We know we’ve said this before, but The Ensign Group continues to be the Energizer Bunny of the skilled nursing sector, consistently posting positive results in turbulent operating environments. Its Q1 earnings report, which factored in the Omicron surge and unprecedented staffing challenges, reported GAAP diluted earnings per share of $0.89 and adjusted EPS of $0.99 for the quarter ended March 31, 2022, representing increases of 3.5% and 13.8% over the prior year quarter, respectively.
Consolidated GAAP revenues rose to $713.4 million, an increase of over 13.5% compared with the prior year quarter, but GAAP net income also rose by 2.3% over the prior year quarter to $50.3 million. Adjusted EBITDA margin actually grew to 13.0% or 10 basis points higher year over year and quarter over year.
Looking at Ensign’s portfolio, same store and transitioning skilled mix days were up by 2.3% for the quarter to 34.3%, and same store skilled mix improved by 2.2% to 35.2% sequentially over the prior quarter. As a result, total skilled services revenue rose by 14.3% over the prior year quarter to $686.8 million, and the total skilled services segment income increased to $98.3 million or 10.5% over the prior year quarter.
Ensign’s payor mix also improved, with combined same store and transitioning Medicare revenue and days improving by 12.3% and 12.0%, respectively, sequentially over the prior quarter. Also, same store and transitioning managed care revenue improved by 10.2% and 22.8%, respectively, and same store and transitioning managed care census increased by 9.6% and 18.0%, respectively, over the prior year quarter. Ensign managed to post an occupancy increase in the quarter, rising 30 basis points sequentially to 74.2%, which is 310 basis points higher than the prior year quarter. That marks the fifth consecutive quarterly gain, which considering the headwinds is impressive.
Ensign appears to be in growth mode, having made nine acquisitions so far this year involving nine properties or operations with a combined 1,168 beds and units. But, its new captive REIT, Standard Bearer Healthcare REIT, has also already started growing since its January 3 launch with 95 properties. It added two assets to its portfolio during the quarter, both of which are operated by Ensign affiliates. Looking forward, Ensign has $248.5 million of cash and $593.3 million available on its credit line after its recent $250 million expansion. So, we’re sure we will hear of more acquisitions soon.
