Fed Governor Cook sues Trump over firing attempt
FARMINGTON, Utah - PACS Group, Inc. (NYSE: PACS), a healthcare facilities operator with $3.6 billion in trailing twelve-month revenue and a market capitalization of $1.6 billion, announced Monday it will restate its financial statements for the first two quarters of 2024 due to revenue recognition errors related to Medicare Part B billing for respiratory and certain therapy services. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value.
The healthcare facilities operator determined it overstated revenue by approximately $15-17 million for the quarter ended March 31, 2024, and $46-48 million for the quarter ended June 30, 2024, according to a company press release. The stock has declined 21% year-to-date, though InvestingPro data shows the company maintains a "GREAT" overall financial health score, with analysts expecting continued profitability this year. Get access to 12+ additional InvestingPro Tips and comprehensive financial metrics to make better investment decisions.
The restatement follows an independent investigation by the company’s Audit Committee, which is nearing completion. The committee has found "no basis to question the integrity" of PACS’ executive leadership team, including its CEO and CFO.
PACS has been unable to file its quarterly report for the period ended September 30, 2024, its annual report for 2024, and its first quarter 2025 report. The New York Stock Exchange has granted the company until September 2, 2025, to file these delinquent reports and regain compliance with listing standards.
As part of its response, PACS has appointed an Interim Chief Compliance Officer and begun implementing enhanced regulatory compliance measures. The company is also assessing how the restatement affects its internal financial controls.
PACS Group operates 314 post-acute care and senior living facilities across 17 states, serving over 30,000 patients daily.
In other recent news, PACS Group, Inc. has amended its credit agreement, extending the deadline for delivering its audited annual financial statements. This amendment, made with Truist Bank and associated lenders, changes the timeframe for PACS Holdings, LLC, a subsidiary of PACS Group, to provide its audited financial statements from 90 days to 135 days after the fiscal year-end. This adjustment applies to the financial documents for the year ended December 31, 2024. The agreement also includes a provision for a possible further extension, subject to negotiation with the Administrative Agent or certain lenders. This change allows PACS Group additional time to prepare and audit its financial statements, a complex task for large corporations. The full details of this amendment will be disclosed in the company’s upcoming Quarterly Report on Form 10-Q for the quarter ending March 31, 2025. Investors may interpret this extension as a strategic move for greater flexibility in financial reporting. This update reflects PACS Group’s current financial arrangements as outlined in a press release.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.