Resistance at 2,342 The recent minor swing high of 2,342 defines the top resistance level for the current seven-day consolidation pattern. Therefore, a breakout above the level would provide more confidence than a move above a boundary line. Further, the 50-Day MA (orange) is currently acting as resistance at 2,344. It should be considered along with the 2,342 high as a breakout above both price levels is needed for a bullish signal. Given where the price of gold is sitting relative to the apex of the symme ...

Pennant utilizes a unique locally-driven operating model and has a strong track record of providing best-in-class home health and hospice care. In addition to operational leadership, Pennant will support HHCAH through its world-class service center, which employs over 300 dedicated individuals. To enhance the collaboration with Hartford HealthCare, Pennant announced plans to establish a service center in Connecticut, creating a base of support for New England operations. The service center will provide fina ...

EAGLE, Idaho, June 18, 2024 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, announced today that it has entered into a management and consulting services agreement to provide operational support to Hartford HealthCare at Home (HHCAH), the home health and hospice business of Hartford HealthCare. Hartford HealthCare is the highest ranking in quality, comprehensive non-profit integrated health sy ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

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)