IPO PACS.NYSE Past

PACS Group

Healthcare

Ticker

PACS.NYSE

Market

Capitalization

$3103.17mil

Foundation year

2012

Employees

32000

IPO date

4/10/2024

About

A leading post-acute healthcare company, primarily focused on delivering high-quality skilled nursing care, operates through a portfolio of independently managed facilities. Established in 2013, it ranks as one of the largest skilled nursing providers in the United States by the number of facilities. With over 200 post-acute care facilities across nine states, it serves more than 20,000 patients daily. The company also offers senior care, assisted living, and independent living options in some of its communities. Its significant historical growth has been primarily driven by expertise in acquiring underperforming long-term custodial care skilled nursing facilities and transforming them into higher acuity, high value-add short-term transitional care skilled nursing facilities. The company attributes its success to a decentralized, local operating model, empowering local leaders at each facility to operate autonomously, delivering excellence in clinical quality and superior patient experiences. These independently operated facilities are supported with a comprehensive suite of technology, support, and back-office services, allowing local leadership teams to focus more on providing quality care to patients. The operating model is believed to deliver value to all healthcare stakeholders, including patients and families, referring providers, payors, administrators, and clinicians.

Headquarters

262 N. University Ave. Farmington, Utah 84025 (801) 447-9829

Team

Founders Jason Murray and Mark Hancock

Financial information

Year Ended December 31,
	2023		2022		2021
	(in thousands, except share and per share data)
Revenue
Patient and resident service revenue	$	3,110,114	$	2,399,155	$	1,135,909
Additional funding	$	375	$	21,482	$	28,563
Other revenues	$	1,003	$	1,357	$	2,091
Total Revenue	$	3,111,492	$	2,421,994	$	1,166,563
Expenses
Cost of services	$	2,447,713	$	1,861,314	$	901,095
Rent-cost of services	$	216,711	$	160,003	$	78,122
General and administrative expense	$	213,664	$	149,006	$	96,834
Depreciation and amortization	$	25,632	$	22,311	$	7,153
Total Operating Expenses	$	2,903,720	$	2,192,634	$	1,083,204
Operating Income	$	207,772	$	229,360	$	83,359
Other (expense) income
Interest expense	$	(49,919)	$	(25,538)	$	(5,278)
Other income, net	$	(536)	$	3,223	$	3,345
Total Other Expense, net	$	(50,455)	$	(22,315)	$	(1,933)
Income before provision for income taxes	$	157,317	$	207,045	$	81,426
Provision for income taxes	$	(44,435)	$	(56,549)	$	(33,479)
Net income	$	112,882	$	150,496	$	47,947
Less:
Net income attributable to noncontrolling interest	$	8	$	—	$	—
Net income attributable to PACS Group, Inc.	$	112,874	$	150,496	$	47,947

Net income per share - basic and diluted	$	0.88	$	1.17	$	0.37

Shares used in computing net income per share - basic and diluted	128,723,386		128,723,386		128,723,386

Underwriters

Citi/ JPMorgan/ Truist Securities/ RBC Capital Markets