Core Viewpoint - The article discusses the transformation of occupational health services in Hangzhou, emphasizing a shift from a reactive approach to a proactive one, where health services are delivered directly to workplaces to ensure employee well-being and prevent occupational diseases [3][5]. Group 1: Health Service Transformation - Hangzhou's occupational health services are evolving through the "Assist Enterprises @ Health" initiative, which aims to provide comprehensive health management for workers across various industries [3][4]. - The initiative includes hands-on experiences, such as doctors providing acupuncture and health education directly in workplaces, enhancing the understanding and importance of occupational health among employees [4][5]. Group 2: Service Delivery Model - The new model focuses on a "help you protect" approach, where health services are tailored to meet the specific needs of enterprises, moving away from a one-size-fits-all strategy [5][7]. - A dedicated "Assist Enterprise Health Management Guidance Team" has been established to offer a one-stop solution for occupational health issues, making it easier for companies to access necessary health services [7][8]. Group 3: Digital Integration and Accessibility - The introduction of digital tools, such as the AI digital assistant "Zhi Fang Yun Peng," facilitates the dissemination of health knowledge and makes occupational health services more accessible [6][8]. - A training service platform has attracted nearly 4,000 companies, allowing workers to learn about occupational health online, thus enhancing the overall effectiveness of health management [8]. Group 4: Inclusive Service Approach - The service model is designed to cater not only to large enterprises but also to small and micro businesses through initiatives like the "Regional Health Enterprise Alliance" and the creation of "Health Parks" [8]. - This comprehensive approach aims to integrate various health services, including noise control guidance and occupational disease risk assessments, into a cohesive support system for all types of businesses [8].

Financial Data and Key Metrics Changes - Total company revenue was $572.8 million in Q3 2025, representing a 17% year-over-year growth compared to $489.6 million in Q3 2024 [3] - Adjusted EBITDA was $118.9 million in Q3 2025, a 17.1% increase from $101.6 million in the same quarter prior year [7] - Adjusted net income attributable to the company was $49.9 million, with adjusted earnings per share of $0.39, compared to $44.3 million and $0.37 in the prior year [8] Business Line Data and Key Metrics Changes - In the Occupational Health operating segment, total revenue was $526 million in Q3 2025, a 13.6% increase from the prior year [9] - Workers' compensation revenue was $343.5 million, up 15% year-over-year, with visits per day increasing 9.8% [9] - Employer services revenue increased by 11.9% to $173.2 million, with visits per day up 8.9% [9] Market Data and Key Metrics Changes - Total patient visits increased 9.2% in the quarter to more than 55,500 visits per day [3] - Workers' compensation visits per day increased 9.8%, while employer services visit volumes increased 8.9% relative to the prior year [4] - The company noted a strong correlation between workers' compensation volume and employment levels reported by the BLS, although recent data showed a lack of correlation [5] Company Strategy and Development Direction - The company finalized the integration and rebranding of the Nova Occupational Health Centers and opened additional centers, with plans for more by year-end [2] - The focus is on organic growth and capturing market share, particularly in the on-site health clinics segment, which reported a 123.8% revenue increase due to the acquisition of Pivot OnSite Innovations [11] - The company is shifting back to its core acquisition strategy after integrating Nova and Pivot, targeting smaller practices with one to five occupational health centers [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating no significant headwinds or obstacles anticipated for 2026 [33] - The company is focused on leveraging technology to improve customer engagement and operational efficiencies, which is seen as a competitive advantage [49][50] - Management expects a strong rate year in California and anticipates similar rate increases for employer services in line with inflation [66] Other Important Information - The company ended the quarter with a total debt balance of $1.61 billion and a cash balance of $50 million, with a net leverage ratio of 3.6x [17] - A cash dividend of $0.0625 per share was declared, payable on December 9, 2025 [21] - The company raised the low end of its 2025 revenue guidance from $2.13 billion to $2.145 billion [22] Q&A Session Summary Question: Any major headwinds or tailwinds for 2026? - Management sees no significant headwinds and remains bullish about the upcoming year [33] Question: What is driving the improvement in employer services volume? - The company has implemented various sales and marketing strategies, leveraging technology to enhance customer engagement and retention [37] Question: Can you elaborate on the decoupling of workers' comp visit volume from BLS data? - Management noted a lack of correlation over the past two years, which was previously strong, and is uncertain about the factors driving this change [46] Question: How stable is the labor force and cost environment? - The company reported stability in labor force statistics and turnover rates, with no significant changes in costs [54] Question: What are the rate expectations for 2026? - Management expects a strong rate year for workers' comp, particularly in California, and normal rate increases for employer services in line with inflation [66]

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]

Group 1 - The core message emphasizes the significant improvement in occupational health literacy among workers in Guangxi, with a target of 56.3% by 2024, marking a substantial increase over three consecutive years [1] - Guangxi has established a provincial-level comprehensive occupational health information management system, enabling data sharing for various services related to occupational disease hazards, benefiting over 30,000 workers since its launch in October 2024 [1] - The region has implemented proactive measures to enhance occupational health awareness through a series of campaigns and free health check-ups for workers exposed to high-risk factors [2] Group 2 - A "Hundred Thousand" occupational health science popularization campaign has been initiated, involving expert teams visiting 14 cities to promote health literacy among workers [2] - Since 2021, Guangxi has set up multiple rehabilitation stations for pneumoconiosis patients, expanding services to include chronic respiratory disease patients, thereby improving the quality of life for affected individuals [2] - In 2025, special funds will be allocated to provide free occupational health checks for workers in 20 key counties, focusing on those exposed to hazardous materials [2]