Pennant Group, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Pennant Group, Inc. (PNTG) filed its Q1 2024 10-Q report, detailing financial performance and segment information.</b>

AI Summary

Pennant Group, Inc. (PNTG) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Pennant Group, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's principal business is Services-Health Services. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. Key segments mentioned include Home Health and Hospice Services and Senior Living Services.

Why It Matters

For investors and stakeholders tracking Pennant Group, Inc., this filing contains several important signals. This filing provides investors with the latest financial snapshot of Pennant Group, Inc., crucial for understanding its performance and financial health in the first quarter of 2024. The detailed segment information allows for an analysis of which business areas are driving growth or facing challenges within the company's healthcare services operations.

Risk Assessment

Risk Level: medium — Pennant Group, Inc. shows moderate risk based on this filing. The company operates in the health services sector, which is subject to regulatory changes and reimbursement risks that could impact financial performance.

Analyst Insight

Monitor revenue trends across the Home Health and Hospice Services and Senior Living Services segments for insights into operational performance and market demand.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-06 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (First quarter of 2024)
• 2023-03-31 — Prior Year Quarter End Date (Comparison period)

Key Players & Entities

• Pennant Group, Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-06 (date) — Filed as of date
• 8000 (other) — Standard Industrial Classification code for Health Services
• 1675 E. Riverside Drive, Suite 150 (address) — Business address street 1
• Eagle (location) — Business address city
• ID (location) — Business address state
• 83616 (postal_code) — Business address zip

FAQ

Risk Factors

• Regulatory Compliance [high — regulatory]: The company operates in the highly regulated health services industry, requiring adherence to various federal, state, and local laws and regulations.
• Reimbursement Risks [high — financial]: Changes in Medicare, Medicaid, and other third-party payer reimbursement rates or policies could adversely affect the company's financial condition and results of operations.
• Staffing and Labor [medium — operational]: The ability to attract and retain qualified clinical and administrative personnel is critical to the company's operations and service delivery.
• Competition [medium — market]: The company faces competition from other healthcare providers, which could impact market share and profitability.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share PNTG Nasdaq Global Select Mar

Filing Documents

• pntg-20240331.htm (10-Q) — 1189KB
• ceocert-exhibit311q12024.htm (EX-31.1) — 12KB
• cfocert-exhibit312q12024.htm (EX-31.2) — 12KB
• ceocert-exhibit321q12024.htm (EX-32.1) — 10KB
• cfocert-exhibit322q12024.htm (EX-32.2) — 10KB
• 0001766400-24-000056.txt (&nbsp;) — 6175KB
• pntg-20240331.xsd (EX-101.SCH) — 42KB
• pntg-20240331_cal.xml (EX-101.CAL) — 64KB
• pntg-20240331_def.xml (EX-101.DEF) — 226KB
• pntg-20240331_lab.xml (EX-101.LAB) — 504KB
• pntg-20240331_pre.xml (EX-101.PRE) — 391KB
• pntg-20240331_htm.xml (XML) — 815KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 4 Notes to the Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 6. Exhibits 40

Signatures

Signatures 41 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item I. Financial Statements THE PENNANT GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value) March 31, 2024 December 31, 2023 Assets Current assets: Cash $ 2,722 $ 6,059 Accounts receivable—less allowance for doubtful accounts of $ 197 and $ 259 , respectively 71,354 61,116 Prepaid expenses and other current assets 12,987 12,902 Total current assets 87,063 80,077 Property and equipment, net 40,592 28,598 Right-of-use assets 258,775 262,923 Restricted and other assets 9,651 9,337 Goodwill 107,220 91,014 Other indefinite-lived intangibles 74,942 67,742 Total assets $ 578,243 $ 539,691 Liabilities and equity Current liabilities: Accounts payable $ 13,060 $ 10,841 Accrued wages and related liabilities 25,254 28,256 Operating lease liabilities—current 17,378 17,122 Other accrued liabilities 19,543 15,330 Total current liabilities 75,235 71,549 Long-term operating lease liabilities—less current portion 244,180 248,596 Deferred tax liabilities. net 2,140 1,855 Other long-term liabilities 9,162 8,262 Long-term debt, net 83,294 63,914 Total liabilities 414,011 394,176 Commitments and contingencies Equity: Common stock, $ 0.001 par value; 100,000 shares authorized; 30,371 and 30,036 shares issued and outstanding, respectively, at March 31, 2024; and 30,297 and 29,948 shares issued and outstanding, respectively, at December 31, 2023 30 29 Additional paid-in capital 107,644 105,712 Retained earnings 39,569 34,663 Treasury stock, at cost, 3 shares at March 31, 2024 and December 31, 2023 ( 65 ) ( 65 ) Total The Pennant Group, Inc. stockholders' equity 147,178 140,339 Noncontrolling interest 17,054 5,176 Total equity 164,232 145,515 Total liabilities and equity $ 578,243 $ 539,691 See accompanying notes to condensed consolidated financial statements. 1 Table of Contents THE PENNANT GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in tho

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View this 10-Q filing on SEC EDGAR