The Ensign Group Inc.

The Ensign Group Inc. acquisition of Managed Care at Home by its home health and hospice subsidiary — Cornerstone Healthcare. Milpitas, CA-based Managed Care at Home is a Medicare and Medi-Cal certified home health agency that serves the San Jose area. The Ensign Group, through its operating subsidiaries, offers skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care services. As of Mar 31, 2015, the company operated 143 facilities, 13 home health and 12 hospice operations, two home care businesses, one transitional care management company, 16 urgent care centers and a mobile x-ray and diagnostic company. The recent acquisition expands Cornerstone’s number of offerings to 10 home health and hospice operations, four home health only operations, two hospice only operations, and three private duty homecare operations. The addition will help the company serve the nine western states effectively. The company also expects the buyout to prove accretive to earnings in 2015. Acquisitions have been a key growth catalyst for The Ensign Group for years. Over the last two years, the company has taken over 29 facilities across eight states. Transitional, skilled and assisted living revenues generated by these facilities increased by approximately $57.5 million to almost $90 million in 2014. Year to date, the company has acquired 18 new operations. As of May 1, 2015, The Ensign Group had 32 operations in its recently-acquired portfolio, which marks the highest number in its history. Meanwhile, we believe that the company will continue to pursue acquisitions that will expand its customer base and market share going forward.