Exhibit 99.1

The Ensign Group Reports Record Quarter; Raises Guidance

Conference Call and Webcast Scheduled for August 10, 2010 at 8:00 am PT

MISSION VIEJO, Calif., Aug 06, 2010 /PRNewswire via COMTEX News Network/ — The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign(TM) group of skilled nursing, rehabilitative care services, home health, hospice care and assisted living companies, today reported record results for the second quarter of 2010.

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Financial Highlights Include:

	•		Adjusted earnings were a record $0.46 per diluted share, up 15.0% over the second quarter of 2009;
	•		Total revenue was a record $157.9 million, up 19.5% on a consolidated basis;
	•		Same-store skilled mix increased by 284 basis points to 52.9%;
	•		Same-store skilled revenue increased by 10.4%;
	•		Consolidated EBITDAR climbed 19.9% to $25.7 million, with consolidated EBITDAR margins of 16.3%; and
	•		Net income rose 17.5% to $9.6 million for the quarter.

Operating Results

Ensign’s President and Chief Executive Officer Christopher Christensen praised Ensign’s operational leaders and their teams for the outstanding quality standards maintained during the quarter, noting that financial performance follows clinical excellence. “We understand that our patients, our staff and our business all benefit from one essential thing: high quality care,” he said.

He also remarked on progress in the 19 facility acquisitions completed by the Company in 2009 and 2010 to date, noting that all but one are already profitable, and nearly all are running at or ahead of proforma since acquisition. He also reported that Horizon Home Health and Hospice, Ensign’s Idaho home health and hospice business which was acquired on May 1, is seeing a surge in census and is also running ahead of proforma.

Mr. Christensen also referenced Ensign’s balance sheet and its industry-low adjusted net-debt-to-EBITDAR ratio of approximately 2.1x. He further noted that the company continues to generate strong cash flow, with net cash from operations of
$14.9 million through June 30, 2010. “Our balance sheet, together with our accumulated operating and turnaround expertise, position us well to continue our pattern of disciplined growth,” he added.

Fully diluted GAAP earnings per share were $0.46 for the quarter, compared to $0.39 per share in the prior year. Excluding $0.1 million in acquisition expenses and amortization of recently-acquired patient bases, adjusted net income was $9.7 million or $0.46 per diluted share for the quarter.

A discussion of the company’s use of non-GAAP financial measures is set forth below. A reconciliation of net income to EBITDAR and EBITDA, as well as a reconciliation of GAAP earnings per share and net income to adjusted net earnings per share and adjusted net income, appear in the financial data portion of this release.

More complete information is contained in the Company’s 10-Q, which was filed with the SEC today and can be viewed on the Company’s website at http://www.ensigngroup.net.

2010 Guidance Increased

Management increased its 2010 annual guidance, projecting revenues of $628 million to $638 million, and net income of $1.79 to $1.83 per diluted share for the year. The guidance is based on diluted weighted average common shares outstanding of
21.4 million and assumes, among other things, no additional acquisitions or dispositions beyond those made to date, and an aggregate 1.0% projected decline in overall reimbursement rates. It also assumes that tax rates do not materially increase, and no negative impact associated with the implementation of RUGs IV and MDS 3.0.

Quarter Highlights

During the quarter, the company’s Board of Directors declared a quarterly cash dividend of $0.05 per share of Ensign common stock. Ensign has been a dividend-paying company since 2002.

The company also announced the acquisition of two long-term care facilities and a home health and hospice business in two separate transactions during the quarter. The real estate and operations were purchased with cash, and include:

	•		In Texas, Heritage Gardens Healthcare Center, a 140-bed skilled nursing facility in Carrollton, Texas, and Silver Springs Healthcare Center, a 144-bed skilled nursing facility in Houston, Texas, on May 1, 2010.
	•		And in Idaho, Horizon Home Health and Hospice, a well-regarded home health and hospice agency based in Meridian, Idaho, also on May 1, 2010.

The two facility acquisitions brought Ensign’s growing portfolio to 81 facilities, 51 of which are Ensign-owned, with Ensign affiliates holding purchase options on eight of Ensign’s 30 leased facilities. Ensign also owns one home health and two hospice businesses. Management reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling long-term care operations across the Western United States.

Conference Call

A live webcast will be held on Tuesday, August 10, 2010, at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to discuss Ensign’s second quarter results. To listen to the webcast, or to view any financial or statistical information required by SEC Regulation G, please visit the Investors section of the Ensign website at http://investor.ensigngroup.net. The webcast will be recorded, and will be available for replay via the website until 5:00 p.m. Pacific Time on Tuesday, August 17, 2010.

About Ensign(TM)

The Ensign Group, Inc.’s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services, and other rehabilitative and healthcare services for both long-term residents and short-stay rehabilitation patients at 81 facilities, two hospice companies and a home health business in California, Arizona, Texas, Washington, Utah, Idaho and Colorado. Each of these facilities is operated by a separate, wholly-owned independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated “Company” and “its” assets and activities, as well as the use of the terms “we,” “us,” “its” and similar verbiage are not meant to imply that The Ensign Group, Inc. has direct operating assets, employees or revenue, or that any of the facilities, the hospice business, the Service Center or the captive insurance subsidiary are operated by the same entity. More information about Ensign is available at http://www.ensigngroup.net.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains, and the related conference call and webcast will include, forward-looking statements that are based on management’s current expectations, assumptions and beliefs about its business, financial performance, operating results, the industry in which it operates and other future events. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding growth prospects, future operating and financial performance. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to materially and adversely differ from those expressed in any forward-looking statement.

These risks and uncertainties relate to the company’s business, its industry and its common stock and include: reduced prices and reimbursement rates for its services; its ability to acquire, develop, manage or improve facilities, its ability to manage its increasing borrowing costs as it incurs additional indebtedness to fund the acquisition and development of facilities; its ability to access capital on a cost-effective basis to continue to successfully implement its growth strategy; its operating margins and profitability could suffer if it is unable to grow and manage effectively its increasing number of facilities; competition from other companies in the acquisition, development and operation of facilities; and the application of existing or proposed government regulations, or the adoption of new laws and regulations, that could limit its business operations, require it to incur significant expenditures or limit its ability to relocate its facilities if necessary. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the company’s periodic filings with the Securities and Exchange Commission, including its Form 10-Q, which was filed today, for a more complete discussion of the risks and other factors that could affect Ensign’s business, prospects and any forward-looking statements. Except as required by the federal securities laws, Ensign does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

THE ENSIGN GROUP, INC.
GAAP AND ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

		Three Months Ended
		June 30, 2010
						Non-
		As				GAAP				As
		Reported				Adj.				Adjusted
Revenue		$	157,948							$	157,948
Expense:
Cost of services (exclusive of facility rent and depreciation and amortization shown separately below)			125,808				(37	)(1)			125,771
Facility rent—cost of services			3,616								3,616
General and administrative expense			6,407								6,407
Depreciation and amortization			4,023				(114	)(2)			3,909
Total expenses			139,854				(151	)			139,703
Income from operations			18,094				151				18,245
Other income (expense):
Interest expense			(2,308	)							(2,308	)
Interest income			63								63
Other expense, net			(2,245	)							(2,245	)
Income before provision for income taxes			15,849				151				16,000
Provision for income taxes			6,230				60	(3)			6,290
Net income		$	9,619				91			$	9,710
Net income per share:
Basic		$	0.46							$	0.47
Diluted		$	0.46							$	0.46
Weighted average common shares outstanding:
Basic			20,741								20,741
Diluted			21,126								21,126

		Six Months Ended
		June 30, 2010
						Non-
		As				GAAP				As
		Reported				Adj.				Adjusted
Revenue		$	312,122							$	312,122
Expense:
Cost of services (exclusive of facility rent and depreciation and amortization shown separately below)			248,991				(89	)(1)			248,902
Facility rent—cost of services			7,191								7,191
General and administrative expense			12,181								12,181
Depreciation and amortization			7,978				(369	)(2)			7,609
Total expenses			276,341				(458	)			275,883
Income from operations			35,781				458				36,239
Other income (expense):
Interest expense			(4,588	)							(4,588	)
Interest income			130								130
Other expense, net			(4,458	)							(4,458	)
Income before provision for income taxes			31,323				458				31,781
Provision for income taxes			12,356				181	(3)			12,537
Net income		$	18,967				277			$	19,244
Net income per share:
Basic		$	0.92							$	0.93
Diluted		$	0.90							$	0.91
Weighted average common shares outstanding:
Basic			20,713								20,713
Diluted			21,103								21,103

THE ENSIGN GROUP, INC.
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDAR
(in thousands)
The table below reconciles net income to EBITDA and EBITDAR for the
periods presented:

		Three Months Ended
		June 30,
		2010				2009
Consolidated Statement of Income Data:
Net income		$	9,619			$	8,184
Interest expense, net			2,245				1,072
Provision for income taxes			6,230				5,282
Depreciation and amortization			4,023				3,209
EBITDA		$	22,117			$	17,747
Facility rent—cost of services			3,616				3,724
EBITDAR		$	25,733			$	21,471

		Six Months Ended
		June 30,
		2010				2009
Consolidated Statement of Income Data:
Net income		$	18,967			$	16,107
Interest expense, net			4,458				2,330
Provision for income taxes			12,356				10,560
Depreciation and amortization			7,978				6,174
EBITDA(1)		$	43,759			$	35,171
Facility rent—cost of services			7,191				7,425
EBITDAR(1)		$	50,950			$	42,596

THE ENSIGN GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS
(In thousands)

		June 30,				December 31,
		2010				2009
Assets
Current assets:
Cash and cash equivalents		$	26,353			$	38,855
Accounts receivable			72,678				62,606
Prepaid income taxes			1,245				1,242
Prepaid expenses and other current assets			6,695				6,498
Deferred tax asset-current			8,868				8,126
Total current assets			115,839				117,327
Property and equipment, net			251,320				230,774
Insurance subsidiary deposits and investments			15,397				13,810
Escrow deposits			—				7,595
Deferred tax asset			6,659				4,262
Restricted and other assets			6,036				5,650
Intangible assets, net			4,288				4,498
Goodwill			10,524				7,432
Other indefinite-lived intangibles			672				—
Total assets		$	410,735			$	391,348
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	16,267			$	15,498
Accrued wages and related liabilities			27,538				28,756
Accrued self-insurance liabilities-current			10,500				10,074
Other accrued liabilities			13,442				15,375
Current maturities of long-term debt			2,125				2,065
Total current liabilities			69,872				71,768
Long-term debt-less current maturities			106,363				107,401
Accrued self-insurance liabilities-less current portion			25,059				22,096
Deferred rent and other long-term liabilities			2,897				2,524
Stockholders’ equity			206,544				187,559
Total liabilities and stockholders’ equity		$	410,735			$	391,348

The following table presents selected data from our condensed consolidated statement of cash flows for the periods presented:

		Six Months Ended
		June 30,
		2010				2009
		(In thousands)
Net cash provided by operating activities		$	14,903			$	18,700
Net cash used in investing activities			(25,153	)			(24,072	)
Net cash used in financing activities			(2,252	)			(2,267	)
Net decrease in cash and cash equivalents			(12,502	)			(7,639	)
Cash and cash equivalents at beginning of period			38,855				41,326
Cash and cash equivalents at end of period		$	26,353			$	33,687

THE ENSIGN GROUP, INC.
SELECT PERFORMANCE INDICATORS
(Dollars in thousands)
The following table summarizes our selected performance indicators,
along with other statistics, for each of the dates or periods
indicated:

		Three Months Ended
		June 30,
		2010				2009
		(Dollars in
		thousands)								Change				% Change
Total Facility
Results:
Revenue		$	157,948			$	132,178			$	25,770				19.5	%
Number of facilities at period end			81				70				11				15.7	%
Actual patient days			667,858				576,738				91,120				15.8	%
Occupancy percentage — Operational beds			79.3	%			79.4	%							(0.1	)%
Skilled mix by nursing days			24.8	%			24.3	%							0.5	%
Skilled mix by nursing revenue			48.2	%			48.0	%							0.2	%

		Three Months Ended
		June 30,
		2010				2009
		(Dollars in
		thousands)								Change				% Change
Same Facility
Results(1):
Revenue		$	120,899			$	116,296			$	4,603				4.0	%
Number of facilities at period end			56				56				—				—	%
Actual patient days			488,508				495,981				(7,473	)			(1.5	)%
Occupancy percentage — Operational beds			82.5	%			81.6	%							0.9	%
Skilled mix by nursing days			28.6	%			25.9	%							2.7	%
Skilled mix by nursing revenue			52.9	%			50.1	%							2.8	%

		Three Months Ended
		June 30,
		2010				2009				Change				% Change
		(Dollars in
		thousands)
Transitioning Facility Results(2):
Revenue		$	8,753			$	7,924			$	829				10.5	%
Number of facilities at period end			6				6				—				—	%
Actual patient days			40,901				39,249				1,652				4.2	%
Occupancy percentage — Operational beds			70.6	%			67.7	%							2.9	%
Skilled mix by nursing days			18.5	%			18.2	%							0.3	%
Skilled mix by nursing revenue			39.7	%			41.7	%							(2.0	)%

		Three Months Ended
		June 30,
		2010				2009				Change				% Change
		(Dollars in
		thousands)
Recently Acquired Facility Results(3):
Revenue		$	28,296			$	7,958			$	20,338			NM		%
Number of facilities at period end			19				7				12			NM		%
Actual patient days			138,449				41,508				96,941			NM		%
Occupancy percentage — Operational beds			72.2	%			68.1	%							4.1	%
Skilled mix by nursing days			13.5	%			10.8	%							2.7	%
Skilled mix by nursing revenue			29.5	%			23.3	%							6.2	%

THE ENSIGN GROUP, INC.
SELECT PERFORMANCE INDICATORS
(Dollars in thousands)

The following table summarizes our selected performance indicators, along with other statistics, for each of the dates or periods indicated:

		Six Months Ended
		June 30,
		2010				2009				Change				% Change
		(Dollars in
		thousands)
Total Facility Results:
Revenue		$	312,122			$	262,463			$	49,659				18.9	%
Number of facilities at period end			81				70				9				12.9	%
Actual patient days			1,316,942				1,143,357				173,585				15.2	%
Occupancy percentage — Operational beds			79.4	%			79.6	%							(0.2	)%
Skilled mix by nursing days			25.4	%			24.8	%							0.6	%
Skilled mix by nursing revenue			49.0	%			48.3	%							0.7	%

		Six Months Ended
		June 30,
		2010				2009				Change				% Change
		(Dollars in
		thousands)
Same Facility Results(1):
Revenue		$	242,049			$	232,600			$	9,449				4.1	%
Number of facilities at period end			56				56				—				—	%
Actual patient days			974,009				992,838				(18,829	)			(1.9	)%
Occupancy percentage — Operational beds			82.6	%			82.0	%							0.6	%
Skilled mix by nursing days			29.0	%			26.3	%							2.7	%
Skilled mix by nursing revenue			53.5	%			50.2	%							3.3	%

		Six Months Ended
		June 30,
		2010				2009				Change				% Change
		(Dollars in
		thousands)
Transitioning Facility Results(2):
Revenue		$	16,917			$	16,164			$	753				4.7	%
Number of facilities at period end			6				6				—				—	%
Actual patient days			80,878				78,041				2,837				3.6	%
Occupancy percentage — Operational beds			70.2	%			67.7	%							2.5	%
Skilled mix by nursing days			18.7	%			18.7	%							—	%
Skilled mix by nursing revenue			40.0	%			43.2	%							(3.2	)%

		Six Months Ended
		June 30,
		2010				2009				Change				% Change
		(Dollars in
		thousands)
Recently Acquired Facility Results(3):
Revenue		$	53,156			$	13,699			$	39,457			NM		%
Number of facilities at period end			19				7				12			NM		%
Actual patient days			262,055				72,478				189,577			NM		%
Occupancy percentage — Operational beds			71.8	%			65.9	%							5.9	%
Skilled mix by nursing days			14.2	%			9.6	%							4.6	%
Skilled mix by nursing revenue			30.6	%			20.8	%							9.8	%

THE ENSIGN GROUP, INC.
SKILLED NURSING AVERAGE DAILY REVENUE RATES AND REVENUE BY PAYOR

The following table reflects the change in the skilled nursing average daily revenue rates by payor source, excluding therapy and other ancillary services that are not covered by the daily rate:

		Three Months Ended
		June 30,
		Same Facility
		2010				2009				% Change
Skilled Nursing Average Daily Revenue Rates:
Medicare		$	551.53			$	552.06				—	%
Managed care			343.52				340.15				1.0	%
Other skilled			543.60				620.88				(12.4	)%
Total skilled revenue			469.43				470.83				(0.3	)%
Medicaid			163.44				160.44				1.9	%
Private and other payors			189.80				185.21				2.5	%
Total skilled nursing revenue		$	253.53			$	243.42				4.2	%

		Six Months Ended
		June 30,
		Same Facility
		2010				2009				% Change
Skilled Nursing Average Daily Revenue Rates:
Medicare		$	553.30			$	543.66				1.8	%
Managed care			341.68				334.46				2.2	%
Other skilled			547.19				632.38				(13.5	)%
Total skilled revenue			469.74				463.42				1.4	%
Medicaid			163.86				160.95				1.8	%
Private and other payors			187.63				183.81				2.1	%
Total skilled nursing revenue		$	254.99			$	243.14				4.9	%

The following table sets forth our total revenue by payor source and as a percentage of total revenue for the periods indicated:

		Three Months Ended
		June 30,
		2010								2009
		$				%				$				%
Revenue:
Medicaid		$	64,002				40.5	%		$	53,603				40.6	%
Medicare			50,589				32.1				43,156				32.7
Medicaid-skilled			4,624				2.9				2,705				2.0
Total			119,215				75.5				99,464				75.3
Managed Care			20,222				12.8				17,182				13.0
Private and Other			18,511				11.7				15,532				11.7
Total revenue		$	157,948				100.0	%		$	132,178				100.0	%

		Six Months Ended
		June 30,
		2010								2009
		$				%				$				%
Revenue:
Medicaid		$	125,656				40.3	%		$	105,839				40.3	%
Medicare			101,711				32.6				86,362				32.9
Medicaid-skilled			9,041				2.9				4,988				1.9
Total			236,408				75.8				197,189				75.1
Managed Care			40,791				13.0				34,679				13.2
Private and Other			34,923				11.2				30,595				11.7
Total revenue		$	312,122				100.0	%		$	262,463				100.0	%

Discussion of Non-GAAP Financial Measures

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) facility rent-cost of services. The Company believes that the presentation of EBITDA and EBITDAR provides important supplemental information to management and investors to evaluate the Company’s operating performance. The Company believes disclosure of adjusted non-GAAP net income and non-GAAP diluted earnings per share has economic substance because the excluded expenses are infrequent in nature and are variable in nature, or do not represent current 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 Report on Form 10-Q filed today with the SEC. The Form 10-Q is 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.

SOURCE The Ensign Group, Inc.

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