(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices and Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||
Press Release of the Company dated November 6, 2024. | ||||||||
104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. |
Dated: November 6, 2024 | THE PENNANT GROUP, INC. | |||||||||||||
By: | /s/ LYNETTE B. WALBOM | |||||||||||||
Lynette B. Walbom | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(1) | See "Reconciliation of GAAP to Non-GAAP Financial Information.” |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | $ | 180,688 | $ | 140,192 | $ | 506,348 | $ | 398,937 | |||||||||||||||
Expense | |||||||||||||||||||||||
Cost of services | 144,468 | 112,384 | 405,776 | 321,162 | |||||||||||||||||||
Rent—cost of services | 10,906 | 10,006 | 31,814 | 29,439 | |||||||||||||||||||
General and administrative expense | 13,023 | 9,417 | 36,337 | 26,913 | |||||||||||||||||||
Depreciation and amortization | 1,493 | 1,323 | 4,292 | 3,817 | |||||||||||||||||||
Loss (gain) on disposition of property and equipment, net | 4 | 1 | (751) | 4 | |||||||||||||||||||
Total expenses | 169,894 | 133,131 | 477,468 | 381,335 | |||||||||||||||||||
Income from operations | 10,794 | 7,061 | 28,880 | 17,602 | |||||||||||||||||||
Other (expense) income, net: | |||||||||||||||||||||||
Other income (expense) | 109 | (37) | 192 | 28 | |||||||||||||||||||
Interest expense, net | (2,892) | (1,496) | (6,306) | (4,355) | |||||||||||||||||||
Other expense, net | (2,783) | (1,533) | (6,114) | (4,327) | |||||||||||||||||||
Income before provision for income taxes | 8,011 | 5,528 | 22,766 | 13,275 | |||||||||||||||||||
Provision for income taxes | 1,354 | 1,066 | 4,957 | 3,894 | |||||||||||||||||||
Net income | 6,657 | 4,462 | 17,809 | 9,381 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 452 | 79 | 1,008 | 351 | |||||||||||||||||||
Net income attributable to The Pennant Group, Inc. | $ | 6,205 | $ | 4,383 | $ | 16,801 | $ | 9,030 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.20 | $ | 0.15 | $ | 0.56 | $ | 0.30 | |||||||||||||||
Diluted | $ | 0.20 | $ | 0.15 | $ | 0.54 | $ | 0.30 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 30,281 | 29,912 | 30,157 | 29,825 | |||||||||||||||||||
Diluted | 31,363 | 30,206 | 30,869 | 30,178 |
September 30, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash | $ | 4,464 | $ | 6,059 | |||||||
Accounts receivable—less allowance for doubtful accounts of $313 and $259, respectively | 84,025 | 61,116 | |||||||||
Prepaid expenses and other current assets | 13,307 | 12,902 | |||||||||
Total current assets | 101,796 | 80,077 | |||||||||
Property and equipment, net | 41,865 | 28,598 | |||||||||
Right-of-use assets | 265,441 | 262,923 | |||||||||
Deferred tax assets, net | 245 | — | |||||||||
Restricted and other assets | 12,173 | 9,337 | |||||||||
Goodwill | 129,337 | 91,014 | |||||||||
Other indefinite-lived intangibles | 95,902 | 67,742 | |||||||||
Total assets | $ | 646,759 | $ | 539,691 | |||||||
Liabilities and equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 15,888 | $ | 10,841 | |||||||
Accrued wages and related liabilities | 36,565 | 28,256 | |||||||||
Operating lease liabilities—current | 19,113 | 17,122 | |||||||||
Other accrued liabilities | 19,029 | 15,330 | |||||||||
Total current liabilities | 90,595 | 71,549 | |||||||||
Long-term operating lease liabilities—less current portion | 248,907 | 248,596 | |||||||||
Deferred tax liabilities, net | 818 | 1,855 | |||||||||
Other long-term liabilities | 10,277 | 8,262 | |||||||||
Long-term debt, net | 108,875 | 63,914 | |||||||||
Total liabilities | 459,472 | 394,176 | |||||||||
Commitments and contingencies | |||||||||||
Equity: | |||||||||||
Common stock, $0.001 par value; 100,000 shares authorized; 30,565 and 30,308 shares issued and outstanding, respectively, at September 30, 2024; and 30,297 and 29,948 shares issued and outstanding, respectively, at December 31, 2023 | 31 | 29 | |||||||||
Additional paid-in capital | 117,947 | 105,712 | |||||||||
Retained earnings | 51,464 | 34,663 | |||||||||
Treasury stock, at cost, 3 shares at September 30, 2024 and December 31, 2023 | (65) | (65) | |||||||||
Total The Pennant Group, Inc. stockholders’ equity | 169,377 | 140,339 | |||||||||
Noncontrolling interest | 17,910 | 5,176 | |||||||||
Total equity | 187,287 | 145,515 | |||||||||
Total liabilities and equity | $ | 646,759 | $ | 539,691 |
Nine Months Ended September 30, | |||||||||||
2024 | 2023 | ||||||||||
Net cash provided by operating activities | $ | 18,729 | $ | 27,910 | |||||||
Net cash used in investing activities | (66,287) | (17,576) | |||||||||
Net cash provided by (used in) financing activities | 45,963 | (9,030) | |||||||||
Net (decrease) increase in cash | (1,595) | 1,304 | |||||||||
Cash beginning of period | 6,059 | 2,079 | |||||||||
Cash end of period | $ | 4,464 | $ | 3,383 |
Three Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Revenue Dollars | Revenue Percentage | Revenue Dollars | Revenue Percentage | ||||||||||||||||||||
Home health and hospice services | |||||||||||||||||||||||
Home health | $ | 60,988 | 33.8 | % | $ | 44,921 | 32.0 | % | |||||||||||||||
Hospice | 62,757 | 34.7 | 50,371 | 35.9 | |||||||||||||||||||
Home care and other(a) | 11,927 | 6.6 | 6,182 | 4.4 | |||||||||||||||||||
Total home health and hospice services | 135,672 | 75.1 | 101,474 | 72.3 | |||||||||||||||||||
Senior living services | 45,016 | 24.9 | 38,718 | 27.7 | |||||||||||||||||||
Total revenue | $ | 180,688 | 100.0 | % | $ | 140,192 | 100.0 | % |
(a) | Home care and other revenue is included with home health revenue in other disclosures in this press release. |
Nine Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Revenue Dollars | Revenue Percentage | Revenue Dollars | Revenue Percentage | ||||||||||||||||||||
Home health and hospice services | |||||||||||||||||||||||
Home health | $ | 172,773 | 34.1 | % | $ | 129,112 | 32.4 | % | |||||||||||||||
Hospice | 176,711 | 34.9 | 140,222 | 35.1 | |||||||||||||||||||
Home care and other(a) | 27,979 | 5.5 | 18,239 | 4.6 | |||||||||||||||||||
Total home health and hospice services | 377,463 | 74.5 | 287,573 | 72.1 | |||||||||||||||||||
Senior living services | 128,885 | 25.5 | 111,364 | 27.9 | |||||||||||||||||||
Total revenue | $ | 506,348 | 100.0 | % | $ | 398,937 | 100.0 | % |
(a) | Home care and other revenue is included with home health revenue in other disclosures in this press release. |
Three Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||||||||||
Total agency results: | |||||||||||||||||||||||
Home health and hospice revenue | $ | 135,672 | $ | 101,474 | 34,198 | 33.7 | % | ||||||||||||||||
Home health services: | |||||||||||||||||||||||
Total home health admissions | 14,993 | 10,829 | 4,164 | 38.5 | % | ||||||||||||||||||
Total Medicare home health admissions | 6,071 | 4,640 | 1,431 | 30.8 | % | ||||||||||||||||||
Average Medicare revenue per 60-day completed episode(a) | $ | 3,760 | $ | 3,480 | $ | 280 | 8.0 | % | |||||||||||||||
Hospice services: | |||||||||||||||||||||||
Total hospice admissions | 2,987 | 2,433 | 554 | 22.8 | % | ||||||||||||||||||
Average daily census | 3,444 | 2,698 | 746 | 27.7 | % | ||||||||||||||||||
Hospice Medicare revenue per day | $ | 183 | $ | 183 | $ | — | — | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||||||||||
Same agency(b) results: | |||||||||||||||||||||||
Home health and hospice revenue | $ | 110,748 | $ | 98,732 | $ | 12,016 | 12.2 | % | |||||||||||||||
Home health services: | |||||||||||||||||||||||
Total home health admissions | 12,221 | 10,570 | 1,651 | 15.6 | % | ||||||||||||||||||
Total Medicare home health admissions | 5,008 | 4,521 | 487 | 10.8 | % | ||||||||||||||||||
Average Medicare revenue per 60-day completed episode(a) | $ | 3,587 | $ | 3,488 | $ | 99 | 2.8 | % | |||||||||||||||
Hospice services: | |||||||||||||||||||||||
Total hospice admissions | 2,624 | 2,351 | 273 | 11.6 | % | ||||||||||||||||||
Average daily census | 2,995 | 2,650 | 345 | 13.0 | % | ||||||||||||||||||
Hospice Medicare revenue per day | $ | 184 | $ | 186 | $ | (2) | (1.1) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||||||||||
Total agency results: | |||||||||||||||||||||||
Home health and hospice revenue | $ | 377,463 | $ | 287,573 | $ | 89,890 | 31.3 | % | |||||||||||||||
Home health services: | |||||||||||||||||||||||
Total home health admissions | 43,782 | 32,180 | 11,602 | 36.1 | % | ||||||||||||||||||
Total Medicare home health admissions | 18,155 | 14,437 | 3,718 | 25.8 | % | ||||||||||||||||||
Average Medicare revenue per 60-day completed episode(a) | $ | 3,646 | $ | 3,467 | $ | 179 | 5.2 | % | |||||||||||||||
Hospice services: | |||||||||||||||||||||||
Total hospice admissions | 9,118 | 7,206 | 1,912 | 26.5 | % | ||||||||||||||||||
Average daily census | 3,209 | 2,544 | 665 | 26.1 | % | ||||||||||||||||||
Hospice Medicare revenue per day | $ | 182 | $ | 184 | $ | (2) | (1.1) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||||||||||
Same agency(b) results: | |||||||||||||||||||||||
Home health and hospice revenue | $ | 322,941 | $ | 284,228 | $ | 38,713 | 13.6 | % | |||||||||||||||
Home health services: | |||||||||||||||||||||||
Total home health admissions | 36,623 | 31,710 | 4,913 | 15.5 | % | ||||||||||||||||||
Total Medicare home health admissions | 15,441 | 14,221 | 1,220 | 8.6 | % | ||||||||||||||||||
Average Medicare revenue per 60-day completed episode(a) | $ | 3,546 | $ | 3,469 | $ | 77 | 2.2 | % | |||||||||||||||
Hospice services: | |||||||||||||||||||||||
Total hospice admissions | 7,970 | 7,104 | 866 | 12.2 | % | ||||||||||||||||||
Average daily census | 2,851 | 2,528 | 323 | 12.8 | % | ||||||||||||||||||
Hospice Medicare revenue per day | $ | 185 | $ | 186 | $ | (1) | (0.5) | % |
(a) | The year to date average for Medicare revenue per 60-day completed episode includes post period claim adjustments for prior periods. | |||||||
(b) | Same agency results represent all agencies purchased or licensed prior to January 1, 2023. | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Total senior living results: | |||||||||||||||||||||||
Senior living revenue | $ | 45,016 | $ | 38,718 | $ | 128,885 | $ | 111,364 | |||||||||||||||
Occupancy | 79.1 | % | 78.9 | % | 78.9 | % | 78.4 | % | |||||||||||||||
Average monthly revenue per occupied unit | $ | 4,836 | $ | 4,486 | $ | 4,758 | $ | 4,401 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Same store senior living(a) results: | |||||||||||||||||||||||
Senior living revenue | $ | 41,030 | $ | 38,126 | $ | 119,625 | $ | 110,225 | |||||||||||||||
Occupancy | 80.2 | % | 80.1 | % | 79.7 | % | 79.6 | % | |||||||||||||||
Average monthly revenue per occupied unit | $ | 4,790 | $ | 4,454 | $ | 4,724 | $ | 4,380 |
(a) | Same store senior living results is defined as all senior living communities excluding affiliate memory care units in transition, and new senior living operations acquired in 2023 or 2024. | |||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Revenue Dollars | Revenue Percentage | Revenue Dollars | Revenue Percentage | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Medicare | $ | 86,919 | 48.1 | % | $ | 67,925 | 48.5 | % | ||||||||||||||||||
Medicaid | 22,715 | 12.6 | 19,893 | 14.2 | ||||||||||||||||||||||
Subtotal | 109,634 | 60.7 | 87,818 | 62.7 | ||||||||||||||||||||||
Managed Care | 24,652 | 13.6 | 19,158 | 13.6 | ||||||||||||||||||||||
Private and Other(a) | 46,402 | 25.7 | 33,216 | 23.7 | ||||||||||||||||||||||
Total revenue | $ | 180,688 | 100.0 | % | $ | 140,192 | 100.0 | % |
(a) | Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement. |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Revenue Dollars | Revenue Percentage | Revenue Dollars | Revenue Percentage | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Medicare | $ | 245,746 | 48.5 | % | $ | 192,895 | 48.3 | % | ||||||||||||||||||
Medicaid | 66,386 | 13.1 | 56,455 | 14.2 | ||||||||||||||||||||||
Subtotal | 312,132 | 61.6 | 249,350 | 62.5 | ||||||||||||||||||||||
Managed Care | 66,084 | 13.1 | 53,538 | 13.4 | ||||||||||||||||||||||
Private and Other(a) | 128,132 | 25.3 | 96,049 | 24.1 | ||||||||||||||||||||||
Total revenue | $ | 506,348 | 100.0 | % | $ | 398,937 | 100.0 | % |
(a) | Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income attributable to The Pennant Group, Inc. | $ | 6,205 | $ | 4,383 | $ | 16,801 | $ | 9,030 | |||||||||||||||
Non-GAAP adjustments | |||||||||||||||||||||||
Costs at start-up operations(a) | 66 | 59 | 244 | 1,060 | |||||||||||||||||||
Share-based compensation expense(b) | 2,342 | 1,391 | 5,817 | 4,164 | |||||||||||||||||||
Acquisition related costs and credit allowances(c) | 494 | 71 | 996 | 175 | |||||||||||||||||||
Interest expense - write off deferred financing fees(e) | 428 | — | 428 | — | |||||||||||||||||||
Costs associated with transitioning operations(d) | 68 | 90 | (418) | 759 | |||||||||||||||||||
Unusual, non-recurring or redundant charges(e) | 239 | 1,009 | 546 | 1,633 | |||||||||||||||||||
Provision for income taxes on Non-GAAP adjustments(f) | (1,675) | (1,031) | (2,942) | (1,562) | |||||||||||||||||||
Non-GAAP net income | $ | 8,167 | $ | 5,972 | $ | 21,472 | $ | 15,259 | |||||||||||||||
Dilutive Earnings Per Share As Reported | |||||||||||||||||||||||
Net Income | $ | 0.20 | $ | 0.15 | $ | 0.54 | $ | 0.30 | |||||||||||||||
Average number of shares outstanding | 31,363 | 30,206 | 30,869 | 30,178 | |||||||||||||||||||
Adjusted Diluted Earnings Per Share | |||||||||||||||||||||||
Net Income | $ | 0.26 | $ | 0.20 | $ | 0.70 | $ | 0.51 | |||||||||||||||
Average number of shares outstanding | 31,363 | 30,206 | 30,869 | 30,178 |
(a) | Represents results related to start-up operations. | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | (2,928) | $ | (4,956) | $ | (8,821) | |||||||||||||||||||||||||||
Cost of services | 65 | 2,820 | 4,884 | 8,981 | |||||||||||||||||||||||||||||||
Rent | — | 162 | 306 | 885 | |||||||||||||||||||||||||||||||
Depreciation & amortization | 1 | 5 | 10 | 15 | |||||||||||||||||||||||||||||||
Total Non-GAAP adjustment | $ | 66 | $ | 59 | $ | 244 | $ | 1,060 | |||||||||||||||||||||||||||
(b) | Represents share-based compensation expense incurred for the periods presented. | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
Cost of services | $ | 1,069 | $ | 819 | $ | 2,814 | $ | 2,288 | |||||||||||||||||||||||||||
General and administrative | 1,273 | 572 | 3,003 | 1,876 | |||||||||||||||||||||||||||||||
Total Non-GAAP adjustment | $ | 2,342 | $ | 1,391 | $ | 5,817 | $ | 4,164 | |||||||||||||||||||||||||||
(c) | Represents costs incurred to acquire an operation that are not capitalizable. |
(d) | During the nine months ended September 30, 2023, an affiliate of the Company placed its memory care units into transition and began seeking to sublease the units to an unrelated third party. The amount above represents the net operating impact attributable to the units in transition. The amounts reported exclude rent and depreciation and amortization expense related to such operations and include legal settlement costs associated with an entity transitioned to Ensign. | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | (4) | $ | (1) | $ | (4) | |||||||||||||||||||||||||||
Cost of services | 12 | 14 | (582) | 599 | |||||||||||||||||||||||||||||||
Rent | 53 | 77 | 157 | 156 | |||||||||||||||||||||||||||||||
Depreciation | 3 | 3 | 8 | 8 | |||||||||||||||||||||||||||||||
Total Non-GAAP adjustment | $ | 68 | $ | 90 | $ | (418) | $ | 759 | |||||||||||||||||||||||||||
(e) | Represents unusual or non-recurring charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses. | ||||||||||||||||||||||||||||||||||
(f) | Represents an adjustment to the provision for income tax to the year-to-date effective tax rate of 26.0% and 25.9% for the nine months ended September 30, 2024 and 2023, respectively. This rate excludes the tax benefit of share-based payment awards. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Consolidated net income | $ | 6,657 | $ | 4,462 | $ | 17,809 | $ | 9,381 | |||||||||||||||
Less: Net income attributable to noncontrolling interest | 452 | 79 | 1,008 | 351 | |||||||||||||||||||
Add: Provision for income taxes | 1,354 | 1,066 | 4,957 | 3,894 | |||||||||||||||||||
Net interest expense | 2,892 | 1,496 | 6,306 | 4,355 | |||||||||||||||||||
Depreciation and amortization | 1,493 | 1,323 | 4,292 | 3,817 | |||||||||||||||||||
Consolidated EBITDA | 11,944 | 8,268 | 32,356 | 21,096 | |||||||||||||||||||
Adjustments to Consolidated EBITDA | |||||||||||||||||||||||
Add: Costs at start-up operations(a) | 65 | (108) | (72) | 160 | |||||||||||||||||||
Share-based compensation expense(b) | 2,342 | 1,391 | 5,817 | 4,164 | |||||||||||||||||||
Acquisition related costs and credit allowances(c) | 494 | 71 | 996 | 175 | |||||||||||||||||||
Costs associated with transitioning operations(d) | 12 | 10 | (583) | 595 | |||||||||||||||||||
Unusual, non-recurring or redundant charges(e) | 239 | 1,009 | 546 | 1,633 | |||||||||||||||||||
Rent related to items (a) and (d) above | 53 | 239 | 463 | 1,041 | |||||||||||||||||||
Consolidated Adjusted EBITDA | 15,149 | 10,880 | 39,523 | 28,864 | |||||||||||||||||||
Rent—cost of services | 10,906 | 10,006 | 31,814 | 29,439 | |||||||||||||||||||
Rent related to items (a) and (d) above | (53) | (239) | (463) | (1,041) | |||||||||||||||||||
Adjusted rent—cost of services | 10,853 | 9,767 | 31,351 | 28,398 | |||||||||||||||||||
Consolidated Adjusted EBITDAR(f) | $ | 26,002 | $ | 70,874 |
(a) | Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations. | |||||||
(b) | Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense. | |||||||
(c) | Non-capitalizable costs associated with acquisitions, credit allowances, and write offs for amounts in dispute with the prior owners of certain acquired operations. | |||||||
(d) | During the nine months ended September 30, 2023, an affiliate of the Company placed its memory care units into transition and began seeking to sublease the units to an unrelated third party. The amount above represents the net operating impact attributable to the units in transition. The amounts reported exclude rent and depreciation and amortization expense related to such operations and include legal settlement costs associated with an entity transitioned to Ensign. | |||||||
(e) | Represents unusual or non-recurring charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses. | |||||||
(f) | This measure is a valuation measure and is displayed thusly, it is not a performance measure as it excludes rent expense, which is a normal and recurring operating expense and, as such, does not reflect our cash requirements for leasing commitments. Our presentation of Consolidated Adjusted EBITDAR should not be construed as a financial performance measure. |
Home Health and Hospice Services | Senior Living Services | All Other | Total | ||||||||||||||||||||
Segment GAAP Financial Measures: | |||||||||||||||||||||||
Three Months Ended September 30, 2024 | |||||||||||||||||||||||
Revenue | $ | 135,672 | $ | 45,016 | $ | — | $ | 180,688 | |||||||||||||||
Segment Adjusted EBITDAR from Operations | $ | 23,724 | $ | 13,411 | $ | (11,133) | $ | 26,002 | |||||||||||||||
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
Revenue | $ | 101,474 | $ | 38,718 | $ | — | $ | 140,192 | |||||||||||||||
Segment Adjusted EBITDAR from Operations | $ | 17,271 | $ | 11,473 | $ | (8,097) | $ | 20,647 |
Home Health and Hospice Services | Senior Living Services | All Other | Total | ||||||||||||||||||||
Segment GAAP Financial Measures: | |||||||||||||||||||||||
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
Revenue | $ | 377,463 | $ | 128,885 | $ | — | $ | 506,348 | |||||||||||||||
Segment Adjusted EBITDAR from Operations | $ | 64,488 | $ | 38,226 | $ | (31,840) | $ | 70,874 | |||||||||||||||
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Revenue | $ | 287,573 | $ | 111,364 | $ | — | $ | 398,937 | |||||||||||||||
Segment Adjusted EBITDAR from Operations | $ | 47,364 | $ | 33,394 | $ | (23,496) | $ | 57,262 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Segment Adjusted EBITDAR from Operations(a) | $ | 26,002 | $ | 20,647 | $ | 70,874 | $ | 57,262 | |||||||||||||||
Less: Depreciation and amortization | 1,493 | 1,323 | 4,292 | 3,817 | |||||||||||||||||||
Rent—cost of services | 10,906 | 10,006 | 31,814 | 29,439 | |||||||||||||||||||
Other income | 109 | (37) | 192 | 28 | |||||||||||||||||||
Adjustments to Segment EBITDAR from Operations: | |||||||||||||||||||||||
Less: Costs at start-up operations(b) | 65 | (108) | (72) | 160 | |||||||||||||||||||
Share-based compensation expense(c) | 2,342 | 1,391 | 5,817 | 4,164 | |||||||||||||||||||
Acquisition related costs and credit allowances(d) | 494 | 71 | 996 | 175 | |||||||||||||||||||
Costs associated with transitioning operations(e) | 12 | 10 | (583) | 595 | |||||||||||||||||||
Unusual, non-recurring or redundant charges(f) | 239 | 1,009 | 546 | 1,633 | |||||||||||||||||||
Add: Net income attributable to noncontrolling interest | 452 | 79 | 1,008 | 351 | |||||||||||||||||||
Consolidated Income from Operations | $ | 10,794 | $ | 7,061 | $ | 28,880 | $ | 17,602 |
(a) | Segment Adjusted EBITDAR from Operations is net income (loss) attributable to the Company's reportable segments excluding interest expense, provision for income taxes, depreciation and amortization expense, rent, and, in order to view the operations performance on a comparable basis from period to period, certain adjustments including: (1) costs at start-up operations, (2) share-based compensation, (3) acquisition related costs and credit allowances, (4) the costs associated with transitioning operations, (5) unusual, non-recurring or redundant charges, and (6) net income attributable to noncontrolling interest. General and administrative expenses are not allocated to the reportable segments, and are included as “All Other,” accordingly the segment earnings measure reported is before allocation of corporate general and administrative expenses. The Company's segment measures may be different from the calculation methods used by other companies and, therefore, comparability may be limited. | |||||||
(b) | Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations. | |||||||
(c) | Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense. | |||||||
(d) | Non-capitalizable costs associated with acquisitions, credit allowances, and write offs for amounts in dispute with the prior owners of certain acquired operations. | |||||||
(e) | During the nine months ended September 30, 2023, an affiliate of the Company placed its memory care units into transition and began seeking to sublease the units to an unrelated third party. The amount above represents the net operating impact attributable to the units in transition. The amounts reported exclude rent and depreciation and amortization expense related to such operations and include legal settlement costs associated with an entity transitioned to Ensign. | |||||||
(f) | Represents unusual or non-recurring charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses. |
Three Months Ended September 30, | |||||||||||||||||||||||
Home Health and Hospice | Senior Living | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Segment Adjusted EBITDAR from Operations | $ | 23,724 | $ | 17,271 | $ | 13,411 | $ | 11,473 | |||||||||||||||
Less: Rent—cost of services | 1,861 | 1,439 | 9,045 | 8,567 | |||||||||||||||||||
Rent related to start-up and transitioning operations | — | (72) | (53) | (167) | |||||||||||||||||||
Segment Adjusted EBITDA from Operations | $ | 21,863 | $ | 15,904 | $ | 4,419 | $ | 3,073 |
Nine Months Ended September 30, | |||||||||||||||||||||||
Home Health and Hospice | Senior Living | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Segment Adjusted EBITDAR from Operations | $ | 64,488 | $ | 47,364 | $ | 38,226 | $ | 33,394 | |||||||||||||||
Less: Rent—cost of services | 5,254 | 4,136 | 26,560 | 25,303 | |||||||||||||||||||
Rent related to start-up and transitioning operations | (122) | (248) | (341) | (793) | |||||||||||||||||||
Segment Adjusted EBITDA from Operations | $ | 59,356 | $ | 43,476 | $ | 12,007 | $ | 8,884 |