MISSION VIEJO, Calif., Aug. 5, 2014 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq:ENSG), the parent company of the Ensign(TM) group of skilled nursing, rehabilitative care services, assisted living, home health, hospice care and urgent care companies, announced today that it has issued updated 2014 annual guidance reflecting the impact of the spin-off of CareTrust REIT, Inc., which was completed on June 1, 2014, and issued 2015 annual guidance. Ensign also announced today that it expects to issue its second quarter 2014 financial results on Thursday, August 7, 2014.
Updated 2014 Guidance
Management reaffirms guidance for projected revenue at $1.01 billion to $1.025 billion and updated 2014 annual earnings guidance, projecting net income of $50.1 million to $51.2 million and $2.16 to $2.21 per diluted share for the year. The updated guidance is based on the impact of the separation of Ensign's healthcare business and certain real estate assets that was completed on June 1, 2014, which resulted in an increase in rent and diluted weighted average common shares to 23.2 million, and a reduction in depreciation and interest expenses. The guidance also assumes, among other things, acquisitions anticipated to be closed this year, anticipated Medicare and Medicaid reimbursement rate increases net of provider taxes, and tax rates of 38.5%. It excludes acquisition-related costs and amortization costs related to intangible assets, acquired start-up losses at newly-created operations and transaction-related costs connected with the spin-off.
"Going forward, we will provide projections for net income, as well as earnings per share, to provide more visibility into increases in our earnings that are diluted by the increase in our share count, which is the result our deeply held philosophy of sharing ownership broadly with our outstanding operations and service center leaders," said Christopher Christensen, Ensign's President and Chief Executive Officer.
Management also issued 2015 annual guidance, projecting revenues of $1.14 billion to $1.16 billion in revenues, with net income of $58.1 million to $60.2 million and $2.44 to $2.53 per diluted share for the year. "Given the unusual spin-off transaction, we are giving guidance for 2015 now in order to give our investors better visibility into our future earnings," Mr. Christensen added. The 2015 guidance is based on diluted weighted average common shares outstanding of 23.8 million and assumes, among other things, acquisitions anticipated to be closed by the end of 2014, anticipated Medicare and Medicaid reimbursement rate increases net of provider taxes, and tax rates of 38.5%. It also excludes acquisition-related costs and amortization costs related to intangible assets acquired, start-up losses at newly-created operations and transaction-related costs connected with the spin-off.
Ensign also announced today that it expects to issue its second quarter 2014 financial results on Thursday, August 7, 2014 and invites current and prospective investors to tune into a live webcast to be held the following day, Friday, August 8, 2014, at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time), during which Ensign's management will discuss Ensign's second quarter 2014 performance.
To listen to the webcast, or to view any financial or other statistical information required by SEC Regulation G, please visit the Investors section of the Ensign website at http://investor.ensigngroup.net. The webcast will be recorded, and will be available for replay via the website until 5:00 p.m. Pacific Time on Friday, August 29, 2014.
The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services, urgent care services, and other rehabilitative and healthcare services at 126 facilities, nine hospice companies, eleven home health businesses and twelve urgent care clinics in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa, Nebraska and Oregon. More information about Ensign is available at http://www.ensigngroup.net.
CONTACT: The Ensign Group, Inc. (949) 487-9500 email@example.com
Source:The Ensign Group, Inc.