The Pennant Group, Inc.

Good day and thank you for standing by. Welcome to the Pennant Group third quarter 2024 earnings 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. To withdraw your question, please press star 1 1 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. Please go ahead.

Thank you, Darian. Welcome, everyone, and thank you for joining us today. Here with me today, I have Frank Garasoli, our CEO, John Gochner, our president and COO, and Lynette Waltham, our CFO. Before we begin, I have a few housekeeping matters. We filed our earnings press release in 10-2 yesterday. This announcement is available on the investor relations section of our website at www.pennigroup.com. A replay of this call will also be available on our website until 5 p.m. Mountain Time on November 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, November 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 and assumptions 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. This 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, changing circumstances, or for any other reason. In addition, the Payment 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 administrative services to the other operating subsidiaries due to contractual relationships with such subsidiaries. The words Pennant, Company, We, Our, and Us refer to the Pennant Group, Inc., and its consolidated subsidiaries. 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 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 Pennant Group. Also, we supplement our GAAP reporting with non-GAAP metrics. When we look at 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 10K. And with that, I'll turn the call over to Brent Garrisoli, our CEO. Brent?

Thanks, Kirk, and welcome, everyone, to our third quarter 2024 earnings call. We are pleased to report another record-breaking quarter with strong results across our business. We are so grateful for the more than 7,000 amazing team members throughout the organization. Through their dedicated efforts, our leaders and teams drove new highs in revenue, census, and earnings, and our businesses are healthy and growing. Collectively, our Q3 consolidated results reflect revenues of $180.7 million, an increase of $40.5 million or 28.9% over the prior year quarter. Adjusted EBITDA also grew significantly to 15.7, an increase of $4.3 million or 39.2% over the prior year quarter. Adjusted earnings per share for the quarter was $0.26, an increase of $0.06 or 30% over the prior year quarter. These results reflect our ongoing commitment to the five key focus areas we have highlighted throughout the year. Leadership development, clinical excellence, employee experience, margin improvement, and growth. We are a leadership company, and developing local leaders remains at the heart of our operating model. As the talent and experience in our operations and clusters deepens, with strong portfolio companies in our efforts throughout our footprint, we are able to more quickly improve new acquisitions and grow seasoned operations. Thus, the significant investment we have made in our leadership and development programs is the catalyst for enduring momentum. This investment continues. As year to date, we have added over 60 CEOs in training and elevated nearly 40 internal clinical leaders in our newly expanded clinical leadership development program. Shortly after quarter end, We added more fuel to our growth engine in the form of a follow-on equity offering. The purpose of this offering, which follows the expansion of our revolving credit facility in August, is to prudently manage our balance sheet and give us additional capital to grow. It was our pleasure during the marketing process to introduce new investors to the Pennant story and help them catch the vision of the significant opportunities that exist in our platform and potential for future growth. Now, with zero debt and abundant dry powder, we are well positioned to execute on the second portion of the signature purchase and the robust acquisition opportunities in our pipeline. Based on this sustained momentum in our business, we are again raising annual guidance. We anticipate annual adjusted revenue of $665.3 million to $706.5 million. 28.5% increase over 2023 at the midpoint, adjusted EBITDA of 51.9 million to 55.2 million, a 31.5% increase over 2023 at the midpoint, and adjusted earnings per share of 90 to 96 cents, a 27.4% increase over 2023 at the midpoint. With that, I'll turn the call over to John to provide more detail on our third quarter operational results.