PNTG - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Pennant Group Fourth Quarter 2020 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your host, Derek Bunker. Please go ahead.

Derek Bunker

Thank you, Sarah. you us thank and everyone, for today. joining Welcome,

have our Freeman, CEO; with CFO; me Guerisoli, Walker, I today, COO. our Jen Here Brent Danny our John Gochnour, and our President;

other publicly information, today's required We listening any p.m. XXXX, want or made to also filings statements result release of website few beliefs more are this undertake all could begin, a we call. securities We and federal by changing subject undue uncertainties on may implied earnings those laws, where this The future today's updated reason. Mountain and Investor have and on or which assumptions I not as of to or based impact is could in call. as a should do statements are Relations results until risks to changes statements review remind current events, environment that operate. circumstances anyone Pennant today our will forward-looking expectations, expressed Except and the to nor these made Before and These SEC reliance www.pennantgroup.com. not to statements housekeeping our section materially we to on A a yesterday. our call for its differ are management's XX-K actual on to are as results. Also, complete that from discussion be XX, replay that our revise of place be of forward-looking and Listeners cause about new business for encouraged have our arise March been and filed our XXXX. any statements affiliates any XX, factors update of a matters. our be not available X replay forward-looking February on available the statements on announcement press Friday, website of today, will call that subsequent at

revenues. our a direct Pennant owned Center, of as subsidiaries, Certain payroll, independent legal, technology, company In subsidiaries management addition, consolidated we, such Pennant human refer its resources, Service employees with to words is to to Group, with contractual no The subsidiaries. Inc. our wholly the The accounting, operating the provide referred holding or through Group, operating company, assets, relationships Inc. other Pennant, and risk and services subsidiaries. information us collectively other The and

operated well as construed the should use company of assets, us herein have Pennant not as Group, management, the meaning All to nor companies of operating and meant that by the consolidated independent be our terms and our own direct today Service are are similar as The imply to assets wholly their the its terms and subsidiaries References assets. and Inc. has that in owned, activities relied upon we, be understanding the Center and operating available separate, reports. employees used GAAP-to-non-GAAP is business, we employees viewed or GAAP Pennant by to A not our GAAP The measures release in our Group. reconciliation press are provide results, Also, with but yesterday's they a When revenue of metrics. complete more together these exclusion our that or any our supplement with operated non-GAAP and of reporting should XX-K. of believe it subsidiaries can GAAP we that the in

call the that, Walker, to turn over Danny? I'll with Now Daniel our CEO.

Danny Walker

to morning, fourth joining and full us everyone. today Pennant's quarter good you and discuss Derek, Thank XXXX results. year you, Thank for

team an deal IT unprecedented from human and dealt And with We reimbursement our pandemic. in as related Our challenging a enterprise and continue we Group. a capital to of systems PDGM. challenges proud dynamics The key and the transition of I faced, to you completed ultimately methodology new the our clinically each to able the first of and complexities eventful, to consistently displayed. achieve we spin-off We navigated of resources was were year with on the our one that the we company financial, public in continue and each positioned say Despite impact to and both rewarding. strong and Ensign you've and to successful I growing for of collective are results, leaders, thank these fronts, and am members of XXXX. want well courage efforts grit financially,

approximately underpinned were Our in comprised the and were XX% by quarter. growth an XXXX in the These and home incredible of XX% nearly strong growth the year the nearly our impressive in quarter year facets which segment, overall existing in hospice both results for growth operations. were and prior over prior adjusted EBITDA performances headlined rates by all of year fourth XXXX health over EBITDA adjusted growth and business achieved new

the reimbursement Medicare as rating sequentially health XX% X%. grew And the nearly holiday, improving agencies stars. inclusive health XX national from across revenue levels episode our a our home year to of and XX-day previous agencies average the the occurred Medicare in increased admissions appropriately stars more account admissions of Excluding quarter. X.X%; And of previous revenue prior fourth hospice, our X-star of agencies XXXX the average our growth grew daily average our X.X star of sequestration achieving evidenced Pennant, hospice in total the clinical the each day population. three holiday, average over to X.X%, quarter. home the grew in Medicare grew inclusive performance, higher-acuity acquired acquired percentage months, by benefits acuity PDGM grew nursing XX result as were above of per of as under This sequestration for a health strong excluding the rating the the our months, XX%; census rebased our Similarly hospice of XX% home in to patient per average X% total benefits the

to to laid for as ago, outpace and by the we during faced increased community year to felt moderate Our see markets COVID-XX we of those rate our of surge discharge confront potential confident investments in positive and reported cases. the the averages, -- the from our acute continue in these The composite pandemic. potential last environment. and was feel September hospice challenges. we And quarter, rate, the even operating national But notwithstanding foundation long-term difficult we a decline home In outcomes accelerating home acute which measures challenges experienced shared seen segment, continue near-term all -- health benefits are with update of the XXXX. the an the significant then, health results operate continue impact Since slightly hospitalization after we moderately year. clinical we however, as When senior light care had years CMS. living occupancy quality second more decline these impressive to October we these in of

this Our staffing. segment on expect in And pressures we half offset to or occupancy XXXX. the to results first some quarter moved we of were fourth and the another degree to continue impacted negatively even trend as in

We abate. in-person are will particularly bolster for confidence pent-up ongoing also visitation as touring restrictions rollout demand unlock public and on and senior the vaccine hopeful living services,

vaccine. of first or of our residents pleased received vaccination that the current with scheduled their have our had all are clinics XX% having communities We

acquisitions look situations. the as disruption of ability in these apply current to resulting overcome we are opportunistic from operating our a to short-term forward principles confident challenges taking leaders our While significant advantage environment and industry our pandemic. opportunity headwind, these is operating proven that In And turning living we pressures difficult of in to with around built wake senior in the as challenges work short, organization, the equate through the come segment. near-term to an long-term are the

our of As the Jen from to we million million. announced will yesterday discuss, capacity $XXX we revolver that $XX increased

As allocating segment, leadership In do we aware, we markets have our senior long-term living allocate on the our stakeholders have focus anticipate capital near strategic in operating where in not allocated acquisitions pandemic are and not results healthy the a improved of term and our our for opportunistically navigating existing strong pipeline. driving efforts we and the capital their buildings. leaders as challenges

capital a we continues we deploy other segment. because a home to have multiple in And deployed health strong our and more the significant even markets hand, have and operating pipeline. amount to increase of leadership opportunistically the healthy capacity On hospice

to continue to grateful across markets the and work can segments to capacity strategically we strengthen We for in operating our our so us leadership our invest of borrowing many And disciplined improve health our increased both partners are with execute lending to we diligently strategy. growth markets entrusting pipeline simultaneously.

in As adjusted continued This year-over-year are and we announced we affirming health foundation strong share home press and our guidance. release, our our yesterday for our lays hospice the revenue in momentum earnings annual XXXX per business growth. annual

past because navigate the annual we current guidance the confidence in to impact face of our expectations are senior bottom XXXX and the exhibited were and performance we execute the had living, of leaders for with and the there local segments, XXXX. cognizant pandemic growth of we health ability results the we've business, positioning leaders based end the are our in commend are ongoing to regarding how of our similar both late in high pandemic. can the guidance affirming uncertainties living senior year our challenges the in consistent encountered the for to line despite top home peak the will we on complexities uncertainties. of unexpected the optimistic set into With adversity we visibility continue affecting very local multiple for facing we our at year, environment maintained the growth and strength on and ongoing including have Last in more real spite ourselves. hospice in we their is perform the drive this XXXX have operating headwinds We confidence We return and reasons trajectory to be COVID-XX when the to the us continuing of

Now recent that, to I'll it discuss hand Derek? Derek our to investment off with activities.

Derek Bunker

Thanks, Danny.

During to added Pennant and the family. we operations XX XXXX since,

large We strong talent. investment growth reflect and executed further continuum long-term that We have providers versa. model. our budding have with expanded which agencies that ventures. adding through our our geographies hospice to significant Our And markets. home successful multiple capital we reputation consistent operating disciplined We organic we We acquired into ways in we in of grow operations of deployment potential. leadership local health acquired with a in strategically start-ups, we history can and expect develop adjacent the vice agency existing start-up and regional small, the within services by a many expanded these where

that key system important the partner. We common across with a joint also relationship most dollars began was hospital of our are theme these asset venture our leaders. a transactions with and we discipline maintained The allocation

we Other points marketed closed the the many choice. and of seller, deals, to these closing in transaction were foundation as these, we were value Our leaders off-market able operations entry were legacy reputation unique entrepreneurial has to highest just strategy local And carrying sellers our of acquired that but growth. some a deals with employees for with high-upside Among second strategic at opportunities. our year-over-year talented we swiftly empowering often of were bidder were same win saw processes commitment entrusting laid our culture. by the buyer or their favorable decentralized the more into and evidencing model impressive leaders, welcoming on our because not which third

We are multiple improve dozens close Center a due our the on-boarding transactions our dozens Service continue who transactions over often volume able diligence, of each because of acquisition processes. of and simultaneously, to and resources to field built collective and of and year, expertise high

or providing from acquisitions good track refrain given number acquisitions price our a historical future our aggregate year, While hard indicator likely record anticipate targets any we is purchase growth for the rate. in of we of of

represent our higher ability operating support execute larger, and care and of number our to The Pennant, of to a increases our leaders grows. home a markets period in capacity particularly spaces. strength to as M&A more clusters, the complex our favorable to landscape health, acquisitions, hospice growth the access for and resources our exciting combine leadership Our mature and pipeline home capital and an of transactions

the may And to recapture I'll in strength over future. senior performance. markets With living and we pursue Jen Jen? operating feverishly themselves financial that so some provide that, poised We on it the to to in present back, pipeline opportunities are to leadership that hand our hand detail Company's are it working

Jen Freeman

full ended XX, you, our three and good XX-K Thank and are and in the XXXX, financial filed everyone. yesterday. Derek, release for press results months Detailed December contained morning, year

increase share XX.X% of earnings revenue the increase we year a For $X.XX December XX.X% of $XXX adjusted the revenue GAAP ended per XXXX, our due of results operational We and had XXXX full XXXX share share of and total XX, earnings during and the a leaders of over diluted operating to over consistent difficult million spin-adjusted earnings or represent per which an per $X.XX. very share year, adjusted over share per XX% million, per $X.XX, strong our earnings reported non-GAAP of GAAP $X.XX prior of field execution environment. earnings diluted $XX.X diluted

from $XX costs administrative for million received, of benefited quarter of the of year-end. advance EBITDA multiple credit much X.XX year, of of a our Medicare also even disciplined Medicare million $X.X the We of advance as year-end, full impacted key enterprise transitions, fourth Difficulty] back drawn payments .X exclusive on paid completed if been which line payments have cash as [Technical of and debt-to-adjusted million times at net we management general system G&A. revolving

the strong the from Provider our do listeners, As include funds Act. annual CARES Fund results a to any by Relief not established reminder our

to Act [technical the approximately tax difficulty]. difficulty] [technical and Medicare million CARES [technical continue We payments difficulty] from $X.X

We April payments expect advance to the XXXX. recoupment automatic of begin

please our COVID-XX exclude Finally, share expenses. adjusted revenue non-GAAP that earnings year note per the full certain and limited sequestration results holiday Medicare from

our include easily lost more expenses our real pandemic expenses easily to able a directly the on but impacts such other revenue, reminder, that not that we quantifiable. capture adjustments are very resulted to intangible for are pandemic as the do not impacts from and As revenue those related and are lost efficiencies or COVID-XX

confident our our $XX were on capital, million. that can expect we also meet line a drawn our we termination growth and defining potential the business among principal and $XXX credit facility confront phase We to extends compelling, some undrawn annual we from pleased aggregate results an and in borrowing of mentioned, it of pandemic. increase facility's facility the lumpiness both updates. of the million we of upside Danny yesterday The remains credit on execute are reduces long-term to XXXX and guidance year provided to segments. to near-term revolving tenor, other we refreshes Nevertheless, announce the As the a we've rate this amount as include significant to we as make amended our out five-year amendment strategy growth our realize interest and our

for grateful our models partnership banking and in our represents. are this We that confidence of group upsize the the

turn dry back Danny? with And on powder continue As the revolver, of us February growth the remains XX, our call million over Danny. providing XXXX, disciplined undrawn $XXX.X to strategy. substantial to that, I'll

Danny Walker

you, remarks. Jen. I wanted conclude Thank just with couple a to of final

CARES experience that First, we would we provider knew when chose we pandemic not to that out relief difficulty and we come the Act the unscathed. some take wouldn't funds of

confident our potential right However, ability we to look realizing both segments. segments our untapped and have the the forward that both to course that is have in for And keeps intact. forward we organization that in feel we chosen we move

operations that at Now results this to normally highlight time, time individual financially. exceptional and clinically have we take achieved

level a to that, they residents our and frontline to provide that XXXX. of many We like resources, provided during supported operations environment. senior thanks for each Idaho. to of was and thankful of for very, and One running local our passed. give XX,XXX the so team. were and in feel today at luxury difficulties members caregivers, turbulent took nearly for patients We staff, the bravery in they this down our the the pause that very risk and danger each staff courage care These, day a complex home didn't year However, hospice hunkering example day the state danger them. needs frontline have extreme by XXXX. involved interactions a responsible great of clinicians to and health, the waiting personal Instead, of these and we'd of of while leaders insight in and high Each and our in our for incredible meeting of so living

closing but the state, to and it's of Manor Pennant what collaboration of facility. During at And were living is done, work Today, COVID in risk was behind and because run state's And its Falls only extraordinary It so challenges in there space. families as bravery danger, an own and even stages was staff Twin were opened we coordination are they when the work that took done. the with towards same its courage the team for have were care and be frontline up your there delivered stand the kind personally doors amount team is early the and the living the you of risk. at by pandemic, that dedicated to assisted assisted the the severe operation. the grateful

a -- defining but our this that history for of We in have their possess honor contributions. to forward bright look to defining the steps segments. towards this from that as organization's internally build individually taken moment our And in group to also we future individuals very those collective year, continuing we both

Now with portion to that, QA of turn our call. we'll the

As earlier, President; both Guerisoli, everyone who can the with are the instruct Q&A Sarah, our and to please? John with questions. COO, -- Derek help our here available on of we Gochnour, procedure, mentioned are Brent you with answering

Operator

[Operator Instructions].

Our of first from question comes the with MacDonald Truist. David line

David MacDonald

little to could completion one questions. the everything of just if A about quick own more, the bit couple onto a your and move was I decouple mentioned of effort you IT you your the Danny, thing platform. in release wondering talk systems

talk just couple organization. and So efficiency, I the could was a agility for about minute that I what of of guys terms follow-ups. you you a spending and then of quick does And spend wondering if in just got

Danny Walker

growing hundreds devote to but David. accounting the so involved thanks. financial hundreds initial Yes, planning the involved reporting, the leaders make extraordinary of human of well capital/HRIS and our of Thank took we that of risk in our IT, be you. have impact things manhours on business. forward. things, disruption of Each and sure we Each the execution. of Great of them the business these move and as to question, and systems side other side will to free biggest the The manhours Great. and also elements now significant day-to-day to care as resources

benefits So new These most of implementing living our on -- transition instance medical the electronic side an it the field to the process were to benefits the -- senior living ability in are being of involve customizing our part on operation-by-operation provide really basis. senior disruptive the the business. -- better systems own platforms a of data in space. the We of our record and was major

those were combined of things Some to more umbrella. under a challenging do

we undertakings see massive we -- be have able of more those butter, So for bread deploy years. that our current strategically like the opportunities market and strengthening to then that for are markets, constantly devote we doing data on anticipate internal improve. no longer current can our our we hours practices to continue radar, those our the good once we'll acquisitions, towards past so to -- operations, And that XX capital

David MacDonald

quick then within And markets. your questions. of couple just One, other a

the talent relative given strength seeing you Company, just and talk in terms can leadership about there? of you're local of Just what the the pipeline

Danny Walker

Sure. Yes, question. great

tackle I think have I'll John one. that

John Gochnour

building today great Yes, because it we segments. appreciate everything and been talking that's in both about at David, of right the of heart it's we've a momentum question, it's

of internally. community that now different is now. in your them just it folks you, within you our And And also robust the you're you administrators about XX elevate expand than right ethos program got speaks leadership those but about been are influence allows is serving of elevated to is that, the pipeline that around we've our the if organization. this that more have in what idea around things built been. that training who it's in that X/X ever I And not group, to think one right leadership of exciting Our

so excited allocation are to to future. new this positions capital so in elevated And leaders, let able a do standpoint that -- we're it be about internally, the being group of many from and us

David MacDonald

And stars. question, number a out during then the number just last that. then your sequentially. X.XX remarks, give where X% to wanted year? last figure quality you I to Can the And was. that was of sense a XX% just quoted Okay. prepared Danny, what you on us I metrics, just that missed

Danny Walker

agencies the The internally were the pull on where X% achieve percentage we rating. We'll year. Yes. in -- what our of at prior we the track number X-star

that a have a of a had had ago, X-star now And X-star achieved have year we rating. of so we achieved them X% And that our XX% rating. agencies

So that's that metric.

So John?

John Gochnour

this year, were that we the fourth in moved stars up the that on And publicly to at Last year, reported four quarter data. we've CMS That's average. X.XX. on

working data things and about we the is like we move of there. cumulative make product, One to of people continue that of and to spending the capture SHP is, coding clinical this that and that to highest-quality use monitor we're hundreds to real-time again, partners And track effort -- dial we're documenting to that the on a continue of excited delivering appropriately thousands it. sure basis, of hours, thousands

that's So [indiscernible]. the

Danny Walker

that deliver David, structure, when And for takes built operational side, but confines. we the those systems, systems clinical occasionally We time to continue it star occasionally, well -- on good the implement there, to us but that. and a the they to -- also move both in compliance agencies, within have acquire their are -- they where Yes. is right, dynamic rarely have

us. at is is looking out this constantly are that measure. going to a and So how We're affect what doing lag today we

progress. So we're pleased though. overview, That's with the the

David MacDonald

terms of and COVID bit. pretty else pace sure work that's maybe slower acquisition call anything I that just would call a And stars in the would that But even you jump. to that just terms XX% meaningful you way is out in you significant a percentage. X% makes a there the probably last guess of Is more a uptick that pretty question. helped highlighted, And -- difficult. I'm as little out? anything

Danny Walker

Yes.

our acquisition onboarding time, new system, as just is reporting and more more execution that improves. time really of -- maintaining and they to And of people that topics. and a have these on works data that's really spend our it teams integration and So key. lengthy the supported time teams more by over in more And how then as is change is behaviors these around that, period the structures, spend then start clarity

foundation why the growth able on is to that over over year kind we're year achieve. of over the really it able we've execute year been So year of to

efforts So elevate reward leaders a to deliver out as in for huge to really that markets way clinical it's the our teams to and performance them the of our and compliment to need local way really in, want excellent they our care way dig and the get they to their well.

So now on the -- comment that -- slowed our acquisition an a basis. on average pace on really per hasn't like

So to able progress. this been we've achieve

As -- they consistent. get highly deals time. ingrained our systems clinical really system, for time And and better it layer into just and become to they better over these takes

with So we're pleased it.

Operator

Thank you.

next comes Stephens. line the from with Our of Fidel Scott question

Your now line is open

Scott Fidel

wanted half XXXX questions just persisting appreciate certainly you've just some of provided guess the framework senior market more the Thanks. a the pressures to based the to then bit to few most on likely ask And hoping had you a really that that modeling return growth. I I on one around first developments for some highlighted. in living. for focused I of in recent the on just and

the case, it maybe or around the base progressing figure midpoint senior you that from us any quarter. to in you building if guidance into insight occupancy in fourth can helpful think the give what about how XX.X% extent you're be I to thinking into maybe might your can the of living

you in the to do and maybe half quarter, sort in you get what second us If then quarter maybe to terms of first help the of year. can back

Danny Walker

are same have March. is The the good Yes, seeing January, moving into she really Jen they'll possibly more in signs. what February that I'll linger would a January I'll right, signs I on this continued into I projections say main -- -- right and thing see and seeing the things into little of provide December we're we're from you direction. mean can. difficult, trends know. have The But as

we be increasingly, achieve further confident declining long. for year that is into So in it for the and And the that to we're having prior So and something quarter, tolerate we used exceeding ever, can will feel won't us performance very sure. we then, the not the that we right? a get, and, first year this

I or enough think you've for watched that. known know long us to us

that. that So and are doing things to we're rallying the do necessary

As far whatever detail goes, can? modeling as the can you Jen, provide you

Jen Freeman

It's Jen. Sure.

So we're at kind projections I on on would occupancy say looking the quarter-over-quarter. of revenue, living the concerning flat senior side

We continue more a this quarter. the end projecting we're the We beginning, pressure quarter far first towards some a of in flat slight of through, have the middle probably seen will pace of what through the with uptick at XXXX, as as second what direction, year try XX.X%, that as in to to get towards we doing to we're around did probably looking how the we're year for and that moving in so right and goal. the, what year-end at achieving the

Danny Walker

combined adjustments be and limited change, still virtues COVID heavy, be adjustment window. We all keep And occupancy. census fourth capture points. lower make And quarter function and a survey increasing it assembled ability the of can the so successful to with to structure on an conditions to can the there even front, our to from heavy frankly, further we even during these well the that low-cost opportunistic able that and enforcement are one still earnings we'll safe, those the our on, entry cost It's process seeing the at challenges. of so basis, portfolio, opportunities an response at the perspective having we're, with was for us, Scott. I'll we're to I, just environment mention declining in combined residents that efficiencies

to we that something I choosing the funds relief all it's focused script, by mentioned bit not We're it's committed we presents highly of could this. we're, it. And got overcoming in that going the that to opportunities on from that were our to fully the And getting and at a and better, we're we're well, in like So attention. of that building excited about we're little have difficulty. fill gaps provider terms where we with, that, it knew face

Scott Fidel

on then exit in how at on sort fourth Jen's that SL sort a to on in I and of sort question your my sort from in pressure revenue around just definitely this progression around would about and the first to this talking was to you're like sort translate the just have expense of translating into of stabilize of to, in And segment. now line excited. to off Obviously, again. the modest And of be of about on margins think, your did the many be interested thinking were sort start you more EBITDAR what where you holding pull margin follow-up on that levers in how you're quarter of comments the was there sort qualitatively into rate of EBITDAR revenues. in I'm just It that XXXX Dan, expecting would topic, thoughts how grow sounds sort front manage going bit that you of that. XQ side have ultimately decline

Danny Walker

the to is that of provide do you lockdown kinds can residents that own the actually to of of some bit marketing Jen lost feeding kind world built system. were you we've efforts, alone into leveraged development clinical cause communal the the labor but PPE, be there. of better, of that equipment your in having can't total a you into get little efficiencies just let whole your that's you're our provide things that rooms, can't, in when their protective the something hamper gone whole of combination business Yes. The and thinking is some robust doesn't a response and

recurrence I what in QX on see be returning we we margin we'll, we isn't there of had QX, in will pretty levels of I think to And Probably QX basis, this you'll some assuming the us this to back think a think get past. quickly. I QX, experienced year of here, fairly QX can where achievable. the and those year, So been

So that's execution in. control. and control there in feeling less it of the we've general is dug might as of well Obviously, our control. is The within occur pandemic the the what our on some

return I to that a environment rates. favorable by us. structures, the settings, operating the very towards there skilled way signs that manageable positive of In in our sort really encouraged However, we're discharge other hospital in very nursing there point is for operations, think are be some would affecting vaccine

Scott Fidel

ones it. for just quick more And you. Got two

quarter and extreme quarter. used to about sort think I'm One, obviously then affect it that that First, particularly am, you if here thoughts impacts you exogenous out weather. a just up interested year-over-year out, business everyone. North And South. the dynamics first guess, but just we're I sort days thinking couple there. interested where And wanted days, the playing the But just on from in just your dynamics the a to couple think there's about Obviously, of, I there. business first of comps I and of business in just impacting fewer how in call the

Danny Walker

to Yes, We great hit immune situation pretty Texas. question. not were The that. hard weather in

affected it had quite that evacuate. temporarily we several of of had to few operations have, them our We We significantly. a

way on. And there's so was that'll its into it little work we'll yes, things work insurance and Obviously, that our like But coverage systems. that, disruptive. a

our will being about to kind expect battle, exciting of we're, our to just enthused feel the first is for a the being battle in that are it's and good the little kind kind glad responding. residents But about everything treated and there'll think that that another group. way we so. bit in how care quarter about of headwind. are great And protected. be I environment, recovery leaders of We be are be So and the we feel of a we're And related the intact in

Scott Fidel

one last just for you. then And Great.

stay. length update ADC Just hospice it to of interested as in an on relates

frankly, relative actually just as came it was update strong, have their in see calls your ADC. -- of frankly. didn't really so those, looked really the at stay there, disclosures December. were you there what from in whether your to, hospice But and seeing your Frankly, -- in projections. me your pressure to hard there in on at and your stuff M&A peers mean interested least November COVID know and length called my looking some relates earnings on I I Some recently to I pressures ADC in release, was it just of in for there out

Danny Walker

John it's can you. holidays seasonality. are little ADC perspective. seen more we're But he closely. We've from something provide little normal the really Yes, to interesting always detail has watching hospice a The a

John Gochnour

been a fourth typical in by that's length you're bit think I the the first impacted a what is and fairly quarter, Scott, of impact quarter. us seasonality stay on for higher-than-average little seeing in a

impact But is first ADC of kind continue as actual see So sources. framework. we they to is declined impact. able hasn't typical referral pronounced telling -- new bit Length meaningfully. been what's stay of what our did And within a fits our to find operators were that little on think quarter of the I and that our as ultimate adjust to

to sort of So that in been related, way believe, we've wave year. second half second navigate able pleased with the we been decline the to of the the of we've COVID

Operator

from Morgan comes question with Capital. the of next Frank Our line RBC

Frank Morgan

priority the have care housing Does growing that senior of I sort outlook, in changes going your questions really activity my more back way change that and be side. just guess forward? pressures with interest your the of M&A Does make you to to at But health obviously, of the answered. home near-term this going senior external Or the housing inclined the growth been Most any look side? side? hospice on this

Danny Walker

great question, that. Frank. Yes, for Thanks

and Our expect at our that all-time and buildings to to March, were that's past. how would But inherent up similar in capital the it's existing to listeners remind be from we the would right, by quite the high opportunity strategy we occupancies in where recovering in remains just pandemic beyond, moving given an back we it's there's see allocation been any capital, just strategy living in approach now. and not, acquisition just like upside came, a pandemic not the our hard we for in so building acquisitions, our to see but won't and own before business right if follow to that we them senior our portfolio. how of will allocation lot our qualify that disciplined of do It's

strength. them. grow have position like we we when we those we headwinds headwinds and So face, head And we from overcome confront a on of

So senior strength the of significant, in day see consistent signs for that there. of until the we order will the be living business recovery and

that leadership on in much and So capital is And put equation the work strong intact. hospice home lot space. great a very momentum. health markets, the pipeline, We'll to of strong side

disrupted And senior interrupted pandemic, So grow strength. our core we've we how capital we or our some don't living space sight we decisions. But sort work allocation during second the to made the put the half had have probably would been want year. that's not momentum on in last of capital of during have consistently of to where thoughts to lose

that hope I helps. So

Operator

call I turn like back remarks. Daniel now Walker further time. closing no are questions to for would to at There the this

Danny Walker

Sarah. you, for just And to you. we'd the We look us XXXX thank bright in Thank today. like Thank everyone to future joining forward together.

Operator

conference your call. this for today's participation. you Ladies concludes Thank and gentlemen,

You may disconnect. now

The Pennant Group, Inc. (PNTG) 27 Feb 212020 Q4 Earnings call transcript