On November 7, 2023, Pennant Group Inc (PNTG, Financial) released its third-quarter earnings, revealing significant growth across key financial metrics. The company, a parent of affiliated home health, hospice, and senior living companies, reported an 18.5% increase in total revenue, reaching $140.2 million. Adjusted net income saw a substantial rise of 44.4% to $6.0 million, compared to the same period last year.
Financial Performance Overview
Pennant Group Inc (PNTG, Financial) demonstrated robust financial health in the third quarter of 2023, with GAAP diluted earnings per share at $0.15 and adjusted diluted earnings per share at $0.20. The Home Health and Hospice Services segment was a significant contributor, with revenue up by 18.3% to $101.5 million. This segment's adjusted EBITDA also increased by 11.9% to $15.9 million.
The Senior Living Services segment was not far behind, marking an 18.9% revenue increase to $38.7 million. This segment's adjusted EBITDA more than doubled, surging by 109.6% to $3.1 million. The company also reported a healthy increase in home health admissions and hospice average daily census, indicating strong demand for its services.
Balance Sheet and Cash Flow Highlights
Lynette Walbom, Pennant’s Chief Financial Officer, highlighted the company's strong balance sheet and cash flow, noting the generation of $27.9 million in cash through the third quarter. With $3.4 million in cash on hand and $90.8 million available on its revolving credit line, the company maintains a net debt-to-adjusted EBITDA ratio of 1.30x and a lease-adjusted net debt-to-adjusted EBITDAR ratio of 4.74x.
Management's Perspective
CEO Brent Guerisoli expressed satisfaction with the quarter's results, citing "solid census gains, robust top line growth, and improved margin and earnings." He emphasized the company's readiness to capitalize on growth opportunities and an increasingly favorable acquisition environment.
Updated Guidance and Future Outlook
Pennant Group Inc (PNTG, Financial) updated its full-year guidance, anticipating total revenue between $526.0 million and $531.0 million, with adjusted earnings per diluted share expected to be between $0.69 and $0.75. The adjusted EBITDA forecast is set between $39.4 million and $42.6 million, reflecting confidence in the company's operational performance and cash flow prospects.
For more detailed financial information and the full earnings report, investors and interested parties are encouraged to view the company's filings with the SEC, available on Pennant Group Inc's website.
This earnings summary provides a snapshot of Pennant Group Inc (PNTG, Financial)'s strong performance in the third quarter of 2023, with the company showing promising growth and a positive outlook for the remainder of the year and beyond.
Explore the complete 8-K earnings release (here) from Pennant Group Inc for further details.
