NASDAQ$PNTG

The Pennant Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Pennant Group's Q3 2021 results were impacted by a sharp rise in COVID-19 cases and ongoing labor challenges, disrupting the momentum achieved in the second quarter.

Pennant Group's Q3 2021 results were negatively impacted by a sharp rise in COVID-19 cases and ongoing labor challenges. Total adjusted revenue reached $111.9 million, with $79.0 million from Home Health and Hospice and $32.9 million from Senior Living. Net income was $1.2 million, with earnings per diluted share of $0.04 and adjusted earnings per diluted share of $0.11.

  • Total adjusted revenue was $111.9 million.
  • Net income was $1.2 million, with earnings per diluted share of $0.04 and adjusted earnings per diluted share of $0.11.
  • Home Health and Hospice segment revenue was $79.0 million, a 22.7% increase year-over-year.
  • Senior Living segment revenue was $32.9 million, a 3.2% decrease year-over-year.

Headline financials

Total Revenue

$112M

Previous: $98.4M+13.7%
EPS (adj)

$0.11

Previous: $0.18-38.9%
Total Home Health Admissions

9.2K

Previous: 6.8K+36.1%
Hospice Avg Daily Census

2.3K

Previous: 2.2K+7.3%
Senior Living Occupancy

73.7%

Previous: 76.8%-4.0%
Avg Monthly Rev per Unit

$3.17K

No prior period
Capital Expenditures

-$4.14M

Previous: -$7.69M+46.1%
Free Cash Flow

-$2.9M

Previous: -$3.29M+11.8%
Net Income

$1.25M

Previous: $4.41M-71.7%
Operating Income

$1.7M

Previous: $4.48M-62.0%
Gross Profit

-$89.6M

Previous: -$75.2M-19.2%
Cash & Equivalents

$3.71M

Previous: $8.32M-55.4%
Total Assets

$529M

Previous: $480M+10.2%
Stock-Based Comp

$2.57M

Previous: $2.1M+22.2%

Revenue & EPS history

Pennant Group · Revenue · Quarterly

$112M

Q3 2021+13.7%vs Q3 2020
Beat estimate in 10 of 12 quarters(83%)
ActualEstimate

Revenue by segment

Pennant Group · $32.9M total across 1 segment · Q3 2021

  • Senior Living Services
    $32.9M-3.2%

Forward guidance

Management adjusts its full year 2021 guidance to adjusted revenue of $425 million to $430 million and adjusted earnings per share of $0.53 to $0.57.

Tailwinds

  • Hospice agencies continue to drive strong results.
  • Growth in home health referrals indicates healthy underlying demand.
  • COVID-19 cases are trending down, a positive lead indicator of greater admissions, particularly in senior living communities.
  • Senior living communities are offsetting labor pressures with more appropriate rent and care rates.
  • Ability to unlock tremendous inherent upside in operations expands as the pace of acquisitive growth normalizes.

Headwinds

  • Revised guidance reflects the challenging operating environment experienced during the third quarter.
  • Expectation of some lingering impacts in the fourth quarter.
  • COVID-19 presented unprecedented revenue, cost and operational challenges this year.
  • Momentum slowed due to COVID-19 and labor challenges.
  • Impact of headwinds was acutely felt in recently-acquired operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.4%

Avg return

Earnings day

+5.0%

Avg return

5 days after

+5.6%

Avg return

30 days after

40%

12 / 30 earnings

Positive

+27.4%

Q2 2020

Best reaction

-18.7%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+8.4%+0.5%
Q4 2025-7.8%-0.2%-9.8%
Q3 2025-5.8%+0.4%+16.1%
Q1 2025+3.7%+10.1%+10.1%
Q4 2024-10.8%-8.1%-3.6%
Q3 2024+0.6%+6.4%-5.9%
Q2 2024+0.3%+8.2%+18.3%
Q1 2024-2.3%+5.8%+11.3%
Q4 2023+12.4%+13.3%+18.3%
Q3 2023+7.6%+5.7%+13.6%
Q2 2023-1.2%+8.9%+1.3%
Q1 2023-9.4%-14.7%-6.8%
Q4 2022+11.3%+20.7%+8.9%
Q3 2022-11.4%-10.8%-20.0%
Q2 2022+6.8%+12.6%+0.6%
Q1 2022+6.6%+26.4%+21.3%
Q4 2021-7.5%-7.9%+12.9%
Q3 2021-18.7%-6.9%-21.1%
Q2 2021-5.8%-15.0%+0.0%
Q1 2021-2.2%-9.4%-14.2%
Q4 2020-8.3%-7.5%-16.9%
Q3 2020-0.5%+5.3%+21.1%
Q2 2020+27.4%+23.8%+15.9%
Q1 2019+15.1%+51.2%+45.5%
Q1 2020+15.1%+51.2%+45.5%
Q2 2019-3.3%-13.7%-43.7%
Q4 2017-3.3%-13.7%-43.7%
Q4 2019-3.3%-13.7%-43.7%
Q3 2019-10.5%+7.0%+68.4%
Q4 2018-10.5%+7.0%+68.4%
Q3 2018
Q2 2018
Q1 2018

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