The Pennant Group, Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. Total revenue for the three months reached $180.7 million, marking a 28.9% increase from $140.2 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $506.3 million, up 26.9% from $398.9 million in the prior year. This growth was driven primarily by increased revenue from home health and hospice services, which rose to $135.7 million in Q3 2024 from $101.5 million in Q3 2023, and from senior living services, which increased to $45.0 million from $38.7 million.
Despite the revenue growth, total expenses also rose significantly, with Q3 2024 expenses totaling $169.9 million compared to $133.1 million in Q3 2023. For the nine-month period, expenses increased to $477.5 million from $381.3 million. The company's income from operations for Q3 2024 was $10.8 million, up from $7.1 million in Q3 2023, while net income for the quarter increased to $6.7 million from $4.5 million year-over-year.
The company’s balance sheet showed total assets of $646.8 million as of September 30, 2024, up from $539.7 million at the end of 2023. Long-term debt also increased significantly, rising to $108.9 million from $63.9 million. Retained earnings grew to $51.5 million, up from $34.7 million at the end of 2023, and total stockholders’ equity increased to $169.4 million from $140.3 million.
Strategically, Pennant Group expanded its operations by acquiring eight home health agencies, three hospice agencies, and three senior living communities during the nine months ended September 30, 2024. The company also closed a joint venture with John Muir Health, acquiring a 60% controlling interest in a home health business. The aggregate purchase price for these acquisitions was substantial, with significant goodwill recognized.
The company continues to operate 122 home health and hospice agencies and 54 senior living communities across 12 states. The average monthly revenue per occupied unit in senior living services increased to $4,836, reflecting a rise in occupancy rates. The company anticipates fluctuations in occupancy and costs due to ongoing acquisitions and operational adjustments.
Overall, The Pennant Group, Inc. demonstrated robust growth in revenue and profitability, alongside strategic expansions through acquisitions, despite rising expenses and increased debt levels.
About Pennant Group, Inc.
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