The Pennant Group and National HealthCare Corp. provided quarterly financial updates Friday to stakeholders.
The Pennant Group
The first quarter brought “solid revenue and census growth” for Eagle, ID-based Pennant Group, CEO Brent Guerisoli said on Friday’s earnings call. The real estate investment group saw growth in each of its primary lines, he said.
The company reached an all-time high in home health and hospice services, Guerisoli noted. Total home health admissions were 10,910 for the first quarter, an increase of 728, or 7.1%, over the prior year quarter. Total Medicare home health admissions were 4,948 for the first quarter, an increase of 315, or 6.8%, over the prior year quarter. This represents the fifth consecutive quarter of occupancy improvement in.
Segment revenue for the first quarter was $91.1 million, an increase of $10.6 million or 13.2% over the prior year quarter.
The day before the earnings call, The Pennant Group announced that it had acquired Benefit Home Healthcare and Benefit By Your Side, which provides skilled home health, private duty and community health services in Colorado Springs, CO.
“We are pleased to expand our home health operations deeper into the state of Colorado,” Guerisoli stated in Thursday’s press release. “Benefit will be a great partner to our affiliates in the area as we further expand the continuum of care and provide life-changing service to the residents of Colorado Springs and its surrounding communities.”
The company’s senior living services segment revenue for the first quarter was $35.4 million, an increase of $2 million, or 5.8%, over the prior year quarter. Average occupancy for the first quarter was 78.1%, an increase of 550 basis points over the prior year quarter. Average monthly revenue per occupied room for the first quarter was $3,846 an increase of $475 or 14.1% over the prior year quarter.
Overall, first-quarter earnings reflect revenue of $12.6 million, or 11%, over the prior year quarter. Net income for the first quarter was $1.9 million, an increase of $0.8 million, or 82.4%, over the prior year quarter. Adjusted net income of the first quarter was $3.8 million, an increase of $0.5 million, or 15.6%, over the prior year quarter.
“With the benefit of the positive momentum built over the last several quarters, we remain on track to deliver on our 2023 earnings commitments,” Guerisoli said.
He said the company will achieve the goals through priorities identified in its February earnings call; namely, leadership development, margin, turnover, growth and clinical excellence.
National HealthCare Corp.
Murfreesboro, TN-based National Healthcare ended the first quarter with net operating revenues and grant income totalling $269.56 million compared with $278.983 million in the same quarter last year. That’s a decrease of 3.4%, the company said in a Friday update.
According to NHC, the decrease primarily was driven by the reduction in government stimulus income of $10.6 million compared with the first quarter of 2022. Additionally, the company exited seven skilled nursing facilities in Massachusetts and New Hampshire during the third quarter of 2022.
Excluding the government stimulus income and those seven skilled nursing facilities, same-facility net operating revenues increased 7.1% during the first quarter of 2023 compared with the same period a year ago, NHC said.
In a separate press release issued Thursday, NHC announced a 3.5% Increase in common dividend over last quarter. NHC will pay a quarterly dividend of $0.59 per common share to shareholders of record on June 30 and payable on July 31.
NHC affiliates operate for themselves and third parties 68 SNFs with a total of 8,732 beds. NHC affiliates also operate 23 assisted living communities with a total of 1,181 units, five independent living communities with 475 units, three behavioral health hospitals, 34 home care agencies and 30 hospice agencies.