EAGLE, Idaho, May 16, 2024 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice, home care and senior living companies, today announced that it has acquired Nurses on Wheels, Inc. ("Nurses on Wheels"), which provides hospice services in Corpus Christi, Texas and the surrounding communities. "We are excited to expand the reach of our hospice operations in south Texas," said Brent Guerisoli, Chief Executive Officer of Pennant. " ...

EAGLE, Idaho, May 16, 2024 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice, home care and senior living companies, today announced that it has acquired Nurses on Wheels, Inc. ("Nurses on Wheels"), which provides hospice services in Corpus Christi, Texas and the surrounding communities. "We are excited to expand the reach of our hospice operations in south Texas," said Brent Guerisoli, Chief Executive Officer of Pennant. " ...

Core Insights - The Pennant Group, Inc. will participate in the 2024 RBC Global Healthcare Conference on May 14-15, 2024, with a fireside chat scheduled for May 15 at 9:30 a.m. Eastern Time [1] Company Overview - The Pennant Group, Inc. operates as a holding company for independent subsidiaries providing healthcare services through 112 home health and hospice agencies and 53 senior living communities across various states including Arizona, California, and Texas [2] - Each subsidiary operates independently with its own management, employees, and assets, indicating a decentralized operational structure [2]

The Pennant Group, Inc. (208) 506-6100 ir@pennantgroup.com SOURCE: The Pennant Group, Inc. The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 112 home health and hospice agencies and 53 senior living communities located throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary th ...

Financial Data and Key Metrics Changes - The company reported total GAAP revenue of $156.9 million, an increase of $30.4 million or 24.1% over the prior year quarter [46] - Adjusted EBITDA increased by $3.3 million or 41.8% to $11.2 million [56] - GAAP diluted earnings per share rose to $0.16, a 166.7% increase, while non-GAAP diluted earnings per share increased by 53.8% to $0.20 [46][56] Business Line Data and Key Metrics Changes - Home Health and Hospice segment revenue increased by 27.9% to $116.5 million, with adjusted EBITDA rising by 35.7% to $17.9 million [41] - Senior Living segment revenue increased by 14.2% to $40.4 million, with adjusted EBITDA improving by 55.6% to $3.5 million [87] - Home Health admissions grew by 34.3%, while Medicare Home Health admissions increased by 28.3% [64] Market Data and Key Metrics Changes - Managed care revenue per visit grew by 11% over the prior year quarter [42] - Same-store occupancy increased by 60 basis points to 79.7%, with revenue per occupied unit rising by 8.1% to $4,643 [66] Company Strategy and Development Direction - The company focuses on leadership development, clinical excellence, employee experience, margin improvement, and growth [33] - The company is exploring real estate acquisitions as a means to create value, applying a disciplined approach to evaluate opportunities [44][96] - The joint venture with John Muir Health aims to enhance Home Health services [4][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about cash flow from operations ramping throughout 2024, expecting total cash flow to be between $30 million and $35 million [6] - The company has experienced nine consecutive quarters of strong performance, with earnings exceeding the prior year period [39] - Management noted ongoing wage inflation pressures, with a year-over-year increase of approximately 5% across service lines [20][82] Other Important Information - The company has made significant investments in technology and leadership development, which are expected to enhance operational results [36][57] - The company reported a leverage ratio of 1.84 times net debt to adjusted EBITDA [90] Q&A Session Summary Question: How did Q1 results compare to expectations? - Management noted that Q1 results exceeded forecasts and consensus, maintaining guidance while expressing confidence in continued momentum [99] Question: What are the trends in Senior Living occupancy and rate renewals? - Management anticipates increased occupancy throughout the year and is adjusting rates based on service provision [100][102] Question: How is the company managing wage inflation? - Wage inflation remains a challenge, but management is effectively managing labor costs despite pressures [82][84]

Part I. Financial Information [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents The Pennant Group, Inc.'s unaudited condensed consolidated financial statements as of March 31, 2024 Financial Metric | Financial Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $578,243 | $539,691 | | Total Current Assets | $87,063 | $80,077 | | Goodwill | $107,220 | $91,014 | | **Total Liabilities** | $414,011 | $394,176 | | Long-term debt, net | $83,294 | $63,914 | | **Total Equity** | $164,232 | $145,515 | Income Statement Item | Income Statement Item | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $156,915 | $126,464 | | Total Expenses | $148,391 | $122,184 | | **Income from Operations** | $8,524 | $4,280 | | **Net Income** | $5,058 | $1,997 | | Net Income Attributable to The Pennant Group, Inc. | $4,906 | $1,850 | | **Diluted EPS** | $0.16 | $0.06 | Cash Flow Activity | Cash Flow Activity | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $545 | $8,996 | | Net cash used in investing activities | ($23,636) | ($2,326) | | Net cash provided by (used in) financing activities | $19,754 | ($5,797) | | **Net (decrease) increase in cash** | ($3,337) | $873 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - As of March 31, 2024, the Company's subsidiaries operated **112** home health, hospice, and home care agencies, and **53** senior living communities[20](index=20&type=chunk) Revenue by Payor - Q1 2024 vs Q1 2023 | Payor | Q1 2024 Revenue (in thousands) | Q1 2023 Revenue (in thousands) | | :--- | :--- | :--- | | Medicare | $76,981 | $60,756 | | Medicaid | $25,066 | $17,631 | | Managed Care | $20,122 | $17,126 | | Private and Other | $34,746 | $30,951 | | **Total Revenue** | **$156,915** | **$126,464** | Segment Revenue and Adjusted EBITDAR - Q1 2024 vs Q1 2023 | Segment | Q1 2024 Revenue (in thousands) | Q1 2024 Adj. EBITDAR (in thousands) | Q1 2023 Revenue (in thousands) | Q1 2023 Adj. EBITDAR (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Home Health and Hospice | $116,490 | $19,550 | $91,079 | $14,412 | | Senior Living Services | $40,425 | $12,011 | $35,385 | $10,241 | - In Q1 2024, the company acquired one home health agency via a joint venture with John Muir Health for **$11.7 million**, and acquired the real estate of two senior living communities for **$10.4 million**[66](index=66&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting a 24.1% revenue increase to $156.9 million driven by strong segment performance [Overview and Recent Activities](index=26&type=section&id=Overview%20and%20Recent%20Activities) As of March 31, 2024, the company operated 112 home health and hospice agencies and 53 senior living communities, expanding its portfolio in Q1 2024 - The company expanded its portfolio to **165** total operations as of March 31, 2024, up from **162** at year-end 2023[122](index=122&type=chunk) - Acquisitions in Q1 2024 included one home health agency and two senior living communities[123](index=123&type=chunk) [Key Performance Indicators](index=27&type=section&id=Key%20Performance%20Indicators) Key metrics for Q1 2024 show significant growth in home health admissions and hospice census, alongside improved senior living occupancy and revenue per unit Home Health and Hospice Statistics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total home health admissions | 14,649 | 10,910 | | Total Medicare home health admissions | 6,346 | 4,948 | | Total hospice admissions | 3,080 | 2,451 | | Average hospice daily census | 2,962 | 2,439 | Senior Living Statistics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Occupancy | 78.5% | 78.1% | | Average monthly revenue per occupied unit | $4,667 | $4,300 | [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q1 2024 total revenue increased 24.1% to $156.9 million, with income from operations more than doubling due to strong segment growth and improved operational efficiency Revenue by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Revenue (in thousands) | Q1 2023 Revenue (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Home health and hospice services | $116,490 | $91,079 | 27.9% | | Senior living services | $40,425 | $35,385 | 14.2% | | **Total revenue** | **$156,915** | **$126,464** | **24.1%** | - Cost of services as a percentage of revenue decreased by **80 basis points** to **80.3%** in Q1 2024 from **81.1%** in Q1 2023, primarily due to decreased wages and benefits as a percent of revenue in the Home Health and Hospice segment[178](index=178&type=chunk)[179](index=179&type=chunk) - General and administrative expenses increased by **31.4%** to **$11.4 million**, mainly due to a **$2.2 million** increase in payroll and related benefits[182](index=182&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on cash from operations and a $150 million credit facility, with Q1 2024 showing decreased operating cash flow and increased investing cash outflow - As of March 31, 2024, the company had **$61.6 million** of available borrowing capacity on its Revolving Credit Facility[188](index=188&type=chunk) Cash Flow Summary (Q1 2024 vs Q1 2023) | Cash Flow Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $545 | $8,996 | | Net cash used in investing activities | ($23,636) | ($2,326) | | Net cash provided by (used in) financing activities | $19,754 | ($5,797) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate changes on its variable-rate revolving credit facility, impacting annual interest expense by $0.8 million - A **1.0%** change in interest rates would cause annual interest expense to change by approximately **$0.8 million** based on the outstanding long-term debt as of March 31, 2024[195](index=195&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[196](index=196&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[197](index=197&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal claims, none expected to materially affect financial condition or results - The company states that none of the various claims and lawsuits arising in the ordinary course of business are expected to have a material adverse effect on its results of operations or financial condition[200](index=200&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - The report indicates no material changes from the risk factors disclosed in the 2023 Annual Report[201](index=201&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with this report include certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[203](index=203&type=chunk)

Pennant Group, Inc. (NASDAQ:PNTG) Q4 2023 Earnings Conference Call February 29, 2024 12:00 PM ET Company Participants Kirk Cheney - General Counsel & Corporate Secretary Brent Guerisoli - CEO & Director John Gochnour - President & COO Lynette Walbom - CFO Conference Call Participants Dean Sublett - Stephens, Inc. Operator Good day, and thank you for standing by. Welcome to the Pennant Group Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is bei ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2023. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to . Commission file number: 001-38900 _____ ...

Financial Performance - Total revenue for fiscal year 2023 was $544.9 million, a 15.1% increase from the prior year, and for Q4 was $146.0 million, a 17.1% increase year-over-year[3] - Net income for the full year was $13.4 million, a 101.4% increase from the prior year, and for Q4 was $4.3 million, a 25.2% increase year-over-year[3] - Adjusted diluted earnings per share for the full year was $0.73, and for Q4 was $0.22, reflecting strong earnings performance[1] - Adjusted EBITDA for the full year was $40.7 million, a 29.1% increase from the prior year, and for Q4 was $11.9 million, a 19.8% increase year-over-year[3] - Non-GAAP net income for the year was $21,894, up 28.1% from $17,068 in 2022[34] - Consolidated net income for Q4 2023 was $4,529 million, up from $3,687 million in Q4 2022, representing a 23% increase[40] - Consolidated Adjusted EBITDA for the year ended December 31, 2023, reached $40,716 million, compared to $31,545 million in 2022, reflecting a 29% growth[40] - Consolidated Adjusted EBITDAR for the year ended December 31, 2023, was $79,196 million, up from $67,955 million in 2022, representing a 16% increase[44] Revenue Segments - Home Health and Hospice Services segment revenue for the full year was $394.5 million, a 15.3% increase from the prior year, and for Q4 was $106.9 million, a 17.9% increase year-over-year[3] - Senior Living Services segment revenue for the full year was $150.4 million, a 14.8% increase from the prior year, and for Q4 was $39.1 million, also a 14.8% increase year-over-year[7] - Home health and hospice revenue increased to $394,464, up 15.3% from $342,249 in 2022[26] - Revenue from Home Health and Hospice services for Q4 2023 was $106,891 million, an increase of 18% from $90,651 million in Q4 2022[42] Admissions and Census - Total home health admissions for the full year were 43,508, a 7.6% increase from the prior year, and for Q4 were 11,328, a 12.8% increase year-over-year[3] - Total home health admissions increased to 11,328 in Q4 2023, a 12.8% rise from 10,047 in Q4 2022[24] - Hospice average daily census for the full year was 2,607, a 13.5% increase from the prior year, and for Q4 was 2,796, a 17.8% increase year-over-year[7] Financial Health - The company reported a net debt-to-adjusted EBITDA ratio of 1.44x and a lease-adjusted net debt-to-adjusted EBITDAR ratio of 4.75x, indicating strong financial health[5] - Total assets increased to $539,691 thousand as of December 31, 2023, from $512,119 thousand in 2022, marking a 5.4% growth[17] - Total liabilities rose to $394,176 thousand as of December 31, 2023, compared to $386,462 thousand in 2022, indicating a 2.0% increase[17] - The company reported a total equity of $145,515 thousand as of December 31, 2023, compared to $125,657 thousand in 2022, representing a 15.8% increase[17] Guidance and Future Outlook - Management provided 2024 annual guidance with total revenue expected between $596.8 million and $633.7 million, and adjusted earnings per diluted share anticipated between $0.82 and $0.91[7] Operational Metrics - Average Medicare revenue per 60-day completed episode for home health services was $3,573 in Q4 2023, up 2.2% from $3,497 in Q4 2022[24] - Hospice Medicare revenue per day increased to $189 in Q4 2023, reflecting a 3.8% increase from $182 in Q4 2022[24] - Average monthly revenue per occupied unit in senior living increased to $3,969, up from $3,516 in 2022[28] - Occupancy rate improved to 78.5%, compared to 75.7% in 2022[28] Shareholder Information - The effective tax rate for the year ended December 31, 2023, was 25.8%, slightly higher than 25.6% in 2022[40] - The company incurred share-based compensation expenses of $5,565 million for the year ended December 31, 2023, compared to $3,363 million in 2022, reflecting a 66% increase[40] - The company reported net interest expense of $5,924 million for the year ended December 31, 2023, compared to $3,816 million in 2022, a 55% increase[40] Non-GAAP Measures - EBITDA consists of net income before interest expense, income taxes, and depreciation and amortization[52] - Adjusted EBITDA includes costs for start-up operations, share-based compensation, and non-recurring charges[52] - Consolidated Adjusted EBITDAR is a valuation measure that includes rent-cost of services and costs associated with transitioning operations[52] - The company believes that adjusted financial measures provide important supplemental information for evaluating operating performance[52] - There are material limitations in using non-GAAP measures compared to GAAP measures, as they may not be comparable across the industry[52] - The company encourages investors to refer to periodic filings for more information on the use of non-GAAP measures[52]

Pennant Group, Inc. (NASDAQ:PNTG) Q3 2023 Earnings Conference Call November 8, 2023 12:00 PM ET Company Participants Kirk Cheney - General Counsel & Corporate Secretary Brent Guerisoli - CEO & Director John Gochnour - President & COO Lynette Walbom - CFO Conference Call Participants Benjamin Hendrix - RBC Capital Markets Operator Good day, and thank you for standing by. Welcome to the Pennant Group Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conferenc ...