PACS Group Announces Receipt of Notice of Late Filing from NYSE

Rhea-AI Summary

PACS Group (NYSE: PACS) received a Filing Delinquency Notification from NYSE on November 20, 2024, indicating non-compliance with Section 802.01E of the NYSE Listed Company Manual due to delayed filing of its Q3 2024 Form 10-Q. The delay stems from an ongoing Audit Committee investigation of third-party allegations. The company has a six-month period from November 19, 2024, to file the Form 10-Q and regain compliance, which it expects to achieve within this timeframe.

Positive

• Company expects to file Form 10-Q within the given six-month compliance period

Negative

• Delayed filing of Q3 2024 Form 10-Q
• Non-compliance with NYSE listing requirements
• Ongoing Audit Committee investigation of third-party allegations
• Risk of potential NYSE delisting if compliance is not achieved within six months

Insights

Financial Compliance Expert

The NYSE notice of non-compliance due to delayed 10-Q filing represents a significant red flag for investors. The ongoing Audit Committee investigation of third-party allegations adds another layer of concern, as such investigations often indicate potential material issues with financial reporting or internal controls. $2.57B market cap companies typically don't delay filings without serious cause.

While the 6-month compliance window provides breathing room, historical patterns show that companies under audit committee investigations often face additional challenges, including: potential restatements, increased regulatory scrutiny, class action lawsuits and higher compliance costs. The vague nature of "third-party allegations" warrants particular attention, as it could range from whistleblower claims to accounting irregularities.

FARMINGTON, Utah--(BUSINESS WIRE)-- PACS Group, Inc. (NYSE: PACS) (“PACS” or the “Company”), today announced that on November 20, 2024 it received a written Filing Delinquency Notification (the “Notification”) from the New York Stock Exchange (“NYSE”) stating that the Company is not in compliance with Section 802.01E of the NYSE Listed Company Manual, Annual and Quarterly Report Timely Filing Criteria (the “Timely Filing Criteria”), due to the delayed filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. The Company was unable to timely file its Form 10-Q due to the ongoing Audit Committee investigation of recent third-party allegations. Pursuant to the Notification, the Company has an initial six month period, from November 19, 2024, to file the Form 10-Q and regain compliance with the Timely Filing Criteria. The Company currently anticipates filing the Form 10-Q and regaining compliance with the Timely Filing Criteria within the initial six month period.

About PACS Group

PACS Group, Inc. is a holding company investing in post-acute healthcare facilities, professionals, and ancillary services. Founded in 2013, PACS Group is one of the largest post-acute platforms in the United States. Its independent subsidiaries operate over 284 post-acute care facilities across 16 states serving more than 27,000 patients daily.

Forward-Looking Statements

This press release contains, and other communications of the Company may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” “target,” “trend,” “plan,” “goal,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Statements concerning the Company’s future are forward-looking statements, and are based on management’s current expectations, assumptions and beliefs about the Company’s business, financial performance, operating results, the industry in which the Company operates and possible future events. These statements include, but are not limited to, statements regarding the Company’s expectations regarding the timing of the ongoing investigation and the timing of and its ability to make the Company’s Form 10-Q filing. Forward-looking statements convey the Company’s expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions, which may change over time and many of which are beyond the Company’s control, and that could cause the Company’s actual results to materially and adversely differ from those expressed in any forward-looking statement, including the outcome of any ongoing government or internal investigations, risks associated with litigation, and the other risks described in the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2024 and other filings with the Securities and Exchange Commission.

These documents are available in the Investor Relations section of the Company’s website at www.pacs.com (information on the website is not incorporated by reference into this press release and should not be considered part of this document).

You should not place undue reliance on forward-looking statements. The information in this press release is provided as of today’s date only, and, except as required by federal securities law, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or for any other reason after today.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241126341034/en/

Investors: IR@pacs.com



Media: Brooks Stevenson

VP Corporate Communication

262 N. University Avenue

Farmington, UT 84025

T: 385-988-3596

brooks.stevenson@pacs.com

https://www.pacs.com

https://ir.pacs.com

Source: PACS Group, Inc.

FAQ

Why did PACS Group (NYSE: PACS) receive a notice from NYSE on November 20, 2024?

PACS Group received a Filing Delinquency Notification from NYSE due to delayed filing of its Q3 2024 Form 10-Q, making it non-compliant with NYSE Listed Company Manual Section 802.01E.

How long does PACS Group have to regain compliance with NYSE filing requirements?

PACS Group has a six-month period from November 19, 2024, to file the Form 10-Q and regain compliance with NYSE's Timely Filing Criteria.

What caused PACS Group's delay in filing its Q3 2024 Form 10-Q?

The delay is due to an ongoing Audit Committee investigation of recent third-party allegations.