Use of Proceeds
Meanwhile, the date for the listing is yet to be revealed. Around $330 million of the proceeds from the offering will be used for repaying amounts outstanding under a credit facility, and the remaining funds will be used for general corporate purposes to support the business. The company plans to use a portion of the proceeds to acquire or invest in additional nursing facilities or other businesses and service offerings.
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The nursing home operator also provides a slew of back-office support and consulting services to skilled nursing and post-acute care facilities. Its main offerings are skilled nursing centers, assisted living, senior care, and independent living.
Road Ahead
The company, which has completed an average of around 20 acquisitions and one de-novo or new-build facility per year, plans to continue pursuing similar opportunities to supplement organic growth as it looks to expand its presence in existing and new markets. Other growth strategies include leveraging operational upside within the existing footprint by filling unused capacity while investing in the training of existing leaders and expanding the bench of new administrators.
There has been a steady increase in PACS’ revenues and gross margins in recent years, but operating profit and operating cash flow moderated. In fiscal 2023, the company generated total revenues of $3.11 billion, which is sharply higher than the $2.40 billion revenue it delivered in the previous year. In fiscal 2021, revenues totaled $1.14 billion. Meanwhile, net income decreased to $112.9 million or $0.88 per share in 2023 from $150.5 million or $1.17 per share in 2022, mainly reflecting an increase in operating expenses.