PACS Group, Inc. Jefferies Healthcare Services and Technology Conference

Yeah, sure, and thanks, Brian. Thanks, everyone. We are excited to be here. PACS is a post-acute healthcare services company. We operate skilled nursing facilities across the country, as was mentioned. Our business model is one where we target underperforming facilities that have not reached their full potential operationally. We have a leadership model and operational model that we deploy in those facilities. We work to turn the operations around and add value to those locations. We started in 2014. I am one of the co-founders of the company, along with my business partner, Mark Hancock. Started with two facilities back in 2014. We have grown today to around 350- 58 58.

We have done that, again, largely through the business thesis of taking underperforming and deploying a new operating model to them. The company as we look at this past year in 2026, or I should say in 2026, the first two quarters of 2026, we have been performing at a very high level. We continue to execute on the clinical side, which is key to our success as an organization. We like to think of ourselves as one of the best providers in our sector from a clinical standpoint. The metrics, I think, point to that. We believe strongly that everything that we do, all the success that we have been able to achieve at our facility level as an organization begins with quality care. As we take these underperforming facilities, typically they are broken in many ways.

Clinically, they, again, are not performing at the level that they should. As we invest in those facilities, deploy capital, and probably more importantly, deploy the leadership needed for those facilities to turn around, we start to see the clinical product improve and the clinical outcomes improve. That creates a virtuous cycle within the facilities where reimbursement improves, the occupancy levels improve, and the referral patterns improve. So it all begins with care and quality. That is something that we- It is a reputation that we are trying to build for ourselves. I think over the last several years, we have been able to accomplish that. That is a general overview of the company.

Sure, you bet. First of all, why did I join PACS? Meeting Jason, his other co-founder, Mark Hancock, Josh, this team, they're an incredible group of people, high character, high integrity people. Looking at the operating model, that was so important to me, and I've been even more impressed after joining than I was in looking at it previous. This operating team is the finest operating team I've ever had the opportunity to be associated with. They know what drives results, and they focus on those things, and then they produce results. As a CFO, it's great to have that comfort to know that the operating team's going to come through, particularly when you're talking about guidance. You mentioned guidance. We've been really pleased with how the year has gone so far, as Jason mentioned.

We went into the year thinking we'd have about $565 million of EBITDA. That was the midpoint of our initial guidance. Our guidance has improved now to a midpoint of $650 million of EBITDA, so improved quite a bit. That means we've had a really strong first and second quarter, and we expect a good third and fourth quarter. We're about halfway to that 650 mark through the first two quarters of the year, a little less. So we expect a good second half of the year as well. So really pleased to be at PACS, an incredible group of people. My finance organization is a real high-quality organization as well. I'm just trying to make sure I build that finance organization to be able to scale with the growth of the business as we go forward.

Yeah. As mentioned, both for Jason and myself, we are nursing home administrators. That is our background. That is how we spent the early parts of our career. We understand what a good high-performing facility looks like and one that is underperforming. As he mentioned, our strategy has been, and really our mission has been to take the unfortunate reality that a lot of facilities are underperforming, both clinically and financially, and to be able to go in and to assess what we can do to make improvements. We generally start with assessing the leadership in the facility at the administrator position. The administrator hangs their license. They are responsible to run the day-to-day operations, and unfortunately in our space, we have not always attracted the best and the brightest, the most sophisticated operators.

For us, that was a heavy investment that we made early on, was teaching and training, recruiting what I would say is a non-typical nursing home administrator. Someone who is entrepreneurial, who is driven, who cares about the business, but understands that there are levers when you are running a business that you must pull in order to have great outcomes, and have those outcomes be great clinically and also financially. You mentioned KPIs for us. As we assess leaders, oftentimes, either refine the leader that is in place or make a replacement, and we have mentioned a number of times our Administrator in Training program, we think is the best in the business. We have about 50 AITs at this point.

That has grown over time with the growth, having a bench of talented individuals who are coming up, experiencing the day-to-day, understand what a good facility looks like, feels like, runs like, is important. We have plenty of resource to do that. As we look at these acquisitions, we are assessing that leadership, and then that leadership is assessing the team. Your director of nursing, your director of therapy, other key department managers who are leading people and processes in the facility are essential. That administrator, we believe, is capable to do those things. Decisions can stay as close to the patient as possible. When that happens, you start to see a buy-in.

You start to see people who are dedicated, and have access to what we offer at PACS, which is systems and technology and live information that they can view in the moment to see how they are performing clinically. What changes they can make, what they can do to train and educate their staff to take a more clinically complex patient, do it well, so that they can build a reputation in the community, where the people who are either contracting where their patients are going to go or actually referring patients to a facility are picking your facility to do that. We are tracking quality measures to ensure that we are providing excellent care. As Jason mentioned, that virtuous cycle is when that goes really well, that becomes noted in the community, and they start sending more patients and more clinically acute patients.

The KPIs we are usually measuring quality measures, then we are measuring occupancy, which we talked a lot about. How many heads are in the beds, and of those, how many of those are short-term, high acuity patients that generally reimburse higher but need an additional level and quality of care that is essential. We focus on those metrics. But when we talk about deploying into our model, it is assessing people and leadership, which has been foundational to how we have grown as an organization.