Core Viewpoint - The Pennant Group, Inc. (PNTG) has shown a 1.6% increase in stock price over the past four weeks, closing at $25.82, with a potential upside of 28.6% based on Wall Street analysts' mean price target of $33.20 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $4.32, indicating variability among analysts; the lowest estimate suggests an 8.4% increase to $28, while the highest predicts a 47.2% surge to $38 [2] - A low standard deviation among price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about PNTG's earnings prospects, with a strong consensus on higher EPS estimates, which correlates with potential stock price increases [11] - Over the last 30 days, one estimate has been revised upward, leading to a 1.2% increase in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - PNTG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [13]

Core Viewpoint - The Pennant Group, Inc. is set to release its first quarter 2025 financial results on May 6, 2025, and will hold a live webcast for discussion on May 7, 2025 [1][2]. Company Overview - The Pennant Group, Inc. operates as a holding company for independent subsidiaries that provide healthcare services, including home health, hospice, and senior living services across multiple states in the U.S. [4]. - The company's subsidiaries are independently managed, each with its own management, employees, and assets [4]. Upcoming Events - A live webcast will take place on May 7, 2025, at 10:00 a.m. Mountain Time (12:00 p.m. Eastern Time) to discuss the first quarter results [2]. - The webcast will be available for replay on the company's website until May 7, 2026 [3]. Investor Relations - Investors can access financial and statistical information through the Investor Relations section of the Pennant Group's website [3]. - Contact information for investor inquiries is provided, including a phone number and email address [5].

EAGLE, Idaho, April 01, 2025 (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, announces the acquisition of the real estate and operations of an established senior living community in Arizona. The newly acquired community offers assisted living and memory care services, and increases Pennant's Arizona operations by 128 units. "This acquisition aligns with our mission to provide life-ch ...

EAGLE, Idaho, April 01, 2025 (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, announces the acquisition of the real estate and operations of an established senior living community in Arizona. The newly acquired community offers assisted living and memory care services, and increases Pennant's Arizona operations by 128 units. "This acquisition aligns with our mission to provide life-c ...

Core Points - The Pennant Group, Inc. will participate in the 2025 Oppenheimer Co. Annual Healthcare MedTech & Services Conference on March 18, 2025 [1] - Key executives including the CEO, CFO, and Executive Vice President will engage in a fireside chat during the conference [2] Company Overview - The Pennant Group, Inc. operates as a holding company for independent subsidiaries providing healthcare services through 131 home health and hospice agencies and 60 senior living communities across various states [3] - Each subsidiary operates independently with its own management, employees, and assets, indicating a decentralized operational structure [3]

Financial Data and Key Metrics Changes - The company reported Q4 adjusted earnings per share of $0.24, contributing to a full year adjusted earnings per share of $0.94, exceeding the updated guidance midpoint of $0.93 [11] - Full year consolidated revenue reached $695.2 million, an increase of $150.3 million or 27.6% over the prior year, with adjusted EBITDA of $53.3 million, an improvement of $12.6 million or 30.9% [12][33] - The company generated $20.6 million in net cash from operating activities and $17.2 million in free cash flow during Q4 [36] Business Line Data and Key Metrics Changes - Home health and hospice segment revenue for the full year increased to $519.5 million, a $125 million or 31.7% increase over the prior year, with Q4 revenue at $142 million, a $35.1 million or 32.9% increase [21] - Senior living segment revenue improved to $175.8 million, an increase of $25.3 million or 16.8% over the prior year, with Q4 revenue at $46.9 million, a $7.8 million or 20% increase [26] Market Data and Key Metrics Changes - Home health admissions reached a new high of 15,909, an increase of 40.9%, while Medicare admissions increased to 6,443, a 30.1% rise [22] - The average CMS-reported star rating was 4.1, significantly exceeding the national average of 3.0, indicating strong clinical outcomes [24] Company Strategy and Development Direction - The company is focused on five key initiatives: leadership development, employee experience, clinical excellence, margin, and growth, with significant progress made in each area [14] - The company anticipates full-year 2025 revenue in the range of $800 million to $865 million, with adjusted earnings per share projected between $1.03 and $1.11, reflecting strong growth momentum [19][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in both segments, driven by local leaders' readiness to drive organic and inorganic growth [19] - The company remains confident in its ability to adapt to potential changes in the legislative funding environment, particularly regarding Medicaid [66] Other Important Information - The company completed numerous strategic acquisitions, including the $80 million purchase of Signature Healthcare at Home, enhancing its operational capabilities [13] - The company has a healthy balance sheet with $245.8 million available on its revolving line of credit and $24.2 million in cash on hand at year-end [36] Q&A Session Summary Question: Can you walk us through the expectations for same-store revenue growth for home health, hospice, and senior living within the 2025 guidance? - The company projects about a 7% increase in revenue for same-store operations, excluding Signature [53] Question: How do you assess the legislative funding environment and its impact on your business? - The company noted that 13% of its revenue mix is from Medicaid, primarily in senior living, and expressed optimism about the resilience of its model amid potential funding changes [61][66] Question: What are the expectations for operating cash flow and CapEx for 2025? - The company anticipates mid to high forties for operating cash flow and similar CapEx expenditures as in the previous year [71] Question: How do you expect EBITDA margins to improve with recent acquisitions? - The company expects some impact from recent acquisitions but aims to maintain high EBITDA margins in home health and hospice, while improving senior living margins throughout the year [83][84]

The Pennant Group, Inc. (NASDAQ:PNTG) Q4 2024 Earnings Conference Call February 28, 2025 12:00 PM ET Company Participants Kirk Cheney - General Counsel and Corporate Secretary Brent Guerisoli - CEO John Gochnour - President and COO Lynette Walbom - CFO Conference Call Participants Scott Fidel - Stephens Stephen Baxter - Wells Fargo Ben Hendrix - RBC Capital Markets Operator Good day, and thank you for standing by. Welcome to The Pennant Group Fourth Quarter 2024 Earnings Call. [Operator Instructions]. Pleas ...

Group 1 - The Pennant Group, Inc. reported quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.25 per share, but showing an increase from $0.22 per share a year ago, resulting in an earnings surprise of -4% [1] - The company posted revenues of $188.89 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.12%, and compared to year-ago revenues of $145.95 million [2] - The stock has underperformed the market, losing about 3.9% since the beginning of the year, while the S&P 500 gained 1.3% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $196.7 million, and for the current fiscal year, it is $1.08 on revenues of $809.14 million [7] - The Medical - Outpatient and Home Healthcare industry is currently in the top 31% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The estimate revisions trend for The Pennant Group is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Total revenue for fiscal year 2024 was $695.2 million, an increase of $150.3 million or 27.6% year-over-year, and for Q4 was $188.9 million, an increase of $42.9 million or 29.4% year-over-year[3] - Net income for fiscal year 2024 was $22.6 million, an increase of $9.2 million or 68.6% year-over-year, and for Q4 was $5.8 million, an increase of $1.4 million or 32.4% year-over-year[3] - Adjusted EBITDA for fiscal year 2024 was $53.3 million, an increase of $12.6 million or 30.9% year-over-year, and for Q4 was $13.8 million, an increase of $1.9 million or 16.1% year-over-year[3] - Total revenue for the year ended December 31, 2024, was $695,240 thousand, a 27.5% increase from $544,891 thousand in 2023[25] - Total revenue for Q4 2024 reached $188.892 million, a 29.4% increase from $145.954 million in Q4 2023[35] - Non-GAAP net income for Q4 2024 was $8.494 million, up from $6.635 million in Q4 2023, reflecting a 28% increase[38] - Adjusted diluted earnings per share for the year ended December 31, 2024, was $0.94, compared to $0.73 in 2023, representing a 28.5% increase[38] Segment Performance - Home Health and Hospice Services segment revenue for fiscal year 2024 was $519.5 million, an increase of $125.0 million or 31.7% year-over-year, and for Q4 was $142.0 million, an increase of $35.1 million or 32.9% year-over-year[3] - Senior Living segment revenue for fiscal year 2024 was $175.8 million, an increase of $25.3 million or 16.8% year-over-year, and for Q4 was $46.9 million, an increase of $7.8 million or 20.0% year-over-year[7] - Hospice average daily census for fiscal year 2024 was 3,268, an increase of 661 or 25.4% year-over-year, and for Q4 was 3,445, an increase of 649 or 23.2% year-over-year[7] - Segment revenue for Home Health and Hospice Services increased to $141,849,000 in Q4 2024 from $104,990,000 in Q4 2023, representing a growth of 35%[46] - Segment revenue for Senior Living Services rose to $46,871,000 in Q4 2024 from $38,748,000 in Q4 2023, marking an increase of 21%[46] - Total segment revenue for the year ended December 31, 2024, reached $695,240,000, up from $544,891,000 in 2023, reflecting a year-over-year growth of 28%[46] Guidance and Future Outlook - 2025 total revenue guidance is anticipated to be between $800.0 million and $865.0 million, with adjusted earnings per diluted share expected between $1.03 and $1.11[6] - The midpoint of 2025 earnings guidance represents 13.8% growth on 2024 adjusted earnings per share and 46.6% growth over 2023 results[7] - The company plans to continue expanding its market presence and investing in new technologies to enhance service delivery and operational efficiency[48] Cash Flow and Balance Sheet - The company ended the year with record-setting cash flows from operations, enhancing its balance sheet for future growth opportunities[4] - Total assets increased to $679,521 thousand as of December 31, 2024, up from $539,691 thousand in 2023, representing a growth of 25.9%[19] - Net cash provided by operating activities was $39,298 thousand in 2024, up from $33,090 thousand in 2023, reflecting a growth of 18.7%[22] - The company reported a net increase in cash to $24,246 thousand at the end of 2024, compared to $6,059 thousand at the end of 2023[22] - Total equity grew to $311,965 thousand in 2024, up from $145,515 thousand in 2023, indicating a significant increase of 114.4%[19] Liabilities and Expenses - Total current liabilities increased to $101,700 thousand in 2024 from $71,549 thousand in 2023, a rise of 42.1%[19] - Unallocated corporate expenses for Q4 2024 were $11,747,000, compared to $8,208,000 in Q4 2023, reflecting an increase of 43%[46] - The company incurred share-based compensation expenses of $2.425 million in Q4 2024, compared to $1.401 million in Q4 2023[38] Medicare and Revenue Sources - Average Medicare revenue per 60-day completed episode rose to $3,677 in 2024, a 6.0% increase from $3,468 in 2023[29] - Medicare revenue for Q4 2024 was $90.116 million, accounting for 47.7% of total revenue, compared to $70.915 million (48.6%) in Q4 2023[35] - Managed Care revenue for Q4 2024 was $26.613 million, up from $20.210 million in Q4 2023, indicating a 31.6% growth[35] - Private and Other payors revenue for Q4 2024 was $46.845 million, representing 24.8% of total revenue, up from $33.947 million (23.3%) in Q4 2023[35] Tax and Income from Operations - The effective tax rate for the year ended December 31, 2024, was 25.2%, slightly lower than 25.8% in 2023[41] - The company reported income from operations of $9,236,000 for Q4 2024, up from $7,567,000 in Q4 2023, a growth of 22%[46]

Revenue Growth and Market Trends - Home health and hospice services revenue grew by 669.0% from 2014 to 2024, representing a compounded annual growth rate of 22.6%[39] - The home health market is projected to grow at a CAGR of 8.0% from 2024 to 2030, while the hospice industry is estimated to grow at a CAGR of 8.1%[45] - The over-65 population in the U.S. is projected to increase by nearly 54% to 89 million by 2060, driving demand for home health and senior living services[46] - For the year ended December 31, 2024, the company generated 74.7% of its revenue from home health and hospice services and 25.3% from senior living services[72] Payor Mix and Revenue Sources - As of December 31, 2024, 64.7% of home health and hospice segment revenue was generated from Medicare, a slight decrease from 67.7% in 2022[31] - Medicare accounted for 48.3% of total revenue in 2024, with Medicaid contributing 13.2% and managed care at 13.3%[57] - The blended payor mix as of December 31, 2024, was 48.3% Medicare, 13.2% Medicaid, 13.3% managed care, and 25.2% private pay and other[72] - Senior living services revenue is primarily derived from private pay residents, with Medicaid programs supplementing payments in some cases[113] Operational Strategy and Growth - The company plans to pursue a disciplined acquisition strategy to expand its footprint in fragmented markets, targeting underperforming operations with high upside potential[36] - From 2014 to 2024, the company grew senior living units by 149.5%, reflecting a strategic focus on expanding service offerings[41] - The company adheres to a disciplined acquisition strategy, having successfully transitioned dozens of value-add operations[70] - The company aims to leverage operational capabilities to expand partnerships and improve clinical outcomes through data analytics[37] Workforce and Employee Management - The company had approximately 7,000 employees as of December 31, 2024, with 67.7% of total expenses being payroll related[73][75] - The company is committed to ongoing training and leadership development to attract and retain qualified leaders and caregivers[69] Quality and Compliance - The average rating for the company's home health agencies was 4.1 out of 5 stars, compared to the industry average of 3.0 stars for the year ended December 31, 2024[71] - Home health agencies must submit quality reporting data through OASIS assessments within 30 days, or face a 4% reduction in annual payments[86] - Agencies that do not participate in CAHPS surveys incur a 4% reduction in their annual base rate payment update[87] - The average star rating for home health agencies is 4.1 out of 5, compared to the industry average of 3.0 stars[88] - The company has a compliance program to ensure adherence to federal, state, and private healthcare program requirements[106] - The company is subject to extensive regulatory inspections, with unannounced surveys occurring at least annually at independent operating subsidiaries[107] - Operations with poor regulatory histories may face sanctions from CMS or state regulators, impacting future performance[108] - The company maintains a HIPAA compliance plan to adhere to patient health information confidentiality regulations, which incurs significant costs[109] Regulatory Environment and Challenges - The Hospice Payment Final Rule for fiscal year 2025 includes a payment update percentage of 2.9%, estimated to increase payments by $790 million from fiscal year 2024[80] - The Home Health Payment Final Rule for calendar year 2025 has a payment update percentage of 2.7%, resulting in an estimated increase of $445 million from calendar year 2024[81] - The expanded HHVBP model could result in payment adjustments of up to 5% in FY 2025 based on FY 2023 performance[91] - The hospice cap amount for FY 2025 is set at $34,465.34, reflecting a 2.9% increase from FY 2024[96] - Failure to report standardized assessment data under the IMPACT Act may lead to a 2% reduction in market basket prices[97] - The Hospice Special Focus Program will survey selected hospices at least semiannually for 18 months[94] - Compliance with Medicare rules under the Review Choice Demonstration allows for additional choices after demonstrating compliance[93] Competitive Landscape - The company faces increased competition in the post-acute care industry, which is expected to become more competitive in the future[63][65] - The company’s innovative operating model emphasizes local decision-making and team building, which is a key competitive strength[68] Environmental and Legal Considerations - California's SB 253 requires companies with annual revenues of $1 billion or more to disclose greenhouse gas emissions starting in 2026[111] - The company is exposed to antitrust laws, with increasing enforcement activity that could lead to civil and criminal liabilities[112] - The company faces various environmental regulations, including air and water quality control and hazardous waste management[114] - The company entered into an Amended Credit Agreement with a borrowing capacity of $250 million, managing interest rate risk associated with market changes[261]