The Pennant Group, Inc.

Good day and thank you for standing by. Welcome to the Pennant Group conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Derek Bunker. Please go ahead.

Thank you, Corey, and welcome, everyone. Thank you for joining us today. Here with me today are Brent Garasoli, our CEO, John Dockner, our president, and Jen Freeman, our CFO. Before we begin, I have a few housekeeping matters. We called the earnings press release and 10Q yesterday. This announcement is available on the investor relations section of our website at www.penninggroup.com. The replay of this call will also be available on our website until 5 p.m. Mountain Time on Friday, December 9, 2022. We want to remind anyone that may be listening to a replay of this call that all statements made are as of today, November 8, 2022, and these statements have not been nor will they be updated subsequent to today's call. Also, any forward-looking statements made today are based on management's current expectations, assumptions, and beliefs about our business and the environment in which we operate. These statements are subject to risks and uncertainties that could cause our actual results to materially differ from those expressed or implied on today's call. Listeners should not place undue reliance on forward-looking statements and are encouraged to review our SEC filings for a more complete discussion of factors that could impact our results. Except as required by federal securities laws, the tenant and its affiliates do not undertake to publicly update or revise any forward-looking statements where changes arise as a result of new information, future events, changing circumstances, or for any other reason. In addition, the tenant group is the holding company with no direct operating assets, employees, or revenues. Certain of our independent subsidiaries, collectively referred to as a service center, provide accounting, payroll, HR, IT, legal, risk management, and other services to the other operating subsidiaries through contractual relationships with such subsidiaries. The words tenant, company, we, our, and us refer to the tenant group, Inc., and its consolidated subsidiaries. All of our operating subsidiaries in the service center are operated by separate independent companies that have their own management employees and assets. References herein to the consolidated company and its assets and activities, as well as the use of the terms we, us, and our, and similar terms used today are not meant to imply, nor should it be construed as meaning, that the tenant group has direct operating assets, employees, or revenue, or that any of the subsidiaries are operated by the tenant group. Also, we supplement our gap reporting with non-gap metrics. When viewed together with our GAAP results, we believe that these measures can provide a more complete understanding of our business, but they should not be relied upon to the exclusion of GAAP reports. A GAAP to non-GAAP reconciliation is available in yesterday's press release and in our 10-Q. With that, I'll turn the call over to Brent Carasoli, our CEO.

Thanks, Derek, and welcome, everyone, to our third quarter 2022 earnings call. Thank you for joining us today to discuss our quarterly results. Again, I'd like to recognize our frontline workers, staff, and leaders in Pennant who sacrifice every day and provide life-changing service across the communities we serve. As we've detailed over the last several quarters, we continue to build long-term foundational strength through several key efforts. First, we are focused on recruiting and developing CEO-level healthcare leaders equipped with Pennant best practices to accelerate our next phase of growth Second, we are investing in people, systems, and data tools designed to improve the ability of our local teams to respond to the unique needs of our healthcare communities. These are ongoing processes designed to build the engine that will drive outsized performance for many years to come. While this quarter's earnings didn't fully reflect the progress we expected as we navigated continued wage pressures, full sequestration, and a softer hospice ADC, We're seeing notable progress as measured by revenue, admissions, occupancy, and cash flow. We're seeing strength build in many of our markets and clusters. We are on track to make significant improvement in the second half of 2022 and are positioned to produce strong results going into 2023. We have substantial latent potential in our existing operations. We've been improving our cash flow and balance sheets. and we are beginning to return to the brisk pace of strategic acquisitions that we've executed on for much of our history. We know where we are going, how to get there, and we are excited about the progress we're making toward operational excellence and our ability to generate and deploy cash toward a creative growth in an active M&A landscape. As we mentioned in our press release yesterday, we are revising our guidance for full year 2022 in light of the pressures mentioned earlier. However, our updated guidance demonstrates confidence in our momentum through the end of the year and into 2023. We are encouraged by improvements in our recently acquired operations and believe there remains significant opportunity to drive better earnings as we continue to acquire high-quality assets and execute with discipline around our core opportunities. We look forward to tackling the many strategic and organic growth opportunities before us. At this point, I've asked John Gochner to provide an update on operational and investment results.