Full Press Release Details
Select Medical Holdings Corporation Announces
For Its First Quarter Ended March 31, 2023
MECHANICSBURG, PENNSYLVANIA
- May 4, 2023 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2023, and the declaration of a cash
For the first quarter ended
March 31, 2023, revenue increased 4.1% to $1,665.0 million, compared to $1,599.5 million for the same quarter, prior year. Income
from operations increased 45.7% to $151.5 million for the first quarter ended March 31, 2023, compared to $104.0 million for
the same quarter, prior year. Net income increased 52.4% to $85.3 million for the first quarter ended March 31, 2023, compared to
$55.9 million for the same quarter, prior year. Adjusted EBITDA increased 30.6% to $214.1 million for the first quarter ended March 31,
2023, compared to $163.8 million for the same quarter, prior year. Earnings per common share increased 51.3% to $0.56 for the first quarter
ended March 31, 2023, 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 VI of this release.
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, 2023, Select Medical operated 105 critical illness recovery hospitals in 28 states, 32 rehabilitation hospitals in
12 states, 1,936 outpatient rehabilitation clinics in 39 states and the District of Columbia, and 539 occupational health centers in
41 states. At March 31, 2023, 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, 2023, revenue for the critical illness recovery hospital segment was $593.9 million, compared to $601.8 million for the
same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 113.5% to $76.8 million for the
first quarter ended March 31, 2023, compared to $36.0 million for the same quarter, prior year. The Adjusted EBITDA margin for the
critical illness recovery hospital segment was 12.9% for the first quarter ended March 31, 2023, compared to 6.0% 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, 2023 and 2022.
Rehabilitation Hospital Segment
For the first quarter ended
March 31, 2023, revenue for the rehabilitation hospital segment increased 4.9% to $231.5 million, compared to $220.6 million for
the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 11.4% to $47.2 million for the first quarter
ended March 31, 2023, compared to $42.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 20.4% for the first quarter ended March 31, 2023, compared to 19.2% 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, 2023 and 2022.
Outpatient Rehabilitation Segment
For the first quarter ended
March 31, 2023, revenue for the outpatient rehabilitation segment increased 8.8% to $295.9 million, compared to $271.9 million for
the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 13.5% to $30.2 million for the first
quarter ended March 31, 2023, compared to $26.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient
rehabilitation segment was 10.2% for the first quarter ended March 31, 2023, compared to 9.8% 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, 2023 and
For the first quarter ended
March 31, 2023, revenue for the Concentra segment increased 7.8% to $456.3 million, compared to $423.4 million for the same quarter,
prior year. Adjusted EBITDA for the Concentra segment increased 4.8% to $93.7 million for the first quarter ended March 31, 2023,
compared to $89.5 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment was 20.5% for the first
quarter ended March 31, 2023, compared to 21.1% 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, 2023 and 2022.
On May 3, 2023, Select
Medical's Board of Directors declared a cash dividend of $0.125 per share. The dividend will be payable on or about May 31,
2023, to stockholders of record as of the close of business on May 18, 2023.
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.
Select Medical did not repurchase
shares under its authorized stock repurchase program during the three months ended March 31, 2023. Since the inception of the common
stock repurchase program through March 31, 2023, Select Medical has repurchased 48,234,823 shares at a cost of approximately $600.3
million, or $12.45 per share, which includes transaction costs.
Financing Transaction
On February 21, 2023,
Select Medical entered into Amendment No. 6 to its senior secured credit agreement. Amendment No. 6 extended the maturity date
on $530.0 million of the total borrowing capacity of $650.0 million under the revolving credit facility to March 6, 2025; however,
in the event that Select Medical's term loan borrowings under its senior secured credit agreement are not refinanced by January 3,
2025, the maturity date for those revolving credit facility borrowings will be January 3, 2025.
Select Medical reaffirms
its 2023 business outlook for revenue, which was provided most recently in its February 23, 2023 press release. Select Medical continues
to expect consolidated revenue to be in the range of $6.5 billion to $6.7 billion for the full year of 2023. Select Medical is also issuing
its 2023 business outlook for Adjusted EBITDA and fully diluted earnings per common share. Select Medical expects Adjusted EBITDA to be
in the range of $780.0 million to $820.0 million and fully diluted earnings per common share to be in the range of $1.75 to $1.99. A reconciliation
of full year 2023 Adjusted EBITDA expectations to net income is presented in table VII of this release.
Select Medical will host
a conference call regarding its first quarter result and its business outlook on Friday, May 5, 2023, at 9:00am ET. The conference
call will be a live webcast and can be accessed at Select Medical Holdings Corporation's website at www.selectmedicalholdings.com.
A replay of the webcast will be available shortly after the call through the same link.
For listeners wishing to
dial-in via telephone, or participate in the question and answer session, you may pre-register for the call at Select Medical Earnings
Call Registration to obtain your dial-in number and unique passcode.
Certain statements contained
herein that are not descriptions of historical facts are "forward-looking" statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995), including statements related to Select Medical's 2023 and long-term business outlook.
Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such
forward-looking statements due to factors including the following:
Except as required by applicable
law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly
update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not
place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements
are reasonable, we cannot guarantee future results or performance.
Senior Vice President and Treasurer
SOURCE: Select Medical Holdings Corporation