Concentra Announces Fourth Quarter and Full Year 2024 Results and Closing of Nova Medical Centers Acquisition

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Concentra's Q4 and full-year 2024 results demonstrate solid operational execution with revenue growth of 5.5% for the quarter and 3.4% for the full year. The company's Q4 Adjusted EBITDA increase of 13.6% outpaced revenue growth, signaling improved operational efficiency and margin expansion. The $265 million acquisition of Nova Medical Centers represents a significant strategic expansion, adding 67 medical centers to Concentra's network and strengthening its position as the largest U.S. occupational health provider.

The financing structure for the Nova acquisition is notable - leveraging a combination of new debt ($102.1 million), existing credit facility ($50 million), and cash reserves. While this increases Concentra's pro forma net leverage ratio to 3.9x, management has articulated a clear deleveraging path targeting 3.0x within 18-24 months. Simultaneously, the company secured favorable debt refinancing terms, reducing interest rates on both its Term Loan B and Revolving Credit Facility by 25-50 basis points.

The 2025 guidance of $2.1 billion in revenue and $410-425 million in Adjusted EBITDA suggests management expects continued growth momentum, with the Nova acquisition serving as a key driver. The introduction of a quarterly dividend ($0.0625 per share) signals confidence in sustainable cash flow generation despite the increased leverage from the acquisition. This balanced approach to shareholder returns, strategic growth investment, and planned deleveraging suggests disciplined capital allocation priorities.

The Nova Medical Centers acquisition represents a transformative move for Concentra, expanding its network to over 770 combined occupational health centers and onsite clinics. This transaction appears strategically sound as it enhances Concentra's market density and geographic footprint, particularly strengthening its presence in Nova's Houston base and surrounding regions. The acquisition rationale focuses on three core value drivers: enhanced access to care, accelerated innovation, and improved outcomes for key stakeholders.

Concentra's growth strategy balances organic center expansion (8 net new occupational health centers and 7 new onsite clinics in 2024) with strategic acquisitions. The 5.8% year-over-year increase in revenue per visit indicates successful pricing optimization and potentially a shift toward higher-value services. However, the 2.1% decrease in visits per day warrants attention as it suggests some volume pressure that the company is currently offsetting through pricing/mix improvements.

The company's emphasis on "significant progress on key strategic initiatives" paired with "high patient satisfaction scores" indicates a customer-centric approach to growth. With 80+ combined years of industry experience between Concentra and Nova, the integration presents meaningful opportunities for operational best-practice sharing. The company's 2025 guidance suggesting 10.5% revenue growth and potentially higher Adjusted EBITDA growth demonstrates confidence that the Nova integration will be accretive relatively quickly while maintaining focus on deleveraging - a balanced approach to creating long-term shareholder value while managing near-term financial risks.

03/03/2025 - 04:30 PM

ADDISON, Texas--(BUSINESS WIRE)-- Concentra Group Holdings Parent, Inc. (“Concentra,” the “Company,” “we,” “us,” or “our”) (NYSE: CON), the nation’s largest provider of occupational health services, today announced results for its fourth quarter and full year ended December 31, 2024. Additionally, the Company announced the closing of the transaction to acquire U.S. Occmed Holdings, LLC (“Nova Medical Centers” or “Nova”), an occupational health services company with 67 medical centers based in Houston, Texas.

“Concentra had a successful 2024 — a year marked by change with our IPO and separation from Select Medical. We made significant progress on key strategic initiatives and maintained our emphasis on the delivery of high-quality patient care. Our ability to execute on our objectives and the tireless efforts of our colleagues contributed to our favorable 2024 financial outcomes. I am confident in our ability to continue to deliver strong results in 2025,” said Keith Newton, Chief Executive Officer of Concentra.

Matt DiCanio, Concentra’s President & Chief Financial Officer added, “The impact of our expanded footprint in new and existing geographies during 2024 meant it was easier than ever for our clients to do business with us — and patients benefited as demonstrated in high patient satisfaction scores. With a sustained focus on our development pipeline including the integration of recently acquired Nova Medical Centers, we are well positioned for continued growth in 2025.”

Fourth Quarter 2024 Highlights

For the fourth quarter ended December 31, 2024 and 2023:

Revenue of $465.0 million, an increase of 5.5% from $440.7 million in Q4 2023
Net Income of $22.8 million, and earnings per share of $0.17 in Q4 2024
Adjusted EBITDA of $77.5 million, an increase of 13.6% from $68.3 million in Q4 2023
Cash balance at year end of $183.3 million and net leverage of 3.46x
Patient Visits of 2,994,988, or 46,797 Visits per Day, a decrease in Visits per Day of 2.1% from Q4 2023
Revenue per Visit of $145.08, an increase of 5.8% from $137.15 in Q4 2023
Total occupational health centers of 552, compared to 544 at the end of Q4 2023
Total onsite health clinics of 157, compared to 150 at the end of Q4 2023

Fourth Quarter 2024 Financial Overview

For the fourth quarter ended December 31, 2024, revenue increased 5.5% to $465.0 million, compared to $440.7 million for the same quarter, prior year. Income from operations increased 19.8% to $59.1 million for the fourth quarter ended December 31, 2024, compared to $49.3 million for the same quarter, prior year. Net income was $22.8 million and earnings per common share was $0.17 for the fourth quarter ended December 31, 2024. Adjusted EBITDA increased 13.6% to $77.5 million for the fourth quarter ended December 31, 2024, compared to $68.3 million for the same quarter, prior year. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table X of this release.

Year to Date December 31, 2024 Financial Overview

For the year ended December 31, 2024, revenue increased 3.4% to $1,900.2 million, compared to $1,838.1 million for the same period, prior year. Income from operations increased 6.0% to $304.8 million for the year ended December 31, 2024, compared to $287.6 million for the same period, prior year. Net income was $171.9 million and earnings per common share was $1.46 for the year ended December 31, 2024. Adjusted EBITDA increased 4.3% to $376.9 million for the year ended December 31, 2024, compared to $361.3 million for the same period, prior year. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table X of this release.

Balance Sheet

As of December 31, 2024, our balance sheet reflected cash of $183.3 million, total debt of $1,479.0 million and total assets of $2,521.2 million.

Cash Flow

Cash flows provided by operating activities in the fourth quarter ended December 31, 2024 totaled $93.7 million compared to $76.2 million for the same quarter, prior year. During the fourth quarter ended December 31, 2024, capital expenditures totaled $16.7 million, excluding acquisitions.

Nova Acquisition Closing

Effective March 1, 2025, the Company acquired Nova Medical Centers for a purchase price of $265 million, subject to adjustment in accordance with the terms and conditions set forth in the equity purchase agreement.

Concentra is just beginning the process of integrating Nova Medical Centers into its portfolio of medical centers, with the acquisition helping to 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. With the addition of Nova Medical Centers, we have over 80 years of combined history supporting and providing occupational health services and have expanded to more than 770 occupational health centers and onsite health clinics at employer worksites located across the country.

The transaction was financed using a combination $102.1 million of new debt financing under the Credit Agreement, $50.0 million of available borrowing capacity under our existing Revolving Credit Facility, and the remaining with cash on hand.

Debt Financing

As part of the funding of the Nova transaction, Concentra has concurrently re-priced its Credit Facilities. Inclusive of the $102.1 million add-on, the Term Loan B due 2031 now has a balance of $950.0 million. The Term Loan interest rate has been reduced from Term SOFR plus 2.25% down to Term SOFR plus 2.00%, subject to a leverage-based pricing grid including a 25-basis point step down at a net leverage ratio of ≤3.25x. And in conjunction with the $50.0 million draw on the revolver to partially fund the Nova transaction, the Revolving Credit Facility has been increased from $400.0 million to $450.0 million. The interest rate for the Revolving Credit Facility has been reduced from Term SOFR plus 2.50% to Term SOFR plus 2.00%, subject to a leverage-based pricing grid.

Giving effect to the Nova acquisition and debt-refinancing, Concentra’s pro forma net leverage ratio post-transaction is 3.9x, which is in compliance with the financial covenant under the credit agreement. The Company is targeting a net leverage ratio of approximately 3.0x within 18-24 months.

2025 Business Outlook

Concentra’s strong business performance in 2024 positions the Company well for continued growth as reflected in its 2025 financial guidance. For 2025, giving effect to the acquisition of Nova Medical Centers, Concentra expects to deliver the following results:

Revenue of approximately $2.1 billion
Adjusted EBITDA in the range of $410 million to $425 million
Capital expenditures in the range of $80 million to $90 million
Net leverage ratio of approximately 3.5x

A reconciliation of full year 2025 Adjusted EBITDA expectations to net income is presented in table XI of this release.

Dividend

On February 28, 2025, the Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable April 1, 2025, to stockholders of record as of the close of business on March 18, 2025.

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.

Company Overview

Concentra is the largest provider of occupational health services in the United States by number of locations, with the mission of improving the health of America’s workforce, one patient at a time. Our approximately 11,000 colleagues and affiliated physicians and clinicians support the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care. We support the care of approximately 50,000 patients each day on average across 45 states at our 552 occupational health centers, 157 onsite health clinics at employer worksites, and Concentra Telemed as of December 31, 2024.

Conference Call

Concentra will host a conference call regarding its fourth quarter results and its business outlook on Tuesday, March 4, 2025, at 9:00 am ET. The conference call will be a live webcast and can be accessed at Concentra Group Holdings Parent, Inc.’s website at www.concentra.com and a replay of the webcast will be available shortly after the call through the same link.

For listeners wishing to dial-in via telephone, or participate in the question and answer session, you may pre-register for the call at Concentra Earnings Call Registration to obtain your dial-in number and unique passcode.

* * * * *

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;
Cost containment initiatives or 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; and
Changes in tax laws or exposures to additional tax liabilities.

Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results or performance.

I. Consolidated Statements of Operations
For the Fourth Quarters Ended December 31, 2024 and 2023
(In thousands, except per share amounts, unaudited)

	Quarter Ended December 31,
		2024			2023		% Change
Revenue	$	465,041		$	440,740		5.5	%
Costs and expenses:
Cost of services, exclusive of depreciation and amortization		344,851			330,923		4.2
General and administrative, exclusive of depreciation and amortization⁽¹⁾		45,493			42,101		8.1
Depreciation and amortization		15,610			18,499		(15.6	)
Total costs and expenses		405,954			391,523		3.7
Other operating income		—			99		N/M
Income from operations		59,087			49,316		19.8
Other income and expense:
Interest expense on related party debt		—			(10,422	)	N/M
Interest expense		(26,439	)		(113	)	N/M
Other expense		—			(2	)	N/M
Income before income taxes		32,648			38,779		(15.8	)
Income tax expense		9,848			9,923		(0.8	)
Net income		22,800			28,856		(21.0	)
Less: net income attributable to non-controlling interests		1,288			1,021		26.2
Net income attributable to the Company	$	21,512		$	27,835		(22.7	)%
Basic and diluted earnings per common share⁽²⁾	$	0.17		$	0.27

_______________________________________________________________________________

(1)		Includes the transaction services agreement fee of $3.7 million for the fourth quarter ended December 31, 2024 and the shared service fee from related party of $3.6 million for the fourth quarter ended December 31, 2023.
(2)		Refer to table III for calculation of earnings per common share.
N/M		Not meaningful

II. Consolidated Statements of Operations
For the Years Ended December 31, 2024 and 2023
(In thousands, except per share amounts, unaudited)

	Year Ended December 31,
		2024			2023		% Change
Revenue	$	1,900,192		$	1,838,081		3.4	%
Costs and expenses:
Cost of services, exclusive of depreciation and amortization		1,372,217			1,325,649		3.5
General and administrative, exclusive of depreciation and amortization⁽¹⁾		156,318			151,999		2.8
Depreciation and amortization		67,178			73,051		(8.0	)
Total costs and expenses		1,595,713			1,550,699		2.9
Other operating income		284			250		13.6
Income from operations		304,763			287,632		6.0
Other income and expense:
Equity in losses of unconsolidated subsidiaries		(3,676	)		(526	)	598.9
Interest expense on related party debt		(21,980	)		(44,253	)	N/M
Interest expense		(47,714	)		(221	)	N/M
Other expense		—			(2	)	N/M
Income before income taxes		231,393			242,630		(4.6	)
Income tax expense		59,496			57,887		2.8
Net income		171,897			184,743		(7.0	)
Less: net income attributable to non-controlling interests		5,354			4,796		11.6
Net income attributable to the Company	$	166,543		$	179,947		(7.4	)%
Basic and diluted earnings per common share⁽²⁾	$	1.46		$	1.73

_______________________________________________________________________________

III. Earnings per Share

For the Fourth Quarters and Years Ended December 31, 2024 and 2023

(In thousands, except per share amounts, unaudited)

At December 31, 2024, the Company’s capital structure consists of common stock and unvested restricted stock. To calculate earnings per share (“EPS”) for the quarter and year ended December 31, 2024, the Company applied the two-class method because its unvested restricted shares were participating securities.

At December 31, 2023, the Company’s capital structure included Class A, B, and C units outstanding. To calculate EPS for the quarter and year ended December 31, 2023, the Company applied the two-class method because its unvested restricted interests and outstanding options were participating securities.

The following table sets forth the net income attributable to the Company, its shares/units outstanding, and its participating shares/units outstanding:

	Quarter Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
	(in thousands)
Net income	$	22,800	$	28,856	$	171,897	$	184,743
Less: net income attributable to non-controlling interests		1,288		1,021		5,354		4,796
Net income attributable to the Company		21,512		27,835		166,543		179,947
Less: distributed and undistributed income attributable to participating securities		98		—		211		316
Distributed and undistributed income attributable to common shares	$	21,414	$	27,835	$	166,332	$	179,631

The following tables set forth the computation of EPS under the two-class method for the quarters and years ended December 31, 2024 and 2023:

	Quarter Ended December 31, 2024					Year Ended December 31, 2024
	Net Income Allocation		Shares⁽¹⁾	Basic and Diluted EPS		Net Income Allocation		Shares⁽¹⁾	Basic and Diluted EPS
	(in thousands, except for per share amounts)
Common shares	$	21,414	127,064	$	0.17	$	166,332	114,058	$	1.46
Participating securities		98	579	$	0.17		211	145	$	1.46
Total Company	$	21,512				$	166,543

	Quarter Ended December 31, 2023					Year Ended December 31, 2023
	Net Income Allocation		Shares⁽¹⁾⁽²⁾	Basic and Diluted EPS		Net Income Allocation		Shares⁽¹⁾⁽²⁾	Basic and Diluted EPS
	(in thousands, except for per share amounts)
Outstanding Class A, Class B, and Class C shares	$	27,835	104,094	$	0.27	$	179,631	104,008	$	1.73
Participating securities		—	—	$	—		316	183	$	1.73
Total Company	$	27,835				$	179,947

_______________________________________________________________________________

(1)		Represents the weighted average shares/units outstanding during the period.
(2)		The recapitalization of the members units into common shares has been treated as such for earnings per share purposes and has been reflected retrospectively for all periods, along with the one-for-4.295 reverse stock split.

IV. Consolidated Balance Sheets
(In thousands, unaudited)

	December 31, 2024		December 31, 2023
ASSETS
Current assets:
Cash	$	183,255	$	31,374
Accounts receivable		217,719		216,194
Prepaid income taxes		1,544		7,979
Other current assets		34,689		38,871
Total current assets		437,207		294,418
Operating lease right-of-use assets		435,595		397,852
Property and equipment, net		197,930		178,370
Goodwill		1,234,707		1,229,745
Other identifiable intangible assets, net		204,725		224,769
Other assets		11,000		8,406
Total assets	$	2,521,164	$	2,333,560
LIABILITIES AND EQUITY
Current liabilities:
Current operating lease liabilities	$	75,442	$	72,946
Current portion of long-term debt and notes payable		10,093		1,455
Accounts payable		19,752		20,413
Accrued and other liabilities		201,899		179,820
Total current liabilities		307,186		274,634
Non-current operating lease liabilities		396,914		357,310
Long-term debt, net of current portion		1,468,917		3,291
Long-term debt with related party		—		470,000
Non-current deferred tax liability		25,380		23,364
Other non-current liabilities		24,043		27,522
Total liabilities		2,222,440		1,156,121
Redeemable non-controlling interests		18,013		16,477
Stockholders’/members’ equity:
Members’ contributed capital		—		470,303
Common stock, $0.01 par value, 700,000,000 shares authorized, 128,125,952 shares issued and outstanding at December 31, 2024		1,281		—
Capital in excess of par		260,837		—
Retained earnings		13,553		685,293
Total stockholders’ equity (members’ equity at December 31, 2023)		275,671		1,155,596
Non-controlling interests		5,040		5,366
Total equity		280,711		1,160,962
Total liabilities and equity	$	2,521,164	$	2,333,560

V. Consolidated Statements of Cash Flows
For the Fourth Quarters Ended December 31, 2024 and 2023
(In thousands, unaudited)

	Quarter Ended December 31,
		2024			2023
Operating activities
Net income	$	22,800		$	28,856
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		15,610			18,499
(Gain) loss on sale of assets		(1	)		1
Stock compensation expense		1,827			473
Amortization of debt discount and issuance costs		958			—
Deferred income taxes		(1,237	)		293
Other		2			51
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable		14,481			25,390
Other current assets		(8,294	)		(12,207	)
Other assets		(176	)		302
Accounts payable and accrued liabilities		47,744			14,520
Net cash provided by operating activities		93,714			76,178
Investing activities
Business combinations, net of cash acquired		—			(4,558	)
Purchases of property and equipment		(16,688	)		(23,638	)
Proceeds from sale of assets		2			13
Net cash used in investing activities		(16,686	)		(28,183	)
Financing activities
Payments on related party revolving promissory note		—			(40,000	)
Payments on term loans		(2,125	)		—
Principal payments on other debt		(2,293	)		(1,383	)
Dividends paid to common stockholders		(7,959	)		—
Repurchase of common stock		(15,403	)		—
Distributions to and purchases of non-controlling interests		(1,687	)		(1,608	)
(Distributions to) contributions from Select		(1,128	)		2,690
Net cash used in financing activities		(30,595	)		(40,301	)
Net increase in cash		46,433			7,694
Cash at beginning of period		136,822			23,680
Cash at end of period	$	183,255		$	31,374
Supplemental information
Cash paid for interest	$	15,429		$	10,360
Cash paid for taxes	$	6,426		$	10,563
Non-cash investing and financing activities:
Liabilities for purchases of property and equipment	$	1,583		$	—

VI. Consolidated Statements of Cash Flows
For the Years Ended December 31, 2024 and 2023
(In thousands, unaudited)

	Year Ended December 31,
		2024			2023
Operating activities
Net income	$	171,897		$	184,743
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		67,178			73,051
Equity in losses of unconsolidated subsidiaries		3,676			526
Loss on sale of assets		40			4
Stock compensation expense		2,327			651
Amortization of debt discount and issuance costs		1,708			—
Deferred income taxes		(2,396	)		(6,286	)
Other		72			327
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable		(1,598	)		(10,262	)
Other current assets		4,206			(20,743	)
Other assets		2,973			2,738
Accounts payable and accrued liabilities		24,594			9,567
Net cash provided by operating activities		274,677			234,316
Investing activities
Business combinations, net of cash acquired		(6,965	)		(6,004	)
Acquired customer relationships		—			(4,382	)
Purchases of property and equipment		(64,327	)		(64,958	)
Proceeds from sale of assets		27			36
Net cash used in investing activities		(71,265	)		(75,308	)

	Year Ended December 31,
		2024			2023
Financing activities
Borrowings from related party revolving promissory note		10,000			—
Payments on related party revolving promissory note		(480,000	)		(160,000	)
Proceeds from term loans, net of issuance costs		836,697			—
Payments on term loans		(2,125	)		—
Proceeds from 6.875% senior notes, net of issuance costs		637,337			—
Borrowings of other debt		8,222			5,471
Principal payments on other debt		(10,181	)		(7,165	)
Exercise of stock options		—			3,340
Repurchase of common shares		—			(5,322	)
Dividends paid to common stockholders		(7,959	)		—
Repurchase of common stock		(15,403	)		—
Distributions to and purchases of non-controlling interests		(5,913	)		(6,130	)
Proceeds from Initial Public Offering		511,198			—
Dividend to Select		(1,535,683	)		—
Contributions from (distributions to) Select		2,279			4,515
Net cash used in financing activities		(51,531	)		(165,291	)
Net increase (decrease) in cash		151,881			(6,283	)
Cash at beginning of period		31,374			37,657
Cash at end of period	$	183,255		$	31,374
Supplemental information
Cash paid for interest	$	49,650		$	44,348
Cash paid for taxes	$	55,763		$	60,607
Non-cash investing and financing activities:
Liabilities for purchases of property and equipment	$	5,241		$	5,136

VII. Key Statistics
For the Fourth Quarters Ended December 31, 2024 and 2023
(unaudited)

	Quarter Ended December 31,
		2024		2023
Facility Count
Number of occupational health centers—start of period		549		539
Number of occupational health centers acquired		—		3
Number of occupational health centers de novos		3		3
Number of occupational health centers closed/sold		—		(1	)
Number of occupational health centers—end of period		552		544
Number of onsite health clinics operated—end of period		157		150

The following table sets forth operating statistics for our occupation health centers operating segment for the periods presented:
	Quarter Ended December 31,
		2024		2023		% Change
Number of patient visits
Workers’ compensation		1,429,344		1,391,325		2.7	%
Employer services		1,506,163		1,557,969		(3.3	)%
Consumer health		59,481		61,457		(3.2	)%
Total		2,994,988		3,010,751		(0.5	)%

Visits per day volume
Workers’ compensation		22,334		22,085		1.1	%
Employer services		23,534		24,730		(4.8	)%
Consumer health		929		976		(4.8	)%
Total⁽¹⁾		46,797		47,790		(2.1	)%

Revenue per visit⁽²⁾
Workers’ compensation	$	202.28	$	193.69		4.4	%
Employer services		91.09		86.92		4.8	%
Consumer health		137.72		130.90		5.2	%
Total	$	145.08	$	137.15		5.8	%

Business Days⁽³⁾		64		63

_______________________________________________________________________________

(1)		Does not total due to rounding.
(2)		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.
(3)		Represents the number of days in which normal business operations were conducted during the periods presented.

VIII. Key Statistics
For the Years Ended December 31, 2024 and 2023
(unaudited)

	Year Ended December 31,
		2024			2023
Facility Counts
Number of occupational health centers—start of period		544			540
Number of occupational health centers acquired		3			4
Number of occupational health centers de novos		6			3
Number of occupational health centers closed/sold		(1	)		(3	)
Number of occupational health centers—end of period		552			544
Number of onsite health clinics operated—end of period		157			150

The following table sets forth operating statistics for our occupation health centers operating segment for the periods presented:
	Year Ended December 31,
		2024			2023		% Change
Number of patient visits
Workers’ compensation		5,794,168			5,668,042		2.2	%
Employer services		6,596,573			6,874,693		(4.0	)%
Consumer health		232,762			234,897		(0.9	)%
Total		12,623,503			12,777,632		(1.2	)%

Visits per day volume
Workers’ compensation		22,633			22,315		1.4	%
Employer services		25,768			27,066		(4.8	)%
Consumer health		909			925		(1.7	)%
Total⁽¹⁾		49,311			50,306		(2.0	)%

Revenue per visit⁽²⁾
Workers’ compensation	$	199.53		$	194.48		2.6	%
Employer services		90.36			86.44		4.5	%
Consumer health		135.41			132.80		2.0	%
Total	$	141.30		$	135.22		4.5	%

Business Days⁽³⁾		256			254

_______________________________________________________________________________

(1)		Does not total due to rounding.
(2)		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.
(3)		Represents the number of days in which normal business operations were conducted during the periods presented.

IX. Disaggregated Revenue

For the Fourth Quarters and Years Ended December 31, 2024 and 2023

(In thousands, unaudited)

The following table disaggregates the Company’s revenue for the quarters and years ended December 31, 2024 and 2023:

	Quarter Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
	(in thousands)
Occupational health centers:
Workers' compensation	$	289,130	$	269,480	$	1,156,082	$	1,102,313
Employer services		137,203		135,413		596,052		594,223
Consumer health		8,192		8,044		31,519		31,194
Other occupational health center revenue		2,507		1,746		8,752		8,284
Total occupational health center revenue		437,032		414,683		1,792,405		1,736,014
Onsite health clinics		17,092		15,926		64,081		60,181
Other		10,917		10,131		43,706		41,886
Total revenue	$	465,041	$	440,740	$	1,900,192	$	1,838,081

X. Net Income to Adjusted EBITDA Reconciliation

For the Fourth Quarters and Years Ended December 31, 2024 and 2023

(In thousands, unaudited)

We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA margin, as defined herein, are important to investors because Adjusted EBITDA and Adjusted EBITDA margin are commonly used as an analytical indicator of performance by investors within the healthcare industry. Adjusted EBITDA and Adjusted EBITDA margin are used by management to evaluate financial performance of, and determine resource allocation for, each of our operating segments. However, Adjusted EBITDA and Adjusted EBITDA margin are not measures of financial performance under U.S. GAAP. Items excluded from Adjusted EBITDA and Adjusted EBITDA margin are significant components in understanding and assessing financial performance. Adjusted EBITDA and Adjusted EBITDA margin should not be considered in isolation, or as an alternative to, or substitute for, net income, net income margin, income from operations, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA and Adjusted EBITDA margin are not measurements determined in accordance with U.S. GAAP and are thus susceptible to varying definitions, Adjusted EBITDA and Adjusted EBITDA margin as presented may not be comparable to other similarly titled measures of other companies.

We define Adjusted EBITDA as earnings excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, separation transaction costs, acquisition costs, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.

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.

	Quarter Ended December 31,
	2024					2023
($ in thousands)	Amount			% of Revenue		Amount			% of Revenue
Reconciliation of Adjusted EBITDA:
Net income	$	22,800		4.9	%	$	28,856		6.5	%
Add (Subtract):
Income tax expense		9,848		2.1			9,923		2.3
Interest expense		26,439		5.7			113		—
Interest expense on related party debt		—		—			10,422		2.4
Other expense		—		—			2		—
Stock compensation expense		1,827		0.4			473		0.1
Depreciation and amortization		15,610		3.4			18,499		4.2
Separation transaction costs⁽¹⁾		124		—			—		—
Nova acquisition costs		895		0.2			—		—
Adjusted EBITDA	$	77,543		16.7	%	$	68,288		15.5	%
Net income margin		4.9	%				6.5	%
Adjusted EBITDA margin		16.7	%				15.5	%

	Year Ended December 31,
	2024					2023
($ in thousands)	Amount			% of Revenue		Amount			% of Revenue
Reconciliation of Adjusted EBITDA:
Net income	$	171,897		9.0	%	$	184,743		10.1	%
Add (Subtract):
Income tax expense		59,496		3.1			57,887		3.1
Interest expense		47,714		2.5			221		—
Interest expense on related party debt		21,980		1.2			44,253		2.4
Equity in losses of unconsolidated subsidiaries		3,676		0.2			526		—
Other expense		—		—			2		—
Stock compensation expense		2,327		0.1			651		0.1
Depreciation and amortization		67,178		3.6			73,051		4.0
Separation transaction costs⁽¹⁾		1,693		0.1			—		—
Nova acquisition costs		895		—			—		—
Adjusted EBITDA	$	376,856		19.8	%	$	361,334		19.7	%
Net income margin		9.0	%				10.1	%
Adjusted EBITDA margin		19.8	%				19.7	%

______________________________________________________________________________

(1)

Separation transaction costs represent incremental consulting, legal, audit-related fees, and non-recurring 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 consolidated statements of operations.

XI. 2025 Net Income to Adjusted EBITDA Reconciliation

Business Outlook for the Year Ending December 31, 2025

(In millions)

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, giving effect to the acquisition of Nova Medical Centers. Refer to table I 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
	Low		High
($ in millions)
Net income attributable to the Company	$	157	$	168
Net income attributable to non-controlling interests		6		6
Net income	$	163	$	174
Income tax expense		54		58
Interest expense		111		111
Stock compensation expense		10		10
Depreciation and amortization		68		68
Nova acquisition costs		4		4
Adjusted EBITDA	$	410	$	425

View source version on businesswire.com: https://www.businesswire.com/news/home/20250303493739/en/

Investor inquiries:

Bill Chapman

Vice President, Strategy & Investor Relations 972-725-6488

ir@concentra.com

Source: Concentra Group Holdings Parent, Inc.

FAQ

What are Concentra's (CON) Q4 2024 financial results?

Q4 2024 revenue grew 5.5% to $465.0M, with net income of $22.8M and EPS of $0.17. Adjusted EBITDA increased 13.6% to $77.5M.

How much did Concentra (CON) pay for Nova Medical Centers?

Concentra acquired Nova Medical Centers for $265 million, effective March 1, 2025.

What is Concentra's (CON) dividend payment for Q1 2025?

Concentra declared a quarterly cash dividend of $0.0625 per share, payable April 1, 2025, to stockholders of record as of March 18, 2025.

What is Concentra's (CON) revenue guidance for 2025?

Concentra expects approximately $2.1 billion in revenue and Adjusted EBITDA between $410-425 million for 2025.

How did Concentra (CON) finance the Nova Medical Centers acquisition?

The acquisition was financed with $102.1M new debt financing, $50M from existing credit facility, and remaining with cash on hand.

Concentra Announces Fourth Quarter and Full Year 2024 Results and Closing of Nova Medical Centers Acquisition

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Concentra Announces Fourth Quarter and Full Year 2024 Results and Closing of Nova Medical Centers Acquisition

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