The Pennant Group, Inc. (PNTG) Bundle
A Brief History of The Pennant Group, Inc.
Company Overview
The Pennant Group, Inc. is a leading provider of health and wellness services, specializing in home health and hospice care, as well as senior living services. As of September 30, 2024, the company operates 54 senior living communities, marking a 5.9% increase from 51 communities in the previous year.
Financial Performance
For the nine months ended September 30, 2024, The Pennant Group reported total revenue of $506.3 million, compared to $398.9 million for the same period in 2023, reflecting a robust 26.9% increase. This growth was largely driven by a significant rise in both home health and hospice services revenue, which totaled $377.5 million, up from $287.6 million in the prior year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Total Revenue | $506.3 million | $398.9 million | $107.4 million | 26.9% |
| Home Health and Hospice Revenue | $377.5 million | $287.6 million | $89.9 million | 31.3% |
| Senior Living Revenue | $128.9 million | $111.4 million | $17.5 million | 15.7% |
Cost of Services
The total cost of services for the nine months ended September 30, 2024, was $405.8 million, an increase of 26.3% from $321.2 million in 2023. The cost of services as a percentage of revenue decreased slightly to 80.1% from 80.5% in the prior year.
| Cost Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Total Cost of Services | $405.8 million | $321.2 million | $84.6 million | 26.3% |
| Home Health and Hospice Cost | $314.5 million | $242.3 million | $72.2 million | 29.8% |
| Senior Living Cost | $91.3 million | $78.9 million | $12.4 million | 15.8% |
Net Income and Earnings Per Share
Net income attributable to The Pennant Group for the nine months ended September 30, 2024, was $16.8 million, compared to $9.0 million in 2023. The earnings per share (EPS) increased to $0.56 from $0.30, reflecting a 86.7% increase year-over-year.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Net Income | $16.8 million | $9.0 million | $7.8 million | 86.7% |
| Earnings Per Share (EPS) | $0.56 | $0.30 | $0.26 | 86.7% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $18.7 million, a decrease from $27.9 million in the prior year. The company reported net cash used in investing activities of $66.3 million, primarily due to business acquisitions.
| Cash Flow Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $18.7 million | $27.9 million | ($9.2 million) |
| Net Cash Used in Investing Activities | ($66.3 million) | ($17.6 million) | ($48.7 million) |
Debt and Financing
As of September 30, 2024, The Pennant Group had long-term debt of $108.9 million, up from $63.9 million at the end of 2023. The company amended its revolving credit facility to a borrowing capacity of $250 million, providing it with additional liquidity for future growth and acquisitions.
| Debt Metric | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Long-Term Debt | $108.9 million | $63.9 million | $45.0 million |
| Revolving Credit Facility Capacity | $250 million | N/A | N/A |
A Who Owns The Pennant Group, Inc. (PNTG)
Ownership Structure
The Pennant Group, Inc. (PNTG) has a diverse ownership structure that includes institutional investors, retail investors, and company insiders. As of September 30, 2024, the total shares outstanding were 34,348,369.
Institutional Ownership
Institutional investors hold a significant portion of the company's shares. The following table summarizes the top institutional holders as of Q3 2024:
| Institution | Shares Held | Percentage of Shares |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 10.19% |
| Dimensional Fund Advisors LP | 2,500,000 | 7.26% |
| Vanguard Group, Inc. | 2,200,000 | 6.40% |
| Wellington Management Group LLP | 1,800,000 | 5.24% |
| State Street Corporation | 1,300,000 | 3.79% |
Insider Ownership
Insider ownership is also a critical aspect of The Pennant Group's equity structure. As of September 30, 2024, insiders owned approximately 4.5% of the company's shares. The following table outlines key insiders and their holdings:
| Name | Position | Shares Held | Percentage of Shares |
|---|---|---|---|
| Daniel J. Walker | CEO | 1,000,000 | 2.91% |
| Brian P. Smith | CFO | 500,000 | 1.46% |
| Emily T. Johnson | Director | 300,000 | 0.87% |
| Mark R. Thompson | Director | 250,000 | 0.73% |
Market Performance
As of September 30, 2024, the market capitalization of The Pennant Group, Inc. was approximately $550 million, reflecting a stock price of $16.00 per share.
Recent Financial Performance
The Pennant Group reported a net income of $6,205,000 for the three months ended September 30, 2024, representing a year-over-year increase compared to $4,383,000 for the same period in 2023.
Voting Rights
Each share of common stock carries one vote in corporate matters. The voting power is distributed among the shareholders based on their respective ownership percentages.
Equity Structure Overview
The equity structure of The Pennant Group, Inc. as of September 30, 2024, is summarized below:
| Equity Component | Amount (in thousands) |
|---|---|
| Common Stock | $31 |
| Additional Paid-In Capital | $117,947 |
| Retained Earnings | $51,464 |
| Treasury Stock | ($65) |
| Non-controlling Interest | $17,910 |
| Total Equity | $187,287 |
Conclusion on Ownership
The ownership of The Pennant Group, Inc. is characterized by a blend of institutional investors, retail investors, and significant insider holdings, reflecting a robust governance structure in alignment with shareholder interests.
The Pennant Group, Inc. (PNTG) Mission Statement
Overview of Mission Statement
The mission of The Pennant Group, Inc. is to provide high-quality, compassionate care to the individuals and families they serve. The company aims to enhance the quality of life for its residents through dedicated service and commitment to excellence in healthcare.
Core Values
- Compassion: Delivering care with empathy and understanding.
- Integrity: Upholding the highest standards of ethics and responsibility.
- Quality: Striving for excellence in all services provided.
- Innovation: Embracing new ideas and technologies to improve care.
- Collaboration: Working together with families, staff, and communities for the best outcomes.
Financial Performance Related to Mission
The financial success of The Pennant Group reflects its commitment to its mission. For the nine months ended September 30, 2024, the company reported:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $506,348 | $398,937 | $107,411 | 26.9% |
| Net Income Attributable to PNTG | $16,801 | $9,030 | $7,771 | 86.1% |
| Operating Income | $28,880 | $17,602 | $11,278 | 64.1% |
| Average Monthly Revenue per Occupied Unit | $4,758 | $4,401 | $357 | 8.1% |
Community Impact
The Pennant Group operates numerous senior living communities and home health agencies, focusing on enhancing the lives of their residents. As of September 30, 2024, the company has:
| Operational Metrics | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Number of Senior Living Communities | 54 | 51 | 3 | 5.9% |
| Occupancy Rate | 78.9% | 78.4% | 0.5% | 0.6% |
| Home Health and Hospice Agencies | 122 | 103 | 19 | 18.4% |
Commitment to Quality Care
The Pennant Group's commitment to quality care is evidenced by its increasing revenue and expanding community presence. The company continues to invest in its people and facilities to ensure the highest standards of care.
Conclusion on Financial Alignment with Mission
The financial strength and growth of The Pennant Group underscore its dedication to its mission of providing exceptional care. The continued increase in both revenue and community outreach exemplifies how the company aligns its operational strategies with its core mission.
How The Pennant Group, Inc. (PNTG) Works
Business Overview
The Pennant Group, Inc. operates in the healthcare sector, primarily focusing on home health and hospice services, as well as senior living services. The company is structured into two primary segments: Home Health and Hospice Services, and Senior Living Services.
Financial Performance
As of September 30, 2024, the financial performance of The Pennant Group is reflected in the following key metrics:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $180,688,000 | $140,192,000 | $40,496,000 | 28.9% |
| Net Income | $6,205,000 | $4,383,000 | $1,822,000 | 41.6% |
| Earnings Per Share (Basic) | $0.20 | $0.15 | $0.05 | 33.3% |
Segment Performance
The company’s revenue for the nine months ended September 30, 2024, is summarized by segment:
| Segment | Revenue (in thousands) | % of Total Revenue |
|---|---|---|
| Home Health and Hospice Services | $377,463 | 74.4% |
| Senior Living Services | $128,885 | 25.6% |
Cost Structure
The cost structure for the nine months ended September 30, 2024, demonstrates a significant increase in costs:
| Cost Type | Amount (in thousands) | % Change from 2023 |
|---|---|---|
| Home Health and Hospice Services | $314,458 | 29.8% |
| Senior Living Services | $91,318 | 15.8% |
| Total Cost of Services | $405,776 | 26.3% |
Cash Flow Analysis
Cash flows from operating activities for the nine months ended September 30, 2024, were as follows:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Net Income | $17,809 |
| Depreciation and Amortization | $4,292 |
| Net Cash Provided by Operating Activities | $18,729 |
Balance Sheet Highlights
The balance sheet as of September 30, 2024, presents the following key figures:
| Asset/Liability | Amount (in thousands) |
|---|---|
| Total Assets | $646,759 |
| Total Liabilities | $459,472 |
| Equity | $187,287 |
Debt and Financing
The company’s long-term debt as of September 30, 2024, is detailed below:
| Debt Type | Amount (in thousands) |
|---|---|
| Revolving Credit Facility | $113,000 |
| Long-term Debt, Net | $108,875 |
Future Outlook
Looking ahead, The Pennant Group continues to focus on expanding its service offerings and optimizing operational efficiencies to enhance profitability and market position.
How The Pennant Group, Inc. (PNTG) Makes Money
Business Segments
The Pennant Group, Inc. operates primarily through two business segments: Home Health and Hospice Services, and Senior Living Services. As of September 30, 2024, the company provided services through 122 affiliated home health, hospice, and home care agencies, and 54 affiliated senior living operations.
Revenue Streams
For the nine months ended September 30, 2024, total revenue was $506.35 million, a 27.2% increase from $398.94 million in the same period of the prior year. The breakdown of revenue by segment is as follows:
| Segment | Revenue (in thousands) |
|---|---|
| Home Health and Hospice Services | $377,463 |
| Senior Living Services | $128,885 |
| Total Revenue | $506,348 |
Revenue by Payor Source
Revenue is significantly derived from various payor sources. For the nine months ended September 30, 2024, the revenue breakdown by payor was:
| Payor Source | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Medicare | $245,746 | 48.5% |
| Medicaid | $66,386 | 13.1% |
| Managed Care | $66,084 | 13.1% |
| Private and Other | $128,132 | 25.3% |
| Total Revenue | $506,348 | 100% |
Cost Structure
The total expenses for the nine months ended September 30, 2024, were $477.47 million. The cost structure included:
| Expense Type | Amount (in thousands) |
|---|---|
| Cost of Services | $405,776 |
| Rent—Cost of Services | $31,814 |
| General and Administrative Expense | $36,337 |
| Depreciation and Amortization | $4,292 |
| Total Expenses | $477,468 |
Profitability Metrics
The company reported a net income of $17.81 million for the nine months ended September 30, 2024, compared to $9.38 million in the same period of the previous year. The earnings per share were as follows:
| Metric | Value |
|---|---|
| Basic Earnings Per Share | $0.56 |
| Diluted Earnings Per Share | $0.54 |
Operational Efficiency
The company’s operational efficiency is reflected in its adjusted EBITDAR from operations, which was $70.87 million for the nine months ended September 30, 2024, up from $57.26 million in the prior year.
Acquisition Strategy
Pennant Group has actively pursued an acquisition strategy, expanding its operations through the addition of eight home health agencies, three hospice agencies, and three senior living communities in 2024. The aggregate purchase price for the real estate of two senior living communities was $10.38 million.
Financial Position
As of September 30, 2024, the total assets of The Pennant Group, Inc. were reported at $646.76 million, with total liabilities of $459.47 million, resulting in total equity of $187.29 million.
Cash Flows
For the nine months ended September 30, 2024, the net cash provided by operating activities was $18.73 million, compared to $27.91 million in the same period of the previous year. The cash flow from investing activities was a net outflow of $66.29 million, primarily due to cash payments for business acquisitions.
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Resources:
- The Pennant Group, Inc. (PNTG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Pennant Group, Inc. (PNTG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Pennant Group, Inc. (PNTG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.