Concentra Group Holdings Parent, Inc. · NYSE:CON
Concentra Group Holdings Parent — Concentra — Investor Presentation (November 2024)
26 slides from Concentra Group Holdings Parent's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation November 2024 ©2024 Concentra Inc. All rights reserved.
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Company Overview
C O M PA N Y OV E R V I E W ©2024 Concentra Inc. All rights reserved.
Slide 4: Concentra At-a-Glance
Concentra At-a-Glance 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 ROBUST FINANCIALS 549 156 $1.9bn $368mm Occupational health Onsit
Slide 5: We Have Built an Extensive Footprint Across the U.S.
We Have Built an Extensive Footprint Across the U.S. Our broad geographic footprint serves a vast number of employers and enables us to care for millions of employees 65% of U.S. employer locations are within ~12 miles of our health centers1 Occupational Health Center Onsite Health Clinic Telemedici
Slide 6: We Create Convenient Access for Employers and Patients
We Create Convenient Access for Employers and Patients… Occupational Onsite Health Health Centers Clinics Telemed Description Centers specializing in Clinics dedicated to a Telemedicine solution offering occupational and single employer’s used to treat work injuries other health care services worksi
Slide 7: Comprehensive Array of Services for Workers' Compensation and Employer Services
… And Offer a Comprehensive Array of Services For Workers’ Compensation and Employer Services, All in One Place Injury care Nature of injuries treated Workers’ Sprains / strains Lacerations / abrasions Compensation ~64% Physical therapy Eye injuries Burns / wound care Of Revenue1 Services Exposures
Slide 8: Our Value Proposition is Focused on Improving Employees' Health
Our Value Proposition is Focused on Improving Employees’ Health with a Safe Return to Work Access and With alignment across all stakeholders – including patients, employers, and convenience payors – we aim to ensure employees’ safe and sustainable return to work and help lower overall claims costs,
Slide 9: We Serve a Deep and Diverse Customer Base
We Serve a Deep and Diverse Customer Base… Representative employer customers 100% of Fortune 100 companies1 Employers 99% of top 100 employer customers have been with us for 10+ years1 200k employer customers1 Top 1,000 employer customers represent ~37% of revenue2 Workers’ compensation Representati
Slide 10: Diversity Across Payors, Geographies, Industries and Employer Customers
… with Diversity Across Payors, Geographies, Industries and Employer Customers Attractive payor mix1 Broad geographic mix2 Medicare & Other Urgent & Commercial California Remaining States 18% <1% 2% Workers’ 55% Employer Compensation Texas Services Employers, insurance 10% Employers and TPAs carrier
Slide 11: Our Industry Has Seen Stable Growth Over Time
Our Industry Has Seen Stable Growth Over Time… A growing active U.S. Stabilizing workplace Consistent reimbursement workforce injury incidence rate increases Annual growth in incremental revenue U.S. workforce size (millions)1 Top 10 industries by injury incidence2 from reimbursement rates (YoY%)3 ~
Slide 12: Driven by Ongoing Workforce Needs and Challenges
… Driven by Ongoing Workforce Needs and Challenges Aging employed Increase in High injury rates population comorbidity claims among young $167bn workers 25-30% 175% 28% Of U.S. employees projected to Increase in workers’ Of claims attributable to be over age 55 by 20301 compensation claims involving
Slide 13: We Are Delivering On Our Objectives, and It's Just The Beginning
We Are Delivering On Our Objectives, and It’s Just The Beginning What we have achieved Stable enterprise-wide top-line growth and attractive ~20% Adj. EBITDA Executing On Our Base Business margins, with opportunity for future upside from growth initiatives Continued build-out of our organic growth p
Slide 14: Our Competitive Strengths Deliver Value Creation
Our Competitive Strengths Deliver Value Creation 1 Leader in Occupational Health Services 2 Diversified Service Offering 3 High-Quality Health Care & Positive Clinical Outcomes 4 Operational Excellence & Positive Patient Satisfaction 5 Deep & Diverse Customer Relationships 6 Track Record of Innovati
Slide 15: Financial Update
F I N A N C I A L U P DAT E ©2024 Concentra Inc. All rights reserved.
Slide 16: Key Q3 Performance Highlights & Company Developments
Key Q3 Performance Highlights & Company Developments Q3 ’23 Q3 ’24 YoY (∆) • Number of locations grew 3.1% YoY to 705 total locations Facility Count (End of Period) • Opened one de novo (Chattanooga, TN) and completed one Total Occupational Health Centers 539 549 +10 acquisition (Chicago, IL) Total
Slide 17: YTD 2024 Performance
YTD 2024 Performance Number of Locations Visits per Day Revenue per Visit 684 705 +3% 51,136 50,149 -2% $134.62 $140.12 +4% 145 156 +8% 27,836 26,513 -5% 539 549 +2% 22,391 22,733 +2% 9/30/23 9/30/24 YTD '23 YTD '24 YTD '23 YTD '24 Work. Comp. $195 $199 +2% Centers Onsites Work. Comp. Empl. Svcs. Co
Slide 18: Balance Sheet & Capital Allocation Strategy
Balance Sheet & Capital Allocation Strategy Capital Allocation Strategy Net Leverage 1 Liquidity ($mm) Leverage $523 Prudent management of leverage levels, ~3.9x 3.7x targeting <3.0x net leverage 24 months post-IPO M&A and De Novos <3.0x Strong pipeline + disciplined approach to $386 Revolver enhanc
Slide 19: 2024 Full-Year Guidance
2024 Full-Year Guidance FY 2023 Actual FY 2024 Outlook Total Revenue $1.8bn ~$1.9bn Adjusted EBITDA1 $361mm $370mm – $375mm Capital Expenditures $65mm $65mm – $70mm Net Leverage2 N/A 3.5x – 3.6x (1) Adjusted EBITDA is a non-GAAP measures, see appendix for a reconciliation to net income; (2) Net Leve
Slide 20: Our Long-Term Financial Targets
Our Long-Term Financial Targets Stable Revenue Consistent Robust Free Prudent Growth Profitability with Cash Flow2 Deleveraging Dividend (Further Upside from Continued Generation Strategy De Novos and M&A) Improvement Mid-to-High 20%+ >80% < 3.0x $0.0625 Single-digit growth Adjusted EBITDA Annual FC
Slide 21: Appendix
APPENDIX ©2024 Concentra Inc. All rights reserved.
Slide 22: Our Experienced Leadership Team
Our Experienced Leadership Team with 275 Years of Combined Experience with Concentra WILLIAM K. NEWTON JOHN ANDERSON, DO GIOVANNI GALLARA, PT DOUGLAS MCANDREW Executive Vice President, Executive Vice President, Executive Vice President, Chief Executive Officer Chief Medical Officer Chief Clinical Se
Slide 23: Introducing our Board of Directors
Introducing our Board of Directors with a Long Track Record of Success and Health Care Leadership Experience Robert A. Ortenzio Daniel J. Thomas Keith Newton Cheryl Pegus, MD, MPH Marc R. Watkins, MD Director, Chair Director Director, CEO Director Director • Co-founder and Executive • Former Concent
Slide 24: Reconciliation of Net Income to Adjusted EBITDA and TTM Revenue
Reconciliation of Net Income to Adjusted EBITDA and TTM Revenue Three Months Three Months Ended Sep. 30, Nine Months Ended Sep. 30, TTM Sep. 30, Ended Dec. 31, ($000's) 2024 2023 2024 2023 2023 2024 Revenue $489,638 $473,964 $1,431,151 $1,397,341 $440,740 $1,871,891 Net Income $45,759 $54,424 $149,0
Slide 25: Reconciliation of 2024 Full-Year Adjusted EBITDA Guidance
Reconciliation of 2024 Full-Year Adjusted EBITDA Guidance Range ($ in millions) Low High Net Income $169 $173 Income Tax Expense $57 $58 Interest Expense $22 $22 Interest Expense on Related Party Debt $48 $48 Equity in Losses of Unconsolidated Subsidiaries $4 $4 Stock Compensation Expense $1 $1 Depr
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