Concentra Group Holdings Parent, Inc. ($CON)

Hello, and welcome to the Annual Meeting of the Stockholders of Concentra Group Holdings Parent, Inc. Please note that today's meeting is being recorded. [Operator Instructions] It is now my pleasure to turn today's meeting over to Mr. Keith Newton, the company's Chief Executive Officer. Mr. Newton, the floor is yours.

Thank you. Welcome, everyone. Today's virtual-only meeting is a live webcast. We are pleased that you could join us today. Your interest in the company is appreciated. I will serve as Chairman of this meeting. Before we proceed with the meeting itself, however, I would like to introduce you to Matthew DiCanio, who is the President and Chief Financial Officer of Concentra Group Health Group Holdings Parent, Inc. Tom Devasia, the company's Executive Vice President and Chief Marketing and Innovation Officer; and Timothy Ryan, Executive Vice President and Chief Legal Counsel of the company. Mr. Ryan will act as the Secretary of this meeting. I would like to introduce you to the directors of the company who, in addition to me, are in attendance today: Robert A. [indiscernible] Dr. Cheryl B. Pegus, Daniel J. Thomas, Ricard Bonner Will the meeting please come to order. Tim, would you please review the agenda for us?

Of course, Keith. Good morning, everybody. Today's meeting will begin with a few brief remarks from our President and Chief Financial Officer, Matthew DiCanio. We will then vote on 3 proposals today, which will be followed by a question-and-answer session in which stockholders may ask questions. stockholders who have entered the 16-digit control number from their proxy cards in the designated field on the web portal may submit their questions online at any time prior to the question-and-answer session. by clicking on the dialogue icon in the upper right corner of the meeting center screen. The polls are currently open. If you have not voted or wish to change your vote, you may do so now by clicking on the link provided online. Any stockholder who has sent in proxies or who has already voted via the Internet or telephone and does not want to change his or her vote need not take any further action. The polls will close once the question-and-answer session is finalized. I'd now like to turn the floor over to Matthew DiCanio.

Thank you, Tim, and thank you all for being here today. On behalf of everyone at Concentra, we appreciate your support, interest and investment in our company. I am pleased to share our business and the financial highlights for this past year, our second year as a public company. In 2025, we expanded our leadership position as the nation's largest provider of occupational health services growing to 628 occupational health centers and 411 on-site health clinics, enabling the delivery of our high-quality workplace health services from over 1,000 locations and telemedicine across 47 states. We now treat approximately 1 in every 4 workplace injuries in the United States, carrying for an average of 54,000 patients each business day while maintaining a consistent clinical experience across our national footprint. We pursue our mission of improving the health of America's workforce 1 patient at a time by working directly with approximately 200,000 employers, including all Fortune 100 companies enabling us to care for millions of employees through our national network of occupational health centers, on-site health clinics and telemedicine. Our early clinical intervention model is designed to deliver consistent outcomes in a faster, safer return to work. Supported by internal clinical analytics and industry validation based on claims studies from 2020 to 2025. Our average total claim costs were 25% lower and average claim duration was 65 fewer days per claim when compared to non Concentra claims. Concentra saves employers money by lowering medical and indemnity claim costs and boosting productivity. Employers nationwide trust us to help keep their workforce healthy and productive. Shifting gears to our 2025 performance. Our strong operating results were driven by steady growth in workers' compensation and employer services visits, positive rate dynamics and operational discipline. Patient visits to Concentra Medical Centers grew to $13.5 million, an increase of 7.7%. 2025 revenue grew to $2.2 billion, up 13.9% year-over-year. Our solid financial results were accompanied by sustained execution of our strategic initiatives. We continue to invest in meaningful technology improvements as part of our commitment to enhancing the user experience for everyone we serve, patients, customers, ecosystem partners and colleagues. Similarly, we continue building Concentra as a fully stand-alone public company and made significant progress towards full separation from Select Medical, which we expect to complete by the second half of 2026. We completed the integration of Nova Medical Centers and Pivot on-site innovations into the Concentra family while preserving service quality and financial performance. The addition of Nova Medical further expanded our occupational health centers operating segment. In our on-site health clinics business, the addition of Pivot more than doubled the operating segment size, while organic revenue growth, excluding Pivot remains strong. The Nova and Pivot acquisitions accounted for the majority of the $333 million in business combinations completed during the year and were a key part of our capital allocation in 2025, continuing our multipronged capital allocation strategy that leverages Concentra's strong cash flow generation and balances opportunistic growth, deleveraging and return of capital. This past year, we deployed $82 million in capital expenditures across 7 newly opened The Nova sites, strategic center upgrades and relocations and technology enhancements with tangible and measurable returns. We ended 2025 at 3.4x net leverage with clear visibility to less than 3x by the end of 2026. We returned capital to you, our stockholders, through $32 million in cumulative quarterly dividends and the early execution of our $100 million share repurchase program with approximately 1.1 million shares repurchased in the fourth quarter for approximately $22 million. We believe our strong momentum from the past year positions us well for 2026 of paramount importance is our commitment to clinical and operational excellence, ensuring we continue to deliver best-in-class outcomes and experience. We are confident that our technology transformation initiatives, including AI capabilities to enhance workflows and create efficiencies will make it even easier for customers to do business with us. We will complete our separation from Select Medical with no disruption to service delivery or business performance. We expect to deliver low single-digit visit growth, approximately 3% rate growth and adjusted EBITDA margins near 20% in 2026. We remain committed to allocating capital strategically by maintaining the deleveraging path, continuing to return capital to stockholders pursuing de novos and small bolt-on acquisitions where returns are compelling and expanding on sites where employers see clear value. We are very proud of our clinical and operational outcomes, especially the positive impact they have had on our patients and customers. Across the approximately 13.5 million visits in 2025, our highest annual total, we reduced average visit turnaround times and patients gave us all-time high satisfaction ratings. These top marks are the direct result of our skilled dedicated colleagues who worked tirelessly to deliver exceptional service and high-quality clinical care. We thank them for the professionalism and care they bring to work every day. And in closing, we'd like to thank you, our stockholders, for your continued confidence as we build long-term value through customer focus, execution and growth. Thank you.

This meeting has been called pursuant to the notice dated March 17, 2026 that was made available to all stockholders of record as of the close of business on March 5, 2026. Proxies were solicited on behalf of the Board of Directors of the company for this meeting. Mr. Andrew Wafford of Computershare Inc. has been appointed as Inspector of Election of this meeting and any adjournment or postponement thereof to conduct the vote with respect to the proposals set forth in the company's proxy statement and the other questions that will be voted upon by ballot, if any. Mr. Wafford has already delivered to me his sort of office. The bylaws of the company provide that each stockholder of record is entitled to 1 vote for each share of common stock held as of the record date. The Board of Directors at March 5, 2026, as the record date. Computershare Inc., the transfer agent for the company, reports that there were 128, 507,289 shares of Concentra Group Holdings Parent, Inc. common stock outstanding as of the close of business on the record date. The record of this meeting will reflect that the notice of annual meeting, the proxy statement. The proxy card and the company's annual report on Form 10-K were made available to all stockholders entitled to vote at this meeting beginning on March 17, 2026, as evidenced by an affidavit of mailing provided by Computershare Inc. A copy of these materials will be made a permanent part of the company's corporate records. More than half of the shares outstanding as of the record date must be represented at this meeting either by stockholders participating online or by proxy, to have a quorum as determined under the bylaws. Mr. Watford?

Thank you, a total of 121,940,251 shares of Concentra Group Holdings Parent, Inc. common stock are represented at today's meeting, which constitutes 94.89% of the total shares outstanding on the record date. Therefore, I certify that a quorum has been achieved.

Will the secretary present the notice of meeting and proxy statement.

By clicking on a tab entitled Meeting Materials, you can access and review copies of the notice of annual meeting proxy statement, proxy card and the company's annual report on Form 10-K. The copies of the notice of meeting, proxy statement, proxy card and the company's annual report on Form 10-K together with the original affidavit of mailing of Computershare Inc. and the certificate with respect to the stockholder list will be filed with the minutes of the meeting.

I now declare this meeting duly convened, properly organized and competent to transact business.

The first order of business on our agenda for a stockholder vote is the election of 3 Class II directors to hold office, subject to the provisions of the bylaws, each for a 3-year term and until their successors have been duly elected and qualified. As of the record date of March 5, 2026, there were 128,507,289 shares of Concentra Group Holdings parent Inc. common stock outstanding. The 3 nominees for Class II director are [ Vipin Gopal, William K. Newton and Dr. Mark R. Watkins. ] The second order of business on our agenda for a stockholder vote is to hold a nonbinding advisory vote on the compensation of the company's named executive office. And the third and final order of business on our agenda for a stockholder vote is the proposal to ratify the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the year ending December 31, 2026.

We will now attempt to answer questions post through the virtual meeting web portal by our stockholders. As mentioned earlier, stockholders have entered the 16-digit control number from their proxy card in the designated field on the web portal may submit their questions through the portal by clicking on the dialogue icon in the upper right corner of this meeting center screen. Thomas Devasia company's Executive Vice President and Chief Marketing and Innovation Officer, will now provide the questions, if any, submitted by stockholders during the meeting.

Thank you, Keith. There are no questions from stockholders.

The online voting will now be closed based on the review of the votes cast with the inspector of election, please submit his report on the results of the balloting.

Having conducted the election and vote at the Annual Meeting of Stockholders of Concentra Group Holdings Parent, Inc. held on April 30, 2026, I hereby certify that one, each of the 3 nominees request to Director received a majority of the votes of the common stock cast for election as director; two, the stockholders have approved the compensation of the company's named executive officers and three, the stockholders have ratified the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the year ending December 31, 2026. The report of election prepared by Computershare Inc. evidences that: one, all nominees for Class II Director were elected by an affirmative vote of 81.73% or more of the shares voted. Two, the compensation of the company's named executive officers was approved by an affirmative vote of the holders of 114,180,227 shares or 95.6% of the shares voted, 5,143,479 shares were voted against approval and 8'9,294 shares abstained. Three, the appointment of PricewaterhouseCoopers LLP was ratified by an affirmative vote of the holders of 121,568,869 shares or 99.69% of the shares voted. 360,888 shares were voted against ratification and 10,494 shares abstained.

Based on the report of the inspector of election, I therefore declare that, one, the nominees have been duly elected as Class II directors of the company; two, the stockholders have approved the compensation of the company's named executive officers; and three, the stockholders have ratified the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the year ending December 31, 2026. The Inspector of Election will execute a certificate as to the results of the balloting and the certificate will be filed in the minute books of the company, along with the minutes of this meeting. The company will file a Form 8-K with the SEC with the final voting results within the next 4 days business days. There being no further business to come before this meeting, I hereby adjourn the meeting. Thank you for your participation.

This concludes the meeting. You may now disconnect.