The Pennant (US:PNTG)2024-02-28 21:13Financial Performance - Total revenue for fiscal year 2023 was $544.9 million, a 15.1% increase from the prior year, and for Q4 was $146.0 million, a 17.1% increase year-over-year[3] - Net income for the full year was $13.4 million, a 101.4% increase from the prior year, and for Q4 was $4.3 million, a 25.2% increase year-over-year[3] - Adjusted diluted earnings per share for the full year was $0.73, and for Q4 was $0.22, reflecting strong earnings performance[1] - Adjusted EBITDA for the full year was $40.7 million, a 29.1% increase from the prior year, and for Q4 was $11.9 million, a 19.8% increase year-over-year[3] - Non-GAAP net income for the year was $21,894, up 28.1% from $17,068 in 2022[34] - Consolidated net income for Q4 2023 was $4,529 million, up from $3,687 million in Q4 2022, representing a 23% increase[40] - Consolidated Adjusted EBITDA for the year ended December 31, 2023, reached $40,716 million, compared to $31,545 million in 2022, reflecting a 29% growth[40] - Consolidated Adjusted EBITDAR for the year ended December 31, 2023, was $79,196 million, up from $67,955 million in 2022, representing a 16% increase[44] Revenue Segments - Home Health and Hospice Services segment revenue for the full year was $394.5 million, a 15.3% increase from the prior year, and for Q4 was $106.9 million, a 17.9% increase year-over-year[3] - Senior Living Services segment revenue for the full year was $150.4 million, a 14.8% increase from the prior year, and for Q4 was $39.1 million, also a 14.8% increase year-over-year[7] - Home health and hospice revenue increased to $394,464, up 15.3% from $342,249 in 2022[26] - Revenue from Home Health and Hospice services for Q4 2023 was $106,891 million, an increase of 18% from $90,651 million in Q4 2022[42] Admissions and Census - Total home health admissions for the full year were 43,508, a 7.6% increase from the prior year, and for Q4 were 11,328, a 12.8% increase year-over-year[3] - Total home health admissions increased to 11,328 in Q4 2023, a 12.8% rise from 10,047 in Q4 2022[24] - Hospice average daily census for the full year was 2,607, a 13.5% increase from the prior year, and for Q4 was 2,796, a 17.8% increase year-over-year[7] Financial Health - The company reported a net debt-to-adjusted EBITDA ratio of 1.44x and a lease-adjusted net debt-to-adjusted EBITDAR ratio of 4.75x, indicating strong financial health[5] - Total assets increased to $539,691 thousand as of December 31, 2023, from $512,119 thousand in 2022, marking a 5.4% growth[17] - Total liabilities rose to $394,176 thousand as of December 31, 2023, compared to $386,462 thousand in 2022, indicating a 2.0% increase[17] - The company reported a total equity of $145,515 thousand as of December 31, 2023, compared to $125,657 thousand in 2022, representing a 15.8% increase[17] Guidance and Future Outlook - Management provided 2024 annual guidance with total revenue expected between $596.8 million and $633.7 million, and adjusted earnings per diluted share anticipated between $0.82 and $0.91[7] Operational Metrics - Average Medicare revenue per 60-day completed episode for home health services was $3,573 in Q4 2023, up 2.2% from $3,497 in Q4 2022[24] - Hospice Medicare revenue per day increased to $189 in Q4 2023, reflecting a 3.8% increase from $182 in Q4 2022[24] - Average monthly revenue per occupied unit in senior living increased to $3,969, up from $3,516 in 2022[28] - Occupancy rate improved to 78.5%, compared to 75.7% in 2022[28] Shareholder Information - The effective tax rate for the year ended December 31, 2023, was 25.8%, slightly higher than 25.6% in 2022[40] - The company incurred share-based compensation expenses of $5,565 million for the year ended December 31, 2023, compared to $3,363 million in 2022, reflecting a 66% increase[40] - The company reported net interest expense of $5,924 million for the year ended December 31, 2023, compared to $3,816 million in 2022, a 55% increase[40] Non-GAAP Measures - EBITDA consists of net income before interest expense, income taxes, and depreciation and amortization[52] - Adjusted EBITDA includes costs for start-up operations, share-based compensation, and non-recurring charges[52] - Consolidated Adjusted EBITDAR is a valuation measure that includes rent-cost of services and costs associated with transitioning operations[52] - The company believes that adjusted financial measures provide important supplemental information for evaluating operating performance[52] - There are material limitations in using non-GAAP measures compared to GAAP measures, as they may not be comparable across the industry[52] - The company encourages investors to refer to periodic filings for more information on the use of non-GAAP measures[52]