NASDAQ$PNTG

The Pennant Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Pennant Group reported an increase in revenue and net income for Q4 2022, driven by growth in both home health and hospice services and senior living segments.

Pennant Group reported Q4 2022 results with a revenue of $124.7 million, a net income of $3.5 million, and adjusted diluted earnings per share of $0.18. The company's performance was driven by growth in both its Home Health and Hospice Services and Senior Living Services segments.

  • Total revenue increased by 11.5% compared to the prior year quarter, reaching $124.7 million.
  • Net income increased by $5.6 million over the prior year quarter, reaching $3.5 million.
  • Adjusted EBITDA increased by 98.3% over the prior year quarter, reaching $9.9 million.
  • Home Health and Hospice Services segment revenue increased by 16.4%, reaching $90.7 million.

Headline financials

Total Revenue

$125M

Previous: $112M+11.5%
EPS (adj)

$0.18

Previous: $0.07+157.1%
Total Home Health Admissions

10.0K

Previous: 9.3K+8.2%
Medicare HH Admissions

4.7K

Previous: 4.2K+10.6%
Hospice Avg Daily Census

2.4K

Previous: 2.3K+5.2%
Capital Expenditures

$3.74M

Previous: $2.16M+73.4%
Free Cash Flow

-$7.67M

Previous: -$7.32M-4.9%
Net Income

$3.5M

Previous: -$2.1M+266.7%
Operating Income

$6.38M

Previous: -$2.19M+391.6%
Gross Profit

$16.2M

Previous: $8.17M+98.1%
Cash & Equivalents

$2.08M

Previous: $5.19M-59.9%
Total Assets

$512M

Previous: $530M-3.4%
Stock-Based Comp

$1.01M

Previous: $2.56M-60.4%

Revenue & EPS history

Pennant Group · Revenue · Quarterly

$125M

Q4 2022+11.5%vs Q4 2021
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

Pennant Group · $37.3M total across 1 segment · Q2 2023

  • Senior Living Services
    $37.3M

Forward guidance

Pennant Group provided full year 2023 guidance with annual revenue between $503.5 million and $518.4 million, adjusted EBITDA of $38.4 million to $42.6 million, and adjusted earnings per diluted share of $0.66 to $0.76.

Tailwinds

  • Annual revenue between $503.5 million and $518.4 million.
  • Adjusted EBITDA of $38.4 million to $42.6 million.
  • Adjusted earnings per diluted share of $0.66 to $0.76.
  • Midpoint of $0.71 represents 24.6% growth on 2022 adjusted earnings.
  • Based on diluted weighted average shares outstanding of approximately 30.7 million and a 25.5% effective tax rate.

Headwinds

  • Guidance assumes, among other things, organic growth in current operations.
  • Guidance assumes margin expansion.
  • Guidance assumes anticipated reimbursement rate adjustments.
  • Guidance assumes elevated interest rates.
  • Guidance does not include unannounced acquisitions and excludes costs at start-up operations, share-based compensation, acquisition-related costs, and one-time implementation and unusual items.

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 Q4 2022

Historical avgQ4 2022

-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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