Yahoo Finance

• Adjusted Earnings Per Share (EPS) Q4 2024: $0.24

• Full Year 2024 Adjusted EPS: $0.94

• Full Year 2024 Revenue: $695.2 million, a 27.6% increase over the prior year

• Full Year 2024 Adjusted EBITDA: $53.3 million, a 30.9% increase over the prior year

• Home Health and Hospice Full Year Revenue: $519.5 million, a 31.7% increase over the prior year

• Home Health and Hospice Q4 Revenue: $142 million, a 32.9% increase over the prior year quarter

• Home Health and Hospice Full Year Adjusted EBITDA: $80.7 million, a 34.1% increase over the prior year

• Home Health Admissions Q4: 15,959, a 40.9% increase

• Medicare Admissions Q4: 6,443, a 30.1% increase

• Senior Living Full Year Revenue: $175.8 million, a 16.8% increase over the prior year

• Senior Living Q4 Revenue: $46.9 million, a 20% increase over the prior year quarter

• Senior Living Full Year Adjusted EBITDA: $16.2 million, a 31.9% increase over the prior year

• Cash Flow from Operations 2024: $39.3 million

• Cash on Hand at Year-End 2024: $24.2 million

• 2025 Revenue Guidance: $800 million to $865 million

• 2025 Adjusted EPS Guidance: $1.03 to $1.11

• 2025 Adjusted EBITDA Guidance: $63.1 million to $68.2 million

• Warning! GuruFocus has detected 7 Warning Signs with PNTG.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pennant Group Inc (NASDAQ:PNTG) reported a strong fourth quarter with adjusted earnings per share of $0.24, contributing to a full-year adjusted EPS of $0.94, exceeding their guidance midpoint.

• The company achieved a 27.6% increase in revenue for 2024, reaching $695.2 million, and a 30.9% improvement in adjusted EBITDA to $53.3 million.

• Significant growth in the Home Health and Hospice segment, with a 31.7% increase in full-year revenue and a 34.1% rise in adjusted EBITDA.

• Successful strategic acquisitions, including the $80 million purchase of Signature Healthcare at Home, enhancing their presence in the Pacific Northwest.

• Strong cash generation with $20.6 million in net cash from operating activities and $17.2 million in free cash flow in the fourth quarter, positioning the company well for future growth.

Negative Points

• The company faces potential margin pressure due to the integration of newly acquired operations, which may affect short-term profitability.

• Atypical hospice cap expense of $1.7 million in the fourth quarter impacted margins, with potential continued drag expected in 2025.

• The Medicaid mix, primarily in the Senior Living segment, poses a risk due to potential legislative changes affecting funding.

• The company anticipates a more aggressive earnings ramp in 2025, with lighter performance expected at the beginning of the year due to integration efforts.

• Despite strong growth, the Senior Living segment's occupancy rate only rose by 30 basis points to 78.8%, indicating room for improvement.