EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Basic net income per share is calculated by dividing net income attributable to the common stockholders by the weighted-average shares of Common Stock outstanding for the period. The computation of diluted net income per share is similar to the computation of basic net income per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the dilutive potential shares of common stock had been issued. As the Company did not have any potentially dilutive securities, basic and diluted EPS are the same.

The following table sets forth the computation of the Company’s basic and diluted net income attributable per share to common stockholders for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Basic EPS:
Numerator:
Net income	$	49,140	$	37,598
Less: net income attributable to noncontrolling interest	$	2	$	1
Net income attributable to PACS Group, Inc.	$	49,138	$	37,597

Denominator:
Basic and diluted weighted average common stock outstanding	128,723,386		128,723,386

Net income per common share attributable to PACS Group, Inc.
Basic and diluted	$	0.38	$	0.29

The Reorganization referred to in Note 1 resulted in the Common Shares outstanding being converted from 600 shares of PGI to 20,000 shares of PACS Group (a 1 to 33.33 conversion ratio).

On March 31, 2024, the Company’s board of directors approved a 1 to 6,436.1693 stock split of its issued and outstanding common stock, which was effective by amendment to the Company’s charter on April 1, 2024. As part of the amendment, the number of authorized shares of common stock was revised to 1,250,000,000 and the par value of the common stock was not adjusted. All issued and outstanding common stock and per share amounts contained in the condensed combined/consolidated financial statements have been retrospectively adjusted to give effect to the stock split for all periods presented.