Full Press Release Details
Concentra Announces Preliminary 2024 Financial
Results, Agreement To Acquire Nova Medical Centers, and 2025 Financial Guidance
ADDISON, TEXAS - January 22, 2025 - Concentra Group
Holdings Parent, Inc. ("Concentra," "the Company," "we," "us," or "our")
(NYSE: CON), the nation's largest provider of occupational health services, today released preliminary unaudited financial results
for the fourth quarter and full year ended December 31, 2024. Additionally, the Company announced the signing of a definitive agreement
to acquire U.S. Occmed Holdings ("Nova Medical Centers" or "Nova"), an occupational health services company based
in Houston, Texas, and provided the Company's preliminary 2025 business outlook.
"2024 was a transformative year for Concentra as we continued
to focus on providing superior outcomes and exceptional experience to our patients and customers. Concentra's IPO in 2024 was an
energizing development followed by two quarters of strong financial results," said Keith Newton, Concentra's Chief Executive
Officer. "We are excited about the planned addition of Nova's practices and colleagues to expand access to Concentra's
occupational health services and the overall growth prospects for our business."
"The Nova transaction will bring together two recognized leaders
in providing occupational health services," said Matt DiCanio, Concentra's President and Chief Financial Officer. "Our
complementary and combined resources will elevate industry standards of care and further enhance Concentra's ongoing efforts to
develop innovative solutions that improve clinical and cost outcomes for our customers and patients. We are pleased to share our financial
outlook for 2025 with a preliminary look at our business including the addition of Nova Medical Centers."
Fourth Quarter and Full Year 2024 Preliminary Results
For the fourth quarter 2024, Concentra expects to report:
For full year 2024, Concentra expects to report:
The definition of Adjusted EBITDA and a reconciliation of net income
to Adjusted EBITDA are presented in table I of this release.
Financial results for the fourth quarter and full year ended December 31,
2024 are preliminary, based solely upon management estimates and currently available information, without audit or consolidating adjustments.
There can be no assurance that our final results for the quarter ended December 31, 2024 will be consistent with these estimates,
and any difference could be material. These estimates are neither guarantees of actual performance nor guarantees of, or indicative of,
future performance. You should exercise caution in relying on these estimates and you should not draw any inferences from these estimates
regarding financial and/or other data not provided or available.
Nova Medical Centers Acquisition Highlights
Nova Medical Centers operates 67 centers in Texas, Georgia, Tennessee, Indiana,
and Wisconsin providing workers' compensation injury care services, physical therapy, drug and alcohol screening, and pre-employment
physicals as part of their full suite of occupational health services. The acquisition of Nova Medical Centers will enable Concentra
to bring its distinctive approach to occupational health services to meet the evolving workforce health needs of more employers and their
Subject to the satisfaction of customary closing conditions, the transaction
is expected to close in the first quarter of 2025. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended, expired on December 26, 2024, and all other material regulatory filing requirements have been satisfied.
This transaction values Nova Medical Centers at $265 million, subject
to adjustment in accordance with the terms and conditions set forth in the Purchase Agreement. Concentra currently expects to finance
the announced transaction using a combination of cash on hand, available borrowing capacity under its existing revolving credit facility,
and new debt financing.
"This acquisition is an important achievement and marks a key
milestone for Concentra," said Matt DiCanio, Concentra's President and Chief Financial Officer. "We are proud of our
demonstrated commitment to execute our business strategy to deploy capital for investments that broaden access and services for our deep
and diverse customer base and align with our strategic objectives. We continue to explore growth opportunities and maintain our focus
on providing quality occupational health services."
"Nova's key values mirror Concentra's," continued
Newton. "The cultural alliance between the two companies ensures Nova's customers will continue to experience exceptional
service and care delivered with a focus on quality clinical care and positive customer experiences by welcoming, respectful, and skillful
colleagues. We are excited about the future."
Concentra has long been known as the premier provider of occupational
health services, currently offering its services through an extensive nationwide network of 552 occupational health centers and 157 onsite
health clinics at employer worksites. With the addition of Nova Medical Centers, the Concentra organization will expand to more than
770 occupational health centers and onsite health clinics at employer worksites located in 42 states. Concentra customers will benefit
as we will leverage over 80 years of combined experience, expertise, and depth of knowledge to continue to provide trusted care in support
of its mission to improve the health of America's workforce, one patient at a time.
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:
A reconciliation of full year 2025 Adjusted EBITDA expectations to
net income is presented in table II of this release.
Concentra will host a conference call to
discuss preliminary 2024 financial results, the Nova Medical Centers transaction, and 2025 guidance and business outlook on Thursday,
January 23, 2025, at 9 a.m. EST. The conference call can be accessed via the webcast link or via Concentra's website
at https://ir.concentra.com. A replay of the webcast will be available shortly after the call at the same locations.
Participants may join the audio-only version
of the webcast session by calling:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access: All dial-in participants
should ask to join the Concentra call.
A company presentation will be accessible
on Concentra's website at https://ir.concentra.com.
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.
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 2024 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
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. 2024 Net Income to Adjusted EBITDA Reconciliation
For the Three and Twelve Months Ended December 31, 2024 and 2023
(In millions, preliminary and unaudited)
The presentation of Adjusted EBITDA is important to investors because
Adjusted EBITDA is commonly used as an analytical indicator of performance by investors within the healthcare industry. Adjusted EBITDA
is used by management to evaluate financial performance and determine resource allocation for each of our operating segments. Adjusted
EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America ("GAAP").
Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA
should not be considered in isolation or as an alternative to, or substitute for, net income, 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 is not a measurement determined in accordance with GAAP