ENSIGN GROUP, INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>The Ensign Group, Inc. filed its 2023 10-K report detailing its financial position and operations.</b>

AI Summary

ENSIGN GROUP, INC (ENSG) filed a Annual Report (10-K) with the SEC on February 1, 2024. The Ensign Group, Inc. reported total assets of $3,197,859,000 as of December 31, 2023. Total debt for The Ensign Group, Inc. was $1,007,000 as of December 31, 2023. The company's fiscal year ends on December 31st. The filing is a Form 10-K for the period ending December 31, 2023. The Ensign Group, Inc. is classified under SIC code 8051: SERVICES-SKILLED NURSING CARE FACILITIES.

Why It Matters

For investors and stakeholders tracking ENSIGN GROUP, INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of The Ensign Group's financial health and operational performance for the fiscal year 2023, crucial for investors assessing its stability and growth prospects. Understanding the company's asset base, debt levels, and operational segments as detailed in this filing is essential for evaluating its market position within the skilled nursing care facilities industry.

Risk Assessment

Risk Level: low — ENSIGN GROUP, INC shows low risk based on this filing. The risk is low as the filing is a standard annual report (10-K) and does not indicate any immediate financial distress or significant negative events.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the company's performance and potential challenges in the skilled nursing care sector.

Financial Highlights

total Assets

3197859000

total Debt

1007000

Key Numbers

• 3,197,859,000 — Total Assets (As of December 31, 2023)
• 1,007,000 — Total Debt (As of December 31, 2023)
• 2023-12-31 — Fiscal Year End (Report period)
• 2024-02-01 — Filing Date (Date of submission)

Key Players & Entities

• ENSIGN GROUP, INC. (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-01 (date) — Filing date
• 8051 (other) — Standard Industrial Classification

FAQ

Industry Context

The Ensign Group, Inc. operates within the skilled nursing care facilities industry, providing essential healthcare services.

Regulatory Implications

The company is subject to regulations governing healthcare providers, including those related to patient care, billing, and operational standards.

What Investors Should Do

1. Analyze the company's financial statements for revenue trends, profitability, and asset management.
2. Review the risk factors section for potential challenges and mitigation strategies in the healthcare sector.
3. Compare key financial metrics with industry benchmarks and prior year performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-01: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year ended December 31, 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share ENSG NASDAQ Global Select Mar
• $2,014,396,000 — nt have been excluded (in the amount of $2,014,396,000) in that such persons may be deemed to
• $82.5 m — , 2023, we generated rental revenues of $82.5 million, of which $66.7 million was deriv
• $66.7 million — tal revenues of $82.5 million, of which $66.7 million was derived from our independent subsid

Filing Documents

• ensg-20231231.htm (10-K) — 3235KB
• ensg123123ex211.htm (EX-21.1) — 463KB
• ensg123123ex231.htm (EX-23.1) — 2KB
• ensgq42023ex311.htm (EX-31.1) — 12KB
• ensgq42023ex312.htm (EX-31.2) — 13KB
• ensgq42023ex321.htm (EX-32.1) — 11KB
• ensgq42023ex322.htm (EX-32.2) — 11KB
• ensg123123ex97.htm (EX-97.0) — 32KB
• ensg-20231231_g1.jpg (GRAPHIC) — 13KB
• ensg-20231231_g2.jpg (GRAPHIC) — 51KB
• ensg-20231231_g3.jpg (GRAPHIC) — 52KB
• ensg-20231231_g4.jpg (GRAPHIC) — 53KB
• ensg-20231231_g5.jpg (GRAPHIC) — 54KB
• ensg-20231231_g6.jpg (GRAPHIC) — 108KB
• 0001125376-24-000018.txt (&nbsp;) — 15181KB
• ensg-20231231.xsd (EX-101.SCH) — 84KB
• ensg-20231231_cal.xml (EX-101.CAL) — 122KB
• ensg-20231231_def.xml (EX-101.DEF) — 471KB
• ensg-20231231_lab.xml (EX-101.LAB) — 1082KB
• ensg-20231231_pre.xml (EX-101.PRE) — 768KB
• ensg-20231231_htm.xml (XML) — 2159KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 31 Item 1B. Unresolved Staff Comments 63 Item 1C. Cybersecurity 63 Item 2.

Properties

Properties 65 Item 3.

Legal Proceedings

Legal Proceedings 67 Item 4. Mine Safety Disclosures 69 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 69 Item 6. [RESERVED] 71 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 71 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 90 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 91 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 127 Item 9A.

Controls and Procedures

Controls and Procedures 127 Item 9B. Other Information 127 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 127 PART III. Item 10. Directors, Executive Officers and Corporate Governance 127 Item 11.

Executive Compensation

Executive Compensation 127 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters 128 Item 13. Certain Relationships and Related Transactions and Director Independence 128 Item 14. Principal Accountant Fees and Services 128 PART IV. Item 15. Exhibits, Financial Statements and Schedules 129 Item 16. Form 10-K Summary 131

Signatures

Signatures 132 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements, which include, but are not limited to our expected future financial position, results of operations, cash flows, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities and plans and objectives of management. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These statements are subject to the safe harbors under Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors, some of which are listed under the section "Risk Factors" in Part I, Item 1A of this Annual Report on Form 10-K. Accordingly, you should not rely upon forward-looking statements as predictions of future events. These forward-looking statements speak only as of the date of this Annual Report, and are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. We undertake no obligation to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law. As used in this Annual Report on Form 10-K, the words, "Ensign," "Company," "we," "our" and "us" refer to The Ensign Group, Inc. and its consolidated subsidiaries. All of our independent subsidiaries, the Service Center (defined below) and our wholly-owne

BUSINESS

ITEM 1. BUSINESS Founded in 1999, The Ensign Group, Inc. ("Ensign") is a holding company with independent subsidiaries that provide skilled nursing, senior living and rehabilitative services, as well as other ancillary businesses (including mobile diagnostics and medical transportation), in 13 states. As part of our investment strategy, we also acquire, lease and own healthcare real estate to service the post-acute care continuum through acquisition and investment opportunities in healthcare properties. For the year ended December 31, 2023, we generated approximately 96.0% of our revenue from our skilled nursing facilities. The remainder of our revenue is primarily generated from our real estate properties, senior living services and other ancillary services. OPERATIONS Overview As of December 31, 2023, we offered skilled nursing, senior living and rehabilitative care services through 297 skilled nursing and senior living facilities. Of the 297 facilities, we operated 214 facilities under long-term lease arrangements and have options to purchase 11 of those 214 facilities. Our real estate portfolio includes 113 owned real estate properties, which included 83 facilities operated and managed by us, 30 operations leased to and operated by third-party operators, and the Service Center's California location. Of the 30 real estate operations leased to third-party operators, one senior living facility is located on the same real estate property as a skilled nursing facility that we own and operate. Our Unique Approach and Structure The name "Ensign" is synonymous with a "flag" or a "standard" and refers to our goal of setting the standard by which all others in our industry are measured. We believe that through our efforts and leadership, we can foster a new level of patient care and professional competence at our independent subsidiaries, and set a new industry standard for each patient we service. We view healthcare services primarily as a local business. We believ

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