PNTG - Pennant Reports First Quarter 2024 Results | Benzinga
EAGLE, Idaho, May 06, 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, today announced its operating results for the first quarter of 2024, reporting GAAP diluted earnings per share of $0.16 for the first quarter of 2024. Pennant also reported adjusted diluted earnings per share of $0.20 for the quarter (1).
First Quarter Highlights
- Total revenue for the quarter was $156.9 million, an increase of $30.5 million or 24.1% over the prior year quarter;
- Net income for the first quarter was $4.9 million, an increase of $3.1 million or 165.2% over the prior year quarter;
- Adjusted net income for the first quarter was $6.0 million, an increase of $2.1 million or 55.0% over the prior year quarter;
- Segment Adjusted EBITDAR from Operations for the first quarter was $21.4 million, an increase of $4.3 million or 24.9% over the prior year quarter;
- Adjusted EBITDA for the first quarter was $11.2 million, an increase of $3.3 million or 41.8% over the prior year quarter;
- Home Health and Hospice Services segment revenue for the first quarter was $116.5 million, an increase of $25.4 million or 27.9% over the prior year quarter;
- Home Health and Hospice Services segment adjusted EBITDAR from operations for the first quarter was $19.6 million, an increase of $5.1 million or 35.7% over the prior year quarter; and segment adjusted EBITDA from operations the first quarter was $17.9 million, an increase of $4.7 million or 35.7% over the prior year quarter;
- Total home health admissions for the first quarter were 14,649, an increase of 3,739 or 34.3% over the prior year quarter; total Medicare home health admissions for the first quarter were 6,346, an increase of 1,398 or 28.3% over the prior year quarter;
- Hospice average daily census for the first quarter was 2,962, an increase of 523 or 21.4% compared to the prior year quarter;
- Senior Living Services segment revenue for the first quarter was $40.4 million, an increase of $5.0 million or 14.2% over the prior year quarter; average occupancy for the first quarter was 78.5%, an increase of 40 basis points over the prior year quarter, and average monthly revenue per occupied room for the first quarter was $4,667 an increase of $367 or 8.5% over the prior year quarter;
- Same store(2) Senior Living Services segment revenue for the first quarter was $38.9 million, an increase of $3.6 million or 10.2% over the prior year quarter; same store senior living average occupancy for the first quarter was 79.7%, an increase of 60 basis points over the prior year quarter, and average monthly revenue per occupied room for the first quarter was $4,643 an increase of $349 or 8.1% over the prior year quarter;
- Senior Living segment adjusted EBITDAR from operations for the first quarter was $12.0 million, an increase of $1.8 million or 17.3% over the prior year quarter; and segment adjusted EBITDA from Operations for the first quarter was $3.5 million, an increase of $1.3 million or 55.6% over the prior year quarter.
(1) See "Reconciliation of GAAP to Non-GAAP Financial Information."
(2) Same store senior living results is defined as all senior living communities excluding affiliate memory care units in transition, and new senior living operations acquired in 2023 or 2024.
Operating Results
"We are pleased to report a strong first quarter and great start to the year," said Brent Guerisoli, Pennant's Chief Executive Officer. "We continue to experience accelerated growth and are encouraged to see our focus on margin result in solid bottom-line improvement. Our home health and hospice segment achieved record setting performance in both revenue and earnings and our senior living segment reached an all-time high in revenue and steady improvement in earnings. Our on-going investment in leadership is building a foundation of strength across the organization and the Company's first quarter performance positions us to deliver on 2024 expectations."
A discussion of the Company's use of Non-GAAP financial measures is set forth below. A reconciliation of net income to EBITDA, adjusted EBITDAR and adjusted EBITDA, as well as a reconciliation of GAAP earnings per share, net income to adjusted net earnings per share and adjusted net income, appear in the financial data portion of this release. More complete information is contained in the Company's Form 10-Q for the three months ended March 31, 2024, which has been filed with the SEC today and can be viewed on the Company's website at www.pennantgroup.com.
Conference Call
A live webcast will be held tomorrow, May 7, 2024 at 10:00 a.m. Mountain time (12:00 p.m. Eastern time) to discuss Pennant's first quarter 2024 financial results. To listen to the webcast, or to view any financial or statistical information required by SEC Regulation G, please visit the Investors Relations section of Pennant's website at https://investor.pennantgroup.com. The webcast will be recorded and will be available for replay via the website.
About Pennant
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 that has its own management, employees and assets. References herein to the consolidated "company" and "its" assets and activities, as well as the use of the terms "we," "us," "its" and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity. More information about Pennant is available at www.pennantgroup.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains, and the related conference call and webcast will include, forward-looking statements that are based on management's current expectations, assumptions and beliefs about its business, financial performance, operating results, the industry in which it operates and other future events. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding growth prospects, future operating and financial performance, and acquisition activities. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to materially and adversely differ from those expressed in any forward-looking statement.
These risks and uncertainties relate to the company's business, its industry and its common stock and include: reduced prices and reimbursement rates for its services; its ability to acquire, develop, manage or improve operations, its ability to manage its increasing borrowing costs as it incurs additional indebtedness to fund the acquisition and development of operations; its ability to access capital on a cost-effective basis to continue to successfully implement its growth strategy; its operating margins and profitability could suffer if it is unable to grow and manage effectively its increasing number of operations; competition from other companies in the acquisition, development and operation of facilities; its ability to defend claims and lawsuits, including professional liability claims alleging that our services resulted in personal injury, and other regulatory-related claims; and the application of existing or proposed government regulations, or the adoption of new laws and regulations, that could limit its business operations, require it to incur significant expenditures or limit its ability to relocate its operations if necessary. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the company's periodic filings with the Securities and Exchange Commission, including its Form 10-Q and/or 10-K, for a more complete discussion of the risks and other factors that could affect Pennant's business, prospects and any forward-looking statements. Except as required by the federal securities laws, Pennant does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
Contact Information
Investor Relations
The Pennant Group, Inc.
(208) 506-6100
ir@pennantgroup.com
SOURCE: The Pennant Group, Inc.
| THE PENNANT GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except for per-share amounts) |
| Three Months Ended March 31, |
| 2024 |
| 2023 |
| Revenue |
| $ |
| 156,915 |
| $ |
| 126,464 |
| Expense: |
| Cost of services |
| 125,995 |
| 102,602 |
| Rent—cost of services |
| 10,384 |
| 9,597 |
| General and administrative expense |
| 11,436 |
| 8,705 |
| Depreciation and amortization |
| 1,331 |
| 1,280 |
| Gain on disposition of property and equipment, net |
| (755 |
| ) |
| — |
| Total expenses |
| 148,391 |
| 122,184 |
| Income from operations |
| 8,524 |
| 4,280 |
| Other income (expense), net: |
| Other income |
| 85 |
| 30 |
| Interest expense, net |
| (1,792 |
| ) |
| (1,406 |
| ) |
| Other expense, net |
| (1,707 |
| ) |
| (1,376 |
| ) |
| Income before provision for income taxes |
| 6,817 |
| 2,904 |
| Provision for income taxes |
| 1,759 |
| 907 |
| Net income |
| 5,058 |
| 1,997 |
| Less: Net income attributable to noncontrolling interest |
| 152 |
| 147 |
| Net income attributable to The Pennant Group, Inc. |
| $ |
| 4,906 |
| $ |
| 1,850 |
| Earnings per share: |
| Basic |
| $ |
| 0.16 |
| $ |
| 0.06 |
| Diluted |
| $ |
| 0.16 |
| $ |
| 0.06 |
| Weighted average common shares outstanding: |
| Basic |
| 30,046 |
| 29,751 |
| Diluted |
| 30,403 |
| 30,147 |
| THE PENNANT GROUP, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value) |
| March 31, 2024 |
| December 31, 2023 |
| Assets |
| Current assets: |
| Cash |
| $ |
| 2,722 |
| $ |
| 6,059 |
| Accounts receivable—less allowance for doubtful accounts of $197 and $259, respectively |
| 71,354 |
| 61,116 |
| Prepaid expenses and other current assets |
| 12,987 |
| 12,902 |
| Total current assets |
| 87,063 |
| 80,077 |
| Property and equipment, net |
| 40,592 |
| 28,598 |
| Right-of-use assets |
| 258,775 |
| 262,923 |
| Restricted and other assets |
| 9,651 |
| 9,337 |
| Goodwill |
| 107,220 |
| 91,014 |
| Other indefinite-lived intangibles |
| 74,942 |
| 67,742 |
| Total assets |
| $ |
| 578,243 |
| $ |
| 539,691 |
| Liabilities and equity |
| Current liabilities: |
| Accounts payable |
| $ |
| 13,060 |
| $ |
| 10,841 |
| Accrued wages and related liabilities |
| 25,254 |
| 28,256 |
| Operating lease liabilities—current |
| 17,378 |
| 17,122 |
| Other accrued liabilities |
| 19,543 |
| 15,330 |
| Total current liabilities |
| 75,235 |
| 71,549 |
| Long-term operating lease liabilities—less current portion |
| 244,180 |
| 248,596 |
| Deferred tax liabilities, net |
| 2,140 |
| 1,855 |
| Other long-term liabilities |
| 9,162 |
| 8,262 |
| Long-term debt, net |
| 83,294 |
| 63,914 |
| Total liabilities |
| 414,011 |
| 394,176 |
| Commitments and contingencies |
| Equity: |
| Common stock, $0.001 par value; 100,000 shares authorized; 30,371 and 30,036 shares issued and outstanding, respectively, at March 31, 2024; and 30,297 and 29,948 shares issued and outstanding, respectively, at December 31, 2023 |
| 30 |
| 29 |
| Additional paid-in capital |
| 107,644 |
| 105,712 |
| Retained earnings |
| 39,569 |
| 34,663 |
| Treasury stock, at cost, 3 shares at March 31, 2024 and December 31, 2023 |
| (65 |
| ) |
| (65 |
| ) |
| Total The Pennant Group, Inc. stockholders' equity |
| 147,178 |
| 140,339 |
| Noncontrolling interest |
| 17,054 |
| 5,176 |
| Total equity |
| 164,232 |
| 145,515 |
| Total liabilities and equity |
| $ |
| 578,243 |
| $ |
| 539,691 |
| THE PENNANT GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
| The following table presents selected data from our condensed consolidated statements of cash flows for the periods presented: |
| Three Months Ended March 31, |
| 2024 |
| 2023 |
| Net cash provided by operating activities |