EXHIBIT 99.2
Published on October 31, 2024
©2024 Concentra Inc. All rights reserved. 3rd Quarter 2024 Results October 31, 2024 |
©2024 Concentra Inc. All rights reserved. Forward-Looking Statements This presentation contains forward-looking statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results that include, but are not limited to, financial guidance and other projections and forecasts. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including those under “Risk Factors” therein. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Forward-looking statements speak only as of the date made. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Use of Non-GAAP Financial Information In order to provide investors with greater insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision making, the Company supplements its condensed consolidated financial statements presented on a GAAP basis herein with certain non-GAAP financial information, including reconciliations of these non-GAAP measures to their most directly comparable GAAP measures, which are included in this presentation, as well as in the Company’s quarterly financial press releases and related Form 8-K filings with the SEC. This information can be accessed for free by visiting www.concentra.com or www.sec.gov. 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, 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. We will refer to Adjusted EBITDA and Adjusted EBITDA margin throughout these materials. Disclaimer 2 |
©2024 Concentra Inc. All rights reserved. Concentra At-a-Glance 3 Concentra is the largest provider of occupational health services in the United States by number of locations1, with a mission of improving the health of America’s workforce, one patient at a time. KEY STATISTICS 156 Onsite health clinics1 ~11k Total colleagues & affiliated clinicians2,3 $1.9bn TTM Revenue1 19.6% TTM Adj. EBITDA margin1,4 45 States with service offerings1 200k+ Employer customers2 50,000+ Patients cared for each business day2 ROBUST FINANCIALS $368mm TTM Adj. EBITDA1,4 <1% Revenue from government payor reimbursement1 >80% Free cash flow conversion5 ©2024 Concentra Inc. All rights reserved. (1) As of September 30, 2024; (2) As of CY 2023; (3) The term "colleagues and affiliated physicians and clinicians" includes both our directly employed colleagues who provide administrative and management support to the affiliated professional medical group entities and the physicians and clinicians that are employed by the affiliated professional medical groups; (4) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, see appendix for a reconciliation to net income; (5) Average of 2020-2023, calculated as free cash flow (“FCF”) divided by Adjusted EBITDA, FCF is calculated as Adjusted EBITDA minus purchases of property and equipment, and is a non-GAAP measure 549 Occupational health centers1 <3% Revenue from largest employer customer1 |
©2024 Concentra Inc. All rights reserved. We Create Convenient Access for Employers and Patients… 4 (1) As of September 30, 2024; (2) TTM as of September 30, 2024, figures are rounded, remaining ~2% comprised of other businesses (pharmacy repackaging operations and third-party employer services administration) Occupational Health Centers Onsite Health Clinics Telemed Description Centers specializing in offering occupational and other health care services to employer customers Clinics dedicated to a single employer’s worksite, offering occupational health, advanced primary care, and other services Telemedicine solution used to treat work injuries and illnesses, behavioral health, and other services # of Facilities1 549 156 Virtual 24/7 Customer Types 200,000+ employers, ranging from Fortune 100 to small businesses Medium to large-sized companies All types of employers % of Revenue2 ~94% ~3% ~1% Services Offered Occupational Health (Workers’ Compensation, Employer Services), Consumer Health and Advanced Primary Care ©2024 Concentra Inc. All rights reserved. 4 |
©2024 Concentra Inc. All rights reserved. Our Value Proposition is Focused on Improving Employees’ Health with a Safe Return to Work (1) Seen by Concentra for the year ended December 31, 2023; (2) Claim studies conducted by Concentra are based on approximately 500,000 closed claims evaluated between 2020 and 2023 for a select number of Concentra customers, including employers and a worker's compensation insurance carrier; (3) Based on over 1 million survey reports received annually; (4) Based on Google review scores of ~540 centers for CY 2023 5 With alignment across all stakeholders – including patients, employers, and payors – we aim to ensure employees’ safe and sustainable return to work and help lower overall claims costs, all while providing the highest quality care and experience possible Access and convenience High-quality health care and positive clinical outcomes Excellent customer experience with strong communication Early clinical intervention and safe and sustainable return to work Strong process management, technologies, and innovation Strong outcomes for employers… … High quality experience for employees Of injured employees are recommended for return to work in some capacity on same day after initial visit1 95% Of patients rate Concentra a 9 or 10, on a scale of 1-10, on overall satisfaction with their occupational health center visit3 ~77% On a rating scale of 1-5 stars on nationwide google reviews; 72% of centers rated 4 stars or above4 4.1 Lower average total cost per claim2 (compared to non-Concentra health centers) 25% |
©2024 Concentra Inc. All rights reserved. We Have a Highly Diverse Business with Strong Underlying Fundamentals 6 (1) Occupational Health Center revenue, TTM as of September 30, 2024; (2) Based on occupational health centers operated by Concentra as of September 30, 2024. Percentages represent rounded approximations and may not total 100%. Broad geographic mix2 Remaining States 55% California 18% Texas 10% Florida 6% Pennsylvania Colorado 6% 5% Attractive payor mix1 ~99% Non-government payor Employer Services Employers and TPAs 34% Medicare & Other <1% Workers’ Compensation Employers, insurance carriers and TPAs 64% Urgent & Commercial 2% Diverse industry mix1 Manufacturing, 9% Business Services & Staffing Agencies, 8% Retail, 8% Healthcare, 8% Food Stores, Products & Restaurants, 8% Government, 7% Logistics & Motor Freight, 7% Transportation, 7% Construction, 7% Wholesale, 7% Schools, 4% Other, 20% Low employer customer concentration1 37% Top 1,000 Employers Remaining Employers 63% #2 - #1,000 Employers 34% #1 Employer 3% |
©2024 Concentra Inc. All rights reserved. Experienced Leadership Team with 275 Years of Combined Experience with Concentra 7 MATTHEW DICANIO President & Chief Financial Officer Joined Concentra in 2015 20+ years of experience in management, finance and M&A Tenure: 9 years WILLIAM K. NEWTON Chief Executive Officer Joined Concentra (formerly known as OccuSystems) in 1995 40+ years of experience in healthcare business Tenure: 25 years JOHN DELORIMIER Executive Vice President, Chief Digital & Data Officer Tenure: 16 years DANIELLE KENDALL Senior Vice President, Human Resources Tenure: 24 years JONATHAN CONSER Executive Vice President, Chief Growth & Customer Officer Tenure: 21 years DOUGLAS MCANDREW Executive Vice President, Chief Operating Officer – West Tenure: 30 years GIOVANNI GALLARA, PT Executive Vice President, Chief Clinical Services Officer Tenure: 13 years JOHN ANDERSON, DO Executive Vice President, Chief Medical Officer Tenure: 31 years GREG GILBERT Executive Vice President, Chief Reimbursement & Government Relations Officer Tenure: 30 years SU ZAN NELSON Executive Vice President, Chief Accounting Officer Tenure: 21 years MICHAEL KOSUTH Executive Vice President, Chief Operating Officer – East Tenure: 28 years MICHAEL RHINE Executive Vice President, Chief Operating Officer Onsite Health & Telemedicine Tenure: 19 years THOMAS DEVASIA Executive Vice President, Chief Marketing & Innovation Officer Tenure: 8 years TIM RYAN Executive Vice President, General Counsel Tenure: Joined Oct. 2024 |
©2024 Concentra Inc. All rights reserved. Our Competitive Strengths Deliver Value Creation 8 1 Leader in Occupational Health Services 6 Track Record of Innovation 7 Multiple Levers Driving Robust Growth 8 Experienced Leadership 3 High-Quality Health Care & Positive Clinical Outcomes 2 Diversified Service Offering 4 Operational Excellence & Positive Patient Satisfaction 5 Deep & Diverse Customer Relationships |
©2024 Concentra Inc. All rights reserved. • Number of locations grew +3% YoY to 705 total locations • Opened one de novo (Chattanooga, TN) and completed one acquisition (Chicago, IL) • Revenue increased +3% in Q3 YoY • Largely driven by stable workers’ compensation visit volume and reimbursement rate increases across visit types, more than offsetting the decline of the lower revenue-per-visit employer services volume • Adjusted EBITDA grew +3% YoY, largely a result of revenue growth as well as improved efficiencies around general and administrative expense • Capital expenditures (excluding acquisitions) totaled $15.1 million in Q3 • Dividend approved by Board of Directors ($0.0625 per share), payable November 22, 2024 • Successfully navigated through and mitigated impacts of major storms (Beryl and Helene) and the CrowdStrike-related IT outage • Continued to advanced opportunities in our corporate development pipeline, including potential acquisitions and de novos • Initial stages of separation from Select Medical proceeding very smoothly, with a focus on key hires and minimizing disruption 9 Key Q3 Performance Highlights & Company Developments |
©2024 Concentra Inc. All rights reserved. Q3 2024 Performance (1) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, see appendix for a reconciliation to net income 10 539 549 145 156 684 705 9/30/23 9/30/24 Centers Onsites +2% +8% +3% Number of Locations 23,034 23,070 28,177 27,011 52,080 50,916 Q3 '23 Q3 '24 Work. Comp. Empl. Svcs. Cons. Health +0% -4% -2% Visits per Day $474.0 $489.6 Q3 '23 Q3 '24 +3% Revenue ($mm) $98.9 $101.6 Q3 '23 Q3 '24 +3% Adjusted EBITDA1 ($mm) 20.9% 20.7% Q3 '23 Q3 '24 -20bps Adjusted EBITDA Margin1 $136.11 $141.42 Q3 '23 Q3 '24 +4% Revenue per Visit Work. Comp. Empl. Svcs. $197 $86 $202 $90 +3% +4% |
©2024 Concentra Inc. All rights reserved. YTD 2024 Performance (1) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, see appendix for a reconciliation to net income 11 539 549 145 156 684 705 9/30/23 9/30/24 Centers Onsites +2% +8% +3% 22,391 22,733 27,836 26,513 51,136 50,149 YTD '23 YTD '24 Work. Comp. Empl. Svcs. Cons. Health +2% -5% -2% $1,397.3 $1,435.2 YTD '23 YTD '24 +3% Revenue ($mm) $293.0 $299.3 YTD '23 YTD '24 +2% Adjusted EBITDA1 ($mm) 21.0% 20.9% YTD '23 YTD '24 -10bps Adjusted EBITDA Margin1 $134.62 $140.12 YTD '23 YTD '24 +4% Work. Comp. Empl. Svcs. $195 $86 $199 $90 +2% +4% Number of Locations Visits per Day Revenue per Visit |
©2024 Concentra Inc. All rights reserved. Continued Execution of Proven, Multi-Pronged Growth Strategy 12 Strong history of organic growth in new and existing markets Organic Growth / Technologies Recent Accomplishments Completed nationwide rollout of CCaaS (Contact Center as a Service), significantly reducing calls to the medical centers Major progress in digitization initiatives (DOT forms, results reporting, lab connectivity, etc.) Continued significant improvement in patient satisfaction scores and turnaround time metrics Track record of growth and integration De Novos & Acquisitions Recent Accomplishments Acquisition of occupational health center in Chicago, IL (Jul. ‘24) De novo opened in Chattanooga, TN, a new area for Concentra (Sep. ‘24) De novo opened in Orlando, FL (Oct. ‘24) 8 signed leases for de novos slated to open over next 12 months Continue to build out strong acquisition pipeline Further expanding into adjacent, high-growth opportunities Expansion into Adjacencies Recent Accomplishments Launch of telemedicine-based behavioral health service offering (Aug. ‘24) Launch of advanced primary care in Onsite Health segment (Sep. ‘24) |
©2024 Concentra Inc. All rights reserved. Balance Sheet & Capital Allocation Strategy (1) Net Leverage = Net Debt / Adjusted EBITDA (per credit facility leverage calculation, non-GAAP measure) (2) $400M revolver undrawn, except $14M of normal course letters of credit that were in place at time of IPO/refinancing 13 Capital Allocation Strategy Leverage Prudent management of leverage levels, targeting <3.0x net leverage 24 months post-IPO M&A and De Novos Strong pipeline + disciplined approach to enhancing footprint for short- and long-term value creation Capital Expenditures Continued strategic investment in technology, facilities, and infrastructure Dividend Concentra Board of Directors approved a dividend of $0.0625 per share Net Leverage1 ~3.9x 3.7x <3.0x IPO Launch 9/30/2024 24-Month Target Post-IPO Liquidity ($mm) $137 $386 $523 9/30/2024 Cash Revolver Capacity2 |
©2024 Concentra Inc. All rights reserved. 2024 Full-Year Guidance 14 FY 2024 Outlook Total Revenue ~$1.9bn Adjusted EBITDA1 $370mm - $375mm Capital Expenditures $65mm - $70mm Net Leverage2 3.5x - 3.6x (1) Adjusted EBITDA is a non-GAAP measures, see appendix for a reconciliation to net income; (2) Net Leverage = Net Debt / Adjusted EBITDA (per credit facility leverage calculation, non-GAAP measure) |
©2024 Concentra Inc. All rights reserved. APPENDIX 15 |
©2024 Concentra Inc. All rights reserved. Reconciliation of Net Income to Adjusted EBITDA 16 Three Months Ended Sep. 30, Nine Months Ended Sep. 30, TTM Sep. 30, ($000's) 2024 2023 2024 2023 2024 Net Income $45,759 $54,424 $149,097 $155,887 $177,953 Income Tax Expense $16,415 $15,205 $49,648 $47,964 $59,571 Interest Expense $21,369 $64 $21,275 $108 $21,390 Interest Expense on Related Party Debt $2,691 $11,255 $21,980 $33,831 $32,402 Equity in Losses of Unconsolidated Subsidiaries - - $3,676 $526 $3,676 Stock Compensation Expense $168 - $500 $178 $973 Depreciation and Amortization $15,213 $17,959 $51,568 $54,552 $70,067 Separation Transaction Costs $(44) - $1,569 - $1,569 Adjusted EBITDA $101,571 $98,907 $299,313 $293,046 $367,601 Adjusted EBITDA Margin 20.7% 20.9% 20.9% 21.0% 19.6% |
©2024 Concentra Inc. All rights reserved. Reconciliation of Net Income to Adjusted EBITDA (2024 Guidance) 17 Range ($mm) Low High Net Income $169 $173 Income Tax Expense $57 $58 Interest Expense on Related Party Debt $22 $22 Interest Expense $48 $48 Equity in Losses of Unconsolidated Subsidiaries $4 $4 Stock Compensation Expense $1 $1 Depreciation and Amortization $67 $67 Separation Transaction Costs $2 $2 Adjusted EBITDA $370 $375 |