The Pennant Group (PNTG) Q4 2024 earnings summary

Executive summary

• Achieved record-breaking 2024 performance with full-year adjusted EPS of $0.94, GAAP diluted EPS of $0.70, and Q4 adjusted EPS of $0.24, exceeding guidance midpoint.

• Revenue grew 27.6% year-over-year to $695.2 million; Q4 revenue was $188.9 million, up 29.4%.

• Net income for 2024 was $22.6 million, up 68.6% year-over-year; adjusted net income was $30.0 million, up 36.9%.

• Launched key partnerships and completed strategic acquisitions, including the $80 million Signature Healthcare at Home deal.

• Record-setting cash flows from operations and a strengthened balance sheet position the company for future growth.

Financial highlights

• Adjusted EBITDA for 2024 was $53.3 million, up 30.9% year-over-year; Q4 adjusted EBITDA was $13.8 million, up 16.1%.

• Full-year revenue: $695.2 million, up $150.3 million (27.6%) year-over-year.

• Q4 net cash from operating activities: $20.6 million; free cash flow: $17.2 million.

• $245.8 million available on revolving credit line; $24.2 million cash on hand at year-end.

• Medicare accounted for 48.3% of 2024 revenue; Medicaid 13.2%; managed care 13.3%; private/other 25.2%.

Outlook and guidance

• 2025 revenue guidance: $800 million–$865 million; adjusted EPS: $1.03–$1.11; adjusted EBITDA: $63.1 million–$68.2 million.

• Midpoint of 2025 adjusted EPS guidance ($1.07) implies 13.8% growth over 2024 and 46.6% over 2023.

• Guidance assumes continued ramp in Home Health and Hospice ADC, senior living occupancy and rate, and stable macro conditions.

• Same-store revenue growth projected at about 7% for 2025, with potential for higher growth in Home Health and Hospice.

• Guidance assumes 36 million diluted shares and a 25.5% effective tax rate; excludes unannounced acquisitions and certain non-recurring costs.