Concentra Group Holdings Parent, Inc. Announces Results For Its First Quarter Ended March 31, 2025, Cash Dividend, and Revised FY 2025 Guidance
“Concentra reported a solid start to 2025 with strong revenue and Adjusted EBITDA growth in the first quarter. With a deep understanding of patient and client needs and market dynamics, we continue to execute on key drivers of growth and deliver a comparative market advantage. Maintaining this focus ensures we continue to achieve our strategic business objectives for the year,” said Keith Newton, Chief Executive Officer of Concentra.
Matt DiCanio, Concentra’s President & Chief Financial Officer, added, “We are very pleased with the organic and inorganic growth developments at the outset of 2025, including the first positive year-over-year growth in Employer Services visit volumes in several quarters. We successfully closed the Nova Medical Centers acquisition and launched three de novo centers in the first quarter, and in April signed a definitive agreement to acquire Pivot Onsite Innovations. We remain focused and confident in our ability to achieve an effective and efficient integration of these centers and businesses through our organizational design and operational efficiency, providing great momentum as we progress in 2025.”
First Quarter 2025 Highlights
-
Revenue of
$500.8 million 7.1% from$467.6 million -
Net income of
$40.6 million $0.30 -
Adjusted earnings per common share of
$0.32 -
Adjusted EBITDA of
$102.7 million 6.8% from$96.1 million -
Cash balance of
$52.1 million -
Patient Visits of 3,204,368, or 50,863 Visits per Day in the quarter, an increase in Visits per Day of
3.2% from Q1 2024 -
Revenue per Visit of
$146.94 5.6% from$139.09 - Total occupational health centers of 627, compared to 547 at the end of Q1 2024
- Total onsite health clinics of 160, compared to 151 at the end of Q1 2024
First Quarter 2025 Financial Overview
For the first quarter ended March 31, 2025, revenue increased
Balance Sheet
As of March 31, 2025, our balance sheet reflected cash of
Cash Flow
Cash flows provided by operating activities in the first quarter ended March 31, 2025 totaled
Nova Acquisition Closing
Effective March 1, 2025, the Company acquired Nova Medical Centers (“Nova”) for a purchase price of
Nova operates 67 occupational health centers in five states, providing workers’ compensation injury care services, physical therapy, drug and alcohol screening, and pre-employment physicals as part of their full suite of occupational health services. The process of integrating Nova into Concentra’s network of occupational health centers is off to a strong start, which will help us strengthen the delivery of quality care and exceptional service through greater access, while also resulting in accelerated innovation and enhanced outcomes for patients, customers and employers.
The transaction was financed using a combination
Debt Financing
On March 3, 2025, the Company completed an amendment to the Credit Agreement to increase our Revolving Credit Facility by
Pivot Onsite Innovations
On April 18, 2025, Concentra Health Services, Inc. (“CHS”), a wholly owned subsidiary of the Company, entered into an equity purchase agreement with Pivot Occupational Health, LLC to acquire all of the outstanding equity interests of Onsite Innovations, LLC (“Pivot Onsite Innovations”). The transaction values Pivot Onsite Innovations at
CHS currently expects to finance the announced transaction using a combination of cash on hand and available borrowing capacity under its existing revolving credit facility.
Pivot Onsite Innovations operates approximately 200 onsite health clinics at employer locations in over 40 states, providing occupational health, wellness, prevention, and performance services. When combined with Concentra’s current onsite health clinic footprint, the acquisition will enable the Company to expand to more than 350 onsite health clinics at employer worksites.
Dividend
On May 6, 2025, the Board of Directors declared a cash dividend of
There is no assurance that future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of the Board of Directors after taking into account various factors, including, but not limited to, the Company’s financial condition, operating results, available cash and current and anticipated cash needs, the terms of indebtedness, and other factors the Board of Directors may deem to be relevant.
2025 Business Outlook
Concentra raised its financial guidance for 2025, based on strong Q1 results and additional development activity. For 2025, Concentra now expects to deliver the following results:
-
Revenue in the range of
$2.1 billion $2.15 billion -
Adjusted EBITDA in the range of
$415 million $430 million -
Capital expenditures in the range of
$80 million $90 million - Net leverage ratio of approximately 3.5x (no change from initial guidance)
A reconciliation of full year 2025 Adjusted EBITDA expectations to net income is presented in table IX of this release.
Company Overview
Concentra is the largest provider of occupational health services in
Conference Call
Concentra will host a conference call regarding its first quarter financial results and business outlook on Thursday May 8, 2025, at 9 a.m. Eastern Time. The conference call will be a live webcast and can be accessed via this Earnings Call Webcast Link or via Concentra’s website at https://ir.concentra.com. A replay of the webcast will be available shortly after the call at the same locations.
Participants may join the audio-only version of the webcast or participate in the question-and-answer session by calling:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access: All dial-in participants should ask to join the Concentra call.
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 2025 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;
- Significant legal actions could subject us to substantial uninsured liabilities;
- Litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our business and financial statements;
- Insurance coverage may not be sufficient to cover losses we may incur;
- 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;
- The impact of impairment of our goodwill and other intangible assets;
- Our ability to maintain satisfactory credit ratings;
- The effects of the Separation on our business;
- Our ability to achieve the expected benefits of and successfully execute the Separation and related transactions;
- Restrictions on our business, potential tax and indemnification liabilities and substantial charges in connection with the Separation 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;
- The loss of key members of our management team;
- Our ability to attract and retain talented, highly skilled employees and a diverse workforce, and on the succession of our senior management;
- Climate change, or legal, regulatory or market measures to address climate change;
- Increasing scrutiny and rapidly evolving expectations from stakeholders regarding ESG matters;
- Changes in tax laws or exposures to additional tax liabilities; and
-
Changes to
United States tariff and import/export regulations and the impact on global economic conditions may have a negative effect on our business, financial condition and results of operations.
Except as required by applicable law, including the securities laws of
I. Condensed Consolidated Statements of Operations For the Three Months Ended March 31, 2025 and 2024 (In thousands, except per share amounts, unaudited) |
|||||||||||
|
|
Three Months Ended March 31, |
|
|
|||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
Revenue |
|
$ |
500,752 |
|
|
$ |
467,598 |
|
|
7.1 |
% |
Costs and expenses: |
|
|
|
|
|
|
|||||
Cost of services, exclusive of depreciation and amortization |
|
|
357,101 |
|
|
|
336,990 |
|
|
6.0 |
|
General and administrative, exclusive of depreciation and amortization(1) |
|
|
46,713 |
|
|
|
36,909 |
|
|
26.6 |
|
Depreciation and amortization |
|
|
16,619 |
|
|
|
18,485 |
|
|
(10.1 |
) |
Total costs and expenses |
|
|
420,433 |
|
|
|
392,384 |
|
|
7.1 |
|
Other operating income |
|
|
— |
|
|
|
284 |
|
|
(100.0 |
) |
Income from operations |
|
|
80,319 |
|
|
|
75,498 |
|
|
6.4 |
|
Other income and expense: |
|
|
|
|
|
|
|||||
Loss on early retirement of debt |
|
|
(875 |
) |
|
|
— |
|
|
N/M |
|
Interest expense |
|
|
(25,548 |
) |
|
|
(111 |
) |
|
N/M |
|
Interest expense on related party debt |
|
|
— |
|
|
|
(9,971 |
) |
|
N/M |
|
Income before income taxes |
|
|
53,896 |
|
|
|
65,416 |
|
|
(17.6 |
) |
Income tax expense |
|
|
13,254 |
|
|
|
15,137 |
|
|
(12.4 |
) |
Net income |
|
|
40,642 |
|
|
|
50,279 |
|
|
(19.2 |
) |
Less: net income attributable to non-controlling interests |
|
|
1,731 |
|
|
|
1,323 |
|
|
30.8 |
|
Net income attributable to the Company |
|
$ |
38,911 |
|
|
$ |
48,956 |
|
|
(20.5 |
)% |
Basic and diluted earnings per common share(2) |
|
$ |
0.30 |
|
|
$ |
0.47 |
|
|
|
|
| _____________________________________ | |
(1) |
Includes transaction services agreement fees of |
(2) |
Refer to table II for calculation of earnings per common share. |
N/M |
Not meaningful |
II. Earnings per Share
For the Three Months Ended March 31, 2025 and 2024
(In thousands, except per share amounts, unaudited)
As of March 31, 2025, the Company’s capital structure consists of common stock and unvested restricted stock. To calculate earnings per share (“EPS”) for the three months ended March 31, 2025, the Company applied the two-class method because its unvested restricted shares were participating securities.
As of March 31, 2024, the Company’s capital structure consists of common stock and there were no participating shares or securities outstanding.
The following table sets forth the net income attributable to the Company, its shares, and its participating shares:
|
|
Basic and Diluted EPS |
||||
|
|
Three Months Ended March 31, |
||||
|
|
2025 |
|
2024 |
||
|
|
(in thousands) |
||||
Net income |
|
$ |
40,642 |
|
$ |
50,279 |
Less: net income attributable to non-controlling interests |
|
|
1,731 |
|
|
1,323 |
Net income attributable to the Company |
|
|
38,911 |
|
|
48,956 |
Less: distributed and undistributed income attributable to participating securities |
|
|
455 |
|
|
— |
Distributed and undistributed income attributable to common shares |
|
$ |
38,456 |
|
$ |
48,956 |
The following table sets forth the computation of EPS. The Company applied the two-class method for the three months ended March 31, 2025.
|
|
Three Months Ended March 31, 2025 |
|
Three Months Ended March 31, 2024 |
||||||||||||
|
|
Net Income Attributable to the Company |
|
Shares(1) |
|
Basic and Diluted EPS |
|
Net Income Attributable to the Company |
|
Shares(1) |
|
Basic and Diluted EPS |
||||
|
|
(in thousands, except for per share amounts) |
||||||||||||||
Common shares |
|
$ |
38,456 |
|
126,647 |
|
$ |
0.30 |
|
$ |
48,956 |
|
104,094 |
|
$ |
0.47 |
Participating securities |
|
|
455 |
|
1,500 |
|
$ |
0.30 |
|
|
— |
|
— |
|
$ |
— |
Total Company |
|
$ |
38,911 |
|
|
|
|
|
$ |
48,956 |
|
|
|
|
||
| _____________________________________ | |
(1) |
Represents the weighted average shares outstanding during the period. |
III. Condensed Consolidated Balance Sheets (In thousands, unaudited) |
|||||||
|
|
March 31, 2025 |
|
December 31, 2024 |
|||
ASSETS |
|
|
|
|
|||
Current assets: |
|
|
|
|
|||
Cash |
|
$ |
52,109 |
|
|
$ |
183,255 |
Accounts receivable |
|
|
258,128 |
|
|
|
217,719 |
Prepaid income taxes |
|
|
1,392 |
|
|
|
1,544 |
Other current assets |
|
|
39,960 |
|
|
|
34,689 |
Total current assets |
|
|
351,589 |
|
|
|
437,207 |
Operating lease right-of-use assets |
|
|
463,032 |
|
|
|
435,595 |
Property and equipment, net |
|
|
207,271 |
|
|
|
197,930 |
Goodwill |
|
|
1,444,563 |
|
|
|
1,234,707 |
Other Identifiable intangible assets, net |
|
|
249,788 |
|
|
|
204,725 |
Other assets |
|
|
12,995 |
|
|
|
11,000 |
Total assets |
|
$ |
2,729,238 |
|
|
$ |
2,521,164 |
LIABILITIES AND EQUITY |
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|||
Current operating lease liabilities |
|
$ |
96,301 |
|
|
$ |
75,442 |
Current portion of long-term debt and notes payable |
|
|
15,758 |
|
|
|
10,093 |
Accounts payable |
|
|
35,188 |
|
|
|
19,752 |
Dividends payable |
|
|
8,010 |
|
|
|
— |
Accrued and other liabilities |
|
|
165,134 |
|
|
|
201,899 |
Total current liabilities |
|
|
320,391 |
|
|
|
307,186 |
Non-current operating lease liabilities |
|
|
405,914 |
|
|
|
396,914 |
Long-term debt, net of current portion |
|
|
1,618,473 |
|
|
|
1,468,917 |
Non-current deferred tax liability |
|
|
24,362 |
|
|
|
25,380 |
Other non-current liabilities |
|
|
29,037 |
|
|
|
24,043 |
Total liabilities |
|
|
2,398,177 |
|
|
|
2,222,440 |
Redeemable non-controlling interests |
|
|
18,609 |
|
|
|
18,013 |
Stockholders’ equity: |
|
|
|
|
|||
Common stock, |
|
|
1,282 |
|
|
|
1,281 |
Capital in excess of par |
|
|
263,105 |
|
|
|
260,837 |
Retained earnings |
|
|
44,454 |
|
|
|
13,553 |
Accumulated other comprehensive loss |
|
|
(1,722 |
) |
|
|
— |
Total stockholders’ equity |
|
|
307,119 |
|
|
|
275,671 |
Non-controlling interests |
|
|
5,333 |
|
|
|
5,040 |
Total equity |
|
|
312,452 |
|
|
|
280,711 |
Total liabilities and equity |
|
$ |
2,729,238 |
|
|
$ |
2,521,164 |
IV. Condensed Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2025 and 2024 (In thousands, unaudited) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2025 |
|
|
|
2024 |
|
Operating activities |
|
|
|
|
||||
Net income |
|
$ |
40,642 |
|
|
$ |
50,279 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
16,619 |
|
|
|
18,485 |
|
Loss on extinguishment of debt |
|
|
51 |
|
|
|
— |
|
(Gain) loss on sale of assets |
|
|
(1 |
) |
|
|
43 |
|
Stock compensation expense |
|
|
2,269 |
|
|
|
166 |
|
Amortization of debt discount and issuance costs |
|
|
976 |
|
|
|
— |
|
Deferred income taxes |
|
|
(1,028 |
) |
|
|
(2,521 |
) |
Other |
|
|
11 |
|
|
|
12 |
|
Changes in operating assets and liabilities, net of effects of business combinations: |
|
|
|
|
||||
Accounts receivable |
|
|
(21,145 |
) |
|
|
(13,505 |
) |
Other current assets |
|
|
(2,753 |
) |
|
|
(7,315 |
) |
Other assets |
|
|
902 |
|
|
|
722 |
|
Accounts payable and accrued liabilities |
|
|
(24,844 |
) |
|
|
(1,744 |
) |
Net cash provided by operating activities |
|
|
11,699 |
|
|
|
44,622 |
|
Investing activities |
|
|
|
|
||||
Business combinations, net of cash acquired |
|
|
(279,018 |
) |
|
|
(5,144 |
) |
Purchases of property and equipment |
|
|
(15,732 |
) |
|
|
(17,231 |
) |
Proceeds from sale of assets |
|
|
1 |
|
|
|
23 |
|
Net cash used in investing activities |
|
|
(294,749 |
) |
|
|
(22,352 |
) |
Financing activities |
|
|
|
|
||||
Borrowings on revolving facilities |
|
|
50,000 |
|
|
|
— |
|
Borrowings from related party revolving promissory note |
|
|
— |
|
|
|
10,000 |
|
Payments on related party revolving promissory note |
|
|
— |
|
|
|
(10,000 |
) |
Proceeds from term loans, net of issuance costs |
|
|
948,848 |
|
|
|
— |
|
Payments on term loans |
|
|
(847,875 |
) |
|
|
— |
|
Borrowings of other debt |
|
|
6,468 |
|
|
|
6,618 |
|
Principal payments on other debt |
|
|
(4,695 |
) |
|
|
(2,276 |
) |
Distributions to and purchases of non-controlling interests |
|
|
(842 |
) |
|
|
(1,543 |
) |
Distributions to Select |
|
|
— |
|
|
|
(6,891 |
) |
Net cash provided by (used in) financing activities |
|
|
151,904 |
|
|
|
(4,092 |
) |
Net (decrease) increase in cash |
|
|
(131,146 |
) |
|
|
18,178 |
|
Cash at beginning of period |
|
|
183,255 |
|
|
|
31,374 |
|
Cash at end of period |
|
$ |
52,109 |
|
|
$ |
49,552 |
|
Supplemental information |
|
|
|
|
||||
Cash paid for interest |
|
$ |
38,137 |
|
|
$ |
9,958 |
|
Cash (refund received) paid for taxes |
|
$ |
(48 |
) |
|
$ |
34 |
|
V. Key Statistics For the Three Months Ended March 31, 2025 and 2024 (unaudited) |
||||||
|
|
Three Months Ended March 31, |
|
|
||
|
|
2025 |
|
2024 |
|
|
Facility Count |
|
|
|
|
|
|
Number of occupational health centers—start of period |
|
552 |
|
544 |
|
|
Number of occupational health centers acquired |
|
72 |
|
2 |
|
|
Number of occupational health centers de novos |
|
3 |
|
1 |
|
|
Number of occupational health centers closed/sold |
|
— |
|
— |
|
|
Number of occupational health centers—end of period |
|
627 |
|
547 |
|
|
Number of onsite health clinics operated—end of period |
|
160 |
|
151 |
|
|
The following table sets forth operating statistics for our occupational health centers operating segment for the periods presented:
|
|
Three Months Ended March 31, |
|
|
|||||
|
|
2025 |
|
2024 |
|
% Change |
|||
Number of patient visits |
|
|
|
|
|
|
|||
Workers’ compensation |
|
|
1,444,880 |
|
|
1,433,084 |
|
0.8 |
% |
Employer services |
|
|
1,696,412 |
|
|
1,659,291 |
|
2.2 |
% |
Consumer health |
|
|
63,076 |
|
|
63,280 |
|
(0.3 |
)% |
Total |
|
|
3,204,368 |
|
|
3,155,655 |
|
1.5 |
% |
|
|
|
|
|
|
|
|||
Visits per day volume |
|
|
|
|
|
|
|||
Workers’ compensation |
|
|
22,935 |
|
|
22,392 |
|
2.4 |
% |
Employer services |
|
|
26,927 |
|
|
25,926 |
|
3.9 |
% |
Consumer health |
|
|
1,001 |
|
|
989 |
|
1.2 |
% |
Total |
|
|
50,863 |
|
|
49,307 |
|
3.2 |
% |
|
|
|
|
|
|
|
|||
Revenue per visit(1) |
|
|
|
|
|
|
|||
Workers’ compensation |
|
$ |
209.09 |
|
$ |
195.29 |
|
7.1 |
% |
Employer services |
|
|
94.40 |
|
|
90.84 |
|
3.9 |
% |
Consumer health |
|
|
136.52 |
|
|
131.57 |
|
3.8 |
% |
Total |
|
$ |
146.94 |
|
$ |
139.09 |
|
5.6 |
% |
|
|
|
|
|
|
|
|||
Business days(2) |
|
|
63 |
|
|
64 |
|
|
|
| _____________________________________ | |
(1) |
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. |
(2) |
Represents the number of days in which normal business operations were conducted during the periods presented. |
VI. Disaggregated Revenue
For the Three Months Ended March 31, 2025 and 2024
(In thousands, unaudited)
The following table disaggregates the Company’s revenue for the three months ended March 31, 2025 and 2024:
|
Three Months Ended March 31, |
||||
|
2025 |
|
2024 |
||
|
(in thousands) |
||||
Occupational health centers: |
|
|
|
||
Workers' compensation |
$ |
302,107 |
|
$ |
279,866 |
Employer services |
|
160,140 |
|
|
150,735 |
Consumer health |
|
8,611 |
|
|
8,326 |
Other occupational health center revenue |
|
2,064 |
|
|
2,145 |
Total occupational health center revenue |
|
472,922 |
|
|
441,072 |
Onsite health clinics |
|
16,550 |
|
|
15,857 |
Other |
|
11,280 |
|
|
10,669 |
Total revenue |
$ |
500,752 |
|
$ |
467,598 |
VII. Net Income to Adjusted EBITDA Reconciliation
For the Three Months Ended March 31, 2025 and 2024
(In thousands, unaudited)
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures that we believe provide useful insight into the underlying performance of our business by excluding items that may obscure trends in our core operating results. These metrics are not intended to be substitutes for GAAP measures such as net income and may differ from similarly titled metrics supported by other companies. We use these non-GAAP measures internally for budgeting, forecasting, and evaluating performance. Investors should consider these measures in addition to, and not as a replacement for, GAAP results reported in our financial statements.
Adjusted EBITDA is a supplemental measure that we believe offers a clearer view of business performance by excluding items that do not reflect the core operations of the Company. We define adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, stock-based compensation expense, acquisition related costs, gains or losses on early retirement of debt, separation transaction costs, gains or losses on the sale of businesses, and equity in earnings or losses from unconsolidated subsidiaries. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. This margin helps assess the efficiency of our operations on a normalized basis.
The following table reconciles net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin and should be referenced when we discuss Adjusted EBITDA and Adjusted EBITDA margin.
|
|
Three Months Ended March 31, |
||||||||||
|
|
2025 |
|
2024 |
||||||||
($ in thousands) |
|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
||||
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
40,642 |
|
8.1 |
% |
|
$ |
50,279 |
|
10.8 |
% |
Add (Subtract): |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
13,254 |
|
2.6 |
|
|
|
15,137 |
|
3.2 |
|
Interest expense |
|
|
25,548 |
|
5.1 |
|
|
|
111 |
|
— |
|
Interest expense on related party debt |
|
|
— |
|
— |
|
|
|
9,971 |
|
2.1 |
|
Loss on early retirement of debt |
|
|
875 |
|
0.2 |
|
|
|
— |
|
— |
|
Stock compensation expense |
|
|
2,269 |
|
0.5 |
|
|
|
166 |
|
— |
|
Depreciation and amortization |
|
|
16,619 |
|
3.3 |
|
|
|
18,485 |
|
4.0 |
|
Separation transaction costs(1) |
|
|
315 |
|
0.1 |
|
|
|
1,993 |
|
0.5 |
|
Nova acquisition costs |
|
|
3,137 |
|
0.6 |
|
|
|
— |
|
— |
|
Adjusted EBITDA |
|
$ |
102,659 |
|
20.5 |
% |
|
$ |
96,142 |
|
20.6 |
% |
| _____________________________________ | |
(1) |
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, and system implementation costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations. |
VIII. Reconciliation of Earnings per Common Share to Adjusted Earnings per Common Share
For the Three Months Ended March 31, 2025 and 2024
(In thousands, except per share amounts, unaudited)
Adjusted Net Income Attributable to Common Shares and Adjusted Earnings per Common Share are used by management to provide useful insight into the underlying performance of our business in each of our operating segments. Adjusted Net Income Attributable to Common Shares and Adjusted Earnings per Common Share are not measures of financial performance under
We define Adjusted Net Income Attributable to Common Shares as net income attributable to common shares, excluding gain (loss) on early retirement of debt, separation transaction costs, acquisition costs, gain (loss) on sale of businesses, and other non-recurring costs not directly tied to operating performance. We define Adjusted Earnings per Common Share as the Adjusted Net Income Attributable to Common Shares divided by the diluted weighted average common shares outstanding.
The following table reconciles 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 March 31, |
|||||||||||||
($ in thousands, except per share amounts) |
|
2025 |
|
|
Per Share(1) |
|
|
2024 |
|
|
Per Share(1) |
|||
Reconciliation of Adjusted Net Income Attributable to Common Shares: |
|
|
|
|
|
|
|
|||||||
Net income attributable to common shares(1) |
$ |
38,456 |
|
|
$ |
0.30 |
|
|
$ |
48,956 |
|
|
$ |
0.47 |
Adjustments:(2) |
|
|
|
|
|
|
|
|||||||
Loss on early retirement of debt |
|
865 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
Separation transaction costs(3) |
|
311 |
|
|
|
— |
|
|
|
1,993 |
|
|
|
0.02 |
Nova acquisition costs |
|
3,100 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
Total additions, net |
$ |
4,276 |
|
|
$ |
0.03 |
|
|
$ |
1,993 |
|
|
$ |
0.02 |
Less: tax effect of adjustments(4) |
|
(1,052 |
) |
|
|
(0.01 |
) |
|
|
(460 |
) |
|
|
— |
Adjusted Net Income Attributable to Common Shares |
$ |
41,680 |
|
|
$ |
0.32 |
|
|
$ |
50,489 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares outstanding - diluted |
|
|
|
126,647 |
|
|
|
|
|
104,094 |
||||
| _____________________________________ | |
(1) |
Net income attributable to common shares and earnings per common share are calculated based on the diluted weighted average common shares outstanding in table II. |
(2) |
Reflects the common shares allocation of the adjustments. |
(3) |
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, and system implementation costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations. |
(4) |
Tax impact is calculated using the annual effective tax rate, excluding discrete costs and benefits. |
IX. 2025 Net Income to Adjusted EBITDA Reconciliation
Business Outlook for the Year Ending December 31, 2025
(In millions, unaudited)
The following is a reconciliation of full year 2025 Adjusted EBITDA expectations as computed at the low and high points of the range to the closest comparable GAAP financial measure. Refer to tables VII 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 2025 expectations.
|
Range |
||||
($ in millions) |
Low |
|
High |
||
Net income attributable to the Company |
$ |
162 |
|
$ |
173 |
Net income attributable to non-controlling interests |
|
6 |
|
|
6 |
Net income |
$ |
168 |
|
$ |
179 |
Income tax expense |
|
56 |
|
|
60 |
Interest expense |
|
108 |
|
|
108 |
Stock compensation expense |
|
10 |
|
|
10 |
Depreciation and amortization |
|
69 |
|
|
69 |
Nova acquisition costs |
|
4 |
|
|
4 |
Adjusted EBITDA |
$ |
415 |
|
$ |
430 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250507862937/en/
Investor inquiries:
Bill Chapman
Vice President, Strategy & Investor Relations
972-725-6488
ir@concentra.com
Source: Concentra Group Holdings Parent, Inc.
