The Ensign Group, Inc. Q1 FY2026 earnings call

Local leaders and teams are excellent in health care services, achieving high census and skilled mix. Same-store and transitioning occupancy reached record highs. Skilled revenue and days, Medicare revenue increased. Managed care volumes showed growth across all skilled payers. Clinical outcomes are outstanding with facilities outperforming peers in surveys and quality measures. Talent retention is improving. Acquisitions of new operations are ongoing with growth in beds and units. Standard Bearer added new assets. SunWest and Mystic Park are highlighted as successful operations with growth in revenues, skilled mix, and clinical improvements.

Increasing annual 2026 earnings guidance to $7.48 to $7.62 per diluted share, up from original $7.41 to $7.61. Increasing annual revenue guidance to $5.81 billion to $5.86 billion, up from $5.77 billion to $5.84 billion. Guidance based on factors like performance, momentum in occupancy and skilled mix, progress on labor and other initiatives, inclusion of acquisitions, etc.

Q: Comments on clinical review intensity and EPS guidance related to M&A.

A: Clinical review is not new, team handles it. EPS guidance revision: Turnaround acquisitions have revenue bump disproportionate to EPS bump, most of acquisition impact on revenue initially but expected long-term success.

Q: Deal pipeline, labor recruiting/retention, ERP system.

A: More mid-size regional portfolios, larger deals handled by breaking into bite-sized pieces. Labor: Data systems, best practice sharing, service center support. ERP: Just implemented, working through first stages with long-term efficiency potential.

Q: Thoughts on iSNP, behavioral health.

A: Looking at iSNP, behavioral health has strong demand with locally driven innovation.

Q: Medicaid rates, other innovative areas.

A: Medicaid rates steady, active in meetings. Other innovative areas have pilot programs with local operators driving ideas.