Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Fourth Quarter and Year Ended
MECHANICSBURG, PENNSYLVANIA
- February 25, 2021 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its fourth quarter and year ended December 31, 2020.
For the fourth quarter
ended December 31, 2020, revenue increased 6.2% to $1,460.5 million, compared to $1,374.6 million for the same quarter, prior
year. Income from operations increased 45.4% to $163.3 million for the fourth quarter ended December 31, 2020, compared to $112.4
million for the same quarter, prior year. Income from operations included other operating income of $36.2 million related to the
recognition of payments received under the Provider Relief Fund. Net income increased 134.1% to $102.2 million for the fourth quarter
ended December 31, 2020, compared to $43.7 million for the same quarter, prior year. Net income included pre-tax losses on early
retirement of debt of $19.4 million for the fourth quarter ended December 31, 2019. Adjusted EBITDA increased 28.7% to $221.3 million
for the fourth quarter ended December 31, 2020, compared to $171.9 million for the same quarter, prior year. Earnings per common
share increased to $0.57 on a fully diluted basis for the fourth quarter ended December 31, 2020, compared to $0.24 for the same
quarter, prior year. Adjusted earnings per common share was $0.57 on a fully diluted basis for the fourth quarter ended December
31, 2020, compared to $0.31 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 the fourth quarter ended December 31, 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.
December 31, 2020, revenue increased 1.4% to $5,531.7 million, compared to $5,453.9 million for the prior year. Income from
operations increased 20.3% to $567.7 million for the year ended December 31, 2020, compared to $471.9 million for the prior
year. For the year ended December 31, 2020, income from operations included other operating income of $90.0 million related to
the recognition of payments received under the Provider Relief Fund. Net income increased 71.4% to $344.6 million for the year
ended December 31, 2020, compared to $201.0 million for the prior year. For the year ended December 31, 2020, net income
included pre-tax gains on sales of businesses of $12.4 million. 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. Adjusted
EBITDA increased 12.6% to $800.6 million for the year ended December 31, 2020, compared to $710.9 million for the prior year.
Earnings per common share increased to $1.93 on a fully diluted basis for the year ended December 31, 2020, compared to $1.10
for the prior year. Adjusted earnings per common share was $1.89 on a fully diluted basis for the year ended December 31, 2020,
compared to $1.24 for the prior year. Adjusted earnings per common share excludes the gains on sales of businesses and their related
tax effects for the year ended December 31, 2020. Adjusted earnings per common share excludes the losses on early retirement of
debt and related costs, the gain on sale of businesses, and their related tax effects for the year ended December 31, 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 December 31, 2020, Select Medical operated 99 critical illness recovery hospitals in 28 states,
30 rehabilitation hospitals in 12 states, and 1,788 outpatient rehabilitation clinics in 37 states and the District of Columbia.
Select Medical's joint venture subsidiary Concentra operated 517 occupational health centers in 41 states. At December 31,
2020, Select Medical had operations in 46 states and the District of Columbia. Information about Select Medical is available at
CARES Act Provider Relief Fund
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 the COVID-19 pandemic.
For the three months
and year ended December 31, 2020, Select Medical recognized payments received under the Provider Relief Fund for loss of revenue
and health care related expenses attributable to the COVID-19 pandemic as other operating income. For the three months ended December
31, 2020, other operating income of $36.2 million is included within the operating results of Select Medical's other
activities. For the year ended December 31, 2020, $88.9 million and $1.1 million of other operating income is included within the
operating results of Select Medical's other activities and its Concentra segment, respectively.
Critical Illness Recovery Hospital Segment
For the fourth quarter
ended December 31, 2020, revenue for the critical illness recovery hospital segment increased 18.2% to $537.9 million, compared
to $454.9 million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased
24.5% to $75.3 million for the fourth quarter ended December 31, 2020, compared to $60.5 million for the same quarter, prior year.
The Adjusted EBITDA margin for the critical illness recovery hospital segment was 14.0% for the fourth quarter ended December 31,
2020, compared to 13.3% 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, 2020 and 2019.
December 31, 2020, revenue for the critical illness recovery hospital segment increased 13.1% to $2,077.5 million, compared to
$1,836.5 million for the prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 34.4% to $342.4
million for the year ended December 31, 2020, compared to $254.9 million for the prior year. The Adjusted EBITDA margin for the
critical illness recovery hospital segment was 16.5% for the year ended December 31, 2020, compared to 13.9% for the prior year.
Certain critical illness recovery hospital key statistics are presented in table VIII of this release for both the years ended
December 31, 2020 and 2019.
Rehabilitation Hospital Segment
For the fourth quarter
ended December 31, 2020, revenue for the rehabilitation hospital segment increased 7.2% to $195.9 million, compared to $182.7 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $42.4 million for the fourth quarter
ended December 31, 2020, compared to $43.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 21.6% for the fourth quarter ended December 31, 2020, compared to 23.7% for the same quarter, prior year.
Certain rehabilitation hospital key statistics are presented in table VII of this release for both the fourth quarters ended December
December 31, 2020, revenue for the rehabilitation hospital segment increased 9.5% to $734.7 million, compared to $671.0 million
for the prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 12.8% to $153.2 million for the year ended
December 31, 2020, compared to $135.9 million for the prior year. The Adjusted EBITDA margin for the rehabilitation hospital segment
was 20.9% for the year ended December 31, 2020, compared to 20.2% 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. Certain rehabilitation
hospital key statistics are presented in table VIII of this release for both the years ended December 31, 2020 and 2019.
Outpatient Rehabilitation Segment
For the fourth quarter
ended December 31, 2020, revenue for the outpatient rehabilitation segment was $257.5 million, compared to $271.9 million for the
same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $27.7 million for the fourth quarter ended
December 31, 2020, compared to $40.2 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 10.8% for the fourth quarter ended December 31, 2020, compared to 14.8% 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, 2020 and
December 31, 2020, revenue for the outpatient rehabilitation segment was $919.9 million, compared to $1,046.0 million for the prior
year. Adjusted EBITDA for the outpatient rehabilitation segment was $79.2 million for the year ended December 31, 2020, compared
to $151.8 million for the prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 8.6% for the year
ended December 31, 2020, compared to 14.5% for the prior year. Certain outpatient rehabilitation key statistics are presented in
table VIII of this release for both the years ended December 31, 2020 and 2019.
For the fourth quarter
ended December 31, 2020, revenue for the Concentra segment increased 0.4% to $398.7 million, compared to $397.1 million for the
same quarter, prior year. Adjusted EBITDA for the Concentra segment increased 22.9% to $69.4 million for the fourth quarter ended
December 31, 2020, compared to $56.5 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment
was 17.4% for the fourth quarter ended December 31, 2020, compared to 14.2% for the same quarter, prior year. Certain Concentra