Filing Summary
Business Context and Reporting Period
The Pennant Group, Inc. filed a Form 8-K on November 12, 2019, under Items 2.02 and 9.01. The filing reports that the company issued a press release covering financial results for the third quarter ended September 30, 2019. The referenced press release is not included in the provided filing text.
Financial Metrics
The filing text does not provide clear values for revenue, net income, earnings per share, cash flow, margins, debt, liquidity, or other financial metrics. It indicates that the press release discusses GAAP results and the following non-GAAP measures:
- Combined EBITDA
- Combined Adjusted EBITDA
- Combined Adjusted EBITDAR
- Segment Adjusted EBITDA
- Adjusted net income and adjusted earnings per share
The company defines these measures by adjusting net income for items including interest, taxes, depreciation and amortization, rent, start-up costs, share-based compensation, acquisition-related costs, and spin-off-related transaction costs, as applicable.
Changes Versus Prior Period
The filing text does not provide sufficient information to assess changes from the prior comparable period.
Outlook, Risks, and Unusual Items
The company states that the non-GAAP measures are intended to provide supplemental information for evaluating operating performance. It cautions that these measures may not be comparable with similarly titled measures used by other companies and should not be considered a substitute for GAAP net income or diluted earnings per share.
The adjustments referenced in the filing include costs associated with start-up operations, acquisitions, share-based compensation, and the company’s spin-off transaction. The filing text does not provide amounts, forward guidance, liquidity contingencies, or specific management outlook commentary.
Key Facts for Investors to Verify
- Obtain and review Exhibit 99.1 for the omitted quarterly revenue, earnings, cash flow, balance-sheet, and operating metrics.
- Verify the reconciliation of each non-GAAP measure to the most comparable GAAP measure.
- Assess the magnitude and recurrence of start-up, acquisition-related, share-based compensation, and spin-off-related costs.
- Review the company’s Form 10-Q for debt, liquidity, cash flow, risks, and management discussion of quarterly performance.