ENSG - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Ensign Group, Inc.

First Quarter Fiscal Year 2022 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Chad Keetch, Chief Investment Officer. Please go ahead.

Chad Keetch

operator. you, Thank thank and joining today. us Welcome, you everyone, for release it section is We our filed on and press earnings Relations our available yesterday, the at ensigngroup.net. website of Investor this on of A be will X:XX until available replay p.m. our call website also XXXX. Friday, on XX, May to today, may listening today’s We not and statements April replay XX, remind to made statements been listeners that be have to call XXXX, call. this all any updated nor are a that want be of as subsequent will of these any beliefs and based operate. assumptions in Also, made management’s on are we forward-looking today about statements current expectations, which the and business our environment These statements our from cause materially are could differ to subject those expressed uncertainties on that results implied to and actual or risks call. today’s undue to on are a reliance and could factors for filings place review SEC complete our statements encouraged discussion more of impact that forward-looking should Listeners our results. not Except any other arise as not future securities publicly do federal new any of circumstances to update events, Ensign statements affiliates its information, changing forward-looking or laws, and required a result by for or reason. where revise undertake as changes

and such owns information with which our including subsidiaries, investment and subsidiaries services our Service other addition, Standard owned risk referred human Group, Inc. is real of direct Bearer, through technology, captive operating subsidiaries, a real independent management In resources, Center, legal, the assets, contractual provide employees the accounting, to our revenues. to Certain the company relationships estate trust, as operating estate with manages collectively or holding other Ensign business. no wholly payroll,

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

of and today to subsidiary, we, assets. to as non-GAAP their captive of by and our, that it employees Barry, to subsidiaries, to business, the has the that, the we reports. use as supplement exclusion consolidated upon GAAP that the Ensign with own used meet are References independent complete its reporting companies of can well us, have in our Ensign Center, employees assets more viewed not revenue Also, operating GAAP insurance the non-GAAP similar Standard our meant owned Form All in our should activities And Barry? believe with management, I’ll company the assets, CEO. our GAAP and wholly relied of the that or measures our operated Service a these Bearer by herein operating with A we metrics. operated separate, or terms they subsidiaries Inc. and any as available Group, XX-Q. are GAAP our meaning provide terms to Group. call back direct imply nor but the construed should together are yesterday’s turn results, be release When not that of reconciliation understanding press is and our and over

Barry Port

you thank joining for and us Chad, Thanks, all today.

continue now achieved the row. grown in in quarters occupancy sequential navigate the teams revenue. in skilled occupancies, the achieved they improvement led care X and to quarter. census locally managed growth the managed record of health quarter as excellence constant the services fifth care impact pleased revenue the sequentially that particularly through our this to in their leaders driven Our early are operational The continued all results they strategy markets disruption each consecutive of be leaders in and local overall impressive markets. their of changes given a labor in were and particularly our care examples of for Despite the quarter, in continued Omicron We that, and has

caregivers our of commitment the and by continued and inspired endurance their are strength. We

During XX.X% transitioning of a and skilled same-store operations, drove quarter, for skilled mix reaching combining operators in the a same-store growth and With impressive mix. mix skilled our of XX.X%.

transitioning We respectively, during prior over of which to continued confidence occupancy the in quarter. a that by occupancy over surge increasing excellent position and in also the patient occurred quarter momentum occupancy pre-pandemic in typically Omicron mix of the results us This continue simultaneous particularly lower the return in to X.X% face saw given This with tremendous and X.X%, same-store year in is growth we’re occupancy and in it skilled an progress time. variant, levels volumes. to gives impressive

of Each we operation end comprehensive the hope staffing be pandemic, environment, ahead is will inflationary we reimbursement evolving to soon focus closer and sound in what spite strategies leaders’ challenges shifted thrive and pressures. of looking to As our the has an to get fundamentals. operating developing

continue retain As health conditions attracting their the employer for professionals choice each on have our we communities. put pressure general assurance of have gives very to to discovered being care a markets, on our focused of path this good and clinical have strong our we performance. staff existing in economic on to develop financial operators in continued new position methods This as workforce that while strengthening labor us also ability of are and into

several continue Medicaid We from states. benefit in to improved funding

to and grateful to the assistance in other that federal XXXX, regulatory emergency extended of care. state many keeps of of place the July are the patient helpful forms We which has government

While regardless take that extended attractive of we the know performance. health will waivers certainly overall advantage political climates, our COVID and our environment be our funding we ability like, on what lean continue not long-term don’t COVID or confident this path trends, But an to operational in are acquisition it’s make possible to of adjustments, July. initial future government for past of very looks sure

$X.XX introduced in operations at established the have XXXX to while of As RUGS those real that assets a undergoing COVID-XX industry XXXX $X.XX public in XXXX the from Even is born spun XXXX, reaffirming pandemic. a most In year. reimbursement we was economy grown X fee-for-service revenue care the our cost-plus made transformation, We IV was time also CAGR major achieved went since a system nursing us revenue estate for Once most businesses, period. have Yet same know, industry CAGR EBITDA have been when in XX% at company, $X a our We’ve in moving new an share and correction all time skilled for XX% and industry’s off a buildings following a acquiring the time went to post-acute when from both the we we’ve we long are billion of complete emerged altering billion annual IPO U.S. spite was when following these challenging today. guidance entering a again, companies with a a to time model. public history diluted to perhaps recently a per adjusted Ensign been recession. was performing now, events, XXX and XXXX, and billion. that $X.XX guidance the formed XX multiple we earnings our and annual $X.XX public struggling in and of to of from

XXXX XX% and XXXX of is new an XX% than results. a our earnings of increase As represents the our results over guidance this XXXX midpoint higher reminder,

stronger. leadership organization has been Our our and healthy, is operational clinical extremely never and local

and our to us year. can grow culture Our local gives approach confidence we this that and and innovate will continue

we like built some change remind you While to near-term times for model fluctuations, that quarterly lead our is these. could

their face staffing incredibly clinical sacrifices We of facility workloads for their to and challenges seen and lives beyond. in continue honored effort. witness of a so can’t them fully how of their Service up continued has partners leaders, and and communities the amazing team and want thank many. operations. to see resources, absolutely enough have blessed expect and that we throughout a minute benefit coworkers, the field I Their outcomes. patients -- alongside members, and honor to the of to astounding an XXXX grateful support them to part just other their have picked I are effort in It’s Many and incredible sacrifice witness that commitment to and work Center staff. of take be extra have our made emphasize serving

Just have lessons we’ll on as on expect continue to build we we’ve some lean seen challenges we will strength. certainly the the and past, foundational most in learned that our ahead, and

to with the us excited are and show to our loved care those entrusted about future forward our look continuing of ones. dedication We have their to that all

ask to I’ll Next, growth. Chad discuss Chad? our recent

Chad Keetch

I you, wanted our start, provide Thank Standard To Barry. captive on update brief REIT. Bearer, to a

also to of $XX.X generated EBITDAR our will the us assets in to in be as portfolio our enable the asset to end our new the As value upon X.XXx $X.XX of XX of We build to real platform during next about quarter, which ratio real before, sits to business, the structure, estate and We to affiliates, were already -- couldn’t which with we’ve high-quality allows estate of approximately are thriving estate of organizational FFO assets. add of new us quarter, to operated this pleased during more investment established our the discussed the which portfolio an Ensign by both bringing X excited the coverage rent quarter. real take step company billion. of this million assets

have by will health properties third-party Ensign evaluating operated which include that begun and already other We be affiliates several transactions, care operators.

forward to sessions strategy partnerships establishing had and also them. with productive new operators very with have We like-minded look several

will disciplined we will an and health operation to compromise said, As of win we’ve not remain in deal. a always the order

opportunities became unrealistic. have on the where several already passed pricing We

our many deals we more summer. are However, we add the this are and additions spring to to and portfolio estate additions finding quarter plenty execute and the excited during on that the to expect of about real

of Bearer assets, does we skilled our not other adds will real subject partners. and As estate Standard often leases acquiring which quarter, be strong-performing alter growth pathway both said nursing the additional struggling of proven an to long-term method with last and

these the operational campus includes nature X tenant advantages long-term which are determined to strategic leases already estate Ensign-affiliated the In Pennant an leased will these operation, which acquired with the a in returning an Arizona; health by be of justified these team that most living other operations together real added living new additions Washington, landlords. and operations since, independent of that spinout part senior operations in Ensign, third-party years total, include once were nursing Ensign-affiliated nursing X these of certain Ensign. and Standard of of California and with to skilled due to part of buildings, of living to efficiencies we, most living that Bearer, in operating X mature X skilled Arizona. operation acquisitions in California; X including quarter of assets After nursing senior senior in of the markets, in in During X some X nursing Several Texas, operation operations Pennant operations several senior we skilled X the our Group. X operations involve and have the operations operation skilled care new

depending As the will activity circumstances. this ratio illustrates, leased between owned on recent the vary and

first are, acquisitions. foremost, focused health operational of and the on We

So too. we’ll sign real makes and it time, right, pricing when estate. our an will come attractive way, sense the opportunistically leases same At the purchase the we is those

As be we’ve history, do shown both. over to our will opportunities many many, XX-year there

the that perform each to a and We clinical a We’ve seeing growth pathway leadership short the forward to over to principles. the very should run. to proven the support in X run plan new are operations our the of and This since success added quarter our and new during been ensure performance. clinical healthy had long ability confidence most importantly we diligent extra implement look operational financial of markets clear clusters as the excited a them and and strong they their contribute addition their to market, proven illustrate about Ensign continue to and full in

be for Looking including forward, summer opportunities busy and us. spring pipeline estate turnaround strong. The acquisitions and continues another leases to real our have typical we of ahead

more new through and closing the are additions months working related towards and due We we transaction or coming on are several more. the working have that a documents dozen in diligence

a per quarter, share. quarterly of we dividend $X.XXX paid Lastly, during cash the

our paying we Given future. strength, into of plan to history dividends continue our XX-year the

$XXX to million with a achieving quarter. credit, year we prior April, of $XXX sheet portfolio, in us decrease when available powder which, from our nearly under net balance the X.Xx, cash debt-to-EBITDA million our line delever ratio gives of million investments. on capacity our X.XXx to $XXX.X combined million future lease-adjusted continue for of which dry increased in was recently by also We a of have the $XXX Currently,

growth. We And help debt-free liquidity back Barry? XX over by also are future of to our Bearer gaining the to XX of which call which more even Standard with XXX assets, with us and and owned time, own adding turn held are significant are that, completely value I’ll Barry. over

Barry Port

Chad. Thanks,

their it and our facilities these have X have staffing grappled repeatedly another opportunities high-caliber to Over that nation our to leaders immune suburban local been like facility challenges how and our X but as I’d not COVID from to pandemic inspiring industry and efforts a shortages, and refine from clinical associated performance. a their systems, been with outcomes our the how examples: see model Today, and improve operation have these of and has the refocus their years, highlight X large continues to past financial affiliated rural challenges small thrive to used circumstances. regardless share

excellence in area. Kevin the and overall the choice measures, The the provider Willow located Reese; first needs earned Rehabilitation of from led COO, reputation systems. has meet X-star being inspections comes Kosanovich] ratings Dallas health XXX-bed in Metro and Bend and and [Valerie changing for highlight and CEO, by can of plans a that Nursing health quality This hospital facility achieved

years, possible has overall And Texas. For occupancy high-caliber the than Willow increased earnings more X% affiliates result, made by occupancy our But staff. relentless by of and Bend than strongest pretax as to their one because on Willow performing the been year XX%. incredible focus more managed to managed results by at care prior grow quarter, hiring in retaining they compared team and These XX% first Bend’s of quarter. the a were in

spite of of in the most by the their quarter, in recruiting we’ve seen Dallas-Fort In in the hiring than competitive team’s a more environments of fact, X% first efforts during one Worth in decades staff area. care the growth resulted

like The a to we’d X,XXX and Idaho, example Owyhee XX-bed an town a population second highlight Western Health Homedale, award-winning Idaho. is of facility Rehab, with in in

industry to valued Truesdell; and have While are in which to rural nearly improvement Melissa occupancy Nelson, a growing has increase allowed rates found where by hiring environment COO, has resulted less from of year the community’s their where Owyhee CEO, staff prior than the Georgia turnover Retaining family it communities. way creating and small impossible is represents quarter, quality difficult feel thrive to a meet average. in Nonetheless, X/X become everywhere, first quarter. and demand a X% staff XX% the

of relentlessly across demonstrated improve COVID infection would early by staff. staffing reflective census shortage you of staffing industry in experiencing our by leaders the way progress facilities recruiting by progress Owyhee culmination Willow challenges, also skyrocketed has seeing we The facilities our to alone, innovate As quarter and In their recruiting frontline and the and the pandemic, we Medicare incredible In improved that control same grew was required hundreds This Bend our expect, improve [EBIT] organization. that local systems and are our first workforce while progress X%. focused of and is on globally retention. is unprecedented the XX%. to pushed systems skilled the their around clinical retaining the and

needs the questions. our care then of time confident meet turn helpful pulling We sharing these our only their it that, our partners. months. hope to over on practice different we’ll some that many for in With model performance are the that of Suzanne the detail Suzanne? financial to will and examples and health up improvement in this in levers accelerate I’ll best are provide company’s continuum coming open some We operators local guidance, of to more the are illustrating order peer-to-peer

Suzanne Snapper

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

cash million, net GAAP of million were increase XX.X%. million. segment cash $XX.X per both $X.XX, operations earnings as quarter flow and million, March Total XX%. adjusted $XX.X $XXX.X diluted $XXX.X adjusted the $X.XX. net of $XX.X to an over metrics earnings GAAP an revenue income of income was Some increase of XX increase XX.X% and Consolidated additional X.X% and increase of cash increased from and was XX.X%. highlights share million, per Other equivalents revenues GAAP of $XX.X skilled of income an an key share million. services for include was was diluted Adjusted include

stock shares XXXX we program. XXXX, our XXX,XXX million, the repurchase XX, March repurchased approximately of $XX October of As stock completing common for

we and of million, Given and additional use of and liquidity performance, program long-term stock’s buyback recent this our an a believe our $XX results, the wise our have near in share very established capital. to confidence we be

As we said levers our buybacks the share to before, are deploy we capital benefit many one of shareholders. have to

HHS FMAP waivers reimbursement of government will and extended state Recently, XX, public extension, We the enhanced also address continue and status the the emergency various the July matters. health With to funding XXXX. XX emergency for to wanted federal provide current days. another this to of

Additionally, XXXX, X, was The the and suspension will a our a on X% the sequestration at of suspension Starting X% XX. be full July revenue, to amount which will adjusted back X% X, as impact upon the the census. affects April June reminder, depending how our continued place. had a to sequestration continue Medicare positive through pandemic through time have in suspension

PDPM CMS rates. PDPM system new should that COVID from had that As in adjustment PDPM, higher ultimate that When proposed providers, impact know, rule of commentary be XXXX you the will the new making recently PDPM take in CMS all a PDPM. or proposed adjustment the for X.X%, a [acuity] Subsequently, would and months discussion rule downward industry, of year, make parity CMS rule, subject PDPM manner, budget not the evaluating billing hit transition Under the increase. with a the called a before the meaning much a proposed which and finalizing neutral. Medicare will the When last a payment and next on in several budget-neutral rates affected patients resulting step finalized. CMS result analysis study by case COVID goal mix the and direct timing that the reduction to be decided their issued amount implemented implemented The rates to further asked PDPM from impact. a PDPM. is back regarding acknowledged the model of RUGS in stated Medicare was reduce during October will to

a negative which a and forecast annual either parity rate the the PDPM, guidance upon rule or Despite even positive productivity. for share market be at amount net and depending final by $X.XX the guidance the of less error upon CMS’ Depending net the could are includes to increase CMS and for revenue adjustment billion $X.XX in adjustments $X.XX be the CMS, annual larger-than-normal X.X%, could we of a positive announcements annual change basket, Additionally, announced and final our timing could payment per earnings rate X.X% or of adjustment. diluted to $X.XX these be billion. XXXX reaffirming the

evaluated skilled some have momentum our and solid multiple Medicaid we’ve as We ranges. seen these projections strength and programs, remain we can in mix scenarios and based within achieve revenue for and performance well earnings that confident our occupancy positive upon as additional we

Our and of of million, stock-based losses stabilized; compensation. tax fee and the and rate expectations exclusions the which of XX.X with onetime is XXXX common legal the not provider of inclusion XX%, net are start-up primary XXXX, a Medicaid in of coming operations, closed management’s the exclusion tax weighted outstanding with the the yet of and on reimbursement approximately a associated first average from rates Medicare diluted half guidance of based shares inclusion acquisitions of

the to factors. performance accruals, the in staffing, short-term mix; influence variations activities, I’ll impact in and in the variations call back our systems, delays include: over and census in skilled general other the could quarterly economy Barry? the seasonality, reimbursement impact with Barry. of acquisition that of factors in that, And the turn state surges and budgets, and insurance occupancy other changes COVID-XX and Additionally,

Barry Port

and and be operational several again challenges, continue that today Thanks, strength know present you core want Suzanne. in to us for confidence We will appreciation this unique express our business. to thank our with encouraged our to joining year for We our us their by but we’re shareholders support.

will which as care. its an mission while as With thrilled our significant proven also in Ensign us a We’re Bearer, operations value to pad change post-acute create others perfect growth it’s lever accelerate we to affiliated primary our industry. we in follow Standard help align our real model with have launching additional to estate tenant,

investors, $X earlier, out pointed our we little Chad being more fact, estate assigned As than in the but no values believe to values real billion. by to

team that speaking opportunities to our previously to and other passed for heroic efforts, leaders, and coworkers of our our example care attract in And along industry-leading on to great with space. life-enriching providers we eager of best-in-class nurses, and with to We’re our other grow them would advantage leverage want leadership provide talented continue communities. we frontline value and take those have service partner field help of of to who therapists their recognize field their providers and residents,

the We’re support faced. We’ll at Victor, Center enabling you on audience us to turn instruct single of better Service call. colleagues the our also who are operations procedure? Q&A making our day. spite challenges Thank of over you every please to can working Q&A here the for appreciative now the our tirelessly the portion in succeed we to us

Operator

from from [Operator Qiu first will Stifel. question Tao of Instructions] the Our line come

Tao Qiu

improve peers. long-term performance that has reduce about you implications Barry, And of your I your industry. certainly, staffing of labor many the have really management another appreciate turnover. I to surpassed on the provided could to ask recruiting details and initiatives matter wanted

think the know in trying the about etcetera? CMS potential the is implemented to think an We talk us of where own to rules. on government a idea Obviously, RNs, do industry out may staffing the staffing already their could level maybe next kind [Fedroom] pushed federal the to shake give their mix implement you facilities today your [CNs] be to guideline. I of new that by the and spring. states the engaging minimum formulate out And is impact. be requirement. you the Could in That of some

Barry Port

and are positive, this. different of there’s in involved and frankly, higher type summarize just with overall full say, which mean community, skilled ourselves kind important but we that with a a way. I than, been will asking I’ll There’s I of know world as question, you good answer be to a And we for that and to Tao. is operator our a would to a lot call, association long-term impetus in -- outlined face in will it potential certainly we we do little, as take staffing at are out, study already that pretty it. they’ve would level one space higher in federal what distinction a most feedback foremost, see an But be. look from federal at nursing patient mandate, right? to pointed the a lengthy staffing begin of the first a average year It it’s of acuity try the continue a one, level. necessitates post-acute we will the They’re than, very the bit take a I differently. Yes, straightforward And could that

our threshold minimum what we the of That already into the the case, vast does drive would the a given acuity when to So see. you about of and kind have contemplate of what types just federal a just acuity think average the has account we probably all that staffing mean we’re providers the that takes levels overall than operator higher much a kind lower that than for level see. it majority being typically average mandate, staffing federal

mandate what, about around when the okay. to don’t in detail federal we not does on model there’s worried much especially with necessarily much we I a But feel the try too So way staffing, opinion. drive regardless focus with. -- it. too not we it. we’re too the agree what about not it’s given don’t not we very government our But We That’s it. certainly regulatory mean quality worry a little of to around

types our see. patients the of that model given Just and we

Tao Qiu

looking would My Chad getting or current smaller, the with prepared larger In I second the like-minded you’re Are any for traits you. operators talk for in that on in going opportunities quality to active opportunities. is operator be with breakdown partners? any are Or you mature about Could your into? partnering you operators. the remarks, looking these operators? markets question And you’re regional of Got well? is think consider in mentioned as you multistate discussions you’re Bearer. terms Are new what there contemplating of you versus turnaround at, Standard

Chad Keetch

a It’s Thanks. Yes. great question.

wouldn’t as the will space factor. say going size to be think do. necessarily mean, of, I think that yes, I operator the as like And of is mean be the I Barry alignment I I it’s cultural us, a post-acute for I operators we saying, So much it’s well. kind mean, was see important

the us in generally our see ways that Just need hospital again, we solution things. good care terms there’s managed of said, be to to the of that doing All a really have we to model, operator. sure just, quality other things. and a we’re don’t and all how those making and there’s we presume lots answers, of be have efforts partners to ways and towards whatever And but kinds of

we’ll cognizant very of well. as we’re others so learn and And look well, that from as to

priority our there’s or for opportunities that first opportunity fit for various an if of in it first are our think, not operate so to terms desire be would our ourselves. I reasons, And there obviously, come us. criteria, many way the they’re that But a

be the we is first of going to any the in who leadership particular look that market. things is to One

lost we a new with a state. we many And on so a presence. buyer. opportunities of In that have that were always in saying kind we’ve our to oftentimes, don’t markets out present markets where deals we new because new single That’s the only with oftentimes, not facilities do are we’re like even or a of work areas would currently already. cases, set sellers And necessarily approached

we’re be Sometimes, state there in. markets within a can not that

been be opportunities. things operate then would to maybe the that, And operationally. just So -- so new It’s fit market, in an include us time could environment, think states. new effort new long in many other then these to ourselves be will managed And And very your reputation in are in our I care operate the a on new our like up markets We’ve new second certainly regulatory to work partners, a first be priority develop for open systems. to new takes look to that not in. where lot know a really would one entire into of third second your question there but a the get that to states. a partnerships it’s hospital deliberate in will state. years ourselves enter we’re It to new

with of states, aligning new these operating. think, is currently certainly initial in operators I discussions where Ensign like-minded or states I in isn’t so referenced And some

source financing but excitement real estate, a that’s partnerships a lot folks So in been sort as us that just I not gotten provide it. think really well as to a offer options for can The yes, of as has working we’ve of really there’s a sort many well. owns pretty other of lot from we’re excited fellow exciting. positive, that together But and about someone feedback of we as of going or operators that get

Suzanne Snapper

offload onetime very here I operator call. is into about the for want it the themselves. to think excited real someone and people them. at successful want other every We the aren’t for a thing to who long have being for estate looking the is it trying operations. to as They we’re look best-in-class be But really dollar transaction in

Chad that so we And talked partnership about. great can have just that that

Operator

the from come of will Stephens. Fidel question line next from Scott Our

Scott Fidel

we like risks the up question, from the mean, up how for interested proposed phase-in with opportunity on PDPM maybe assume Medicare X against the balance ultimately front margin needed be the rule you to FY with M&A the ‘XX. think Wanted just going the outcome. to could a tighter and clearly, just back in CMS to opportunities X-year maybe just recalibration scenario. of And would what be manage -- first maybe you being and to And how ends pricing. potentially likely that end risk I probably I bit handicapping a you’re start opportunities, the the just more

thoughts around topic. all in your interested that So

Suzanne Snapper

the that is that about talk year X, it’s rate that think And Scott. sometimes This components reminder, Yes, XXXX. X a October just starting Obviously, the when increase proposed adjustment I we’re confusing the it’s at the the you X.X%. starts. the X.X% the for I -- parity overall cut the about that negative in of positive prepared remarks, looking then X.X% and really talked parity

having always that is components year year current see it. has lag for the we there’s period. a all isn’t the in really the -- still we’re component really that’s of good, incurs about positive in that think Obviously, a those reflected inflation because I missing

next we’ll that we we for this what another another might opportunity that this comment. error another adjustment if where so forecasting to positive believe And have is big year have there’s get year

But at X-year period. whole a cut net even overall the the period really that’s a parity looking see our and we on So we of see. of going market lot about, cut X-year then in again, more rate and would -- said basket I to kind over regards prepared kind included forward over adjustment, with that, having in potentially to remarks, thing a the But we’ve the that pathway of talking hopeful into we normally half. And maybe guidance. likely been to that we’ve as and really we’re

so QX where X.X% gets X.X%, that around our that initially in been increase we kind of really us was puts let really give had guidance color in on that has some released And that and had guidance the we I’ll that. additional assumptions But overall. initial exactly that Barry in our half, if cut we

Barry Port

happen, in is which look, year, it us. mean all growth, is or happens full hand, exciting reality on year we for not, an opportunity we see it’s whether I this -- the in Yes. -- think -- one does we It X for the if see. happens it I

happens that see other us on it we hand, span, if X-year for pathway that we over a concern would path be certainly need any no on still adjust we -- we a the any the On being guidance and have the and for year. to predicted

Suzanne Snapper

range story that it’s of out. long So we put feel short, guidance within we the like either be going that way, to

continue been color the maybe to that opportunity about us that. think I to is thing there. for And can out other see there’s Chad give acquisitions we’ve on that talking an some

Chad Keetch

because this last And did Yes. lot interesting It’s here we see quarter. deals. obviously, an of period X of kind a we been

some with really to the have high just horizon, we that’s on prices point, and I say, there And make priced So are disciplined -- would And that expectations. just that sort to outbid, we finding sellers going deals paying don’t correct. this see continue coming are by appropriately. sense. market with But of been that we’ve in of also at all stay think going we to we’re think to to others that some --

I in And our now. fell -- a in our we’re still pipeline have working swoop deals But again, powder. And fall. why we this adjustment and so the and we’ve on said happened revolver -- I we’ve we like X pricing expectations. all in some -- updated accelerate remarks, just prepared yes, dozen-or-so is all and dry still the that in strong, mean, of that might that’s It got

Scott Fidel

to played of follow-up be on Understood. on just observations how question, that can just seeing over it so turnover you’re the April? insight on dynamics of if if us in of early you quarter? the course helpful sort through maybe give And out quarter staffing second any the give and the hires staffing my the And you’re could then able far dynamics as the sequencing us any

Barry Port

question. Great Yes.

of So hires. we we looking very number of track obviously from -- kind net terms for different we’re usage we number and it of and it call agency at of it in both a a angles, closely,

kind the our it start grown at seen when toughest. to And in expect terms We’ve of currently. so January. kind we momentum of peaked down, usage agency really, equivalents, was workforce you for -- And we really look by have as positive we’ve track terms the that hires. net continue certainly, our come of and of seen And full-time It to in then, through has our are in since finally us trend been -- we we winter we X%. where things

all real pointing a indicators see towards of and all break those so we Scott. that very And down as trends kind encouraging positive direction us, for

Scott Fidel

I one Great. if And more just sneak could in.

on it course improvement you expect picture of quarters? would absent will that that, traditional occupancy in the you’re thinking we into will of just in your that the that generally the interested should year? sort and the -- have you of And your around see about out think of coming terms the various severe that’s... seasonality current sort occupancy some thinking maybe new Or another in internally modeling outlook progressive play how do of play throughout variant -- Just out when

Barry Port

question. last Seasonality, unusual Scott. a that a through saw for that’s year Yes. even the was us. Great question. to Thanks, didn’t expected It Great. improvement see some summer, we of good We And necessarily. happen. steady very which

we’re quarter managed in normally, on when look, a wood. that, slowdown, we improvement in summer fifth mean, We’re of surprised. knock yet, More the occupancy. at this And we’re be positive going. we seen you direction point the about some at consecutive in into see head row care, than I look as on our I we pretty months, time, wouldn’t that haven’t

that to kind artificial makes spite know that is from at we’ve some But some happened, mean because to overall, pace the know volume. seen we’re only We and staffing in challenges. of happened mode from -- in confidence I will we continuing that, that an variants the So we’re And that in terms and have improvement the that of positive we some a onetime seen standpoint. occupancy, recovery improve. in us keep we we’ve occupancy for -- we’ll see We things trend it. gives it that there. used be or things by sense continue we’ve surges which demand have feel those, both limited where us of that been only pretty still even

Operator

from of Ben Markets. next Capital question Our Instructions] [Operator will RBC Hendrix come line from

Ben Hendrix

skilled growing care managed seeing? talk piece progressing payers staffing how revenue becoming care larger little care willingness a a that’s you’re acknowledge your the you mix. to contracting about costs of your and higher that your of Can the and bit managed On managed and the

Suzanne Snapper

the local that can create relationship of solutions can Yes, local part where but national Those as managed and I that we local on relationships that level, local with at a is color. long -- could maybe something and level, and [indiscernible] solve they level that care that managed start working mean, a working that team at atmosphere are Barry then is you their the clinician, there. I’ll care the really an really make both operator, simply resource really add been strong recall, I think we’ve local problems time. this some

that’s we’ve so And what take really up. really seen

the sure really can, full a are care think during and on, this, the they discussion other to the to we locations happen pandemic, and period acuity getting say was the partners think would trust like saw for that but care is we’ve I continue facility into it nursing about of seen the they managed increases, well. versus looking our I to the we that us with patient as always patient motion. we make pandemic. acuity getting it’s early how And after managed care hopeful what skilled on of and time. think in feels capture I created care much some were as dollars as And lot it in think of I potentially of additional I during played

what you how about can -- debate imagine, get And as in. should much and get discussion so healthy and should people people it’s right

component well right market challenge some information that right again cost now. a showing and labor that that those always that we’re as is So additional them obviously recognize nationally discussion occurring now labor locally to associated in give to until we are them and trying insight and make additional as and members to that with with people levels try that at various sure direct the

done. wouldn’t I It’s to take we And have an organization. say so or contracts and that’s that it’s don’t going discussion X in discussion ongoing a it’s one X because

our providers. contracts that team with managed as as the care We have daily happens of hundreds well

Ben Hendrix

estate unencumbered in the to about potentially capacity with this impact strong your be -- or real interest net for any rising assets. rates rates, it your capacity have just expectations on strategy, even changes whether the lever is liquidity, any very thinking triple at you’re to or lease though you your term separately, your all then growth way And any changes

Chad Keetch

a just it’s with real sure happy from keep eye estate really market great floating But we’re guess, element But is a, we’re we’re terms. make especially good of going kind our of levels that. debt of gave on so we Ben. our with just of And a say really healthy side of line close mean, in a question, so new Yes, banking where SOFR-based certainly the agreement there things. our us I to kind I would I to attractive, kind is, a partners the terms are it. credit that the and

really fixed assets could get to want excited bunch a that, estate we if we too. that. unlevered we’re have financing do real some We that obviously about So of

it that though, of paying. down end the to All it, of comes you’re the day, at the prices

And the And to there’s long so make doing and so operators price enough impact it to as there’s make real It of you’re perform. cushion forward-looking deal, long affects our big a can that element we growth speak. terms proper everything kind the as give you’re sort doesn’t sure a But that of think we how of the as paying can just there are room, a path. obviously, do, sure estate expenses part we to we of you and that.

Barry Port

to I’ll increases leases, the ensure of been as kind years one a escalators. cap talking the the go, you’re rate as on Ben, the very mean about all just team thing our too, I net have as of leases Chad far over and triple his inflation add have that diligent

all really which our we is So our -- been hedge really seeing average triple X.X% right ahead. increase good leases, we’re net cap against for what around escalator of a at has

a got line. in keep net will leases there we’ve So our safety that good

Operator

the any back showing for further remarks. to any queue. closing not the I’m I’d call Barry to turn like over in And questions

Barry Port

and Victor, thank today. you, you, Thank for us joining everyone,

Operator

call. conference today’s participating. you for concludes this And Thank

have great You Thank weekend. a may all disconnect. Everyone, you.

The Ensign Group, Inc. (ENSG) 30 Apr 222022 Q1 Earnings call transcript