The Pennant Group, Inc.

Thank you for standing by. Welcome to the Pennant Group first quarter 2025 earnings poll. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. I would now like to hand the conference over to your speaker today, Kirk Cheney, Executive Vice President.

Thank you, Josh. 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 Walden, 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 May 6, 2026. We want to remind anyone who may be listening to a replay of this call that all statements are made as of today, May 7, 2025, 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. Except as required by federal securities laws, tenant and its affiliates 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 PANIC group incorporated the holding company with no direct operating assets, including 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 with such subsidiaries. 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 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 10Q and 10K. And with that, I will turn the call over to Brent Garasoli, our CEO. Brent?

Thanks, Kirk. Good morning everyone and welcome to our first quarter 2025 earnings call. To begin, I want to recognize all the contributions and efforts of our incredible partners across the Pennant footprint. Always, but especially in periods of dramatic growth, the work our teams do can be demanding. I am so inspired to see our people daily rising to the challenge. We are pleased to report another record-breaking quarter with strong performance across our business, resulting in revenue of $209.8 million, an increase of $52.9 million or 33.7% over the prior year quarter, consolidated adjusted EBITDA of $16.4 million, an increase of $5.1 million or 45.9% over the prior year quarter, and adjusted diluted earnings per share of 27 cents, an increase of 7 cents or 35% over the prior year quarter. Our first quarter success can be attributed to our consistent focus on five key initiatives, leadership development, clinical excellence, employee experience, margin improvement, and growth. As we make progress in each of these areas, flywheel also continues to turn in each of our business segments allowing us to opportunistically add and transition new operations as our existing operations drive strong performance and organic growth this is primarily a product of our innovative operating model and multi-year focus on leadership development and building a robust pipeline of leaders as we've explained before Pennant is a leadership company committed to providing life-changing opportunities for local leaders to achieve C-level performance in their operations and become owners in Pennant. Our local CEOs and other C-level leaders earn this designation by demonstrating true ownership and creating clinical, financial, and cultural value. In the process, they typically generate higher annual earnings than our non-CEO executive directors, along with better clinical and cultural outcomes. Since January of last year, 52 local leaders earned C-level designations in their operations, including 19 local CEOs. In 2025, we are ahead of our year-to-date goals to recruit CEOs in training and elevate clinical leadership through our Clinical Operations Leadership Training Program. By investing in our leaders and continuously recruiting new ones, we position ourselves to be ready when unique and compelling situations arise. For example, in January, we completed the second stage of the Signature Healthcare Transaction, which included several locations across Oregon. At Signature, as in all our transitions, our first focus has been on leadership and culture. Signatures leaders have joined clusters with existing tenant leaders, allowing them to share best practices and peer accountability. Leveraging tenant's locally driven operating model, signatures operations have quickly and successfully integrated, and as a result, the signature transition is ahead of schedule. We have proven countless times over many years that our model works well when applied to single site or tuck-in acquisitions. And the signature experience is proving that it also works well at scale in multi-site and platform acquisitions. What is notable about our recent performance is that we achieved these tremendous results in the midst of adding 36 new operations since January of 2024 across both business segments and most of our markets. Many of these acquisitions are already performing above our initial expectations. Based on our strong performance in Q1, the early progress we're seeing in our recent acquisitions and the continued momentum we're experiencing across our businesses, we would point you to the upper end of our 2025 guidance range. As we continue to monitor our results and navigate economic uncertainties, we will revise guidance as appropriate. Now, I'll turn the call over to John Gochner, our President and COO, to provide more detail on our first quarter operational results. John?