Company Operations - As of September 30, 2025, the company operated 628 standalone occupational health centers and 413 onsite health clinics across 47 states and the District of Columbia[130]. - The company’s onsite health clinics serve medium to large-sized employers, providing a range of occupational health services[135]. - The company’s telemedicine program serves 43 states and the District of Columbia, enhancing its service delivery capabilities[130]. - The company’s operating segments are aggregated into a single reportable segment based on similar services and economic characteristics[133]. Revenue and Growth - For the three months ended September 30, 2025, revenue from occupational health centers accounted for 92% of total revenue, while onsite health clinics contributed 6%[133]. - Revenue increased 17.0% to $572.8 million for the three months ended September 30, 2025, compared to $489.6 million for the same period in 2024, driven by an increase in patient visits and revenue per visit[156]. - Revenue increased by 13.2% to $1,624.3 million for the nine months ended September 30, 2025, compared to $1,435.2 million for the same period in 2024, driven by increased patient visits and revenue per visit[167]. Patient Visits and Revenue per Visit - Total patient visits rose 9.2% to 3,557,697 for the three months ended September 30, 2025, compared to 3,258,605 visits in the same period of 2024[157]. - Revenue per visit increased 4.2% to $147.31 for the three months ended September 30, 2025, compared to $141.42 for the same period in 2024[158]. - Total patient visits rose by 6.8% to 10,282,385 for the nine months ended September 30, 2025, compared to 9,628,515 visits for the same period in 2024[168]. - Revenue per visit increased by 4.7% to $146.72 for the nine months ended September 30, 2025, compared to $140.12 for the same period in 2024[169]. Acquisitions - The company acquired Nova Medical Centers for $265 million, financed through $102.1 million in new debt and $50 million from existing credit facilities[137]. - The acquisition of Pivot Onsite Innovations for $54.4 million expanded the company's onsite health clinics to over 400 locations[140]. - The company added over 240 onsite locations through acquisition in June 2025, contributing to revenue growth[156]. - The company completed the acquisition of Nova for $102.1 million and Pivot Onsite Innovations for $35.0 million, financed through a combination of debt and cash on hand[195]. Financial Performance - Net income attributable to the Company was $48.3 million for the three months ended September 30, 2025, compared to $44.3 million for the same period in 2024[151]. - Adjusted EBITDA for the three months ended September 30, 2025, was $118.9 million, or 20.8% of revenue, compared to $101.6 million, or 20.7% of revenue, in the same period of 2024[151]. - For the nine months ended September 30, 2025, adjusted net income attributable to the company was $139.8 million, or $1.09 per share, compared to $146.2 million, or $1.33 per share for the same period in 2024, indicating a decrease of 4.8% in adjusted net income[187]. Expenses - Cost of services was $405.5 million, or 70.8% of revenue, for the three months ended September 30, 2025, down from 71.7% in the same period of 2024[160]. - General and administrative expenses increased to $52.9 million, or 9.2% of revenue, for the three months ended September 30, 2025, compared to 7.6% in the same period of 2024[161]. - Interest expense for the three months ended September 30, 2025, was $28.7 million, up from $21.4 million in the same period of 2024, due to increased borrowings[164]. - Cost of services was $1,152.0 million, or 70.9% of revenue, for the nine months ended September 30, 2025, down from 71.6% of revenue in the same period in 2024[170]. - General and administrative expenses increased to $152.5 million, or 9.4% of revenue, for the nine months ended September 30, 2025, compared to 7.7% of revenue in the same period in 2024[171]. - Interest expense rose significantly to $82.4 million for the nine months ended September 30, 2025, compared to $21.3 million for the same period in 2024, due to new debt issuances[175]. Cash Flow and Capital Structure - Cash flows from operating activities for the nine months ended September 30, 2025, were $160.7 million, down from $181.0 million in 2024, primarily due to increased interest payments following debt recapitalization[191]. - Investing activities used $394.7 million in cash for the nine months ended September 30, 2025, compared to $54.6 million in 2024, with $333.3 million allocated for acquisitions, including Nova and Pivot Onsite Innovations[192]. - The company had $393.0 million of availability under its Revolving Credit Facility as of September 30, 2025, after accounting for $35.0 million of borrowings and $22.0 million of outstanding letters of credit[200]. - The company had a net working capital of $62.8 million at September 30, 2025, down from $130.0 million at December 31, 2024, primarily due to cash depletion from acquisitions[195]. Shareholder Returns - The company declared a cash dividend of $0.0625 per share on November 5, 2025, with a total of $24.0 million paid in dividends throughout 2025[208]. - The company authorized a share repurchase program to buy back up to $100 million of its outstanding common stock, set to expire on December 31, 2027[207]. Debt and Interest Rate Management - The company entered into derivative contracts to mitigate exposure to variable Term SOFR interest rates, limiting the rate to a fixed 3.829% on $300.0 million of principal outstanding[202]. - As of September 30, 2025, the company had outstanding borrowings of $945.3 million in term loans and $35.0 million in the Revolving Credit Facility, both subject to variable interest rates[215]. - The company entered into a derivative swap contract effective March 3, 2025, limiting the Term SOFR rate to a fixed rate of 3.829% on $300 million of principal outstanding under its term loan, applicable through February 29, 2028[216]. - A derivative collar contract was also established, capping the Term SOFR rate at 4.500% and setting a floor at 3.001% on $300 million of principal outstanding under the term loan, effective March 3, 2025[217]. - A 0.25% increase in market interest rates will increase the annual interest expense on the company's variable rate debt by $1.0 million, with an additional impact of $0.8 million due to the Term SOFR rate cap[218].
Concentra Group Holdings Parent, Inc.(CON) - 2025 Q3 - Quarterly Report