Investor Presentaiton
End 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) legal costs and adjustments, 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 2001 to June 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 from 2001 to June 30, 2022. [Slide 14]
(6) At the end of Q3'23, there were 284 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 48 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 2014-2021 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 and CIVI; 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 - 2021 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 November 1, 2023. [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 September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022 are management fees of $1.3M, $1.2M, $1.2M, $1.2M, and $1.1M,
respectively, and interest expense of $3.4M, $2.9M, $2.8M, $2.6M, and $2.3M, 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]
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