Concentra Group Holdings Parent Inc (CON) 2024 Q4 法說會逐字稿

Good morning, and thank you for joining us today for Concentra Group Holdings Parent, Incorporated's January investor conference call to discuss important company updates.

早安，感謝您今天參加 Concentra Group Holdings Parent, Incorporated 的一月份投資者電話會議，討論重要的公司更新。

Speaking today are the company's Chief Executive Officer, Keith Newton; and the company's President and Chief Financial Officer, Matt DiCanio.

今天發言的有該公司的執行長 Keith Newton；以及公司總裁兼財務長馬特·迪卡尼奧（Matt DiCanio）。

Management will provide commentary to cover the company's announcement from yesterday.

管理層將對公司昨日的公告發表評論。

There will be no Q&A session today, but additional opportunities will be available in the near future.

今天將沒有問答環節，但不久的將來會有更多的機會。

Before we get started, we would like to remind you that this conference call may contain forward-looking statements regarding future events or the future financial performance of the company, including, without limitation, statements regarding operating results, growth opportunities, and other statements that refer to Concentra's plans, expectations, strategies, intentions, and beliefs.

在開始之前，我們想提醒您，本次電話會議可能包含有關未來事件或公司未來財務業績的前瞻性陳述，包括但不限於有關經營業績、成長機會的陳述以及其他提及 Concentra 的計劃、期望、策略、意圖和信念的陳述。

These forward-looking statements are based on the information available to management of Concentra today, and the company assumes no obligation to update these statements as circumstances change.

這些前瞻性陳述是基於 Concentra 管理層目前掌握的信息，公司不承擔隨著情況變化更新這些陳述的義務。

In addition, financial results related to Q4 2024 and full year 2024 are preliminary and unaudited.

此外，2024 年第四季和 2024 年全年相關的財務結果是初步的和未經審計的。

At this time, I will turn the conference over to Mr. Keith Newton.

現在，我將把會議交給 Keith Newton 先生。

Please go ahead.

請繼續。

Thanks, operator.

謝謝，接線生。

Good morning, everyone, and thank you for joining the special investor call today, especially on short notice.

大家早安，感謝大家在短時間內參加今天的特別投資者電話會議。

We're looking forward to sharing some exciting updates.

我們期待分享一些令人興奮的更新。

As you may have seen, we made some important announcements yesterday after the close of business.

正如大家可能已經看到的，我們昨天收盤後發布了一些重要公告。

We announced our preliminary and unaudited Q4 and full-year 2024 financial results.

我們公佈了 2024 年第四季和全年初步未經審計的財務表現。

We announced the signing of a purchase agreement to acquire Nova Medical Centers, and we provided initial financial guidance for 2025 taking into account this acquisition.

我們宣布簽署收購 Nova Medical Centers 的購買協議，並根據此次收購提供了 2025 年的初步財務指導。

Matt and I just returned from the JP Morgan Healthcare Conference in San Francisco where we had productive discussions with existing and potential investors and gave a fireside chat presentation with JPM's equity analyst team, which is available on our investor relations website.

馬特和我剛從舊金山的摩根大通醫療保健會議回來，在那裡我們與現有和潛在投資者進行了富有成效的討論，並與摩根大通的股票分析師團隊進行了爐邊談話，該演講可在我們投資者關係網站上找到。

We had previously made comments about potentially providing 2025 guidance at this conference or on our Q4 earnings call which is scheduled for early March.

我們之前曾在此次會議上或定於 3 月初召開的第四季財報電話會議上表示可能提供 2025 年的指引。

Given the announcement of the Nova acquisition, we decided it was most appropriate and helpful to include everything in one announcement in order to tell a complete story.

鑑於 Nova 收購公告，我們認為將所有內容都包含在一份公告中以講述完整的故事是最合適和最有幫助的。

That is what we would like to go over today.

這就是我們今天想要討論的內容。

We will touch on financial results and outlook, but also want to share additional commentary about the pending acquisition as we are excited about this news and Nova's complementary footprint.

我們將談到財務表現和前景，同時也想分享更多即將到來的收購的評論，因為我們對這一消息和 Nova 的互補足跡感到興奮。

With that introduction, I will turn it over to Matt to make some brief remarks about our preliminary and unaudited Q4 and full-year 2024 results.

介紹完畢後，我將把時間交給馬特，讓他簡要介紹一下我們的 2024 年第四季和全年初步未經審計的業績。

And then we'll spend some time discussing Nova and our 2025 guidance.

然後我們會花一些時間討論 Nova 和我們的 2025 年指導。

Thanks, Keith, and good morning, everyone.

謝謝，基思，大家早安。

As Keith mentioned, we thought it was important to start this call in our announcement with an update on how we finished out 2024.

正如 Keith 所提到的，我們認為在本次電話會議的公告中，有必要介紹我們在 2024 年的收尾工作進展。

I am happy to report that we had a strong fourth quarter and end to the year, which included the completion of Select Medical Holdings Corporation spin-off of Concentra in November.

我很高興地報告，我們在第四季和年底的表現強勁，其中包括 11 月完成 Select Medical Holdings Corporation 對 Concentra 的分拆。

I will keep it relatively high level today, but we will have more details to share on our scheduled earnings call in early March.

今天我將保持相對較高的水平，但我們將在 3 月初的收益電話會議上分享更多詳細資訊。

Important to note, these are preliminary and unaudited results and are subject to our normal end-of-quarter and end-of-year audit process.

值得注意的是，這些是初步的、未經審計的結果，並需遵守我們正常的季度末和年末審計流程。

First, I'll talk about the quarter which slightly exceeded our expectations.

首先，我要談談略微超出我們預期的季度。

We ended the quarter with 552 occupational health centers and 157 on-site health clinics for a total of 709 locations, which is 15 more than the same time prior year.

截至本季度，我們擁有 552 個職業健康中心和 157 個現場健康診所，總計 709 個地點，比去年同期增加了 15 個。

Three de novo centers were opened during the fourth quarter in Orlando, Florida; DeSoto, Texas, which is in the Dallas-Fort Worth metro area; and a center in Knoxville, Tennessee, a new area for Concentra.

第四季度，佛羅裡達州奧蘭多開設了三家 de novo 中心；德州德索托，位於達拉斯-沃斯堡大都會區；以及位於田納西州諾克斯維爾的一個中心，這是 Concentra 的新區域。

In the quarter, revenue was $465 million, representing approximately 6% growth year over year.

本季營收為 4.65 億美元，年增約 6%。

Adjusted EBITDA was $77.5 million in the quarter versus $68.2 million in the same quarter of prior year or a 14% increase.

本季調整後 EBITDA 為 7,750 萬美元，而去年同期為 6,820 萬美元，成長 14%。

Adjusted EBITDA margin was 16.7% compared to 15.5% prior year.

調整後 EBITDA 利潤率為 16.7%，去年同期為 15.5%。

Net income is estimated at $20.6 million to $22.6 million as we are finalizing our end-of-year tax provision.

由於我們正在最終確定年終稅收撥備，淨收入估計為 2,060 萬美元至 2,260 萬美元。

Patient visits per day were down 2.1%, driven by a 4.8% decline in employer services visits but offset by a 1.1% increase in workers' compensation visit.

每日患者就診量下降了 2.1%，其中雇主服務就診量下降了 4.8%，但工傷賠償就診量增加了 1.1%，抵消了這一下降影響。

Revenue per visit was $145, an increase of 5.8% over the same quarter prior year.

每次造訪的收入為 145 美元，比去年同期成長 5.8%。

Now switching to the full-year 2024 results.

現在轉到 2024 年全年業績。

Revenue was $1.9 billion, representing 3.4% growth year over year.

營收為19億美元，年增3.4%。

Adjusted EBITDA was $376.9 million versus $361.3 million in the prior year or a 4.3% increase.

調整後 EBITDA 為 3.769 億美元，去年同期為 3.613 億美元，成長 4.3%。

Adjusted EBITDA margin was 19.8% compared to 19.7% prior year.

調整後 EBITDA 利潤率為 19.8%，去年同期為 19.7%。

Net income is estimated at $169.7 million to $171.7 million.

淨收入預計為 1.697 億美元至 1.717 億美元。

Patient visits per day were down 2.0% driven by a 4.8% decline in employer services visits, but offset by a 1.4% increase in workers' compensation volume.

由於雇主服務訪問量下降 4.8%，每日患者就診量下降 2.0%，但被工人賠償量增加 1.4% 所抵消。

Revenue per visit was $141, an increase of 4.5% over prior year.

每次造訪的收入為 141 美元，比上年增加 4.5%。

Capital expenditures for the year were $65.7 million.

全年資本支出為 6,570 萬美元。

Finally, we ended the year with a cash balance of approximately $183 million and a net leverage ratio of 3.5 times.

最後，我們在年底的現金餘額約為 1.83 億美元，淨槓桿率為 3.5 倍。

Looking back at the guidance we shared in our third-quarter earnings call and release, we met or exceeded on all financial metrics.

回顧我們在第三季財報電話會議和新聞稿中分享的指引，我們在所有財務指標上都達到或超越了預期。

We have previously guided to $1.9 billion in revenue, $370 million to $375 million in adjusted EBITDA, $65 million to $70 million in CapEx, and 3.5 times to 3.6 times net leverage.

我們先前預期營收為 19 億美元，調整後 EBITDA 為 3.7 億至 3.75 億美元，資本支出為 6,500 萬至 7,000 萬美元，淨槓桿率為 3.5 倍至 3.6 倍。

Overall, a strong end to the year, and we are proud of what our teams accomplished.

總體而言，今年取得了圓滿的結局，我們為團隊所取得的成就感到自豪。

We will share more information at our full-year 2024 earnings call in March.

我們將在 3 月的 2024 年全年財報電話會議上分享更多資訊。

And with that, I'll turn it back to Keith to give some more color on the Nova acquisition.

說完這些，我將話題轉回給 Keith，讓他更詳細地介紹 Nova 收購的情況。

Thanks, Matt.

謝謝，馬特。

We are very excited about this announcement.

我們對這個聲明感到非常興奮。

Nova is a pure-play occupational health services provider with 67 centers located in Texas, Georgia, Tennessee, Indiana, and Wisconsin.

Nova 是一家純粹的職業健康服務提供者，在德克薩斯州、喬治亞州、田納西州、印第安納州和威斯康辛州設有 67 個中心。

They have been in existence for more than 30 years and share many similarities with Concentra.

它們已經存在 30 多年了，與 Concentra 有許多相似之處。

Nova offers the same services we provide at Concentra occupational health centers, including injury care, physical therapy, drug and alcohol screening, and pre-employment physicals.

Nova 提供與我們在 Concentra 職業健康中心相同的服務，包括傷害護理、物理治療、藥物和酒精篩檢以及就業前體檢。

They share a very similar philosophy with a focus on return to work and improving the health of America's workforce.

他們有著非常相似的理念，重點關注重返工作崗位和改善美國勞動力的健康狀況。

Their occupational health centers are roughly the same size as Concentra's with a similar look and feel and a heavy focus on delivering a great patient experience.

他們的職業健康中心與 Concentra 的規模大致相同，外觀和感覺也相似，並且非常注重提供良好的患者體驗。

Nova has more than 800 colleagues that we're looking forward to welcoming to our family.

Nova 擁有 800 多名同事，我們期待他們加入我們的大家庭。

Overall, this transaction is core to what we do at Concentra and in line with our history of growth investments.

整體而言，此交易是 Concentra 業務的核心，且符合我們成長投資的歷史。

With a highly complementary footprint, this acquisition will expand our access points for employers, patients, payers, and other ecosystem partners and will help accelerate our growth trajectory.

憑藉高度互補的業務範圍，此次收購將擴大我們面向雇主、患者、付款人和其他生態系統合作夥伴的接入點，並將有助於加速我們的成長軌跡。

We will do so with the addition of 46 locations in the state of Texas, a state with favorable demographic and industry trends, automatic annual workers' compensation fee schedule updates, and one in which we have been targeting additional occupational health center growth.

我們將在德克薩斯州新增 46 個分支機構，該州具有良好的人口和行業趨勢，工人賠償費用表每年自動更新，我們一直致力於在該州增加職業健康中心。

Nova has occupational health centers in South Texas, West Texas, East Texas, and in major cities where we are also located such as DFW, Austin, Houston, and San Antonio.

Nova 在南德克薩斯州、西德克薩斯州、東德克薩斯州以及我們所在的主要城市（如 DFW、奧斯汀、休斯頓和聖安東尼奧）設有職業健康中心。

This will now make Texas our largest state in terms of occupational health center locations.

這將使德州成為我們職業健康中心數量最多的州。

In addition, we will be adding seven locations in Georgia, six locations in Wisconsin, and four each in Indiana and Tennessee, all strategically important states and very attractive for our growth strategy.

此外，我們將在喬治亞州增加 7 家店，在威斯康辛州增加 6 家門市，在印第安納州和田納西州各增加 4 家店，這些州都具有重要的戰略意義，對我們的成長策略非常有吸引力。

Our team is highly experienced with acquisition integrations, and I'm confident we will bring the teams together with best practices from both organizations and be even stronger after the combination.

我們的團隊在收購整合方面經驗豐富，我相信我們將把兩個組織的最佳實踐匯集在一起，在合併後變得更加強大。

I want to take a minute and acknowledge Nova's founders and entire leadership team for building a great company with dedicated and talented people and a long history of success.

我想花一點時間來感謝 Nova 的創始人和整個領導團隊，他們擁有敬業而有才華的員工，並擁有悠久的成功歷史，創建了一家偉大的公司。

The Nova leadership team and all of its colleagues should be incredibly proud of what they've built and accomplished and hopefully excited about this next chapter.

Nova 領導團隊及其所有同事都應該為他們所創造和所取得的成就感到無比自豪，並希望對接下來的篇章感到興奮。

Last comment before turning it back to Matt for additional commentary.

在將其交還給 Matt 徵求進一步意見之前，這是最後的評論。

This acquisition is another example of our team following through on what we discussed during our IPO process and subsequent earnings calls.

此次收購是我們團隊貫徹 IPO 流程和後續財報電話會議中討論內容的另一個例子。

We had mentioned our strong growth pipeline and history of successful integration execution, and the Nova acquisition will be another great opportunity for our team.

我們曾提到我們強勁的成長管道和成功整合執行的歷史，而收購 Nova 將成為我們團隊的另一個絕佳機會。

Thanks, Keith.

謝謝，基斯。

I'm extremely excited about this opportunity as well.

我對這個機會也感到非常興奮。

I want to add some additional high-level comments about the transaction, and then we'll wrap it up with our 2025 financial guidance.

我想補充一些有關此次交易的高層評論，然後我們將總結 2025 年的財務指導。

Here are some important details about the acquisition.

以下是有關此次收購的一些重要細節。

The agreed-upon purchase price is $265 million, subject to adjustment in accordance with the terms and conditions in the purchase agreement.

商定的購買價格為2.65億美元，但須根據購買協議中的條款和條件進行調整。

Subject to closing conditions, the transaction is expected to close in the first quarter of 2025.

根據成交條件，該交易預計將於 2025 年第一季完成。

The HSR waiting period has expired, and we have satisfied all other regulatory process requirements.

HSR 等待期已到期，並且我們已滿足所有其他監管流程要求。

We currently expect to finance the transaction with a combination of cash, new debt financing, and our existing revolving credit facility.

我們目前預計以現金、新債務融資和現有循環信貸融資相結合的方式為該交易提供資金。

The transaction is expected to be immediately accretive in year one.

預計此次交易將在第一年就產生增值效應。

In our investor presentation, you will see that LTM adjusted EBITDA for Nova, inclusive of year one run rate synergies, is approximately $28 million.

在我們的投資者介紹中，您將看到 Nova 的 LTM 調整後 EBITDA（包括第一年的運行率協同效應）約為 2800 萬美元。

Our pro forma net leverage will go from 3.5 times at December 31, 2024, to approximately 3.9 times at the time of the transaction or the same level we were at at the time of our IPO recapitalization.

我們的淨槓桿率預計將從 2024 年 12 月 31 日的 3.5 倍降至交易時的約 3.9 倍，或與我們 IPO 資本重組時的水平相同。

We expect to delever to 3.5 times by year-end, and we'll continue to target approximately 3.0 times within 18 to 24 months.

我們預計到年底槓桿率將降至 3.5 倍，並將在 18 至 24 個月內繼續將目標定在 3.0 倍左右。

Our liquidity with cash and revolver capacity is expected to remain at more than $400 million.

我們的現金和循環信貸容量流動性預計將維持在4億美元以上。

We will be focused on working with Nova to close the transaction, and expect we'll have more information to share on our Q4 and full-year 2024 earnings call in March.

我們將專注於與 Nova 合作完成交易，並期望​​在 3 月的 2024 年第四季和全年財報電話會議上分享更多資訊。

Now to round out the conference call today, we wanted to share our initial financial guidance for 2025.

今天的電話會議到此結束，我們想分享我們對 2025 年的初步財務指導。

With our strong finish to 2024, we are well positioned for continued growth this year.

隨著我們在 2024 年取得強勁成績，我們已為今年的持續成長做好了準備。

Inclusive of the Nova acquisition, Concentra expects to deliver 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, which includes some one-time acquisition transition costs; and a net leverage ratio of approximately 3.5 times by year-end.

包括收購 Nova 在內的 Concentra 預計將實現約 21 億美元的收入；調整後的 EBITDA 在 4.1 億美元至 4.25 億美元之間；資本支出在 8,000 萬美元到 9,000 萬美元之間，其中包括一些一次性收購過渡成本；年末淨槓桿率約3.5倍。

The guidance represents 10.5% revenue growth and approximately 11% EBITDA growth year over year, assuming the midpoint of our range.

假設處於我們預期範圍的中間值，該預期代表營收年增 10.5% 且 EBITDA 年成長約 11%。

Guidance includes the impact of all known fee schedule changes, expenses associated with services provided to Concentra by Select Medical under our TSA agreement, as well as incremental separation costs we have planned for 2025.

該指導包括所有已知費用表變更的影響、Select Medical 根據我們的 TSA 協議向 Concentra 提供的服務相關的費用，以及我們計劃在 2025 年增加的分離成本。

2024 was a transformative year for Concentra with our IPO and the completion of our separation from Select Medical.

2024 年是 Concentra 轉型的一年，我們進行了 IPO 並完成了與 Select Medical 的分離。

The Concentra team is excited to continue our growth in 2025, which looks like it will be another year with important company milestones.

Concentra 團隊很高興能在 2025 年繼續保持成長，這看起來將是公司又一個重要里程碑的一年。

With that, thank you, everyone, for taking the time to hear our additional commentary today.

最後，感謝大家今天抽出時間聽取我們的補充評論。

We look forward to speaking with everyone again very soon.

我們期待很快能再次與大家交談。

Thank you, ladies and gentlemen.

謝謝各位，女士們、先生們。

This does conclude today's call.

今天的電話會議到此結束。

You may disconnect your lines at this time, and have a wonderful day.

此時您可以斷開您的線路，並享受美好的一天。

And we thank you for your participation.

我們感謝您的參與。