第99.1展示文本
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康瑞特集團控股母公司，Inc. 宣佈成果
截至2024年9月30日的第三季度和現金股息
德克薩斯州艾迪生 — 2024年10月31日 — 康博體集團控股母公司 (「康博體」，「我們」，「我們」，或「我們的」) (紐交所: CON) 今日宣佈截至2024年9月30日的第三季度業績，並宣佈派發現金股利。
「我們在本季度取得了成功，並在關鍵戰略舉措和與Select Medical的分離方面取得了重大進展。我爲我們的成果、紮實的執行以及同事們持續致力提供高質量以患者爲中心的護理而感到自豪。」Concentra首席執行官Keith Newton如是說。
Matt DiCanio, 總裁及致富金融官員，表示：「我們在新舊領域擴張了我們的市場，並取得了一些最高的患者滿意度評分。憑藉我們強大的發展管道和成熟的運營模式，我們有信心能夠實現我們的戰略業務目標，並且在今年餘下時間和2025年繼續保持增長的良好位置。」
2024年第三季度業績亮點
截至2024年9月30日的第三季度 2024年和2023年
| · | 2023年第三季度營業收入爲48960萬美元，同比增長3.3%，而上季度爲47400萬美元。 |
| · | 2024年第三季度淨利潤4580萬美元，每股收益爲0.37美元 |
| · | 2023年第三季度經調整的EBITDA爲10160萬美元，較2023年第三季度的9890萬美元增長2.7%。 |
| · | 現金餘額爲13680萬美元，淨槓桿率爲3.7倍 |
| · | 本季度患者就診次數爲3,258,605次，每天就診次數爲50,916次，與2023年第三季度相比，每天就診次數下降了2.2% |
| · | 訪問收入爲$141.42，比2023年第三季度的$136.11增長了3.9% |
| · | 全球職業健康中心總數爲549家，相比2023年第三季度結束時的539家 |
| · | 2023年Q3結束時，總共有156家現場健康診所，與145家相比 |
2024年第三季度財務概況
2024年9月30日結束的第三季度，營業收入較去年同期的47400萬美元增長了3.3%至48960萬美元。截至2024年9月30日結束的第三季度，營運收入比去年同期增加了6.5%，從8090萬美元增至8620萬美元。截至2024年9月30日結束的第三季度，淨利潤爲4580萬美元，每股普通股收益爲0.37美元。截至2024年9月30日結束的第三季度，調整後的EBITDA較去年同期的9890萬美元增長了2.7%，至10160萬美元。截至2024年9月30日結束的第三季度，調整後的EBITDA利潤率爲20.7%，較去年同期的20.9%下降。有關調整後的EBITDA的定義以及淨利潤與調整後的EBITDA的調和表格，請參見本公告的X表格。
2024年9月30日截至年度財務概況
2024年9月30日結束的九個月中，營業收入增長了2.7%，達到了143520萬美元，相比去年同期的139730萬美元。截至2024年9月30日的九個月，營業收入爲24570萬美元，同比去年同期的23830萬美元增長了3.1%。2024年9月30日結束的九個月，淨利潤爲14910萬美元，每股普通股收益爲1.32美元。截至2024年9月30日的九個月，調整後的EBITDA爲29930萬美元，同比去年同期的29300萬美元增長了2.1%。2024年9月30日結束的九個月，調整後的EBITDA利潤率爲20.9%，而去年同期爲21.0%。調整後的EBITDA的定義以及淨利潤與調整後的EBITDA的調節表格已在本公告的X表中呈現。
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資產負債表：
截至2024年9月30日，Concentra的資產負債表顯示現金爲13680萬美元，總債務爲148230萬美元，總資產爲248100萬美元。
現金流量
2024年9月30日結束的第三季度，經營活動提供的現金流總額爲6590萬美元，而去年同季度爲5860萬美元。2024年9月30日結束的第三季度，資本支出總額爲1510萬美元，不包括收購。
分紅
2024年10月28日，Concentra董事會宣佈每股派發現金股息$0.0625。股息將於2024年11月22日支付給截至2024年11月13日收盤後持股的股東。
未來是否會宣佈分紅派息並無保證。未來的分紅宣佈和支付由Concentra的董事會自主決定，考慮到各種因素，包括但不限於Concentra的財務狀況、營運結果、可用現金、當前和預期的現金需求、Concentra的債務條款以及Concentra的董事會認爲相關的其他因素。
業務展望
Concentra正在發佈其2024年的業務展望。 Concentra預計營業收入約爲$19億，調整後的EBITDA預計在$37000萬至$37500萬之間，資本支出預計在$6500萬至$7000萬之間，我們的淨槓桿率預計在3.5至3.6倍之間。完整的2024年調整後的EBITDA預期淨利潤調節見本公告第十二表。
首次公開發行和債務交易
2024年7月26日，Concentra完成了對其普通股22,500,000股的首次公開發行（「IPO」），每股面值爲$0.01，每股初始公開發行價格爲$23.50，扣除承銷折扣和佣金後的淨收益爲$4.997億，其中包括承銷商行使購買額外750,000股公司普通股的選擇權，淨收益爲$1.67億，扣除承銷折扣和佣金後爲$1.0百萬。Concentra股票於2024年7月25日在紐約證券交易所以「CON」爲標的上市交易。與此次發行有關，Concentra Health Services, Inc. (「CHSI」)，Concentra的全資子公司，達成了某些融資安排，其中包括信貸設施和截至2032年到期的6.875%的6.875%優先票據（「Notes」）共計650.0百萬美元的本金額。 Notes是由Concentra和其某些全資子公司在高級無擔保基礎上無條件擔保的。信貸設施包括850.0百萬美元的定期貸款和400.0百萬美元的循環信貸設施。循環信貸設施在交易截止時未動用。定期貸款於2031年7月26日到期，利率爲定期SOFR加2.25%，受基於槓桿的定價格侷限制。循環信貸設施於2029年7月26日到期，利率爲定期SOFR加2.50%，受基於槓桿的定價格侷限制。
首次公開募股和債務融資的淨收益，除3470萬美元外，通過發放股息和償還應付票據支付給了Select醫療公司。
公司概況
Concentra是美國擁有最多地點的職業健康服務提供者，旨在通過一位患者一次的使命改善美國工作人口的健康。我們的11,000名同事和聯營醫師及臨床醫生支持提供各種廣泛的服務，包括職業和消費者健康服務以及其他直接面向雇主的護理，平均每天向45個州的超過50,000名患者提供服務，我們擁有549家職業健康中心，156家雇主工作場所設置的健康診所，以及截至2024年9月30日的Concentra遠程醫療。
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看漲會議通話
Concentra will host a conference call regarding its third quarter results and its business outlook on Friday, November 1, 2024, at 10:30 am ET. The conference call will be a live webcast and can be accessed at Concentra Group Holdings Parent, Inc.’s website at www.concentra.com and a replay of the webcast will be available shortly after the call through the same link.
For listeners wishing to dial-in via telephone, or participate in the question and answer session, you may pre-register for the call at Concentra Earnings Call Registration to obtain your dial-in number and unique passcode.
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* * * * *
Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), including statements related to Concentra’s 2024 and long-term business outlook. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements due to factors including the following:
| · | The frequency of work-related injuries and illnesses; |
| · | The adverse changes to our relationships with employer customers, third-party payors, workers’ compensation provider networks or employer services networks; |
| · | Changes to regulations, new interpretations of existing regulations, or violations of regulations; |
| · | State fee schedule changes undertaken by state workers’ compensation boards or commissions and other third-party payors; |
| · | Our ability to realize reimbursement increases at rates sufficient to keep pace with the inflation of our costs; |
| · | Labor shortages, increased employee turnover or costs, and union activity could significantly increase our operating costs; |
| · | Our ability to compete effectively with other occupational health centers, onsite health clinics at employer worksites, and healthcare providers; |
| · | A security breach of our, or our third-party vendors’, information technology systems which may cause a violation of HIPAA and subject us to potential legal and reputational harm; |
| · | Negative publicity which can result in increased governmental and regulatory scrutiny and possibly adverse regulatory changes; |
| · | Litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our business and financial statements and the effects of claims asserted against us could subject us to substantial uninsured liabilities; |
| · | Acquisitions may use significant resources, may be unsuccessful, and could expose us to unforeseen liabilities; |
| · | Our exposure to additional risk due to our reliance on third parties in many aspects of our business; |
| · | Compliance with applicable laws regarding the corporate practice of medicine and therapy and fee-splitting; |
| · | Our facilities are subject to extensive federal and state laws and regulations relating to the privacy of individually identifiable information; |
| · | Compliance with applicable data interoperability and information blocking rule; |
| · | Facility licensure requirements in some states are costly and time-consuming, limiting or delaying our operations; |
| · | Our ability to adequately protect and enforce our intellectual property and other proprietary rights; |
| · | Adverse economic conditions in the U.S. or globally; |
| · | Any negative impact on the global economy and capital markets resulting from other geopolitical tensions; |
| · | Our ability to maintain satisfactory credit ratings; |
| · | The inability to execute on the separation from Select Medical; |
| · | The risk of disruption or unanticipated costs in connection with the separation; |
| · | Our ability to succeed as a standalone publicly traded entity; |
| · | Restrictions on our business, potential tax and indemnification liabilities and substantial charges in connection with the separation, the distribution and related transactions; |
| · | The negative impact of public threats such as a global pandemic or widespread outbreak of an infectious disease similar to the COVID-19 pandemic; |
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| · | The loss of key members of our management team and our ability to attract and retain talented, highly skilled employees and a diverse workforce, and on the succession of our senior management; and, |
| · | Changes in tax laws or exposures to additional tax liabilities. |
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results or performance.
Investor inquiries:
Bill Chapman
Vice President, Strategy & Investor Relations
972-725-6488
ir@concentra.com
SOURCE: Concentra Group Holdings Parent, Inc.
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I. Condensed Consolidated Statements of Operations
For the Third Quarter Ended September 30, 2024 and 2023
(In thousands, except per share amounts, unaudited)
| 2024 | 2023 | % Change | ||||||||||
| Revenue | $ | 489,638 | $ | 473,964 | 3.3 | % | ||||||
| Costs and expenses: | ||||||||||||
| Cost of services, exclusive of depreciation and amortization | 351,103 | 336,812 | 4.2 | |||||||||
| General and administrative, exclusive of depreciation and amortization (1) | 37,088 | 38,245 | (3.0 | ) | ||||||||
| Depreciation and amortization | 15,213 | 17,959 | (15.3 | ) | ||||||||
| Total costs and expenses | 403,404 | 393,016 | 2.6 | |||||||||
| Income from operations | 86,234 | 80,948 | 6.5 | |||||||||
| Other income and expense: | ||||||||||||
| Interest expense on related party debt | (2,691 | ) | (11,255 | ) | N/M | |||||||
| Interest expense | (21,369 | ) | (64 | ) | N/M | |||||||
| Income before income taxes | 62,174 | 69,629 | (10.7 | ) | ||||||||
| Income tax expense | 16,415 | 15,205 | 8.0 | |||||||||
| Net income | 45,759 | 54,424 | (15.9 | ) | ||||||||
| Less: Net income attributable to non-controlling interests | 1,421 | 1,318 | 7.8 | |||||||||
| Net income attributable to Concentra | $ | 44,338 | $ | 53,106 | (16.5 | )% | ||||||
| Basic and diluted earnings per common share:(2) | $ | 0.37 | $ | 0.51 | ||||||||
| (1) | Includes the shared service fee from related party of $3.8 million and $3.6 million for the third quarter ended September 30, 2024 and 2023, respectively. |
| (2) | Refer to table III for calculation of earnings per common share. |
N/M Not meaningful
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II. Condensed Consolidated Statements of Operations
For the Nine Months Ended September 30, 2024 and 2023
(In thousands, except per share amounts, unaudited)
| 2024 | 2023 | % Change | ||||||||||
| Revenue | $ | 1,435,151 | $ | 1,397,341 | 2.7 | % | ||||||
| Costs and expenses: | ||||||||||||
| Cost of services, exclusive of depreciation and amortization | 1,027,366 | 994,726 | 3.3 | |||||||||
| General and administrative, exclusive of depreciation and amortization (1) | 110,825 | 109,898 | 0.8 | |||||||||
| Depreciation and amortization | 51,568 | 54,552 | (5.5 | ) | ||||||||
| Total costs and expenses | 1,189,759 | 1,159,176 | 2.6 | |||||||||
| Other operating income | 284 | 151 | 88.1 | |||||||||
| Income from operations | 245,676 | 238,316 | 3.1 | |||||||||
| Other income and expense: | ||||||||||||
| Equity in losses of unconsolidated subsidiaries | (3,676 | ) | (526 | ) | 598.9 | |||||||
| Interest expense on related party debt | (21,980 | ) | (33,831 | ) | N/M | |||||||
| Interest expense | (21,275 | ) | (108 | ) | N/M | |||||||
| Income before income taxes | 198,745 | 203,851 | (2.5 | ) | ||||||||
| Income tax expense | 49,648 | 47,964 | 3.5 | |||||||||
| Net income | 149,097 | 155,887 | (4.4 | ) | ||||||||
| Less: Net income attributable to non-controlling interests | 4,066 | 3,775 | 7.7 | |||||||||
| Net income attributable to Concentra | $ | 145,031 | $ | 152,112 | (4.7 | )% | ||||||
| Basic and diluted earnings per common share:(2) | $ | 1.32 | $ | 1.46 | ||||||||
| (1) | Includes the shared service fee from related party of $11.5 million and $11.0 million for the nine months ended September 30, 2024 and 2023, respectively. |
| (2) | Refer to table III for calculation of earnings per common share. |
N/M Not meaningful
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III. Earnings per Share
For the Three and Nine Months Ended September 30, 2024 and 2023
(In thousands, except per share amounts, unaudited)
At September 30, 2024, the Company’s capital structure consists of common stock. There were no participating shares or securities outstanding during the three and nine months ended September 30, 2024.
The following table sets forth the computation of earnings per share (“EPS”) in 2024:
| Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
| Net Income Attributable to Concentra | Shares(1) | Basic and Diluted EPS | Net Income Attributable to Concentra | Shares(1) | Basic and Diluted EPS | |||||||||||||||||||
| (in thousands, except for per share amounts) | ||||||||||||||||||||||||
| Common shares | $ | 44,338 | 120,765 | $ | 0.37 | $ | 145,031 | 109,691 | $ | 1.32 | ||||||||||||||
At September 30, 2023, the Company’s capital structure included Class A, B and C units outstanding and unvested restricted interests and outstanding options. To calculate EPS for the three and nine months ended September 30, 2023, Concentra applied the two-class method because its unvested restricted interests and outstanding options are participating securities.
The following table sets forth the net income attributable to the Company, its units outstanding, and its participating units outstanding:
Three Months September 30, | Nine Months September 30, | |||||||
| (in thousands) | ||||||||
| Net income | $ | 54,424 | $ | 155,887 | ||||
| Less: Net income attributable to non-controlling interests | 1,318 | 3,775 | ||||||
| Net income attributable to Concentra | 53,106 | 152,112 | ||||||
| Less: Distributed and undistributed income attributable to participating shares | 66 | 356 | ||||||
| Distributed and undistributed income attributable to outstanding shares | $ | 53,040 | $ | 151,756 | ||||
The following table sets forth the computation of EPS in 2023, under the two-class method:
| Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
| Net Income Allocation | Shares (1)(2) | Basic and Diluted EPS | Net Income Allocation | Shares (1)(2) | Basic and Diluted EPS | |||||||||||||||||||
| (in thousands, except for per share amounts) | ||||||||||||||||||||||||
| Outstanding Class A, Class B, and Class C shares | $ | 53,040 | 104,035 | $ | 0.51 | $ | 151,756 | 103,980 | $ | 1.46 | ||||||||||||||
| Participating shares | 66 | 130 | $ | 0.51 | 356 | 244 | $ | 1.46 | ||||||||||||||||
| Total Company | $ | 53,106 | $ | 152,112 | ||||||||||||||||||||
| (1) | The recapitalization of the members units into common shares has been treated as such for earnings per share purposes and has been reflected retrospectively for all periods, along with the one for 4.295 reverse stock split. |
| (2) | Represents the weighted average units outstanding during the period. |
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IV. Condensed Consolidated Balance Sheets
(In thousands, unaudited)
| September 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 136,822 | $ | 31,374 | ||||
| Accounts receivable | 232,202 | 216,194 | ||||||
| Other current assets | 40,933 | 46,850 | ||||||
| Total Current Assets | 409,957 | 294,418 | ||||||
| Operating lease right-of-use assets | 430,133 | 397,852 | ||||||
| Property and equipment, net | 191,099 | 178,370 | ||||||
| Goodwill | 1,234,707 | 1,229,745 | ||||||
| Identifiable intangible assets, net | 209,171 | 224,769 | ||||||
| Other assets | 5,975 | 8,406 | ||||||
| Total Assets | $ | 2,481,042 | $ | 2,333,560 | ||||
| Liabilities and Equity | ||||||||
| Current Liabilities: | ||||||||
| Payables and accruals | $ | 177,620 | $ | 196,879 | ||||
| Due to related party | 7,753 | 3,354 | ||||||
| Current operating lease liabilities | 74,411 | 72,946 | ||||||
| Current portion of long-term debt and notes payable | 9,737 | 1,455 | ||||||
| Total Current Liabilities | 269,521 | 274,634 | ||||||
| Non-current operating lease liabilities | 391,037 | 357,310 | ||||||
| Long-term debt, net of current portion | 1,472,610 | 3,291 | ||||||
| Long-term debt with related party | — | 470,000 | ||||||
| Non-current deferred tax liability | 22,454 | 23,364 | ||||||
| Other non-current liabilities | 24,188 | 27,522 | ||||||
| Total Liabilities | 2,179,810 | 1,156,121 | ||||||
| Redeemable non-controlling interests | 18,122 | 16,477 | ||||||
| Total Equity | 283,110 | 1,160,962 | ||||||
| Total Liabilities and Equity | $ | 2,481,042 | $ | 2,333,560 | ||||
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V. Condensed Consolidated Statements of Cash Flows
For the Three Months Ended September 30, 2024 and 2023
(In thousands, unaudited)
| 2024 | 2023 | |||||||
| Operating activities | ||||||||
| Net income | $ | 45,759 | $ | 54,424 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 15,213 | 17,959 | ||||||
| Provision for expected credit losses | 11 | 91 | ||||||
| (Gain) loss on sale or disposal of assets | (1 | ) | 17 | |||||
| Stock compensation expense | 168 | — | ||||||
| Amortization of debt discount and issuance costs | 750 | — | ||||||
| Deferred income taxes | 459 | (3,314 | ) | |||||
| Changes in operating assets and liabilities, net of effects of business combinations: | ||||||||
| Accounts receivable | (3,250 | ) | (8,641 | ) | ||||
| Other current assets | 11,276 | 1,408 | ||||||
| Other assets | 7,366 | 640 | ||||||
| Accounts payable and accrued liabilities | (11,843 | ) | (3,987 | ) | ||||
| Net cash provided by operating activities | 65,908 | 58,597 | ||||||
| Investing activities | ||||||||
| Business combinations, net of cash acquired | (1,821 | ) | — | |||||
| Purchases of property and equipment | (15,145 | ) | (15,456 | ) | ||||
| Proceeds from sale of assets | 2 | 3 | ||||||
| Net cash used in investing activities | (16,964 | ) | (15,453 | ) | ||||
| Financing activities | ||||||||
| Payments on related party revolving promissory note | (420,000 | ) | (50,000 | ) | ||||
| Proceeds from term loans, net of issuance costs | 836,697 | — | ||||||
| Proceeds from 6.875% senior notes, net of issuance costs | 637,337 | — | ||||||
| Borrowings of other debt | 1,604 | — | ||||||
| Principal payments on other debt | (3,510 | ) | (1,708 | ) | ||||
| Exercise of stock options | — | 3,340 | ||||||
| Repurchase of common shares | — | (5,322 | ) | |||||
| Distributions to and purchases of non-controlling interests | (1,583 | ) | (1,392 | ) | ||||
| Proceeds from Initial Public Offering | 511,198 | — | ||||||
| Dividend to Select | (1,535,683 | ) | — | |||||
| Contributions from Parent | 11,149 | 2,380 | ||||||
| Net cash provided by (used in) financing activities | 37,209 | (52,702 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 86,153 | (9,558 | ) | |||||
| Cash and cash equivalents at beginning of period | 50,669 | 33,238 | ||||||
| Cash and cash equivalents at end of period | $ | 136,822 | $ | 23,680 | ||||
| Supplemental information | ||||||||
| Cash paid for interest | $ | 14,709 | $ | 11,204 | ||||
| Cash paid for taxes | 15,328 | 17,599 | ||||||
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VI. Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2024 and 2023
(In thousands, unaudited)
| 2024 | 2023 | |||||||
| Operating activities | ||||||||
| Net income | $ | 149,097 | $ | 155,887 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 51,568 | 54,552 | ||||||
| Provision for expected credit losses | 70 | 276 | ||||||
| Equity in losses of unconsolidated subsidiaries | 3,676 | 526 | ||||||
| Loss on sale or disposal of assets | 41 | 3 | ||||||
| Stock compensation expense | 500 | 178 | ||||||
| Amortization of debt discount and issuance costs | 750 | — | ||||||
| Deferred income taxes | (1,159 | ) | (6,579 | ) | ||||
| Changes in operating assets and liabilities, net of effects of business combinations: | ||||||||
| Accounts receivable | (16,079 | ) | (35,652 | ) | ||||
| Other current assets | 12,500 | (8,536 | ) | |||||
| Other assets | 3,149 | 2,436 | ||||||
| Accounts payable and accrued liabilities | (23,150 | ) | (4,953 | ) | ||||
| Net cash provided by operating activities | 180,963 | 158,138 | ||||||
| Investing activities | ||||||||
| Business combinations, net of cash acquired | (6,965 | ) | (1,446 | ) | ||||
| Purchase of customer relationships | — | (4,382 | ) | |||||
| Purchases of property and equipment | (47,639 | ) | (41,320 | ) | ||||
| Proceeds from sale of assets | 25 | 23 | ||||||
| Net cash used in investing activities | (54,579 | ) | (47,125 | ) | ||||
| Financing activities | ||||||||
| Borrowings from related party revolving promissory note | 10,000 | — | ||||||
| Payments on related party revolving promissory note | (480,000 | ) | (120,000 | ) | ||||
| Proceeds from term loans, net of issuance costs | 836,697 | — | ||||||
| Proceeds from 6.875% senior notes, net of issuance costs | 637,337 | — | ||||||
| Borrowings of other debt | 8,222 | 5,471 | ||||||
| Principal payments on other debt | (7,888 | ) | (5,782 | ) | ||||
| Exercise of stock options | — | 3,340 | ||||||
| Repurchase of common shares | — | (5,322 | ) | |||||
| Distributions to and purchases of non-controlling interests | (4,226 | ) | (4,522 | ) | ||||
| Proceeds from Initial Public Offering | 511,198 | — | ||||||
| Dividend to Select | (1,535,683 | ) | — | |||||
| Contributions from Parent | 3,407 | 1,825 | ||||||
| Net cash used in financing activities | (20,936 | ) | (124,990 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 105,448 | (13,977 | ) | |||||
| Cash and cash equivalents at beginning of period | 31,374 | 37,657 | ||||||
| Cash and cash equivalents at end of period | $ | 136,822 | $ | 23,680 | ||||
| Supplemental information | ||||||||
| Cash paid for interest | $ | 34,221 | $ | 33,988 | ||||
| Cash paid for taxes | 49,337 | 50,044 | ||||||
11
VII. Key Statistics
For the Third Quarter Ended September 30, 2024 and 2023
(unaudited)
| 2024 | 2023 | % Change | ||||||||||
| Facility Count | ||||||||||||
| Number of occupational health centers—start of period | 547 | 540 | ||||||||||
| Number of occupational health centers acquired | 1 | — | ||||||||||
| Number of occupational health centers de novos | 1 | — | ||||||||||
| Number of occupational health centers closed/sold | — | (1 | ) | |||||||||
| Number of occupational health centers—end of period | 549 | 539 | ||||||||||
| Number of onsite health clinics operated—end of period | 156 | 145 | ||||||||||
| Number of patient visits (1)(2) | ||||||||||||
| Workers’ Compensation | 1,476,486 | 1,451,115 | 1.7 | % | ||||||||
| Employer Services | 1,728,720 | 1,775,181 | (2.6 | )% | ||||||||
| Consumer Health | 53,399 | 54,746 | (2.5 | )% | ||||||||
| Total | 3,258,605 | 3,281,042 | (0.7 | )% | ||||||||
| Visits per day volume | ||||||||||||
| Workers’ Compensation | 23,070 | 23,034 | 0.2 | % | ||||||||
| Employer Services | 27,011 | 28,177 | (4.1 | )% | ||||||||
| Consumer Health | 834 | 869 | (4.0 | )% | ||||||||
| Total | 50,916 | (5) | 52,080 | (2.2 | )% | |||||||
| Revenue per visit (1)(3) | ||||||||||||
| Workers’ Compensation | $ | 202.29 | $ | 197.05 | 2.7 | % | ||||||
| Employer Services | 89.55 | 86.45 | 3.6 | % | ||||||||
| Consumer Health | 137.30 | 130.82 | 5.0 | % | ||||||||
| Total | $ | 141.42 | $ | 136.11 | 3.9 | % | ||||||
| Business Days (4) | 64 | 63 | ||||||||||
| (1) | Excludes onsite clinics. |
| (2) | Represents the number of visits in which patients were treated at Occupational Health Centers during the periods presented. |
| (3) | Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our Occupational Health Centers segment and does not include our Onsite Health Clinics or Other Businesses segments. |
| (4) | Represents the number of days in which normal business operations were conducted during the periods presented. |
| (5) | Does not total due to rounding. |
12
VIII. Key Statistics
For the Nine Months Ended September 30, 2024 and 2023
(unaudited)
| 2024 | 2023 | % Change | ||||||||||
| Facility Count | ||||||||||||
| Number of occupational health centers—start of period | 544 | 540 | ||||||||||
| Number of occupational health centers acquired | 3 | 1 | ||||||||||
| Number of occupational health centers de novos | 3 | — | ||||||||||
| Number of occupational health centers closed/sold | (1 | ) | (2 | ) | ||||||||
| Number of occupational health centers—end of period | 549 | 539 | ||||||||||
| Number of onsite health clinics operated—end of period | 156 | 145 | ||||||||||
| Number of patient visits (1)(2) | ||||||||||||
| Workers’ Compensation | 4,364,824 | 4,276,717 | 2.1 | % | ||||||||
| Employer Services | 5,090,410 | 5,316,724 | (4.3 | )% | ||||||||
| Consumer Health | 173,281 | 173,440 | (0.1 | )% | ||||||||
| Total | 9,628,515 | 9,766,881 | (1.4 | )% | ||||||||
| Visits per day volume | ||||||||||||
| Workers’ Compensation | 22,733 | 22,391 | 1.5 | % | ||||||||
| Employer Services | 26,513 | 27,836 | (4.8 | )% | ||||||||
| Consumer Health | 903 | 908 | (0.6 | )% | ||||||||
| Total | 50,149 | 51,136 | (5) | (1.9 | )% | |||||||
| Revenue per visit (1)(3) | ||||||||||||
| Workers’ Compensation | $ | 198.62 | $ | 194.74 | 2.0 | % | ||||||
| Employer Services | 90.14 | 86.30 | 4.4 | % | ||||||||
| Consumer Health | 134.62 | 133.47 | 0.9 | % | ||||||||
| Total | $ | 140.12 | $ | 134.62 | 4.1 | % | ||||||
| Business Days (4) | 192 | 191 | ||||||||||
| (1) | Excludes onsite clinics. |
| (2) | Represents the number of visits in which patients were treated at Occupational Health Centers during the periods presented. |
| (3) | Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our Occupational Health Centers segment and does not include our Onsite Health Clinics or Other Businesses segments. |
| (4) | Represents the number of days in which normal business operations were conducted during the periods presented. |
| (5) | Does not total due to rounding. |
13
IX. Disaggregated Revenue
For the Three and Nine Months Ended September 30, 2024 and 2023
(In thousands, unaudited)
The following table disaggregates the Company’s revenue for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Occupational health centers: | ||||||||||||||||
| Workers' compensation | $ | 298,681 | $ | 285,939 | $ | 866,952 | $ | 832,833 | ||||||||
| Employer services | 154,809 | 153,473 | 458,849 | 458,810 | ||||||||||||
| Consumer health | 7,332 | 7,162 | 23,327 | 23,150 | ||||||||||||
| Other occupational health center revenue | 2,239 | 1,866 | 6,245 | 6,538 | ||||||||||||
| Total occupational health center revenue | 463,061 | 448,440 | 1,355,373 | 1,321,331 | ||||||||||||
| Onsite clinics | 15,593 | 15,005 | 46,989 | 44,255 | ||||||||||||
| Other | 10,984 | 10,519 | 32,789 | 31,755 | ||||||||||||
| Total revenue | $ | 489,638 | $ | 473,964 | $ | 1,435,151 | $ | 1,397,341 | ||||||||
14
X. Net Income to Adjusted EBITDA Reconciliation
For the Three and Nine Months Ended September 30, 2024 and 2023
(In thousands, unaudited)
The presentation of Adjusted EBITDA is important to investors because Adjusted EBITDA is commonly used as an analytical indicator of performance by investors within the healthcare industry. Adjusted EBITDA is used by management to evaluate financial performance and determine resource allocation for each of our segments. Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America (“GAAP”). Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to, or substitute for, net income, income from operations, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying definitions, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.
The following table reconciles net income to Adjusted EBITDA for Concentra. Adjusted EBITDA is defined as earnings excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, separation transaction costs, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 45,759 | $ | 54,424 | $ | 149,097 | $ | 155,887 | ||||||||
| Income tax expense | 16,415 | 15,205 | 49,648 | 47,964 | ||||||||||||
| Interest expense | 21,369 | 64 | 21,275 | 108 | ||||||||||||
| Interest expense on related party debt | 2,691 | 11,255 | 21,980 | 33,831 | ||||||||||||
| Equity in losses of unconsolidated subsidiaries | — | — | 3,676 | 526 | ||||||||||||
| Stock compensation expense | 168 | — | 500 | 178 | ||||||||||||
| Depreciation and amortization | 15,213 | 17,959 | 51,568 | 54,552 | ||||||||||||
| Separation transaction costs (1) | (44 | ) | — | 1,569 | — | |||||||||||
| Adjusted EBITDA | $ | 101,571 | $ | 98,907 | $ | 299,313 | $ | 293,046 | ||||||||
| Adjusted EBITDA margin | 20.7 | % | 20.9 | % | 20.9 | % | 21.0 | % | ||||||||
| (1) | Separation transaction costs represent incremental consulting, legal, and audit-related fees incurred in connection with the Company’s planned separation into a new, publicly traded company and are included within general and administrative expenses on the Condensed Consolidated Statements of Operations. |
15
XI. Reconciliation of Earnings per Common Share to Adjusted Earnings per Common Share
For the Three and Nine Months Ended September 30, 2024 and 2023
(In thousands, except per share amounts, unaudited)
Adjusted net income attributable to common shares and adjusted earnings per common share are not measures of financial performance under GAAP. Items excluded from adjusted net income attributable to common shares and adjusted earnings per common share are significant components in understanding and assessing financial performance. Concentra believes that the presentation of adjusted net income attributable to common shares and adjusted earnings per common share are important to investors because they are reflective of the financial performance of Concentra’s ongoing operations and provide better comparability of its results of operations between periods. Adjusted net income attributable to common shares and adjusted earnings per common share should not be considered in isolation or as alternatives to, or substitutes for, net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because adjusted net income attributable to common shares and adjusted earnings per common share are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations, adjusted net income attributable to common shares and adjusted earnings per common share as presented may not be comparable to other similarly titled measures of other companies.
The following tables reconcile net income attributable to common shares and earnings per common share on a fully diluted basis to adjusted net income attributable to common shares and adjusted earnings per common share on a fully diluted basis.
| Three Months Ended September 30, | ||||||||||||||||
| 2024 | Per Share(1) | 2023 | Per Share(1) | |||||||||||||
| Net income attributable to common shares(1) | $ | 44,338 | $ | 0.37 | $ | 53,040 | $ | 0.51 | ||||||||
| Adjustments:(2) | ||||||||||||||||
| Separation transaction costs, net of tax | (30 | ) | (0.00 | ) | — | — | ||||||||||
| Adjusted net income attributable to common shares | $ | 44,308 | $ | 0.37 | $ | 53,040 | $ | 0.51 | ||||||||
| Nine Months Ended September 30, | ||||||||||||||||
| 2024 | Per Share(1) | 2023 | Per Share(1) | |||||||||||||
| Net income attributable to common shares(1) | $ | 145,031 | $ | 1.32 | $ | 151,756 | $ | 1.46 | ||||||||
| Adjustments:(2) | ||||||||||||||||
| Separation transaction costs, net of tax | 1,181 | 0.01 | — | — | ||||||||||||
| Adjusted net income attributable to common shares | $ | 146,212 | $ | 1.33 | $ | 151,756 | $ | 1.46 | ||||||||
| (1) | Net income attributable to common shares and earnings per common share are calculated based on the weighted average common shares outstanding, as presented in table III. |
| (2) | Adjustments to net income attributable to common shares include estimated income tax and non-controlling interest impacts and are calculated based on the diluted weighted average common shares outstanding. The estimated income tax impact, which is determined using tax rates based on the nature of the adjustment and the jurisdiction in which the adjustment occurred, includes both current and deferred income tax expense or benefit. |
16
XII. Net Income to Adjusted EBITDA Reconciliation
Business Outlook for the Year Ending December 31, 2024
(In millions, unaudited)
The following is a reconciliation of full year 2024 Adjusted EBITDA expectations as computed at the low and high points of the range to the closest comparable GAAP financial measure. Refer to tables X for discussion of Concentra's use of Adjusted EBITDA in evaluating financial performance and for the definition of Adjusted EBITDA. Each item presented in the below table is an estimation of full year 2024 expectations.
| Range | ||||||||
| Non-GAAP Measure Reconciliation | Low | High | ||||||
| Net income | 169 | 173 | ||||||
| Income tax expense | 57 | 58 | ||||||
| Interest expense on related party debt | 22 | 22 | ||||||
| Interest expense | 48 | 48 | ||||||
| Equity in losses of unconsolidated subsidiaries | 4 | 4 | ||||||
| Stock compensation expense | 1 | 1 | ||||||
| Depreciation and amortization | 67 | 67 | ||||||
| Separation transaction costs (1) | 2 | 2 | ||||||
| Adjusted EBITDA | $ | 370 | $ | 375 | ||||
17