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The Ensign Group, Inc. Reports Third Quarter 2007 Earnings
Date:12/21/2007

ing to the Company. The subpoena, which requests documents regarding the Company and certain of its skilled nursing facilities, was disclosed to the Company by the independent registered public accounting firm on December 17, 2007.

Although little is known regarding the investigation, it is believed to be focused on claims submitted to the Medicare program for rehabilitation services provided at one or more of its skilled nursing facilities. The subpoena confirms the Company's previously reported belief that the U.S. Attorney has been conducting such an investigation. To our knowledge, however, neither The Ensign Group, Inc. nor any of its operating subsidiaries or employees has been formally charged with any wrongdoing, served with any subpoenas or related requests, or directly notified of any concerns or investigations by the U.S. Attorney or any government agency. Also to our knowledge, this is the second document request issued by the U.S. Attorney for records involving Ensign. The prior request, an authorized investigative demand which is similar to a subpoena, was issued in February 2007 and requested documents from the Company's bank. The U.S. Attorney voluntarily rescinded that demand before any records were delivered.

Operating Results

For the quarter ended September 30, 2007, total revenue was $104.1 million, up 12.7% compared to $92.3 million for the prior year quarter. This revenue increase was primarily due to the revenue generated by acquired facilities during 2006 and 2007. This growth rate was achieved in spite of generally lower occupancy rates, and relatively lower skilled mix and quality mix in recently-acquired facilities. For purposes of these financial results, we have defined "same" facilities as those facilities that in which we commenced operations prior to January 1, 2006. "Recently acquired" facilities refers to those facilities in which we commenced operations on or after January 1, 2006.

The Company reported n
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SOURCE The Ensign Group, Inc.
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