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- **Revenue Surges 26.8% YoY** to $229M, driven by 54-location Southeast acquisition.
- **Guidance Raised** to $911M-$948M, with 80.9% senior living occupancy.
- **Amedisys Integration** targeting 12.5% margin post 9-12 quarter transition.
- **Regulatory Risk** looms as CMS delays home health rule clarity.
- **23.2% Senior Living EBITDA Growth** on 7.4% rate hikes.


**【CEO Summary】**
- Q3 revenue reached $229 million, up 26.8% YoY, driven by acquisitions and organic growth.
- Acquired United Amedisys in Southeast, adding 54 locations with $189M trailing 12-month revenue.
- Raised 2025 guidance to $911.4M-$948.6M, with EBITDA of $70.9M-$73.8M and EPS of $1.14-$1.18.
- Emphasized local leadership model, 90-day integration plans, and 4x-7x EBITDA multiples for acquisitions.

**【CFO Financial Commentary】**
- GAAP net income $22.9M, Non-GAAP EPS $0.30 (up 15.4% YoY).
- Senior living occupancy hit 80.9% (record), with 7.4% rate growth.
- Amended credit facility to manage balance sheet amid $100M term loan draw.
- 2025 capex $30.2M, with 60% of senior living deals including real estate.

**【Q&A Highlights】**
- **Amedisys Integration**: 12.5% margin target, 9-12 quarter transition, JV with University of Tennessee for clinical innovation.
- **Senior Living**: 80.9% occupancy, 7.4% rate growth, 23.2% EBITDA increase.
- **Regulatory Risk**: Concerns over CMS home health rule delay, potential 2026 impact on reimbursement.
- **M&A Pipeline**: 4x-7x EBITDA multiples, focus on Southeast expansion.
- **Hospice Performance**: 97% quality score, 16.6% admissions growth.


The Pennant Group, Inc. (PNTG) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue up 30.1% YoY to $219.5M, driven by home health/hospice (+32.5%) and senior living (+23.1%).
- **Strategic Acquisition**: $113-147M deal for 38-50 agencies in Southeast, targeting Q4 close.
- **Guidance Update**: FY2025 adj. EPS raised to $1.09-1.15 (midpoint +19.1% YoY).
- **Home Health Risk**: CMS proposed 6.4% cut would impact 18% of revenue, but diversified business (hospice +24.3%, senior living +23.1%) provides resilience.
- **Operational Strength**: 80%+ senior living occupancy, 8.3% RevPOR growth, 45% revenue growth at Signature Healthcare.

**【CEO Opening Remarks】**
- Q2 2025 revenue: $219.5M (+30.1% YoY), Adjusted EBITDA: $16.4M (+24.5% YoY). 
- Home health/hospice segment revenue: $166M (+32.5% YoY), Senior Living: $53.5M (+23.1% YoY).
- Announced acquisition of 38-50 agencies from UnitedHealth/Amedisys in TN, GA, AL; purchase price $113-147M (4-8x EBITDA multiple).
- Raised FY2025 guidance: Revenue $852.8-887.6M, Adj. EPS $1.09-1.15 (midpoint +19.1% YoY).

**【CFO Financial Commentary】**
- GAAP revenue: $219.5M, GAAP EPS: $0.20, Adj. EPS: $0.27.
- Q2 cash flow from ops: $34.6M, $14.4M cash on hand, 0.38x net debt/EBITDA.
- FY2025 guidance includes $113-147M for United/Amedisys deal but no earnings impact until close.
- Key metrics: 96% occupancy at Shores of Sheboygan, 84% revenue growth at Safe Harbor Home Care.

**【Q&A Highlights】**
1. **United/Amedisys Deal**: 
   - 2/3 revenue from home health, 1/3 hospice; 50%+ in TN.
   - Ensign's success in TN validates market potential.
   - Transition services agreement in place; expect Q4 close.
2. **Home Health Rule Impact**: 
   - CMS proposed 6.4% cut would impact 18% of revenue.
   - Advocacy efforts underway; 3 prior CMS rules were softened.
   - Diversified business (hospice +24.3% YoY, senior living +23.1% YoY) provides resilience.
3. **Senior Living Sustainability**: 
   - RevPOR growth: 8.3% YoY in Q2, targeting mid-single digits long-term.
   - Occupancy: 80%+ with 90bps sequential improvement.
   - Signature Healthcare at Home transition driving 45% revenue growth.
4. **M&A Strategy**: 
   - Focus on 3 criteria: leader readiness, operational strength, returns.
   - Home health disruption could create M&A opportunities.
   - Parallel integration of new deals with existing turnaround efforts.


The Pennant Group, Inc. (PNTG)-7 Aug 25-2025 Q2 Earnings call transcript

- **Record Q1 Growth**: 33.7% YoY revenue to $209.8 million, EBITDA up 45.9% to $16.4 million.
- **Signature Success**: 100% employee retention, 52 new C-level leaders, and 4 senior living acquisitions.
- **Guidance Upped**: Targeting top end of $800-865 million revenue range.
- **Strong Margins**: Home Health EBITDA margin 15.8%, Senior Living 9.9%.
- **Labor Stability**: +200 nurses hired Q1, 3.2% labor inflation in core business.


**【CEO Summary Section】**
- Q1 2025 revenue reached $209.8 million, a 33.7% YoY increase, driven by strong organic growth and acquisitions.
- Adjusted EBITDA rose to $16.4 million, up 45.9% YoY, with key initiatives: leadership development, clinical excellence, employee experience, margin improvement, and growth.
- Signature Healthcare transaction integration ahead of schedule, with 52 local leaders earning C-level designations since January 2024.
- Guidance revised to upper end of 2025 range: revenue $800-865 million, EBITDA $63.1-68.2 million, EPS $1.03-1.11.

**【COO Operational Highlights】**
- **Home Health & Hospice**: 
  - Revenue $159.9 million (+37.2% YoY), EBITDA $25.1 million (+40.6% YoY).
  - Hospice admissions 3,783 (+22.8%), same-store ADC +10.4%.
  - Medicare revenue per episode +9.3%, CMS star rating 4.1 vs. industry 3.0.
- **Senior Living**: 
  - Revenue $50 million (+23.6% YoY), EBITDA $4.9 million (+40.8% YoY).
  - RevPOR +11.3%, occupancy stable at 85%.
- Acquired 4 new senior living properties in Q1, including Red Mountain (AZ) for $12.8 million.

**【CFO Financial Review】**
- Q1 cash flow: -$21.2 million (vs. +$0.6 million YoY), due to $52.9 million revenue growth and $19.3 million in accretive acquisitions.
- Net debt/EBITDA 0.83x, with $193.3 million available on revolver.
- 2025 cash flow forecast: $35-45 million.
- 2026 Hospice rate increase modeled at 2.42%, consistent with guidance.

**【Q&A Key Takeaways】**
- **Home Health Growth**: Seasonal Q4 decline reversed in Q1, with same-store admissions +12.2% YoY.
- **Signature Integration**: 100% employee retention, ahead of schedule with Homecare Homebase transition.
- **Optum Transaction**: High-quality assets in new markets, contingent on antitrust approval.
- **Labor Market**: Net +200 nurses hired Q1, 3.2% labor inflation in home health vs. 4.8% senior living.
- **Senior Living Pricing**: Target 5-7% RevPOR growth, balancing occupancy and rate increases.


The Pennant Group, Inc. (PNTG)-7 May 25-2025 Q1 Earnings call transcript

- **2024 Record Growth**: 27.6% revenue growth to $695M, 30.9% EBITDA expansion to $53.3M. Q4 EPS of $0.24 exceeded guidance.
- **Strategic Acquisitions**: $80M Signature Healthcare, 3 senior living acquisitions, and John Muir JV drive 2025 pipeline. 2025 revenue guidance $800M-$865M (+13.8% EPS growth).
- **Operational Excellence**: 83% home health agencies with 4+ stars, 14.4% same-store home health admissions growth. Senior living revenue per room +8.6%.
- **Cash Position**: $245.8M liquidity, 0x net debt. 2025 free cash flow expected to rise with ADC ramp and rate improvements.
- **Risk Management**: Minimal Medicaid exposure (13%), proactive approach to hospice cap reduction in CA.

**【CEO Summary Section】**
- **Record-breaking 2024 performance**: Q4 adjusted EPS of $0.24, full-year EPS of $0.94 (vs. guidance midpoint of $0.93). Full-year revenue grew 27.6% to $695.2M, with adjusted EBITDA up 30.9% to $53.3M.
- **Strategic acquisitions**: Completed $80M purchase of Signature Healthcare at Home, John Muir Health JV, and 3 senior living acquisitions in Wisconsin. Expanded capital via credit facility upsize and equity offering.
- **Leadership development**: Added 66 leaders to CEO training program, 45 local leaders earned C-level designations (18 as CEOs). Local leaders drove 14.4% same-store home health admissions growth.
- **2025 guidance**: Revenue $800M-$865M, EPS $1.03-$1.11 (13.8% growth vs. 2024). Home health/hospice ADC ramp and senior living occupancy/revenue improvements key drivers.

**【Operations Update】**
**Home Health & Hospice**:
- Full-year revenue +31.7% to $519.5M, EBITDA +34.1% to $80.7M. Medicare admissions +30.1%, revenue per episode +9.9%. Same-store home health admissions +14.4%, hospice ADC +10.4%.
- Clinical excellence: 83% agencies with 4+ stars (national avg 3.0), preventable hospitalization rate 8.7% (vs. 9.9% national).
- Margin improvement: EBITDA margin +10bps to 15.7%, excluding $1.7M hospice cap expense, margin would have been 16.2%.

**Senior Living**:
- Full-year revenue +16.8% to $175.8M, EBITDA +31.9% to $16.2M. Occupancy 78.8%, revenue per occupied room +8.6% to $4,961.
- Acquisitions: 3 Wisconsin properties (125 units), Signature Oregon assets, and 2 Texas properties (120 units). Focus on fee-for-service model and continuum of care.

**【Financial Summary】**
- **Cash flow**: Q4 operating cash flow $20.6M, free cash flow $17.2M. Year-end cash + revolver availability $245.8M, 0x net debt/EBITDA.
- **2025 outlook**: Adjusted EBITDA $63.1M-$68.2M, EPS growth driven by ADC ramp, rate improvements, and margin expansion. Capital expenditures similar to 2024 levels.

**【Key Acquisitions】**
- **Signature Healthcare at Home**: $80M purchase of Washington/Idaho (Q4 2024) and Oregon (Jan 2025) operations. Transitioning well with C-level leader model.
- **Texas senior living**: 120-unit Kirbyville and Tomball properties under triple net leases, aligning with home health/hospice agencies.
- **Boise, ID**: 68-unit property with option to purchase, leveraging local leader expertise.

**【Legislative & Risk Outlook】**
- **Medicaid exposure**: 13% of revenue (senior living), 15% total including home care. Focus on fraud/waste reduction vs. service cuts. Hospice cap expense in CA ($1.7M Q4 2024) expected to decline in 2025 through earlier patient referrals.
- **CMS programs**: Benefiting from home health value-based purchasing (83% agencies with 4+ stars).

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