Full Press Release Details
Select Medical Holdings
Corporation Announces Results
For Its Third Quarter Ended
September 30, 2021 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- November 4, 2021 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its third quarter ended September 30, 2021 and the declaration of a
For the third quarter ended
September 30, 2021, revenue increased 7.8% to $1,534.2 million, compared to $1,423.9 million for the same quarter, prior year. Income
from operations was $150.3 million for the third quarter ended September 30, 2021, compared to $156.1 million for the same quarter,
prior year. Income from operations included $1.7 million of other operating income related to the recognition of payments received
under the Provider Relief Fund for the third quarter ended September 30, 2021, compared to a reduction of other operating income
of $1.2 million related to payments received under the Provider Relief Fund for the same quarter, prior year. Refer to "CARES
Act Provider Relief Fund" for further discussion. Net income was $100.2 million for the third quarter ended September 30,
2021, compared to $104.5 million for the same quarter, prior year. Net income included pre-tax gains on sales of businesses of $5.1 million
for the third quarter ended September 30, 2020. Adjusted EBITDA was $208.6 million for the third quarter ended September 30,
2021, compared to $213.2 million for the same quarter, prior year. Earnings per common share was $0.57 for both the third quarters ended
September 30, 2021 and 2020. Adjusted earnings per common share was $0.57 for the third quarter ended September 30, 2021, compared
to $0.56 for the same quarter, prior year. Adjusted earnings per common share excluded the gains on sales of businesses and related tax
effects for the third quarter ended September 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.
For the nine months ended
September 30, 2021, revenue increased 14.1% to $4,644.7 million, compared to $4,071.2 million for the same period, prior year. Income
from operations increased 57.4% to $636.2 million for the nine months ended September 30, 2021, compared to $404.3 million for the
same period, prior year. Income from operations included $115.8 million of other operating income related to the recognition of payments
received under the Provider Relief Fund for the nine months ended September 30, 2021, compared to $53.8 million for the same period,
prior year. Refer to "CARES Act Provider Relief Fund" for further discussion. Net income increased 78.9% to $433.6
million for the nine months ended September 30, 2021, compared to $242.4 million for the same period, prior year. Net income included
pre-tax gains on sales of businesses of $12.7 million for the nine months ended September 30, 2020. Adjusted EBITDA increased
39.6% to $808.9 million for the nine months ended September 30, 2021, compared to $579.3 million for the same period, prior year.
Earnings per common share increased to $2.61 for the nine months ended September 30, 2021, compared to $1.35 for the same period,
prior year. Adjusted earnings per common share was $2.61 for the nine months ended September 30, 2021, compared to $1.31 for the
same period, prior year. Adjusted earnings per common share excluded the gains on sales of businesses and related tax effects for the
nine months ended September 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" below for further discussion regarding the impact
of the coronavirus disease 2019 ("COVID-19") pandemic on Select Medical's operating results.
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 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
September 30, 2021, Select Medical operated 100 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals in
12 states, and 1,850 outpatient rehabilitation clinics in 39 states and the District of Columbia. Select Medical's joint venture
subsidiary Concentra operated 519 occupational health centers in 41 states. At September 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 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
For the three and nine months
ended September 30, 2021, Select Medical recognized $1.7 million and $115.8 million of payments received under the Provider
Relief Fund as other operating income, respectively.
For the three months
ended September 30, 2020, Select Medical recognized a reduction to other operating income of $1.2 million related to payments
received under the Provider Relief Fund. This resulted from changes in the terms and conditions associated with the Provider Relief
Fund program. For the nine months ended September 30, 2020, Select Medical recognized $53.8 million of payments received under
the Provider Relief Fund as other operating income.
Critical Illness Recovery Hospital Segment
For the third quarter ended
September 30, 2021, revenue for the critical illness recovery hospital segment increased 2.2% to $530.6 million, compared to $519.5
million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $57.2 million for the
third quarter ended September 30, 2021, compared to $88.8 million for the same quarter, prior year. The Adjusted EBITDA margin for
the critical illness recovery hospital segment was 10.8% for the third quarter ended September 30, 2021, compared to 17.1% for the
same quarter, prior year. Certain critical illness recovery hospital key statistics are presented in table VII of this release for both
the third quarters ended September 30, 2021 and 2020.
For the nine months ended
September 30, 2021, revenue for the critical illness recovery hospital segment increased 8.4% to $1,669.6 million, compared to $1,539.6
million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $243.4 million for the
nine months ended September 30, 2021, compared to $267.1 million for the same period, prior year. For the nine months ended September 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 14.6% for the nine months ended
September 30, 2021, compared to 17.4% for the same period, prior year. Certain critical illness recovery hospital key statistics
are presented in table VIII of this release for both the nine months ended September 30, 2021 and 2020.
Rehabilitation Hospital Segment
For the third quarter ended
September 30, 2021, revenue for the rehabilitation hospital segment increased 13.0% to $212.4 million, compared to $188.1 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $44.1 million for the third quarter ended
September 30, 2021, compared to $44.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 20.7% for the third quarter ended September 30, 2021, 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 third quarters ended September 30,
For the nine months ended
September 30, 2021, revenue for the rehabilitation hospital segment increased 17.5% to $632.9 million, compared to $538.8 million
for the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 31.2% to $145.4 million for the nine
months ended September 30, 2021, compared to $110.8 million for the same period, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 23.0% for the nine months ended September 30, 2021, compared to 20.6% 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, 2021
Outpatient Rehabilitation Segment
For the third quarter
ended September 30, 2021, revenue for the outpatient rehabilitation segment increased 14.4% to $274.5 million, compared to
$240.0 million for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 26.6% to $38.8
million for the third quarter ended September 30, 2021, compared to $30.6 million for the same quarter, prior year. The
Adjusted EBITDA margin for the outpatient rehabilitation segment was 14.1% for the third quarter ended September 30, 2021,
compared to 12.8% 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, 2021 and 2020.
For the nine months ended