Concentra Group Holdings Parent, Inc.(CON) - 2024 Q3 - Quarterly Report

Company Operations - As of September 30, 2024, the company operated 549 standalone occupational health centers and 156 onsite health clinics across 45 states and the District of Columbia[69]. - The company’s telemedicine program serves 43 states and the District of Columbia, expanding its reach in occupational health services[69]. - The company’s operating segments include Occupational Health Centers, Onsite Health Clinics, and Other Businesses, with similar economic characteristics[73]. Financial Performance - Revenue from Occupational Health Centers accounted for 95% of total revenue for both the three and nine months ended September 30, 2024[74]. - Revenue increased 3.3% to $489.6 million for the three months ended September 30, 2024, compared to$473.9 million for the same period in 2023[91]. - Revenue increased 2.7% to $1,435.2 million for the nine months ended September 30, 2024, compared to$1,397.3 million for the same period in 2023[100]. - Revenue per visit increased 3.9% to $141.42 for the three months ended September 30, 2024, compared to$136.11 for the same period in 2023[93]. - Revenue per visit increased 4.1% to $140.12 for the nine months ended September 30, 2024, compared to$134.62 for the same period in 2023[102]. Patient Visits - The company reported a daily patient visit volume (VPD) of 45% for workers' compensation services for the three months ended September 30, 2024[76]. - Total patient visits decreased to 3,258,605 for the three months ended September 30, 2024, from 3,281,042 in the same period of 2023[92]. - Total patient visits for the nine months ended September 30, 2024, were 9,628,515, down from 9,766,881 in the same period of 2023[101]. - Workers' compensation VPD volume increased 1.5% to 22,733 for the nine months ended September 30, 2024, compared to 22,391 for the same period in 2023[101]. Costs and Expenses - Cost of services was $351.1 million, or 71.7$336.8 million, or 71.1% of revenue, for the same period in 2023[94]. - Cost of services was $1,027.4 million, or 71.6$994.7 million, or 71.2% of revenue, for the same period in 2023[103]. - General and administrative expenses were $37.1 million, or 7.6$38.2 million, or 8.1% of revenue, for the same period in 2023[95]. - General and administrative expenses were $110.8 million, or 7.7$109.9 million, or 7.9% of revenue, for the same period in 2023[104]. Net Income and Cash Flow - Net income attributable to the Company was $44.3 million for the three months ended September 30, 2024, compared to$53.1 million for the same period in 2023[88]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $299.3 million, compared to$293.0 million for the same period in 2023[115]. - Net cash provided by operating activities was $180.9 million for the nine months ended September 30, 2024, compared to$158.1 million for the same period in 2023[117]. - Cash at the end of the period increased to $136.8 million as of September 30, 2024, from$23.7 million at the end of the same period in 2023[117]. Debt and Financing - The company completed an IPO on July 26, 2024, raising net proceeds of $499.7 million from the sale of 22,500,000 shares at$23.50 per share[78]. - The Concentra credit facilities include a term loan of $850 million and a revolving credit facility of$400 million, with the latter being undrawn at the IPO closing[78]. - The company had outstanding borrowings under its term loan of $850.0 million as of September 30, 2024[126]. - Interest expense increased to$21.4 million for the three months ended September 30, 2024, compared to $0.1 million for the same period in 2023, due to the issuance of an$850.0 million term loan and $650.0 million senior notes[98]. - Interest expense on related party debt decreased to$22.0 million for the nine months ended September 30, 2024, from $33.8 million for the same period in 2023[108]. Risks and Strategic Initiatives - The company faces risks including labor shortages, regulatory changes, and potential disruptions from public health threats[67]. - The company has experienced higher labor costs due to inflation and competitive labor market conditions, which may adversely affect its financial condition if costs continue to rise[135]. - The company has implemented strategies to mitigate inflationary pressures, including selective price increases and supply chain optimization initiatives[135]. - The company intends to pursue continued organic growth and strategic acquisitions to expand its footprint and customer base[128]. - Future dividends are at the discretion of the company's Board of Directors, considering financial condition, operating results, and cash needs[133]. Tax and Interest Rate - The effective tax rate increased to 25.0$850.0 million term loan, excluding unamortized original issue discounts and debt issuance costs of $13.0 million[136]. - A 0.25$2.1 million per year[137]. Dividends - The company declared a cash dividend of $0.0625 per share on October 28, 2024, payable on November 22, 2024, to stockholders of record as of November 13, 2024[132]. - During Q3 2024, net proceeds from the IPO and debt financing transactions, except for$34.7 million, were paid to Select through dividends and repayment of promissory notes[130].