Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Third Quarter Ended September 30,
MECHANICSBURG, PENNSYLVANIA
- October 31, 2019 - Select Medical Holdings Corporation ("Select Medical") (NYSE: SEM) today announced
results for its third quarter ended September 30, 2019.
For the third quarter
ended September 30, 2019, net operating revenues increased 9.9% to $1,393.3 million, compared to $1,267.4 million for the
same quarter, prior year. Income from operations increased 23.1% to $122.9 million for the third quarter ended September 30,
2019, compared to $99.8 million for the same quarter, prior year. Net income increased 3.2% to $44.0 million for the third quarter
ended September 30, 2019, compared to $42.7 million for the same quarter, prior year. For the third quarter ended September 30,
2019, net income included pre-tax losses on early retirement of debt of $18.6 million. For the third quarter ended September 30,
2018, net income included a pre-tax gain on sale of businesses of $2.1 million. Adjusted EBITDA increased 16.6% to $182.7 million
for the third quarter ended September 30, 2019, compared to $156.6 million for the same quarter, prior year. Earnings per
common share was $0.23 on a fully diluted basis for the third quarter ended September 30, 2019, compared to $0.24 for the
same quarter, prior year. Adjusted earnings per common share was $0.33 on a fully diluted basis for the third quarter ended September 30,
2019, compared to $0.23 for the same quarter, prior year. Adjusted earnings per common share excludes the losses on early retirement
of debt and related costs, and their related tax effects for the third quarter ended September 30, 2019. Adjusted earnings
per common share excludes the gain on sale of businesses and its related tax effects for the third quarter ended September 30,
2018. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table IX of this
release. A reconciliation of earnings per common share to adjusted earnings per common share is presented in table X of this release.
ended September 30, 2019, net operating revenues increased 6.9% to $4,079.3 million, compared to $3,816.6 million for the
same period, prior year. Income from operations increased 9.3% to $359.5 million for the nine months ended September 30, 2019,
compared to $329.0 million for the same period, prior year. Net income increased 6.9% to $157.4 million for the nine months ended
September 30, 2019, compared to $147.2 million for the same period, prior year. For the nine months ended September 30,
2019, net income included pre-tax losses on early retirement of debt of $18.6 million and a pre-tax gain on sale of businesses
of $6.5 million. For the nine months ended September 30, 2018, net income included pre-tax losses on early retirement of debt
of $10.3 million, pre-tax gains on sales of businesses of $9.0 million, and pre-tax U.S. HealthWorks acquisition costs of $2.9
million. Adjusted EBITDA increased 8.2% to $539.0 million for the nine months ended September 30, 2019, compared to $498.1
million for the same period, prior year. Earnings per common share increased to $0.86 on a fully diluted basis for the nine months
ended September 30, 2019, compared to $0.84 for the same period, prior year. Adjusted earnings per common share was $0.93
on a fully diluted basis for the nine months ended September 30, 2019, compared to $0.83 for the same period, prior year.
Adjusted earnings per common share excludes the losses on early retirement of debt and related costs, gain on sale of businesses,
and their related tax effects for the nine months ended September 30, 2019. Adjusted earnings per common share excludes the
losses on early retirement of debt, gains on sales of businesses, U.S. HealthWorks acquisition costs, and their related tax effects
for the nine months ended September 30, 2018. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted
EBITDA are presented in table IX of this release. A reconciliation of income per common share to adjusted income per common share
is presented in table X of this release.
Select Medical is one
of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics,
and occupational health centers in the United States based on the number of facilities. Our reportable segments include the critical
illness recovery hospital segment, the rehabilitation hospital segment, the outpatient rehabilitation segment, and the Concentra
segment. As of September 30, 2019, Select Medical operated 100 critical illness recovery hospitals in 28 states, 29 rehabilitation
hospitals in 12 states, and 1,707 outpatient rehabilitation clinics in 37 states and the District of Columbia. Select Medical's
joint venture subsidiary Concentra operated 523 occupational health centers in 41 states. Concentra also provides contract services
at employer worksites and Department of Veterans Affairs community-based outpatient clinics. At September 30, 2019, Select
Medical had operations in 47 states and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.
Critical Illness Recovery Hospital Segment
For the third quarter
ended September 30, 2019, net operating revenues for the critical illness recovery hospital segment increased 10.2% to $462.9
million, compared to $420.1 million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital
segment increased 7.4% to $57.2 million for the third quarter ended September 30, 2019, compared to $53.3 million for the
same quarter, prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 12.4% for the third
quarter ended September 30, 2019, compared to 12.7% for the same quarter, prior year. Certain critical illness recovery hospital
key statistics are presented in table VII of this release for both the third quarters ended September 30, 2019 and 2018.
ended September 30, 2019, net operating revenues for the critical illness recovery hospital segment increased 4.1% to $1,381.6
million, compared to $1,327.2 million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital
segment increased 4.0% to $194.4 million for the nine months ended September 30, 2019, compared to $187.0 million for the
same period, prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 14.1% for both the nine
months ended September 30, 2019 and 2018. Certain critical illness recovery hospital key statistics are presented in table
VIII of this release for both the nine months ended September 30, 2019 and 2018.
Rehabilitation Hospital Segment
For the third quarter
ended September 30, 2019, net operating revenues for the rehabilitation hospital segment increased 19.9% to $173.4 million,
compared to $144.6 million for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased
45.1% to $36.8 million for the third quarter ended September 30, 2019, compared to $25.3 million for the same quarter, prior
year. The Adjusted EBITDA margin for the rehabilitation hospital segment was 21.2% for the third quarter ended September 30,
2019, compared to 17.5% for the same quarter, prior year. For the third quarter ended September 30, 2018, the Adjusted EBITDA
results for the rehabilitation hospital segment include start-up losses of approximately $0.8 million. Certain rehabilitation hospital
key statistics are presented in table VII of this release for both the third quarters ended September 30, 2019 and 2018.
ended September 30, 2019, net operating revenues for the rehabilitation hospital segment increased 12.9% to $488.3 million,
compared to $432.7 million for the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 15.2%
to $92.5 million for the nine months ended September 30, 2019, compared to $80.3 million for the same period, prior year.
The Adjusted EBITDA margin for the rehabilitation hospital segment was 19.0% for the nine months ended September 30, 2019,
compared to 18.6% for the same period, prior year. The Adjusted EBITDA results for the rehabilitation hospital segment include
start-up losses of approximately $8.8 million for the nine months ended September 30, 2019, compared to approximately $3.8
million for the same period, prior year. Certain rehabilitation hospital key statistics are presented in table VIII of this release
for both the nine months ended September 30, 2019 and 2018.
Outpatient Rehabilitation Segment
For the third quarter
ended September 30, 2019, net operating revenues for the outpatient rehabilitation segment increased 8.2% to $265.3 million,
compared to $245.2 million for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased
16.0% to $40.0 million for the third quarter ended September 30, 2019, compared to $34.5 million for the same quarter, prior
year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 15.1% for the third quarter ended September 30,
2019, compared to 14.1% for the same quarter, prior year. Certain outpatient rehabilitation key statistics are presented in table
VII of this release for both the third quarters ended September 30, 2019 and 2018.
ended September 30, 2019, net operating revenues for the outpatient rehabilitation segment increased 4.1% to $774.1 million,
compared to $743.4 million for the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased
4.3% to $111.6 million for the nine months ended September 30, 2019, compared to $107.0 million for the same period, prior
year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 14.4% for both the nine months ended September 30,
2019 and 2018. Certain outpatient rehabilitation key statistics are presented in table VIII of this release for both the nine months
ended September 30, 2019 and 2018.
The financial results
for the Concentra segment include U.S. HealthWorks beginning February 1, 2018.
For the third quarter
ended September 30, 2019, net operating revenues for the Concentra segment increased 4.3% to $421.9 million, compared to $404.5
million for the same quarter, prior year. Adjusted EBITDA for the Concentra segment increased 13.0% to $77.7 million for the third
quarter ended September 30, 2019, compared to $68.8 million for the same quarter, prior year. The Adjusted EBITDA margin for
the Concentra segment was 18.4% for the third quarter ended September 30, 2019, compared to 17.0% for the same quarter, prior
year. Certain Concentra key statistics are presented in table VII of this release for both the third quarters ended September 30,
ended September 30, 2019, net operating revenues for the Concentra segment increased 5.0% to $1,231.7 million, compared to