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Yahoo
02-06-2025
- Business
- Yahoo
The Ensign Group Acquires Two Skilled Nursing Facilities in Idaho
SAN JUAN CAPISTRANO, Calif., June 02, 2025 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that it acquired the operations of Ironwood Rehabilitation and Care Center, an 80-bed skilled nursing facility located in Coeur d'Alene, Idaho and Lakeside Rehabilitation and Care Center, a 100-bed skilled nursing facility also located in Coeur d'Alene, Idaho. These acquisitions were effective June 1, 2025 and are subject to a long-term, triple net master lease with a third-party landlord. 'We are excited to add these two facilities to our increasing presence in Idaho,' said Barry Port, Ensign's Chief Executive Officer. 'Coeur d'Alene is an area that we are thrilled to be in and look forward to continued growth around these facilities,' he added. Steve Farnsworth, President of Pennant Healthcare LLC, Ensign's northwest subsidiary, added 'These facilities are a wonderful fit for us both culturally and operationally and there should be a seamless transition bringing them into our local cluster. The caregivers are amazing, and we can't wait to work with them to provide incredible service to our residents and their families.' In a separate transaction on the same day, Ensign announced that it acquired the operations of Toluca Lake Transitional Care, a 52-bed skilled nursing facility located in North Hollywood, California. The real estate will be acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign's captive real estate company, following receipt of state regulatory approvals. The acquisition was part of the larger acquisition of seven other facilities from Providence Home and Community Care, which was announced in December 2024. These acquisitions were effective as of June 1, 2025, and bring Ensign's growing portfolio to 347 healthcare operations, which includes 44 senior living operations, across 17 states. Ensign subsidiaries, including Standard Bearer, own 144 real estate assets. Mr. Port reaffirmed that Ensign is actively seeking opportunities to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare related businesses throughout the United Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 347 healthcare facilities in Alabama, Alaska, Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, Oregon, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at Ensign Group, Inc., (949) 487-9500, ir@ SOURCE: The Ensign Group, Inc.
Business Upturn
02-05-2025
- Business
- Business Upturn
The Ensign Group Adds Skilled Nursing Facility in Washington
By GlobeNewswire Published on May 2, 2025, 15:00 IST SAN JUAN CAPISTRANO, Calif., May 02, 2025 (GLOBE NEWSWIRE) — The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that it acquired the real estate and operations of Marianwood Health and Rehabilitation , a 117-bed skilled nursing facility located in Issaquah, Washington. The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign's captive real estate company, and will be operated by an Ensign-affiliated tenant. The acquisition was effective as of May 1, 2025 and was part of the larger acquisition of seven other facilities from Providence Home and Community Care, which was announced in December 2024. 'We are honored to have been entrusted to continue the long-standing tradition of quality care in this operation,' said Barry Port, Ensign's Chief Executive Officer. 'This facility clusters well with our existing locations and continues to build a strong portfolio for Standard Bearer in the northwest,' he added. Steve Farnsworth, President of Pennant Healthcare LLC, Ensign's Washington-based subsidiary, added 'This operation is a perfect fit for us, and we are excited to continue our strong growth in Washington. The team is incredible, and we are excited to join forces with them to provide excellence to our residents and their families.' This acquisition was effective as of May 1, 2025, and brings Ensign's growing portfolio to 344 healthcare operations, which includes 44 senior living operations, across 17 states. Ensign subsidiaries, including Standard Bearer, own 144 real estate assets. Mr. Port reaffirmed that Ensign is actively seeking opportunities to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare related businesses throughout the United States. About Ensign™ The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 344 healthcare facilities in Alabama, Alaska, Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, Oregon, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at Contact Information The Ensign Group, Inc., (949) 487-9500, [email protected] SOURCE: The Ensign Group, Inc. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Yahoo
29-04-2025
- Business
- Yahoo
The Ensign Group's (NASDAQ:ENSG) Q1 Earnings Results: Revenue In Line With Expectations
Healthcare services company The Ensign Group (NASDAQ:ENSG). met Wall Street's revenue expectations in Q1 CY2025, with sales up 16.1% year on year to $1.17 billion. Its non-GAAP profit of $1.52 per share was 1.9% above analysts' consensus estimates. Is now the time to buy The Ensign Group? Find out in our full research report. Revenue: $1.17 billion vs analyst estimates of $1.17 billion (16.1% year-on-year growth, in line) Adjusted EPS: $1.52 vs analyst estimates of $1.49 (1.9% beat) Adjusted EBITDA: $137.4 million vs analyst estimates of $133.7 million (11.7% margin, 2.8% beat) Operating Margin: 8.6%, in line with the same quarter last year Sales Volumes rose 12.5% year on year (10.1% in the same quarter last year) Market Capitalization: $7.32 billion 'We are thrilled to announce another record setting quarter achieved by our local teams. In spite of all the industry noise, our results this quarter demonstrate that we've never been stronger, showing yet again that sound fundamentals coupled with incredible passion can forge consistency even in an ever-changing environment. Our operators set several all-time highs during the quarter, which are only made possible by strong clinical outcomes achieved by our dedicated team of our caregivers and front-line staff,' said Barry Port, Ensign's Chief Executive Officer. Founded in 1999 and named after a naval term for a flag-bearing ship, The Ensign Group (NASDAQ:ENSG) operates skilled nursing facilities, senior living communities, and rehabilitation services across 15 states, primarily serving high-acuity patients recovering from various medical conditions. A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, The Ensign Group's 15.5% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. The Ensign Group's annualized revenue growth of 17.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We can better understand the company's revenue dynamics by analyzing its number of units sold, which reached 2.54 million in the latest quarter. Over the last two years, The Ensign Group's units sold averaged 13.2% year-on-year growth. Because this number is lower than its revenue growth, we can see the company benefited from price increases. This quarter, The Ensign Group's year-on-year revenue growth was 16.1%, and its $1.17 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 12.8% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and implies the market sees success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. The Ensign Group was profitable over the last five years but held back by its large cost base. Its average operating margin of 8.7% was weak for a healthcare business. Analyzing the trend in its profitability, The Ensign Group's operating margin might fluctuated slightly but has generally stayed the same over the last five years, meaning it will take a fundamental shift in the business model to change. This quarter, The Ensign Group generated an operating profit margin of 8.6%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. The Ensign Group's EPS grew at an astounding 18.4% compounded annual growth rate over the last five years, higher than its 15.5% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn't expand and it didn't repurchase its shares, meaning the delta came from reduced interest expenses or taxes. In Q1, The Ensign Group reported EPS at $1.52, up from $1.30 in the same quarter last year. This print beat analysts' estimates by 1.9%. Over the next 12 months, Wall Street expects The Ensign Group's full-year EPS of $5.72 to grow 12.7%. It was good to see The Ensign Group narrowly top analysts' sales volume expectations this quarter. EPS also beat. Overall, this quarter had some key positives. The stock remained flat at $129.42 immediately following the results. Is The Ensign Group an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
Q4 2024 Ensign Group Inc Earnings Call
Chad Keetch; Executive Vice President, Chief Investment Officer, Secretary; Ensign Group Inc Barry Port; Chief Executive Officer, Director; Ensign Group Inc Spencer Burton; President, Chief Operating Officer - Ensign Services Inc; Ensign Group Inc Suzanne Snapper; Chief Financial Officer, Executive Vice President, Director; Ensign Group Inc Benjamin Hendrix; Analyst; RBC Capital Markets Raj Kumar; Analyst; Stephens Albert Rice; Analyst; UBS Securities LLC Operator Hello, and thank you for standing by. My name is Bella, and I will be your conference operator today. At this time, I would like to welcome everyone to The Ensign Group Q4 earnings call. (Operator Instructions) I would now like to turn the conference over to Mr. Keetch. You may begin. Chad Keetch Thank you, operator, and welcome, everyone. We filed our earnings press release yesterday, and it is available on the Investor Relations section of our website at A replay of this call will also be available on our website until 5:00 PM Pacific on Friday, February 28, 2025. We want to remind anyone that might be listening to a replay of this call that all statements are made as of today, February 6, 2025, and these statements have not been nor will be updated subsequent to today's call. Also, any forward-looking statements made today are based on management's current expectations, assumptions or beliefs about our business and the environment in which we operate. These statements are subject to risks and uncertainties that could cause our actual results to materially differ from those expressed or implied on today's call. Listeners should not place undue reliance on forward-looking statements and are encouraged to review our SEC filings for a complete discussion of factors that could impact our results. Except as required by federal securities laws, Ensign and its independent subsidiaries do not undertake to publicly update or revise any forward-looking statements where changes arise as a result of new information, future events, changing circumstances or for any other reason. In addition, The Ensign Group, Inc. is a holding company with no direct operating assets, employees or revenues. Certain of our independent subsidiaries, collectively referred to as the service center, provide accounting, payroll, human resources, information technology, legal, risk management and other services to the other independent subsidiaries through contractual relationships. In addition, our captive insurance subsidiary, which we refer to as the insurance captive, provides certain claims made coverage to our operating companies for general and professional liability as well as for workers' compensation insurance liabilities. Ensign also owns Standard Bearer Healthcare REIT, Inc., which is a captive real estate investment trust that invests in health care properties and enters into lease agreements with certain independent subsidiaries of Ensign as well as third-party tenants that are unaffiliated with The Ensign Group. The words Ensign, company, we, our, and us refer to The Ensign Group, Inc., and its consolidated subsidiaries. All of our independent subsidiaries of Service Centers, Standard Bearer Healthcare REIT and the insurance captive are operated by separate independent companies that have their own management, employees and assets. References herein to the consolidated company and its assets and activities as well as the use of the words we, us and our and similar terms are not meant to imply nor should be construed as meaning that The Ensign Group has direct operating assets, employees or revenue or that any of the subsidiaries are operated by The Ensign Group. Also, we supplement our GAAP reporting with non-GAAP metrics. When viewed together with our GAAP results, we believe that these measures can provide a more complete understanding of our business, but they should not be relied upon to the exclusion of GAAP reports. A GAAP to non-GAAP reconciliation is available in yesterday's press release and is available in our Form 10-K. And with that, I'll turn the call over to Barry Port, our CEO. Barry? Barry Port Thanks, Chad, and thank you all for joining us today. Our leaders and their teams across the organization once again posted record clinical and financial results and continue to build remarkable momentum in each market across our portfolio. Our success is entirely due to the efforts and commitment of those leadership teams, caregivers, field resources, and service center partners. One of our most important priorities is to support those that care for our patients every day. That core value of customer second is something our teams across the organizations embrace as we attract and develop caregivers and leaders. We are building a formidable bullpen of caring and passionate partners who are determined to live our mission to dignify post-acute care. After other another record year and quarter, we're excited about the many opportunities to continue to grow this effort by capturing the enormous upside in our portfolios, we relentlessly focus on fundamentals across the organization. We are pleased to see same-store and transitioning occupancy increased by 2.7% and 4.1% for the year and grew by 2.3% and 4.7% over the prior-year quarter respectively. We also saw skilled days increased by 3.8% for our same-store and 10.9% for transitioning operations over the prior-year quarter. In addition, our managed care census grew by 6.6% and 27.7% for our same-store and transitioning operations respectively over the prior-year quarter. These results demonstrate the exciting momentum even in our more mature operations. We are very pleased with these results but even more excited about these outcomes because they were achieved while simultaneously adding 57 new operations across almost every market we serve. When we look at the combination of organic growth and new acquisitions, we see a very bright future ahead. We are very humbled by what we were able to accomplish in 2024, and we're eager to continue to drive organic improvements and take advantage of the acquisition opportunities that we see on the horizon. We're issuing our 2025 earnings guidance of $6.16 to $6.34 per diluted share and annual revenue guidance of $4.83 billion to $4.91 billion. The midpoint of this 2025 earnings guidance represents an increase of 13.8% over our 2024 results and is 31% higher than our 2023 results. We look forward to 2025 with confidence that our partners will continue to manage and innovate while balancing the addition of newly acquired operations. This annual guidance comes on top of the extraordinary growth we experienced in the last few years. To put this performance in perspective, over the last five years, our total revenue increased by $2.2 billion or 109.2%, representing a 15.9% compound annual growth rate, while our diluted GAAP earnings per share grew by $3.48 in 2019 to $5.12 in 2024, representing a 25.6% compounded annual growth rate. In addition, since we spun out the Pennant Group in 2019, we have seen adjusted EPS grow by 209% with a CAGR of 25.3%. This performance is not due to some large event or a single transformative transaction but instead is the result of steady and consistent growth and performance quarter after quarter, which comes from a collective belief and commitment held by all of our partners to expand our mission in a methodical and thoughtful way. We look forward to the upcoming year and are confident that our partners can reach new heights in clinical and financial performance as they apply our proven locally driven model. And as we evaluate our expanding portfolio, we are very excited about the continued growth in occupancy and skilled mix that we experienced last year, which is continuing so far into the first quarter of this year. There are so many opportunities in front of us to optimize operational efficiencies and drive occupancy and skilled mix as we continue to successfully unlock value and opportunity in the dozens of recently acquired operations. Our leaders are poised to again showcase our ability to find, acquire and transition performing and underperforming operations by applying proven Ensign principles developed over 25 years. Next, I'll ask Chad to add some additional insights regarding our growth. Chad? Chad Keetch Thank you, Barry. As we expected, we continue to add to our growing portfolio and are thrilled with the 12 new operations we added during the quarter and since. These include the following: one in Alabama, 8 in Tennessee, one in Wisconsin, one in Texas and one in Nebraska. In total, we added 1,147 new skilled nursing beds and 16 senior living units across 5 states. Of these new operations, 6 of them included the real estate assets, which were acquired by Standard Bearer and leased to an Ensign affiliated operator. This growth brings a number of operations acquired in 2023 and since to 64, 38 of which were acquired since January 2024. We are excited to add density in one of our newest markets in Tennessee, and look forward to deepening our relationships in the healthcare community and building upon the foundation of our strong local leadership. We are also eager to see our first operation in Alabama gained strength and look forward to bolstering our presence in that state over time. As we have talked about before, entering new states is a significant undertaking that for us, must be driven by a proven Ensign leader, who is committed to and has a connection with the new geography. As most of you know, the foundational principle of our entire strategy is the recognition that post-acute care is a locally driven business and the success or failure of any operation is largely determined by the quality of the leadership and the vision of the team leading each unique multimillion dollar business. In addition, having the support of local resources and experts from nearby states has also proven to be a successful model in opening a new market. Lastly, when we go into a new state, we typically look to start with one or two buildings so we can establish a solid launching point for more growth. With Alabama, we were able to check all those boxes and have an outstanding Ensign leader, who has relocated to direct our efforts there in our first building, with the support of our talent in Tennessee and South Carolina. Over time, as we gain strength in our first operation, we will look to add additional facilities to establish our first Alabama cluster. As we have seen recently with Tennessee, eventually, this will grow into multiple clusters, which will eventually comprise a sizable market. We can't wait to watch Alabama become another reflection of the template of growth and development we've seen across our footprint over the last 25 years. We remind you that we are now only in 15 states and have significant bandwidth to grow in the other 35 states. Looking forward, we have already announced a new transaction, which we expect to close in the next few months, that includes two new states: Alaska and Oregon. As with Alabama, each of these new states is driven by an Ensign leader and will represent a small investment with plans to build over time. With all that being said, during 2024 and since, we added new operations in all but 2 of our existing 15 states, spreading out the growth across many markets. While we will continue to evaluate new states that fit our criteria, we will prioritize growth in our established geographies. This not only allows us to deepen our commitment to these markets, but because our transitions do not rely on a centralized acquisition team our growth is not limited by typical corporate bottlenecks. Instead, we look to our local cluster partners to implement the transition plans. So while our rate of growth this year was strong, the distribution of our growth across many markets leaves us with significant bandwidth to grow in most of our markets. We still see significant opportunity to continue to add meaningful density in the markets we know best, and are making progress on several additions that we expect to close in the next few months. While we expect the current rate of acquisitions to continue this year, we remain committed to staying true to the proven deal criteria that have allowed us to grow in a healthy and sustainable way. We continue to see more and more opportunities to acquire new operations, and our focus is to carefully choose the acquisitions that will be accretive to shareholders. Our local leaders continue to recruit future CEOs for Ensign affiliated operations, and we have a deep bench of CEOs in training that are eagerly preparing for their opportunity to lead. We still see evidence that many operators in this industry are struggling, and we expect that the operating environment will translate into many near- and long-term opportunities to both lease and acquire post-acute care assets. However, we do not set arbitrary growth goals and will remain true to our disciplined acquisition strategy. We only grow when we have the right leaders in place and pricing is right. The scalability of our growth model, our healthy balance sheet, combined with the numerous opportunities we see in our existing footprint, give us enormous potential to continue to apply our proven acquisition and transition strategies in 2025. We are also providing additional disclosure on Standard Bearer, which added 13 new assets during the quarter and since and is now comprised of 129 owned properties. Of these assets, 97 are leased to an Ensign affiliated operator and 33 are leased to third-party operators. 10 of these 13 new real estate assets are operated by an Ensign-affiliated operator, and 3 of these properties are senior living assets that are operated by a high-quality, third-party tenant under triple-net long-term lease. Going forward, Standard Bearer continues to work together with its operating partners at Ensign to acquire portfolios comprised of operations that Ensign would operate and facilities at third parties that are interested in operating under a lease. In addition, over the coming months, Standard Bearer also anticipates announcing more acquisitions of real estate that will be operated by third-party operators. Collectively, Standard Bearer generated rental revenue of $25.1 million for the quarter, of which $20.7 million was derived from Ensign-affiliated operations. For the quarter, Ensign reported $15.3 million in FFO and as of the end of the quarter, had an EBITDAR to rent coverage ratio of 2.5 times. And with that, I'll turn the call over to Spencer, our COO, to add more color around operations. Spencer? Spencer Burton Thank you, Chad, and hello, everyone. The incredible results, that we experienced this past quarter and year, were fueled by a combination of innovation and solid growth fundamentals in our more mature operations, along with exciting improvements being made in our newer acquisitions. The first example comes from our same-store category. Victoria Healthcare and Rehabilitation, a 79-bed skilled nursing facility located in Costa Mesa, California, became an Ensign affiliate back in 2003 and it has been a consistent performer every year for the past two decades. The facility's consistency is driven in part by committed stable leadership. CEO, Michael Yuhas, has led the facility since completing his AIT program in 2015. And Joyce Tamayo, the COO; has been part of Victoria's since joining as a frontline RN 18 years ago. Since then, she has systematically worked through most clinical leadership roles at the facility, including Director of Nursing. However, despite a legacy of excellence, 2024 was undeniably a breakout year for Victoria. The Victoria team grew overall occupancy from an already strong 93% in Q4 of 2023 to 95.9% in Q4 of 2024. And skilled revenue mix increased to an astonishing 75.2% during that same period, an improvement of 420 basis points. This performance was fueled by strong growth both in Medicare and managed care days. Costa Mesa is a highly complex and competitive environment with deep saturation of managed care and hospital-based health plans. So Victoria's census growth was only made possible by a consistent achievement of outstanding clinical outcomes. Victoria is currently rated five star by CMS for health inspections, quality measures and overall. Even more impressive, despite operating in a very rigorous state regulatory region, Victoria's state survey scores are 14 times better than the California average. As you would expect, these clinical and occupancy results have led to growth in the business. Revenues increased 14% in Q4 over prior year quarter and EBIT skyrocketed during that same period. Victoria is a prime example of the ongoing potential in legacy operations that can be capped a strong experienced teams build clinical excellence. Our second example comes from our transitioning facilities group. Boulder Canyon Health and Rehabilitation in Boulder, Colorado is a 140-bed SNF that was acquired in 2021. It demonstrates how a turnaround occurs as local leaders apply proven enzyme principles to their unique and often difficult circumstances. Like many of our acquisitions, as of the transition date, Boulder Canyon was a one-star facility with occupancy below 60%. The facility was losing money and was deeply dependent on nursing agency just to meet basic patient needs. Despite these challenges, CEO, Ray Larson; COO, Geralyn Lindsay and their team went to work. They methodically established a culture of love and high achievement and actively recruited the top clinical talent in their area. They built an impressive leadership team and focused on elevating the experience of their frontline employees. As a result, in 2024, the facility completely eliminated nursing agencies, despite growing their workforce to care for increased acuity and occupancy. While quality transformations were happening inside the facility, the Colorado resource team worked alongside facility leaders and cluster partners to transform Boulder Canyon's external reputation, including winning over local hospital systems and key managed care organizations. Recently, one of Colorado's largest narrow network plans added Boulder Canyon as a preferred provider based on the changes in the facility's quality metrics and the trust that they had built working with the sister facility over the years. Today, Boulder Canyon enjoys a newly remodeled physical plant, great quality metrics and an overall five-star rating from CMS. Total occupancy for Q4 of 2024 averaged 84.4% with skilled Medicare days increasing by 70% and managed care days growing by over 200% compared to Q4 of 2023. This stability in labor and growth in census has resulted in a 23% increase in net revenue and a 131% growth in EBIT over the prior year quarter. And if you ask the team of Boulder Canyon, they are just scratching the facility's potential. With that, I'll turn the time over to Suzanne to provide more detail on the company's financial performance and our guidance, and then we'll open up for questions. Suzanne? Suzanne Snapper Thank you, Spencer, and good morning, everyone. Detailed financials for the year and the quarter are contained in our 10-K and press release filed yesterday. Some additional highlights include the following for the year: GAAP diluted earnings per share was $5.12, an increase of 40.3%. Adjusted diluted earnings per share was $5.50, an increase of 15.3%. Consolidated GAAP revenues and adjusted revenues were both $4.3 billion, an increase of 14.2%. GAAP net income was $298 million, an increase of 42.3%. Adjusted net income was $320.5 million, an increase of 17.2%. For the quarter, GAAP diluted earnings per share was $1.36, an increase of 257.9%. Adjusted diluted earnings per share was $1.49, an increase of 16.4%. Consolidated GAAP revenue and adjusted revenues were both $1.1 billion, an increase of 15.5%. GAAP net income was $79.7 million, an increase of 267.4%. Adjusted net income was $87.6 million, an increase of 18.9%. Other key metrics, as of December 31, 2024, include cash and cash equivalents of $464.6 million and cash flow from operations of $347.2 million. During the quarter, the company increased its dividend for the 22nd consecutive year and paid a quarterly cash dividend of $0.0625 per common share. We have a long history of paying dividends. And as the company's liquidity remains strong, we plan to continue its long history of paying dividends in to the future. We also continue to delever our portfolio, achieving a record low lease adjusted net debt-to-EBITDA ratio of 1.9 times. Our ability to delever even during periods of significant growth is particularly noteworthy and demonstrates our commitment to disciplined growth as well as our belief that we can continue to achieve sustainable growth in the long run. In addition, we currently have $572 million of available capacity on our line of credit, when combined with our cash on our balance sheet, gives us over $1 billion in dry powder for future investments. We also own 134 assets, of which 129 are held by Standard Bearer and 110 are completely debt-free and are gaining significant value over time, even adding more liquidity to the help with future growth. As Barry mentioned, we are providing our annual 2025 earnings guidance between $6.16 and $6.34 per diluted share. Our annual revenue guidance between $4.83 billion and $4.91 billion. We have evaluated multiple scenarios, and based on the strength of our performance and the positive momentum we've seen in occupancy and skilled mix as well as the continued progress on agency management and other operational initiatives, we are confident that we can achieve these results. Our 2025 guidance is based on diluted weighted average common shares outstanding of 59.5 million, a tax rate of 25%, the inclusion of acquisitions closed and expected to close to the second quarter of 2025, the inclusion of management's expectations for Medicare and Medicaid reimbursement rates net of provider tax, with the primary exclusion coming from stock-based compensation. Additionally, other factors that could impact quarterly performance include variations in reimbursement systems; the raise and changes in state budgets; seasonality, occupancy, and scope mix; the influence of the general economy, consensus, and staffing; the short-term impact of our acquisition activities, variations in insurance accruals; and other factors. And with that, I'll turn it back over to Barry. Barry? Barry Port Thanks, Suzanne. As we wrap up, I must reemphasize, as I always do, how incredibly honored and grateful that we all are to work alongside our operational leaders, field resources, clinical partners and service center team that are behind these record-setting results. We are completely amazed by their impressive resiliency as they focus on elevating and loving everyone around them. Their collective commitment is truly a blessing. Our future is bright, and we're excited for a busy year ahead. And with that, we'll now turn it over to the Q&A portion of our call. Bella, can you please instruct the audience on the Q&A procedure? Operator (Operator Instructions) Ben Hendricks, RBC Capital Markets. Benjamin Hendrix Congratulations on the results. I just wanted to get your latest thoughts on the Medicaid reimbursement backdrop. Clearly, you guys have had great luck bridging from the COVID-era FMAP payments through the end of the public health emergency. But looking forward, are there any specific programs or aspects of program, supplemental quality incentive or otherwise, that you're exposed to that might be at particularly high risk for cost savings cuts under the new administration versus others? Barry Port Look, it's hard to know exactly where things are going to go during the kind of reconciliation process and what will actually become a priority with in terms of legislation. I can tell you that we are prepared through our industry association and our lobbyists there to help educate members of Congress on any one of the scenarios that might be further explored. Our association has been really nimble and good at having language and legislative options prepared and really just a robust kind of education effort around impacts to the Medicaid program as it relates to seniors. But for us, it's not clear as to what will become a priority. All we can really do is just make sure that we're part of the education process in the meanwhile. We can also just kind of reiterate what we know about the Trump administration that they're committed to the Medicaid program. He said that publicly. He said this as recently as Friday, and he's committed to the senior industry as well -- senior care industry. So we prepare for the worst as always, but I think having Medicaid the impact in a broad-based way is going to be a pretty difficult task for Congress during the reconciliation process. But as for now, no, none of our programs are really at risk that we are aware of. Suzanne Snapper Yes. And I would just add, typically and Republican control, you definitely usually see lighter regulations while there might be some things on the rate. And so like as you stated in the question, we're really trying to nimble during these times. And really utilize that. So if there's regulatory relief, there is some flexibility in our operating model with that and then our involvement at state level is very deep from the legislative side as well as just all the associations that we have at each individual state. Benjamin Hendrix And if I could just follow up real quick specifically on Tennessee, just given your M&A acquisition there. I just wanted to get your thoughts on kind of the overall backdrop, both from a Medicaid perspective, but also just what you're seeing on the horizon in terms of opportunities for preferred provider relationships, kind of like what you called out for Boulder Canyon. Suzanne Snapper Yeah. So just taking a step back and looking at the overall Tennessee market that we're new to obviously, they have and I think there's a lot of noise in the press just because of all the hospitals and the larger reimbursement amounts that they received in Tennessee. Obviously, the amount of supplemental associated with our operations is substantially less than that. And really, it is carried all the way through and approved all the way through July 1st of this year, and then they're looking to and working with legislation there in Tennessee to actually continue that on through the later portion of the year as it relates to skilled nursing. But again, it's not the amount that you're seeing with other large hospitals. With regards to networking, obviously we've been in that state, and I think we talked about this. Anytime we enter a new state, we are doing a lot of preparation. The operator who is kind of had founded that state has been there for a very long time and has established great relationships over this period of time, not only that individual but others that we have looked on from the acquisition and others that we actually had resources in that state have great connections out there. Operator Scott Fidel, Stephens. Raj Kumar This is Raj on for Scott. I had a couple of modeling questions. Just first, around quarterly EPS seasonality in relation to maybe 2024, even historically, and what's kind of baked in guidance from an occupancy and skilled mix perspective? Suzanne Snapper Yeah, kind of going 2024 seasonality first, obviously Q4, historically on the occupancy and skilled mix and Q1 has been our -- the best quarters that we've had typically higher skilled mix, higher occupancy in this both of those quarters. When we look at this year's Q4, obviously, we saw something flat to Q3. The reason why it was flat was because Q3 was so great. And I think you saw during our earnings call and subsequent conversations after that, we had that heightened Q4 occupancy really retain that market share when we looked at hospital occupancy, we were able to keep all the market share and just really had a great Q3, which then continued into Q4, and it's continuing into Q1. And like I mentioned, Q1 historically has been our strongest occupancy and skilled mix seasonality, and we see that same seasonality continuing in 2025. Raj Kumar And then just as a follow-up, just around cash flow from operations kind of expectations there. And anything you'd like to call out that would be unique to 2025 other than the typical working capital seasonality? Suzanne Snapper Yes, I think one of the things we always to keep in mind, and this is just -- every time we have very heavy acquisitions, specifically, right now, we're seeing as we go through that licensing process and the change in ownership process, there have been substantial delays. We've seen slowdowns at the Medicaid offices and approval offices for licensing. And so kind of that cycle that we're typically seeing as it will probably draw out as we continue to do this acquisition pathway. And so we actually see a little bit stretching on that cash flow and the cash turnaround as those acquisitions to continue to come in and the slowdown from the Medicaid offices and other offices (inaudible) Chad Keetch It's just a temporary phenomenon while we're waiting to get that -- those Medicaid certifications and everything turned on, but it can impact the cash flow in the short run. Suzanne Snapper And then other than that, obviously, Q4 saw a little bit of an unusual cash payment as we foreshadowed during the Q3 call, we did have that payment of the settlement that happened a year ago. So that was a little bit dip in the Q4 cash flow. Operator A.J. Rice, UBS. Albert Rice First question, just to ask maybe a little bit about labor cost trends. What are you seeing there? I know it's been moving more favorable than the last year or so. What do you see as you move into '25? And is there anything specific around the Workforce Standards program in California that you're factoring into your outlook and how that might impact you? Spencer Burton Just maybe starting with the general labor environment. We're not seeing massive changes, but we're seeing very gradual improvement that continues quarter-to-quarter recently. We expect that to continue. Some of that's just environmental the labor markets have stabilized more and more since COVID. And part of it is we're relentlessly working on new ways to attract labor, retain the best versus the best CNA, the best frontline workers. And then also, we're looking for leadership development opportunities because our business is very locally driven. And if you have a great local leadership team, that's really the key to having a healthy frontline workforce. And so as we continue to do those things, we think the combination of environmentally, the markets are a little bit better. And as we get better, that bodes well for 2025. Suzanne Snapper And the California Workforce Standard is all baked into the guidance for 2025. We've already included that. We also have -- this is going to be the second year that we're going to be going through that program. And so as we've got a good handle on expectations associated with that program based upon (inaudible). Albert Rice Okay. And maybe just the follow-up question be on the deal pipeline, what are you seeing are the terms on the deals that you're doing changing in any way? What is the competitive landscape around acquisitions look like right now? Chad Keetch Great question. As we kind of said in the prepared remarks, we're seeing a lot of deal flow. And we actually -- we've acquired a lot just in the last 18 months. And we expect to continue kind of on the same pace in 2025. So we've got a lot of deals lined up that we'll be closing over the next several months. As Suzanne mentioned earlier, we are seeing some delays at the change of ownership from the state and granting licenses and stuff like that, that are really like the deals are locked up. We're just waiting to get those licenses. So you'll see us start announcing more closings over the next few months. In terms of competitive landscape, there are way more deals on our desk than we could ever dream of doing. So we are able to be very, very selective. And we often talk about this disciplined growth and that's a lot of things, making sure we have leaders in the markets, leaders that are ready to go to assume the responsibility to transition these buildings. That's obviously the first thing, but also the terms of the acquisitions, we're really particular about making sure if it's a lease, that there's plenty of coverage, and we're not stretching and looking at pro forma results and establishing the rents were pretty firm on using the trailing 12 and not paying for performance that we're going to create. And when we're buying the real estate, we're really focused on price per bed and making sure it's in line with kind of what we see as sustainable prices that will allow us to have the balance sheet that we do. And you can't grow as quickly as we have over time and have a healthy balance sheet if you overpay things. So that's all kind of how we look at it. But -- so with all that said, there's many opportunities for us as we're going through that disciplined analysis on deals. We're -- we tend to win the deals that we want and that we're ready to move forward with and expect that to continue. Operator (Operator Instructions) That concludes our Q&A session. Ladies and gentleman, thank you all for joining. You may now disconnect. Sign in to access your portfolio
