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]

Core Insights - The Pennant Group, Inc. reported strong financial results for the fiscal year and fourth quarter of 2024, with total revenue reaching $695.2 million, a 27.6% increase from the previous year [2] - The company achieved GAAP diluted earnings per share of $0.70 for the year and $0.16 for the fourth quarter, alongside adjusted diluted earnings per share of $0.94 for the year and $0.24 for the quarter [1][2] - The management anticipates continued growth in 2025, projecting total revenue between $800 million and $865 million and adjusted earnings per diluted share between $1.03 and $1.11 [6][7] Financial Performance - Total revenue for the full year was $695.2 million, an increase of $150.3 million or 27.6% over the prior year, and for the fourth quarter was $188.9 million, an increase of $42.9 million or 29.4% over the prior year quarter [2] - Net income for the full year was $22.6 million, an increase of $9.2 million or 68.6% over the prior year, and for the fourth quarter was $5.8 million, an increase of $1.4 million or 32.4% over the prior year quarter [2] - Adjusted EBITDA for the full year was $53.3 million, an increase of $12.6 million or 30.9% over the prior year, and for the fourth quarter was $13.8 million, an increase of $1.9 million or 16.1% over the prior year quarter [2] Segment Performance - Home Health and Hospice Services segment revenue for the year was $519.5 million, an increase of $125.0 million or 31.7% over the prior year, and for the fourth quarter was $142.0 million, an increase of $35.1 million or 32.9% over the prior year quarter [2] - Senior Living segment revenue for the full year was $175.8 million, an increase of $25.3 million or 16.8% over the prior year, and for the fourth quarter was $46.9 million, an increase of $7.8 million or 20.0% over the prior year quarter [2] Operational Highlights - Total home health admissions for the full year were 59,741, an increase of 16,233 or 37.3% over the prior year, and for the fourth quarter were 15,959, an increase of 4,631 or 40.9% over the prior year quarter [2] - Hospice average daily census for the full year was 3,268, an increase of 661 or 25.4% over the prior year, and for the fourth quarter was 3,445, an increase of 649 or 23.2% compared to the prior year quarter [2] - Average occupancy for the Senior Living segment for the fourth quarter was 78.6%, a decrease of 40 basis points over the prior year quarter, while average monthly revenue per occupied room for the fourth quarter was $4,961, an increase of $393 or 8.6% over the prior year quarter [2] Future Guidance - The company expects adjusted EBITDA for 2025 to be between $63.1 million and $68.2 million, reflecting management's expectations based on 2024 performance and current operating conditions [6][8] - The earnings guidance midpoint of $1.07 represents a 13.8% growth on 2024 adjusted earnings per share and a 46.6% growth over 2023 results [7]

Core Viewpoint - Analysts project that The Pennant Group, Inc. (PNTG) will report quarterly earnings of $0.25 per share, reflecting a 13.6% increase year over year, with revenues expected to reach $186.81 million, a 28% increase from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter, indicating that analysts have not changed their initial forecasts during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - The consensus estimate for 'Revenue- Total home health and hospice services' is projected at $141.45 million, representing a 32.3% increase from the year-ago quarter [5]. - Analysts estimate 'Revenue- Senior living services' to reach $45.37 million, suggesting a 16.1% year-over-year change [5]. - The average prediction for 'Revenue- Home health and hospice services- Home care and other' is $12.33 million, indicating an 88.1% increase from the prior-year quarter [6]. - The consensus estimate for 'Revenue- Home health and hospice services- Hospice' is $65.33 million, reflecting a 20.1% increase from the year-ago quarter [6]. - Analysts project 'Revenue- Home health and hospice services- Home health' to arrive at $63.79 million, indicating a year-over-year change of 38.9% [7]. Stock Performance - Over the past month, shares of The Pennant Group have returned -3.4%, compared to the Zacks S&P 500 composite's -2.3% change [7]. - Currently, PNTG holds a Zacks Rank 3 (Hold), suggesting that its performance may align with the overall market in the near future [7].

Group 1 - The recent minor pullback in gold prices followed a record high of $2,943, indicating a potential double top pattern [1] - Despite bearish trading activity, today's bullish price action suggests that the negative implications may have lessened, allowing for another attempt to rise [2] - A bull pennant pattern has formed on the daily chart for gold, with a rise above today's high of $2,937 signaling bullish potential [3] Group 2 - A sustained breakout above the bull pennant could confirm a bullish reversal, especially after the failed breakdown last Friday [4] - The situation surrounding a breakout above the $2,943 high indicates potential bearish pressure, as evidenced by a shooting star candlestick pattern from last week [5]

Group 1 - The Pennant Group, Inc. will release its fourth quarter and full year 2024 financial results on February 27, 2025 [1] - A live webcast for discussing the financial results is scheduled for February 28, 2025, at 10:00 a.m. Mountain Time [2] - The webcast will be available for replay until February 27, 2026 [3] Group 2 - The Pennant Group operates independent subsidiaries providing healthcare services, including home health, hospice, and senior living across multiple states [4]

Core Viewpoint - The Pennant Group, Inc. has acquired three senior living facilities in Idaho and Texas, enhancing its national footprint and commitment to quality care for seniors [1][2][3] Group 1: Acquisition Details - The acquisition includes one facility in Idaho under a triple net lease with an option to purchase, and two facilities in Texas under long-term triple net leases [1] - The acquisitions add 188 units to Pennant's operations, which include both assisted living and memory care services [2] Group 2: Strategic Importance - These acquisitions are part of Pennant's strategy to meet the increasing demand for senior living services and to provide personalized, high-quality care [2] - The CEO emphasized the importance of these facilities in expanding operations in key markets and creating vibrant communities for seniors [3] Group 3: Company Overview - The Pennant Group operates through independent subsidiaries providing healthcare services across multiple states, including Arizona, California, and Texas [4]

Core Insights - The Pennant Group, Inc. has acquired three senior living facilities in Idaho and Texas, effective February 1, 2025, enhancing its operational footprint and service offerings [1][2][3] Group 1: Acquisition Details - The acquisition includes one facility in Idaho under a triple net lease with an option to purchase, and two facilities in Texas under long-term triple net leases [1] - The transactions add 188 units to Pennant's operations, which include both assisted living and memory care services [2] Group 2: Strategic Commitment - These acquisitions reflect Pennant's commitment to expanding its national presence and improving the quality of care for senior residents [2][3] - The company aims to meet the increasing demand for senior living services, reinforcing its mission to provide personalized, high-quality care [2] Group 3: Leadership Statements - CEO Brent Guerisoli emphasized that these acquisitions are a significant step in expanding operations in key markets [3] - Andrew Rider, President of Pinnacle Senior Living LLC, highlighted the focus on long-term growth and exceptional care for residents in the newly acquired facilities [3]

EAGLE, Idaho, Jan. 02, 2025 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice, and senior living companies, today announced that it has closed on the purchase of certain Oregon assets of Signature Healthcare at Home (“Signature”). Pennant completed its purchase of Signature’s Idaho and Washington assets on August 1, 2024 and its purchase of certain of Signature’s Oregon assets on January 1, 2025, thus concluding the full tw ...