The Ensign Group, Inc. (ENSG) has reported a 69.04 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $2.84 million, or $0.05 a share in the quarter, compared with $9.17 million, or $0.18 a share for the same period last year. On an adjusted basis, net profit for the quarter was almost stable at $17.86 million, or $0.34 a share, when compared with the last year period. Revenue during the quarter grew 15.27 percent to $441.74 million from $383.23 million in the previous year period. Gross margin for the quarter contracted 73 basis points over the previous year period to 12.30 percent. Total expenses were 98.29 percent of quarterly revenues, up from 95.74 percent for the same period last year. That has resulted in a contraction of 255 basis points in operating margin to 1.71 percent.
Operating income for the quarter was $7.55 million, compared with $16.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $41.08 million compared with $37.57 million in the prior year period. At the same time, adjusted EBITDA margin contracted 50 basis points in the quarter to 9.30 percent from 9.80 percent in the last year period.
"We are very encouraged by the results our skilled nursing operators achieved during the quarter as we are beginning to see an upward trend in our same store, transitioning and newly acquired buckets," said Ensign's president and chief executive officer Christopher Christensen. "We are also very impressed by the continued successes of our new ventures. Our home health, hospice, assisted living and other new venture leaders have helped us enhance our post-acute care services and have strengthened the organization both clinically and financially," he added.
Operating cash flow improves significantly
The Ensign Group, Inc. has generated cash of $19.59 million from operating activities during the quarter, up 54.28 percent or $6.89 million, when compared with the last year period. The company has spent $21.40 million cash to meet investing activities during the quarter as against cash outgo of $20.10 million in the last year period.
The company has spent $24.39 million cash to carry out financing activities during the quarter as against cash inflow of $17.21 million in the last year period.
Cash and cash equivalents stood at $31.51 million as on Mar. 31, 2017, down 38.67 percent or $19.86 million from $51.37 million on Mar. 31, 2016.
Working capital declines
The Ensign Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $95.75 million as at Mar. 31, 2017, down 23.48 percent or $29.38 million from $125.13 million on Mar. 31, 2016. Current ratio was at 1.46 as on Mar. 31, 2017, down from 1.74 on Mar. 31, 2016.
Days sales outstanding went down to 46 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding went down to 8 days for the quarter from 10 for the same period last year.
Debt increases substantially
The Ensign Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $266.63 million as on Mar. 31, 2017, up 82.29 percent or $120.36 million from $146.27 million on Mar. 31, 2016. Total debt was 27.08 percent of total assets as on Mar. 31, 2017, compared with 18.91 percent on Mar. 31, 2016. Debt to equity ratio was at 0.58 as on Mar. 31, 2017, up from 0.36 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.19 for the quarter from 11.91 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
