The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: David MacDonald - Truist Financial Corporation - Analyst
: Thank you, good afternoon, guys, I got a handful of questions. First, guys, can you just talk a little bit about-- you mentioned the momentum
in the business a couple of times. If we look at the occupancy and skilled mix opportunity in the new and ramping, can you just spend a
minute on that?
And then kind of as we head towards 2026, is there any areas that you would call out in terms of areas of disproportionate investment?
Question: David MacDonald - Truist Financial Corporation - Analyst
: Okay. And then, guys, just I guess, second question, when you think about some of the changes the company has made relative to controls,
what would you call out as the one or two changes that you view as most impactful?
Question: David MacDonald - Truist Financial Corporation - Analyst
: Okay, And then, guys, just last one for me, I guess, a two-part question. One, if I look at year-to-date cash flow generation, it looked very
strong. Anything that you would flag or call out there that's driving that? And then secondly, if you could just touch quickly on M&A.
If you look at the number of facilities that you guys have integrated and you look at the activity year-to-date in '25, just an update on kind
of the pipeline, how that's looking and how you guys are thinking about M&A on a go-forward basis?
Question: Benjamin Rossi - JPMorgan Chase & Co - Analyst
: Hey, great, thanks for the question here. So just thinking about long-term growth, with the changes to your baseline revenue and earnings
structure (inaudible) 2025 outlook now implying that 30% top line growth and EBITDA growing further underneath that, what is the right
way to think about your long-term growth algorithm? Is the previous framing of maybe low double digits across revenue and EBITDA still
kind of roughly applicable?
And then I think you kind of confirmed it here, but regarding your M&A with the seven facilities year-to-date, I think you mentioned 20
facilities per year going forward is still the right way to think about inorganic?
Question: Benjamin Rossi - JPMorgan Chase & Co - Analyst
: Got it. Okay. And then across M&A, I appreciate your comments about activity progressing nicely over the past year. I guess just when
thinking about your cohorts, what is the current embedded EBITDA opportunity across your new and ramping cohorts?
And then when thinking about the 100-plus facilities you've added since last year, can you give any color on the embedded EBITDA
opportunity across those newly acquired facilities?
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NOVEMBER 19, 2025 / 10:30PM, PACS.N - Q3 2025 Pacs Group Inc Earnings Call
Question: Benjamin Rossi - JPMorgan Chase & Co - Analyst
: Great. And then if I could just sneak in one last one here. Just on the Medicaid rate development. Just thinking about rate development
going into next year, how are you modeling growth relative to your historical trend at maybe 2% year-over-year? And what are any of your
maybe embedded assumptions for the Medicaid supplemental program?
And then for maybe some of the larger states like California, South Carolina or Washington, are you hearing any updates from your state
counterparts on how they're factoring some of the related policy changes from the OBBBA as part of their budgeting?
Question: Benjamin Rossi - JPMorgan Chase & Co - Analyst
: Great, appreciate all the additional color here thanks.
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consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.
NOVEMBER 19, 2025 / 10:30PM, PACS.N - Q3 2025 Pacs Group Inc Earnings Call
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