Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Third Quarter Ended September 30,
2023 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- November 2, 2023 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its third quarter ended September 30, 2023, and the declaration of
For the third quarter ended
September 30, 2023, revenue increased 6.2% to $1,665.7 million, compared to $1,567.8 million for the same quarter, prior year. Income
from operations increased 42.1% to $130.0 million for the third quarter ended September 30, 2023, compared to $91.5 million
for the same quarter, prior year. For the third quarter ended September 30, 2023, income from operations included $0.5 million of
other operating income, compared to $8.4 million of other operating income for the same quarter, prior year. The other operating income
for the third quarter ended September 30, 2022, was principally related to the recognition of payments received under the Coronavirus
Aid, Relief, and Economic Security Act Public Health and Social Services Emergency Fund, also referred to as the Provider Relief Fund.
Net income increased 59.5% to $60.8 million for the third quarter ended September 30, 2023, compared to $38.1 million for the same
quarter, prior year. Adjusted EBITDA increased 26.6% to $193.8 million for the third quarter ended September 30, 2023, compared to
$153.1 million for the same quarter, prior year. Earnings per common share increased 75.8% to $0.38 for the third quarter ended September 30,
2023, compared to $0.21 for the same quarter, prior year. Adjusted earnings per common share increased 113.7% to $0.46 for the third quarter
ended September 30, 2023, compared to $0.21 for the same quarter, prior year. Adjusted earnings per common share excludes the loss
on early retirement of debt and related costs, and their related tax effects for the third quarter ended September 30, 2023. 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 nine months ended
September 30, 2023, revenue increased 5.3% to $5,005.2 million, compared to $4,752.1 million for the same period, prior year. Income
from operations increased 39.3% to $440.6 million for the nine months ended September 30, 2023, compared to $316.4 million for the
same period, prior year. For the nine months ended September 30, 2023, income from operations included $1.2 million of other operating
income, compared to $23.6 million for the same period, prior year. The other operating income for the nine months ended September 30,
2022, was principally related to the recognition of payments received under the Provider Relief Fund. Net income increased 48.4% to $237.9
million for the nine months ended September 30, 2023, compared to $160.3 million for the same period, prior year. Adjusted EBITDA
increased 26.0% to $627.4 million for the nine months ended September 30, 2023, compared to $498.0 million for the same period, prior
year. Earnings per common share increased 52.8% to $1.55 for the nine months ended September 30, 2023, compared to $1.01 for the
same period, prior year. Adjusted earnings per common share increased 60.8% to $1.63 for the nine months ended September 30, 2023,
compared to $1.01 for the same quarter, prior year. Adjusted earnings per common share excludes the loss on early retirement of debt and
related costs, and their related tax effects for the nine months ended September 30, 2023. 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.
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, 2023, Select Medical operated 107 critical illness recovery hospitals in 28 states, 33 rehabilitation
hospitals in 13 states, 1,946 outpatient rehabilitation clinics in 39 states and the District of Columbia, and 539 occupational health
centers in 41 states. At September 30, 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 third quarter ended
September 30, 2023, revenue for the critical illness recovery hospital segment increased 7.4% to $563.6 million, compared to $524.6
million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 321.0% to $46.4
million for the third quarter ended September 30, 2023, compared to $11.0 million for the same quarter, prior year. The Adjusted
EBITDA margin for the critical illness recovery hospital segment was 8.2% for the third quarter ended September 30, 2023, compared
to 2.1% 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, 2023 and 2022.
For the nine months ended
September 30, 2023, revenue for the critical illness recovery hospital segment increased 3.6% to $1,732.6 million, compared to $1,672.2
million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 181.5% to $188.6
million for the nine months ended September 30, 2023, compared to $67.0 million for the same period, prior year. The Adjusted EBITDA
margin for the critical illness recovery hospital segment was 10.9% for the nine months ended September 30, 2023, compared to 4.0%
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, 2023 and 2022.
Rehabilitation Hospital Segment
For the third quarter ended
September 30, 2023, revenue for the rehabilitation hospital segment increased 7.7% to $247.1 million, compared to $229.4 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 7.7% to $53.6 million for the third
quarter ended September 30, 2023, compared to $49.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the
rehabilitation hospital segment was 21.7% for each of the third quarters ended September 30, 2023 and 2022. Certain rehabilitation
hospital key statistics are presented in table VII of this release for the third quarters ended September 30, 2023 and 2022.
For the nine months ended
September 30, 2023, revenue for the rehabilitation hospital segment increased 6.0% to $719.4 million, compared to $678.9 million
for the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 9.5% to $155.5 million for the nine
months ended September 30, 2023, compared to $142.0 million for the same period, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 21.6% for the nine months ended September 30, 2023, compared to 20.9% 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, 2023 and
Outpatient Rehabilitation Segment
For the third quarter ended
September 30, 2023, revenue for the outpatient rehabilitation segment increased 2.4% to $291.8 million, compared to $285.0 million
for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 2.5% to $26.3 million for the third
quarter ended September 30, 2023, compared to $25.7 million for the same quarter, prior year. The Adjusted EBITDA margin for the
outpatient rehabilitation segment was 9.0% for the third quarters ended September 30, 2023 and 2022. Certain outpatient rehabilitation
key statistics are presented in table VII of this release for the third quarters ended September 30, 2023 and 2022.
For the nine months ended
September 30, 2023, revenue for the outpatient rehabilitation segment increased 5.5% to $890.7 million, compared to $844.2 million
for the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 4.1% to $89.4 million for the nine
months ended September 30, 2023, compared to $85.9 million for the same period, prior year. The Adjusted EBITDA margin for the outpatient
rehabilitation segment was 10.0% for the nine months ended September 30, 2023, compared to 10.2% 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,
For the third quarter ended
September 30, 2023, revenue for the Concentra segment increased 6.6% to $474.0 million, compared to $444.6 million for the same quarter,
prior year. Adjusted EBITDA for the Concentra segment increased 9.9% to $98.9 million for the third quarter ended September 30, 2023,
compared to $90.0 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment was 20.9% for the third
quarter ended September 30, 2023, compared to 20.2% 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, 2023 and 2022.
For the nine months ended
September 30, 2023, revenue for the Concentra segment increased 6.7% to $1,397.3 million, compared to $1,309.4 million for the same
period, prior year. Adjusted EBITDA for the Concentra segment increased 7.7% to $293.0 million for the nine months ended September 30,
2023, compared to $272.1 million for the same period, prior year. The Adjusted EBITDA margin for the Concentra segment was 21.0% for the
nine months ended September 30, 2023, compared to 20.8% 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, 2023 and 2022.
On November 2, 2023,
Select Medical's Board of Directors declared a cash dividend of $0.125 per share. The dividend will be payable on or about November 28,
2023, to stockholders of record as of the close of business on November 15, 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