Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Fourth Quarter and Year Ended December 31,
2021 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- February 24, 2022 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its fourth quarter and year ended December 31, 2021 and the declaration
For the fourth quarter ended
December 31, 2021, revenue increased 6.8% to $1,559.8 million, compared to $1,460.5 million for the same quarter, prior year. Income
from operations was $77.5 million for the fourth quarter ended December 31, 2021, compared to $163.3 million for the same quarter,
prior year. Income from operations included $8.0 million and $36.2 million of other operating income related to the recognition of payments
received under the Provider Relief Fund for the fourth quarters ended December 31, 2021 and 2020, respectively. Refer to "CARES
Act Provider Relief Fund" for further discussion. Net income was $66.3 million for the fourth quarter ended December 31,
2021, compared to $102.2 million for the same quarter, prior year. For the fourth quarter ended December 31, 2021, net income included
a pre-tax gain on sale of businesses of $2.2 million. For the fourth quarter ended December 31, 2020, net income included a pre-tax
loss on sale of businesses of $0.3 million. Adjusted EBITDA was $138.4 million for the fourth quarter ended December 31, 2021, compared
to $221.3 million for the same quarter, prior year. Earnings per common share was $0.37 for the fourth quarter ended December 31,
2021, compared to $0.57 for the same quarter, prior year. 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 year ended December 31,
2021, revenue increased 12.2% to $6,204.5 million, compared to $5,531.7 million for the prior year. Income from operations increased 25.7%
to $713.8 million for the year ended December 31, 2021, compared to $567.7 million for the prior year. Income from operations included
$123.8 million and $90.0 million of other operating income related to the recognition of payments received under the Provider Relief Fund
for the years ended December 31, 2021 and 2020, respectively. Refer to "CARES Act Provider Relief Fund" for further
discussion. Net income increased 45.1% to $499.9 million for the year ended December 31, 2021, compared to $344.6 million for the
prior year. For the years ended December 31, 2021 and 2020, net income included pre-tax gains on sales of businesses of $2.2 million
and $12.4 million, respectively. Adjusted EBITDA increased 18.3% to $947.4 million for the year ended December 31, 2021, compared
to $800.6 million for the prior year. Earnings per common share increased to $2.98 for the year ended December 31, 2021, compared
to $1.93 for the prior year. Adjusted earnings per common share was $2.98 for the year ended December 31, 2021, compared to $1.89
for the prior year. Adjusted earnings per common share excluded the gains on sales of businesses and their related tax effects for both
the years ended December 31, 2021 and 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 December 31, 2021, Select Medical operated 104 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals
in 12 states, and 1,881 outpatient rehabilitation clinics in 38 states and the District of Columbia. Concentra operated 518 occupational
health centers in 41 states. At December 31, 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 months and
year ended December 31, 2021, Select Medical recognized $8.0 million and $123.8 million of payments received under the Provider Relief
Fund as other operating income, respectively. For the three months and year ended December 31, 2020, Select Medical recognized $36.2
million and $90.0 million of payments received under the Provider Relief Fund as other operating income, respectively.
Critical Illness Recovery Hospital Segment
For the fourth quarter ended
December 31, 2021, revenue for the critical illness recovery hospital segment increased 7.3% to $577.2 million, compared to $537.9
million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $24.6 million for the
fourth quarter ended December 31, 2021, compared to $75.3 million for the same quarter, prior year. For the fourth quarter ended
December 31, 2021, Adjusted EBITDA included $2.0 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 4.3%
for the fourth quarter ended December 31, 2021, compared to 14.0% 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, 2021 and 2020.
For the year ended December 31,
2021, revenue for the critical illness recovery hospital segment increased 8.1% to $2,246.8 million, compared to $2,077.5 million for
the prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $268.0 million for the year ended December 31,
2021, compared to $342.4 million for the prior year. For the year ended December 31, 2021, Adjusted EBITDA included $19.9 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 11.9% for the year ended December 31, 2021, compared to 16.5%
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, 2021 and 2020.
Rehabilitation Hospital Segment
For the fourth quarter ended
December 31, 2021, revenue for the rehabilitation hospital segment increased 10.5% to $216.4 million, compared to $195.9 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $39.3 million for the fourth quarter ended
December 31, 2021, compared to $42.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 18.2% for the fourth quarter ended December 31, 2021, compared to 21.6% 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 31,
For the year ended December 31,
2021, revenue for the rehabilitation hospital segment increased 15.6% to $849.3 million, compared to $734.7 million for the prior year.
Adjusted EBITDA for the rehabilitation hospital segment increased 20.6% to $184.7 million for the year ended December 31, 2021, compared
to $153.2 million for the prior year. The Adjusted EBITDA margin for the rehabilitation hospital segment was 21.7% for the year ended
December 31, 2021, compared to 20.9% for the prior year. Certain rehabilitation hospital key statistics are presented in table VIII
of this release for both the years ended December 31, 2021 and 2020.
Outpatient Rehabilitation Segment
For the fourth quarter ended
December 31, 2021, revenue for the outpatient rehabilitation segment increased 7.8% to $277.5 million, compared to $257.5 million
for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $27.6 million for the fourth quarter ended
December 31, 2021, compared to $27.7 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 9.9% for the fourth quarter ended December 31, 2021, compared to 10.8% 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, 2021 and
For the year ended December 31,
2021, revenue for the outpatient rehabilitation segment increased 17.9% to $1,084.4 million, compared to $919.9 million for the prior
year. Adjusted EBITDA for the outpatient rehabilitation segment increased 74.7% to $138.3 million for the year ended December 31,
2021, compared to $79.2 million for the prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 12.8% for
the year ended December 31, 2021, compared to 8.6% for the prior year. Certain outpatient rehabilitation key statistics are presented
in table VIII of this release for both the years ended December 31, 2021 and 2020.
For the fourth quarter ended
December 31, 2021, revenue for the Concentra segment increased 3.0% to $410.6 million, compared to $398.7 million for the same quarter,
prior year. Adjusted EBITDA for the Concentra segment increased 1.9% to $70.7 million for the fourth quarter ended December 31, 2021,