PACS Group, Inc. Reports Second Quarter 2024 Results
PACS Group, Inc. (NYSE: PACS), a major post-acute healthcare company in the US, reported its Q2 2024 results. Key highlights include:
- Consolidated GAAP revenue for H1 2024 was $1.9 billion, up 31% year-over-year
- Q2 2024 revenue was $981.8 million, a 29% increase from Q2 2023
- Adjusted EBITDA for H1 2024 and Q2 2024 were $188.2 million and $99.7 million respectively
- Total Facilities occupancy was 91.0% in Q2 2024
- The company increased its 2024 full-year guidance, expecting revenue between $3.85-$3.95 billion and Adjusted EBITDA of $370-$380 million
PACS added 32 facilities and made 12 real estate acquisitions in the 12 months ending June 30, 2024, expanding its portfolio to 248 healthcare operations across 13 states.
PACS Group, Inc. (NYSE: PACS), una delle principali aziende di assistenza post-acuta negli Stati Uniti, ha pubblicato i risultati del secondo trimestre del 2024. I punti salienti includono:
- Il fatturato consolidato GAAP per il primo semestre del 2024 è stato di 1,9 miliardi di dollari, in aumento del 31% rispetto all'anno precedente
- Il fatturato del Q2 2024 è stato di 981,8 milioni di dollari, con un incremento del 29% rispetto al Q2 2023
- L'EBITDA rettificato per il primo semestre del 2024 e per il Q2 2024 sono stati rispettivamente di 188,2 milioni di dollari e 99,7 milioni di dollari
- L'occupazione totale delle strutture era del 91,0% nel Q2 2024
- L'azienda ha aumentato le previsioni per l'intero anno 2024, aspettandosi un fatturato compreso tra 3,85-3,95 miliardi di dollari e un EBITDA rettificato tra 370-380 milioni di dollari
PACS ha aggiunto 32 strutture e ha effettuato 12 acquisizioni immobiliari nei 12 mesi terminanti il 30 giugno 2024, ampliando il proprio portafoglio a 248 operazioni sanitarie in 13 stati.
PACS Group, Inc. (NYSE: PACS), una de las principales empresas de atención médica post-aguda en los Estados Unidos, anunció sus resultados del segundo trimestre de 2024. Los aspectos destacados incluyen:
- Los ingresos consolidados GAAP para el primer semestre de 2024 fueron de 1.9 mil millones de dólares, un aumento del 31% interanual
- Los ingresos del Q2 2024 fueron de 981.8 millones de dólares, un incremento del 29% respecto al Q2 2023
- El EBITDA ajustado para el primer semestre de 2024 y el Q2 2024 fueron de 188.2 millones de dólares y 99.7 millones de dólares respectivamente
- La ocupación total de las instalaciones fue del 91.0% en el Q2 2024
- La empresa ha incrementado su orientación para el año completo 2024, esperando ingresos entre 3.85-3.95 mil millones de dólares y un EBITDA ajustado de 370-380 millones de dólares
PACS agregó 32 instalaciones y realizó 12 adquisiciones de bienes raíces en los 12 meses que terminaron el 30 de junio de 2024, ampliando su portafolio a 248 operaciones de salud en 13 estados.
PACS 그룹, Inc. (NYSE: PACS)는 미국의 주요 후속 의료 회사로서 2024년 2분기 실적을 발표했습니다. 주요 내용은 다음과 같습니다:
- 2024년 상반기 GAAP 매출은 19억 달러로 전년 대비 31% 증가했습니다.
- 2024년 2분기 매출은 9억 8천 180만 달러로 2023년 2분기 대비 29% 증가했습니다.
- 2024년 상반기와 2분기의 조정 EBITDA는 각각 1억 8천 820만 달러와 9천 970만 달러였습니다.
- 2024년 2분기 시설 총 점유율은 91.0%입니다.
- 회사는 2024년 전체 연도 가이던스를 상향 조정하여, 매출이 38.5억-39.5억 달러에 이를 것으로 예상하고 조정된 EBITDA를 3.7억-3.8억 달러로 예상하고 있습니다.
PACS는 2024년 6월 30일 종료된 12개월 동안 32개의 시설을 추가하고 12건의 부동산 인수를 진행하여 13개 주에 걸쳐 248개의 의료 운영 포트폴리오를 확장했습니다.
PACS Group, Inc. (NYSE: PACS), une entreprise majeure de soins de santé post-aigus aux États-Unis, a publié ses résultats du deuxième trimestre 2024. Les faits saillants incluent :
- Le chiffre d'affaires consolidé GAAP pour le premier semestre 2024 s'élevait à 1,9 milliard de dollars, en hausse de 31 % par rapport à l'année précédente
- Le chiffre d'affaires du 2ème trimestre 2024 s'élevait à 981,8 millions de dollars, soit une augmentation de 29 % par rapport au 2ème trimestre 2023
- L'EBITDA ajusté pour le premier semestre 2024 et le 2ème trimestre 2024 ont été respectivement de 188,2 millions de dollars et 99,7 millions de dollars
- Le taux d'occupation total des installations était de 91,0 % au 2ème trimestre 2024
- L'entreprise a revu à la hausse ses prévisions pour l'année 2024, s'attendant à un chiffre d'affaires compris entre 3,85 et 3,95 milliards de dollars et un EBITDA ajusté de 370 à 380 millions de dollars
PACS a ajouté 32 installations et réalisé 12 acquisitions immobilières au cours des 12 mois se terminant le 30 juin 2024, élargissant ainsi son portefeuille à 248 opérations de santé dans 13 États.
PACS Group, Inc. (NYSE: PACS), ein führendes Unternehmen im Bereich der post-akuten Gesundheitsversorgung in den USA, hat die Ergebnisse für das 2. Quartal 2024 veröffentlicht. Die wichtigsten Erkenntnisse sind:
- Der konsolidierte GAAP-Umsatz für das erste Halbjahr 2024 betrug 1,9 Milliarden US-Dollar, was einem Anstieg von 31 % im Vergleich zum Vorjahr entspricht.
- Der Umsatz für das 2. Quartal 2024 betrug 981,8 Millionen US-Dollar, was einem Anstieg von 29 % im Vergleich zum 2. Quartal 2023 entspricht.
- Das adjustierte EBITDA für das erste Halbjahr 2024 und das 2. Quartal 2024 betrug 188,2 Millionen US-Dollar und 99,7 Millionen US-Dollar respectively.
- Die Gesamtauslastung der Einrichtungen betrug im 2. Quartal 2024 91,0 %.
- Das Unternehmen hat die Prognose für das Gesamtjahr 2024 angehoben und erwartet einen Umsatz zwischen 3,85 - 3,95 Milliarden US-Dollar sowie ein adjustiertes EBITDA von 370 - 380 Millionen US-Dollar.
PACS hat in den 12 Monaten bis zum 30. Juni 2024 32 Einrichtungen hinzugefügt und 12 Immobilienakquisitionen realisiert, wodurch das Portfolio auf 248 Gesundheitsbetriebe in 13 Bundesstaaten erweitert wurde.
- 29% year-over-year revenue growth in Q2 2024, reaching $981.8 million
- 31% year-over-year revenue growth for H1 2024, totaling $1.9 billion
- Strong occupancy rate of 91.0% across all facilities in Q2 2024
- Addition of 3,947 operational beds over 12 months, leading to a 24.8% increase in patient days
- Increased full-year 2024 guidance for both Revenue and Adjusted EBITDA
- Expansion of portfolio to 248 healthcare operations across 13 states
- GAAP net loss of $10.9 million in Q2 2024
- Increase in stock-based compensation expense of $90.9 million associated with IPO-related restricted stock units
Insights
PACS Group's Q2 2024 results show strong growth, but with some nuances. Revenue increased
Key positives include increased occupancy rates and higher Medicare and Medicaid daily rates. The company's guidance raise for FY2024 suggests confidence in continued growth. However, investors should note the discrepancy between GAAP losses and adjusted EBITDA of
The aggressive expansion strategy (32 new facilities in 12 months) could drive future growth but may also increase integration risks and capital requirements. Overall, while growth metrics are impressive, profitability and cash flow management will be important to watch in coming quarters.
PACS Group's performance reflects broader trends in the post-acute care sector. The
The
However, the post-acute care sector faces ongoing challenges, including labor shortages and potential reimbursement pressures. PACS's ability to maintain quality metrics while rapidly expanding will be crucial. The focus on real estate ownership (87 assets owned) aligns with industry trends towards vertical integration but also exposes the company to real estate market fluctuations.
Conference Call and Webcast scheduled for today, August 12, 2024, at 5:00 pm ET.
Highlights:
-
GAAP net income (loss) was
$38.2 million $(10.9) million $90.9 million -
Consolidated GAAP revenue for the first six months of 2024 was
$1.9 billion 31% over the first six months of the prior year, driven largely by increased facility count and reimbursement rates, and for the second quarter of 2024 was$981.8 million 29% over the second quarter of 2023 and an increase of5% over the first quarter of 2024. -
Adjusted EBITDA was
$188.2 million $99.7 million $318.0 million $165.6 million -
Increase in guidance for full year 2024 Revenue and Adjusted EBITDA
-
Revenue expected to be in the range of
$3.85 billion $3.95 billion -
Adjusted EBITDA expected to be in the range of
$370 million $380 million
-
Revenue expected to be in the range of
Select KPIs:
-
Total Facilities occupancy was
91.0% during the second quarter of 2024. Ramping and Mature Facilities occupancy increased by1.4% and1.0% , respectively, over the same quarter of the prior year. -
Average Medicare and Medicaid daily rates increased
9.5% and3.5% , respectively, for the second quarter of 2024, as compared to the same quarter of the prior year. - In the second quarter of 2024 the Company added 2 operating facilities, including 167 skilled nursing beds, respectively.
“Our facilities across the nation continue to focus on clinical excellence, and we couldn’t be more pleased about the outcomes they are achieving,” said Jason Murray, PACS’s Chief Executive Officer. “Their dedication to their patients and to serving their communities leads to their individual success, and to our collective success as a company. We’re looking forward to keeping that positive momentum through the end of the year and beyond.”
Murray continued, “We had another strong quarter, again highlighted by 165 of our facilities having a 4 or 5 star CMS Quality Measures rating. We believe this is a key driver of our revenue growth in the second quarter of 2024 of
“Our revenue growth was also driven in significant part by our adding 3,947 operational beds to the company over the twelve months ending June 30, 2024, leading to a
Business Outlook
Based on information available as of today, PACS is providing the following guidance for full year 2024:
-
Revenue expected to be in the range of
$3.85 billion $3.95 billion -
Adjusted EBITDA expected to be in the range of
$370 million $380 million
As of today, PACS's growing portfolio consists of 248 healthcare operations, 30 of which also include senior living operations, across 13 states. PACS owns 87 real estate assets with purchase options on an additional 31 real estate assets, including both wholly owned and owned in a joint venture. The Company's overall strategy continues to include both leasing and acquiring real estate and the Company continues to actively consider opportunities to acquire both performing and underperforming operations in several states.
A discussion of the Company's use of non-GAAP financial measures and reconciliation to the most directly comparable GAAP measure is set forth below. A reconciliation of Adjusted EBITDA guidance to Net Income on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to provision for income taxes, interest expense, depreciation and amortization, acquisition related costs, losses incurred from debt restructuring, gains on lease termination, stock-based compensation expenses, losses from equity method investment in joint ventures, and other adjustment items all of which are adjustments to Adjusted EBITDA. Further discussion about the Company's results is contained in its Quarterly Report on Form 10-Q for the period ended June 30, 2024, which is expected to be filed with the SEC today and can be viewed on the Company’s website at https://IR.pacs.com.
Earnings Conference Call Details
A live webcast will be held Monday, August 12 at 5:00 p.m. Eastern time to discuss PACS’s second quarter financial results. To listen to the webcast please visit the Investors Relations section of PACS’s website at https://IR.pacs.com or by dialing 877-407-0621 / +1 215-268-9899. The webcast will be recorded and will be available for replay via the website for 30 days following the call.
About PACS™
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
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
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 we operate and possible future events. These statements include, but are not limited to, statements regarding the Company’s anticipated growth prospects and future operating and financial performance, including guidance. 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 our dependence on reimbursement from third-party payors and the impact of changes in the acuity mix of patients in our facilities and changes in payor mix and payment methodologies and new cost containment initiatives; failure to be reimbursed for all services for which each facility bills; increased competition for, or shortage of, nurses, nurse assistants or other skilled personnel; state efforts to regulate or deregulate the healthcare services industry or the construction expansion, or acquisition of healthcare facilities; numerous risks related to the expiration of COVID-19 PHE and surrounding wind-down and uncertainty; failure to attract patients and residents to compete effectively with other healthcare providers; risks associated with our review and audit of the care delivery, recordkeeping and billing processes of our operating subsidiaries; risks associated with litigation; our reliance on information technology; our inability to complete future facility or business acquisitions at attractive prices or at all; risks associated with undertaking acquisitions; risks associated with leased real property; our reliance on payments from third-party payors, including Medicare, Medicaid and other governmental healthcare programs and private insurance organizations; reforms to the
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 presentation 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.
PACS GROUP, INC. AND SUBSIDIARIES |
|||||
CONDENSED COMBINED/CONSOLIDATED BALANCE SHEETS |
|||||
(dollars in thousands, except for share and per share values) |
|||||
|
(unaudited) |
|
|
||
|
June 30, |
|
December 31, |
||
|
2024 |
|
2023 |
||
ASSETS |
|
|
|
||
Current Assets: |
|
|
|
||
Cash and cash equivalents |
$ |
73,374 |
|
$ |
73,416 |
Accounts receivable, net |
|
610,577 |
|
|
547,807 |
Other receivables |
|
50,396 |
|
|
52,259 |
Prepaid expenses and other current assets |
|
66,301 |
|
|
48,665 |
Total Current Assets |
|
800,648 |
|
|
722,147 |
Property and equipment, net |
|
763,904 |
|
|
577,528 |
Operating lease right-of-use assets |
|
2,112,914 |
|
|
2,007,812 |
Insurance subsidiary deposits and investments |
|
35,476 |
|
|
— |
Escrow funds |
|
19,531 |
|
|
15,649 |
Goodwill and other indefinite-lived assets |
|
65,291 |
|
|
65,291 |
Other assets |
|
98,584 |
|
|
124,312 |
Total Assets |
$ |
3,896,348 |
|
$ |
3,512,739 |
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
||
Current Liabilities: |
|
|
|
||
Accounts payable |
$ |
125,746 |
|
$ |
140,947 |
Accrued payroll and benefits |
|
107,077 |
|
|
92,234 |
Current operating lease liabilities |
|
113,278 |
|
|
109,438 |
Current maturities of long term debt |
|
15,745 |
|
|
16,822 |
Current portion of accrued self-insurance liabilities |
|
31,252 |
|
|
27,536 |
Other accrued expenses |
|
75,003 |
|
|
69,949 |
Total Current Liabilities |
|
468,101 |
|
|
456,926 |
Long-term operating lease liabilities |
|
2,068,585 |
|
|
1,961,997 |
Accrued benefits, less current portion |
|
6,738 |
|
|
6,738 |
Lines of credit |
|
248,000 |
|
|
520,000 |
Long-term debt, less current maturities, net of deferred financing fees |
|
227,107 |
|
|
195,708 |
Accrued self-insurance liabilities, less current portion |
|
172,111 |
|
|
146,167 |
Other liabilities |
|
127,472 |
|
|
123,477 |
Total Liabilities |
$ |
3,318,114 |
|
$ |
3,411,013 |
Commitments and contingencies |
|
|
|
||
Equity: |
|
|
|
||
Common stock: |
|
152 |
|
|
129 |
Additional paid-in capital |
|
471,472 |
|
|
— |
Retained earnings |
|
100,504 |
|
|
95,997 |
Total stockholders' equity |
|
572,128 |
|
|
96,126 |
Non-controlling interest in subsidiary |
|
6,106 |
|
|
5,600 |
Total Equity |
$ |
578,234 |
|
$ |
101,726 |
Total Liabilities and Equity |
$ |
3,896,348 |
$ |
3,512,739 |
|
PACS GROUP, INC. AND SUBSIDIARIES |
|||||||||||||||
UNAUDITED CONDENSED COMBINED/CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME |
|||||||||||||||
(dollars in thousands, except for share and per share values) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Patient and resident service revenue |
$ |
981,398 |
|
|
$ |
760,424 |
|
|
$ |
1,915,696 |
|
|
$ |
1,468,250 |
|
Additional funding |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
375 |
|
Other revenues |
|
448 |
|
|
|
240 |
|
|
|
871 |
|
|
|
481 |
|
Total Revenue |
$ |
981,846 |
|
|
$ |
760,664 |
|
|
$ |
1,916,567 |
|
|
$ |
1,469,106 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Expenses |
|
|
|
|
|
|
|
||||||||
Cost of services |
|
762,147 |
|
|
|
590,815 |
|
|
|
1,498,139 |
|
|
|
1,129,587 |
|
Rent - cost of services |
|
65,833 |
|
|
|
51,456 |
|
|
|
129,794 |
|
|
|
96,560 |
|
General and administrative expense |
|
144,380 |
|
|
|
62,695 |
|
|
|
191,286 |
|
|
|
122,137 |
|
Depreciation and amortization |
|
8,776 |
|
|
|
6,159 |
|
|
|
16,678 |
|
|
|
11,988 |
|
Total Operating Expenses |
$ |
981,136 |
|
|
$ |
711,125 |
|
|
$ |
1,835,897 |
|
|
$ |
1,360,272 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Income |
$ |
710 |
|
|
$ |
49,539 |
|
|
$ |
80,670 |
|
|
$ |
108,834 |
|
|
|
|
|
|
|
|
|
||||||||
Other (Expense) Income |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(9,187 |
) |
|
|
(15,306 |
) |
|
|
(24,578 |
) |
|
|
(25,942 |
) |
Gain on lease termination |
|
— |
|
|
|
— |
|
|
|
8,046 |
|
|
|
— |
|
Other income (expense), net |
|
(3,905 |
) |
|
|
(2,643 |
) |
|
|
(3,465 |
) |
|
|
(2,203 |
) |
Total Other Expense, net |
$ |
(13,092 |
) |
|
$ |
(17,949 |
) |
|
$ |
(19,997 |
) |
|
$ |
(28,145 |
) |
|
|
|
|
|
|
|
|
||||||||
(Loss) income before provision for income taxes |
|
(12,382 |
) |
|
|
31,590 |
|
|
|
60,673 |
|
|
|
80,689 |
|
Provision for income taxes |
|
1,474 |
|
|
|
(10,370 |
) |
|
|
(22,441 |
) |
|
|
(21,871 |
) |
|
|
|
|
|
|
|
|
||||||||
Net (Loss) Income |
$ |
(10,908 |
) |
|
$ |
21,220 |
|
|
$ |
38,232 |
|
|
$ |
58,818 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Net income attributable to noncontrolling interest |
|
2 |
|
|
|
2 |
|
|
|
4 |
|
|
|
3 |
|
Net (loss) income attributable to PACS Group, Inc. |
$ |
(10,910 |
) |
|
$ |
21,218 |
|
|
$ |
38,228 |
|
|
$ |
58,815 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share attributable to PACS Group, Inc. |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.07 |
) |
|
$ |
0.16 |
|
|
$ |
0.27 |
|
|
$ |
0.46 |
|
Diluted |
$ |
(0.07 |
) |
|
$ |
0.16 |
|
|
$ |
0.27 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
149,463,655 |
|
|
|
128,723,386 |
|
|
|
139,093,520 |
|
|
|
128,723,386 |
|
Diluted |
|
149,463,655 |
|
|
|
128,723,386 |
|
|
|
139,684,618 |
|
|
|
128,723,386 |
|
PACS GROUP, INC. AND SUBSIDIARIES |
||||||||||||
UNAUDITED CONDENSED COMBINED/CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME (CONTINUED) |
||||||||||||
(dollars in thousands, except for share and per share values) |
||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Other comprehensive loss, net of tax: |
|
|
|
|
|
|
|
|||||
Unrealized loss on available-for-sale debt securities, net of tax |
$ |
(201 |
) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
Total other comprehensive loss |
|
(201 |
) |
|
|
— |
|
|
— |
|
|
— |
Comprehensive (loss) income |
$ |
(11,109 |
) |
|
$ |
21,220 |
|
$ |
38,232 |
|
$ |
58,818 |
Less: |
|
|
|
|
|
|
|
|||||
Comprehensive income attributable to noncontrolling interest |
|
2 |
|
|
|
2 |
|
|
4 |
|
|
3 |
Comprehensive (loss) income attributable to PACS Group, Inc. |
$ |
(11,111 |
) |
|
$ |
21,218 |
|
$ |
38,228 |
$ |
58,815 |
|
PACS GROUP, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED COMBINED/CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
The following table presents selected data from our condensed consolidated statements of cash flows for the periods presented:
|
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Net cash provided by/(used in): |
|
|
|
||||
Operating activities |
$ |
93,600 |
|
|
$ |
58,212 |
|
Investing activities |
|
(239,634 |
) |
|
|
(67,261 |
) |
Financing activities |
|
105,184 |
|
|
|
(8,627 |
) |
Net change in cash |
|
(40,850 |
) |
|
|
(17,676 |
) |
Cash, cash equivalents, and restricted cash - beginning of period |
|
118,704 |
|
|
|
98,206 |
|
Cash, cash equivalents, and restricted cash - end of period |
$ |
77,854 |
|
|
$ |
80,530 |
|
PACS GROUP, INC. AND SUBSIDIARIES
UNAUDITED KEY SKILLED SERVICES METRICS
The following tables present the above key skilled services metrics by category for all facilities, Mature facilities, Ramping facilities and New facilities as of and for the three months ended June 30, 2024 and 2023:
|
Three Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
|
|
|
|
|
|
|
||||||
|
(dollars in thousands) |
||||||||||||
Total facility results: |
|
|
|
|
|
|
|
||||||
Skilled nursing services revenue |
$ |
973,082 |
|
|
$ |
755,994 |
|
|
$ |
217,088 |
|
28.7 |
% |
Skilled mix by revenue |
|
51.2 |
% |
|
|
58.0 |
% |
|
|
|
(6.8 |
)% |
|
Skilled mix by nursing patient days |
|
29.2 |
% |
|
|
34.7 |
% |
|
|
|
(5.5 |
)% |
|
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
||||||
Available patient days |
|
2,225,208 |
|
|
|
1,773,346 |
|
|
|
451,862 |
|
25.5 |
% |
Actual patient days |
|
2,023,865 |
|
|
|
1,621,868 |
|
|
|
401,997 |
|
24.8 |
% |
Occupancy rate (operational beds) |
|
91.0 |
% |
|
|
91.5 |
% |
|
|
|
(0.5 |
)% |
|
Number of facilities at period end |
|
214 |
|
|
|
185 |
|
|
|
29 |
|
15.7 |
% |
Number of operational beds at period end |
|
24,483 |
|
|
|
20,536 |
|
|
|
3,947 |
|
19.2 |
% |
|
Three Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
|
|
|
|
|
|
|
||||||
|
(dollars in thousands) |
||||||||||||
Mature facility(1) results: |
|
|
|
|
|
|
|
||||||
Skilled nursing services revenue |
$ |
298,199 |
|
|
$ |
272,629 |
|
|
$ |
25,570 |
|
9.4 |
% |
Skilled mix by revenue |
|
55.2 |
% |
|
|
60.1 |
% |
|
|
|
(4.9 |
)% |
|
Skilled mix by nursing patient days |
|
32.2 |
% |
|
|
37.0 |
% |
|
|
|
(4.8 |
)% |
|
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
||||||
Available patient days |
|
634,361 |
|
|
|
621,374 |
|
|
|
12,987 |
|
2.1 |
% |
Actual patient days |
|
597,657 |
|
|
|
579,008 |
|
|
|
18,649 |
|
3.2 |
% |
Occupancy rate (operational beds) |
|
94.2 |
% |
|
|
93.2 |
% |
|
|
|
1.0 |
% |
|
Number of facilities at period end |
|
65 |
|
|
|
65 |
|
|
|
— |
|
— |
% |
Number of operational beds at period end |
|
6,971 |
|
|
|
6,959 |
|
|
|
12 |
|
0.2 |
% |
__________________ |
||
(1) |
|
Mature facilities represent facilities purchased more than 36 months before the date presented. |
|
Three Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
|
|
|
|
|
|
|
||||||
|
(dollars in thousands) |
||||||||||||
Ramping facility(1) results: |
|
|
|
|
|
|
|
||||||
Skilled nursing services revenue |
$ |
413,207 |
|
|
$ |
237,944 |
|
|
$ |
175,263 |
|
73.7 |
% |
Skilled mix by revenue |
|
56.1 |
% |
|
|
58.5 |
% |
|
|
|
(2.4 |
)% |
|
Skilled mix by nursing patient days |
|
33.0 |
% |
|
|
35.6 |
% |
|
|
|
(2.6 |
)% |
|
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
||||||
Available patient days |
|
853,398 |
|
|
|
545,557 |
|
|
|
307,841 |
|
56.4 |
% |
Actual patient days |
|
805,472 |
|
|
|
507,200 |
|
|
|
298,272 |
|
58.8 |
% |
Occupancy rate (operational beds) |
|
94.4 |
% |
|
|
93.0 |
% |
|
|
|
1.4 |
% |
|
Number of facilities at period end |
|
84 |
|
|
|
72 |
|
|
|
12 |
|
16.7 |
% |
Number of operational beds at period end |
|
9,378 |
|
|
|
7,882 |
|
|
|
1,496 |
|
19.0 |
% |
__________________ |
||
(1) |
|
Ramping facilities represent facilities purchased within 18-36 months of the date presented. |
|
Three Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
|
|
|
|
|
|
|
||||||
|
(dollars in thousands) |
||||||||||||
New facility(1) results: |
|
|
|
|
|
|
|
||||||
Skilled nursing services revenue |
$ |
261,676 |
|
|
$ |
245,421 |
|
|
$ |
16,255 |
|
6.6 |
% |
Skilled mix by revenue |
|
39.0 |
% |
|
|
55.2 |
% |
|
|
|
(16.2 |
)% |
|
Skilled mix by nursing patient days |
|
21.3 |
% |
|
|
31.5 |
% |
|
|
|
(10.2 |
)% |
|
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
||||||
Available patient days |
|
737,449 |
|
|
|
606,415 |
|
|
|
131,034 |
|
21.6 |
% |
Actual patient days |
|
620,736 |
|
|
|
535,660 |
|
|
|
85,076 |
|
15.9 |
% |
Occupancy rate (operational beds) |
|
84.2 |
% |
|
|
88.3 |
% |
|
|
|
(4.1 |
)% |
|
Number of facilities at period end |
|
65 |
|
|
|
48 |
|
|
|
17 |
|
35.4 |
% |
Number of operational beds at period end |
|
8,134 |
|
|
|
5,695 |
|
|
|
2,439 |
|
42.8 |
% |
__________________ |
||
(1) |
|
New facilities represent facilities purchased less than 18 months from the date presented. |
The following tables present the above key skilled services metrics by category for all facilities, Mature facilities, Ramping facilities and New facilities as of and for the six months ended June 30, 2024 and 2023:
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
|
|
|
|
|
|
|
||||||
|
(dollars in thousands) |
||||||||||||
Total facility results: |
|
|
|
|
|
|
|
||||||
Skilled nursing services revenue |
$ |
1,900,538 |
|
|
$ |
1,461,568 |
|
|
$ |
438,970 |
|
30.0 |
% |
Skilled mix by revenue |
|
51.6 |
% |
|
|
60.8 |
% |
|
|
|
(9.2 |
)% |
|
Skilled mix by nursing patient days |
|
29.5 |
% |
|
|
37.3 |
% |
|
|
|
(7.8 |
)% |
|
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
||||||
Available patient days |
|
4,389,269 |
|
|
|
3,359,730 |
|
|
|
1,029,539 |
|
30.6 |
% |
Actual patient days |
|
3,994,467 |
|
|
|
3,078,280 |
|
|
|
916,187 |
|
29.8 |
% |
Occupancy rate (operational beds) |
|
91.0 |
% |
|
|
91.6 |
% |
|
|
|
(0.6 |
)% |
|
Number of facilities at period end |
|
214 |
|
|
|
185 |
|
|
|
29 |
|
15.7 |
% |
Number of operational beds at period end |
|
24,483 |
|
|
|
20,536 |
|
|
|
3,947 |
|
19.2 |
% |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
|
|
|
|
|
|
|
||||||
|
(dollars in thousands) |
||||||||||||
Mature facility(1) results: |
|
|
|
|
|
|
|
||||||
Skilled nursing services revenue |
$ |
584,618 |
|
|
$ |
544,170 |
|
|
$ |
40,448 |
|
7.4 |
% |
Skilled mix by revenue |
|
55.4 |
% |
|
|
63.0 |
% |
|
|
|
(7.6 |
)% |
|
Skilled mix by nursing patient days |
|
32.3 |
% |
|
|
39.4 |
% |
|
|
|
(7.1 |
)% |
|
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
||||||
Available patient days |
|
1,268,904 |
|
|
|
1,217,416 |
|
|
|
51,488 |
|
4.2 |
% |
Actual patient days |
|
1,197,660 |
|
|
|
1,134,502 |
|
|
|
63,158 |
|
5.6 |
% |
Occupancy rate (operational beds) |
|
94.4 |
% |
|
|
93.2 |
% |
|
|
|
1.2 |
% |
|
Number of facilities at period end |
|
65 |
|
|
|
65 |
|
|
|
— |
|
— |
% |
Number of operational beds at period end |
|
6,971 |
|
|
|
6,959 |
|
|
|
12 |
|
0.2 |
% |
__________________ |
||
(1) |
|
Mature facilities represent facilities purchased more than 36 months before the date presented. |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
||||||
|
|
|
|
|
|
|
|
||||||
|
(dollars in thousands) |
||||||||||||
Ramping facility(1) results: |
|
|
|
|
|
|
|
||||||
Skilled nursing services revenue |
$ |
817,146 |
|
|
$ |
271,152 |
|
|
$ |
545,994 |
|
201.4 |
% |
Skilled mix by revenue |
|
56.8 |
% |
|
|
59.1 |
% |
|
|
|
(2.3 |
)% |
|
Skilled mix by nursing patient days |
|
33.6 |
% |
|
|
35.9 |
% |
|
|
|
(2.3 |
)% |
|
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
||||||
Available patient days |
|
1,679,388 |
|
|
|
627,582 |
|
|
|
1,051,806 |
|
167.6 |
% |
Actual patient days |
|
1,590,306 |
|
|
|
583,678 |
|
|
|
1,006,628 |
|
172.5 |
% |
Occupancy rate (operational beds) |
|
94.7 |
% |
|
|
93.0 |
% |
|
|
|
1.7 |
% |
|
Number of facilities at period end |
|
84 |
|
|
|
72 |
|
|
|
12 |
|
16.7 |
% |
Number of operational beds at period end |
|
9,378 |
|
|
|
7,882 |
|
|
|
1,496 |
|
19.0 |
% |
__________________ |
||
(1) |
|
Ramping facilities represent facilities purchased within 18-36 months of the date presented. |
|
Six Months Ended June 30, |
|||||||||||||
|
2024 |
|
2023 |
|
Change |
|
% Change |
|||||||
|
|
|
|
|
|
|
|
|||||||
|
(dollars in thousands) |
|||||||||||||
New facility(1) results: |
|
|
|
|
|
|
|
|||||||
Skilled nursing services revenue |
$ |
498,774 |
|
|
$ |
646,246 |
|
|
$ |
(147,472 |
) |
|
(22.8 |
)% |
Skilled mix by revenue |
|
38.7 |
% |
|
|
59.7 |
% |
|
|
|
(21.0 |
)% |
||
Skilled mix by nursing patient days |
|
21.3 |
% |
|
|
36.2 |
% |
|
|
|
(14.9 |
)% |
||
Occupancy for skilled nursing services: |
|
|
|
|
|
|
|
|||||||
Available patient days |
|
1,440,977 |
|
|
|
1,514,732 |
|
|
|
(73,755 |
) |
|
(4.9 |
)% |
Actual patient days |
|
1,206,501 |
|
|
|
1,360,100 |
|
|
|
(153,599 |
) |
|
(11.3 |
)% |
Occupancy rate (operational beds) |
|
83.7 |
% |
|
|
89.8 |
% |
|
|
|
(6.1 |
)% |
||
Number of facilities at period end |
|
65 |
|
|
|
48 |
|
|
|
17 |
|
|
35.4 |
% |
Number of operational beds at period end |
|
8,134 |
|
|
|
5,695 |
|
|
|
2,439 |
|
|
42.8 |
% |
__________________ |
||
(1) |
|
New facilities represent facilities purchased less than 18 months from the date presented. |
The following tables present additional detail regarding our skilled mix, including our percentage of nursing patient days and revenue by payor source for all facilities, Mature facilities, Ramping facilities and New facilities for the three months ended June 30, 2024 and 2023:
|
|
Three Months Ended March 31, |
||||||||||||||||||||||
Skilled mix by revenue |
|
Mature |
|
Ramping |
|
New |
|
Total |
||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Medicare |
|
37.3 |
% |
|
43.0 |
% |
|
37.3 |
% |
|
39.6 |
% |
|
22.7 |
% |
|
40.7 |
% |
|
33.3 |
% |
|
41.2 |
% |
Managed care |
|
17.9 |
|
|
17.1 |
|
|
18.8 |
|
|
18.9 |
|
|
16.3 |
|
|
14.5 |
|
|
17.9 |
|
|
16.8 |
|
Skilled mix |
|
55.2 |
|
|
60.1 |
|
|
56.1 |
|
|
58.5 |
|
|
39.0 |
|
|
55.2 |
|
|
51.2 |
|
|
58.0 |
|
Medicaid |
|
38.0 |
|
|
34.2 |
|
|
36.1 |
|
|
34.7 |
|
|
51.5 |
|
|
39.3 |
|
|
40.9 |
|
|
36.0 |
|
Private and other |
|
6.8 |
|
|
5.7 |
|
|
7.8 |
|
|
6.8 |
|
|
9.5 |
|
|
5.5 |
|
|
7.9 |
|
|
6.0 |
|
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
Three Months Ended June 30, |
||||||||||||||||||||||
Skilled mix by nursing patient days |
|
Mature |
|
Ramping |
|
New |
|
Total |
||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Medicare |
|
18.5 |
% |
|
23.3 |
% |
|
19.1 |
% |
|
21.3 |
% |
|
9.8 |
% |
|
21.4 |
% |
|
16.1 |
% |
|
22.0 |
% |
Managed care |
|
13.7 |
|
|
13.7 |
|
|
13.9 |
|
|
14.3 |
|
|
11.5 |
|
|
10.1 |
|
|
13.1 |
|
|
12.7 |
|
Skilled mix |
|
32.2 |
|
|
37.0 |
|
|
33.0 |
|
|
35.6 |
|
|
21.3 |
|
|
31.5 |
|
|
29.2 |
|
|
34.7 |
|
Medicaid |
|
59.8 |
|
|
54.8 |
|
|
58.0 |
|
|
54.8 |
|
|
67.7 |
|
|
61.1 |
|
|
61.5 |
|
|
56.9 |
|
Private and other |
|
8.0 |
|
|
8.2 |
|
|
9.0 |
|
|
9.6 |
|
|
11.0 |
|
|
7.4 |
|
|
9.3 |
|
|
8.4 |
|
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
The following tables present additional detail regarding our skilled mix, including our percentage of nursing patient days and revenue by payor source for all facilities, Mature facilities, Ramping facilities and New facilities for the six months ended June 30, 2024 and 2023:
|
|
Six Months Ended June 30, |
||||||||||||||||||||||
Skilled mix by revenue |
|
Mature |
|
Ramping |
|
New |
|
Total |
||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Medicare |
|
37.5 |
% |
|
46.7 |
% |
|
38.2 |
% |
|
39.9 |
% |
|
22.4 |
% |
|
44.2 |
% |
|
33.8 |
% |
|
44.3 |
% |
Managed care |
|
17.9 |
|
|
16.3 |
|
|
18.6 |
|
|
19.2 |
|
|
16.3 |
|
|
15.5 |
|
|
17.8 |
|
|
16.5 |
|
Skilled mix |
|
55.4 |
|
|
63.0 |
|
|
56.8 |
|
|
59.1 |
|
|
38.7 |
|
|
59.7 |
|
|
51.6 |
|
|
60.8 |
|
Medicaid |
|
37.9 |
|
|
31.8 |
|
|
35.6 |
|
|
34.1 |
|
|
52.1 |
|
|
34.6 |
|
|
40.7 |
|
|
33.5 |
|
Private and other |
|
6.7 |
|
|
5.2 |
|
|
7.6 |
|
|
6.8 |
|
|
9.2 |
|
|
5.7 |
|
|
7.7 |
|
|
5.7 |
|
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
|
Six Months Ended June 30, |
||||||||||||||||||||||
Skilled mix by nursing patient days |
|
Mature |
|
Ramping |
|
New |
|
Total |
||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Medicare |
|
18.5 |
% |
|
25.9 |
% |
|
19.7 |
% |
|
21.4 |
% |
|
9.7 |
% |
|
24.3 |
% |
|
16.3 |
% |
|
24.3 |
% |
Managed care |
|
13.8 |
|
|
13.5 |
|
|
13.9 |
|
|
14.5 |
|
|
11.6 |
|
|
11.9 |
|
|
13.2 |
|
|
13.0 |
|
Skilled mix |
|
32.3 |
|
|
39.4 |
|
|
33.6 |
|
|
35.9 |
|
|
21.3 |
|
|
36.2 |
|
|
29.5 |
|
|
37.3 |
|
Medicaid |
|
59.6 |
|
|
52.6 |
|
|
57.5 |
|
|
54.3 |
|
|
68.1 |
|
|
55.9 |
|
|
61.3 |
|
|
54.4 |
|
Private and other |
|
8.1 |
|
|
8.0 |
|
|
8.9 |
|
|
9.8 |
|
|
10.6 |
|
|
7.9 |
|
|
9.2 |
|
|
8.3 |
|
Total |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
The following table presents average daily rates by payor source, excluding services that are not covered by the daily rate, for the three months ended June 30, 2024 and 2023:
|
Three Months Ended June 30, |
||||||||||||||||||||||
Average daily rate |
Mature |
|
Ramping |
|
New |
|
Total |
||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Medicare |
$ |
942.19 |
|
$ |
860.20 |
|
$ |
964.00 |
|
$ |
874.26 |
|
$ |
941.43 |
|
$ |
877.56 |
|
$ |
952.39 |
|
$ |
870.03 |
Managed care |
|
607.42 |
|
|
578.47 |
|
|
669.00 |
|
|
622.60 |
|
|
576.64 |
|
|
660.87 |
|
|
625.09 |
|
|
615.61 |
Total for skilled patient payors (1) |
|
799.34 |
|
|
755.50 |
|
|
840.05 |
|
|
773.19 |
|
|
744.55 |
|
|
808.09 |
|
|
805.42 |
|
|
776.92 |
Medicaid |
|
295.91 |
|
|
289.89 |
|
|
307.71 |
|
|
297.55 |
|
|
308.84 |
|
|
296.27 |
|
|
304.70 |
|
|
294.46 |
Private and other |
|
391.41 |
|
|
320.93 |
|
|
426.07 |
|
|
336.44 |
|
|
346.27 |
|
|
341.17 |
|
|
388.39 |
|
|
332.40 |
Total (2) |
$ |
465.52 |
|
$ |
464.61 |
|
$ |
494.08 |
|
$ |
470.60 |
|
$ |
405.66 |
|
$ |
460.82 |
|
$ |
458.53 |
|
$ |
465.23 |
__________________ |
||
(1) |
|
Represents weighted average of revenue generated by Medicare and managed care payor sources. |
(2) |
|
Represents weighted average. |
The following table presents average daily rates by payor source, excluding services that are not covered by the daily rate, for the six months ended June 30, 2024 and 2023:
|
Six Months Ended June 30, |
||||||||||||||||||||||
Average daily rate |
Mature |
|
Ramping |
|
New |
|
Total |
||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Medicare |
$ |
939.91 |
|
$ |
852.46 |
|
$ |
966.33 |
|
$ |
869.07 |
|
$ |
930.02 |
|
$ |
868.65 |
|
$ |
950.80 |
|
$ |
862.37 |
Managed care |
|
604.43 |
|
|
573.93 |
|
|
664.97 |
|
|
617.61 |
|
|
567.60 |
|
|
623.11 |
|
|
620.08 |
|
|
603.11 |
Total for skilled patient payors (1) |
|
796.73 |
|
|
757.22 |
|
|
841.57 |
|
|
767.70 |
|
|
733.14 |
|
|
787.99 |
|
|
803.17 |
|
|
772.32 |
Medicaid |
|
295.48 |
|
|
286.70 |
|
|
308.29 |
|
|
292.51 |
|
|
308.72 |
|
|
296.20 |
|
|
304.70 |
|
|
292.11 |
Private and other |
|
385.84 |
|
|
310.77 |
|
|
417.29 |
|
|
328.06 |
|
|
349.97 |
|
|
346.82 |
|
|
385.59 |
|
|
329.83 |
Total (2) |
$ |
464.80 |
|
$ |
474.14 |
|
$ |
497.10 |
|
$ |
466.65 |
|
$ |
403.58 |
|
$ |
478.36 |
|
$ |
459.17 |
|
$ |
474.58 |
__________________ |
||
(1) |
|
Represents weighted average of revenue generated by Medicare and managed care payor sources. |
(2) |
|
Represents weighted average. |
Key Skilled Services Metrics
We monitor the below key skilled services metrics across all of our facilities and by Mature facilities, Ramping facilities, and New facilities. Mature facilities are defined as facilities purchased more than 36 months prior to a respective measurement date. Ramping facilities are defined as facilities purchased within 18 to 36 months prior to a respective measurement date. New facilities are defined as facilities purchased less than 18 months prior to a respective measurement date.
- Skilled nursing services revenue — Skilled nursing services revenue reflects the portion of patient and resident service revenue generated from all patients in skilled nursing facilities, excluding revenue generated from our assisted and independent living services.
-
Skilled mix — We measure both revenue and nursing patient days by payor. Medicare and managed care patients, whom we refer to as high acuity patients, typically require a higher level of skilled nursing care. As a result, Medicare and managed care reimbursement rates are typically higher than those from other payors. In most states, Medicaid reimbursement rates are generally the lowest of all payor types. Changes in the payor mix can significantly affect our revenue and profitability. To monitor this performance, we evaluate two different measures of skilled mix:
- Skilled mix by revenue — Skilled mix by revenue represents the portion of routine revenue generated from treating high acuity Medicare and managed care patients. Routine revenue refers to skilled nursing services revenue generated by contracted daily rates charged for skilled nursing services. Services provided outside of routine contractual agreements are recorded separately as ancillary revenue, including Medicare Part B therapy services, and are not routine revenue. The inclusion of therapy and other ancillary treatments in the contracted daily rate varies by payor source and by contract. Revenue associated with calculating skilled mix is based on contractually agreed-upon amounts or rates, excluding the estimates of variable consideration under the revenue recognition standard, Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606.
- Skilled mix by nursing patient days — Skilled mix by nursing patient days represents the number of days our high acuity Medicare and managed care patients receive skilled nursing services at skilled nursing facilities as a percentage of the total number of days that patients from all payor sources receive skilled nursing services at skilled nursing facilities for any given period.
- Occupancy — The total number of patients occupying a bed in a skilled nursing facility as a percentage of the beds in such facility that are available for occupancy during the period.
- Number of facilities — The total number of skilled nursing facilities that we operate.
- Number of operational beds — The total number of operational beds associated with the skilled nursing facilities that we own.
PACS GROUP, INC. AND SUBSIDIARIES |
|||||||||||||
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION |
|||||||||||||
(dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Net (loss) income |
$ |
(10,908 |
) |
|
$ |
21,220 |
|
$ |
38,232 |
|
|
$ |
58,818 |
Less: Net income attributable to noncontrolling interest |
|
2 |
|
|
|
2 |
|
|
4 |
|
|
|
3 |
Add: Interest expense |
|
9,187 |
|
|
|
15,306 |
|
|
24,578 |
|
|
|
25,942 |
(Benefit) provision for income taxes |
|
(1,474 |
) |
|
|
10,370 |
|
|
22,441 |
|
|
|
21,871 |
Depreciation and amortization |
|
8,776 |
|
|
|
6,159 |
|
|
16,678 |
|
|
|
11,988 |
EBITDA |
$ |
5,579 |
|
|
$ |
53,053 |
|
$ |
101,925 |
|
|
$ |
118,616 |
Adjustments to EBITDA: |
|
|
|
|
|
|
|
||||||
Acquisition related costs |
|
486 |
|
|
|
205 |
|
|
692 |
|
|
|
708 |
Loss resulting from debt restructuring |
|
— |
|
|
|
3,109 |
|
|
— |
|
|
|
3,109 |
Gain on lease termination |
|
— |
|
|
|
— |
|
|
(8,046 |
) |
|
|
— |
Stock-based compensation expense |
|
90,936 |
|
|
|
— |
|
|
90,936 |
|
|
|
— |
Loss from equity method investment in joint venture |
|
2,736 |
|
|
|
— |
|
|
2,736 |
|
|
|
— |
Adjusted EBITDA |
$ |
99,737 |
|
|
$ |
56,367 |
|
$ |
188,243 |
|
|
$ |
122,433 |
Rent - cost of services |
|
65,833 |
|
|
|
51,456 |
|
|
129,794 |
|
|
|
96,560 |
Adjusted EBITDAR |
$ |
165,570 |
|
|
|
|
$ |
318,037 |
|
|
|
||
Non-GAAP Financial Measures
In addition to our results provided throughout that are determined in accordance with GAAP, we also present the following non-GAAP financial measures: EBITDA, Adjusted EBITDA and Adjusted EBITDAR (collectively, Non-GAAP Financial Measures). EBITDA and Adjusted EBITDA are performance measures. Adjusted EBITDAR is a valuation measure. These Non-GAAP Financial Measures have no standardized meaning defined by GAAP, and therefore have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for analysis of our results as reported in accordance with GAAP. You should review the reconciliation of net income to the Non-GAAP Financial Measures in the table above, together with our audited combined/consolidated financial statements and the related notes in their entirety, and should not rely on any single financial measure. Additionally, other companies may define these or similar Non-GAAP Financial Measures with the same or similar names differently, and because these Non-GAAP Financial Measures are not standardized, it may not be possible to compare these financial measures to those of other companies.
Performance Measures
We use EBITDA and Adjusted EBITDA to facilitate internal comparisons of our historical operating performance on a more consistent basis, as well as for business planning and forecasting purposes. In addition, we believe the presentation of EBITDA and Adjusted EBITDA is useful to investors, analysts and other interested parties in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our ongoing operating performance.
EBITDA – We calculate EBITDA as net income, adjusted for net losses attributable to noncontrolling interest, before: other expense, net; provision for income taxes; and depreciation and amortization.
Adjusted EBITDA – We calculate Adjusted EBITDA as EBITDA further adjusted for non-core business items, which for the reported periods includes, to the extent applicable, costs incurred to acquire operations that are not capitalizable, losses incurred from debt restructuring, gains on lease termination, stock-based compensation expense, loss from equity method investment in joint venture and certain one-time expenses that are not representative of our underlying operating performance. Costs related to acquisitions include costs related to our acquisition of SNF facilities and providers, including related costs such as legal fees, financial and tax due diligence, consulting and escrow fees. The loss related to our equity method investment in joint venture is a loss allocated to us from a discrete disposal recognized by one of our joint ventures.
Valuation Measure
We use Adjusted EBITDAR as a measure to determine the value of prospective acquisitions and to assess the enterprise value of our business without regard to differences in capital structures and leasing arrangements. In addition, we believe that Adjusted EBITDAR is also a commonly used measure by investors, analysts and other interested parties to compare the enterprise value of different companies in the healthcare industry without regard to differences in capital structures and leasing arrangements, particularly for companies with operating and finance leases. For example, finance lease expenditures are recorded in depreciation and interest and are therefore removed from Adjusted EBITDA, whereas operating lease expenditures are recorded in rent expense and are therefore retained in Adjusted EBITDA. Adjusted EBITDAR is a financial valuation measure that is not specified in GAAP, and is not displayed as a performance measure as it excludes rent expense, which is a normal and recurring cash operating expense, and is therefore presented only for the current period. While we believe that Adjusted EBITDAR provides useful insight regarding our underlying operations, excluding the impact of our operating leases, we must still incur cash operating expenses related to our operating leases and rent and such expenses are necessary to operate our leased operations. As a result, Adjusted EBITDAR may understate the extent of our cash operating expenses for the respective period relative to our actual cash needs to operate our leased operations and business.
Adjusted EBITDAR – We calculate Adjusted EBITDAR as Adjusted EBITDA less rent-cost of services.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240812652150/en/
Investor/Media Relations, PACS Group, Inc., 385-988-3596, IR@pacs.com
Source: PACS Group, Inc.
FAQ
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