|
Delaware
|
| |
8093
|
| |
30-1006613
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Stephen M. Leitzell
Anna Tomczyk Dechert LLP 2929 Arch Street Philadelphia, PA 19104 (215) 994-2621 |
| |
Nathan Ajiashvili
Alison Haggerty Latham & Watkins LLP 1271 Avenue of Americas New York, NY 10020 (212) 906-1200 |
|
| Large accelerated filer ☐ | | | Accelerated filer ☐ | | | Non-accelerated filer ☒ | | | Smaller reporting company ☐ | |
| | | | | | | | | | Emerging growth company ☐ | |
| | | | | ii | | | |
| | | | | 1 | | | |
| | | | | 18 | | | |
| | | | | 21 | | | |
| | | | | 25 | | | |
| | | | | 59 | | | |
| | | | | 61 | | | |
| | | | | 62 | | | |
| | | | | 63 | | | |
| | | | | 64 | | | |
| | | | | 66 | | | |
| | | | | 68 | | | |
| | | | | 71 | | | |
| | | | | 78 | | | |
| | | | | 97 | | | |
| | | | | 135 | | | |
| | | | | 143 | | | |
| | | | | 163 | | | |
| | | | | 164 | | | |
| | | | | 171 | | | |
| | | | | 176 | | | |
| | | | | 178 | | | |
| | | | | 180 | | | |
| | | | | 184 | | | |
| | | | | 193 | | | |
| | | | | 194 | | | |
| | | | | 195 | | | |
| | | | | F-1 | | |
| | |
Unaudited
|
| |||||||||
| | |
Three months ended June 30,
|
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
(in millions)
|
| |
(estimated)
|
| |
(actual)
|
| ||||||
Revenue
|
| | | $ | 477,915 | | | | | $ | 467,079 | | |
Cost and expenses: | | | | | | | | | | | | | |
Cost of services, exclusive of depreciation and amortization
|
| | | | 339,273 | | | | | | 329,836 | | |
General and administrative, exclusive of depreciation and amortization
|
| | | | 36,828 | | | | | | 37,003 | | |
Depreciation and amortization
|
| | | | 17,870 | | | | | | 18,283 | | |
Total costs and expenses
|
| | | | 393,971 | | | | | | 385,122 | | |
Other operating income
|
| | | | — | | | | | | 151 | | |
Income from Operations
|
| | | $ | 83,944 | | | | | $ | 82,108 | | |
| | |
June 30,
2024 |
| |
June 30,
2023 |
| ||||||
Number of occupational health centers – start of period
|
| | | | 547 | | | | | | 539 | | |
Number of occupational health centers acquired
|
| | | | — | | | | | | 1 | | |
Number of occupational health centers de novos
|
| | | | 1 | | | | | | — | | |
Number of occupational health centers closed/sold
|
| | | | (1) | | | | | | — | | |
Number of occupational health centers – end of period
|
| | | | 547 | | | | | | 540 | | |
Number of onsite health clinics operated – end of period
|
| | | | 154 | | | | | | 141 | | |
Number of patient visits(1) | | | | | | | | | | | | | |
Workers’ Compensation
|
| | | | 1,455,254 | | | | | | 1,429,035 | | |
Employer Services
|
| | | | 1,702,399 | | | | | | 1,781,012 | | |
Consumer Health
|
| | | | 56,602 | | | | | | 57,847 | | |
Total
|
| | | | 3,214,255 | | | | | | 3,267,894 | | |
VPD Volume(1) | | | | | | | | | | | | | |
Workers’ Compensation
|
| | | | 22,738 | | | | | | 22,329 | | |
Employer Services
|
| | | | 26,600 | | | | | | 27,828 | | |
Consumer Health
|
| | | | 884 | | | | | | 904 | | |
Total
|
| | | | 50,223 | | | | | | 51,061 | | |
Revenue per visit(1) | | | | | | | | | | | | | |
Workers’ Compensation
|
| | | $ | 198.18 | | | | | $ | 194.92 | | |
Employer Services
|
| | | | 90.05 | | | | | | 86.00 | | |
Consumer Health
|
| | | | 135.49 | | | | | | 134.88 | | |
Total
|
| | | $ | 139.81 | | | | | $ | 134.50 | | |
(Dollars in
thousands, except share and per share data) |
| |
Pro Forma
|
| |
Historical
|
| ||||||||||||||||||||||||||||||||||||
|
Three Months
Ended March 31, 2024 |
| |
Year ended
December 31, 2023 |
| |
For the Three Months
Ended March 31, |
| |
Years ended December 31,
|
| ||||||||||||||||||||||||||||||||
|
2024
|
| |
2023
|
| |
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||||||||||||||||
Revenue
|
| | | $ | 467,598 | | | | | $ | 1,838,081 | | | | | $ | 467,598 | | | | | $ | 456,298 | | | | | $ | 1,838,081 | | | | | $ | 1,724,359 | | | | | $ | 1,732,041 | | |
Total costs and expenses
|
| | | | 392,477 | | | | | | 1,551,071 | | | | | | 392,384 | | | | | | 381,038 | | | | | | 1,550,699 | | | | | | 1,466,142 | | | | | | 1,461,776 | | |
Other operating income
|
| | | | 284 | | | | | | 250 | | | | | | 284 | | | | | | — | | | | | | 250 | | | | | | 312 | | | | | | 34,999 | | |
Income from operations
|
| | | | 75,405 | | | | | | 287,260 | | | | | | 75,498 | | | | | | 75,260 | | | | | | 287,632 | | | | | | 258,529 | | | | | | 305,264 | | |
Other income and
expenses |
| | | | (28,565) | | | | | | (114,567) | | | | | | (10,082) | | | | | | (11,663) | | | | | | (45,002) | | | | | | (33,633) | | | | | | (29,701) | | |
Income before income taxes
|
| | | | 46,840 | | | | | | 172,693 | | | | | | 65,416 | | | | | | 63,597 | | | | | | 242,630 | | | | | | 224,896 | | | | | | 275,563 | | |
Income tax
expense |
| | | | 10,456 | | | | | | 40,263 | | | | | | 15,137 | | | | | | 16,166 | | | | | | 57,887 | | | | | | 52,653 | | | | | | 59,527 | | |
Net income
|
| | | | 36,384 | | | | | | 132,430 | | | | | | 50,279 | | | | | | 47,431 | | | | | | 184,743 | | | | | | 172,243 | | | | | | 216,036 | | |
Net income
attributable to non-controlling interests |
| | | | 1,323 | | | | | | 4,796 | | | | | | 1,323 | | | | | | 1,167 | | | | | | 4,796 | | | | | | 5,516 | | | | | | 7,161 | | |
Net income attributable to the Company
|
| | | $ | 35,061 | | | | | $ | 127,634 | | | | | $ | 48,956 | | | | | $ | 46,264 | | | | | $ | 179,947 | | | | | $ | 166,727 | | | | | $ | 208,875 | | |
Basic and diluted
earnings per share |
| | | $ | 0.28 | | | | | $ | 1.01 | | | | | $ | 0.47 | | | | | $ | 0.44 | | | | | $ | 1.73 | | | | | $ | 1.60 | | | | | $ | 1.99 | | |
Weighted average
number of shares – basic and diluted |
| | | | 126,593,503 | | | | | | 126,691,216 | | | | | | 104,093,503 | | | | | | 104,254,295 | | | | | | 104,191,216 | | | | | | 104,354,148 | | | | | | 105,167,240 | | |
(Dollars in thousands)
|
| |
Pro Forma
|
| |
Historical
|
| ||||||||||||
|
As of
March 31, 2024 |
| |
As of
|
| ||||||||||||||
|
March 31, 2024
|
| |
December 31, 2023
|
| ||||||||||||||
Total assets
|
| | | $ | 2,416,977 | | | | | $ | 2,366,162 | | | | | $ | 2,333,560 | | |
Total liabilities
|
| | | | 2,154,878 | | | | | | 1,146,878 | | | | | | 1,156,121 | | |
Total equity
|
| | | | 243,842 | | | | | | 1,201,027 | | | | | | 1,160,962 | | |
(Dollars in thousands)
|
| |
Historical
|
| |||||||||||||||||||||||||||
|
Three Months Ended March 31,
|
| |
Years ended December 31,
|
| ||||||||||||||||||||||||||
|
2024
|
| |
2023
|
| |
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||||
Net cash provided by operating
activities |
| | | $ | 44,622 | | | | | $ | 17,695 | | | | | $ | 234,316 | | | | | $ | 274,337 | | | | | $ | 290,638 | | |
Net cash used in investing activities
|
| | | | (22,352) | | | | | | (14,396) | | | | | | (75,308) | | | | | | (57,750) | | | | | | (61,798) | | |
Net cash flows used in financing
activities |
| | | | (4,092) | | | | | | (15,997) | | | | | | (165,291) | | | | | | (209,858) | | | | | | (342,589) | | |
Net increase (decrease) in cash
|
| | | | 18,178 | | | | | | (12,698) | | | | | | (6,283) | | | | | | 6,729 | | | | | | (113,749) | | |
Cash at beginning of period
|
| | | | 31,374 | | | | | | 37,657 | | | | | | 37,657 | | | | | | 30,928 | | | | | | 144,677 | | |
Cash at end of period
|
| | | $ | 49,552 | | | | | $ | 24,959 | | | | | | 31,374 | | | | | | 37,657 | | | | | | 30,928 | | |
(Dollars in thousands)
|
| |
Historical
|
| |||||||||||||||||||||||||||
|
Three Months Ended March 31,
|
| |
Years ended December 31,
|
| ||||||||||||||||||||||||||
|
2024
|
| |
2023
|
| |
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||||
Adjusted EBITDA(1)
|
| | | $ | 96,142 | | | | | $ | 93,748 | | | | | $ | 361,334 | | | | | $ | 334,337 | | | | | $ | 389,616 | | |
Adjusted EBITDA Margin(1)
|
| | | | 20.6% | | | | | | 20.5% | | | | | | 19.7% | | | | | | 19.4% | | | | | | 22.5% | | |
COVID-adjusted EBITDA(1)
|
| | | $ | 96,142 | | | | | $ | 93,748 | | | | | $ | 361,334 | | | | | $ | 333,860 | | | | | $ | 314,969 | | |
| | |
Three Months Ended March 31,
|
| |
Years ended December 31,
|
| ||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2024
|
| |
2023
|
| |
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||
Reconciliation of Adjusted EBITDA and COVID-adjusted EBITDA
|
| | | | | | |||||||||||||||||||||||||
Net income
|
| | | $ | 50,279 | | | | | $ | 47,431 | | | | | $ | 184,743 | | | | | $ | 172,243 | | | | | $ | 216,036 | | |
Income tax expense
|
| | | | 15,137 | | | | | | 16,166 | | | | | | 57,887 | | | | | | 52,653 | | | | | | 59,527 | | |
Interest expense
|
| | | | 111 | | | | | | 61 | | | | | | 221 | | | | | | 849 | | | | | | 2,383 | | |
Interest expense on related party debt
|
| | | | 9,971 | | | | | | 11,076 | | | | | | 44,253 | | | | | | 30,792 | | | | | | 29,473 | | |
Loss (gain) on sale of businesses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,155) | | |
Equity in losses of unconsolidated
subsidiaries |
| | | | — | | | | | | 526 | | | | | | 526 | | | | | | 1,577 | | | | | | — | | |
Other expense
|
| | | | — | | | | | | — | | | | | | 2 | | | | | | 415 | | | | | | — | | |
Stock compensation expense
|
| | | | 166 | | | | | | 178 | | | | | | 651 | | | | | | 2,141 | | | | | | 2,142 | | |
Depreciation and amortization
|
| | | | 18,485 | | | | | | 18,310 | | | | | | 73,051 | | | | | | 73,667 | | | | | | 82,210 | | |
Separation transaction costs(a)
|
| | | | 1,993 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 96,142 | | | | | $ | 93,748 | | | | | $ | 361,334 | | | | | $ | 334,337 | | | | | $ | 389,616 | | |
Other non-recurring income directly attributable to COVID-19(b)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (477) | | | | | | (74,647) | | |
COVID-adjusted EBITDA
|
| | | $ | 96,142 | | | | | $ | 93,748 | | | | | $ | 361,334 | | | | | $ | 333,860 | | | | | $ | 314,969 | | |
Adjusted EBITDA margin
|
| | | | 20.6% | | | | | | 20.5% | | | | | | 19.7% | | | | | | 19.4% | | | | | | 22.5% | | |
Net income margin
|
| | | | 10.8% | | | | | | 10.4% | | | | | | 10.1% | | | | | | 10.0% | | | | | | 12.5% | | |
| | |
As of March 31, 2024
|
| |||||||||||||||
|
Actual
|
| |
Pro Forma
|
| |
Pro Forma As
Adjusted(1) |
| |||||||||||
(Dollars and share amounts in thousands) | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 49,552 | | | | | $ | 99,552 | | | | | $ | 99,552 | | |
Debt: | | | | | | | | | | | | | | | | | | | |
Senior term loan
|
| | | | — | | | | | | 850,000 | | | | | | 850,000 | | |
Notes
|
| | | | — | | | | | | 650,000 | | | | | | 650,000 | | |
Long-term debt with Related Party
|
| | | | 470,000 | | | | | | 470,000 | | | | | | — | | |
Promissory Note
|
| | | | — | | | | | | 43,591 | | | | | | — | | |
Other Debt
|
| | | | 9,833 | | | | | | 9,833 | | | | | | 9,833 | | |
Total debt
|
| | | $ | 479,833 | | | | | $ | 2,023,424 | | | | | | 1,509,833 | | |
Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | |
Common stock – par value $0.01 per share (447,081 authorized shares; 104,094 issued shares, actual) (447,081 authorized shares; 126,594 issued shares, pro forma)
|
| | | | 1,041 | | | | | | 1,041 | | | | | | 1,266 | | |
Additional paid-in capital
|
| | | | 462,371 | | | | | | 462,371 | | | | | | 975,737 | | |
Retained earnings
|
| | | | 732,348 | | | | | | (738,428) | | | | | | (738,428) | | |
Total stockholder’s equity
|
| | | | 1,195,760 | | | | | | (275,016) | | | | | | 238,575 | | |
Non-controlling interests
|
| | | | 5,267 | | | | | | 5,267 | | | | | | 5,267 | | |
Total equity
|
| | | | 1,201,027 | | | | | | (269,749) | | | | | | 243,842 | | |
Total capitalization
|
| | | $ | 1,680,860 | | | | | $ | 1,753,675 | | | | | $ | 1,753,675 | | |
|
Assumed initial public offering price per share of our common stock
|
| | | $ | 24.50 | | | | | | | | |
|
Historical net tangible book value (deficit) per share as of March 31, 2024
|
| | | | | | | | | $ | (2.24) | | |
|
Pro forma net tangible book value (deficit) per share of our common stock after giving effect to the Cash Dividend, the Promissory Note, and the Debt Financing Transactions
|
| | | | | | | | | | (16.37) | | |
|
Increase (decrease) in pro forma net tangible book value (deficit) per share of our common stock attributable to new investors purchasing shares of our common stock in this offering
|
| | | | 6.97 | | | | | | | | |
|
Pro forma net tangible book value (deficit) per share of our common stock after giving
effect to the Cash Dividend, the Promissory Note, the Separation, the Debt Financing Transactions and this offering |
| | | | | | | | | | (9.41) | | |
|
Dilution in pro forma net tangible book value (deficit) per share of our common stock to new investors purchasing shares of our common stock in this offering
|
| | | | | | | | | $ | 33.91 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price Per Share* |
| |||||||||||||||||||||
|
Number
|
| |
Percent
|
| |
Dollars
(in Millions)* |
| |
Percent
|
| ||||||||||||||||||||
Existing stockholders(1)
|
| | | | 104,093,503 | | | | | | 82.23% | | | | | $ | 262.1 | | | | | | 32.22% | | | | | $ | 2.52 | | |
New investors
|
| | | | 22,500,000 | | | | | | 17.77 | | | | | | 551.3 | | | | | | 67.78 | | | | | | 24.50 | | |
Total
|
| | | | 126,593,503 | | | | | | 100.0% | | | | | $ | 813.3 | | | | | | 100.0% | | | | | $ | 6.43 | | |
| | |
Year ended December 31, 2023
|
| |||||||||||||||||||||
| | |
Historical
|
| |
Transaction
Accounting Adjustments |
| |
Autonomous
Entity Adjustments |
| |
Pro Forma
|
| ||||||||||||
Revenue
|
| | | $ | 1,838,081 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,838,081 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services, exclusive of depreciation and amortization
|
| | | | 1,325,649 | | | | | | — | | | | | | — | | | | | | 1,325,649 | | |
General and administrative, exclusive of depreciation and amortization
|
| | | | 151,999 | | | | | | — | | | | | | 372(d) | | | | | | 152,371 | | |
Depreciation and amortization
|
| | | | 73,051 | | | | | | — | | | | | | — | | | | | | 73,051 | | |
Total costs and expenses
|
| | | | 1,550,699 | | | | | | — | | | | | | 372 | | | | | | 1,551,071 | | |
Other operating income
|
| | | | 250 | | | | | | — | | | | | | — | | | | | | 250 | | |
Income from operations
|
| | | | 287,632 | | | | | | — | | | | | | (372) | | | | | | 287,260 | | |
Other income and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity in losses of unconsolidated subsidiaries
|
| | | | (526) | | | | | | — | | | | | | — | | | | | | (526) | | |
Interest expense on related party debt
|
| | | | (44,253) | | | | | | 44,253 (b) | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | (221) | | | | | | (113,818)(a) | | | | | | — | | | | | | (114,039) | | |
Other expense
|
| | | | (2) | | | | | | — | | | | | | — | | | | | | (2) | | |
Income before income taxes
|
| | | | 242,630 | | | | | | (69,565) | | | | | | (372) | | | | | | 172,693 | | |
Income tax expense
|
| | | | 57,887 | | | | | | (17,530)(c) | | | | | | (94)(e) | | | | | | 40,263 | | |
Net income
|
| | | $ | 184,743 | | | | | $ | (52,035) | | | | | $ | (278) | | | | | $ | 132,430 | | |
Less: Net income attributable to non-controlling interests
|
| | | | 4,796 | | | | | | — | | | | | | — | | | | | | 4,796 | | |
Net income attributable to the Company
|
| | | $ | 179,947 | | | | | $ | (52,035) | | | | | $ | (278) | | | | | $ | 127,634 | | |
Basic and diluted weighted average shares outstanding
|
| | | | 104,191 | | | | | | | | | | | | | | | | | | 126,691(f) | | |
Basic and diluted earnings per share
|
| | | $ | 1.73 | | | | | | | | | | | | | | | | | $ | 1.01(f) | | |
| | |
Three months ended March 31, 2024
|
| | |||||||||||||||||||||||
| | |
Historical
|
| |
Transaction
Accounting Adjustments |
| |
Autonomous
Entity Adjustments |
| |
Pro Forma
|
| | ||||||||||||||
Revenue
|
| | | $ | 467,598 | | | | | $ | — | | | | | $ | — | | | | | $ | 467,598 | | | | ||
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services, exclusive of depreciation and amortization
|
| | | | 336,990 | | | | | | — | | | | | | — | | | | | | 336,990 | | | | ||
General and administrative, exclusive of depreciation and amortization
|
| | | | 36,909 | | | | | | — | | | | | | 93(d) | | | | | | 37,002 | | | | ||
Depreciation and amortization
|
| | | | 18,485 | | | | | | — | | | | | | — | | | | | | 18,485 | | | | ||
Total costs and expenses
|
| | | | 392,384 | | | | | | — | | | | | | 93 | | | | | | 392,477 | | | | ||
Other operating income
|
| | | | 284 | | | | | | — | | | | | | — | | | | | | 284 | | | | ||
Income from operations
|
| | | | 75,498 | | | | | | — | | | | | | (93) | | | | | | 75,405 | | | | ||
Other income and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Interest expense on related party debt
|
| | | | (9,971) | | | | | | 9,971 (b) | | | | | | — | | | | | | — | | | | ||
Interest expense
|
| | | | (111) | | | | | | (28,454)(a) | | | | | | — | | | | | | (28,565) | | | | ||
Income before income taxes
|
| | | | 65,416 | | | | | | (18,483) | | | | | | (93) | | | | | | 46,840 | | | | ||
Income tax expense
|
| | | | 15,137 | | | | | | (4,658)(c) | | | | | | (23)(e) | | | | | | 10,456 | | | | ||
Net income
|
| | | $ | 50,279 | | | | | $ | (13,825) | | | | | $ | (70) | | | | | $ | 36,384 | | | | ||
Less: Net income attributable to non-controlling interests
|
| | | | 1,323 | | | | | | — | | | | | | — | | | | | | 1,323 | | | | ||
Net income attributable to the Company
|
| | | $ | 48,956 | | | | | $ | (13,825) | | | | | $ | (70) | | | | | $ | 35,061 | | | | ||
Basic and diluted weighted average shares outstanding
|
| | | | 104,094 | | | | | | | | | | | | | | | | | | 126,594(f) | | | | ||
Basic and diluted earnings per share
|
| | | $ | 0.47 | | | | | $ | | | | | | $ | | | | | | $ | 0.28(f) | | | |
| | |
Three months ended March 31, 2024
|
| |||||||||||||||||||||
| | |
Historical
|
| |
Transaction
Accounting Adjustments |
| |
Autonomous
Entity Adjustments |
| |
Pro Forma
|
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | |
|
| |||
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 49,552 | | | | | $ | 50,000 (a) | | | | | $ | — | | | | | $ | 99,552 | | |
Accounts receivable
|
| | | | 229,686 | | | | | | — | | | | | | — | | | | | | 229,686 | | |
Prepaid income taxes
|
| | | | 2,146 | | | | | | — | | | | | | — | | | | | | 2,146 | | |
Other current assets
|
| | | | 46,155 | | | | | | — | | | | | | — | | | | | | 46,155 | | |
Total Current Assets
|
| | | | 327,539 | | | | | | 50,000 | | | | | | — | | | | | | 377,539 | | |
Operating lease right-of-use assets
|
| | | | 394,252 | | | | | | — | | | | | | — | | | | | | 394,252 | | |
Property and equipment,
net |
| | | | 182,780 | | | | | | — | | | | | | — | | | | | | 182,780 | | |
Goodwill
|
| | | | 1,233,406 | | | | | | — | | | | | | — | | | | | | 1,233,406 | | |
Customer relationships
|
| | | | 111,860 | | | | | | — | | | | | | — | | | | | | 111,860 | | |
Identifiable intangible assets, net
|
| | | | 107,678 | | | | | | — | | | | | | — | | | | | | 107,678 | | |
Other assets
|
| | | | 8,647 | | | | | | 815 (a) | | | | | | — | | | | | | 9,462 | | |
Total Assets
|
| | | $ | 2,366,162 | | | | | $ | 50,815 | | | | | $ | — | | | | | $ | 2,416,977 | | |
Liabilities and Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current operating lease liabilities
|
| | | | 73,714 | | | | | | — | | | | | | — | | | | | | 73,714 | | |
Current portion of long-term debt and notes payable
|
| | | | 6,636 | | | | | | — | | | | | | — | | | | | | 6,636 | | |
Accounts Payable
|
| | | | 24,649 | | | | | | — | | | | | | — | | | | | | 24,649 | | |
Due to related party
|
| | | | 3,313 | | | | | | — | | | | | | — | | | | | | 3,313 | | |
Accrued and other liabilities
|
| | | | 167,317 | | | | | | — | | | | | | — | | | | | | 167,317 | | |
Total Current Liabilities
|
| | | | 275,629 | | | | | | — | | | | | | — | | | | | | 275,629 | | |
Non-current operating lease liabilities
|
| | | | 353,923 | | | | | | — | | | | | | — | | | | | | 353,923 | | |
Long-term debt, net of current portion
|
| | | | 3,197 | | | | | | 1,478,000 (a) | | | | | | — | | | | | | 1,481,197 | | |
Long-term debt with related party
|
| | | | 470,000 | | | | | | (470,000)(b) | | | | | | — | | | | | | — | | |
Non-current deferred tax liability
|
| | | | 21,092 | | | | | | — | | | | | | — | | | | | | 21,092 | | |
Other non-current liabilities
|
| | | | 23,037 | | | | | | | | | | | | — | | | | | | 23,037 | | |
Total Liabilities
|
| | | $ | 1,146,878 | | | | | $ | 1,008,000 | | | | | $ | — | | | | | $ | 2,154,878 | | |
Redeemable non-controlling interest
|
| | | | 18,257 | | | | | | — | | | | | | — | | | | | | 18,257 | | |
Common stock
|
| | | | 1,041 | | | | | | 225 (b) | | | | | | — | | | | | | 1,266 | | |
Capital in excess of par
|
| | | | 462,371 | | | | | | 513,366 (b) | | | | | | — | | | | | | 975,737 | | |
Retained earnings
|
| | | | 732,348 | | | | | | (1,470,776)(a)(b) | | | | | | — | | | | | | (738,428) | | |
Total Stockholders’
Equity |
| | | | 1,195,760 | | | | | | (957,185) | | | | | | — | | | | | | 238,575 | | |
Non-controlling interests
|
| | | | 5,267 | | | | | | — | | | | | | — | | | | | | 5,267 | | |
Total Equity
|
| | | $ | 1,201,027 | | | | | $ | (957,185) | | | | | $ | — | | | | | $ | 243,842 | | |
Total Liabilities and
Equity |
| | | $ | 2,366,162 | | | | | $ | 50,815 | | | | | $ | — | | | | | $ | 2,416,977 | | |
| | |
Three Months Ended
March 31, 2024 |
| |
Year ended
December 31, 2023 |
| ||||||
Interest expense on total debt at estimated weighted average rate of approximately 7.3%
|
| | | $ | 27,278 | | | | | $ | 109,111 | | |
0.375% commitment fee on undrawn credit facility
|
| | | $ | 375 | | | | | $ | 1,500 | | |
Amortization of debt issuance costs and original issue discount
|
| | | $ | 801 | | | | | $ | 3,207 | | |
Total interest expense from debt
|
| | | $ | 28,454 | | | | | $ | 113,818 | | |
Tax effect of the total interest expense
|
| | | $ | 7,170 | | | | | $ | 28,682 | | |
| | |
Three months ended
March 31, 2024 |
| |
Year ended
December 31, 2023 |
| ||||||
Earnings per share of common stock – basic and diluted
|
| | | $ | 0.28 | | | | | $ | 1.01 | | |
Weighted-average number of shares of common stock outstanding – basic and diluted
|
| | |
|
126,593,503
|
| | | |
|
126,691,216
|
| |
| | |
Three months ended March 31, 2024
|
| |||||||||
| | |
Pro forma
net income |
| |
Pro forma
basic and diluted income per share |
| ||||||
Pro forma as shown above
|
| | | $ | 35,061 | | | | | $ | 0.28 | | |
Management adjustments
|
| | | | | | | | | | | | |
General and administrative(a)
|
| | | $ | 4,399 | | | | | | | | |
Tax effect of management adjustments(b)
|
| | | | (1,108) | | | | | | | | |
Total management adjustments
|
| | | | 3,291 | | | | | | | | |
Pro forma net income (loss) after management adjustments
|
| | | $ | 31,770 | | | | | $ | 0.25 | | |
Weighted average basic and diluted common shares
|
| | | | | | | | | | 126,593,503 | | |
| | |
Year ended December 31, 2023
|
| |||||||||
| | |
Pro forma
net income |
| |
Pro forma
basic and diluted income per share |
| ||||||
Pro forma as shown above
|
| | | $ | 127,634 | | | | | $ | 1.01 | | |
Management adjustments
|
| | | | | | | | | | | | |
General and administrative(a)
|
| | | $ | 17,595 | | | | | | | | |
Tax effect of management adjustments(b)
|
| | | | (4,434) | | | | | | | | |
Total management adjustments
|
| | | | 13,161 | | | | | | | | |
Pro forma net income (loss) after management adjustments
|
| | | $ | 114,473 | | | | | $ | 0.90 | | |
Weighted average basic and diluted common shares
|
| | | | | | | | | | 126,691,216 | | |
| | |
Three Months
Ended March 31, |
| |
% Change
2024 – 2023 |
| |
For the year ended December 31,
|
| |
% Change
2023 – 2022 |
| |
% Change
2022 – 2021 |
| |||||||||||||||||||||||||||||||||
|
2024
|
| |
2023
|
| |
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||||||||||||||||||||||
Number of patient visits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Workers’ Compensation
|
| | | | 1,433,084 | | | | | | 1,396,567 | | | | | | 2.6% | | | | | | 5,668,042 | | | | | | 5,312,802 | | | | | | 5,178,163 | | | | | | 6.7% | | | | | | 2.6% | | |
Employer Services
|
| | | | 1,659,291 | | | | | | 1,760,531 | | | | | | (5.8)% | | | | | | 6,874,693 | | | | | | 7,051,191 | | | | | | 6,645,005 | | | | | | (2.5)% | | | | | | 6.1% | | |
Consumer Health
|
| | | | 63,280 | | | | | | 60,847 | | | | | | 4.0% | | | | | | 234,897 | | | | | | 215,475 | | | | | | 229,556 | | | | | | 9.0% | | | | | | (6.1)% | | |
Total
|
| | | | 3,155,655 | | | | | | 3,217,945 | | | | | | (1.9)% | | | | | | 12,777,632 | | | | | | 12,579,468 | | | | | | 12,052,724 | | | | | | 1.6% | | | | | | 4.4% | | |
VPD Volume | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Workers’ Compensation
|
| | | | 22,392 | | | | | | 21,821 | | | | | | 2.6% | | | | | | 22,315 | | | | | | 20,834 | | | | | | 20,387 | | | | | | 7.1% | | | | | | 2.2% | | |
Employer Services
|
| | | | 25,926 | | | | | | 27,508 | | | | | | (5.8)% | | | | | | 27,066 | | | | | | 27,652 | | | | | | 26,161 | | | | | | (2.1)% | | | | | | 5.7% | | |
Consumer Health
|
| | | | 989 | | | | | | 951 | | | | | | 4.0% | | | | | | 925 | | | | | | 845 | | | | | | 904 | | | | | | 9.5% | | | | | | (6.5)% | | |
Total
|
| | | | 49,307 | | | | | | 50,280 | | | | | | (1.9)% | | | | | | 50,306 | | | | | | 49,331 | | | | | | 47,452 | | | | | | 2.0% | | | | | | 4.0% | | |
Revenue per visit | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Workers’ Compensation
|
| | | $ | 195.29 | | | | | $ | 192.14 | | | | | | 1.6% | | | | | $ | 194.48 | | | | | $ | 190.63 | | | | | $ | 186.79 | | | | | | 2.0% | | | | | | 2.1% | | |
Employer Services
|
| | | | 90.84 | | | | | | 86.44 | | | | | | 5.1% | | | | | | 86.44 | | | | | | 79.78 | | | | | | 75.39 | | | | | | 8.3% | | | | | | 5.8% | | |
Consumer Health
|
| | | | 131.57 | | | | | | 134.53 | | | | | | (2.2)% | | | | | | 132.80 | | | | | | 127.68 | | | | | | 153.97 | | | | | | 4.0% | | | | | | (17.1)% | | |
Total
|
| | | $ | 139.09 | | | | | $ | 133.22 | | | | | | 4.4% | | | | | $ | 135.22 | | | | | $ | 127.41 | | | | | $ | 124.75 | | | | | | 6.1% | | | | | | 2.1% | | |
Business Days
|
| | | | 64 | | | | | | 64 | | | | | | | | | | | | 254 | | | | | | 255 | | | | | | 254 | | | | | | | | | | | | | | |
| | |
Three Months
Ended March 31, |
| |
For the year ended
December 31, |
| ||||||||||||||||||||||||
|
2024
|
| |
2023
|
| |
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||||
Number of occupational health centers – start of period
|
| | | | 544 | | | | | | 540 | | | | | | 540 | | | | | | 518 | | | | | | 517 | | |
Number of occupational health centers acquired
|
| | | | 2 | | | | | | — | | | | | | 4 | | | | | | 21 | | | | | | 7 | | |
Number of occupational health centers de novos
|
| | | | 1 | | | | | | — | | | | | | 3 | | | | | | 4 | | | | | | 1 | | |
Number of occupational health centers closed/sold
|
| | | | — | | | | | | (1) | | | | | | (3) | | | | | | (3) | | | | | | (7) | | |
Number of occupational health centers – end of period
|
| | | | 547 | | | | | | 539 | | | | | | 544 | | | | | | 540 | | | | | | 518 | | |
Number of onsite health clinics operated – end of period
|
| | | | 151 | | | | | | 140 | | | | | | 150 | | | | | | 147 | | | | | | 134 | | |
(in thousands)
|
| |
Three Months Ended March 31,
|
| |||||||||||||||||||||
|
2024
|
| |
2023
|
| ||||||||||||||||||||
|
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||
Revenue
|
| | | $ | 467,598 | | | | | | 100.0% | | | | | $ | 456,298 | | | | | | 100.0% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services, exclusive of depreciation and amortization
|
| | | | 336,990 | | | | | | 72.1 | | | | | | 328,078 | | | | | | 71.9 | | |
General and administrative, exclusive of depreciation and amortization
|
| | | | 36,909 | | | | | | 7.9 | | | | | | 34,650 | | | | | | 7.6 | | |
Depreciation and amortization
|
| | | | 18,485 | | | | | | 4.0 | | | | | | 18,310 | | | | | | 4.0 | | |
Total costs and expenses
|
| | | | 392,384 | | | | | | 84.0 | | | | | | 381,038 | | | | | | 83.5 | | |
Other operating income
|
| | | | 284 | | | | | | 0.1 | | | | | | — | | | | | | — | | |
Income from operations
|
| | | | 75,498 | | | | | | 16.1 | | | | | | 75,260 | | | | | | 16.5 | | |
Other income and expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity in losses of unconsolidated subsidiaries
|
| | | | — | | | | | | — | | | | | | (526) | | | | | | (0.1) | | |
Interest expense on related party debt
|
| | | | (9,971) | | | | | | (2.1) | | | | | | (11,076) | | | | | | (2.4) | | |
Interest expense
|
| | | | (111) | | | | | | — | | | | | | (61) | | | | | | — | | |
Income before income taxes
|
| | | | 65,416 | | | | | | 14.0 | | | | | | 63,597 | | | | | | 13.9 | | |
Income tax expense
|
| | | | 15,137 | | | | | | 3.2 | | | | | | 16,166 | | | | | | 3.5 | | |
Net income
|
| | | | 50,279 | | | | | | 10.8 | | | | | | 47,431 | | | | | | 10.4 | | |
Less: Net income attributable to non-controlling interests
|
| | | | 1,323 | | | | | | 0.3 | | | | | | 1,167 | | | | | | 0.3 | | |
Net income attributable to the Company
|
| | | | 48,956 | | | | | | 10.5% | | | | | | 46,264 | | | | | | 10.1% | | |
(in thousands)
|
| |
For the year ended December 31,
|
| |||||||||||||||||||||||||||||||||
|
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||||||||||||||||
|
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||||
Revenue
|
| | | $ | 1,838,081 | | | | | | 100.0% | | | | | $ | 1,724,359 | | | | | | 100.0% | | | | | $ | 1,732,041 | | | | | | 100.0% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services, exclusive of depreciation and amortization
|
| | | | 1,325,649 | | | | | | 72.1 | | | | | | 1,242,499 | | | | | | 72.1 | | | | | | 1,221,854 | | | | | | 70.5 | | |
General and administrative, exclusive of
depreciation and amortization |
| | | | 151,999 | | | | | | 8.3 | | | | | | 149,976 | | | | | | 8.7 | | | | | | 157,712 | | | | | | 9.1 | | |
Depreciation and amortization
|
| | | | 73,051 | | | | | | 4.0 | | | | | | 73,667 | | | | | | 4.3 | | | | | | 82,210 | | | | | | 4.7 | | |
Total costs and expenses
|
| | | | 1,550,699 | | | | | | 84.4 | | | | | | 1,466,142 | | | | | | 85.0 | | | | | | 1,461,776 | | | | | | 84.4 | | |
Other operating income
|
| | | | 250 | | | | | | 0.0 | | | | | | 312 | | | | | | 0.0 | | | | | | 34,999 | | | | | | 2.0 | | |
Income from operations
|
| | | | 287,632 | | | | | | 15.6 | | | | | | 258,529 | | | | | | 15.0 | | | | | | 305,264 | | | | | | 17.6 | | |
Other income and expenses: | | | | | | | | ||||||||||||||||||||||||||||||
Equity in losses of unconsolidated subsidiaries
|
| | | | (526) | | | | | | 0.0 | | | | | | (1,577) | | | | | | (0.1) | | | | | | — | | | | | | — | | |
Gain on sale of business
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,155 | | | | | | 0.1 | | |
Interest expense on related party debt
|
| | | | (44,253) | | | | | | (2.4) | | | | | | (30,792) | | | | | | (1.8) | | | | | | (29,473) | | | | | | (1.7) | | |
Interest expense
|
| | | | (221) | | | | | | 0.0 | | | | | | (849) | | | | | | 0.0 | | | | | | (2,383) | | | | | | (0.1) | | |
Other expense
|
| | | | (2) | | | | | | 0.0 | | | | | | (415) | | | | | | 0.0 | | | | | | — | | | | | | — | | |
Income before income taxes
|
| | | | 242,630 | | | | | | 13.2 | | | | | | 224,896 | | | | | | 13.0 | | | | | | 275,563 | | | | | | 15.9 | | |
Income tax expense
|
| | | | 57,887 | | | | | | 3.1 | | | | | | 52,653 | | | | | | 3.1 | | | | | | 59,527 | | | | | | 3.4 | | |
Net income
|
| | | | 184,743 | | | | | | 10.1 | | | | | | 172,243 | | | | | | 10.0 | | | | | | 216,036 | | | | | | 12.5 | | |
Less: Net income attributable to non-controlling interests
|
| | | | 4,796 | | | | | | 0.3 | | | | | | 5,516 | | | | | | 0.3 | | | | | | 7,161 | | | | | | 0.4 | | |
Net income attributable to the
Company |
| | | $ | 179,947 | | | | | | 9.8% | | | | | $ | 166,727 | | | | | | 9.7% | | | | | $ | 208,875 | | | | | | 12.1% | | |
| | |
Three Months Ended
March 31, |
| |
For the year ended December 31,
|
| ||||||||||||||||||||||||
(Dollars in thousands)
|
| |
2024
|
| |
2023
|
| |
2023
|
| |
2022
|
| |
2021
|
| |||||||||||||||
Reconciliation of Adjusted EBITDA and COVID-adjusted
EBITDA |
| | | | | | |||||||||||||||||||||||||
Net income
|
| | | $ | 50,279 | | | | | $ | 47,431 | | | | | $ | 184,743 | | | | | $ | 172,243 | | | | | $ | 216,036 | | |
Income tax expense
|
| | | | 15,137 | | | | | | 16,166 | | | | | | 57,887 | | | | | | 52,653 | | | | | | 59,527 | | |
Interest expense
|
| | | | 111 | | | | | | 61 | | | | | | 221 | | | | | | 849 | | | | | | 2,383 | | |
Interest expense on related party debt
|
| | | | 9,971 | | | | | | 11,076 | | | | | | 44,253 | | | | | | 30,792 | | | | | | 29,473 | | |
Loss (gain) on sale of businesses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,155) | | |
Equity in losses of unconsolidated subsidiaries
|
| | | | — | | | | | | 526 | | | | | | 526 | | | | | | 1,577 | | | | | | — | | |
Other expense
|
| | | | — | | | | | | — | | | | | | 2 | | | | | | 415 | | | | | | — | | |
Stock compensation expense
|
| | | | 166 | | | | | | 178 | | | | | | 651 | | | | | | 2,141 | | | | | | 2,142 | | |
Depreciation and amortization
|
| | | | 18,485 | | | | | | 18,310 | | | | | | 73,051 | | | | | | 73,667 | | | | | | 82,210 | | |
Separation transaction costs(a)
|
| | | | 1,993 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 96,142 | | | | | $ | 93,748 | | | | | $ | 361,334 | | | | | $ | 334,337 | | | | | $ | 389,616 | | |
Other non-recurring income directly attributable
to COVID-19(a) |
| | | | — | | | | | | — | | | | | | — | | | | | | (477) | | | | | | (74,647) | | |
COVID-adjusted EBITDA
|
| | | $ | 96,142 | | | | | $ | 93,748 | | | | | $ | 361,334 | | | | | $ | 333,860 | | | | | $ | 314,969 | | |
Adjusted EBITDA margin
|
| | | | 20.6% | | | | | | 20.5% | | | | | | 19.7% | | | | | | 19.4% | | | | | | 22.5% | | |
Net income margin
|
| | | | 10.8% | | | | | | 10.4% | | | | | | 10.1% | | | | | | 10.0% | | | | | | 12.5% | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net cash provided by operating activities
|
| | | $ | 44,622 | | | | | $ | 17,695 | | |
Net cash used in investing activities
|
| | | | (22,352) | | | | | | (14,396) | | |
Net cash used in financing activities
|
| | | | (4,092) | | | | | | (15,997) | | |
Net increase (decrease) in cash
|
| | | | 18,178 | | | | | | (12,698) | | |
Cash at beginning of period
|
| | | | 31,374 | | | | | | 37,657 | | |
Cash at end of period
|
| | | $ | 49,552 | | | | | $ | 24,959 | | |
| | |
For the year ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
Net cash flows provided by operating activities
|
| | | $ | 234,316 | | | | | $ | 274,337 | | | | | $ | 290,638 | | |
Net cash flows used in investing activities
|
| | | | (75,308) | | | | | | (57,750) | | | | | | (61,798) | | |
Net cash flows used in financing activities
|
| | | | (165,291) | | | | | | (209,858) | | | | | | (342,589) | | |
Net increase (decrease) in cash
|
| | | | (6,283) | | | | | | 6,729 | | | | | | (113,749) | | |
Cash at beginning of period
|
| | | | 37,657 | | | | | | 30,928 | | | | | | 144,677 | | |
Cash at end of period
|
| | | $ | 31,374 | | | | | $ | 37,657 | | | | | $ | 30,928 | | |
| | |
|
| |
|
| |
|
|
| | |
Occupational Health
Centers |
| |
Onsite Health
Clinics |
| |
Other
Businesses |
|
Description | | |
Network of centers offering occupational health and other services to a large number of employer customers
|
| |
Clinics dedicated to a single employer’s worksite offering occupational health, advanced primary care, and other services
|
| |
Telemedicine, pharmacy repackaging operations, peer review, and third-party employer services administration
|
|
# of Facilities | | |
547
|
| |
151
|
| |
N/A
|
|
Types of Employer Customers | | |
All types of employers, from Fortune 500 to small businesses
|
| |
Medium to large-sized employers
|
| |
All types of employers
|
|
Service Lines Offered | | |
All segments offer Workers’ Compensation, Employer Services and Consumer Health
|
|
Injury Care
|
| ||||||
•
Abrasions
•
Allergic reactions
•
Back injuries
•
Bites
•
Broken bones
|
| |
•
Cumulative trauma
•
Eye injuries
•
Heat-related disorders/exposure
•
Injuries from falls or lifting
•
Burns
|
| |
•
Joint injuries
•
Lacerations
•
Rashes
•
Skin conditions
•
Musculoskeletal disorders
|
|
Physical Therapy
|
| ||||||
•
Functional job analyses
•
Ergonomic assessments
•
Work conditioning
•
Injury and illness assessment and first aid management
|
| |
•
Preventive musculoskeletal screening
•
Body mechanics training
•
Employee education
|
| |
•
Post-offer, pre-placement functional testing
•
Occupational and hand therapy services
|
|
Exams and Evaluations
|
| ||||||
•
Pre-placement and post-offer physical exams
•
Fitness for duty exams
•
Return-to-work exams
•
Medical surveillance exams
|
| |
•
DOT physical exams
•
National Fire Protection Association and International Association of Fire Fighters exams
|
| |
•
Law enforcement officer physical exams
•
ADA-compliant ADApt® exams, job site evaluations
•
Human performance evaluations
|
|
Tests and Screenings
|
| ||||||
•
DOT-compliant urine drug screens
•
Breath alcohol testing
•
Hair sample testing
•
Rapid urine drug screens
|
| |
•
Audiometric screening
•
EKGs
•
Pulmonary function testing
•
Vision testing
•
Vitals
|
| |
•
X-rays
•
Infectious disease screenings
•
Bloodborne pathogen exposure screenings
|
|
Other
|
| ||||||
•
Vaccinations/immunizations
|
| |
•
Athletic training
|
| |
•
Specialist care
|
|
Clinical Areas
|
| ||||||
•
Procedure rooms (for minor procedures)
•
8 – 12 examination rooms
•
Lab area — separate restrooms (ADA-compliant) for drug and alcohol collections
•
Breath analysis/exam room — to maximize privacy for federally mandated testing
|
| |
•
Audio testing room — a single-person booth
•
Physician’s office
•
Physician station — with X-ray viewing areas and privacy to enter patient data into our computer system
•
X-ray facilities — a full-service X-ray room and digital file storage
|
| |
•
Storage area — for patient charts
•
Physical therapy area, treatment areas, strength and flexibility equipment, hydro collator/freezer, and a wide variety of therapy modalities
•
Onsite specialty care
|
|
Support/Common Areas
|
| ||||||
•
Waiting room — seating for patients with a television
•
Business office — work area for clerical staff
|
| |
•
Manager office
•
Break room
•
Sales office
|
| |
•
Restroom
•
Records storage area
•
Telephone/electrical area
|
|
Onsite Health Clinic Services
|
| ||||||
•
Occupational health services
•
Injury care
•
Primary care
•
Urgent care
|
| |
•
Preventive care
•
Physical therapy
•
Athletic training services
•
Episodic services
•
Health and wellness services
|
| |
•
First aid
•
After-hours nurse triage
•
Telemedicine (occupational)
•
Pharmacy — concierge/ limited formulary (where allowed)
|
|
|
1.
State and Local Government (4.9)
2.
Transportation & Warehousing (4.8)
3.
Educational and Health Services (4.2)
4.
Agriculture, Forestry, Fishing & Hunting (4.1)
5.
Retail Trade (3.7)
|
| |
6.
Manufacturing (3.2)
7.
Leisure, Entertainment and Hospitality (2.9)
8.
Wholesale Trade (2.6)
9.
Construction (2.4)
10.
Other Services (1.8)
|
|
| | |
Company
Occupational Health Centers |
| |||
Alaska
|
| | | | 1 | | |
Arizona
|
| | | | 16 | | |
Arkansas
|
| | | | 2 | | |
California
|
| | | | 101 | | |
Colorado
|
| | | | 26 | | |
Connecticut
|
| | | | 10 | | |
Delaware
|
| | | | 3 | | |
Florida
|
| | | | 32 | | |
Georgia
|
| | | | 15 | | |
Hawaii
|
| | | | 1 | | |
Illinois
|
| | | | 17 | | |
Indiana
|
| | | | 14 | | |
Iowa
|
| | | | 3 | | |
Kansas
|
| | | | 4 | | |
Kentucky
|
| | | | 8 | | |
Louisiana
|
| | | | 3 | | |
Maine
|
| | | | 7 | | |
Maryland
|
| | | | 13 | | |
Massachusetts
|
| | | | 2 | | |
Michigan
|
| | | | 19 | | |
Minnesota
|
| | | | 6 | | |
Missouri
|
| | | | 15 | | |
Nebraska
|
| | | | 3 | | |
| | |
Company
Occupational Health Centers |
| |||
Nevada
|
| | | | 7 | | |
New Hampshire
|
| | | | 3 | | |
New Jersey
|
| | | | 24 | | |
New Mexico
|
| | | | 4 | | |
North Carolina
|
| | | | 8 | | |
Ohio
|
| | | | 18 | | |
Oklahoma
|
| | | | 8 | | |
Oregon
|
| | | | 4 | | |
Pennsylvania
|
| | | | 32 | | |
Rhode Island
|
| | | | 2 | | |
South Carolina
|
| | | | 5 | | |
Tennessee
|
| | | | 9 | | |
Texas
|
| | | | 53 | | |
Utah
|
| | | | 6 | | |
Vermont
|
| | | | 2 | | |
Virginia
|
| | | | 11 | | |
Washington
|
| | | | 16 | | |
Wisconsin
|
| | | | 14 | | |
Total Company
|
| | | | 547 | | |
Name
|
| |
Age
|
| |
Position
|
|
William K. Newton | | | 61 | | | Chief Executive Officer | |
Matthew T. DiCanio | | | 41 | | | President & Chief Financial Officer | |
John R. Anderson | | | 74 | | | Executive Vice President, Chief Medical Officer | |
Giovanni Gallara | | | 49 | | | Executive Vice President, Chief Clinical Services Officer | |
John A deLorimier | | | 65 | | | Executive Vice President, Chief Digital & Data Officer | |
Michael A. Kosuth | | | 66 | | | Executive Vice President, Chief Operating Officer – East | |
Douglas R. McAndrew | | | 54 | | | Executive Vice President, Chief Operating Officer – West | |
Su Zan Nelson | | | 61 | | | Executive Vice President, Chief Accounting Officer | |
Jonathan P. Conser | | | 53 | | | Executive Vice President, Chief Growth & Customer Officer | |
Thomas A. Devasia | | | 54 | | | Executive Vice President, Chief Marketing and Innovation Officer | |
Greg M. Gilbert | | | 61 | | | Executive Vice President, Chief Reimbursement & Government Relations Officer | |
Michael D. Rhine | | | 46 | | | Executive Vice President, Chief Operating Officer Onsite Health & Telemedicine | |
Danielle Kendall | | | 56 | | | Senior Vice President, Human Resources | |
Name
|
| |
Age
|
| |
Position
|
|
Robert A. Ortenzio | | | 67 | | | Director, Chair | |
Daniel J. Thomas | | | 65 | | | Director | |
William Keith Newton | | | 61 | | | Director | |
Marc R. Watkins, MD | | | 54 | | | Director Nominee | |
Cheryl Pegus, MD, MPH | | | 60 | | | Director Nominee | |
Name of Executive
|
| |
Title
|
|
William K. Newton | | | Chief Executive Officer | |
Matthew T. DiCanio(1) | | | President & Chief Financial Officer | |
John A. deLorimier | | | Executive Vice President, Chief Digital & Data Officer | |
Giovanni Gallara | | | Executive Vice President, Chief Clinical Services Officer | |
Su Zan Nelson(1) | | | Executive Vice President, Chief Accounting Officer | |
Name of Executive
|
| |
Shares of Restricted
Stock Granted |
| |||
William K. Newton
|
| | | | 33,422 | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards ($)(1) |
| |
Non-Equity
Incentive Plan Compensation ($)(2) |
| |
All Other
Compensation ($)(3) |
| |
Total
($) |
| |||||||||||||||||||||
William K. Newton
Chief Executive Officer |
| | | | 2023 | | | | | | 700,000 | | | | | | — | | | | | | 999,986 | | | | | | 1,670,550 | | | | | | 3,661,491 | | | | | | 7,032,027 | | |
| | | 2022 | | | | | | 698,077 | | | | | | — | | | | | | 1,000,009 | | | | | | 2,331,000 | | | | | | 3,394,185 | | | | | | 7,423,271 | | | ||
| | | 2021 | | | | | | 650,000 | | | | | | 800,000 | | | | | | — | | | | | | 2,275,000 | | | | | | 22,588,327(4) | | | | | | 26,313,327 | | | ||
Matthew T. DiCanio
President & Chief Financial Officer |
| | | | 2023 | | | | | | 495,192 | | | | | | — | | | | | | — | | | | | | 645,000 | | | | | | 496,219 | | | | | | 1,636,411 | | |
| | | 2022 | | | | | | 362,500 | | | | | | — | | | | | | — | | | | | | 506,250 | | | | | | 462,256 | | | | | | 1,331,006 | | | ||
| | | 2021 | | | | | | 341,732 | | | | | | 100,000 | | | | | | — | | | | | | 1,235,000 | | | | | | 2,228,308 | | | | | | 3,905,040 | | | ||
John A. deLorimier
EVP, Chief Digital & Data Officer |
| | | | 2023 | | | | | | 450,000 | | | | | | — | | | | | | — | | | | | | 435.375 | | | | | | 495,395 | | | | | | 1,380,770 | | |
| | | 2022 | | | | | | 450,000 | | | | | | — | | | | | | — | | | | | | 607,500 | | | | | | 461,012 | | | | | | 1,518,512 | | | ||
| | | 2021 | | | | | | 436,846 | | | | | | 100,000 | | | | | | — | | | | | | 1,181,250 | | | | | | 2,229,758 | | | | | | 3,947,854 | | | ||
Giovanni Gallara
EVP & Chief Clinical Services Officer |
| | | | 2023 | | | | | | 374,039 | | | | | | — | | | | | | — | | | | | | 362,813 | | | | | | 638,514 | | | | | | 1,375,366 | | |
| | | 2022 | | | | | | 350,000 | | | | | | — | | | | | | — | | | | | | 472,500 | | | | | | 593,950 | | | | | | 1,416,450 | | | ||
| | | 2021 | | | | | | 341,731 | | | | | | 100,000 | | | | | | — | | | | | | 1,135,000 | | | | | | 1,746,633 | | | | | | 3,323,364 | | | ||
Su Zan Nelson
EVP, Chief Accounting Officer |
| | | | 2023 | | | | | | 374,039 | | | | | | — | | | | | | — | | | | | | 362,813 | | | | | | 506,674 | | | | | | 1,243,526 | | |
| | | 2022 | | | | | | 350,000 | | | | | | — | | | | | | — | | | | | | 472,500 | | | | | | 471,230 | | | | | | 1,293,730 | | | ||
| | | 2021 | | | | | | 342,041 | | | | | | 100,000 | | | | | | — | | | | | | 1,235,000 | | | | | | 1,772,067 | | | | | | 3,449,108 | | |
Named Executive Officer
|
| |
Year
|
| |
401(k)
Matching Contributions ($) |
| |
Class C
Interest Buyback ($)(5) |
| |
Dividends
Paid on Unvested Shares of Restricted Stock ($) |
| |
Total
($) |
| |||||||||||||||
William K. Newton
|
| | | | 2023 | | | | | | 4,846 | | | | | | 3,631,460 | | | | | | 25,185 | | | | | | 3,661,491 | | |
Matthew T. DiCanio
|
| | | | 2023 | | | | | | 4,949 | | | | | | 491,270 | | | | | | — | | | | | | 496,219 | | |
John A. deLorimier
|
| | | | 2023 | | | | | | 4,125 | | | | | | 491,270 | | | | | | — | | | | | | 495,395 | | |
Giovanni Gallara
|
| | | | 2023 | | | | | | 4,834 | | | | | | 633,680 | | | | | | — | | | | | | 638,514 | | |
Su Zan Nelson
|
| | | | 2023 | | | | | | 4,834 | | | | | | 501,840 | | | | | | — | | | | | | 506,674 | | |
Name
|
| |
Grant Date
|
| |
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards |
| |
All Other
Stock Awards: Number of Shares of Stock (#)(2) |
| |
Grant Date
Fair Value of Stock and Option Awards ($)(3) |
| ||||||||||||||||||||||||||||||
|
Bonus
Units (#)(1) |
| |
Threshold
($) |
| |
Target ($)
|
| |
Maximum
($) |
| ||||||||||||||||||||||||||||||||
William K. Newton | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2020 Equity Plan
|
| | | | 08/01/2023 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 33,422 | | | | | | 999,986 | | |
Concentra Leadership Team Incentive Plan(4)
|
| | | | 05/05/2023 | | | | | | — | | | | | | 647,500 | | | | | | 1,295,000 | | | | | | 1,670,550 | | | | | | — | | | | | | — | | |
Concentra Executive Leadership Team LTIP
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Matthew T. DiCanio | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Concentra Leadership Team Incentive Plan(4)
|
| | | | 05/05/2023 | | | | | | — | | | | | | 250,000 | | | | | | 500,000 | | | | | | 645,000 | | | | | | — | | | | | | — | | |
Concentra Executive Leadership Team LTIP
|
| | | | 02/27/2023 | | | | | | 70,419 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
John A. deLorimier | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Concentra Leadership Team Incentive Plan(4)
|
| | | | 05/05/2023 | | | | | | — | | | | | | 168,750 | | | | | | 337,500 | | | | | | 435,375 | | | | | | — | | | | | | — | | |
Concentra Executive Leadership Team LTIP
|
| | | | 02/27/2023 | | | | | | 42,251 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Giovanni Gallara | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Concentra Leadership Team Incentive Plan(4)
|
| | | | 05/05/2023 | | | | | | — | | | | | | 140,625 | | | | | | 281,250 | | | | | | 362,813 | | | | | | — | | | | | | — | | |
Concentra Executive Leadership Team LTIP
|
| | | | 02/27/2023 | | | | | | 42,251 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Su Zan Nelson | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Concentra Leadership Team Incentive Plan(4)
|
| | | | 05/05/2023 | | | | | | — | | | | | | 140,625 | | | | | | 281,250 | | | | | | 362,813 | | | | | | — | | | | | | — | | |
Concentra Executive Leadership Team LTIP
|
| | | | 02/27/2023 | | | | | | 38,730 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Grant Date
|
| |
Stock Awards(1)
|
| ||||||||||||
|
Number of
Shares That Have Not Vested (#) |
| |
Market Value of
Shares That Have Not Vested ($)(4) |
| ||||||||||||||
William K. Newton
|
| | | | 08/01/2023 | | | | | | 33,422(2) | | | | | | 785,417 | | |
| | | | | 08/01/2022 | | | | | | 33,659(3) | | | | | | 790,987 | | |
| | |
Without Cause/Without Due Cause
|
| |
For Good Reason(1)
|
| |
Death
|
| |
Disability
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Base
Salary ($) |
| |
Bonus
($)(2) |
| |
Pro-Rata
Bonus ($)(3) |
| |
Equity
Pro- Rata Vesting Value ($)(4) |
| |
Base
Salary ($) |
| |
Bonus
($)(2) |
| |
Pro-Rata
Bonus ($)(3) |
| |
Equity
Pro- Rata Vesting Value ($) |
| |
Bonus
($)(2) |
| |
Equity
Pro- Rata Vesting Value ($)(4) |
| |
Bonus
($)(2) |
| |
Equity
Pro- Rata Vesting Value ($)(4) |
| ||||||||||||||||||||||||||||||||||||
William K. Newton
|
| | | | 1,400,000 | | | | | | 1,670,550 | | | | | | 1,670,550 | | | | | | 481,727 | | | | | | 1,400,000 | | | | | | 1,670,550 | | | | | | 1,670,550 | | | | | | 481,727 | | | | | | 1,670,550 | | | | | | 481,727 | | | | | | 1,670,550 | | | | | | 481,727 | | |
Matthew T. DiCanio
|
| | | | 375,000 | | | | | | 645,000 | | | | | | — | | | | | | — | | | | | | 375,000 | | | | | | 645,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
John A. deLorimier
|
| | | | 337,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Giovanni Gallara
|
| | | | 312,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | 312,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Su Zan Nelson
|
| | | | 281,250 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name of Beneficial Owner
|
| |
Shares of our common
stock beneficially owned prior to the completion of this offering |
| |
Shares of our common
stock beneficially owned following the completion of this offering (assuming no exercise of the underwriters’ option to purchase additional shares of our common stock from us) |
| |
Shares of our common
stock beneficially owned following the completion of this offering (assuming full exercise of the underwriters’ option to purchase additional shares of our common stock from us) |
| |||||||||||||||||||||||||||
|
Number
|
| |
%
|
| |
Number
|
| |
%
|
| |
Number
|
| |
%
|
| ||||||||||||||||||||
Select Medical Corporation(1)
|
| | | | 104,093,503 | | | | | | 100% | | | | | | 104,093,503 | | | | | | 82.23% | | | | | | 104,093,503 | | | | | | 80.09% | | |
William K. Newton
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
Matthew T. DiCanio
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
John A deLorimier
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
Giovanni Gallara
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
Su Zan Nelson
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
Robert A. Ortenzio
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
Daniel J. Thomas
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
All Directors and Executive Officers
as a Group (persons) |
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | |
Name
|
| |
Number of
Shares |
| |||
J.P. Morgan Securities LLC
|
| | | | | | |
Goldman Sachs & Co. LLC
|
| |
|
| |||
BofA Securities, Inc.
|
| | | | | | |
Deutsche Bank Securities Inc.
|
| | | | | | |
Wells Fargo Securities, LLC
|
| | | | | | |
Mizuho Securities USA LLC
|
| | | | | | |
RBC Capital Markets, LLC
|
| | | | | | |
Truist Securities, Inc.
|
| | | | | | |
Capital One Securities, Inc.
|
| | | | | | |
Fifth Third Securities, Inc.
|
| | | | | | |
PNC Capital Markets LLC
|
| | | | | | |
Total
|
| | | | 22,500,000 | | |
| | |
Without option to
purchase additional shares exercise |
| |
With full
option to purchase additional shares exercise |
| ||||||
Per Share
|
| | | $ | | | | | $ | | | ||
Total
|
| | | $ | | | | | $ | | | |
| | | | | F-2 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-31 | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 31,374 | | | | | $ | 37,657 | | |
Accounts receivable
|
| | | | 216,194 | | | | | | 206,259 | | |
Prepaid income taxes
|
| | | | 7,979 | | | | | | 6,684 | | |
Other current assets
|
| | | | 38,871 | | | | | | 34,027 | | |
Total Current Assets
|
| | | | 294,418 | | | | | | 284,627 | | |
Operating lease right-of-use assets
|
| | | | 397,852 | | | | | | 375,051 | | |
Property and equipment, net
|
| | | | 178,370 | | | | | | 158,875 | | |
Goodwill
|
| | | | 1,229,745 | | | | | | 1,225,871 | | |
Customer relationships
|
| | | | 117,259 | | | | | | 140,014 | | |
Other identifiable intangible assets, net
|
| | | | 107,510 | | | | | | 107,561 | | |
Other assets
|
| | | | 8,406 | | | | | | 5,236 | | |
Total Assets
|
| | | $ | 2,333,560 | | | | | $ | 2,297,235 | | |
LIABILITIES AND EQUITY
|
| | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Current operating lease liabilities
|
| | | $ | 72,946 | | | | | $ | 71,299 | | |
Current portion of long-term debt and notes payable
|
| | | | 1,455 | | | | | | 1,667 | | |
Accounts payable
|
| | | | 20,413 | | | | | | 27,670 | | |
Due to related party
|
| | | | 3,354 | | | | | | 9,016 | | |
Accrued and other liabilities
|
| | | | 176,466 | | | | | | 169,974 | | |
Total Current Liabilities
|
| | | | 274,634 | | | | | | 279,626 | | |
Non-current operating lease liabilities
|
| | | | 357,310 | | | | | | 332,769 | | |
Long-term debt, net of current portion
|
| | | | 3,291 | | | | | | 3,911 | | |
Long-term debt with related party
|
| | | | 470,000 | | | | | | 630,000 | | |
Non-current deferred tax liability
|
| | | | 23,364 | | | | | | 29,796 | | |
Other non-current liabilities
|
| | | | 27,522 | | | | | | 25,018 | | |
Total Liabilities
|
| | | | 1,156,121 | | | | | | 1,301,120 | | |
Commitments and contingencies (Note 18) | | | | | | | | | | | | | |
Redeemable non-controlling interests
|
| | | | 16,477 | | | | | | 16,772 | | |
Contributed capital
|
| | | | 470,303 | | | | | | 464,725 | | |
Retained earnings
|
| | | | 685,293 | | | | | | 508,592 | | |
Total Members’ Equity
|
| | | | 1,155,596 | | | | | | 973,317 | | |
Non-controlling interests
|
| | | | 5,366 | | | | | | 6,026 | | |
Total Equity
|
| | | | 1,160,962 | | | | | | 979,343 | | |
Total Liabilities and Equity
|
| | | $ | 2,333,560 | | | | | $ | 2,297,235 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
Revenue
|
| | | $ | 1,838,081 | | | | | $ | 1,724,359 | | | | | $ | 1,732,041 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Cost of services, exclusive of depreciation and amortization
|
| | | | 1,325,649 | | | | | | 1,242,499 | | | | | | 1,221,854 | | |
General and administrative, exclusive of depreciation and amortization(1)
|
| | | | 151,999 | | | | | | 149,976 | | | | | | 157,712 | | |
Depreciation and amortization
|
| | | | 73,051 | | | | | | 73,667 | | | | | | 82,210 | | |
Total costs and expenses
|
| | | | 1,550,699 | | | | | | 1,466,142 | | | | | | 1,461,776 | | |
Other operating income
|
| | | | 250 | | | | | | 312 | | | | | | 34,999 | | |
Income from operations
|
| | | | 287,632 | | | | | | 258,529 | | | | | | 305,264 | | |
Other income and expenses: | | | | | | | | | | | | | | | | | | | |
Equity in losses of unconsolidated subsidiaries
|
| | | | (526) | | | | | | (1,577) | | | | | | — | | |
Gain on sale of business
|
| | | | — | | | | | | — | | | | | | 2,155 | | |
Interest expense on related party debt
|
| | | | (44,253) | | | | | | (30,792) | | | | | | (29,473) | | |
Interest expense
|
| | | | (221) | | | | | | (849) | | | | | | (2,383) | | |
Other expense
|
| | | | (2) | | | | | | (415) | | | | | | — | | |
Income before income taxes
|
| | | | 242,630 | | | | | | 224,896 | | | | | | 275,563 | | |
Income tax expense
|
| | | | 57,887 | | | | | | 52,653 | | | | | | 59,527 | | |
Net income
|
| | | | 184,743 | | | | | | 172,243 | | | | | | 216,036 | | |
Less: Net income attributable to non-controlling interests
|
| | | | 4,796 | | | | | | 5,516 | | | | | | 7,161 | | |
Net income attributable to the Company
|
| | | $ | 179,947 | | | | | $ | 166,727 | | | | | $ | 208,875 | | |
Earnings per share (Note 15): | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | 1.73 | | | | | $ | 1.60 | | | | | $ | 1.99 | | |
| | |
Redeemable
Non- controlling Interests |
| | |
Contributed
Capital |
| |
Retained
Earnings |
| |
Total
Members’ Equity |
| |
Non-
controlling Interests |
| |
Total
Equity |
| ||||||||||||||||||
Balance at December 31, 2020
|
| | | $ | 18,577 | | | | | | $ | 469,056 | | | | | $ | 148,569 | | | | | $ | 617,625 | | | | | $ | 6,231 | | | | | $ | 623,856 | | |
Net income attributable to the Company
|
| | | | | | | | | | | | | | | | | 208,875 | | | | | | 208,875 | | | | | | | | | | | | 208,875 | | |
Net income attributable to non-controlling interests
|
| | | | 3,834 | | | | | | | | | | | | | | | | | | | — | | | | | | 3,327 | | | | | | 3,327 | | |
Contribution from Parent
|
| | | | | | | | | | | 4,291 | | | | | | | | | | | | 4,291 | | | | | | | | | | | | 4,291 | | |
Vesting of restricted interests and options
|
| | | | | | | | | | | 2,142 | | | | | | | | | | | | 2,142 | | | | | | | | | | | | 2,142 | | |
Yield on Class A Additional Capital
|
| | | | | | | | | | | 1,035 | | | | | | | | | | | | 1,035 | | | | | | | | | | | | 1,035 | | |
Exercise of stock options
|
| | | | | | | | | | | 10,129 | | | | | | | | | | | | 10,129 | | | | | | | | | | | | 10,129 | | |
Repurchase of member interests
|
| | | | | | | | | | | (7,961) | | | | | | (15,440) | | | | | | (23,401) | | | | | | | | | | | | (23,401) | | |
Distributions to and purchases of non-controlling interests
|
| | | | (3,578) | | | | | | | | | | | | | | | | | | | — | | | | | | (3,136) | | | | | | (3,136) | | |
Redemption value adjustments on non-controlling interests
|
| | | | (3,033) | | | | | | | | | | | | | 3,033 | | | | | | 3,033 | | | | | | | | | | | | 3,033 | | |
Balance at December 31, 2021
|
| | | $ | 15,800 | | | | | | $ | 478,692 | | | | | $ | 345,037 | | | | | $ | 823,729 | | | | | $ | 6,422 | | | | | $ | 830,151 | | |
Net income attributable to the Company
|
| | | | | | | | | | | | | | | | | 166,727 | | | | | | 166,727 | | | | | | | | | | | | 166,727 | | |
Net income attributable to non-controlling interests
|
| | | | 3,696 | | | | | | | | | | | | | | | | | | | — | | | | | | 1,820 | | | | | | 1,820 | | |
Contribution from Parent
|
| | | | | | | | | | | 6,823 | | | | | | | | | | | | 6,823 | | | | | | | | | | | | 6,823 | | |
Vesting of restricted interests and options
|
| | | | | | | | | | | 2,141 | | | | | | | | | | | | 2,141 | | | | | | | | | | | | 2,141 | | |
Yield on Class A Additional Capital
|
| | | | | | | | | | | 316 | | | | | | | | | | | | 316 | | | | | | | | | | | | 316 | | |
Repurchase of Class A Additional Capital
|
| | | | | | | | | | | (23,904) | | | | | | | | | | | | (23,904) | | | | | | | | | | | | (23,904) | | |
Exercise of stock options
|
| | | | | | | | | | | 3,340 | | | | | | | | | | | | 3,340 | | | | | | | | | | | | 3,340 | | |
Repurchase of member interests
|
| | | | | | | | | | | (2,697) | | | | | | (2,449) | | | | | | (5,146) | | | | | | | | | | | | (5,146) | | |
Issuance of non-controlling interests
|
| | | | | | | | | | | 14 | | | | | | | | | | | | 14 | | | | | | 626 | | | | | | 640 | | |
Distributions to and purchases of non-controlling interests
|
| | | | (3,447) | | | | | | | | | | | | | | | | | | | — | | | | | | (2,842) | | | | | | (2,842) | | |
Redemption value adjustments on non-controlling interests
|
| | | | 723 | | | | | | | | | | | | | (723) | | | | | | (723) | | | | | | | | | | | | (723) | | |
Balance at December 31, 2022
|
| | | $ | 16,772 | | | | | | $ | 464,725 | | | | | $ | 508,592 | | | | | $ | 973,317 | | | | | $ | 6,026 | | | | | $ | 979,343 | | |
Net income attributable to the Company
|
| | | | | | | | | | | | | | | | | 179,947 | | | | | | 179,947 | | | | | | | | | | | | 179,947 | | |
Net income attributable to non-controlling interests
|
| | | | 3,687 | | | | | | | | | | | | | | | | | | | — | | | | | | 1,109 | | | | | | 1,109 | | |
Contribution from Parent
|
| | | | | | | | | | | 4,515 | | | | | | | | | | | | 4,515 | | | | | | | | | | | | 4,515 | | |
Vesting of restricted interests and options
|
| | | | | | | | | | | 178 | | | | | | | | | | | | 178 | | | | | | | | | | | | 178 | | |
Exercise of stock options
|
| | | | | | | | | | | 3,340 | | | | | | | | | | | | 3,340 | | | | | | | | | | | | 3,340 | | |
Repurchase of member interests
|
| | | | | | | | | | | (2,650) | | | | | | (2,672) | | | | | | (5,322) | | | | | | | | | | | | (5,322) | | |
Distributions to and purchases of non-controlling interests
|
| | | | (4,556) | | | | | | | 195 | | | | | | | | | | | | 195 | | | | | | (1,769) | | | | | | (1,574) | | |
Redemption value adjustments on non-controlling interests
|
| | | | 574 | | | | | | | | | | | | | (574) | | | | | | (574) | | | | | | | | | | | | (574) | | |
Balance at December 31, 2023
|
| | | $ | 16,477 | | | | | | $ | 470,303 | | | | | $ | 685,293 | | | | | $ | 1,155,596 | | | | | $ | 5,366 | | | | | $ | 1,160,962 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 184,743 | | | | | $ | 172,243 | | | | | $ | 216,036 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 73,051 | | | | | | 73,667 | | | | | | 82,210 | | |
Provision for expected credit losses
|
| | | | 327 | | | | | | 273 | | | | | | 52 | | |
Equity in losses of unconsolidated subsidiaries
|
| | | | 526 | | | | | | 1,577 | | | | | | — | | |
Gain (loss) on sale of assets, businesses, and resolution of
contingencies |
| | | | 4 | | | | | | (1,158) | | | | | | (2,326) | | |
Stock compensation expense
|
| | | | 651 | | | | | | 2,141 | | | | | | 2,142 | | |
Amortization of debt discount and issuance costs
|
| | | | — | | | | | | — | | | | | | 98 | | |
Yield on Class A Additional Capital
|
| | | | — | | | | | | 316 | | | | | | 1,035 | | |
Deferred income taxes
|
| | | | (6,286) | | | | | | (8,639) | | | | | | (1,331) | | |
Changes in operating assets and liabilities, net of effects from business combinations:
|
| | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (10,262) | | | | | | (5,931) | | | | | | 12,519 | | |
Other current assets
|
| | | | (20,743) | | | | | | (2,875) | | | | | | 2,028 | | |
Other assets
|
| | | | 2,738 | | | | | | 8,921 | | | | | | (2,599) | | |
Accounts payable and accrued liabilities
|
| | | | 9,567 | | | | | | 33,802 | | | | | | (19,226) | | |
Net cash provided by operating activities
|
| | | | 234,316 | | | | | | 274,337 | | | | | | 290,638 | | |
Investing Activities: | | | | | | | | | | | | | | | | | | | |
Business combinations, net of cash acquired
|
| | | | (6,004) | | | | | | (9,702) | | | | | | (20,100) | | |
Acquired customer relationships
|
| | | | (4,382) | | | | | | — | | | | | | — | | |
Purchases of property and equipment
|
| | | | (64,958) | | | | | | (45,983) | | | | | | (46,787) | | |
Investment in businesses
|
| | | | — | | | | | | (2,103) | | | | | | — | | |
Proceeds from sale of assets and businesses
|
| | | | 36 | | | | | | 38 | | | | | | 5,089 | | |
Net cash used in investing activities
|
| | | | (75,308) | | | | | | (57,750) | | | | | | (61,798) | | |
Financing Activities: | | | | | | | | | | | | | | | | | | | |
Payments on related party term loan
|
| | | | — | | | | | | (31,552) | | | | | | (321,541) | | |
Payments on related party revolving promissory note
|
| | | | (160,000) | | | | | | (150,000) | | | | | | — | | |
Borrowings of other debt
|
| | | | 5,471 | | | | | | 4,265 | | | | | | — | | |
Principal payments on other debt
|
| | | | (7,165) | | | | | | (7,395) | | | | | | (5,353) | | |
Exercise of stock options
|
| | | | 3,340 | | | | | | 3,340 | | | | | | 10,129 | | |
Repurchases of member interests
|
| | | | (5,322) | | | | | | (5,146) | | | | | | (23,401) | | |
Repurchase of Class A Additional Capital
|
| | | | — | | | | | | (23,904) | | | | | | — | | |
Distributions to and purchases of non-controlling interests
|
| | | | (6,130) | | | | | | (6,289) | | | | | | (6,714) | | |
Contributions from Parent
|
| | | | 4,515 | | | | | | 6,823 | | | | | | 4,291 | | |
Net cash used in financing activities
|
| | | | (165,291) | | | | | | (209,858) | | | | | | (342,589) | | |
Net increase (decrease) in cash
|
| | | | (6,283) | | | | | | 6,729 | | | | | | (113,749) | | |
Cash at the beginning of the period
|
| | | | 37,657 | | | | | | 30,928 | | | | | | 144,677 | | |
Cash at the end of the period
|
| | | $ | 31,374 | | | | | $ | 37,657 | | | | | $ | 30,928 | | |
Supplemental Information: | | | | | | | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 44,348 | | | | | $ | 31,116 | | | | | $ | 30,071 | | |
Cash paid for taxes
|
| | | | 60,607 | | | | | | 42,169 | | | | | | 78,379 | | |
Non-Cash Investing and Financing Activities: | | | | | | | | | | | | | | | | | | | |
Liabilities for purchases of property and equipment
|
| | | $ | 5,136 | | | | | $ | 7,739 | | | | | $ | 5,043 | | |
|
Land improvements
|
| |
5 – 15 years
|
|
|
Leasehold improvements
|
| |
1 – 15 years
|
|
|
Buildings
|
| |
40 years
|
|
|
Building improvements
|
| |
5 – 40 years
|
|
|
Furniture and equipment
|
| |
1 – 20 years
|
|
|
Customer relationships
|
| |
5 – 15 years
|
|
|
Non-compete agreements
|
| |
5 years
|
|
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Operating lease cost
|
| | | $ | 97,640 | | | | | $ | 91,632 | | | | | $ | 89,158 | | |
Finance lease cost: | | | | | | | | | | | | | | | | | | | |
Amortization of right-of-use assets
|
| | | | 1,000 | | | | | | 916 | | | | | | 464 | | |
Interest on lease liabilities
|
| | | | 392 | | | | | | 426 | | | | | | 379 | | |
Variable lease cost
|
| | | | 19,834 | | | | | | 18,376 | | | | | | 16,911 | | |
Total lease cost
|
| | | $ | 118,866 | | | | | $ | 111,350 | | | | | $ | 106,912 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | | | | | | | |
Operating cash flows for operating leases
|
| | | $ | 96,854 | | | | | $ | 93,361 | | | | | $ | 90,511 | | |
Operating cash flows for finance leases
|
| | | | 358 | | | | | | 393 | | | | | | 379 | | |
Financing cash flows for finance leases
|
| | | | 917 | | | | | | 827 | | | | | | 436 | | |
Right-of-use assets obtained in exchange for lease liabilities: | | | | | | | | | | | | | | | | | | | |
Operating leases
|
| | | | 98,584 | | | | | | 106,229 | | | | | | 71,591 | | |
Finance leases
|
| | | | — | | | | | | 494 | | | | | | 436 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Operating Leases | | | | | | | | | |||||
Operating lease right-of-use assets
|
| | | $ | 397,852 | | | | | $ | 375,051 | | |
Current operating lease liabilities
|
| | | $ | 72,946 | | | | | $ | 71,299 | | |
Non-current operating lease liabilities
|
| | | | 357,310 | | | | | | 332,769 | | |
Total operating lease liabilities
|
| | | $ | 430,256 | | | | | $ | 404,068 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Finance Leases | | | | | | | | | |||||
Property and equipment, net
|
| | | $ | 2,112 | | | | | $ | 3,070 | | |
Current portion of long-term debt and notes payable
|
| | | $ | 620 | | | | | $ | 917 | | |
Long-term debt, net of current portion
|
| | | | 3,291 | | | | | | 3,911 | | |
Total finance lease liabilities
|
| | | $ | 3,911 | | | | | $ | 4,828 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
Weighted average remaining lease term (in years): | | | | | | | | | | | | | |
Operating leases
|
| | | | 6.6 | | | | | | 6.4 | | |
Finance leases
|
| | | | 7.9 | | | | | | 7.9 | | |
Weighted average discount rate: | | | | | | | | | | | | | |
Operating leases
|
| | | | 6.1% | | | | | | 5.8% | | |
Finance leases
|
| | | | 8.6% | | | | | | 8.3% | | |
| | |
Operating
Leases |
| |
Finance
Leases |
| ||||||
| | |
(in thousands)
|
| |||||||||
2024
|
| | | $ | 96,610 | | | | | $ | 927 | | |
2025
|
| | | | 87,874 | | | | | | 676 | | |
2026
|
| | | | 77,495 | | | | | | 593 | | |
2027
|
| | | | 65,496 | | | | | | 605 | | |
2028
|
| | | | 54,034 | | | | | | 617 | | |
Thereafter
|
| | | | 147,869 | | | | | | 2,110 | | |
Total undiscounted cash flows
|
| | | | 529,378 | | | | | | 5,528 | | |
Less: Imputed interest
|
| | | | 99,122 | | | | | | 1,617 | | |
Total discounted lease liabilities
|
| | | $ | 430,256 | | | | | $ | 3,911 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Land
|
| | | $ | 4,107 | | | | | $ | 4,106 | | |
Leasehold improvements
|
| | | | 286,145 | | | | | | 257,507 | | |
Buildings
|
| | | | 12,925 | | | | | | 12,795 | | |
Furniture and equipment
|
| | | | 230,040 | | | | | | 208,217 | | |
Construction-in-progress
|
| | | | 17,228 | | | | | | 11,690 | | |
Total property and equipment
|
| | | $ | 550,445 | | | | | $ | 494,315 | | |
Accumulated depreciation
|
| | | | (372,075) | | | | | | (335,440) | | |
Property and equipment, net
|
| | | $ | 178,370 | | | | | $ | 158,875 | | |
| | |
Centers
|
| |
Onsites
|
| |
Other Businesses
|
| |
Total
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Balance at January 1, 2022
|
| | | $ | 1,133,318 | | | | | | 50,940 | | | | | | 36,934 | | | | | $ | 1,221,192 | | |
Acquisition of businesses
|
| | | | 4,679 | | | | | | — | | | | | | — | | | | | | 4,679 | | |
Balance at December 31, 2022
|
| | | $ | 1,137,997 | | | | | $ | 50,940 | | | | | $ | 36,934 | | | | | $ | 1,225,871 | | |
Acquisition of businesses
|
| | | | 3,874 | | | | | | — | | | | | | — | | | | | | 3,874 | | |
Balance at December 31, 2023
|
| | | $ | 1,141,871 | | | | | $ | 50,940 | | | | | $ | 36,934 | | | | | $ | 1,229,745 | | |
| | |
December 31,
|
| |||||||||||||||||||||||||||||||||
| | |
2023
|
| |
2022
|
| ||||||||||||||||||||||||||||||
| | |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trademarks
|
| | | $ | 104,900 | | | | | $ | — | | | | | $ | 104,900 | | | | | $ | 104,900 | | | | | $ | — | | | | | $ | 104,900 | | |
Finite-lived intangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trademarks
|
| | | | 5,000 | | | | | | (5,000) | | | | | | — | | | | | | 5,000 | | | | | | (5,000) | | | | | | — | | |
Customer relationships
|
| | | | 317,571 | | | | | | (200,312) | | | | | | 117,259 | | | | | | 310,279 | | | | | | (170,265) | | | | | | 140,014 | | |
Non-compete agreements
|
| | | | 7,084 | | | | | | (4,474) | | | | | | 2,610 | | | | | | 5,984 | | | | | | (3,323) | | | | | | 2,661 | | |
Total identifiable intangible assets
|
| | | $ | 434,555 | | | | | $ | (209,786) | | | | | $ | 224,769 | | | | | $ | 426,163 | | | | | $ | (178,588) | | | | | $ | 247,575 | | |
| | |
2024
|
| |
2025
|
| |
2026
|
| |
2027
|
| |
2028
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Amortization expense
|
| | | $ | 21,636 | | | | | $ | 14,922 | | | | | $ | 13,772 | | | | | $ | 12,828 | | | | | $ | 11,724 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Long-term revolving promissory note with related party
|
| | | $ | 470,000 | | | | | $ | 630,000 | | |
Other debt(1)
|
| | | | 4,746 | | | | | | 5,578 | | |
Total debt
|
| | | $ | 474,746 | | | | | $ | 635,578 | | |
| | |
2024
|
| |
2025
|
| |
2026
|
| |
2027
|
| |
2028
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Revolving promissory note with related party
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 470,000 | | | | | $ | 470,000 | | |
Other debt
|
| | | | 1,455 | | | | | | 404 | | | | | | 351 | | | | | | 397 | | | | | | 447 | | | | | | 1,692 | | | | | | 4,746 | | |
Total debt
|
| | | $ | 1,455 | | | | | $ | 404 | | | | | $ | 351 | | | | | $ | 397 | | | | | $ | 447 | | | | | $ | 471,692 | | | | | $ | 474,746 | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Accrued payroll
|
| | | $ | 62,824 | | | | | $ | 65,792 | | |
Accrued vacation
|
| | | | 41,488 | | | | | | 39,903 | | |
Accrued other
|
| | | | 71,755 | | | | | | 64,226 | | |
Income taxes payable
|
| | | | 399 | | | | | | 53 | | |
Accrued other
|
| | | $ | 176,466 | | | | | $ | 169,974 | | |
(Units in thousands)
|
| |
Class A units –
voting |
| |
Class B units –
non-voting |
| |
Class C units –
non-voting |
| |||||||||
Balance at December 31, 2020
|
| | | | 435,000 | | | | | | 6,527 | | | | | | 821 | | |
Options exercised, net of cancellations
|
| | | | — | | | | | | 1,971 | | | | | | 900 | | |
Vesting of restricted interests
|
| | | | — | | | | | | — | | | | | | 248 | | |
Balance at December 31, 2021
|
| | | | 435,000 | | | | | | 8,498 | | | | | | 1,969 | | |
Options exercised, net of cancellations
|
| | | | — | | | | | | — | | | | | | 553 | | |
Vesting of restricted interests
|
| | | | — | | | | | | — | | | | | | 248 | | |
Balance at December 31, 2022
|
| | | | 435,000 | | | | | | 8,498 | | | | | | 2,770 | | |
Options exercised, net of cancellations
|
| | | | — | | | | | | — | | | | | | 565 | | |
Vesting of restricted interests
|
| | | | — | | | | | | — | | | | | | 248 | | |
Balance at December 31, 2023
|
| | | | 435,000 | | | | | | 8,498 | | | | | | 3,583 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Occupational health centers: | | | | | | | | | | | | | | | | | | | |
Workers’ compensation
|
| | | $ | 1,110,277 | | | | | $ | 1,019,593 | | | | | $ | 973,327 | | |
Employer services
|
| | | | 594,573 | | | | | | 582,871 | | | | | | 541,229 | | |
Consumer health
|
| | | | 31,164 | | | | | | 27,490 | | | | | | 35,302 | | |
Total occupational health center revenue
|
| | | | 1,736,014 | | | | | | 1,629,954 | | | | | | 1,549,858 | | |
Onsite clinics
|
| | | | 60,181 | | | | | | 55,995 | | | | | | 144,563 | | |
Other
|
| | | | 41,886 | | | | | | 38,410 | | | | | | 37,620 | | |
Total revenue
|
| | | $ | 1,838,081 | | | | | $ | 1,724,359 | | | | | $ | 1,732,041 | | |
(Units in thousands)
|
| |
Class C
Restricted Interests |
| |
Weighted
Average Grant Date Fair Value |
| ||||||
| | |
(share amounts in thousands)
|
| |||||||||
Unvested balance, December 31, 2020
|
| | | | 744 | | | | | $ | 2.66 | | |
Vested
|
| | | | (248) | | | | | | 2.66 | | |
Unvested balance, December 31, 2021
|
| | | | 496 | | | | | | 2.66 | | |
Vested
|
| | | | (248) | | | | | | 2.66 | | |
Unvested balance, December 31, 2022
|
| | | | 248 | | | | | | 2.66 | | |
Vested
|
| | | | (248) | | | | | | 2.66 | | |
Unvested balance, December 31, 2023
|
| | | | — | | | | | $ | — | | |
(Units in thousands)
|
| |
Class B
Restricted Options |
| |
Weighted
Average Grant Date Fair Value |
| | |
Class C
Restricted Options |
| |
Weighted
Average Grant Date Fair Value |
| ||||||||||||
| | |
(share amounts in thousands)
|
| | | | | | | | | | | | | | |||||||||
Outstanding, December 31, 2020
|
| | | | 3,773 | | | | | $ | 0.05 | | | | | | | 4,901 | | | | | $ | 1.18 | | |
Exercised
|
| | | | (3,773) | | | | | | 0.05 | | | | | | | (2,389) | | | | | | 1.18 | | |
Outstanding, December 31, 2021
|
| | | | — | | | | | | — | | | | | | | 2,512 | | | | | | 1.18 | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | (1,256) | | | | | | 1.18 | | |
Outstanding, December 31, 2022
|
| | | | — | | | | | | — | | | | | | | 1,256 | | | | | | 1.18 | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | (1,256) | | | | | | 1.18 | | |
Outstanding, December 31, 2023
|
| | | | — | | | | | $ | — | | | | | | | — | | | | | $ | — | | |
| | |
For the Year Ended
December 31, |
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
Class B options – forfeited and cancelled
|
| | | | — | | | | | | — | | | | | | 1,802 | | |
Class C options – forfeited and cancelled
|
| | | | 691 | | | | | | 702 | | | | | | 1,490 | | |
Total options – forfeited and cancelled
|
| | | | 691 | | | | | | 702 | | | | | | 3,292 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Net income
|
| | | $ | 184,743 | | | | | $ | 172,243 | | | | | $ | 216,036 | | |
Less: net income attributable to non-controlling interests
|
| | | | 4,796 | | | | | | 5,516 | | | | | | 7,161 | | |
Net income attributable to the Company
|
| | | | 179,947 | | | | | | 166,727 | | | | | | 208,875 | | |
Less: Distributed and undistributed income attributable to participating shares
|
| | | | 316 | | | | | | 853 | | | | | | 4,188 | | |
Distributed and undistributed net income attributed to outstanding shares
|
| | | $ | 179,631 | | | | | $ | 165,874 | | | | | $ | 204,687 | | |
| | |
For the Year Ended December 31, 2023
|
| |||||||||||||||
| | |
Net Income
Allocation |
| |
Shares(1)
|
| |
Basic and
Diluted EPS |
| |||||||||
| | |
(in thousands, except for per share amounts)
|
| |||||||||||||||
Outstanding Class A, Class B, and Class C shares
|
| | | $ | 179,631 | | | | | | 104,008 | | | | | $ | 1.73 | | |
Participating shares
|
| | | | 316 | | | | | | 183 | | | | | | 1.73 | | |
Total Company
|
| | | $ | 179,947 | | | | | | | | | | | | | | |
| | |
For the Year Ended December 31, 2022
|
| |||||||||||||||
| | |
Net Income
Allocation |
| |
Shares(1)
|
| |
Basic and
Diluted EPS |
| |||||||||
| | |
(in thousands, except for per share amounts)
|
| |||||||||||||||
Outstanding Class A, Class B, and Class C shares
|
| | | $ | 165,874 | | | | | | 103,821 | | | | | $ | 1.60 | | |
Participating shares
|
| | | | 853 | | | | | | 534 | | | | | | 1.60 | | |
Total Company
|
| | | $ | 166,727 | | | | | | | | | | | | | | |
| | |
For the Year Ended December 31, 2021
|
| |||||||||||||||
| | |
Net Income
Allocation |
| |
Shares(1)
|
| |
Basic and
Diluted EPS |
| |||||||||
| | |
(in thousands, except for per share amounts)
|
| |||||||||||||||
Outstanding Class A, Class B, and Class C shares
|
| | | $ | 204,687 | | | | | | 103,059 | | | | | $ | 1.99 | | |
Participating shares
|
| | | | 4,188 | | | | | | 2,108 | | | | | | 1.99 | | |
Total Company
|
| | | $ | 208,875 | | | | | | | | | | | | | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Current income tax expense: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | 50,911 | | | | | $ | 47,825 | | | | | $ | 48,963 | | |
State and local
|
| | | | 13,262 | | | | | | 13,467 | | | | | | 11,895 | | |
Total current income tax expense
|
| | | | 64,173 | | | | | | 61,292 | | | | | | 60,858 | | |
Deferred income tax benefit
|
| | | | (6,286) | | | | | | (8,639) | | | | | | (1,331) | | |
Total income tax expense
|
| | | $ | 57,887 | | | | | $ | 52,653 | | | | | $ | 59,527 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2023
|
| |
2022
|
| |
2021
|
| |||||||||
Federal income tax at statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | | | | | 21.0% | | |
State and local income taxes, less federal income tax benefit
|
| | | | 4.2 | | | | | | 4.4 | | | | | | 4.2 | | |
Permanent differences
|
| | | | 0.3 | | | | | | 0.2 | | | | | | 0.3 | | |
Deferred income taxes – state income tax rate adjustment
|
| | | | (0.3) | | | | | | (0.4) | | | | | | 0.6 | | |
Prior year adjustment (provision to return)
|
| | | | 0.4 | | | | | | (0.4) | | | | | | (0.9) | | |
Stock-based compensation
|
| | | | (0.5) | | | | | | (0.5) | | | | | | (2.7) | | |
Disposition of a business
|
| | | | 0.0 | | | | | | 0.0 | | | | | | 0.0 | | |
Non-controlling interest
|
| | | | (0.5) | | | | | | (0.6) | | | | | | (0.5) | | |
Other
|
| | | | (0.7) | | | | | | (0.5) | | | | | | (0.4) | | |
Effective income tax rate
|
| | | | 23.9% | | | | | | 23.2% | | | | | | 21.6% | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Deferred tax assets | | | | | | | | | | | | | |
Implicit discounts and adjustments
|
| | | $ | 11,685 | | | | | $ | 9,973 | | |
Compensation and benefit related accruals
|
| | | | 17,217 | | | | | | 18,173 | | |
Professional malpractice liability insurance
|
| | | | 7,838 | | | | | | 8,238 | | |
Federal and state net operating loss and state tax credit carryforwards
|
| | | | 3,288 | | | | | | 3,920 | | |
Stock awards
|
| | | | 151 | | | | | | 326 | | |
Equity investments
|
| | | | — | | | | | | 395 | | |
Operating lease liabilities
|
| | | | 106,329 | | | | | | 101,236 | | |
Research & experimental expenditures
|
| | | | 7,929 | | | | | | 3,183 | | |
Other
|
| | | | 2,707 | | | | | | 2,064 | | |
Deferred tax assets
|
| | | | 157,144 | | | | | | 147,508 | | |
Valuation allowance
|
| | | | (2,933) | | | | | | (3,586) | | |
Deferred tax assets, net of valuation allowance
|
| | | $ | 154,211 | | | | | $ | 143,922 | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Operating lease right-of-use assets
|
| | | $ | (98,055) | | | | | $ | (93,630) | | |
Depreciation and amortization
|
| | | | (76,776) | | | | | | (77,106) | | |
Other
|
| | | | (2,744) | | | | | | (2,836) | | |
Deferred tax liabilities
|
| | | $ | (177,575) | | | | | $ | (173,572) | | |
Deferred tax liabilities, net of deferred tax assets
|
| | | $ | (23,364) | | | | | $ | (29,650) | | |
| | |
December 31,
|
| |||||||||
| | |
2023
|
| |
2022
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Other assets
|
| | | $ | — | | | | | $ | 146 | | |
Non-current deferred tax liability
|
| | | | (23,364) | | | | | | (29,796) | | |
| | | | $ | (23,364) | | | | | $ | (29,650) | | |
| | |
State Net
Operating Losses |
| |
Gross
Valuation Allowance |
| ||||||
| | |
(in thousands)
|
| |||||||||
2024
|
| | | | 564 | | | | | | 509 | | |
2025
|
| | | | 1,372 | | | | | | 794 | | |
2026
|
| | | | 1,124 | | | | | | 1,054 | | |
2027
|
| | | | 1,253 | | | | | | 698 | | |
Thereafter through 2041
|
| | | | 51,364 | | | | | | 46,775 | | |
| | |
Balance at
Beginning of Year |
| |
Charged to
Cost and Expenses |
| |
Acquisitions(1)
|
| |
Deductions(2)
|
| |
Balance at
End of Year |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Income Tax Valuation Allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year ended December 31, 2023
|
| | | $ | 3,586 | | | | | $ | (653) | | | | | $ | — | | | | | $ | — | | | | | $ | 2,933 | | |
Year ended December 31, 2022
|
| | | $ | 4,085 | | | | | $ | (499) | | | | | $ | — | | | | | $ | — | | | | | $ | 3,586 | | |
Year ended December 31, 2021
|
| | | $ | 3,882 | | | | | $ | 203 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,085 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 49,552 | | | | | $ | 31,374 | | |
Accounts receivable
|
| | | | 229,686 | | | | | | 216,194 | | |
Prepaid income taxes
|
| | | | 2,146 | | | | | | 7,979 | | |
Other current assets
|
| | | | 46,155 | | | | | | 38,871 | | |
Total Current Assets
|
| | | | 327,539 | | | | | | 294,418 | | |
Operating lease right-of-use assets
|
| | | | 394,252 | | | | | | 397,852 | | |
Property and equipment, net
|
| | | | 182,780 | | | | | | 178,370 | | |
Goodwill
|
| | | | 1,233,406 | | | | | | 1,229,745 | | |
Customer relationships
|
| | | | 111,860 | | | | | | 117,259 | | |
Other identifiable intangible assets, net
|
| | | | 107,678 | | | | | | 107,510 | | |
Other assets
|
| | | | 8,647 | | | | | | 8,406 | | |
Total Assets
|
| | | $ | 2,366,162 | | | | | $ | 2,333,560 | | |
LIABILITIES AND EQUITY
|
| | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Current operating lease liabilities
|
| | | | 73,714 | | | | | | 72,946 | | |
Current portion of long-term debt and notes payable
|
| | | | 6,636 | | | | | | 1,455 | | |
Accounts payable
|
| | | | 24,649 | | | | | | 20,413 | | |
Due to related party
|
| | | | 3,313 | | | | | | 3,354 | | |
Accrued and other liabilities
|
| | | | 167,317 | | | | | | 176,466 | | |
Total Current Liabilities
|
| | | | 275,629 | | | | | | 274,634 | | |
Non-current operating lease liabilities
|
| | | | 353,923 | | | | | | 357,310 | | |
Long-term debt, net of current portion
|
| | | | 3,197 | | | | | | 3,291 | | |
Long-term debt with related party
|
| | | | 470,000 | | | | | | 470,000 | | |
Non-current deferred tax liability
|
| | | | 21,092 | | | | | | 23,364 | | |
Other non-current liabilities
|
| | | | 23,037 | | | | | | 27,522 | | |
Total Liabilities
|
| | | | 1,146,878 | | | | | | 1,156,121 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Redeemable non-controlling interests
|
| | | | 18,257 | | | | | | 16,477 | | |
Members’ contributed capital
|
| | | | — | | | | | | 470,303 | | |
Common stock, $0.01 par value, 447,081 shares authorized 104,094, issued and outstanding at March 31, 2024
|
| | | | 1,041 | | | | | | — | | |
Capital in excess of par
|
| | | | 462,371 | | | | | | — | | |
Retained earnings
|
| | | | 732,348 | | | | | | 685,293 | | |
Total Stockholders’ Equity (Members’ Equity at December 31, 2023)
|
| | | | 1,195,760 | | | | | | 1,155,596 | | |
Non-controlling interests
|
| | | | 5,267 | | | | | | 5,366 | | |
Total Equity
|
| | | | 1,201,027 | | | | | | 1,160,962 | | |
Total Liabilities and Equity
|
| | | $ | 2,366,162 | | | | | $ | 2,333,560 | | |
| | |
For the
Three Months Ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Revenue
|
| | | $ | 467,598 | | | | | $ | 456,298 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of services, exclusive of depreciation and amortization
|
| | | | 336,990 | | | | | | 328,078 | | |
General and administrative, exclusive of depreciation and amortization(1)
|
| | | | 36,909 | | | | | | 34,650 | | |
Depreciation and amortization
|
| | | | 18,485 | | | | | | 18,310 | | |
Total costs and expenses
|
| | | | 392,384 | | | | | | 381,038 | | |
Other operating income
|
| | | | 284 | | | | | | — | | |
Income from operations
|
| | | | 75,498 | | | | | | 75,260 | | |
Other income and expense: | | | | | | | | | | | | | |
Equity in losses of unconsolidated subsidiaries
|
| | | | — | | | | | | (526) | | |
Interest expense on related party debt
|
| | | | (9,971) | | | | | | (11,076) | | |
Interest expense
|
| | | | (111) | | | | | | (61) | | |
Income before income taxes
|
| | | | 65,416 | | | | | | 63,597 | | |
Income tax expense
|
| | | | 15,137 | | | | | | 16,166 | | |
Net income
|
| | | | 50,279 | | | | | | 47,431 | | |
Less: Net income attributable to non-controlling interests
|
| | | | 1,323 | | | | | | 1,167 | | |
Net income attributable to the Company
|
| | | $ | 48,956 | | | | | $ | 46,264 | | |
Earnings per common share (Note 9): | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | 0.47 | | | | | $ | 0.44 | | |
| | |
For the Three Months Ended March 31, 2024
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Total
Members’ Units |
| |
Members’
Contributed Capital |
| |
Common
Stock Issued |
| |
Common
Stock Par Value |
| |
Capital in
excess of par |
| |
Retained
Earnings |
| |
Total
Stockholders’ Equity |
| |
Non-
controlling Interests |
| |
Total
Equity |
| |||||||||||||||||||||||||||
Balance at December 31, 2023
|
| | | | 447,081 | | | | | $ | 470,303 | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 685,293 | | | | | $ | 1,155,596 | | | | | $ | 5,366 | | | | | $ | 1,160,962 | | |
Net income attributable to the Company
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 48,956 | | | | | | 48,956 | | | | | | | | | | | | 48,956 | | |
Net income attributable to non-controlling interests
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 270 | | | | | | 270 | | |
Distribution to Parent
|
| | | | | | | | | | (6,891) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (6,891) | | | | | | | | | | | | (6,891) | | |
Distributions to and purchases of non-controlling interests
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | (369) | | | | | | (369) | | |
Redemption value adjustment on
non-controlling interests |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,901) | | | | | | (1,901) | | | | | | | | | | | | (1,901) | | |
Conversion of LLC to Corporation and Impact of Reverse Stock Split
|
| | | | (447,081) | | | | | | (463,412) | | | | | | 104,094 | | | | | | 1,041 | | | | | | 462,371 | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Balance at March 31, 2024
|
| | | | — | | | | | $ | — | | | | | | 104,094 | | | | | $ | 1,041 | | | | | $ | 462,371 | | | | | $ | 732,348 | | | | | $ | 1,195,760 | | | | | $ | 5,267 | | | | | $ | 1,201,027 | | |
| | |
For the Three Months Ended March 31, 2023
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Members’ Units
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | |
Class A
Units Voting |
| |
Class B
Units Non- Voting |
| |
Class C
Units Non- Voting |
| |
Members’
Contributed Capital |
| |
Retained
Earnings |
| |
Total
Members’ Equity |
| |
Non-controlling
Interests |
| |
Total
Equity |
| ||||||||||||||||||||||||
Balance at December 31, 2022
|
| | | | 435,000 | | | | | | 8,498 | | | | | | 2,770 | | | | | $ | 464,725 | | | | | $ | 508,592 | | | | | $ | 973,317 | | | | | $ | 6,026 | | | | | $ | 979,343 | | |
Net income attributable to the Company
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 46,264 | | | | | | 46,264 | | | | | | | | | | | | 46,264 | | |
Net income attributable to non-controlling
interests |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | 253 | | | | | | 253 | | |
Contribution from Parent
|
| | | | | | | | | | | | | | | | | | | | | | 2,797 | | | | | | | | | | | | 2,797 | | | | | | | | | | | | 2,797 | | |
Vesting of restricted interests
|
| | | | | | | | | | | | | | | | 248 | | | | | | 178 | | | | | | | | | | | | 178 | | | | | | | | | | | | 178 | | |
Distributions to and purchases of non-controlling interests
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | (221) | | | | | | (221) | | |
Redemption value adjustment on non-controlling interests
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (435) | | | | | | (435) | | | | | | | | | | | | (435) | | |
Balance at March 31, 2023
|
| | | | 435,000 | | | | | | 8,498 | | | | | | 3,018 | | | | | $ | 467,700 | | | | | $ | 554,421 | | | | | $ | 1,022,121 | | | | | $ | 6,058 | | | | | $ | 1,028,179 | | |
| | |
For the
Three Months Ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
Operating activities | | | | | | | | | | | | | |
Net income
|
| | | $ | 50,279 | | | | | $ | 47,431 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 18,485 | | | | | | 18,310 | | |
Provision for expected credit losses
|
| | | | 12 | | | | | | 19 | | |
Equity in losses of unconsolidated subsidiaries
|
| | | | — | | | | | | 526 | | |
Gain (loss) on sale or disposal of assets
|
| | | | 43 | | | | | | (4) | | |
Stock compensation expense
|
| | | | 166 | | | | | | 178 | | |
Deferred income taxes
|
| | | | (2,521) | | | | | | (3,195) | | |
Changes in operating assets and liabilities, net of effects of business combinations:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (13,505) | | | | | | (19,361) | | |
Other current assets
|
| | | | (7,315) | | | | | | (12,655) | | |
Other assets
|
| | | | 722 | | | | | | 1,174 | | |
Accounts payable and accrued liabilities
|
| | | | (1,744) | | | | | | (14,728) | | |
Net cash provided by operating activities
|
| | | | 44,622 | | | | | | 17,695 | | |
Investing activities | | | | | | | | | | | | | |
Business combinations, net of cash acquired
|
| | | | (5,144) | | | | | | — | | |
Acquired customer relationships
|
| | | | — | | | | | | (2,756) | | |
Purchases of property and equipment
|
| | | | (17,231) | | | | | | (11,644) | | |
Proceeds from sale of assets
|
| | | | 23 | | | | | | 4 | | |
Net cash used in investing activities
|
| | | | (22,352) | | | | | | (14,396) | | |
Financing activities | | | | | | | | | | | | | |
Borrowings from related party revolving promissory note
|
| | | | 10,000 | | | | | | — | | |
Payments on related party revolving promissory note
|
| | | | (10,000) | | | | | | (20,000) | | |
Borrowings of other debt
|
| | | | 6,618 | | | | | | 5,471 | | |
Principal payments on other debt
|
| | | | (2,276) | | | | | | (2,388) | | |
Distributions to and purchases of non-controlling interests
|
| | | | (1,543) | | | | | | (1,877) | | |
Contributions from (distributions to) Parent
|
| | | | (6,891) | | | | | | 2,797 | | |
Net cash used in financing activities
|
| | | | (4,092) | | | | | | (15,997) | | |
Net increase (decrease) in cash
|
| | | | 18,178 | | | | | | (12,698) | | |
Cash at beginning of period
|
| | | | 31,374 | | | | | | 37,657 | | |
Cash at end of period
|
| | | $ | 49,552 | | | | | $ | 24,959 | | |
Supplemental information | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 9,958 | | | | | $ | 11,307 | | |
Cash paid (refund received) for taxes
|
| | | | 34 | | | | | | (205) | | |
| | |
2024
|
| |
2023
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance as of January 1
|
| | | $ | 16,477 | | | | | $ | 16,772 | | |
Net income attributable to redeemable non-controlling interests
|
| | | | 1,053 | | | | | | 914 | | |
Distributions to and purchases of redeemable non-controlling interests
|
| | | | (1,174) | | | | | | (1,656) | | |
Redemption value adjustment on redeemable non-controlling interests
|
| | | | 1,901 | | | | | | 436 | | |
Balance as of March 31
|
| | | $ | 18,257 | | | | | $ | 16,466 | | |
| | |
For the
Three Months Ended March 31, |
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Operating lease cost
|
| | | $ | 24,790 | | | | | $ | 24,128 | | |
Finance lease cost: | | | | | | | | | | | | | |
Amortization of right-of-use assets
|
| | | | 211 | | | | | | 251 | | |
Interest on lease liabilities
|
| | | | 55 | | | | | | 103 | | |
Variable lease cost
|
| | | | 5,256 | | | | | | 5,114 | | |
Total lease cost
|
| | | $ | 30,312 | | | | | $ | 29,596 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Long-term revolving promissory note with related party
|
| | | $ | 470,000 | | | | | $ | 470,000 | | |
Other debt(1)
|
| | | | 9,833 | | | | | | 4,746 | | |
Total debt
|
| | | $ | 479,833 | | | | | $ | 474,746 | | |
| | |
2024
|
| |
2025
|
| |
2026
|
| |
2027
|
| |
2028
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Revolving promissory note with related party
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 470,000 | | | | | $ | 470,000 | | |
Other debt, including finance leases
|
| | | | 5,922 | | | | | | 1,024 | | | | | | 351 | | | | | | 397 | | | | | | 447 | | | | | | 1,692 | | | | | | 9,833 | | |
Total debt
|
| | | $ | 5,922 | | | | | $ | 1,024 | | | | | $ | 351 | | | | | $ | 397 | | | | | $ | 447 | | | | | $ | 471,692 | | | | | $ | 479,833 | | |
| | |
March 31,
2024 |
| |
December 31,
2023 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Accrued payroll
|
| | | $ | 39,563 | | | | | $ | 62,824 | | |
Accrued vacation
|
| | | | 42,064 | | | | | | 41,488 | | |
Accrued other
|
| | | | 66,610 | | | | | | 71,755 | | |
Income taxes payable
|
| | | | 19,080 | | | | | | 399 | | |
Accrued and other liabilities
|
| | | $ | 167,317 | | | | | $ | 176,466 | | |
| | |
Three Months Ended
|
| |||||||||
| | |
2024
|
| |
2023
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Occupational health centers: | | | | | | | | | | | | | |
Workers’ compensation
|
| | | $ | 279,866 | | | | | $ | 268,340 | | |
Employer services
|
| | | | 150,735 | | | | | | 152,173 | | |
Consumer health
|
| | | | 8,326 | | | | | | 8,185 | | |
Other occupational health center revenue
|
| | | | 2,145 | | | | | | 2,418 | | |
Total occupational health center revenue
|
| | | | 441,072 | | | | | | 431,116 | | |
Onsite clinics
|
| | | | 15,857 | | | | | | 14,545 | | |
Other
|
| | | | 10,669 | | | | | | 10,637 | | |
Total revenue
|
| | | $ | 467,598 | | | | | $ | 456,298 | | |
|
Net income
|
| | | $ | 47,431 | | |
|
Less: net income attributable to non-controlling interests
|
| | | | 1,167 | | |
|
Net income attributable to the Company
|
| | | | 46,264 | | |
|
Less: Distributed and undistributed income attributable to participating shares
|
| | | | 138 | | |
|
Distributed and undistributed income attributable to outstanding shares
|
| | | $ | 46,126 | | |
| | |
Net Income
Attributable to the Company |
| |
Shares(2)
|
| |
Basic and
Diluted EPS |
| |||||||||
| | |
(in thousands, except for per share amounts)
|
| |||||||||||||||
Common shares
|
| | | $ | 48,956 | | | | | | 104,094 | | | | | | 0.47 | | |
| | |
Net Income
Allocation |
| |
Shares(1)
|
| |
Basic and
Diluted EPS |
| |||||||||
Outstanding Class A, Class B, and Class C shares
|
| | | $ | 46,126 | | | | | | 103,942 | | | | | | 0.44 | | |
Participating shares
|
| | | | 138 | | | | | | 312 | | | | | | 0.44 | | |
Total Company
|
| | | $ | 46,264 | | | | | | | | | | | | | | |
| | |
Payable by the
registrant |
| |||
SEC registration fee
|
| | | $ | 99,298 | | |
FINRA filing fee
|
| | | $ | 101,413 | | |
Exchange listing fee
|
| | | $ | 300,000 | | |
Printing and engraving expenses
|
| | | $ | 10,000 | | |
Legal fees and expenses
|
| | | $ | 3,200,000 | | |
Accounting fees and expenses
|
| | | $ | 2,100,000 | | |
Transfer agent and registrar fees and expenses
|
| | | $ | 5,000 | | |
Miscellaneous fees and expenses
|
| | | $ | 146,289 | | |
Total
|
| | | | 5,962,000 | | |
|
By:
/s/ William K. Newton
Name: William K. Newton
Title: Chief Executive Officer and Director |
| | | |
|
Signature
|
| |
Title
|
| |||
|
By:
|
| |
/s/ William K. Newton
|
| |
William K. Newton
(Principal Executive Officer and Director) |
|
| By: | | |
*
|
| |
Matthew T. DiCanio
(President and Principal Financial Officer) |
|
| By: | | |
*
|
| |
Su Zan Nelson
(Principal Accounting Officer) |
|
| By: | | |
*
|
| |
Robert A. Ortenzio
Director |
|
| By: | | |
*
|
| |
Daniel J. Thomas
Director |
|
| *By: | | |
/s/ Michael E. Tarvin
Michael E. Tarvin
|
| | ||
| | | |
Attorney-in-Fact
|
| |