Pennant Reports Fourth Quarter and Fiscal Year 2024 Results

Conference Call and Webcast scheduled for tomorrow, February 28, 2025 at 10:00 am MT

EAGLE, Idaho, Feb. 27, 2025 (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 fiscal year and fourth quarter of 2024, reporting GAAP diluted earnings per share of $0.70 and $0.16 for the year ended December 31, 2024 and the fourth quarter, respectively. Pennant also reported adjusted diluted earnings per share of $0.94 for the year and $0.24 for the quarter ⁽¹⁾.

Fourth Quarter Highlights

• Total revenue for the full year was $695.2 million, an increase of $150.3 million or 27.6% over the prior year, and for the fourth quarter was $188.9 million, an increase of $42.9 million or 29.4% over the prior year quarter;

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• Net income for the full year was $22.6 million, an increase of $9.2 million or 68.6% over the prior year and for the fourth quarter was $5.8 million, an increase of $1.4 million or 32.4% over the prior year quarter;
• Adjusted net income for the full year was $30.0 million, an increase of $8.1 million or 36.9% over the prior year and for the fourth quarter was $8.5 million, an increase of $1.9 million or 28.0% over the prior year quarter;
• Segment Adjusted EBITDAR from Operations for the full year was $139.4 million, an increase of $28.5 million or 25.7% over the prior year and for the fourth quarter was $36.7 million, an increase of $6.5 million or 21.6% over the prior year quarter;
• Adjusted EBITDA for the full year was $53.3 million, an increase of $12.6 million or 30.9% over the prior year and for the fourth quarter was $13.8 million, an increase of $1.9 million or 16.1% over the prior year quarter;
• Home Health and Hospice Services segment revenue for the year was $519.5 million, an increase of $125.0 million or 31.7% over the prior year and for the fourth quarter was $142.0 million, an increase of $35.1 million or 32.9% over the prior year quarter;
• Home Health and Hospice Services segment adjusted EBITDAR from operations for the full year 2024 was $87.7 million, an increase of $22.1 million or 33.7% over the prior year and for the fourth quarter was $23.2 million, an increase of $5.0 million or 27.3% over the prior year quarter; and segment adjusted EBITDA from operations for the full year was $80.7 million, an increase of $20.5 million or 34.1% over the prior year and for the fourth quarter was $21.3 million, an increase of $4.7 million or 27.9% over the prior year quarter;
• Total home health admissions for the full year were 59,741, an increase of 16,233 or 37.3% over the prior year and fourth quarter were 15,959, an increase of 4,631 or 40.9% over the prior year quarter; total Medicare home health admissions for the full year were 24,598, an increase of 5,209 or 26.9% over the prior year and for the fourth quarter were 6,443, an increase of 1,491 or 30.1% over the prior year quarter;
• Hospice average daily census for the full year was 3,268, an increase of 661 or 25.4% over prior year and for the fourth quarter was 3,445, an increase of 649 or 23.2% compared to the prior year quarter;
• Senior Living segment revenue for the full year was $175.8 million, an increase of $25.3 million or 16.8% over the prior year and for the fourth quarter was $46.9 million, an increase of $7.8 million or 20.0% over the prior year quarter; average occupancy for the fourth quarter was 78.6%, a decrease of 40 basis points over the prior year quarter, and average monthly revenue per occupied room for the fourth quarter was $4,961 an increase of $393 or 8.6% over the prior year quarter;
• Senior Living segment adjusted EBITDAR from operations for the full year was $51.7 million, an increase of $6.4 million or 14.1% over the prior year and for the fourth quarter was $13.4 million, an increase of $1.5 million or 12.9% over the prior year quarter; and segment adjusted EBITDA from operations for the full year was $16.2 million, an increase of $3.9 million or 31.9% over the prior year and for the fourth quarter was $4.2 million, an increase of $0.8 million or 23.4% over the prior year quarter.

Operating Results

"We are pleased to conclude a remarkable year, with strong performance in revenue, adjusted EBITDA, and adjusted earnings per share,” said Brent Guerisoli, the Company's Chief Executive Officer. "2024 was also a year of transformative expansion, including numerous strategic acquisitions and robust organic growth. With our solid operational foundation, ongoing investments in leadership, and abundant latent potential in our new and existing operations, we anticipate continued positive momentum in 2025 and beyond.”

"We ended the year with record-setting cash flows from operations, which further enhanced our already healthy balance sheet. Based on our strong financial performance, the positive impacts of our credit agreement upsize and our equity offering in the fourth quarter, we are well-poised for future growth with ample dry powder to deploy,” said Lynette Walbom, the Company's Chief Financial Officer.

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-K for the year ended December 31, 2024, which has been filed with the SEC today and can be viewed on the Company's website at www.pennantgroup.com. 

2025 Guidance

Management is providing 2025 annual guidance as follows: total revenue is anticipated to be between $800.0 million and $865.0 million; full year 2025 adjusted earnings per diluted share is anticipated to be between $1.03 and $1.11; and full year 2025 adjusted EBITDA is anticipated to be between $63.1 million and $68.2 million.

Mr. Guerisoli remarked, "Our earnings guidance midpoint of $1.07 represents 13.8% growth on our 2024 adjusted earnings per share and 46.6% growth over 2023 results. This is based on the compelling momentum across both our segments, the capability of our local leaders to drive organic and inorganic growth, and the untapped potential within our existing operations.”

The Company's 2025 annual guidance is based on diluted weighted average shares outstanding of approximately 36 million and a 25.5% effective tax rate. The guidance assumes, among other things, reimbursement rate adjustments and no unannounced acquisitions. It excludes the tax-effected costs at start-up operations, share-based compensation, acquisition-related costs, and gain (loss) on disposition of assets and impairments.

Ms. Walbom also stated, "We believe providing annual adjusted consolidated EBITDA guidance in addition to annual revenue and adjusted earnings per share guidance is helpful to understanding our expectations for our business and operational cash flow. This updated guidance reflects management's expectations based on 2024 performance and current operating conditions.”

Conference Call

A live webcast will be held tomorrow, February 28, 2025 at 10:00 a.m. Mountain time (12:00 p.m. Eastern time) to discuss Pennant's fourth 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 123 home health and hospice agencies and 57 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

[email protected] 

SOURCE: The Pennant Group, Inc.

THE PENNANT GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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THE PENNANT GROUP, INC.

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