PACS Group, Inc.(US:PACS)2025-11-19 21:05Operations and Facilities - As of September 30, 2025, the company operates 320 facilities across 17 states, serving over 31,100 patients daily[180] - The number of operational beds increased by 5,210 to 32,677 as of September 30, 2025, compared to 27,467 in 2024[190] - The number of facilities at the end of the period rose to 290, reflecting a 16.5% increase from 249 facilities in 2024[193] - The company added 495 skilled nursing beds and 271 assisted living beds through acquisitions during the nine months ended September 30, 2025[187] - The company disposed of one facility with 120 skilled nursing beds during the nine months ended September 30, 2025[187] - The number of facilities increased to 79 at the end of the period, up from 76 in the previous year, marking a 3.9% growth[194] Revenue and Financial Performance - Skilled nursing services revenue for the three months ended September 30, 2025, was $1,310,933, representing a 29.8% increase from $1,010,277 in the same period of 2024[190] - Total skilled nursing services revenue for the nine months ended September 30, 2025, reached $3,843,153,000, up 34.9% from $2,849,806,000 in 2024[193] - Skilled nursing services revenue for mature facilities increased to $746,242,000, a 136.8% increase from $315,154,000 in the same period last year[192] - Patient and resident service revenue increased by $320.0 million to $1.3 billion for the three months ended September 30, 2025, representing a 31.2% increase year-over-year[222] - Total revenue for the three months ended September 30, 2025, was $1.3 billion, up 31.0% from $1.0 billion in the same period of 2024[221] - Skilled nursing services revenue rose by 34.9%, or $993.3 million, to $3.8 billion for the nine months ended September 30, 2025, driven by a 27.3% increase in patient days[234] Occupancy and Patient Metrics - The occupancy rate for skilled nursing services was 89.0% for the three months ended September 30, 2025, down from 90.5% in 2024[190] - Occupancy rate for skilled nursing services across all facilities was 88.9%, a decrease of 1.9% from 90.8% in the prior year[193] - The average Quality Measure (QM) Star rating for Mature facilities was 4.3 with an occupancy rate of 95% as of September 30, 2025[181] - Actual patient days for mature facilities increased to 4,025,794, a 117.5% increase from 1,850,627 in the same period last year[193] Cost and Expenses - Cost of services increased by $196.7 million to $1.0 billion, a 23.1% rise, primarily due to a $129.9 million increase in salaries and wages[226] - General and administrative expenses increased by $31.9 million to $102.5 million, driven by higher salaries and significant legal expenses related to ongoing investigations[228] - Total operating expenses increased by $885.3 million to $3.7 billion for the nine months ended September 30, 2025, a 31.3% increase compared to the same period in 2024[232] - General and administrative expenses increased by $47.4 million to $301.6 million for the nine months ended September 30, 2025, driven by a 28.3% increase in salaries and wages[239] Income and Profitability - Operating income for the three months ended September 30, 2025, was $86.3 million, a substantial increase of 275.7% compared to the previous year[221] - Net income for the three months ended September 30, 2025, was $52.3 million, a 222.8% increase from $16.2 million in the same period of 2024[221] - Net income for the nine months ended September 30, 2025, was $131.7 million, reflecting a 587.5% increase compared to $19.2 million for the same period in 2024[232] Cash Flow and Liquidity - Cash provided by operating activities was $407.6 million for the nine months ended September 30, 2025, compared to $302.8 million for the same period in 2024[250] - Cash and cash equivalents as of September 30, 2025, were $355.7 million, reflecting a strong liquidity position[246] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $407.6 million, an increase of $104.9 million compared to the same period in 2024[252] Debt and Financing - The total principal amount outstanding under the Amended and Restated Credit Facility as of September 30, 2025, was $100.0 million[246] - As of September 30, 2025, the company had $100.0 million of variable rate debt, with no interest rate hedge in place[268] - The company had outstanding indebtedness of $253.0 million under mortgage loans and promissory notes, all at fixed interest rates as of September 30, 2025[271] Interest Rate Sensitivity - A hypothetical 10% increase in interest rates would increase annual interest expense by approximately $0.7 million, while a 10% decrease would decrease it by the same amount[268] Operational Efficiency - Days sales outstanding improved from 57.8 days as of September 30, 2024, to 50.4 days as of September 30, 2025, reflecting operational efficiencies[252]