The Pennant Group, Inc.

Thank you, Livia. Welcome, everyone, and thank you for joining us today. Here with me today, I have Brent Garasoli, our CEO, John Gochner, our president and COO, and Jen Freeman, our interim CFO. Before we begin, I have a few housekeeping matters. We filed our earnings press release and 10-K yesterday. This announcement is available on the investor relations section of our website at www.tenantgroup.com. A replay of this call will also be available on our website until 5 p.m. Mountain on March 24, 2023. We want to remind anyone who may be listening to a replay of this call that all statements made are as of today, February 24, 2023, and these statements have not been nor will they be updated after 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, Pennant 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 Pennant Group Incorporated is a 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, human resources, information technology, legal, risk management, and other services to the other operating subsidiaries through contractual relationships with such subsidiaries. The words Pennant Company, we, our, and us refer to the Pennant Group Incorporated and its consolidated subsidiaries. All of our operating subsidiaries and 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, our, and similar terms used today are not meant to imply nor should it be construed as meaning that the Pennant Group Incorporated has direct operating assets, employees, or revenues, or that any of the subsidiaries are operated by the Pennant Group. Also, we supplement our GAAP reporting with non-GAAP 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. The GAAP to non-GAAP reconciliation is available in yesterday's press release and is available in our 10-K. And with that, I'll turn the call over to Brent Garasoli, our CEO. Brent?

Thanks, Kirk. And welcome, everyone, to our full year and fourth quarter 2022 earnings call. Before we share our results, I want to express deep appreciation to the local leaders and teams who care for our patients and residents and communities across our platform each day. Your kindness, compassion, work ethic, and commitment to excellence is the bedrock of Penn's operational and clinical success. We are grateful to work alongside you and partner with you in providing life-changing service. We are pleased to announce fourth quarter results that demonstrate the consistent operational improvement our local leaders and their teams achieved in the fourth quarter and throughout 2022. Collectively, our full-year consolidated results reflect revenue of $473 an increase of $33.5 million or 7.6% over the prior year, and adjusted EBITDA improvement of $5.1 million or 19.5% over the prior year. In the fourth quarter, revenue increased $12.9 million to $124.7 million, and our adjusted EBITDA improved by $4.9 million or 98.3% over prior year, with adjusted EBITDA margin expansion of 3.5% over the prior year. These results reflect the success of our local operating teams, responding to extraordinary inflation and labor shortages with consistency and resiliency. Our home health and hospice leaders continue to drive solid clinical and financial results, including improvement in average star rating and hospitalization, which contributed to double digit top line and bottom line growth. Our senior living segment experienced transformational change in 2022, as we added talented operational leaders and operational and clinical leaders who drove stronger results and showed increasing momentum in the fourth quarter. Demand for our high-quality senior living services has accelerated, allowing us to drive improved occupancy while simultaneously increasing revenue per occupied room, resulting in improved bottom-line performance. Even with this progress, significant latent potential still remains across our businesses, and each segment is well positioned to maintain its growth story in 2023. The growth and positive momentum we experienced in the fourth quarter are representative of the steady improvement that we committed to provide and executed upon throughout the year. While we are pleased with the progress, we know we can be much better and see tremendous opportunity to unlock additional value in the coming year as we live our culture and leverage our model of empowered local leadership, robust cluster accountability, and exceptional service center support. In 2023, We are enhancing our efforts to find, train, and develop world-class operational and clinical leaders. Our existing talented local leaders and many more who will join us will drive improvement in four key areas. First, best-in-class clinical outcomes. Next, improved operating margins. Next, organic and inorganic growth. And finally, an elevated employee experience. Tenet is more than a healthcare company dedicated to our mission of providing life-changing service. We are a leadership company, deeply committed to creating opportunity for entrepreneurial individuals to use their unique talents and strengths to create value. Our operating model empowers these leaders to identify partners in the local community, create strategic plans relevant to their local situation, and align with other cluster partners through our incentive and equity structures. Our model thrives when local leaders use their freedom within a framework of accountability to operate as owners and drive exceptional performance clinically, financially, and culturally. When leaders achieve these results over an extended period, they are awarded C-level designations such as chief executive officer, chief clinical officer, and chief operating officer. There is a lot to accomplish across the organization, but let me be clear. Developing C-level leaders is my number one priority. Across the organization, we are committed to tripling the number of CEOs in our organization over the next three years. To accomplish this, we are redoubling our efforts to recruit, train, and develop more world-class leaders. We are also actively improving the data, tools, and resources available to our field leaders in order to drive meaningful improvement within operations clusters and markets and to consistently focus leaders on their results. and areas of improvement on their path towards a sea level designation. Achieving success in this priority is paramount to our future success. As we announced in our press release yesterday, we are providing guidance for the full year of 2023. We anticipate full year revenue in the range of $503.5 million to $518.4 million and adjusted earnings per share in the range of 66 to 76 cents. The midpoint of 71 cents represents 25% growth on our 2022 adjusted earnings and 54% growth over our 2021 results. Our 2023 guidance is informed by the burgeoning momentum in both our segments, the impact of the home health and hospice reimbursement changes, increased costs associated with labor and other inflationary pressures, as well as the significant upside we know remains in our existing operations. With that, I'll turn the call over to John to provide more detail on our fourth quarter operational results.

Thank you, Brent, and good morning, everyone. We are pleased to report that the fourth quarter reflected meaningful progress in both our operating segments, turning first to our home health and hospice segment performance. Top line revenue for the quarter of $90.7 million increased $12.8 million, or 16.4%, while adjusted EBITDA of $15.5 million increased 4.3 million, or 38.5%, and adjusted EBITDA margin expanded 2.7% each over the prior year quarter. Our home health business continued its strong year. Quality clinical outcomes and robust accountability continue to set us apart in the marketplace, as our agencies reached an average CMS star rating of 4.3 and a real-time 60-day hospitalization rate of 12.1%, which compares favorably to the national average of 14.7%. These excellent clinical outcomes contributed to steady admissions growth as home health admissions rose 8.2% and Medicare home health admissions rose 10.6% each over the fourth quarter of 2021. Our local teams continued their focus on care planning and episode management, driving meaningful progress in delivering strong clinical outcomes while improving efficiency in an elevated cost environment. Finally, our clinical team, service center resources, and clusters collaborated to prepare for the expansion of CMS's home health value-based purchasing program. This program will benefit providers who can successfully drive clinical outperformance and represents an opportunity to be measured and rewarded for value in our home health programs. On the hospice side, our fourth quarter represented a strong step forward in a year that required our teams to navigate a uniquely difficult operating environment. For the full year in the fourth quarter, admissions grew 6.4% and 2.4% respectively, each over the prior year period. The fourth quarter saw significant improvement in hospice length of stay for the first time this year. The discharge length of stay increased nearly 10% sequentially over the third quarter of 2022. Strong admissions and length of stay improvement contributed to our fourth quarter average daily census growing 5.2% over the prior year quarter and 3.5% sequentially over the third quarter of 2022. While we are pleased with the progress we have made in our home health and hospice segment, we know our performance can be much better. By executing on the fundamentals of our business, we can improve performance. We can create a more robust ramp of hospice growth, better manage the cost and efficiency of our care delivery, and continue to improve our transitioning operations. The strength and diversity of our hospice programs are reflected in our fourth quarter ADC growth. as we grew census despite continued challenges in Arizona and Texas, two of our historically strongest hospice markets. As these markets rebound to historical levels and length of stay continues to normalize, we expect hospice ADC growth to ramp through 2023. Similarly, we are working to improve cost management and optimize care delivery. Our local teams are reporting out regularly on efforts to reduce direct and administrative costs while driving revenue to meet their commitments. As part of this effort, we are working hard to optimize the EMR experience for our clinical teams as we more effectively utilize technology and data to improve episode management, utilization, and productivity, while also enhancing the employee experience. Finally, we continue to realize the organic growth potential in new markets open through acquisitions completed in 2021 and 2022. In 2022, we drove improvement in these recently acquired operations and we remain focused on the significant opportunity each of these new operations represents as an engine for our 2023 growth. We are excited to report continued progress in the turnaround of our senior living segment. Over the last 18 months, we have invested extensive time and effort in recruiting and developing senior living leaders and resources who understand our culture and have embraced dependent opportunity. These leaders have driven improvement in our top and bottom line performance. Adjusting for divested buildings, same-store senior living segment revenue improved to $126.8 million, an increase of $12.8 million, or 11.2% over the prior year, and $33.2 million in the fourth quarter, a $3.5 million, or 11.8% increase over the prior year quarter. Full-year senior living segment adjusted EBITDA improved to $6 million, a $4.4 million, or 282% increase 282% increase over the prior year, and 2 million for the fourth quarter, an increase of 1.3 million or 171% over the prior year quarter. Occupancy continued its steady ramp, growing for a fourth consecutive sequential quarter and reached 78.6%, a 330 basis point improvement in our same store communities over the prior year quarter, and 100 basis point improvement sequentially over the third quarter of 2022. We achieved this occupancy improvement even as average monthly revenue for occupied room for the fourth quarter rose to $3,670, an increase of $282 or 8.3% over the prior year quarter and $113 or 3.2% sequentially over the third quarter of 2022. While we took a significant step forward in 2022, enormous organic growth opportunity exists in our senior living portfolio. We remain focused on translating revenue improvement to bottom-line financial performance through rigorous cost management and cluster accountability, growing occupancy through improved sales practices and support, and accurately capturing and receiving appropriate reimbursement for the care we provide. As our local teams succeed in these objectives, we will create stronger operating results in the senior living space and look forward to adjoining our home health and hospice segment as a growth engine for pennant success. In both segments, we continue to focus on our most important asset, our people. Over the last two years, elevated turnover levels and staffing shortages have impacted our ability to grow. While the pandemic has created a role in staffing difficulties and turnover across many industries, we are ultimately responsible for creating a life-changing employee experience, and our turnover results have not measured up to the high standards we have set for ourselves. In the fourth quarter and into the month of January, we have seen signs of improvement in our labor trends. Wage inflation slowed sequentially, clinical headcount increased, and home health and hospice turnover has declined. As we continue to improve, these trends will allow us to admit and serve more patients and residents. Our local leaders and teams are committed to becoming the employer of choice in each community we serve and are resolutely focused on finding and retaining the best talent as we live our core values of customer second and love one another. Turning to growth. As we increase the quality and depth of our leadership pipeline, we expect to accelerate our growth. We see a robust pipeline of acquisition opportunities in home health, hospice, and senior living across our platform and in new markets. As we find opportunities through the efforts of our local teams and our strong relationships with the broker community, we will continue to be disciplined and diligent in executing our growth strategy, looking for opportunistic acquisitions in areas where we have healthy clusters and talented candidates in our leadership development program. We also continue to invest in de novo locations and branch expansions in markets where we meet these same criteria and have opportunity to expand our continuums of care and better serve the community. In the fourth quarter, we announced one home health acquisition, the Kenosha Visiting Nurse Association in Kenosha, Wisconsin. We are grateful to the Board of KV&A, which had operated independently since 1927, for entrusting us with their nearly 100-year legacy of providing high-quality in-home care in the Kenosha area. With three of our senior living operations in the KV&A service area, the acquisition represents an opportunity to continue establishing our tenant care continuum as we support seniors' ability to age in place by providing the skilled care they need within our senior living communities. With a talented leadership team and the support of our strong home health and hospice operations in the Milwaukee area, we are executing on a plan to quickly drive financial improvement and clinical strength at KV&A. positioning it to be accretive to 2023 results. With that, I'll hand it over to Jen for a review of the financials. Jen?