The Pennant (PNTG) - 2024 Q4 - Annual Results

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]