Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business is organized into three operating segments based primarily on the type or location of occupational health services provided: (i) occupational health centers, (ii) onsite health clinics, and (iii) other businesses. All three operating segments are aggregated into a single reportable segment in our consolidated financial statements based on similar services provided, service delivery process involved, target customers, and similar economic characteristics. Across our operating segments, we offer a diverse and comprehensive array of services, which includes workers’ compensation, employer services and consumer health. Our patients are generally employed by our main customers - employers across the United States.

Occupational health services are focused on the diagnosis and treatment of work-related injuries and illnesses (workers’ compensation services) and employer services such as examinations, physicals, tests and screenings, vaccinations, and a range of consulting services designed to protect employees from workplace hazards.

The chief operating decision maker (“CODM”) is our Chief Executive Officer. The CODM uses Segment Adjusted EBITDA in the annual budgeting and forecasting process, in the review of budget-to-actual and prior year variances to make decisions about the allocation of operating and capital resources, and to establish management’s compensation.

The following table is representative of the significant categories, including significant expenses, regularly provided to the CODM when managing the Company’s single reporting segment.

	For the Year Ended December 31,
	2024		2023		2022
			(in thousands)
Revenue	$	1,900,192	$	1,838,081	$	1,724,359
Expenses:
Personnel expenses(1)	1,086,886		1,048,463		988,348
Facility expenses(1)	180,996		173,375		160,817
Other expenses(1)	255,454		254,909		240,857
Total segment expenses	1,523,336		1,476,747		1,390,022
Segment Adjusted EBITDA	$	376,856	$	361,334	$	334,337
Total assets	$	2,521,164	$	2,333,560	$	2,297,235
Purchases of property and equipment	$	64,327	$	64,958	$	45,983
Depreciation and amortization	$	67,178	$	73,051	$	73,667

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(1)    Includes the shared service fee from related party and transaction services agreement fee of $15.2 million, $14.6 million, and $12.3 million for the years ended December 31, 2024, 2023, and 2022, respectively. See Note 15—“Relationship with Select”, for additional information.

Segment Adjusted EBITDA is calculated as earnings excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, separation transaction costs, acquisition costs, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries.

The following table reconciles Segment Adjusted EBITDA to income before income taxes for the periods indicated.

	For the Year Ended December 31,
	2024		2023		2022
			(unaudited)
			(in thousands)
Segment Adjusted EBITDA	$	376,856	$	361,334	$	334,337
Interest expense	(47,714)		(221)		(849)
Interest expense on related party debt	(21,980)		(44,253)		(30,792)
Equity in losses of unconsolidated subsidiaries	(3,676)		(526)		(1,577)
Other expense	—		(2)		(415)
Stock compensation expense	(2,327)		(651)		(2,141)
Depreciation and amortization	(67,178)		(73,051)		(73,667)
Separation transaction costs(1)	(1,693)		—		—
Nova acquisition costs	(895)		—		—
Income before income taxes	$	231,393	$	242,630	$	224,896

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(1)    Separation transaction costs represent incremental consulting, legal, audit-related fees, and non-recurring system implementation costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the consolidated statements of operations.