Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Fourth Quarter and Year Ended December 31,
2022 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- February 23, 2023 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its fourth quarter and year ended December 31, 2022 and the declaration
For the fourth quarter ended
December 31, 2022, revenue increased 1.4% to $1,581.5 million, compared to $1,559.8 million for the same quarter, prior year. Income
from operations increased 12.0% to $86.9 million for the fourth quarter ended December 31, 2022, compared to $77.5 million for the
same quarter, prior year. For the fourth quarters ended December 31, 2022 and 2021, income from operations included $0.6 million
and $8.0 million, respectively, 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 $37.7 million for the fourth quarter ended December 31, 2022, compared to $66.3 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. Adjusted EBITDA increased 7.6% to $148.9 million for the fourth quarter ended December 31, 2022, compared to $138.4
million for the same quarter, prior year. Earnings per common share was $0.22 for the fourth quarter ended December 31, 2022, compared
to $0.37 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,
2022, revenue increased 2.1% to $6,333.5 million, compared to $6,204.5 million for the prior year. Income from operations was $403.3
million for the year ended December 31, 2022, compared to $713.8 million for the prior year. For the years ended December 31,
2022 and 2021, income from operations included $23.8 million and $123.8 million, respectively, of other operating income related
to the recognition of payments received under the Provider Relief Fund. Net income was $198.0 million for the year ended December 31,
2022, compared to $499.9 million for the prior year. For the year ended December 31, 2021, net income included pre-tax gains on
sales of businesses of $2.2 million. Adjusted EBITDA was $646.9 million for the year ended December 31, 2022, compared to $947.4
million for the prior year. Earnings per common share was $1.23 for the year ended December 31, 2022, compared to $2.98 for the
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.
In addition to providing
key statistics in tables VII and VIII of this release for both the fourth quarters and years ended December 31, 2022 and 2021, Select
Medical also provided statistics for the comparable periods 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.
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, 2022, Select Medical operated 103 critical illness recovery hospitals in 28 states, 31 rehabilitation
hospitals in 12 states, 1,928 outpatient rehabilitation clinics in 39 states and the District of Columbia, and 540 occupational health
centers in 41 states. At December 31, 2022, Select Medical had operations in 46 states and the District of Columbia. Information
about Select Medical is available at www.selectmedical.com.
Illness Recovery Hospital Segment
the fourth quarter ended December 31, 2022, revenue for the critical illness recovery hospital segment was $561.9 million, compared
to $577.2 million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 80.5%
to $44.3 million for the fourth quarter ended December 31, 2022, compared to $24.6 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 7.9% for the fourth quarter ended December 31, 2022, compared to 4.3% for the same quarter, prior year. Certain
critical illness recovery hospital key statistics are presented in table VII of this release for both the fourth quarters ended December 31,
the year ended December 31, 2022, revenue for the critical illness recovery hospital segment was $2,234.1 million, compared to $2,246.8
million for the prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $111.3 million for the year ended
December 31, 2022, compared to $268.0 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 5.0% for the year ended December 31, 2022, compared
to 11.9% 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, 2022 and 2021.
the fourth quarter ended December 31, 2022, revenue for the rehabilitation hospital segment increased 9.9% to $237.9 million, compared
to $216.4 million for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 42.5% to $56.0
million for the fourth quarter ended December 31, 2022, compared to $39.3 million for the same quarter, prior year. The Adjusted
EBITDA margin for the rehabilitation hospital segment was 23.6% for the fourth quarter ended December 31, 2022, compared to 18.2%
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, 2022 and 2021.
the year ended December 31, 2022, revenue for the rehabilitation hospital segment increased 7.9% to $916.8 million, compared to
$849.3 million for the prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 7.2% to $198.0 million for the year
ended December 31, 2022, compared to $184.7 million for the prior year. The Adjusted EBITDA margin for the rehabilitation hospital
segment was 21.6% for the year ended December 31, 2022, compared to 21.7% for the prior year. Certain rehabilitation hospital key
statistics are presented in table VIII of this release for both the years ended December 31, 2022 and 2021.
Rehabilitation Segment
the fourth quarter ended December 31, 2022, revenue for the outpatient rehabilitation segment increased 1.3% to $281.1 million,
compared to $277.5 million for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $15.9 million
for the fourth quarter ended December 31, 2022, compared to $27.6 million for the same quarter, prior year. The Adjusted EBITDA
margin for the outpatient rehabilitation segment was 5.7% for the fourth quarter ended December 31, 2022, compared to 9.9% 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, 2022 and 2021.
the year ended December 31, 2022, revenue for the outpatient rehabilitation segment increased 3.8% to $1,125.3 million, compared
to $1,084.4 million for the prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $101.9 million for the year ended
December 31, 2022, compared to $138.3 million for the prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment
was 9.1% for the year ended December 31, 2022, compared to 12.8% for the prior year. Certain outpatient rehabilitation key statistics
are presented in table VIII of this release for both the years ended December 31, 2022 and 2021.
the fourth quarter ended December 31, 2022, revenue for the Concentra segment increased 1.1% to $415.0 million, compared to $410.6
million for the same quarter, prior year. Adjusted EBITDA for the Concentra segment was $62.2 million for the fourth quarter ended December 31,
2022, compared to $70.7 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment was 15.0% for
the fourth quarter ended December 31, 2022, compared to 17.2% for the same quarter, prior year. Certain Concentra key statistics
are presented in table VII of this release for both the fourth quarters ended December 31, 2022 and 2021.
the year ended December 31, 2022, revenue for the Concentra segment was $1,724.4 million, compared to $1,732.0 million for the prior
year. Adjusted EBITDA for the Concentra segment was $334.3 million for the year ended December 31, 2022, compared to $389.6 million
for the prior year. For the year ended December 31, 2021, Adjusted EBITDA included $34.7 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 19.4%
for the year ended December 31, 2022, compared to 22.5% for the prior year. Certain Concentra key statistics are presented in table
VIII of this release for both the years ended December 31, 2022 and 2021.
February 16, 2023, Select Medical's board of directors declared a cash dividend of $0.125 per share. The dividend will be
payable on or about March 15, 2023 to stockholders of record as of the close of business on March 3, 2023.
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.
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