Full Press Release Details
Holdings Corporation Announces Results
For Its Second Quarter Ended June 30, 2020
MECHANICSBURG, PENNSYLVANIA
- July 30, 2020 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its second quarter ended June 30, 2020.
For the second quarter
ended June 30, 2020, net operating revenues were $1,232.7 million, compared to $1,361.4 million for the same quarter, prior
year. Income from operations was $119.5 million for the second quarter ended June 30, 2020, compared to $124.9 million
for the same quarter, prior year. For the second quarter ended June 30, 2020, income from operations included other operating
income of $55.0 million related to the recognition of payments received under the Public Health and Social Services Emergency Fund,
also referred to as the Provider Relief Fund, for loss of revenue and health care related expenses attributable to the coronavirus
disease 2019 ("COVID-19"). Net income increased 12.5% to $67.5 million for the second quarter ended June 30, 2020,
compared to $60.0 million for the same quarter, prior year. Net income included a pre-tax gain on sale of businesses of $0.3 million
for the second quarter ended June 30, 2020. Adjusted EBITDA was $178.8 million for the second quarter ended June 30,
2020, compared to $186.2 million for the same quarter, prior year. Earnings per common share was $0.39 on a fully diluted basis
for the second quarter ended June 30, 2020, compared to $0.33 for the same quarter, prior year. Adjusted earnings per common
share was $0.38 on a fully diluted basis for the second quarter ended June 30, 2020, compared to $0.33 for the same quarter,
prior year. Adjusted earnings per common share excludes the gain on sale of businesses and its related tax effects for the second
quarter ended June 30, 2020. 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 June 30, 2020, net operating revenues were $2,647.4 million, compared to $2,686.0 million for the same period, prior
year. Income from operations increased 4.9% to $248.2 million for the six months ended June 30, 2020, compared to $236.6 million
for the same period, prior year. For the six months ended June 30, 2020, income from operations included other operating income
of $55.0 million related to the recognition of payments received under the Provider Relief Fund for loss of revenue and health
care related expenses attributable to COVID-19. Net income increased 21.7% to $137.9 million for the six months ended June 30,
2020, compared to $113.3 million for the same period, prior year. Net income included a pre-tax gain on sale of businesses of $7.5
million and $6.5 million for the six months ended June 30, 2020 and 2019, respectively. Adjusted EBITDA increased 2.7% to
$366.1 million for the six months ended June 30, 2020, compared to $356.4 million for the same period, prior year. Earnings
per common share was $0.78 on a fully diluted basis for the six months ended June 30, 2020, compared to $0.63 for the same
period, prior year. Adjusted earnings per common share was $0.75 on a fully diluted basis for the six months ended June 30,
2020, compared to $0.60 for the same period, prior year. Adjusted earnings per common share excludes the gain on sale of businesses
and related tax effects for both the six months ended June 30, 2020 and 2019. 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.
Please refer to "Effects
of the COVID-19 Pandemic on Select Medical's Results of Operations" below for further discussion.
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 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 June 30, 2020, Select Medical operated 101 critical illness recovery hospitals in 28 states,
29 rehabilitation hospitals in 12 states, and 1,757 outpatient rehabilitation clinics in 37 states and the District of Columbia.
Select Medical's joint venture subsidiary Concentra operated 522 occupational health centers in 41 states. Concentra also
provides contract services at employer worksites and Department of Veterans Affairs community-based outpatient clinics. At June 30,
2020, Select Medical had operations in 47 states and the District of Columbia. Information about Select Medical is available at
CARES Act Provider Relief Fund
2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted. The CARES Act provided additional
waivers, reimbursement, grants and other funds to assist health care providers during the coronavirus disease 2019 ("COVID-19")
pandemic, including $100.0 billion in appropriations for the Public Health and Social Services Emergency Fund, also referred to
as the Provider Relief Fund, to be used for preventing, preparing, and responding to the coronavirus, and for reimbursing eligible
health care providers for lost revenues and health care related expenses that are attributable to COVID-19.
six months ended June 30, 2020, Select Medical recognized approximately $55.0 million of other operating income related to
payments received under the Provider Relief Fund for loss of revenue and health care related expenses attributable to COVID-19.
$54.2 million of other operating income is included within the operating results of Select Medical's other activities;
$0.8 million of other operating income is included in the operating results of Select Medical's Concentra segment.
Critical Illness Recovery Hospital Segment
For the second quarter
ended June 30, 2020, net operating revenues for the critical illness recovery hospital segment increased 12.7% to $519.6 million,
compared to $461.1 million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment
increased 39.9% to $89.7 million for the second quarter ended June 30, 2020, compared to $64.1 million for the same quarter,
prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 17.3% for the second quarter ended
June 30, 2020, compared to 13.9% for the same quarter, prior year. Certain critical illness recovery hospital key statistics
are presented in table VII of this release for both the second quarters ended June 30, 2020 and 2019.
ended June 30, 2020, net operating revenues for the critical illness recovery hospital segment increased 11.0% to $1,020.1
million, compared to $918.7 million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital
segment increased 30.0% to $178.3 million for the six months ended June 30, 2020, compared to $137.1 million for the same
period, prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 17.5% for the six months
ended June 30, 2020, compared to 14.9% for the same period, prior year. Certain critical illness recovery hospital key statistics
are presented in table VIII of this release for both the six months ended June 30, 2020 and 2019.
Rehabilitation Hospital Segment
For the second quarter
ended June 30, 2020, net operating revenues for the rehabilitation hospital segment increased 5.2% to $168.7 million, compared
to $160.4 million for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $27.6 million for
the second quarter ended June 30, 2020, compared to $30.0 million for the same quarter, prior year. The Adjusted EBITDA margin
for the rehabilitation hospital segment was 16.4% for the second quarter ended June 30, 2020, compared to 18.7% for the same
quarter, prior year. For the second quarter ended June 30, 2019, the Adjusted EBITDA results for the rehabilitation hospital
segment included start-up losses of approximately $6.0 million. Certain rehabilitation hospital key statistics are presented in
table VII of this release for both the second quarters ended June 30, 2020 and 2019.
ended June 30, 2020, net operating revenues for the rehabilitation hospital segment increased 11.4% to $350.7 million, compared
to $314.9 million for the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 18.7% to $66.2
million for the six months ended June 30, 2020, compared to $55.8 million for the same period, prior year. The Adjusted EBITDA
margin for the rehabilitation hospital segment was 18.9% for the six months ended June 30, 2020, compared to 17.7% for the
same period, prior year. For the six months ended June 30, 2019, the Adjusted EBITDA results for the rehabilitation hospital
segment included start-up losses of approximately $8.8 million. Certain rehabilitation hospital key statistics are presented in
table VIII of this release for both the six months ended June 30, 2020 and 2019.
Outpatient Rehabilitation Segment
For the second quarter
ended June 30, 2020, net operating revenues for the outpatient rehabilitation segment were $167.1 million, compared to $261.9
million for the same quarter, prior year. The outpatient rehabilitation segment incurred Adjusted EBITDA losses of $6.3 million
for the second quarter ended June 30, 2020, compared to Adjusted EBITDA of $42.6 million for the same quarter, prior year.
The Adjusted EBITDA margin for the outpatient rehabilitation segment was (3.8)% for the second quarter ended June 30, 2020,
compared to 16.3% for the same quarter, prior year. Certain outpatient rehabilitation key statistics are presented in table VII
of this release for both the second quarters ended June 30, 2020 and 2019.
ended June 30, 2020, net operating revenues for the outpatient rehabilitation segment were $422.4 million, compared to $508.8
million for the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $20.8 million for the six
months ended June 30, 2020, compared to $71.6 million for the same period, prior year. The Adjusted EBITDA margin for the
outpatient rehabilitation segment was 4.9% for the six months ended June 30, 2020, compared to 14.1% for the same period,
prior year. Certain outpatient rehabilitation key statistics are presented in table VIII of this release for both the six months
ended June 30, 2020 and 2019.