Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Third Quarter Ended September 30,
2022 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- November 3, 2022 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its third quarter ended September 30, 2022, and the declaration of
For the third quarter ended
September 30, 2022, revenue increased 2.2% to $1,567.8 million, compared to $1,534.2 million for the same quarter, prior year. Income
from operations was $91.5 million for the third quarter ended September 30, 2022, compared to $150.3 million for the same quarter,
prior year. For the third quarter ended September 30, 2022, income from operations included $8.1 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, compared to $1.7 million for the same
quarter, prior year. Net income was $38.1 million for the third quarter ended September 30, 2022, compared to $100.2 million for
the same quarter, prior year. Adjusted EBITDA was $153.1 million for the third quarter ended September 30, 2022, compared to $208.6
million for the same quarter, prior year. Earnings per common share was $0.21 for the third quarter ended September 30, 2022, 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.
For the nine months ended
September 30, 2022, revenue increased 2.3% to $4,752.1 million, compared to $4,644.7 million for the same period, prior year. Income
from operations was $316.4 million for the nine months ended September 30, 2022, compared to $636.2 million for the same period,
prior year. For the nine months ended September 30, 2022, income from operations included $23.2 million of other operating income
related to the recognition of payments received under the Provider Relief Fund, compared to $115.8 million for the same period, prior
year. Net income was $160.3 million for the nine months ended September 30, 2022, compared to $433.6 million for the same period,
prior year. Adjusted EBITDA was $498.0 million for the nine months ended September 30, 2022, compared to $808.9 million for the same
period, prior year. Earnings per common share was $1.01 for the nine months ended September 30, 2022, compared to $2.61 for the same
period, prior year. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table IX
In addition to providing
key statistics in tables VII and VIII of this release for both the third quarters and nine months ended September 30, 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.
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, 2022, Select Medical operated 105 critical illness recovery hospitals in 28 states, 31 rehabilitation
hospitals in 12 states, and 1,933 outpatient rehabilitation clinics in 39 states and the District of Columbia. Concentra operated 519
occupational health centers in 41 states. At September 30, 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 third quarter ended
September 30, 2022, revenue for the critical illness recovery hospital segment was $524.6 million, compared to $530.6 million for
the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $11.0 million for the third quarter
ended September 30, 2022, compared to $57.2 million for the same quarter, prior year. The Adjusted EBITDA margin for the critical
illness recovery hospital segment was 2.1% for the third quarter ended September 30, 2022, compared to 10.8% for the same quarter,
prior year. Certain critical illness recovery hospital key statistics are presented in table VII of this release for the third quarters
ended September 30, 2022 and 2021.
For the nine months ended
September 30, 2022, revenue for the critical illness recovery hospital segment increased to $1,672.2 million, compared to $1,669.6
million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $67.0 million for the
nine months ended September 30, 2022, compared to $243.4 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 4.0% for the nine months ended September 30,
2022, compared to 14.6% for the same period, prior year. Certain critical illness recovery hospital key statistics are presented in table
VIII of this release for the nine months ended September 30, 2022 and 2021.
Rehabilitation Hospital Segment
For the third quarter ended
September 30, 2022, revenue for the rehabilitation hospital segment increased 8.0% to $229.4 million, compared to $212.4 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 12.9% to $49.8 million for the third
quarter ended September 30, 2022, compared to $44.1 million for the same quarter, prior year. The Adjusted EBITDA margin for the
rehabilitation hospital segment was 21.7% for the third quarter ended September 30, 2022, compared to 20.7% for the same quarter,
prior year. Certain rehabilitation hospital key statistics are presented in table VII of this release for the third quarters ended September 30,
For the nine months ended
September 30, 2022, revenue for the rehabilitation hospital segment increased 7.3% to $678.9 million, compared to $632.9 million
for the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $142.0 million for the nine months ended
September 30, 2022, compared to $145.4 million for the same period, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 20.9% for the nine months ended September 30, 2022, compared to 23.0% for the same period, prior year. Certain
rehabilitation hospital key statistics are presented in table VIII of this release for the nine months ended September 30, 2022 and
Outpatient Rehabilitation Segment
For the third quarter ended
September 30, 2022, revenue for the outpatient rehabilitation segment increased 3.8% to $285.0 million, compared to $274.5 million
for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $25.7 million for the third quarter ended
September 30, 2022, compared to $38.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 9.0% for the third quarter ended September 30, 2022, compared to 14.1% for the same quarter, prior year. Certain outpatient
rehabilitation key statistics are presented in table VII of this release for the third quarters ended September 30, 2022 and 2021.
For the nine months ended
September 30, 2022, revenue for the outpatient rehabilitation segment increased 4.6% to $844.2 million, compared to $806.9 million
for the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $85.9 million for the nine months ended
September 30, 2022, compared to $110.7 million for the same period, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 10.2% for the nine months ended September 30, 2022, compared to 13.7% for the same period, prior year. Certain outpatient
rehabilitation key statistics are presented in table VIII of this release for the nine months ended September 30, 2022 and 2021.
For the third quarter ended
September 30, 2022, revenue for the Concentra segment increased to $444.6 million, compared to $442.2 million for the same quarter,
prior year. Adjusted EBITDA for the Concentra segment was $90.0 million for the third quarter ended September 30, 2022, compared
to $99.8 million for the same quarter, prior year. For the third quarter ended September 30, 2021, Adjusted EBITDA included $1.6 million
of other operating income related to the recognition of payments received under the Provider Relief Fund. The Adjusted EBITDA margin for
the Concentra segment was 20.2% for the third quarter ended September 30, 2022, compared to 22.6% for the same quarter, prior year.
Certain Concentra key statistics are presented in table VII of this release for the third quarters ended September 30, 2022 and 2021.
For the nine months ended
September 30, 2022, revenue for the Concentra segment was $1,309.4 million, compared to $1,321.4 million for the same period, prior
year. Adjusted EBITDA for the Concentra segment was $272.1 million for the nine months ended September 30, 2022, compared to $318.9
million for the same period, prior year. For the nine months ended September 30, 2021, Adjusted EBITDA included $33.8 million
of other operating income related to the recognition of payments received under the Provider Relief Fund. The Adjusted EBITDA margin for
the Concentra segment was 20.8% for the nine months ended September 30, 2022, compared to 24.1% for the same period, prior year.
Certain Concentra key statistics are presented in table VIII of this release for the nine months ended September 30, 2022 and 2021.
On November 2, 2022,
Select Medical's board of directors declared a cash dividend of $0.125 per share. The dividend will be payable on or about November 29,
2022, to stockholders of record as of the close of business on November 16, 2022.