Profile: The Ensign Group, Inc. (ENSG.O)

The Ensign Group, Inc. (Ensign), incorporated in 1999, is a provider of nursing and rehabilitative care services through the operation of facilities located in California, Arizona, Texas, Washington, Utah and Idaho. During the year ended December 31, 2008, the Company owned or leased 63 facilities. Its facilities provide a spectrum of skilled nursing, physical, occupational and speech therapies, and other rehabilitative and healthcare services and, in certain facilities, assisted living services, for both long-term residents and short-stay rehabilitation patients. The facilities have a collective capacity of over 7,600 skilled nursing, assisted living and independent living beds. As of December 31, 2008, Ensign owned 32 of its facilities and operated an additional 31 facilities under long-term lease arrangements, and had purchase agreements or options to purchase nine of those 31 facilities. In 2008, the skilled nursing services, including the integrated rehabilitative therapy services, generated approximately 98% of the Company’s revenues. Effective October 1, 2009, The Ensign Group, Inc. acquired Golden Acres, an operating skilled nursing and independent living campus, as well as a separate hospice business, both in Dallas, Texas. The Company also announced that it has acquired three Utah skilled nursing facilities, South Valley Care Center in West Jordan, a suburb of Salt Lake City, Rock Canyon Rehab & Care Center in Provo, and Castle Country Care Center in Price.

In December 2009, the Company acquired SunView Care Center, an operating skilled nursing and Alzheimer’s campus in Youngtown, Arizona, a sister community adjacent to Arizona’s Sun City retirement community. Effective December 31, 2009, it acquired the underlying real estate and other operating assets of Paramount Health & Rehabilitation Center, an 85-bed skilled nursing facility in Salt Lake City. Effective January 1, 2010, the Company announced that it has acquired Emmett Care & Rehabilitation Center, a 72-bed skilled nursing facility in Emmett, Idaho, and Parke View Rehabilitation & Care Center, an 86-bed skilled nursing facility in Burley, Idaho.

The Company is a holding company and all of the Company’s facilities are operated by separate, wholly owned, independent subsidiaries, each of which has its own management, employees and assets. One of the Company’s wholly owned subsidiaries, referred to as the Service Center, provides centralized accounting, payroll, human resources, information technology, legal, risk management and other centralized services to the other operating subsidiaries, through contractual relationships between such subsidiaries. Ensign also has a wholly owned captive insurance subsidiary (the Captive) that provides some claims-made coverage to the Company’s operating subsidiaries for general and professional liability, as well as for certain workers’ compensation insurance liabilities.