Financial Data and Key Metrics Changes - For the full year 2022, the company reported revenue of $473.2 million, an increase of $33.5 million or 7.6% over the prior year, and adjusted EBITDA improved by $5.1 million or 19.5% [4][24] - In Q4 2022, revenue increased by $12.9 million to $124.7 million, with adjusted EBITDA improving by $4.9 million or 98.3% over the prior year [4][24] - The company provided guidance for 2023, anticipating revenue between $503.5 million and $518.4 million, and adjusted EBITDA of $38.4 million to $42.6 million [25][41] Business Line Data and Key Metrics Changes - The home health and hospice segment saw admissions grow by 6.4% for the full year and 2.4% in Q4, with average daily census growing 5.2% year-over-year [16][44] - The senior living segment's same-store revenue improved to $126.8 million, an increase of $12.8 million or 11.2% over the prior year, with occupancy reaching 78.6%, a 330 basis-point improvement [18][19] - Adjusted EBITDA for the senior living segment improved to $6 million, up 282% over the prior year [48] Market Data and Key Metrics Changes - The company reported strong performance in historically strong markets like Arizona and Texas, despite challenges, and expects these markets to rebound [17][64] - The average monthly revenue per occupied room rose to $3,670, an increase of $282 or 8.3% year-over-year [19] Company Strategy and Development Direction - The company is focused on enhancing leadership development, aiming to triple the number of CEOs within three years [12] - There is a robust pipeline of acquisition opportunities in home health, hospice, and senior living, with a disciplined approach to executing growth strategies [21] - The company emphasizes improving clinical outcomes, operating margins, and employee experience as key areas for growth [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth momentum from Q4 2022 carrying into 2023, despite some expected challenges in Q1 [30][60] - The company anticipates a ramp-up in performance in the second half of 2023, with a focus on leadership development and operational efficiencies [26][41] - Management acknowledged the impact of inflation and labor costs but remains confident in the potential for margin improvement [13][72] Other Important Information - The company reported a net debt to adjusted EBITDA ratio of 1.93 times and cash flows from operations of $9 million for the year [54] - The company is committed to creating a life-changing employee experience to address elevated turnover levels and staffing shortages [20][50] Q&A Session Summary Question: What is the outlook for revenue growth and margin improvement in 2023? - Management anticipates stable but solid growth in revenue and incremental margin improvement, with conservative estimates built into the guidance [60][80] Question: Can you discuss the hospice side and the normalization of length of stay? - Management noted a 10% increase in length of stay and expects continued normalization, particularly in key markets like Arizona and Texas [63][64] Question: What are the expectations for rate increases and occupancy trends in senior living? - The company expects a 10% increase in top-line growth for senior living, with 2% to 3% from rate increases and 7% to 8% from occupancy growth [69] Question: How is the company addressing cash flow and capital expenditures? - Management expects capital expenditures to decrease to $8 million to $10 million in 2023, with improved operating cash flow anticipated due to the absence of one-time expenditures [70][71] Question: What is the strategy for margin expansion across segments? - Management indicated that margin expansion is expected across all segments, with a focus on operational efficiencies and reducing employee turnover [72][73]

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, 2022. ☐ 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 _____ ...

The Pennant Group, Inc. (NASDAQ:PNTG) Q3 2022 Results Conference Call November 8, 2022 12:00 PM ET Company Participants Derek Bunker - Chief Investment Officer Brent Guerisoli - CEO John Gochnour - President Jen Freeman - CFO Conference Call Participants Tao Qiu - Stifel Scott Fidel - Stephens Operator Good day, and thank you for standing by. Welcome to The Pennant Group Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Derek Bunker. Please go ahead ...

The Pennant Group, Inc. (NASDAQ:PNTG) Q2 2022 Results Conference Call August 9, 2022 12:00 PM ET Company Participants Derek Bunker - Chief Investment Officer Brent Guerisoli - Chief Executive Officer John Gochnour - President Jen Freeman - Chief Financial Officer Conference Call Participants Jordan Bernstein - Stephens Inc Tao Qiu - Stifel Ben Hendrix - RBC Capital Markets Operator Thank you for standing by, and welcome to the Pennant Group Second Quarter 2022 Earnings Call. All lines have been placed on mu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2022. ☐ 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 __________________________ THE PENNANT GROUP, INC. (Exact Name of Registrant as Specified in Its Char ...

The Pennant Group, Inc. (NASDAQ:PNTG) Q1 2022 Results Conference Call May 10, 2022 12:00 PM ET Company Participants Derek Bunker - Chief Investment Officer Danny Walker - Chief Executive Officer Brent Guerisoli - President Jen Freeman - Chief Financial Officer John Gochnour - Chief Operating Officer Conference Call Participants Ben Hendrix - RBC Capital Markets Jordan Bernstein - Stephens Inc Operator Good day, and thank you for standing by. Welcome to The Pennant Group First Quarter 2022 Earnings Conferenc ...

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q1 2022 vs Q1 2021, including balance sheets, income statements, cash flows, and notes Condensed Consolidated Balance Sheet Highlights | Account | March 31, 2022 ($ thousands) | December 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $81,512 | $75,841 | | **Total Assets** | $507,436 | $530,297 | | **Total Current Liabilities** | $68,605 | $71,635 | | **Total Liabilities** | $389,504 | $416,053 | | **Total Equity** | $117,932 | $114,244 | Condensed Consolidated Statements of Income | Metric | Three Months Ended March 31, 2022 ($ thousands) | Three Months Ended March 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Revenue** | $113,910 | $105,663 | | **Income from operations** | $2,326 | $1,613 | | **Net income** | $1,158 | $913 | | **Diluted EPS** | $0.03 | $0.03 | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2022 ($ thousands) | Three Months Ended March 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(4,071) | $(7,267) | | **Net cash used in investing activities** | $(2,582) | $(3,995) | | **Net cash provided by financing activities** | $5,090 | $16,824 | | **Net (decrease) increase in cash** | $(1,563) | $5,562 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Details accounting policies and financial items, covering business, revenue, segment performance, debt, leases, and contingencies - As of March 31, 2022, the Company's subsidiaries operated **88 home health, hospice and home care agencies** and **52 senior living communities**[21](index=21&type=chunk) Revenue by Payor - Q1 2022 vs Q1 2021 | Payor | Q1 2022 Revenue ($ thousands) | Q1 2021 Revenue ($ thousands) | | :--- | :--- | :--- | | Medicare | $55,078 | $53,739 | | Medicaid | $15,394 | $13,853 | | Managed care | $14,036 | $11,089 | | Private and other | $29,402 | $26,982 | | **Total Revenue** | **$113,910** | **$105,663** | Segment Performance - Q1 2022 vs Q1 2021 | Segment | Q1 2022 Revenue ($ thousands) | Q1 2022 Segment Adjusted EBITDAR ($ thousands) | Q1 2021 Revenue ($ thousands) | Q1 2021 Segment Adjusted EBITDAR ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Home Health and Hospice | $80,475 | $13,948 | $74,607 | $13,791 | | Senior Living Services | $33,435 | $9,432 | $31,056 | $8,834 | - The company has a **$150 million Revolving Credit Facility**, with **$58.5 million outstanding** and **$87.3 million available** as of March 31, 2022[72](index=72&type=chunk)[73](index=73&type=chunk) - One hospice provider is subject to a Medicare payment suspension, with **$4,263 thousand** recorded in accounts receivable, net, as of March 31, 2022[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes Q1 2022 financial performance, covering COVID-19 impacts, business trends, segment performance, and liquidity - The company continues to be impacted by COVID-19, particularly through labor challenges such as increased wage rates and staffing shortages across the healthcare industry[116](index=116&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk) - Under the CARES Act, the company deferred approximately **$7.8 million** in employer-paid social security taxes, with **$4.1 million remaining payable** as of March 31, 2022, and **$26.5 million** of **$28.0 million** in accelerated Medicare payments recouped by CMS[125](index=125&type=chunk)[126](index=126&type=chunk) Key Performance Indicators - Q1 2022 vs Q1 2021 | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Home Health Services** | | | | Total home health admissions | 10,182 | 9,097 | | **Hospice Services** | | | | Total hospice admissions | 2,409 | 2,154 | | Average hospice daily census | 2,232 | 2,308 | | **Senior Living Services** | | | | Occupancy (%) | 72.6% | 72.1% | | Avg. monthly revenue per occupied unit ($) | $3,371 | $3,186 | Reconciliation to Consolidated Adjusted EBITDA | Metric | Three Months Ended March 31, 2022 ($ thousands) | Three Months Ended March 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Consolidated Net income** | $1,158 | $913 | | **Consolidated EBITDA** | $3,332 | $2,825 | | **Consolidated Adjusted EBITDA** | $6,145 | $6,296 | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details market risk exposure, primarily interest rate risk from the Revolving Credit Facility, and the planned LIBOR transition by June 2023 - The company is exposed to interest rate risk through its Revolving Credit Facility, which has variable interest payments based on LIBOR[195](index=195&type=chunk) - The company does not expect to transition away from the LIBOR benchmark for its Credit Facility until June 2023, when certain USD LIBOR settings are scheduled to cease[196](index=196&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effective disclosure controls and procedures and reports no material changes to internal control over financial reporting - Based on an evaluation by management, including the CEO and CFO, the company's disclosure controls and procedures were concluded to be effective as of March 31, 2022[197](index=197&type=chunk) - There were no material changes in the company's internal control over financial reporting during the first fiscal quarter of 2022[198](index=198&type=chunk) Part II. Other Information [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Reports involvement in various claims and lawsuits from ordinary business, not expected to materially affect financial condition or operations - The company is involved in various claims and lawsuits arising in the ordinary course of business, which management does not expect to have a material adverse effect on its financial condition or operations[201](index=201&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors from the 2021 Annual Report, including Medicare payment suspension and expiring COVID-19 emergency waivers - A Uniform Program Integrity Contractor (UPIC) has suspended Medicare payments for one of the company's independent operating subsidiaries, totaling **$4,263 thousand** as of March 31, 2022[203](index=203&type=chunk) - The expiration of COVID-19 Emergency Waivers, particularly those related to telehealth reimbursement and facility safety requirements, could result in increased expenses and materially affect operations, revenues, and profits[205](index=205&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including an Operations Transfer Agreement, corporate governance documents, and CEO/CFO certifications - The Exhibit Index lists key documents filed with the report, including an Operations Transfer Agreement with affiliates of Ensign, corporate governance documents, and CEO/CFO certifications pursuant to the Sarbanes-Oxley Act[207](index=207&type=chunk)

Financial Data and Key Metrics Changes - For the full year ended December 31, 2021, total GAAP revenue was $439.7 million, an increase of $48.7 million or 12.5% over the prior year [36] - GAAP diluted earnings per share were $0.09, while non-GAAP adjusted earnings per diluted share were $0.46 [36] - The company estimated that COVID-19 negatively impacted full-year results by approximately $10 million in lost revenue and $5.4 million in expenses [38] Business Line Data and Key Metrics Changes - In the Home Health and Hospice segment, revenue increased by 4.5% to $77.9 million, while adjusted EBITDA declined by 19.1% to $11.2 million [21] - Total Home Health and Hospice admissions rose by 9% over the prior year quarter, despite a decline in hospice average daily census [21][22] - The Senior Living segment saw its first year-over-year revenue increase since the pandemic began, despite a decrease in average occupancy [25] Market Data and Key Metrics Changes - The average Home Health CMS star rating improved to 4.2, with a 12.7% acute care hospitalization rate, below the national average of 15.4% [23] - The average discharge to community rate was 79%, compared to the national average of 72.8% [24] - The company anticipates a 7% to 10% increase in Home Health and Hospice revenue and a 4% to 6% increase in Senior Living revenue for 2022 [44] Company Strategy and Development Direction - The company is focusing on core opportunities and reinforcing its operating model principles to return to healthy growth patterns [13][45] - A transaction with Ensign to transfer five Senior Living communities is expected to be mildly accretive to earnings and allows for a more concentrated leadership focus [14][15] - The company plans to continue investing in Service Center teams to accelerate operational results [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery in 2022, citing improved leadership, better data systems, and signs of an improved operating environment [11][20] - The company is taking a conservative approach to guidance, factoring in potential ongoing COVID-19 impacts while aiming for stability and predictability in operations [66][75] - Management emphasized the importance of quality clinical care and strong relationships with referral partners as key drivers for future growth [23][24] Other Important Information - The company has drawn $53.5 million on its revolving line of credit and had $5.2 million cash on hand at the end of the quarter [39] - The guidance for 2022 includes revenue expectations of $450 million to $460 million and adjusted earnings per share of $0.60 to $0.72 [41][44] - The company is confident in its ability to manage costs and improve service rates despite increased wage rates and staffing challenges [46] Q&A Session Summary Question: Can you provide context on the performance differences between Home Health and Hospice? - Management noted that the challenges in scaling new agencies were related to referral sources and system implementation, but they are seeing significant improvement [56][58] Question: What assumptions have changed in the guidance? - Management explained that the guidance reflects a conservative approach, incorporating the impact of COVID-19 and the transfer of Senior Living entities to Ensign [66][68] Question: Can you provide visibility into the first quarter forecast? - Management indicated that they are using a conservative approach based on Q4 performance, anticipating some improvement in the second half of the year [72][75] Question: What is the current status of cash flows and Medicare advance payments? - Management confirmed that $3 million remains to be paid back on Medicare advance payments, with expectations for improved cash flows as operations stabilize [84][87] Question: What is the current trend in Senior Living occupancy? - Management reported a 100 basis point improvement in occupancy since mid-December, with confidence in continued growth throughout the year [91][92]

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, 2021. ☐ 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 _____ ...

The Pennant Group, Inc. (NASDAQ:PNTG) Q3 2021 Earnings Conference Call November 9, 2021 12:00 PM ET Company Participants Derek Bunker - Chief Investment Officer Danny Walker - Chief Executive Officer Jen Freeman - Chief Financial Officer Brent Guerisoli - President Conference Call Participants Scott Fidel - Stephens Frank Morgan - RBC Capital Markets Operator Good day, and thank you for standing by. Welcome to the Penn Group Third Quarter 2021 Earnings Conference Call. At this time, all participants are in ...