As the pandemic challenges that affected first-quarter results lingered into the second quarter, Pennant Group CEO Daniel Walker said Tuesday that opportunities across its portfolio leave him optimistic for future growth.
The Pennant Group saw total revenue of $110.3 million for the second quarter, an increase of $17.6 million or 19% over the prior year quarter, the company reported in Tuesday’s earnings call.
The confluence of COVID-19 cases peaking in January across the country and a severe winter storm in Texas during the first quarter had a noticeable effect on The Pennant Group’s senior living segment. But Chairman and CEO Daniel Walker said during a first-quarter earning call on Friday that the “historic and unique quarter” also provided an opportunity to further develop its leadership teams.
The Pennant Group told analysts Friday the company’s home health and hospice units should continue to outperform its beleaguered senior living segment over the next several months.
Amid a flurry of first-quarter earnings reports released last week, several senior living operators and real estate investment trusts announced a start to occupancy uptick and possible post-pandemic growth.
In the midst of a “challenging operating environment” for senior living, The Pennant Group does not plan to allocate capital for acquisitions in the sector in the near term “as our leaders focus their efforts on navigating the challenges of the pandemic and driving improved results in our existing buildings,” Chairman and CEO Danny Walker said Thursday on the holding company’s fourth-quarter and full-year 2020 earnings call.
Amid a flurry of fourth-quarter and year-end earnings reports released this week, several senior living operators and real estate investment trusts announced moves aimed at harnessing long-term growth, diversification and profitability post pandemic.
Senior living’s appropriate place in the care continuum and its importance in improving care outcomes have risen more prominently as discussion topics thanks to the COVID-19 pandemic, says Derek Bunker, chief investment officer of the Pennant Group.
Occupancy declines in the early months of the COVID-19 pandemic were replaced by slight occupancy increases as the Pennant Group’s Pinnacle senior living business produced strong results into the third quarter, according to Chairman, CEO and President Daniel Walker.
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.
