#1ENSIGN GROUP February 2024 INVESTOR PRESENTATION www.ensigngroup.net N N 3#2Our Mission We rely on our culture to accomplish our mission CUSTOMER SECOND PASSION FOR LEARNING LOVE ONE ANOTHER ACCOUNTABILITY CA INTELLIGENT CO OWNERSHIP RISK CAPLICO Our mission is to support the operations we serve in dignifying post-acute care in the eyes of the world. We do that through "Moments of Truth" - everyday situations that are met with out-of-the-ordinary service that surpasses all reasonable expectations. We strive to capture and share these moments of truth on a daily basis. CELEBRATION f O' ENSIGN GROUP#3Disclaimers This presentation contains, and other communications of The Ensign Group, Inc. ("Ensign" or the "Company") may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward- looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." Statements in this presentation concerning the Company's future prospects are forward-looking statements, and are based on management's current expectations, assumptions and beliefs about our business, financial performance, operating results, the industry in which we operate and possible future events. These statements include, but are not limited to, statements regarding our growth prospects and future operating and financial performance. Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions, which may change over time and many of which are beyond our control, and that could cause our actual results to materially and adversely differ from those expressed in any forward-looking statement. Readers should not place undue reliance on any forward-looking statements and are encouraged to review our periodic filings with the Securities and Exchange Commission, including our recently filed Forms 10-K and 10-Q, or other applicable documents that are filed or furnished by the Company with the U.S. Securities and Exchange Commission (the "SEC"), for a more complete discussion of the risks and other factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements. These documents are available on our website at www.ensigngroup.net (information on our website is not incorporated by reference into this presentation and should not be considered part of this document). This information is provided as of today's date only, and except as required by federal securities law, Ensign does not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or for any other reason after the date of this presentation. We supplement our GAAP reporting with EBITDA, adjusted EBITDA, adjusted EBITDAR, adjusted EBT, adjusted net income, adjusted EPS, Funds from Operations (FFO) metrics, as well as segment income and FFO metrics, all of which are supplemental non-GAAP financial measures. They reflect an additional way of looking at aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. They should not be relied upon to the exclusion of GAAP financial measures. A more ample discussion of these GAAP financial measures is available on the "Investor Relations" tab of our website and a reconciliation to GAAP is included as an Appendix to this presentation. During this presentation we may reference operations in any or all of the skilled and assisted living operations and other businesses operated by our independent subsidiaries. Each such business is operated as a separate, wholly owned independent subsidiary that has its own management, employees and assets. References in the presentation to the consolidated "Company" and "its" assets and activities, as well as the use of the terms "we," "us," "our," and similar verbiage are not meant to imply that The Ensign Group, Inc. has direct operating assets, employees or revenue, or that any of the operations, the Service Center, Standard Bearer Healthcare REIT, Inc., or the captive insurance subsidiary are operated by the same entity.#4Table Of Contents 食 همهها About US Since 1999, the independent subsidiaries of The Ensign Group, Inc. (ENSG) have provided communities with exceptional, post-acute care. Portfolio Each of the 300+ businesses are run independently encompassing services delivered by more than 42,000 employees. We foster an entrepreneurial culture of ownership coupled with a field-driven, flat structure. Our Services Our independent subsidiaries offer a broad spectrum of post-acute care including skilled nursing, senior living and other healthcare-related properties and other ancillary businesses. Financials A clinically strong foundation combined with solid operational fundamentals provides an avenue for strong results.#5Patient Service Intensity Ensign's Commitment to Care Continuum Denotes Ensign Business Acute Care Inpatient LTAC Out Patient Rehab Rehab Skilled Nursing Home Health Home Care Home Home Senior Living Care Patient Illness Intensity Ensign is Strategically Positioned to Deliver Long-term Value Local leadership strategy focused on acquisitions in fragmented markets. High quality healthcare outcomes across the continuum driving local reputation and partnerships. Opportunistically drive new ventures in ancillary businesses and markets through its unique leadership model. Access to care continuum through Ensign Pennant Care Continuum. 5#6Ensign Strategically Positioned to Deliver Long-Term Value Experienced Management Management team with combined experience of 90 years at Ensign alone. Presence in Attractive Markets Presence in strategic markets across 14 states with attractive reimbursement and growth profile. Several Growth Levers Leading consolidator in fragmented industry; new ventures; delivering organic and strategic growth. ENSIGN GROUP Multiple Business Lines Diversified operations including skilled services, strategic healthcare campuses, senior living operations, real estate ownership and new ventures. Strong Financial Profile Above industry growth and profitability, stellar balance sheet and strong cash flow conversion. Ensign's Capabilities Create an Ecosystem that Enables Connectivity Among All Stakeholders and Drives a Virtuous Cycle of Success 9#7Ensign's Investment Thesis Ensign is Positioned to Deliver Superior Clinical Results that Will Generate Strong Financial and Operating Results Superior Results Clinical Excellence Strategic Continuum of Care Growth Opportunities Organic, Strategic, Real Estate and New Ventures Culture مهما SA $ 7#8Leading Operational Presence in Attractive Markets Industry Leader with Strong and Growing National Presence .16 12 6 7 3 21. 25 70 8 36 Ensign Group | Investor Presentation 83 2 1 $9 030 Skilled Nursing Operations - 261 Senior Living Operations - 11 Campus Operations - 27 Source: Data as of 2/1/2024.#9Business Leaders Drive Results Track record of attracting, empowering & retaining clinically-focused business leaders. Local Leadership Clusters Empowering local leaders and their teams to provide superior solutions to the specific medical needs of the communities they serve. Superior Clinical Outcomes We partner with many other healthcare organizations with the goal of ensuring our patients are receiving the best possible care. Local Operation of Choice Our independent subsidiaries offer a broad spectrum of post-acute care, including skilled nursing, senior living and other healthcare-related properties and other ancillary businesses Ensign Group | Investor Presentation 6#10Local Leaders are Empowered by our Cluster Model Best Practices Shared Across Clusters Along with Economic and Payor Benefits at Cluster Level Economic Benefits Ops Ops • Sharing of resources across cluster partners. Cluster 1 • Economies of scale/purchasing power. Ops Cluster 4 Ops Ops Ops Ops Ops Ops Payor Benefits Cluster 3 • "Bundle" offering to payors by providing capabilities of the cluster model. Ops Ops • Strengthens relationships with payor partners. Ops • Coordinate to drive superior patient outcomes. What is a Cluster? • • Collaboration and connectivity between operations ("ops") that are geographically close together. Best practices, accountability and ownership are shared among and between clusters. Ops Ops Ops Cluster 2 Ops Ops Ops Incentive Driven • Each operation has full visibility into and accountability for individual and group results within the cluster. Compensation is linked to the cluster's clinical and financial success. 10#11Organizational Focus on Clinical Quality Leads to Superior Financial Results Clinical Quality Translates to Organic Growth SNF Count by CMS Star Rating 1-Star 300 250 200 150 100 50 2-Star 14 21 38 45 60 77 72 2009 2010 2011 2012 2013 2014 2015 Ensign 1-Star Facility % Trend 41.3% 3-Star 4-Star 5-Star (2) 134 86 100 91 102 116 114 113 2016 2017 2018 2019 2020 2021 2022 2023 13.1% $87 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (1) Ensign Adjusted EBITDAR Trend $617 $ in millions 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 11 Refer to pages 53 - 54 for end notes. Source: Data as of Q4'23.#12Multifaceted Growth Opportunities Driven by Organic as well as Strategic Opportunities Creating Value Skilled Mix Organic Occupancy Strategic Fundamentals Disciplined Acquisitions Distressed Assets New Ventures 12#13EPCC Enables Value- Based Care Continuum at the Local Level (3) ENSIGN GROUP — ΡΕΝ ΝΑΝΤ GROUP What is it? Clinical Care Coordination Preferred provider network between Ensign and The Pennant Group, Inc. Empowers local clinical High Quality Care leaders to opt-in resulting in smart and effective solutions for patients. EPCC Enabled Local Ecosystem is Well-Positioned to Existing Clinical Collaboration, Drive Best Quality Care & Outcomes and Benefit From the Shift Toward Value-Based Reimbursement Transitional Care Management patients Payors Providers Optimal Care Setting Transparent Clinical Data 13 Refer to pages 53 - 54 for end notes.#14A Disciplined Approach to Acquisitions & Track Record of Improving Operations to Drive Continued Growth 25.5% of Ensign's skilled nursing operations have been operated less than three full years Proven track record of achieving significant improvement in just 5 quarters (4) 8.0% 74.5% 17.5% ■Same Facility ■Transitioning ■Recently Acquired EBITDAR Margin Skilled Mix Revenue Occupancy 366 bps 467 bps 424 bps Significant impact from growth in EBITDAR margins (5) Significant improvement beyond 5th quarter to 45th quarter 2200 Skilled Mix Rev EBITDAR % 1700 1200 467 684 700 366 585 200 5th Quarter 15th Quarter 2092 713 45th Quarter 15.9% 12.2% 14 Refer to pages 53 - 54 for end notes. Source: Data as of 12/31/2023.#15Demonstrated Track Record of Significant Operational Improvements of Acquired Assets QTD Q4 2023 50.3% ■Same Store (7) Skilled Mix Revenue (6) Consolidated 49.0% Medicare Rates Consolidated $761 37.4% 48.3% $747 (8) (9) ■Transitioning ■Recently Acquired ■Same Store $723 ■Transitioning $819 (10) ■Recently Acquired SNF Occupancy Consolidated 79.2% Skilled Mix Days Consolidated 29.5% 79.9% 76.5% 77.6% 30.9% 20.4% 27.5% ▲ Same Store ■Transitioning ▲ Recently Acquired ■Same Store ■Transitioning ■Recently Acquired Medicaid $281 15 Refer to pages 53 - 54 for end notes. Source: Data as of Q4'23.#16Demonstrated Track Record of Significant Operational Improvements of Acquired Assets YTD Q4 2023 Skilled Mix Revenue (6) Consolidated 50.2% 51.4% 38.5% 49.3% $723 (7) (8) ■Same Store ■Transitioning ■Recently Acquired (9) ■Same Store SNF Occupancy 79.2% Consolidated 78.5% Medicare Rates Consolidated $733 $696 $788 (10) ■Transitioning ▲ Recently Acquired Skilled Mix Days Consolidated 30.4% 76.1% 76.8% 31.9% 21.4% 27.5% ■Recently Acquired ■Same Store ■Transitioning ■Recently Acquired ■Same Store ■Transitioning Medicaid $272 16 Refer to pages 53 - 54 for end notes. Source: Data as of Q4'23.#17Ensign Represents The Growth Story Revenue (11)(14) In the Facility-Based Healthcare Services & Post-Acute Sector ($mm) 2014-2023 CAGR: 15% $3,729 ($mm) $3,025 $2,627 $2,403 2,037 1,438 1,755 1,598 $1,027 1,183 Adjusted EBITDAR (11)(14) 2014-2023 CAGR: 16% $617 $537 $476 $423 $374 $262 $285 $319 $221 $159 (14) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (14) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014-2023 Revenue CAGR 15% 2014 - 2023 Adjusted EBITDAR CAGR 6% 5% 16% 8% 7% ENSIGN GROUP Facility-Based Healthcare Services (12) Post-acute (13) ENSIGN GROUP Facility-Based Healthcare Services (12) Post-acute (13) 17 Refer to pages 53 - 54 for end notes.#18Quarter Over Quarter Highlights (in millions) REVENUE Q4 2023 Q4 2022 21.1% $980.4 $809.5 SAME FACILITY SKILLED NURSING FACILITY 8.0% REVENUE $713.3 $660.4 CONSOLIDATED 17.5% ADJUSTED NET INCOME $73.7 $62.7 Ensign Group | Investor Presentation 18#19Year Over Year Highlights (in millions) REVENUE SAME FACILITY SKILLED NURSING FACILITY REVENUE 2023 2022 23.3% $3,729.4 $3,025.5 7.9% $2,771.6 $2,569.8 CONSOLIDATED ADJUSTED NET INCOME 16.0% $273.5 $235.7 Ensign Group | Investor Presentation 19#20Significant Real Estate Portfolio As of February 1, 2024 % of 299 Facilities Ensign Operates and 30 Owned Real Estate Leased to Third Party Operators (15) Ensign Triple Net Master Leases with Third Party Operators 62.3% 3.4% 25.2% 9.1% Lease Structure 34.3% Leased (without a Purchase Option) Owned + Leased to third party operators Leased (with a Purchase Option) Owned + Operated Total Owned Multiple "triple-net" master leases Terms & Termination • Lease agreements with initial terms from 10 to 20 years, with three 5-year extension options • Consent required for third party operators to sublease, assign, encumber or otherwise transfer or dispose any property Rent Terms • Fixed base rent with CPI-based escalators Expenses • Third party operators responsible for maintenance, capital expenditures, property taxes, insurance and other expenses Other Customary covenants and events of default 20 20 Refer to pages 53 - 54 for end notes. Source: Data as of 2/1/2024.#21Track Record of Successfully Incubating New Ventures PENNANT Completed 2019 GROUP Care Trust REIT ImmediateClinic URGENT CARE Completed in 2014 Completed in 2016 STANDARD BEARER HEALTHCARE REIT, INC ENSIGN PENNANT CAPSTONE TRANSPORTATION PMOXRAY.com PACIFIC MOBILE CARE CONTINUUM agnostics 87 BRIDGE DIALYSIS LIFE SAVING TREATMENT AT HOME Spin Offs Divestitures Current covalence group FOUNDERS R 21#22Standard Bearer REIT Structure Summary & Key Benefits ENSIGN Operations GROUP STANDARD 'BEARER HEALTHCARE REIT, INC Skilled Services Ensign Pennant Care Continuum ■ New Ventures ■ Real Estate Ownership ■Real Estate Management & Monitoring Investment Evaluation and Execution ■ Real Estate Portfolio Performance Reporting Key Benefits of Captive REIT Structure Increased Visibility into Embedded Real Estate Value & Earnings Expanded Real Estate Acquisition Opportunities Capital Flexibility to Grow Independent of Operations Low-Cost Structure: No Capital Gains Trigger Optionality for Future Spin-Out or Other Transaction Ensign Group | Investor Presentation 22 22#23Standard Bearer at a Glance 5 Geographic Footprint 5 LO 1 6 7 4 13 14 27 Note: Figures represent the number of owned properties per state Ensign Group | Investor Presentation 21 5 108 Properties 11 States Key Stats $1.1B (16) Real Estate Fair Value 10,702 Operating Beds / Units 15.1 Years Weighted Avg. Lease Tenor 80.6% (17) Ensign Operated 23 23 Refer to pages 53 - 54 for end notes. Source: Data as of 2/1/2024.#24Standard Bearer Metrics Quarter Over Quarter Rental Revenue - Trend Other Real Estate Metrics $7.5 $7.2 $7.2 $7.1 $7.2 In $ Millions $21.9 In $ Millions $21.0 $19.7 $19.9 $19.4 $4.2 $4.0 $3.8 $3.8 $3.8 $15.6 $15.9 $16.1 $17.0 $17.7 $13.0 $13.2 $13.3 $13.6 $14.2 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 (18) Q2 2023 FFO Segment Income Q3 2023 Q4 2023 (19) Ensign Affiliated Lease Revenue Third-Party Lease Revenue 24 24 Refer to pages 53 - 54 for end notes. Source: Data as of Q4'23.#25Liquidity Financials Measure Summary of Cash Flows (In millions) Net cash provided by (used in): Operating activities Investing activities Financing activities Net increase in cash and cash equivalents Cash and cash equivalents beginning of period Cash and cash equivalents end of period Other Liquidity Metrics: Availability under Credit Facility Net Debt to Adjusted EBITDAR Ensign Group | Investor Presentation 2023 Year Ended December 31, 2022 376.7 272.5 (182.7) (186.2) (0.6) (32.3) 193.4 54.1 316.3 262.2 $509.6 $316.3 $593.7 $593.3 1.98x 1.98x 25 25#26Guidance 2024 Annual Revenue $4.13B to $4.17B Diluted Adjusted EPS $5.29 to $5.47 Midpoint is: 13% over 2023 30% over 2022 26#27Entrepreneurial Evolution Of Ensign The Ensign Group was founded Established New Market CEO program Ensign completes an IPO in November 2007 Ensign entered into the home health industry Senior living portfolio company was formed in June 2011 Completed the spin-off of its real estate business, CareTrust REIT Completed spin- off of home health & hospice as well as senior living segments, forming The Pennant Group Continues to execute on local leadership model to grow through the pandemic Ensign formed a Captive REIT, Standard Bearer Healthcare REIT, Inc. Ensign completed 52 acquisitions since 2022, entering its next phase of growth. 1999 2006 2007 2010 2011 2014 2019 2021 2022 2023 Strong Expansion Since Its Founding in 1999 38 40 43 53 57 59 72 77 93 93 98 88 7 13 19 23 297 299 271 245 223 228 187 194 175 150 121 107 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Jan 2024 Healthcare Facilities Operated 27#28Fundamentals Remain Favorable for Strong Organic Growth Key Drivers of Organic Growth Aging Population Population over 65 projected to nearly double by 2060 (20) Shift to Value- based Care Shift to value-based care, will continue to benefit low cost, high quality settings (e.g. SNF) Over the last 10 years the CMS Reimbursement reimbursement rates in the SNF Environment industry have increased at a steady rate of 1.0% - 4.0% Estimated Population Over 65 100,000 80,000 60,000 Market fragmentation creates significant consolidation opportunity Other, 91.7% 40,000 2016 2020 2025 2030 2035 2040 2045 2050 2055 2060 Favorable Backdrop for Growth in the Skilled Services Industry Genesis 1.7% Ensign 1.7% Life Centers of America 1.3% Providence Group 1.0% Simcha Hyman & Naftali Zanziper 0.9% Trilogy Health Services 0.8% Saber Healthcare Group 0.8% 28 Refer to pages 53-54 for end notes.#29Largest Beneficiary Of Medicare Post-Acute Dollars While Medicare Spending Continues to Increase (in Billions) 2,500 2,000 1,500 1,000 500 Medicare Spending Projection (22) Post-Acute Destinations - % of Medicare Dollars (23) 6% 7% 14% +Other + LTAC 30% 0 2015 2017 2019 2021 2023 2025 2027 2029 2031 +IRF + Home Health +Skilled Nursing 43% Ensign Group | Investor Presentation 29 29 Refer to pages 53-54 for end notes.#30Medicare Advantage Growth Projection (24) Medicare Advantage Enrollment as Percentage of Medicare Enrollment Projection (in Thousands) 90,000 80,000 49% 50% 51% 52% 53% 53% 54% 55% 55% 56% 60% 46% 43% 70,000 50% 60,000 28% 30% 31% 32% 34% 36% 37%40% 40% 50,000 40,000 30% 30,000 20% 20,000 10% 10,000 0 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Medicare Enrollment (in Billions) Medicare Advantage Enrollment MA Enrollment % of Medicare Enrollment Medicare Payment to Medicare Advantage Projection 1,000 1,046 966 890 800 820 748 680 600 616 558 506 460 400 200 146 160 172 189 210 233 317 350 274 403 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 30 30 2032#31Standard Bearer Portfolio Diversification Diversification by Property Type (17) (25) CAMPUS 18% Diversification by State (17) OTHER 8% ID AZ 17% 4% UT 6% SC 5% KS 6% ALF 19% SNF Ensign Group | Investor Presentation 63% CA 15% TX 25% WI 14% 31 Refer to pages 53 - 54 for end notes. Source: Data as of 2/1/2024.#32$1,000 $900 $800 Standard Bearer Continuation & Expansion of Real Estate Success Cumulative Investments Over Time (26) Cumulative Real Estate Investments (in millions) $700 $600 $500 $400 $300 $200 $100 $. Pre-2015 $137 $79 $422 $358 $302 14,000 $921 $903 $832 $838 $845 12,000 $722 10,000 $624 $583 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 8,000 Total No. of SNF Beds /ALF Units 6,000 4,000 2,000 32 Refer to pages 53 - 54 for end notes. Source: Data as of Q4'23.#33Standard Bearer Strong Long Term Leases 15.1 years Weighted Average Lease Tenor (27) 98% of leases expire after 2031 Annualized Rent Revenue Expirations by Year Tenant Rent Coverage Summary 12 10 8 6420 18 16 14 12.1 10.6 10.5 10.7 8 6 16.8 13.8 Q4 Q1 Q2 2022 2023 2023 Q3 Q4 2023 2023 st 0.8 0.8 0.0 0 2.3 0.7 Ï. 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2053 2056 Ensign Affiliated 2.41 2.70 2.57 2.42 2.31 4.7 Third-Party 1.38 1.60 1.40 1.57 1.58 1.1 Total 2.23 2.50 2.37 2.27 2.19 Ensign Group | Investor Presentation 33 Refer to pages 53-54 for end notes. Source: Tenant Rent Coverage Summary is as of Q4'23. All other data is as of 2/1/2024.#34High-Quality Portfolio Of Assets Ensign's real estate portfolio includes attractive assets in appealing markets that provide the foundation for patient care and well-being. Villa Maria Post Acute Arizona VILLA MARIA Facilities are purpose-built or customized to accommodate specialty needs Fountain Hills Post Acute Arizona Lila Doyle Post Acute South Carolina Assets include a mix of state-of- the-art and hands-on therapeutic approaches to provide specific care plans for each individual Facilities offer a wide variety of services that provide all the benefits of being at home. 34#35Ensign Management Team. Christopher Christensen Executive Chairman 24 Years Former Ensign roles: CEO, President and Director. Prior to joining Ensign: Acting Chief Operating Officer of Covenant Care, Inc. Barry Port Chief Executive Officer and Director 19 Years Former Ensign roles: COO, President of Keystone Care and CEO of Bella Vita Health and Rehabilitation Center (Ensign Affiliate). Prior to joining Ensign: Leader of Strategic Sourcing Initiatives for Sprint Corporation. Suzanne Snapper Chief Financial Officer, EVP and Director 17 Years Former Ensign roles: Vice President of Finance. Prior to joining Ensign: Senior Manager at KPMG LLP. Chad Keetch Chief Investment Officer, EVP and Secretary 13 Years Former Ensign roles: Executive Vice President and Secretary, Vice President of Acquisitions and Business Legal Affairs and Assistant Secretary. Prior to joining Ensign: Attorney at Kirkland & Ellis LLP. Spencer Burton President, Chief Operating Officer 17 Years Former Ensign roles: President of Pennant Healthcare, CEO of Pacific Care and Rehabilitation (Ensign-affiliate). Prior to joining Ensign: Utah State Legislature. 35#36Appendix www.ensigngroup.net#37Skilled Services Segment $ in thousands Statements of Income Data: Segment income Depreciation and amortization EBITDA Adjustments to EBITDA: (28) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 $116,756 $106,460 $464,925 $408,732 10,349 8,813 38,766 33,224 $127,105 $115,273 $503,691 $441,956 Business interruption recoveries (913) (1,009) (913) Stock-based compensation expense 5,164 3,823 19,904 14,394 Litigation 4,600 4,600 Adjusted EBITDA $136,869 $118,183 $527,186 $455,437 Ensign Group | Investor Presentation 37 Refer to pages 53 - 54 for end notes.#38Standard Bearer Segment Three Months Ended $ in thousands December 31, Year Ended December 31, 2023 2022 2023 2022 Rental revenue generated from third-party tenants $4,198 $3,790 $15,774 $14,970 Rental revenue generated from Ensign independent subsidiaries 17,677 15,624 66,712 57,967 Total rental revenue $21,875 $19,414 $82,486 $72,937 Segment income (19) 7,548 7,192 29,065 27,871 Depreciation and amortization 6,677 5,815 25,205 21,613 (18) FFO $14,225 $13,007 $54,270 $49,484 Ensign Group | Investor Presentation 38 Refer to pages 53 - 54 for end notes.#39Reconciliation of GAAP to Non-GAAP Income $ in thousands Net income attributable to The Ensign Group, Inc. Non-GAAP adjustments Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 $21,691 $60,471 $209,399 $224,681 (29) Stock-based compensation expense 8,076 6,039 30,767 22,720 (30) Litigation 58,816 68 60,781 4,280 Cost of services - gain on business interruptions recoveries and sale of assets (31) (123) (913) (1,132) (4,380) Cost of services - acquisition related costs 92 253 814 669 Interest expense - write off deferred financing fees (32) 566 Depreciation and amortization – patient base (33) - 173 107 355 320 Provision for income taxes on Non-GAAP adjustments General and administrative - costs incurred related to new systems implementation (34) 88 682 963 1,072 (15,142) (3,990) (28,416) (14,215) Non-GAAP net income $73,671 $62,717 $273,531 $235,713 Average number of shares outstanding 57,555 56,973 57,323 56,871 Diluted Earnings Per Share Adjusted Diluted Earnings Per Share $0.38 $1.06 $3.65 $3.95 $1.28 $1.10 $4.77 $4.14 39 Refer to pages 53-54 for end notes.#40Reconciliation of GAAP to Non-GAAP Financial Measures $ in thousands Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Income before provision for income taxes $31,282 $77,451 $272,762 $289,089 Stock-based compensation 8,076 6,039 30,767 22,720 (35) Litigation 58,816 68 60,781 4,553 Gain on business interruptions recoveries and sale of assets (123) (913) (1,132) (4,380) Write-off of deferred financing fees (32) 566 Acquisition related costs (31) 92 253 814 669 Costs incurred related to new systems implementation 88 682 963 1,072 (33) Depreciation and amortization - patient base 173 107 355 320 Adjusted EBT $98,404 $83,687 $365,310 $314,609 Ensign Group | Investor Presentation 40 Refer to pages 53 - 54 for end notes.#41Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended December 31, Year Ended December 31, $ in thousands 2023 2022 2023 2022 Net income $21,823 $60,519 $209,850 $224,652 Less: net income (loss) attributable to noncontrolling interests 132 48 451 (29) Add: Other (income) expense, net Provision for income taxes Depreciation and amortization EBITDA Adjustments to EBITDA: (8,456) (2,255) (17,395) 7,736 9,459 16,932 62,912 64,437 19,233 16,880 72,387 62,355 $41,927 $92,028 $327,303 $359,209 Stock-based compensation expense 8,076 6,039 30,767 22,720 (30) Litigation 58,816 68 60,781 4,280 Acquisition related costs Gain on business interruptions recoveries and sale of assets (31) (123) (913) (1,132) (4,380) 92 253 814 669 Costs incurred related to new systems implementation 88 682 Adjusted EBITDA $108,876 $98,157 963 $419,496 1,072 $383,570 Rent-cost of services 50,604 41,152 Adjusted EBITDAR Ensign Group | Investor Presentation $159,480 197,358 $616,854 153,049 41 Refer to pages 53-54 for end notes.#42Reconciliation From Segment Income to Income Before Provisions For Income Taxes QTD Q4 2023 $ in thousands Skilled Services Standard Bearer All Other Eliminations Consolidated Total Revenue $940,765 $21,875 $41,230 ($23,492) $980,378 (36) Cost of services 750,905 517 33,067 (3,208) 781,281 (37) Internal rent expense 16,136 2,380 (18,516) External rent expense 46,619 245 3,740 50,604 Depreciation and amortization 10,349 6,677 2,207 19,233 General and administrative expenses (36) (37) (38) 1,410 106,915 (1,768) 106,557 (36) Other expense (income), net 5,478 (13,934) (8,456) Total expenses Segment income 824,009 14,327 134,375 (23,492) 949,219 116,756 7,548 (93,145) 31,159 Gain on sale of assets from real estate Income before provision for income tax 123 31,282 Ensign Group | Investor Presentation 42 Refer to pages 53-54 for end notes.#43Reconciliation From Segment Income to Income Before Provisions For Income Taxes YTD 2023 $ in thousands Skilled Services Standard Bearer All Other Eliminations Consolidated Total Revenue $3,578,855 $82,486 $155,804 ($87,790) $3,729,355 (39) Cost of services 2,832,012 2,104 118,196 (11,051) 2,941,261 Internal rent expense (40) 61,553 8,441 (69,994) External rent expense 181,599 954 14,805 197,358 Depreciation and amortization 38,766 25,205 8,416 72,387 General and administrative expenses (38) (39) (40) 5,397 264,353 (6,745) 263,005 (39) Other expense (income), net 19,761 (37,156) (17,395) Total expenses 3,113,930 53,421 377,055 (87,790) 3,456,616 Segment income 464,925 29,065 (221,251) 272,739 Gain on sale of assets and insurance recoveries from real estate, net 23 Income before provision for income tax 272,762 Ensign Group | Investor Presentation 3 43 Refer to pages 53 - 54 for end notes.#44Reconciliation From Segment Income to GAAP EBITDA and Non-GAAP EBITDA QTD Q4 2023 $ in thousands Segment Income Skilled Services Standard Bearer All Other Eliminations Consolidated $116,756 $7,548 ($93,145) $31,159 Other expense (income), net 5,478 (13,934) (8,456) Depreciation and amortization 10,349 6,677 2,207 19,233 Less: Net income attributable to non-controlling interests 132 132 Segment GAAP EBITDA 127,105 19,703 (105,004) 41,804 Gain on sale of assets from real estate 123 41,927 Consolidated GAAP EBITDA Non-GAAP Adjustments Stock based compensation Litigation 5,164 4,600 2,912 8,076 54,216 58,816 Gain on sale of assets (123) (123) Acquisition related costs 92 92 Other Non-GAAP adjustments 88 88 Segment Non-GAAP EBITDA 136,869 19,703 (47,819) 108,753 Gain on sale of assets from real estate 123 Consolidated Non-GAAP EBITDA 108,876 Internal Rent Expense 16,136 2,380 (18,516) External Rent Expense 46,619 245 3,740 50,604 Total Non-GAAP Rent Expense 62,755 245 6,120 (18,516) 50,604 44 Consolidated Non-GAAP EBITDAR 199,624 19,948 $159,480#45Reconciliation From Segment Income to GAAP EBITDA and Non-GAAP EBITDA YTD 2023 $ in thousands Segment Income Other expense (income), net Depreciation and amortization Skilled Services Standard Bearer All Other Eliminations Consolidated $464,925 $29,065 ($221,251) 19,761 (37,156) 38,766 25,205 8,416 $272,739 (17,395) 72,387 Less: Net income attributable to non-controlling interests Segment GAAP EBITDA 503,691 74,031 451 (250,442) Gain on sale of assets and insurance recoveries from real estate, net 451 327,280 23 Consolidated GAAP EBITDA 327,303 Non-GAAP Adjustments Stock based compensation Litigation 19,904 4,600 10,863 30,767 56,181 60,781 Gain on business interruption recoveries and sale of assets Acquisition related costs (1,009) (123) (1,132) 814 814 Other Non-GAAP adjustments 963 963 Segment Non-GAAP EBITDA 527,186 74,031 (181,744) 419,473 Gain on sale of assets and insurance recoveries from real estate, net 23 Consolidated Non-GAAP EBITDA 419,496 Internal Rent Expense 61,553 8,441 (69,994) External Rent Expense 181,599 954 14,805 197,358 Total Non-GAAP Rent Expense 243,152 954 23,246 (69,994) 197,358 Consolidated Non-GAAP EBITDAR 770,338 74,985 $616,854 45#46Reconciliation of Deferred Compensation Plan Impact 5 Quarter Trend $ in thousands Non-GAAP other income (expense): Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Interest expense ($2,004) ($2,024) ($2,023) ($2,036) ($2,067) Interest income 6,891 5,701 3,952 4,304 2,860 Deferred compensation plan (DCP) investments gain (loss) 3,569 (1,424) 1,250 1,239 1,462 Other income (expense) 10,460 4,277 5,202 5,543 4,322 Total Non-GAAP other income (expense) 8,456 2,253 3,179 3,507 2,255 Non-GAAP Revenue 980,378 940,791 921,345 886,841 809,532 Non-GAAP cost of services 771,238 736,125 718,388 691,712 630,387 Less: DCP gain (loss) related to cost of services 1,813 (676) 666 640 985 Non-GAAP cost of services without DCP 769,425 736,801 717,722 691,072 629,402 Non-GAAP cost of services as a percentage of revenue 78.7% 78.2% 78.0% 78.0% 77.9% Non-GAAP cost of services as a percentage of revenue without DCP 78.5% 78.3% 77.9% 77.9% 77.7% Non-GAAP general and administrative expense with DCP 49,528 46,160 50,309 48,590 39,788 Less: DCP gain (loss) related to general and administrative expense 1,813 (676) 666 640 530 Non-GAAP general and administrative expense without DCP 47,715 46,836 49,643 47,950 39,258 Non-GAAP general and administrative expense as a percentage of revenue 5.1% 4.9% 5.5% 5.5% 4.9% Non-GAAP general and administrative expense as a percentage of revenue without DCP 4.9% 5.0% 5.4% 5.4% 4.8% Non-GAAP EBITDA percentage of revenue Non-GAAP EBITDA percentage of revenue without DCP Non-GAAP EBITDAR percentage of revenue Non-GAAP EBITDAR percentage of revenue without DCP 11.1% 11.5% 11.2% 11.3% 12.1% 11.5% 11.3% 11.3% 11.4% 12.3% 46 16.3% 16.8% 16.6% 16.5% 17.2% 16.6% 16.7% 16.7% 16.7% 17.4%#47Reconciliation of Deferred Compensation Plan Year Ended December 31, 2023 2022 $ in thousands Non-GAAP other income (expense): Interest expense Interest income Deferred compensation plan (DCP) investments gain (loss) Other income (expense) Total Non-GAAP other income (expense) Non-GAAP Revenue Non-GAAP cost of services Less: DCP gain (loss) related to cost of services Non-GAAP cost of services without DCP Non-GAAP cost of services as a percentage of revenue Non-GAAP cost of services as a percentage of revenue without DCP Non-GAAP general and administrative expense with DCP Less: DCP gain (loss) related to general and administrative expense ($8,087) ($8,365) 20,848 5,383 4,634 (4,188) 25,482 1,195 17,395 (7,170) 3,729,355 3,025,468 2,917,463 2,339,194 2,443 (2,633) 2,915,020 2,341,827 78.2% 78.2% 77.3% 77.4% 194,587 149,411 2,443 (1,418) Non-GAAP general and administrative expense without DCP 192,144 150,829 Non-GAAP general and administrative expense as a percentage of revenue 5.2% 4.9% Non-GAAP general and administrative expense as a percentage of revenue without DCP 5.2% 5.0% Non-GAAP EBITDA percentage of revenue Non-GAAP EBITDA percentage of revenue without DCP Non-GAAP EBITDAR percentage of revenue Non-GAAP EBITDAR percentage of revenue without DCP 11.2% 12.7% 11.4% 12.5% 16.5% 17.7% 16.7% 17.6% 47 17#48Property Locations Property Name State Property Type # of Operating Beds / Units Tenant Alta Mesa Health and Rehabilitation and The Groves Assisted and Independent Senior Living Community AZ Campus 176 Arrowhead Springs Healthcare CA SNF 99 Ensign Ensign Avamere Rehabiliation at Ridgemont and The Villas at Ridgemont WA Campus 142 Avamere Bainbridge Island Health and Rehabilitation Center WA SNF 58 Ensign Belmont Terrace WA SNF 95 Ensign Bennett Hills Rehabilitation and Care Center ID SNF 60 Ensign Brenwood Park Assisted Living WI Senior Living 46 Pennant Broadway Villa Post Acute CA SNF 138 Ensign Brookside Healthcare Center CA SNF 97 Ensign California Mission Inn CA Senior Living 151 Pennant Casas Adobes Post Acute Rehabilitation Center AZ SNF 224 Ensign Cedar Health and Rehabilitation UT SNF 120 Ensign Cedar Hills Senior Living TX Senior Living 37 Pennant Champions Healthcare at Willowbrook TX Campus 192 Ensign Compass Post Acute Rehabilitation SC SNF 95 Ensign Cottonwood Manor Assisted Living WI Senior Living 30 Pennant Cranberry Court Assisted Living WI Senior Living 40 Pennant Creekside Transitional Care and Rehabilitation ID SNF 139 Ensign Deer Creek Senior Living TX Senior Living 37 Pennant Desert Blossom Health and Rehabilitation Center AZ SNF 98 Ensign East View Healthcare TX SNF 125 Ensign Fountain Hills Post Acute AZ SNF 64 Ensign Ensign Group | Investor Presentation 48 48#49Property Locations Property Name Golden Palms Rehabilitation and Retirement Greentree Health and Rehabilitation Center Harbor View Assisted Living Harrison Pointe Healthcare and Rehabilitation Heritage Park Healthcare and Rehabilitation Horizon Post Acute and Rehabilitation Center State Property Type # of Operating Beds / Units Tenant TX Campus 197 Ensign WI SNF 50 Ensign WI Senior Living 39 Pennant UT SNF 63 Ensign UT SNF 122 Ensign AZ SNF 179 Ensign Hunters Pond Rehabilitation and Healthcare Keller Oaks Healthcare Center TX SNF 128 Ensign TX SNF 146 Ensign Kenosha Senior Living WI Senior Living 37 Pennant Kirkwood Manor TX SNF 162 Ensign Lake Pointe Villa Assisted Living WI Senior Living 19 Pennant Lila Doyle Post Acute SC SNF 120 Ensign Legend Healthcare and Rehabilitation - Paris TX SNF 120 Ensign Lo-Har Senior Living CA Senior Living 29 Pennant Madison Pointe Senior Living WI Senior Living 39 Pennant Magnolia Post Acute Care CA SNF 99 Ensign Maple Meadows Assisted Living McFarland Villa Assisted Living Meadow View Assisted Living WI Senior Living 19 Pennant McCall Rehabilitation and Care Center ID SNF 40 Ensign WI Senior Living 35 Pennant WI Senior Living 24 Pennant Meadow View Nursing and Rehabilitation Meadowcreek Senior Living ID SNF 112 Ensign TX Senior Living 37 Pennant Ensign Group | Investor Presentation 49 49#50Property Locations Property Name Medallion Post Acute Rehabilitation Medallion Villas Mesa Springs Healthcare Center Millennium Post Acute Rehabilitation Mission Care Center Mission Palms Post Acute Mountain Terrace Senior Living Mt. Ogden Health and Rehabilitation Center North Point Senior Living State Property Type # of Operating Beds / Units Tenant CO CO 88 TX SNF Senior Living 60 Ensign 100 Ensign Campus 138 Joint (Ensign/Pennant) SC SNF 132 Ensign CA SNF 58 Ensign AZ SNF 160 Ensign WI Senior Living 70 Pennant UT SNF 108 Ensign WI Senior Living 19 Pennant Olive Ridge Senior Living AZ Senior Living 73 Ensign Olympia Transitional Care and Rehabilitation WA SNF 135 Ensign Opus Post Acute Rehabilitation SC SNF 98 Ensign Panorama Gardens Nursing and Rehabilitation Center CA SNF 145 Ensign Paris Chalet Senior Living TX Senior Living 37 Pennant Park Manor of McKinney TX SNF 138 Ensign Parklane West Healthcare Center TX SNF 124 Ensign Parkside Senior Living WI Senior Living 20 Pennant Pecan Valley Rehabilitation and Healthcare Peoria Post Acute and Rehabilitation Phoenix Mountain Post Acute Pleasant Point Senior Living Premier Care Center of Palm Springs TX SNF 124 Ensign AZ SNF 179 Ensign AZ SNF 130 Ensign WI Senior Living 74 Pennant CA SNF 99 Ensign Ensign Group | Investor Presentation 50#51Property Locations Property Name Pueblo Springs Rehabilitation Center Puget Sound Transitional Care State Property Type # of Operating Beds / Units Tenant AZ SNF 115 Ensign WA SNF 125 Ensign Rehabilitation and Nursing Center of the Rockies CO SNF 96 Ensign Rio Vista Post Acute and Rehabilitiation Riverbend Post Acute Rehabilitation Riverview Village Senior Living Riverwalk Post Acute and Rehabilitation Rock Canyon Respiratory & Rehabilitation Center Rock Creek of Ottawa Rock Hill Post Acute Care Center Rockbrook Assisted Living and Memory Care AZ SNF 150 Ensign KS Campus 124 Ensign WI Senior Living 44 Pennant CO SNF 60 Ensign CO SNF 81 Ensign KS Campus 146 Ensign SC SNF 99 Ensign TX Senior Living 52 Pennant Scandinavian Court Assisted Living WI Senior Living 19 Pennant Sea Cliff Healthcare Center and Assisted Living CA Campus 224 Ensign Sherwood Village Assisted Living and Memory Care AZ Senior Living 151 Pennant Somerset Subacute and Care CA SNF 47 Ensign St. George Rehabilitation UT SNF 99 Ensign Stoughton Meadows Senior Living WI Senior Living 39 Pennant Surprise Health and Rehabilitation Center AZ SNF 100 Ensign Tempe Post Acute and Desert Marigold Senior Living of Tempe AZ Campus 197 Ensign Temple View Transitional Care Center ID SNF 119 Ensign The Eden of Las Colinas TX SNF 118 Ensign The Healthcare Center at Patriot Heights TX Campus 232 Ensign Ensign Group | Investor Presentation 51#52Property Locations Property Name The Healthcare Resort of Leawood State Property Type # of Operating Beds / Units Tenant KS Campus 94 Ensign The Healthcare Resort of Topeka KS Campus 94 Ensign The Medical Lodge of Amarillo TX SNF 82 Ensign The Mildred & Shirley L. Garrison Geriatric Education and Care Center TX SNF 116 Ensign The Orchard Post Acute Care CA SNF 162 Ensign The Pines Post Acute and Memory Care WI SNF 50 Ensign The Shores of Sheboygan Assisted Living WI Senior Living 66 Pennant The Springs at Pacific Regent The Terrace at Mt. Ogden CA SNF 59 Ensign UT SNF 114 Ensign The Villages of Dallas TX Campus 304 Ensign The Villas at Rock Canyon CO Senior Living 20 Ensign The Waterton Healthcare and Rehab TX SNF 74 Ensign Treasure Hills Healthcare and Rehabilitation Center TX SNF 110 Ensign Villa Court Assisted Living and Memory Care NV Senior Living 74 Pennant Villa Maria Post Acute and Rehabilitation Village Healthcare and Rehabilitation Westover Hills Rehabilitation and Healthcare Wide Horizons Intermediate Care Facility Willow Brooke Point Senior Living Windsor Rehabilitation and Healthcare AZ Campus 85 Ensign TX SNF 112 Ensign TX SNF 124 Ensign UT SNF 35 Ensign M WI Senior Living 82 Pennant TX SNF 108 Ensign Ensign Group | Investor Presentation 52 42#53End Notes www.ensigngroup.net#54End Notes (1) Adjusted EBITDAR is a non-GAAP measure and represents net income before (a) interest expense, net, (b) provision for income taxes, (c) depreciation and amortization, (d) rent-cost of services, (e) stock- based compensation expense, (f) acquisition related costs, (g) costs incurred related to new systems implementation, (h) litigation, and (i) gain on business interruption recoveries and sale of assets. See Appendix for a reconciliation of GAAP to non-GAAP financial measures. 2019 Adjusted EBITDAR includes 9 months of Pennant financial results. [Slide 11] (2) Starting in 2022, CMS included new measurements which impacted our overall star rating and resulted in a decrease in our 4 and 5 star locations. [Slide 11] (3) Subsidiaries of Ensign and Pennant may opt into a voluntary joint post-acute care preferred provider network called the Ensign Pennant Care Continuum ("the EPCC"). [Slide 13] (4) Acquisition track record based on an average for all SNF acquisitions from January 1, 2001 to September 30, 2022 measuring 5 quarters of operating performance. [Slide 14] (5) 12.2% represents average EBITDAR margin for the 1st quarter after acquisition for acquisitions made through September 30, 2022. [Slide 14] (6) At the end of Q4'23, there were 286 skilled nursing facilities in operation. [Slide 15, 16] (7) Same Store represents all skilled nursing operations purchased prior to January 1, 2020 totaling 213 facilities. [Slide 15, 16] (8) Transitioning represents all skilled nursing operations purchased from January 1, 2020 to December 31, 2021 totaling 23 facilities. [Slide 15, 16] (9) Recently Acquired represents all skilled nursing operations purchased on or subsequent to January 1, 2022 totaling 50 facilities. [Slide 15, 16] (10) Recently Acquired includes the operations in states which, on average, have a higher reimbursement rate than our average operation. [Slide 15, 16] (11) Revenue and adjusted EBITDAR not pro forma for spin. [Slide 17] (12) Represents average of peer growth from 2014-2022 annualized, except for peers that were not in existence for the entire time period, in which case the longest time period available was used. Peers grouped by subsector include: Acute Care: HCA, CYH, THC, and UHS; Behavioral: ACHC; ASC: SGRY; Dialysis: FMS and DVA; Home Health and Hospice: AMED, ADUS and CHE; Institutional: BKD and EHC; Rehab: SEM and USPH. [Slide 17] (13) Represents 2014 - 2022 average of AMED, ADUS, CHE, BKD, EHC and SEM. [Slide 17] (14) 2019 only includes 9 months Pennant financial data as a result of its 10/1/2019 spin-off. [Slide 17] (15) Of the 30 owned real estate 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. [Slide 20] (16) Reflects midpoint of the most recent third-party valuation. [Slide 23] (17) Based on percentage of annualized rent for assets as of February 1, 2024. [Slide 23, 31] (18) FFO, in accordance with the definition used by the National Association of Real Estate Investment Trusts, means net income attributable to common stockholders, computed in accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate and impairment of depreciable real estate assets, while including depreciation and amortization related to real estate earnings. [Slide 24, 38] (19) Segment income reflects profit or loss from operations before provision for income taxes, gain or loss from sale of real estate and insurance recoveries from real estate. Included in Standard Bearer segment income for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022 are management fees of $1.3M, $1.3M, $1.2M, $1.2M, and $1.2M, respectively, and interest expense of $3.8M, $3.4M, $2.9M, $2.8M, and $2.6M, respectively, associated with the intercompany agreements between Standard Bearer and The Ensign Group, Inc., including the Service Center. [Slide 24, 38] (20) Source: US Census, CDC (NCHS), CMS and Population Reference Bureau. From 49MM in 2016 to 95MM in 2060. [Slide 28] 54 54#55End Notes 21) Source from CMS. Based on total number of facilities. [Slide 28] 22) Source: 2023 Medicare Trustees Report. [Slide 29] 23) Source: Medpac and US HHS Department as of March 2020. [Slide 29] 24) Source: Stephens New Medicare Trustees Report April 3, 2023. [Slide 30] 25) The number of SNF beds and ALF units for SNF, ALF and Campus are 6,796, 1,708 and 2,198, respectively. The valuations for SNF, ALF and Campus are $720 million, $238 million and $159 million, respectively. [Slide 31] 26) Cumulative investments over time include initial investment and capital expenditures. [Slide 32] 27) Leases have two or three extension options of five years. [Slide 33] 28) Segment income reflects profit or loss from operations before provision for income taxes and impairment charges from operations. General and administrative expenses are not allocated to the skilled services segment for purposes of determining segment profit or loss. [Slide 37] 29) Represents stock-based compensation expense incurred. [Slide 39] 30) Litigation relates to specific proceedings arising outside of the ordinary course of business, which excludes the portion attributable to non-controlling interests. [Slide 39, 41] 31) Represents costs incurred to acquire operations that are not capitalizable. [Slide 39, 40, 41] 32) Represents the write-off of deferred financing fees associated with the amendment of the credit facility. [Slide 39, 40] 33) Included in depreciation and amortization are expenses related to patient base intangible assets at newly acquired skilled nursing and senior living facilities. [Slide 39, 40] 34) Represents an adjustment to the provision for income tax to our historical year to date effective tax rate of 25.0%. [Slide 39] 35) Litigation relates to specific proceedings arising outside of the ordinary course of business, which includes the portion attributable to non-controlling interests. [Slide 40] 36) Included in other expense (income) for three months ended, net is a gain on investment held in our deferred compensation plan of $3.6 million. There is an offsetting expense allocated between cost of services and general and administrative expenses of $1.8 million and $1.8 million, respectively. [Slide 42] 37) Included in general and administrative expenses is internal rent expense for the Service Center of $0.5 million and management fee of $1.3 million. This amount is eliminated in the eliminations column. [Slide 42] 38) Included in general and administrative expenses is $48.0M of litigation. Litigation relates to specific proceedings arising outside of the ordinary course of business. [Slide 42, 43] 39) Included in other expense (income) for year ended, net is a gain on investment held in our deferred compensation plan of $4.6 million. There is an offsetting expense allocated between cost of services and general and administrative expenses of $2.4 million and $2.4 million, respectively. [Slide 43] 40) Included in general and administrative expenses is internal rent expense for the Service Center of $1.8 million and management fee of $4.9 million. This amount is eliminated in the eliminations column. [Slide 43] 55 55#56THANK YOU ENSIGN GROUP