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Sep 30, 2021
Pennant Group Q3 2021 Earnings Report
Pennant Group's Q3 2021 results were impacted by a sharp rise in COVID-19 cases and ongoing labor challenges, disrupting the momentum achieved in the second quarter.
Key Takeaways
Pennant Group's Q3 2021 results were negatively impacted by a sharp rise in COVID-19 cases and ongoing labor challenges. Total adjusted revenue reached $111.9 million, with $79.0 million from Home Health and Hospice and $32.9 million from Senior Living. Net income was $1.2 million, with earnings per diluted share of $0.04 and adjusted earnings per diluted share of $0.11.
Total adjusted revenue was $111.9 million.
Net income was $1.2 million, with earnings per diluted share of $0.04 and adjusted earnings per diluted share of $0.11.
Home Health and Hospice segment revenue was $79.0 million, a 22.7% increase year-over-year.
Senior Living segment revenue was $32.9 million, a 3.2% decrease year-over-year.
Revenue by Segment
Forward Guidance
Management adjusts its full year 2021 guidance to adjusted revenue of $425 million to $430 million and adjusted earnings per share of $0.53 to $0.57.
Positive Outlook
- Hospice agencies continue to drive strong results.
- Growth in home health referrals indicates healthy underlying demand.
- COVID-19 cases are trending down, a positive lead indicator of greater admissions, particularly in senior living communities.
- Senior living communities are offsetting labor pressures with more appropriate rent and care rates.
- Ability to unlock tremendous inherent upside in operations expands as the pace of acquisitive growth normalizes.
Challenges Ahead
- Revised guidance reflects the challenging operating environment experienced during the third quarter.
- Expectation of some lingering impacts in the fourth quarter.
- COVID-19 presented unprecedented revenue, cost and operational challenges this year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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