Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Fourth Quarter and Year Ended
MECHANICSBURG, PENNSYLVANIA
- February 20, 2020 - Select Medical Holdings Corporation ("Select Medical") (NYSE: SEM) today announced
results for its fourth quarter and year ended December 31, 2019.
the fourth quarter ended December 31, 2019, net operating revenues increased 8.7% to $1,374.6 million, compared to $1,264.7
million for the same quarter, prior year. Income from operations increased 27.3% to $112.4 million for the fourth quarter ended
December 31, 2019, compared to $88.3 million for the same quarter, prior year. Net income increased 46.9% to $43.7 million for
the fourth quarter ended December 31, 2019, compared to $29.7 million for the same quarter, prior year. For the fourth quarter
ended December 31, 2019, net income included pre-tax losses on early retirement of debt of $19.4 million. For the fourth quarter
ended December 31, 2018, net income included pre-tax losses on early retirement of debt of $3.9 million. Adjusted EBITDA increased
16.9% to $171.9 million for the fourth quarter ended December 31, 2019, compared to $147.1 million for the same quarter, prior
year. Earnings per common share increased to $0.24 on a fully diluted basis for the fourth quarter ended December 31, 2019, compared
to $0.18 for the same quarter, prior year. Adjusted earnings per common share was $0.31 on a fully diluted basis for the fourth
quarter ended December 31, 2019, compared to $0.20 for the same quarter, prior year. Adjusted earnings per common share excludes
the losses on early retirement of debt and their related tax effects for both the fourth quarters ended December 31, 2019
and 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 December 31, 2019, net operating revenues increased 7.3% to $5,453.9 million, compared to $5,081.3 million for the
prior year. Income from operations increased 13.1% to $471.9 million for the year ended December 31, 2019, compared to
$417.3 million for the prior year. Net income increased 13.6% to $201.0 million for the year ended December 31, 2019,
compared to $176.9 million for the prior year. For the year ended December 31, 2019, net income included pre-tax losses on
early retirement of debt of $38.1 million and a pre-tax gain on sale of businesses of $6.5 million. For the year ended
December 31, 2018, net income included pre-tax losses on early retirement of debt of $14.2 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 10.2% to $710.9 million for the year ended December 31, 2019, compared to $645.2 million for the prior year.
Earnings per common share increased to $1.10 on a fully diluted basis for the year ended December 31, 2019, compared to
$1.02 for the prior year. Adjusted earnings per common share was $1.24 on a fully diluted basis for the year ended December
31, 2019, compared to $1.03 for the prior year. Adjusted earnings per common share excludes the losses on early retirement of
debt and related costs and gain on sale of businesses and their related tax effects for the year ended December 31,
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 year ended December 31, 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
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. Select Medical's reportable segments
include the critical illness recovery hospital segment, the rehabilitation hospital segment, the outpatient rehabilitation segment,
and the Concentra segment. As of December 31, 2019, Select Medical operated 101 critical illness recovery hospitals in 28 states,
29 rehabilitation hospitals in 12 states, and 1,740 outpatient rehabilitation clinics in 37 states and the District of Columbia.
Select Medical's joint venture subsidiary Concentra operated 521 occupational health centers in 41 states. Concentra also
provides contract services at employer worksites and Department of Veterans Affairs community-based outpatient clinics. At December
31, 2019, Select Medical had operations in 47 states and the District of Columbia. Information about Select Medical is available
Critical Illness Recovery Hospital Segment
For the fourth quarter
ended December 31, 2019, net operating revenues for the critical illness recovery hospital segment increased 6.7% to $454.9 million,
compared to $426.3 million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment
increased 8.0% to $60.5 million for the fourth quarter ended December 31, 2019, compared to $56.0 million for the same quarter,
prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 13.3% for the fourth quarter ended
December 31, 2019, compared to 13.1% for the same quarter, prior year. Certain critical illness recovery hospital key statistics
are presented in table VII of this release for both the fourth quarters ended December 31, 2019 and 2018.
December 31, 2019, net operating revenues for the critical illness recovery hospital segment increased 4.7% to $1,836.5 million,
compared to $1,753.6 million for the prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 4.9%
to $254.9 million for the year ended December 31, 2019, compared to $243.0 million for the prior year. The Adjusted EBITDA margin
for the critical illness recovery hospital segment was 13.9% for both the years ended December 31, 2019 and 2018. Certain critical
illness recovery hospital key statistics are presented in table VIII of this release for both the years ended December 31, 2019
Rehabilitation Hospital Segment
For the fourth quarter
ended December 31, 2019, net operating revenues for the rehabilitation hospital segment increased 20.9% to $182.7 million, compared
to $151.1 million for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 51.4% to
$43.3 million for the fourth quarter ended December 31, 2019, compared to $28.6 million for the same quarter, prior year. The Adjusted
EBITDA margin for the rehabilitation hospital segment was 23.7% for the fourth quarter ended December 31, 2019, compared to 18.9%
for the same quarter, prior year. For the fourth quarter ended December 31, 2018, the Adjusted EBITDA results for the rehabilitation
hospital segment include start-up losses of approximately $0.9 million. Certain rehabilitation hospital key statistics are presented
in table VII of this release for both the fourth quarters ended December 31, 2019 and 2018.
December 31, 2019, net operating revenues for the rehabilitation hospital segment increased 14.9% to $671.0 million, compared to
$583.7 million for the prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 24.7% to $135.9 million for
the year ended December 31, 2019, compared to $108.9 million for the prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 20.2% for the year ended December 31, 2019, compared to 18.7% for the prior year. The Adjusted EBITDA results
for the rehabilitation hospital segment include start-up losses of approximately $8.8 million for the year ended December 31, 2019,
compared to approximately $4.7 million for the prior year. Certain rehabilitation hospital key statistics are presented in table
VIII of this release for both the years ended December 31, 2019 and 2018.
Outpatient Rehabilitation Segment
the fourth quarter ended December 31, 2019, net operating revenues for the outpatient rehabilitation segment increased 7.7%
to $271.9 million, compared to $252.4 million for the same quarter, prior year. Adjusted EBITDA for
the outpatient rehabilitation segment increased 14.9% to $40.2 million for the fourth quarter ended December 31, 2019, compared
to $35.0 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 14.8%
for the fourth quarter ended December 31, 2019, compared to 13.9% for the same quarter, prior year. Certain outpatient rehabilitation
key statistics are presented in table VII of this release for both the fourth quarters ended December 31, 2019 and 2018.
December 31, 2019, net operating revenues for the outpatient rehabilitation segment increased 5.0% to $1,046.0 million, compared
to $995.8 million for the prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 6.9% to $151.8 million
for the year ended December 31, 2019, compared to $142.0 million for the prior year. The Adjusted EBITDA margin for the outpatient
rehabilitation segment was 14.5% for the year ended December 31, 2019, compared to 14.3% for the prior year. Certain outpatient
rehabilitation key statistics are presented in table VIII of this release for both the years ended December 31, 2019 and 2018.
The financial results
for the Concentra segment include U.S. HealthWorks beginning February 1, 2018.
For the fourth quarter
ended December 31, 2019, net operating revenues for the Concentra segment increased 3.4% to $397.1 million, compared to $384.3
million for the same quarter, prior year. Adjusted EBITDA for the Concentra segment increased 6.8% to $56.5 million for the fourth
quarter ended December 31, 2019, compared to $52.9 million for the same quarter, prior year. The Adjusted EBITDA margin for the
Concentra segment was 14.2% for the fourth quarter ended December 31, 2019, compared to 13.8% for the same quarter, prior year.
Certain Concentra key statistics are presented in table VII of this release for both the fourth quarters ended December 31, 2019
December 31, 2019, net operating revenues for the Concentra segment increased 4.6% to $1,628.8 million, compared to $1,557.7 million
for the prior year. Adjusted EBITDA for the Concentra segment increased 9.7% to $276.5 million for the year ended December 31,
2019, compared to $252.0 million for the prior year. The Adjusted EBITDA margin for the Concentra segment was 17.0% for the year
ended December 31, 2019, compared to 16.2% for the prior year. Certain Concentra key statistics are presented in table VIII of
this release for both the years ended December 31, 2019 and 2018.
Stock Repurchase Program
The board of directors