After already increasing its 2020 annual adjusted earnings per share guidance by approximately 34% in its second quarter earnings release, the Pennant Group again revised upward Tuesday, to a range of 75 cents to 80 cents per share.
In its third-quarter earnings report, the firm also announced 2021 annual revenue guidance of $430 million to $440 million and annual adjusted earnings per share guidance of 89 cents to 99 cents per share to $0.99, which represent increases of 14.2% and 21.3%, respectively, over its revised 2020 annual guidance.
The Eagle, ID-based company also pointed to its strong balance sheet and liquidity as being key features of its ability to weather the ongoing pandemic. Total revenue for the quarter was $98.4 million, an increase of $10 million or 11.3% over the third quarter of 2019. Within its Pinnacle senior living segment, revenue was $34 million, an increase of $0.8 million or 2.4% over the prior-year quarter.
Further, the Pennant Group ended the third quarter with $8.3 million cash on hand and $70 million availability on its $75 million revolving line of credit. These results and cash position do not include any funds from the Provider Relief Fund established through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which the firm rejected and returned during the second quarter.
“Our leverage ratios continue to improve, further bolstering our already strong balance sheet,” noted Pennant Chief Financial Officer Jennifer Freeman. “We continue to produce consistent cash flows and remain disciplined about recycling that cash into new investment opportunities at attractive rates. We are pleased with the progress we’ve made since the spin-off from Ensign on our credit and capital positions, which provide increased capacity for strategic growth in the near and mid term.”
See additional McKnight’s Senior Living coverage of Pennant’s third-quarter earnings here.