Group 1: Global Economic Outlook - The global economic growth is expected to slow down in 2026 due to persistent uncertainties, protectionist measures, and labor supply imbalances [1] - Some analysts predict that the global economy may show signs of stability and even accelerated growth driven by AI investments and supportive monetary and fiscal policies [1] - The U.S. economic outlook is pessimistic, with structural instability and accumulated risks becoming more evident [1] Group 2: Trade and Supply Chain Dynamics - The U.S. high tariff policies are expected to lead to new trade frictions, dragging down global investment and trade prospects for 2026 [3] - The World Trade Organization has significantly lowered its global goods trade growth forecast for 2026 to 0.5%, down from 2.4% in 2025 [3] - Rising protectionism and geopolitical tensions are prompting companies to reassess their global supply chains, leading to a trend of localization and regionalization [3] Group 3: Artificial Intelligence Impact - Global investment in AI is projected to exceed $2 trillion by 2026, indicating a significant shift in the economic landscape [4] - AI is expected to create new growth momentum while also posing structural adjustment challenges, with potential short-term investment bubbles and increased income inequality [4][5] - Long-term, AI is seen as a key driver for productivity improvements and the emergence of new industries and job opportunities [5] Group 4: Macroeconomic Policy Effects - Monetary policies among major developed economies are expected to diverge, with the U.S. likely to continue easing, while the European Central Bank approaches the end of its rate-cutting cycle [6] - The U.S. monetary policy adjustments could introduce new uncertainties in global capital flows and asset pricing [6] - Concerns over high public debt in developed economies are rising, with potential implications for bond markets and fiscal stability [6] Group 5: China's Economic Prospects - China's economy is expected to demonstrate resilience despite external pressures, supported by its institutional advantages and large market size [7] - The focus for China in 2026 will be on building a strong domestic market and increasing investments in technology sectors like AI [7][8] - China's role as a global economic engine is anticipated to strengthen, contributing significantly to global economic growth [8][9]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $500.8 million, a 7.1% increase from $467.6 million in Q1 2024, representing an 8.9% growth rate on a revenue per day basis [8][12] - Adjusted EBITDA was $102.7 million, up 6.8% from $96.1 million in the same quarter last year, with a slight decrease in adjusted EBITDA margin from 20.6% to 20.5% [8][19] - Net income was $40.6 million, lower than the same quarter last year primarily due to increased interest expenses and transaction costs related to acquisitions [10][19] Business Line Data and Key Metrics Changes - Total patient visits per day increased 3.2% year over year to 50,900, with a 0.6% increase to 49,600 when excluding the Nova acquisition [5][12] - Workers' compensation revenue was $302.1 million, an 8% increase year over year, with visits per day up 2.4% [13] - Employer services revenue increased 6.2% to $160.1 million, with visits per day up 3.9%, marking a turnaround from previous declines [14][19] Market Data and Key Metrics Changes - The company reported strong growth in both workers' compensation and employer services, indicating a positive trend in visit volumes across all service lines [6][10] - The acquisition of Nova Medical Centers contributed positively to the company's performance, although it only accounted for one month of results in Q1 [4][10] Company Strategy and Development Direction - The company is focused on corporate development, having recently completed several acquisitions, including Nova and Physician Health Center, and is set to close the Pivot On-site acquisition [7][25] - The strategy includes expanding the on-site health clinics business, which is expected to double revenue in that segment and enhance overall service offerings [24][25] - The company aims to maintain a leverage ratio of approximately 3.5 times by the end of 2025 and is committed to deleveraging while focusing on organic growth initiatives [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current macroeconomic environment, noting no observed impact on visit volumes despite broader economic uncertainties [28][29] - The company is well-positioned to handle potential economic slowdowns, leveraging its history of managing costs effectively during downturns [31][32] - Future growth is anticipated from potential increases in manufacturing jobs due to reshoring efforts, which could drive visit growth at the company's centers [30][32] Other Important Information - The company declared a cash dividend of $0.0625 per share, payable on May 29, 2025 [22] - The company ended Q1 2025 with a total debt balance of $1.6 billion and a cash balance of $52 million, with a net leverage ratio of 3.9 times [21] Q&A Session Summary Question: Discussion on Employer Services volumes and turnaround - Management noted that the turnaround in employer services was aided by improved sales and marketing efforts, leading to increased optimism among employers [38][40] Question: Future growth with recent acquisitions - Management highlighted that the acquisitions enhance partnerships within the managed care ecosystem, driving additional volume and growth opportunities [42][44] Question: Workers' compensation performance and outlook - Management acknowledged that while organic growth was slightly slower than expected, they anticipate continued positive growth in the future [51][52] Question: Impact of inflation on rates - Management indicated that rates typically adjust in line with inflation, with historical patterns showing timely updates to fee schedules [58][60] Question: Cost of services performance and labor efficiencies - Management confirmed that labor efficiencies and revenue increases contributed to lower costs as a percentage of revenue, with ongoing investments in technology to enhance efficiency [62][64] Question: Guidance update and acquisition impacts - Management clarified that the updated guidance includes contributions from recent acquisitions, with expectations for continued strong performance [66][68]