Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Derek Bunker

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

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

Before we begin, I have a few housekeeping matters.

We filed our earnings press release and 10-K yesterday. This announcement is available on the Investor Relations section of our website at www.pennantgroup.com. call p.m. be this website on of X until replay will available also our A March XXXX. on Mountain XX, We want statements to these be to of a updated remind February statements anyone who of today, call. nor call may have this after not that will XXXX, today’s all XX, made been as replay are and be they listening

complete subject the differ Also, should to Except that results impact or statements These beliefs its publicly of about and reliance current expectations, any events, are changing forward-looking arise assumptions encouraged that to revise operate. circumstances, on uncertainties statements required review reason. as and forward-looking to call. undue affiliates information, expressed we to made business as forward-looking risks today future implied environment a our laws, and could more are statements actual of our Listeners for which on today’s do place could other discussion SEC are Pennant any based results. from update federal on management’s or any a our filings or securities in our by undertake and new and changes not statements factors where result not cause those materially for

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

and Group refer us to its The Pennant words Pennant, and our consolidated subsidiaries. company, Incorporated we, the

Group activities assets. are employees well subsidiaries separate, operated the as has terms use operating or by have of companies the construed and or herein assets employees meaning direct company not the of Pennant the and All consolidated revenues used subsidiaries and to Group. meant their be operating and independent we, it that today its as by imply operated are that Pennant nor and own of our terms Service should as that the The assets, are similar any us, Center management, References to our the

Also, we the is reporting GAAP in measures When of reports. more exclusion believe our complete GAAP our available that results, can we press together to metrics. our is viewed with GAAP in provide available of these relied non-GAAP should be they reconciliation non-GAAP release business, with to upon a XX-K. supplement and A GAAP understanding not yesterday’s our but

turn our I’ll to CEO. Guerisoli, the over And call Brent with Brent? that,

Brent Guerisoli

year welcome Derek, everyone XXXX our Thanks call. to full and earnings and fourth quarter

results, and residents Before and day. deep to appreciation we communities for leaders teams share local care to platform our our who across the express patients our I want each and

the success. excellence commitment Pennant’s clinical and Your is bedrock operational ethic, to kindness, work and compassion, of

We life-changing you are with to work grateful and service. alongside partner you in providing

million, margin adjusted prior year, year improvement increased prior over million XX.X% $XXX.X the to adjusted the quarter revenue our consistent results $XXX.X an throughout results $XX.X fourth X.X% $XX.X expansion teams prior the million increase improvement year. achieved the and their EBITDA quarter, million $X.X pleased the are X.X% year. prior and full our the million, local XXXX. We In over announce XX.X% $X.X and of revenue reflect and or or or operational leaders quarter adjusted over Collectively, million consolidated fourth our to improved of in with year fourth of that EBITDA over of demonstrate EBITDA by

local success responding the reflect results and inflation extraordinary of operating consistency to and resiliency. These teams, labor with our shortages

in financial double-digit average contributed including and top and line to improvement continued solid and results, health drive bottom to line hospitalization, growth. home Our leaders rating and star hospice clinical which

operational leaders in and the talented experienced transformational segment stronger clinical and living increasing who drove leaders senior Our -- in quarter. results momentum we operational added fourth change as showed XXXX

allowing improved improved remains progress, has latent our Even services senior its story line us to across living with positioned room, and drive to resulting XXXX. segment in bottom Demand still occupancy significant quality revenue performance. maintain our potential while high this each is in for accelerated, businesses, per simultaneously occupied growth well increasing

The of provide to throughout positive are improvement momentum the fourth representative upon steady we growth and we executed year. committed quarter in experienced and the that

see unlock with year as progress value pleased accountability, robust we and in leadership, service the additional the our much live tremendous are model we and of we our center we to be know can local and empowered While cluster exceptional leverage better coming opportunity culture support.

our In XXXX, clinical develop find, leaders. and class to we and efforts train enhancing world are operational

many who more in existing drive and key areas. join local leaders four us improvement will will Our talented

First, next, best growth; improved operating next, inorganic and elevated in margins; employee class organic outcomes; an finally and experience. clinical

company than Ultimately to healthcare our providing Pennant service. a is dedicated more life of changing mission

strengths for and are talents create committed entrepreneurial their to deeply We unique individuals leadership use opportunity a to to value. creating company,

align equity leaders model operating these local create cluster local to structures. Our strategic to situation partners in other their partners identify with and relevant our through the plans community, empowers incentive and

level When Officer, leaders model framework over Executive freedom an and drive as leaders period, Officer, within achieved a Clinical Our they’re local and Officer. Chief Chief owners use such of performance Chief financially exceptional operate as designations awarded clinically, their and Operating extended these when accountability C thrives to culturally. results

To organization, develop efforts committed more three recruit, leaders the let There’s a train leaders. class one we of to me redoubling Across the CEOs number clear, but accomplish in priority. lot tripling is world our the are organization developing this, and to level we my be number accomplish our organization, to next are C across years. the over

priority field within data, markets, this in a C leaders paramount the Achieving their leaders and is resources available focus on to our meaningful improving in and our future consistently results actively to to also tools areas to are and designation. on of clusters We in path improvement their order drive improvement level success operations towards success.

the earnings per to we for XXXX. share anticipate adjusted yesterday, results. XXXX growth guidance $XXX.X represents over our our of range on year of We midpoint in adjusted XXXX As and XX% the of to press growth full XX% in our million announced of we $X.XX. $X.XX range $X.XX full $XXX.X million revenue year the in earnings are The providing and release

Our upside increased is other in as informed the in pressures, the labor XXXX the health our segments, and impacts by associated guidance burgeoning existing know hospice home momentum changes, operations. the with as remains inflationary of well significant we both reimbursement our and costs

our call With operational results. that, the quarter over to I’ll to turn on detail provide fourth more John

John Gochnour

morning, and you, good Thank Brent, everyone.

in operating quarter to segments. progress both our reflected pleased are We report the that fourth meaningful

health home our to hospice and first performance. segment Turning

quarter EBITDA million the million prior $XX.X million for the revenue expanded each quarter. over or increased million Top-line and adjusted of adjusted or EBITDA of XX.X% X.X% margin $X.X $XX.X year $XX.X XX.X%, while increased

favorably home quarter each of national as continue steady XXXX. Our robust hospitalization apart admissions clinical real-time the marketplace, home continued year. health an These rating in XX.X%, set Medicare agencies business average compares admissions rose average its over accountability home X.X% admissions the excellent XX.X%. of growth to and the clinical XX.X%, star a rate CMS outcomes and us reached outcomes rose X.X health strong XX-day health and fourth our to which as contributed Quality of to

continued clinical cost in outcomes environment. planning an teams driving while on strong focus local elevated their delivering care management, improving meaningful and in efficiency episode Our progress

rewarded Finally, clusters and home to to program of program. opportunity providers, expansion for represents clinical our health for an service in home successfully drive who purchasing resources health collaborated will measured and value-based be center our prepare clinical This the teams, benefit and can CMS’s outperformance value programs.

represented quarter a a environment. in the year teams our a to strong On difficult side, operating navigate step required fourth our that hospice forward uniquely

admissions and over sequentially X.X% quarter third saw and fourth the of XXXX. over respectively, the third the census year of For a first stay prior quarter prior over this growing year over sequentially XX% The nearly the of fourth the hospice of Strong of increased each full and significant length to stay grew year our period. the fourth improvement admissions time and the X.X% year, quarter in XXXX. discharge improvement average length daily for stay X.X%, length contributed X.X% quarter quarter the quarter,

the know the hospice business, can we more of care much with and robust on pleased fundamentals progress have we and health in of we executing efficiency and home improve are performance By better. of cost the create be our we manage We our can segment, a to our performance. While our better can improve ramp continue operations. hospice delivery growth, transitioning made our

ADC are in and reflected strength of quarter despite fourth census as of our in hospice our markets. Arizona continued The we strongest growth our historically challenges Texas, grew hospice two diversity programs and

are we expect optimize we As rebound working continues growth management to to cost ramp levels stay improve normalize, markets XXXX. of care and through Similarly, these length hospice ADC to delivery. and historical to

on commitments. while efforts administrative are their to regularly direct driving teams local Our and reduce reporting meet revenue out to costs

working this also of utilization our EMR enhancing effort, employee to episode experience for productivity, technology the part to management, clinical while as the and and utilize more we As data effectively teams, experience. are we optimize improve hard

operations the organic in Finally, represents significant recently in potential each drove an these XXXX. and new continue operations completed open as on acquisitions XXXX through improvement growth for we acquired in the engine remain opportunity and we to realize growth. these our of XXXX, In markets we focused new XXXX

senior living turnaround segment. report continued to are of excited We the progress our in

and million segment million over time for $X XXX% and fourth in year XXX% These million fourth a XX.X% million, of last of revenue same-store prior quarter, have increase million Over and year the senior effort in million, over up leaders EBITDA and senior increase living opportunity. quarter. who Pennant an developing months, $X have an performance, line the million year or quarter. invested divested bottom embraced recruiting in increase increase adjusted our over extensive top driven improvement or quarter, and resources, the $X.X over Full the $XX.X or our XX.X% or prior have to living million buildings, year the XX and the segment living senior for $XX.X adjusting understand improved culture $X.X prior the and improved $XXX.X the we $X.X leaders year, prior to

continued occupied over We sequentially quarter a improvement monthly per XXX year prior of store in quarter this third our quarter, X.X% fourth or quarter Occupancy even X.X% and prior revenue sequentially communities consecutive the $XXX fourth an the $X,XXX, achieved rose as a quarter ramp, XXXX. XXXX. and $XXX a growing quarter, its for of the sequential over same improvement XX.X%, year the for basis-point to third the and over basis-point XXX occupancy over increase steady or room reached average improvement of

management cost in on portfolio. We bottom enormous and cluster improvement, living growing care in we senior improved a support, financial XXXX, for appropriate took performance through focused capturing step While rigorous organic the we remained our revenue and receiving practices significant and provide. forward exists sales reimbursement opportunity growth translating accountability, through and the accurately occupancy line

succeed segment results As it for engine in we and teams these as the Pennant’s joining senior our objectives, to living in look growth stronger create forward operating space success. will health home and our a local hospice

In important both on segments, we continue to people. asset, our most focus our

years, to the impacted turnover staffing ability levels have two grow. Over last elevated our and shortages

turnover for While and many creating life-changing difficulties set turnover the results experience. And has we pandemic responsible a for ultimately the we measured high have created not employee a have up industries, are to in our staffing role ourselves. standards across

and slowed quarter sequentially, signs declined. of the our in month of health January, clinical we have In inflation turnover increased, trends. seen and labor improvement the and hospice headcount has into Wage home fourth

will As improve, residents. us and to allow these trends we and more admit patients continue serve to

Our best becoming finding love another. employer we of local community and on each in our and leaders customer the of and the second core to one talent and teams serve are are as live committed we resolutely retaining focused choice values

growth. to Turning

to We As and acquisition home senior growth. across depth our a of pipeline markets. see health, expect our of pipeline, we robust increase we living new and hospice the opportunities platform leadership and in quality our accelerate in

in diligent strategy, stronger we the we we our relationships in healthy to in the our teams disciplined looking continue clusters our our efforts local opportunities of where broker and candidates areas As through community, executing be with acquisitions will for and leadership development opportunistic talented have growth and find program.

de continuums expand opportunity novo the care expansions in community. continue where markets also our serve have meet invest to the same and branch in we and of and to criteria locations better We

fourth the home in Nurse health one we acquisition, In Kenosha Association Visiting Wisconsin. the quarter, Kenosha, announced

has our care establishing which living need communities. area, service KVNA their XXXX KVNA, of board the living represents our opportunity the operations the to nearly with to grateful in are legacy in senior since they place We care providing continuum for us area. to independently skilled in providing Kenosha With support XXX-year of continue high-quality care by within our Pennant operated the we of the ability three entrusting an senior’s senior acquisition as age in-home

of leadership drive talented operations strength financial we health team home to quickly at executing a are With in and the hospice positioning XXXX and Milwaukee our improvement accretive KVNA, plan the on to clinical be and results. support area, strong to a

Jen it Jen? With to the over for that, I’ll financials. hand review a of

Jen Freeman

and Thank morning, you, everyone. good John,

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

the reported of the year $XXX.X ended $XX.X and prior or year. year, an $X.XX, million, X.X% total per of full diluted the million of we GAAP an For of increase XXX.X% revenue XX, over over December XXXX, earnings $X.XX prior share GAAP or increase

domestic million, total EBITDA $X.XX $X.XX, shares million, revenue per building million the earnings the between share a on and adjusted $XX million, and million was per $X.XX $XXX increase XX.X between $XXX $XX over or $X.X of our non-GAAP reminder, and Consistent was of a $XXX.X with was million. that XXXX an share diluted X.X% or a XX.X% for and of million, guidance $X.XX, between million adjusted diluted and startups $XX.X increase, full increase, guidance, earnings adjusted or $XX.X adjusted year As revenue million and of year. prior XX.X% EBITDA

for FICA Medicare million payments the impact the $X.X X.XX in full of of the debt hand December include of operations times flows months million $X.X metrics and Key quarter-end; payments. $X.X million $X.X $X the to of XXXX in and XX, cash drawn advance to year and net and related the year for million three from divested of $XX.X adjusted cash on and our ended excluding revolving at repayment million million EBITDA; on line million transfer buildings, deferred provided the credit $XX.X

(sic) our million; $X.XX revenue and $XX.X million; of XXX.X of we press $XX.X $XX.X As providing [$XXX.X] full of per are mentioned share we of adjusted earnings EBITDA in $X.XX. to million release, guidance XXXX year to adjusted million to

current a guidance XX.X organic rate. average operations growth, effective approximately of shares incorporates tax XX.X% diluted Our million outstanding and weighted and

anticipated and increase an elevated excludes is a costs rate reimbursement annual guidance ADC, rates, on XXXX adjustments share-based our health quarter-over-quarter improvements and and EPS onetime include living, unannounced Our operations, with based anticipates implementation senior ramp acquisition-related consistent and does and interest home items. hospice startup performance in occupancy and XXXX compensation, in not acquisitions unusual

in organization clinical have continue Including in our the local factors outcomes, and contemplated our across experienced guidance, into we focusing resources momentum leaders leadership culture. they will on quarter development, things the fourth previously by to the XXXX confident our we the we margin in that are drive expansion and that emphasized:

we increases onetime and to growth. expect for revenue operations improvement, reflect organic XXXX. from expenditures, in flow continued cash expect experienced bottom-line XXXX future capital We cash With by growth unencumbered the to and collections in lower in outlays cash improvement earnings, fund

couple I’ll our that, to leaders. to Brent a local with hand highlight of it And

Brent Guerisoli

few conviction my a It’s who Their be to results future have to organization, supporting Jen. pleasure elevating key and success. our local in stories leaders Thanks, that exceptional CEO to progress leaders reaffirm their our XXXX. in achieved will our spotlight

EBIT XXXX operational joined the the and the our and steadily of through example, XXXX increase environment, and Ensign operations Sacred increase in leaders in margins Officer, XX% have as and of impressive, in an versus value of have led leaders demonstrated culture choice closely increased leading Tucson choice Allmark, since. star focus collaboration Pennant more area real Pennant partnered becoming a have revenue hard Heart’s the Tucson. Care George Sacred XX-day Heart’s in provider Lipphardt Executive to with a market. an Tucson, Continuum work, rate Their by in on Heart XX% George Sacred Sacred Clinical ever Heart the an Sacred unique of has other of by intense Cassie XXX% in with meeting in Cassie’s regularly lead borne Even more Heart’s Heart and a and and They excellence by Sacred year-over-year. Officer, employer to rating Health and newly January evidenced As acquisition XXXX. in and dramatically appointed Arizona. coordinating in improved Chief Home Ensign time Chief than hospitalization X.X, inflationary these fruit family dedication

Care. leadership, at Also care Nielsen in Russell a have for environment CEO, These the Memory its residents, Dakova’s leaders senior is Sherwood QX as Sherwood’s the Living great never year-over-year. and and residents. Chief XX% and and lost in with and and attractive Tucson, performance momentum, Wellness Arizona, appointed end and in welcoming importance preferred known improved XXX levels living newly Sherwood from something QX building Throughout sight increase Assisted Sylvester EBITDAR Sherwood census XX% pandemic special a increase increasing in weathered Russell financial culture. gained community. to future for of XXXX Dakova accordingly are XXXX. reputation pre-COVID helped a local to [ph] XX% a census Sherwood XXXX, Sherwood establish of providing Village the Through Officer, to Village occupancy strong in with of XXXX,

communities Russell market living and about Arizona in Arizona XXXX. are Dakova’s excited the seeing We and senior we’re footsteps, other following

audience on open it Olivia, With the can you instruct up that, we’ll questions. Q&A for please the procedure?

Operator

line Instructions] our And first coming with Qiu of [Operator Stifel. Tao question from the

open. is line Your

Tao Qiu

full the results year. Good Hey. throughout I’m guidance. and on the curious strong just the year on this quarter Congratulations morning. the progress

second, into I the increase XX% I various last Thanks. EBITDA suggests I experience the margin saw guidance? of EBITDA adjusted assumption? of But in XX% think in light driving we that the at also growth building And that the the Could should and guidance Certainly, guidance think year, the XX on you suggests momentum you unpack components the expansion in level margin basis-point top-line maybe think on carry margin midpoint. are to the what of conservatism XXXX. improvement the that are XXXX.

Brent Guerisoli

you, Tao. let a question. I’ll Jen It’s the Thank then of specific provide And details. general provide a and Yes. great overview I’ll some

out a same account see similar into where At quarter we ramp the really tends way solid, start holiday into quarter in half in we fourth a got saw ended to bit away. mentioned, the QX gone but that’s choppier took a -- we as year, sequestration year, a quarter optimistic just really we have we year. the We’ve right, expect as it’s As strong ramp the up of and the in a what be the we’re XXXX. going little compare that to second -- And mind, keep to of more had we for we a the in we you over from quarter last XXXX time, us.

We experiencing first also reset in some quarter. other are payroll benefits and this taxes

revenue, as and of health final experienced that. as our seasonality sort We’ve the we we’ve rule season, already holiday normally a QX. we changes great -- the the the What’s of is home that that and slight surpassed did had impact through in rebounded got we though dip we in the some experience well census see levels

into And we’re the So, progress. half we’re of real starting as we roll to then, see quarter. general, that the first about momentum excited in second just

that’s expectations. kind of our So, anyway,

got well say just but revenue We’ve anticipate improvement. as from margin standpoint this, some top and significant opportunity. solid as line I’ll growth we stable incremental a

then to believe significant that conservative continue really home off sort quarter-over-quarter can that on estimates in hospice there. our the we’re kind and pretty pretty have really well talked to improvement there’s and we’re segment. margin breakout but drive as living ramp about the of that expecting, opportunity in on health factoring And improvement. take we’ve senior conservative size built We of We performance our

would other I just thing. And note one

on some have G&A also We side. the opportunities

in We in we that there. alleviate there, been continue the investments those make -- as the in see but that investments XXXX start were there’s to XXXX will -- we additional through we’re XXXX and anticipate but pandemic, spin, just necessary improvement to and transitioning, were the work percentages we’ll there also through

information? any other additional Jen,

Jen Freeman

Yes.

Tao, -- more maybe that color to just put some think around I it.

some include inflation creative did we ranges of up to growth. improved X% the through service, incremental of in cost For margins

are of So, as some of the a cost in well slight percent rent we living expecting as We’ve a improvement senior revenue improvements benefited service. side. from also on

we home our are the health and X.X% side, anticipating On home in health a decrease hospice reimbursement.

considerations on utilization, looking margin just optimization. of focused So, cost on as productivity, improvement some service side, built EMR the operational areas well that’s efficiencies, visit our in to at the caregiver our of and

And we we decline G&A the come then, see of quarter. a the as did do revenue said, to expect percentage G&A our G&A fourth on of as a Brent in year-over-year. Overall, as side, expenses percentage down revenue

Tao Qiu

is question on second my side. the hospice And

saw bounced average the was shifting impacted during length that was think the this fourth strongly quite of adversely by quarter. But this I so during stay back your refer, XXXX. we

changes about efforts talked Texas, you’re sources maybe Arizona make you and ramping could referral about you You the in any talk there, seeing? currently

John Gochnour

Yes. to happy take Tao, one. I’m that

to saw We’re in from about We Where increase we’ve more of about of is -- skilled a return fourth normalization, the census had What referrals number and community in of nursing more still see saw believe levels bit partners, patients. to XX% XXXX our we’ll is with higher a driven a what that in the the really stay. those normalization really opportunity historically a senior to perspective, is quarter referral across board. terrific. we’re expect we see we which that’s of have little excited pre-pandemic particularly and where from we living sources, and length more we who getting

needs talked that And expect so, their we’ve identify grow, little we those as And sooner. previously, better in as normalize bit. settings, to the to a that able hospice we’re continues see about normalizes, to as census

to that see census growth in the facility show particularly generally admissions hospital side and really expect that improves. patients those the change choosing for an we community that as those there’s of we’re us significantly, But partner’s stay sources, for data of about come don’t the an the the referral facilities. so, out the gained is length And improvement our how excited on during opportunity we We pandemic.

out historically we leadership focused parts census census. leaders they’ve where things good markets, on hospice called those In group of we’ve Arizona we are in, other areas. critical the Texas, and some our because bringing we is have seen and factored as been. those of transitions those traditionally them in that Through And who markets saw to decline thing got great a very back several

And so on intermountain what you you will the ramp return the normalization expect what can we see to in growth what continued view of build markets ADC. and is and and that hospice ramp markets -- to strong then performance, in our as see those prior of a we to and the Northwest west in length stay, Pacific what California, that will

Tao Qiu

on may, I one more living. question If squeezing senior

I think pretty quarter-on-quarter. was well as as year-on-year the strong rate growth

side think health relief state in because from some $X.X fund. will what you. maybe living of public some level on on in support guys get any the resident of benefited stay comment rates. the government probably they’re senior higher services do assume place move-outs, your I anticipate level in of your you also guidance? competitors million Did of base? Medicaid Thank support cost on pushback a XXXX, I emergency And and called the you support the your Could of pushing XXXX. in from think you I in

Brent Guerisoli

provider the relief I’ll Tao. questions, with start that you asked. Great question Yes.

Idaho, in for all actually is factored helped performance, the and the several state we’ll that XXXX bottom-line is that of in funding other across in our in we on with states the one our in top-line place programs remain But, still and confirmation obviously there. be have question. will is Idaho But that the There of and didn’t state elevate receive and we’ve provider really states confirmation XXXX we getting what -- that that particular, performance in. virtually received partnered -- that’s we’ve to so We that. relief, have done

we of we versus in expect overall, type impact what experienced a So, similar XXXX. XXXX in

experienced I As of elasticity we a this, say our will or it have price started probably from -- What is -- pertains occupancy of have pricing point we sort to sensitivity from incentives. the catch-up. and to

majority competitively our of are So, we priced the in markets.

we’ve seen so, earlier increased also significant we’ve occupancy this as pointed and seen we And gains. rates, the out we’ve incrementally call, -- on

so have rates continue And still and we that increase across to the those to board. plans anticipate gains we we see will

focused rent on coverage, to is there drive there provided. are that We but also are trying cares -- is our

reimbursed sure for properly And the we providing. that cares so just are being are making that, we

continued is through anticipate increases going that in feel certain to aggressive But be upside will as year, that that like some the There we likely there, down. the increases anticipating some on is -- get probably rate at we there but So, still slow same rent to are XXXX. significant still prices a experienced level. sensitivity we to the just not we

Tao Qiu

you. you. Thank Got

Operator

next from Thank question. for our our question you. One of next moment And please Stephens. coming the line Scott with Fidel

open. line is Your

Scott Fidel

factoring just in increases, trend thinking XXXX. occupancy point to are and SL sort the you up into outlook that discussion guidance? and about your on occupancy of rate you are the would then and interested in be on in follow Wanted terms And what that business last everyone. of maybe of Hi, into great. building just Hi, terms rate the

Jen Freeman

Yes.

of to the that side. the course, and breakdown The on we between overall, X% XX% -- on about to an living in be that into then, increase translate business. about margin. occupancy in and growth looking senior growth at X% would occupancy are top-line accretive of So X% would And will between our rate X% be in the rate be side would incrementally

Scott Fidel

just outlook was And cash cash your qualitative sounded flows. Okay, then on operating also in the And great. commentary pretty Jen, like, it for That’s normalization helpful. flow. positive around

for cash that in could for factoring you operating us for terms in if well as interested of you quantify as Just and CapEx are well? what flow then

Jen Freeman

Yes.

we’ll I’ll -- think our on question CapEx. first the I see with last start So,

between paid don’t the investments The to experienced some made come then for in And then, back in are on have of couple with in down million $XX or comparison and those XXXX. $X years. divested expect in And a flow, expect in community. have CapEx, one-time all last we with have expenditures that line that advance that We million XXXX payment $X.X million do the We cash we we had that, over deferral. to we improve. to FICA payments our

those So, out, cash you are looking factor at if in flow. you $XX.X million operating

So, improve improve our we that similar cash margins, looking as will line bottom improved as growth we our we flow year-over-year. at to are improve

Scott Fidel

Understood.

touched So, flow. margin And I drivers one across should expansion then, last side. of I could and just there the the on some like you on just in be cash the it one solid SL. called improvements sneak definitely the if free just know and looks some And out business margin of

For how thinking have margin example, reduction weighted the going to that interested margin flat in despite Interested you’re health Thanks. that if margin towards home you hospice more within given are XXXX? assuming SL or in is sort whether expansion in and expansion health. home rate just about just of slight to progression, in you’re HH&H

John Gochnour

improved and great commercial in been really process revenue, optimization we as the of and productivity, expect three appreciate as our out, clinical home the -- our visit modest last management. going in on to Jen will tremendous it continued be bit applies Medicare focus a episode And few a made that’s Scott, we’ll the do it’s utilization a on a segments. through with that to health We’ve to that. which we expand side, reduction we be little offset to years questions leading continue focus EMR, discussed, to margin we continue over going the the relationships are anticipate to called doing progress on expansion that’s we’ve them. and and offset all Like we focus we

to is goal care we deliver effectively as efficiently can. and as Our as

a little a so, that revenue have But growth from home down we we is can offset with what continue significant experienced. of health believe on standpoint. side tick do bit of a we’ve the Medicare that And the -- we that ramp we

strive the the admissions to and we both Medicare in choice continuing to serve. the on be provider remain strong We’re community commercial our And side of each side.

in a volume. projection little increase And the so, offset that’s in that bit by

We a And opportunity that’s of We on drive to We still then saw through improvement transitions. really for a we turnover. opportunity lot it to that expansion in levels, things. of out opportunity we As a getting XXXX. over far we last businesses in opportunity of an saw. down our margin. XXXX. It slowed like there. continue that new we you XX% on overall, expansion and real XXXX, goes the an each And margin ticked helped margin back continue the as growth. to feel two couple to us focus the about like And significant We’ll expand It years, have to gives called up like we us. employee feel of while feel we believe opportunity for XXXX, represents have acquired these pre-pandemic

to the I’d are as opportunities expansion margin those our we of out things guidance. So, some reach about call the talked in

Operator

Capital. of the Hendrix coming next Ben question our And line with from RBC

Your line is now open.

Ben Hendrix

Thank you.

rate ‘XX impact strong Just a implied census. the another on all end rate the of your and had rate the quarter competitors pretty which the stay kind this you side, just baked And morning year of of into on expectations progression what -- of appreciate hospice? question for for at the was hospice. of for year. guys quick on But wondering this I would update Thanks. your one third color ‘XX or fiscal length

Brent Guerisoli

Yes.

So, of the what’s we in guidance. known including approach kind the take of

above adjustment rule. did And any from final X% in the not so the we XXXX bake significant increase

represents also that for so, us. upside And potential

Operator

And I’m time. no you. Thank further questions at showing this

Brent Guerisoli

joining Olivia, you, thank us everyone you thank great have Well, and We today. a hope day. you for

Operator

today. conference for conclude you does our gentlemen, that Ladies your and Thank for participation.

may disconnect. You now

The Pennant Group, Inc. (PNTG) 24 Feb 232022 Q4 Earnings call transcript