The Pennant (US:PNTG)2023-05-06 01:57Financial Data and Key Metrics Changes - The company reported consolidated revenue of $126.5 million for Q1 2023, an increase of $12.6 million or 11% compared to the prior year quarter [26] - Adjusted EBITDA for the quarter was $7.9 million, reflecting an increase of $1.8 million or 28.8% over the prior year quarter [26] - GAAP diluted earnings per share increased by 50% to $0.06, while non-GAAP diluted earnings per share rose by 18.2% to $0.13 [52] Business Line Data and Key Metrics Changes - Home health and hospice revenue for the quarter was $91.1 million, up $10.6 million or 13.2% year-over-year, with adjusted EBITDA of $13.2 million, a 3.7% increase [39] - Senior living segment revenue improved to $34.6 million, an increase of $4.5 million or 15% over the prior year quarter, with adjusted EBITDA rising to $2.3 million, a 45.6% increase [46] Market Data and Key Metrics Changes - Home health admissions increased by 7.1% and Medicare home health admissions rose by 6.8% compared to the prior year quarter [40] - Same-store senior living occupancy reached 79.1%, a 370 basis point improvement year-over-year [47] Company Strategy and Development Direction - The company is focused on five key organizational priorities: leadership development, margin improvement, turnover reduction, growth, and clinical excellence [27] - A commitment to develop 100 local CEOs is underway, with seven local CEOs appointed year-to-date [28] - The company aims to optimize operations and increase margins through careful measurement of utilization and staff productivity [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2023 earnings commitments despite ongoing inflationary pressures and labor challenges [25] - The company anticipates continued growth in home health and hospice segments throughout 2023, driven by strong clinical outcomes and community engagement [42] Other Important Information - The company has made significant progress in reducing employee turnover, achieving double-digit year-over-year improvements, particularly in the senior living business [32] - The company completed one license acquisition in Q1 2023, expanding its continuum of care in Prescott, Arizona [50] Q&A Session Summary Question: What are the company's views on the Medicaid services proposal and its exposure to home care services? - Management indicated a modest exposure to home care, which is a growing segment but represents a small portion of overall home health revenue [61][62]