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Investor Presentaiton

Reconciliation 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.
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