The Ensign Group, Inc. (NASDAQ:ENSG) Files An 8-K Results of Operations and Financial Condition

On May 1, 2017, The Ensign Group, Inc. (the Company) issued a press
release reporting the financial results of the Company for its
first quarter ended March 31, 2017. A copy of the press release is
attached to this Current Report as Exhibit 99.1.

The press release includes non-GAAP financial measures.
Specifically, the press release refers to EBITDA, EBITDAR, Adjusted
EBITDA and Adjusted EBITDAR. EBITDA, EBITDAR, Adjusted EBITDA and
Adjusted EBITDAR are supplemental non-GAAP financial measures.
Regulation G, Conditions for Use of Non-GAAP Financial Measures,
and other provisions of the Securities Exchange Act of 1934, as
amended, define and prescribe the conditions for use of certain
non-GAAP financial information. EBITDA consists of net income
before (a) interest expense, net, (b) provisions for income taxes
and (c) depreciation and amortization. EBITDAR consists of net
income before (a) interest expense, net, (b) provisions for income
taxes, (c) depreciation and amortization and (d) rent-cost of
services. Adjusted EBITDA consists of net income before (a)
interest expense, net, (b) provisions for income taxes, (c)
depreciation and amortization, (d) costs incurred for operations
currently being constructed and other start-up operations,
excluding depreciation, interest and income taxes, (e) results of
closed operations and operations not at full capacity, excluding
depreciation, interest and income taxes, (f) share-based
compensation expense, (g) costs incurred related to new systems
implementation, (h) professional service fees include costs
incurred to recognize income tax credits which contributed to a
decrease in effective tax rate, (i) costs incurred to acquire
operations which are not capitalized, (j) legal and charges related
to the settlement of class action lawsuit and (k)operating results
at urgent care centers, excluding depreciation, interest and income
taxes. Adjusted EBITDAR consists of net income before (a) interest
expense, net, (b) provisions for income taxes, (c) depreciation and
amortization, (d) rent-cost of services, (e) costs incurred for
facilities currently being constructed and other start-up
operations, excluding rent, depreciation, interest and income
taxes, (f) results of closed operations and operations not at full
capacity, excluding rent, depreciation, interest and income taxes,
(g) share-based compensation expense, (h) costs incurred related to
new systems implementation, (i) professional service fees include
costs incurred to recognize income tax credits which contributed to
a decrease in effective tax rate, (j) costs incurred to acquire
operations which are not capitalized, (k) legal and charges related
to the settlement of class action lawsuit and (l) operating results
at urgent care centers, excluding depreciation, interest and income
taxes. The company believes that the presentation of EBITDA,
EBITDAR, adjusted EBITDA, adjusted EBITDAR, adjusted net income and
adjusted earnings per share provides important supplemental
information to management and investors to evaluate the companys
operating performance. The company believes disclosure of adjusted
net income per share, EBITDA, EBITDAR, adjusted EBITDA and adjusted
EBITDAR has economic substance because the excluded revenues and
expenses are infrequent in nature and are variable in nature, or do
not represent current revenues or cash expenditures. A material
limitation associated with the use of these measures as compared to
the GAAP measures of net income and diluted earnings per share is
that they may not be comparable with the calculation of net income
and diluted earnings per share for other companies in the
company’s industry. These non-GAAP financial measures should not
be relied upon to the exclusion of GAAP financial measures. For
further information regarding why the company believes that this
non-GAAP measure provides useful information to investors, the
specific manner in which management uses this measure, and some of
the limitations associated with the use of this measure, please
refer to the company’s periodic filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K and
Quarterly Report on Form 10-Q. The companys periodic filings are
available on the SEC’s website at www.sec.gov or under the
“Financial Information” link of the Investor Relations section on
Ensign’s website at http://www.ensigngroup.net.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.