Full Press Release Details
Select Medical Holdings
Corporation Announces Results
For Its First Quarter
Ended March 31, 2022 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- May 5, 2022 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2022 and the declaration of a cash
For the first quarter ended
March 31, 2022, revenue increased 3.4% to $1,599.5 million, compared to $1,546.5 million for the same quarter, prior year. Income
from operations was $104.0 million for the first quarter ended March 31, 2022, compared to $202.0 million for the same quarter,
prior year. For the first quarter ended March 31, 2021, income from operations included $16.1 million of other operating income
related to the recognition of payments received under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act")
Public Health and Social Services Emergency Fund, also referred to as the Provider Relief Fund. Net income was $55.9 million for the
first quarter ended March 31, 2022, compared to $137.2 million for the same quarter, prior year. Adjusted EBITDA was $163.8 million
for the first quarter ended March 31, 2022, compared to $258.3 million for the same quarter, prior year. Earnings per common share
was $0.37 for the first quarter ended March 31, 2022, compared to $0.82 for the same quarter, prior year. The definition of Adjusted
EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table VI of this release.
In addition to providing
key statistics in table V of this release for both the first quarters ended March 31, 2022 and 2021, Select Medical also provided
statistics for the comparable period in 2019. Select Medical believes this additional data provides insight into how it has performed
in comparison to the year prior to the widespread emergence of the coronavirus disease 2019 ("COVID-19") in the United States.
The effects of the COVID-19 pandemic, including the duration and extent of disruption on our operations, continues to create uncertainties
about Select Medical's future operating results and financial condition. Please refer to the risk factors in Item 1A and the section
titled "Effects of the COVID-19 Pandemic on our Results of Operations" in Item 7 of our Annual Report on Form 10-K
for the year ended December 31, 2021 for further discussion.
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 March 31, 2022, Select Medical operated 105 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals in
12 states, and 1,901 outpatient rehabilitation clinics in 38 states and the District of Columbia. Concentra operated 518 occupational
health centers in 41 states. At March 31, 2022, Select Medical had operations in 46 states and the District of Columbia. Information
about Select Medical is available at www.selectmedical.com.
Critical Illness Recovery Hospital Segment
For the first quarter ended
March 31, 2022, revenue for the critical illness recovery hospital segment increased 1.2% to $601.8 million, compared to $594.9
million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $36.0 million for the
first quarter ended March 31, 2022, compared to $113.3 million for the same quarter, prior year. For the first quarter ended March
31, 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 6.0% for the first
quarter ended March 31, 2022, compared to 19.0% for the same quarter, prior year. Certain critical illness recovery hospital key
statistics are presented in table V of this release for the first quarters ended March 31, 2022 and 2021.
Rehabilitation Hospital Segment
For the first quarter ended
March 31, 2022, revenue for the rehabilitation hospital segment increased 6.2% to $220.6 million, compared to $207.8 million for
the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $42.4 million for the first quarter ended March 31,
2022, compared to $50.5 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation hospital segment
was 19.2% for the first quarter ended March 31, 2022, compared to 24.3% for the same quarter, prior year. Certain rehabilitation
hospital key statistics are presented in table V of this release for the first quarters ended March 31, 2022 and 2021.
Outpatient Rehabilitation Segment
For the first quarter ended
March 31, 2022, revenue for the outpatient rehabilitation segment increased 7.9% to $271.9 million, compared to $252.0 million for
the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 1.0% to $26.6 million for the first
quarter ended March 31, 2022, compared to $26.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient
rehabilitation segment was 9.8% for the first quarter ended March 31, 2022, compared to 10.4% for the same quarter, prior year.
Certain outpatient rehabilitation key statistics are presented in table V of this release for the first quarters ended March 31,
For the first quarter ended
March 31, 2022, revenue for the Concentra segment increased to $423.4 million, compared to $422.8 million for the same quarter,
prior year. Adjusted EBITDA for the Concentra segment increased 9.1% to $89.5 million for the first quarter ended March 31, 2022,
compared to $82.0 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment was 21.1% for the first
quarter ended March 31, 2022, compared to 19.4% for the same quarter, prior year. Certain Concentra key statistics are presented
in table V of this release for the first quarters ended March 31, 2022 and 2021.
On May 5, 2022, Select
Medical's board of directors declared a cash dividend of $0.125 per share. The dividend will be payable on or about June 1,
2022 to stockholders of record as of the close of business on May 19, 2022.
There is no assurance that
future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of Select Medical's
board of directors after taking into account various factors, including, but not limited to, Select Medical's financial condition,
operating results, available cash and current and anticipated cash needs, the terms of Select Medical's indebtedness, and other
factors Select Medical's board of directors may deem to be relevant.
Stock Repurchase Program
The board of directors of
Select Medical has authorized a common stock repurchase program to repurchase up to $1.0 billion worth of shares of its common stock.
The common stock repurchase program will remain in effect until December 31, 2023, unless further extended or earlier terminated
by the board of directors. Stock repurchases under this program may be made in the open market or through privately negotiated transactions,
and at times and in such amounts as Select Medical deems appropriate. Select Medical funds this program with cash on hand and borrowings
under its revolving credit facility.
During the first quarter
ended March 31, 2022, Select Medical repurchased 2,128,494 shares at a cost of approximately $51.7 million, or $24.28 per share,
which includes transaction costs. Since the inception of the common stock repurchase program through March 31, 2022, Select Medical
has repurchased 42,480,122 shares at a cost of approximately $466.9 million, or $10.99 per share, which includes transaction costs.
Business Outlook for Revenue
Select Medical reaffirms
its 2022 business outlook for revenue, which was provided most recently in its February 24, 2022 press release. Select Medical continues
to expect consolidated revenue to be in the range of $6.25 billion to $6.40 billion for the full year of 2022. Select Medical is also
reaffirming its previously issued three-year compound annual growth rate target for revenue only, which is expected to be in the range
of 4% to 6% for 2021 through 2023.
Select Medical intends to
address its business outlook and target compound annual growth rates for Adjusted EBITDA and earnings per common share when the labor
Select Medical will host
a conference call regarding its first quarter results, as well as its business outlook for revenue
and the impact of the COVID-19 pandemic on each of its reportable segments, on Friday, May 6, 2022, at 9:00am ET. The domestic
dial in number for the call is 1-866-440-2669. The international dial in number is 1-409-220-9844. The conference ID for the call is
5892378. The conference call will be webcast simultaneously and can be accessed at Select Medical Holdings Corporation's website
For those unable to participate
in the conference call, a replay will be available until 12:00pm ET, May 13, 2022. The replay number is 1-855-859-2056 (domestic) or
1-404-537-3406 (international). The conference ID for the replay will be 5892378. The replay can also be accessed at Select Medical Holdings
Corporation's website, www.selectmedicalholdings.com.
Certain statements contained