The Ensign Group Inc. ENSG recently announced the acquisition of The Orchard Post-Acute Care Center – a 162-bed skilled nursing facility in Whittier, CA. The facility has been operated by an Ensign Group subsidiary for the last 9 years under a sublease.
The buyout will boost The Ensign Group’s staff strength, which will help it to provide quality care.
The Ensign Group, through its operating subsidiaries, offers skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care services. As of Mar 31, 2015, the company operated 143 facilities, 13 home health and 12 hospice operations, two home care businesses, one transitional care management company, 16 urgent care centers and a mobile x-ray and diagnostic company.
Acquisitions have been a key growth catalyst for The Ensign Group for years. Over the last two years, the company has taken over 29 facilities across eight states. Transitional, skilled and assisted living revenues generated by these facilities increased by approximately $57.5 million to almost $90 million in 2014.
In the first quarter of 2015, the company’s consolidated revenues increased 28% year over year to $306.5 million. Consolidated EBITDAR increased 36.2% from the year-ago quarter to $50.7 million. Notably, the company acquired nine skilled nursing operations, five assisted and independent living operations, one home health business, one home care business and two urgent care businesses in the quarter.
In April this year, The Ensign Group took over the underlying real estate of Panorama Gardens Nursing and Rehabilitation Center – a 149-bed skilled nursing facility in Panorama City, CA. The company also acquired Coral Desert Rehabilitation and Care – a 60-bed all-private/Medicare skilled nursing facility in St. George, Utah.
Recently, The Ensign Group’s subsidiary Cornerstone Healthcare acquired CA-based Managed Care at Home, which is a Medicare and Medi-Cal certified home health agency that serves the San Jose area.
We believe that the company will continue to pursue acquisitions that will expand its customer base and market share going forward.
Stocks to Consider
Currently, The Ensign Group sports a Zacks Rank #1 (Strong Buy).
Other favorably-ranked stocks in the same space include Cambrex Corp CBM, China Biologic CBPO and Emergent BioSolutions EBS. All the three stocks carry the same Zacks Rank as The Ensign Group.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment