Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Second Quarter Ended June 30, 2021
MECHANICSBURG, PENNSYLVANIA
- August 5, 2021 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its second quarter ended June 30, 2021 and the declaration of a cash
For the second quarter ended
June 30, 2021, revenue increased 26.9% to $1,564.0 million, compared to $1,232.7 million for the same quarter, prior year. Income
from operations increased 137.6% to $284.0 million for the second quarter ended June 30, 2021, compared to $119.5 million for
the same quarter, prior year. Income from operations included $98.0 million of other operating income related to the recognition
of payments received under the Provider Relief Fund for the second quarter ended June 30, 2021, compared to $55.0 million for
the same quarter, prior year. Refer to "CARES Act Provider Relief Fund" for further discussion. Net income increased
190.7% to $196.2 million for the second quarter ended June 30, 2021, compared to $67.5 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
increased 91.3% to $342.0 million for the second quarter ended June 30, 2021, compared to $178.8 million for the same quarter, prior
year. Earnings per common share increased to $1.22 for the second quarter ended June 30, 2021, compared to $0.39 for the same quarter,
prior year. Adjusted earnings per common share was $1.22 for the second quarter ended June 30, 2021, compared to $0.38 for the same
quarter, prior year. Adjusted earnings per common share excluded 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
For the six months ended
June 30, 2021, revenue increased 17.5% to $3,110.5 million, compared to $2,647.4 million for the same period, prior year. Income
from operations increased 95.8% to $486.0 million for the six months ended June 30, 2021, compared to $248.2 million for the same
period, prior year. Income from operations included $114.1 million of other operating income related to the recognition of payments received
under the Provider Relief Fund for the six months ended June 30, 2021, compared to $55.0 million for the same period, prior year.
Refer to "CARES Act Provider Relief Fund" for further discussion. Net income increased 141.7% to $333.4 million for
the six months ended June 30, 2021, compared to $137.9 million for the same period, prior year. Net income included a pre-tax gain
on sale of businesses of $7.5 million for the six months ended June 30, 2020. Adjusted EBITDA increased 64.0% to $600.4 million
for the six months ended June 30, 2021, compared to $366.1 million for the same period, prior year. Earnings per common share increased
to $2.04 for the six months ended June 30, 2021, compared to $0.78 for the same period, prior year. Adjusted earnings per common
share was $2.04 for the six months ended June 30, 2021, compared to $0.75 for the same period, prior year. Adjusted earnings per
common share excluded the gain on sale of businesses and its related tax effects for the six months 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.
Please refer to "Effects
of the COVID-19 Pandemic on Select Medical's Results of Operations during the Three and Six Months Ended June 30, 2020 and
2021" below for further discussion regarding the impact of the coronavirus disease 2019 ("COVID-19") pandemic on
Select Medical's operating results.
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 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, 2021, Select Medical operated 99 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals
in 12 states, and 1,833 outpatient rehabilitation clinics in 38 states and the District of Columbia. Select Medical's joint venture
subsidiary Concentra operated 518 occupational health centers in 41 states. At June 30, 2021, Select Medical had operations in 46
states and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.
CARES Act Provider Relief Fund
On March 27, 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 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 COVID-19, and for reimbursing eligible health care providers for health care related expenses and lost revenues that
are attributable to COVID-19.
Select Medical recognized
$98.0 million and $114.1 million of payments received under the Provider Relief Fund as other operating income during the three and
six months ended June 30, 2021. Select Medical recognized $55.0 million of payments received under the Provider Relief Fund as other
operating income during both the three and six months ended June 30, 2020.
Critical Illness Recovery Hospital Segment
For the second quarter ended
June 30, 2021, revenue for the critical illness recovery hospital segment increased 4.7% to $544.1 million, compared to $519.6 million
for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $72.9 million for the second
quarter ended June 30, 2021, compared to $89.7 million for the same quarter, prior year. The Adjusted EBITDA margin for the critical
illness recovery hospital segment was 13.4% for the second quarter ended June 30, 2021, compared to 17.3% for the same quarter, prior
year. Certain critical illness recovery hospital key statistics are presented in table VII of this release for both the second quarters
ended June 30, 2021 and 2020.
For the six months ended
June 30, 2021, revenue for the critical illness recovery hospital segment increased 11.6% to $1,138.9 million, compared to $1,020.1
million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 4.4% to $186.2 million
for the six months ended June 30, 2021, compared to $178.3 million for the same period, prior year. For the six months ended June 30,
2021, Adjusted EBITDA included $17.9 million of other operating income related to the outcome of litigation with the Centers for Medicare &
Medicaid Services. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 16.3% for the six months ended June 30,
2021, compared to 17.5% 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, 2021 and 2020.
Rehabilitation Hospital Segment
For the second quarter ended
June 30, 2021, revenue for the rehabilitation hospital segment increased 26.1% to $212.7 million, compared to $168.7 million for
the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 83.9% to $50.8 million for the second
quarter ended June 30, 2021, compared to $27.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 23.9% for the second quarter ended June 30, 2021, compared to 16.4% for the same quarter, prior year. Certain
rehabilitation hospital key statistics are presented in table VII of this release for both the second quarters ended June 30, 2021
For the six months ended
June 30, 2021, revenue for the rehabilitation hospital segment increased 19.9% to $420.5 million, compared to $350.7 million for
the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 53.1% to $101.3 million for the six months
ended June 30, 2021, compared to $66.2 million for the same period, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 24.1% for the six months ended June 30, 2021, compared to 18.9% for the same period, prior year. Certain rehabilitation
hospital key statistics are presented in table VIII of this release for both the six months ended June 30, 2021 and 2020.
Outpatient Rehabilitation Segment
For the second quarter ended
June 30, 2021, revenue for the outpatient rehabilitation segment increased 67.8% to $280.4 million, compared to $167.1 million for
the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $45.6 million for the second quarter ended
June 30, 2021, compared to Adjusted EBITDA losses of $6.3 million for the same quarter, prior year. The Adjusted EBITDA margin for
the outpatient rehabilitation segment was 16.3% for the second quarter ended June 30, 2021, compared to (3.8)% 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, 2021 and 2020.
For the six months ended
June 30, 2021, revenue for the outpatient rehabilitation segment increased 26.0% to $532.4 million, compared to $422.4 million for
the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased to $72.0 million for the six months ended
June 30, 2021, compared to $20.8 million for the same period, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 13.5% for the six months ended June 30, 2021, compared to 4.9% 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, 2021 and 2020.
For the second quarter ended
June 30, 2021, revenue for the Concentra segment increased 46.1% to $456.4 million, compared to $312.3 million for the same quarter,