guidance. provided. you or the about we guidance and those impact then, that that in are to Suzanne, our do have on included no the There deals asked are And whether yet to are deals funding? CARES Act we close You

Suzanne Snapper

definitely. Yes,

-- either CARES to with funding, on offset lost be going expenses. it's So, the an Act additional revenues regards now, or to

on on will those depend and lost those timing So, the revenues that recognition just timing of of revenue the expenses.

up extent wouldn't kind and of the through don't lost other we offsets then just marry expenses, each revenues really and that you we to obviously, each funding the or it so when analysis. go have the other They then have

Frank Morgan

that lowest earnings. conceptually the guess we're what's historically fourth. you I and impact is sounds the may recovery in here, that It better on then the on quarter see third the second in sequence it? quarter continue, like you the of quarter quarter Okay. is quarter second third good if you're your of little may a particular see -- And think, then in a it enough but about the full the way I this like with having quarter, lowest sounds just better see and to bit think going third to year, Is -- fortunate

Barry Port

I so, Yes, think Frank.

the that's thinking about we're it. think that's I how --

Frank Morgan

Okay. that benefit would be what And didn't sequester, just Medicare on specific the share, but can there, terms in of a on it you Do of give based of the lot you I historical kind represented you have a that number have levels. know people calculated a what -- number a potential could that understanding that? get but revenue, much different, from have would perspective, historical from how you

Suzanne Snapper

many in-house. have Medicare Yes. it patients how on depends Obviously, we Frank,

is what $X $X we're between estimating. think million million I and

Frank Morgan

of then you I a that mention the pay Is benefits tax the advanced over time Act, the deferral. Got you. a back that from the payroll payment. mean one, we item? cash on the get didn't than period And CARES big longer

possibility that is another liquidity? So, the of

Suzanne Snapper

are there million on right, payment $XXX to approximately be so in advance several we front, did mention, that us, items. the is repaid which scheduled that's August. liquidity The Definitely, for

have different On the right. deferral, we two deferrals,

into We have XXXX that deferred remaining XX% the will deferred $XX which we million another the XX% is payroll million deferral, tax federal have and and $XX that tax deferral, is gets which us XXXX December through about December then of and for also July. through the about get of

$XXX deferrals kind -- million about defer. several of of total So,

Frank Morgan

would through we rate Got magnitude particular are hoping you exposure that about? mean call FMAP, meaningful the states you. getting where you what -- of And is Any out in states how have there. increases that in mentioned do be? some you you I got significant you kind pass matter -- of hopeful it and would that talking

Suzanne Snapper

this will People first, feel Arizona, I have now, confident think get. and going states early final process this we what we FMAP. Carolina could is call, Utah, we're of be are a for over the are where four Washington the would in Those had time. obviously, South Yes, of that what what Currently definitely. finalization will we the continue who Right be their pretty to about continue change. able to pretty first us, but round to the

Frank Morgan

back you there you. Okay. that improvement And of you any And Is the one. electives. have hop. might mentioned -- noticed I'll my has you any impact obviously other about state return that mix skilled hop Texas to back I out? with or Thank up. in the I'm a just seen final moved meaningful other thinking, I'll more there then, states Barry, there are is -- of want call there.

Barry Port

Thanks, sporadic. questions. good Texas electives is in one but the really but do that have Texas no. are again, the is main of Yes, for certainly and we're go Yes, to loosened those the their to ability where folks kind starting other see informally it's vital probably one. there -- of states Frank, start procedures,

I think will others soon. follow

Frank Morgan

Okay. Thank you.

Operator

Thank you.

Scott from of comes question Fidel Stephens. next Our

line Your is now open.

Scott Fidel

good Hi, and thanks afternoon everyone.

from some getting then visibility specifically, additional First the CMS Medicaid grant in more and Medicaid of hearing be building in providers? of still funds terms additional interested your the allotted question, whether are Medicaid to been I you're funds allocating if that exposure, etc., has directly terms to just on surveying of just given wanted CMS CARES from for information, know just attack to that anything and you're any providers.

feedback be you'd any there. So, interested getting if

Suzanne Snapper

there out the additional need definitely additional that's I there that lot with going is it. regards a to for funding Yes, providers of detail mean,

buildings Medicaid-only, there on some gathering As data. mentioned doing are you the our of

funding act is there. that buildings been in. that at a is CARES Act, and -- also And there X participating significantly the to which grant regards harder, have they're looking additional be Round potentially we with could based giving funding hit Also then

through There other their to order needs four we the in and plan but clarity for and some additional that be only there before and just visibility mentioned those the that additional go complete states know provided of plans. of X well, of needs still have states the out fundings to their applications and potential that be to we we those really funding the about have working on we -- Act, FMAP, Round as several CARES now are is as there we also states additional right to on X of

Scott Fidel

Got it. and volume the appreciate know quarter second you the some moving of pieces visibility And the gave there's obviously, trends. us of of lot a and I some census to on

us interested place the incremental you we protocols if about incurring, should new facilities. you're some put or the in it's from think give just all around have been look the how just of PPE could into any Just that that costs whether

quarter. of know Also, all the adjusted the into directly your reported results you that results costs -- first into I incurred your in

you you if out of to able incremental interested incurred as also COVID-related quarter we're spike type costs what of estimate in did, an first So, well. the

Suzanne Snapper

-- were wages make about nursing Yes, everyone they up X.X% from so a of biggest kind over think supplies. I'm this costs that percentage and revenue up as typically talking revenue, of make With definitely, would about about, in that increase suspect, around quarter, they to X.X% the I but supplies I regards specifically about is supplies, increasing X.X%. the spread of increase to our one if patient can

the And revenue. increase increase we about then in X.X% had on of of wages,

experienced and X.X% QX what every But just So, upon increase vary average, to that's is. going up where and into down during kind of April. revenue on about that's based we of and location

Scott Fidel

you Thanks question then, Got it, that's Suzanne. just And helpful. last for guys.

portfolio thoughts quarter in normal well. than the like any it occupancy was you and -- had on than looked Just the same-store portfolio higher as why higher even the first transitioning

on that's So, in any then just me. and interested for that color it

Chad Keetch

can that. I Scott. take thanks Yes,

transition know, buckets So, really place. just every we of refresh those took to as the you and speaks quality it that the year

openly these operations it. about talked there we've to a lot multifaceted, process is the transitioning is of As pretty

as where doing and maybe years we've those effective have a in some weren't as as better would just I transitions. And that of last the were to there we efficient lot those couple times transitions process in we through gotten And think been. actually at like

right even that's just deals effectiveness, in so and on well some buildings the And but both that maybe think higher picking I occupancies you're transitioning performing of probably seeing the that what than really sort also normally acquire, is we transition. bucket the of had

you transitions And markets strong mean, success think we those I they've the all that fixed occupancies leaders to clinical sure those to knowing of that directly buttons the local to the then as and the of pull it down to really to to the comes the levers talked ever in is make I first speaks all being our XX get been, stuff all that correlated as -- and as and script, push follow.

So, that's that bucket. really what we're seeing in

Scott Fidel

it. Okay, Thanks. got

Operator

to for the remarks. to back questions this call time. Barry turn I'm you. Port now Thank over further I closing any at showing not like would

Barry Port

day. and again for joined all have you thanks of We're the today. us grateful support call and great your a who in Thanks Joelle

Operator

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

may You disconnect. now

The Ensign Group, Inc. (ENSG) 12 May 202020 Q1 Earnings call transcript