Operations Overview - As of March 31, 2025, the company operates 137 home health and hospice agencies and 60 senior living communities across 13 states[126]. - The company added five home health agencies, four hospice agencies, and three senior living communities during the three months ended March 31, 2025[128]. - The number of home health and hospice agencies increased to 137 at the end of Q1 2025, up from 112 a year earlier, representing a growth of 22.3%[179]. - The company added seven senior living communities between March 31, 2024, and March 31, 2025, contributing to revenue growth[180]. Revenue Growth - Total revenue for the three months ended March 31, 2025, was $209,842,000, an increase from $156,915,000 in the same period of 2024, representing a growth of 33.5%[152]. - Total revenue increased by $52.9 million, or 33.7%, to $209.8 million for the three months ended March 31, 2025, compared to $156.9 million in the same period of 2024[178]. - Home health and hospice services revenue grew by $43.4 million, or 37.2%, driven by a 28.9% increase in total home health admissions and a 22.8% increase in total hospice admissions[179]. - Senior living services revenue increased by $9.5 million, or 23.6%, attributed to an 11.3% rise in average monthly revenue per occupied unit[180]. Admissions and Census - Total home health admissions increased to 18,878 in Q1 2025 from 14,649 in Q1 2024, representing a growth of approximately 28.5%[136]. - Total hospice admissions increased to 3,783 in Q1 2025 from 3,080 in Q1 2024, reflecting a growth of approximately 22.8%[136]. - Average hospice daily census improved to 3,794 in Q1 2025 compared to 2,962 in Q1 2024, indicating a significant increase of about 28%[136]. - The average daily hospice census increased by 28.1%, reaching 3,794 in Q1 2025, compared to 2,962 in Q1 2024[179]. Financial Performance - Net income attributable to the company for the three months ended March 31, 2025, was $8,522,000, compared to $5,058,000 in 2024, reflecting a year-over-year increase of 68.8%[159]. - Consolidated Adjusted EBITDA for the three months ended March 31, 2025, was $16,373,000, compared to $11,224,000 in 2024, marking an increase of 45.8%[157]. - Segment revenue from Home Health and Hospice Services was $159,443,000 for Q1 2025, up from $114,490,000 in Q1 2024, indicating a growth of 39.2%[154]. - Segment Adjusted EBITDAR from Operations for Home Health and Hospice Services was $25,139,000 in Q1 2025, up from $17,886,000 in Q1 2024, a growth of 40.5%[157]. Cost and Expenses - Total expenses for the three months ended March 31, 2025, were $197,192,000, compared to $148,391,000 in the same period of 2024, reflecting an increase of 32.8%[152]. - Total consolidated cost of services increased by $42.8 million, or 33.9%, for the three months ended March 31, 2025, compared to the same period in 2024[181]. - Cost of services related to Home Health and Hospice Services segment increased by $35.4 million, or 36.4%, primarily due to increased volume of services provided[182]. - Cost of services for Senior Living Services segment increased by $7.3 million, or 25.5%, primarily due to increased wages and benefits and acquisition activity[183]. Cash Flow and Financing - Net cash used in operating activities decreased by $21.8 million for the three months ended March 31, 2025, primarily due to a decrease in cash flows from operating assets and liabilities[194]. - Net cash used in investing activities increased by $26.7 million, primarily driven by an increase in business and asset acquisitions[195]. - Net cash provided by financing activities increased by approximately $32.8 million, primarily due to a net increase in the balance on the line of credit[196]. - As of March 31, 2025, the company had $5.2 million of cash and $193.3 million of available borrowing capacity on its Amended Revolving Credit Facility[192]. Regulatory and Market Insights - The Hospice Payment Proposed Rule for 2026 includes a payment update percentage of 2.4%, estimated to increase payments by $695 million from fiscal year 2025[133]. - The hospice cap amount for the 2026 fiscal year is set at $35,292.51, an increase from the 2025 fiscal year cap of $34,465.34[133]. - The company anticipates fluctuations in consolidated and segment margins during years of acquisition growth due to lower occupancy rates and higher costs at recently acquired operations[130]. Non-GAAP Financial Measures - Consolidated Adjusted EBITDAR is used as a valuation measure for prospective acquisitions, excluding rent-cost of services and start-up operations[174]. - The company emphasizes the importance of Non-GAAP Financial Measures for a comprehensive understanding of operational performance, despite their limitations[162].

Financial Performance - Total revenue for Q1 2025 was $209.8 million, an increase of $52.9 million or 33.7% year-over-year[2] - Net income for Q1 2025 was $7.8 million, an increase of $2.9 million or 58.5% year-over-year[2] - Adjusted net income for Q1 2025 was $9.6 million, an increase of $3.7 million or 61.4% year-over-year[2] - Consolidated Adjusted EBITDA for Q1 2025 was $16.4 million, an increase of $5.1 million or 45.9% year-over-year[2] - Non-GAAP net income for Q1 2025 was $9,624 thousand, an increase from $5,962 thousand in Q1 2024[28] - Adjusted diluted earnings per share increased to $0.27 in Q1 2025, compared to $0.20 in Q1 2024[28] - Income from operations for Q1 2025 was $12,650 million, a significant rise from $8,524 million in Q1 2024, reflecting a 48.5% growth[36] Revenue Segments - Home Health and Hospice Services segment revenue for Q1 2025 was $159.9 million, an increase of $43.4 million or 37.2% year-over-year[2] - Senior Living Services segment revenue for Q1 2025 was $50.0 million, an increase of $9.5 million or 23.6% year-over-year[2] - Home health and hospice services revenue reached $159,870 thousand, accounting for 76.1% of total revenue, up from 74.3% in the previous year[18] - Senior living revenue grew by 23.6% to $49,972 thousand in Q1 2025, compared to $40,425 thousand in Q1 2024[24] - Home Health and Hospice segment revenue for Q1 2025 was $159,443 million, up 39.2% from $114,490 million in Q1 2024[36] - Senior Living segment revenue for Q1 2025 was $49,534 million, an increase of 23.7% compared to $40,015 million in Q1 2024[36] Admissions and Census - Total home health admissions for Q1 2025 were 18,878, an increase of 4,229 or 28.9% year-over-year[2] - Hospice average daily census for Q1 2025 was 3,794, an increase of 832 or 28.1% year-over-year[2] - Total home health admissions increased by 28.9% to 18,878 in Q1 2025, compared to 14,649 in Q1 2024[20] - Total hospice admissions increased by 22.8% to 3,783 in Q1 2025, compared to 3,080 in Q1 2024[20] Financial Metrics - Average Medicare revenue per 60-day completed episode rose by 9.3% to $3,801 in Q1 2025, from $3,477 in Q1 2024[20] - Total Medicare revenue accounted for 48.2% of total revenue in Q1 2025, slightly down from 49.1% in Q1 2024[26] - Average monthly revenue per occupied unit in senior living rose by 11.3% to $5,193 in Q1 2025, from $4,667 in Q1 2024[24] Asset and Expense Overview - The total assets of the company as of March 31, 2025, were $743.6 million, an increase from $679.5 million as of December 31, 2024[13] - Unallocated corporate expenses for Q1 2025 were $13,694 million, compared to $10,161 million in Q1 2024, indicating a 34.9% increase[36] Operational Changes - The company is transitioning memory care units into assisted living communities, with insurance proceeds recorded as a gain on asset disposition in 2024[38] - The company emphasizes the importance of non-GAAP financial measures like Adjusted EBITDA to evaluate operating performance, which may not be comparable with other companies[43]

Core Viewpoint - The Pennant Group, Inc. reported strong operating results for the first quarter of 2025, with significant increases in revenue, net income, and adjusted earnings per share, indicating positive momentum across its home health, hospice, and senior living segments [1][4][5]. Financial Performance - Total revenue for Q1 2025 was $209.8 million, a 33.7% increase from $156.9 million in Q1 2024 [4][19]. - Net income for Q1 2025 was $7.8 million, up 58.5% from $5.1 million in Q1 2024 [4][12]. - Adjusted net income for Q1 2025 was $9.6 million, reflecting a 61.4% increase from $5.9 million in Q1 2024 [4][30]. - GAAP diluted earnings per share were $0.22, compared to $0.16 in the prior year [1][12]. - Adjusted diluted earnings per share were $0.27, up from $0.20 in Q1 2024 [1][30]. Segment Performance - Home Health and Hospice Services segment revenue was $159.9 million, a 37.2% increase from $116.5 million in Q1 2024 [4][19]. - Senior Living Services segment revenue reached $50.0 million, a 23.6% increase from $40.4 million in Q1 2024 [4][24]. - Total home health admissions increased by 28.9% to 18,878, while Medicare home health admissions rose by 19.7% to 7,599 [4][22]. - Hospice average daily census increased by 28.1% to 3,794 [4][22]. - Senior Living average monthly revenue per occupied room increased by 11.3% to $5,193 [4][24]. Operational Highlights - Consolidated Adjusted EBITDAR for Q1 2025 was $28.0 million, a 31.0% increase from $21.4 million in Q1 2024 [4][35]. - Consolidated Adjusted EBITDA for Q1 2025 was $16.4 million, reflecting a 45.9% increase from $11.2 million in Q1 2024 [4][35]. - The company emphasized ongoing investments in leadership development as a key driver of operational success [4][5]. Future Outlook - The company plans to discuss its financial results in a live webcast scheduled for May 7, 2025, indicating a commitment to transparency and investor engagement [1][6].

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, a $25.3 million or 16.8% increase 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% increase [22] - The average CMS-reported star rating was 4.1, significantly exceeding the national average of 3.0, with a potentially preventable hospitalization rate of 8.7%, better than the national average of 9.9% [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 a 13.8% growth over 2024 adjusted earnings [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, and entered into long-term leases for three senior living communities [13][28] - The company reported a strong focus on leadership development, adding 66 leaders to its CEO training program and launching a clinical leadership training program [16] Q&A Session Summary Question: 2025 outlook and same-store revenue growth expectations - Management projected about a 7% increase in same-store revenue for home health, hospice, and senior living [53] Question: Legislative funding environment and Medicaid exposure - Management indicated that approximately 15% of the business is exposed to potential Medicaid impacts, primarily from senior living [62][66] Question: Guidance assumptions for EBITDA margin improvement - Management expects some impact from recent acquisitions but anticipates home health margins to remain in the high 15% to low 16% range [83] Question: Hospice cap issue and operational changes - Management noted that they are focused on adjusting referral patterns to minimize hospice cap impacts, estimating a potential reduction in cap impact for 2025 [93] Question: Senior living segment and M&A opportunities - Management expressed confidence in the senior living segment's revenue quality and ongoing efforts to optimize the resident mix [99]

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]