The Pennant Group, Inc.

Good day and thank you for standing by. Welcome to the Penn and Group second quarter 2024 earnings 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'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Kirk Cheney, Corporate Secretary. Please go ahead.

Thank you, Rivka. 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 Lynette Waldom, our CFO. Before we begin, I have a few housekeeping matters. We filed our earnings press release in 10Q yesterday. This announcement is available on the investor relations section of our website at www.pennantgroup.com. A replay of this call will also be available on our website until 5 p.m. Mountain Time on August 6, 2025. We want to remind anyone who may be listening to a replay of this call that all statements made are as of today, August 7, 2024, and these statements will not 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. Debt is required by federal securities laws we do not undertake to publicly update or revise any forward-looking statements where changes arise from new information, future events, or for any other reason. In addition, the Pennant Group, Inc. is a holding company with no direct operating assets, employees, or revenues. Certain of our independent subsidiaries, collectively referred to as the service center, provide accounting, payroll, human resources, information technology, legal risk management, and other services to the other operating subsidiaries through contractual relationships. The words Pennant, Company, We, Our, and Us refer to the Pennant Group, Inc. 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 do not imply that the Pennant Group, Inc. has direct operating assets, employees, or revenue, or that any of the subsidiaries are operated by the tenant 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. A GAAP to non-GAAP reconciliation is available in yesterday's press release and is available in our 10-K. With that, I'll turn the call over to Brent Garasoli, our CEO. Brent?

Thanks Kirk, and welcome everyone to our second quarter 2024 earnings call. Following a robust first quarter, we are thrilled to report record-breaking second quarter results as we continue to experience momentum across each of our service lines and create meaningful growth opportunities for local leaders and teams. Our financial performance and growth trajectory reflect the consistent effort we have applied to every aspect of our business through our five key focus areas, leadership development, clinical excellence, employee engagement, margin, and growth. We have been talking about these initiatives on our earnings calls for many quarters, but the tangible financial fruits of these efforts are now coming to bear. In Q2, we generated revenue of $168.7 million, adjusted EBITDA of $13.2 million, and adjusted earnings per share of 24 cents, each exceeding the top end of consensus. These results are the product of a relentless focus on fundamental, steady, incremental improvement and a prudent yet proactive approach to growth as we build a leadership pipeline. They also demonstrate the firm foundation we have laid over the last several years and upon which we are now positioned to build. We are experiencing an exciting time in our history as both organic and acquisitional growth are at all-time highs. This period of expansion provides insight into our potential as a provider of choice in our local communities, a best-in-class operator across our industries, and a disciplined yet bold growth company with the sophistication and adaptability to become a key solution in the healthcare continuum. Since the beginning of the year, we have entered into the Muir Home Health joint venture, closed an additional two home health and two hospice transactions, initiated a management agreement with Hartford Healthcare, announced the largest acquisition in our history in signature home healthcare, and completed three senior living deals, two of which included the purchase of real estate assets. In the process, we've added more than 2,200 lives under the Pennant umbrella through acquisitions and organic growth, along with approximately 4,000 lives under the Hartford Management Agreement. Collectively, this represents a greater than 50% increase in the number of lives we touch each day as compared to the end of 2023. And this does not include the impact of the signature transaction, which will add an additional 2,500 lives. Last week, we also announced our newly-upsized revolver, which increases our borrowing capacity to $250 million and improves the covenants and other loan terms. This amended facility further reinforces our balance sheet and, together with our strong operating cash flow, creates significant dry powder for future growth. This transaction was completed with a syndicate of banking partners whose commitment demonstrates their continued confidence and tenants' growth strategy. As announced in yesterday's press release, we are raising annual guidance based on the momentum in the business, the operations we have added or expanded, and the significant upside we know remains in our existing operations. We anticipate full-year revenue in the range of $654 million to $694.5 million and adjusted earnings per share in the range of 89 cents to 95 cents. The midpoint of 92 cents represents a 5.7% increase over our original 2024 guidance, a 26% increase over our 2023 adjusted earnings, and a 61.4% increase over our 2022 adjusted earnings. With solid performance across the portfolio, capable leaders ready to seize opportunities, and a healthy balance sheet, we are excited for the remainder of 2024 and beyond. With that, I'll turn the call over to John to provide more detail on our second quarter operational results.