PACS Group (PACS) 44th Annual J.P. Morgan Healthcare Conference summary

Company mission and operating model

• Focused on revolutionizing post-acute care through decentralized, locally led, centrally supported operations.

• Emphasizes values such as love and quality in care, with a mission-driven approach to staff recruitment and training.

• Targets underperforming facilities, deploying unique leadership and clinical models to improve outcomes.

• Prioritizes investment in people, training, and equipment to elevate care and occupancy rates.

• Shares quality results with local partners, creating a virtuous cycle of referrals and improved financials.

Growth strategy and portfolio development

• Began with two facilities in 2013, now operates 321 facilities with 31,000 patients and 47,000 employees.

• Grows primarily through acquisition, focusing on facilities with low occupancy and operational challenges.

• Maintains a mix of leased and owned properties, with a path to own nearly 50% of the portfolio in coming years.

• Consolidation opportunities remain significant, with top nine providers holding only 11% market share.

• Cohorts facilities as new, ramping, or mature, with performance improving over time.

Financial performance and capital deployment

• Reported $5.14 billion in revenue and $456.9 million in Adjusted EBITDA over the last 12 months.

• Holds $355.7 million in cash and a $600 million credit facility, providing strong liquidity for growth.

• Net leverage is effectively zero, supporting further acquisitions and real estate investments.

• Targets acquiring 20 facilities per year, with a healthy and diverse M&A pipeline.

• Real estate strategy includes negotiating purchase options and leveraging HUD financing for flexibility.