Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Third Quarter Ended September 30,
2024 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- October 31, 2024 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its third quarter ended September 30, 2024, and the declaration of
For the third quarter ended
September 30, 2024, revenue increased 5.7% to $1,761.2 million, compared to $1,665.7 million for the same quarter, prior year. Income
from operations increased 8.6% to $141.1 million for the third quarter ended September 30, 2024, compared to $130.0 million
for the same quarter, prior year. Net income increased 33.2% to $81.0 million for the third quarter ended September 30, 2024, compared
to $60.8 million for the same quarter, prior year. Adjusted EBITDA increased 6.0% to $205.5 million for the third quarter ended September 30,
2024, compared to $193.8 million for the same quarter, prior year. Earnings per common share increased 13.2% to $0.43 for the third quarter
ended September 30, 2024, compared to $0.38 for the same quarter, prior year. Adjusted earnings per common share increased 8.7% to
$0.50 for the third quarter ended September 30, 2024, compared to $0.46 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 nine months ended
September 30, 2024, revenue increased 6.1% to $5,309.7 million, compared to $5,005.2 million for the same period, prior year. Income
from operations increased 11.9% to $492.9 million for the nine months ended September 30, 2024, compared to $440.6 million for the
same period, prior year. Net income increased 23.1% to $292.9 million for the nine months ended September 30, 2024, compared to $237.9
million for the same period, prior year. Adjusted EBITDA increased 10.6% to $693.7 million for the nine months ended September 30,
2024, compared to $627.4 million for the same period, prior year. Earnings per common share increased 14.8% to $1.78 for the nine months
ended September 30, 2024, compared to $1.55 for the same period, prior year. Adjusted earnings per common share increased 14.1% to
$1.86 for the nine months ended September 30, 2024, compared to $1.63 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 of this release. A reconciliation of earnings per
common share to adjusted earnings per common share is presented in table X 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 September 30, 2024, Select Medical operated 106 critical illness recovery hospitals in 29 states, 34 rehabilitation hospitals
in 13 states, 1,925 outpatient rehabilitation clinics in 39 states and the District of Columbia, and 549 occupational health centers
in 41 states. At September 30, 2024, 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, 2024, revenue for the critical illness recovery hospital segment increased 3.4% to $583.0 million, compared to $563.6
million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 9.5% to $50.8 million
for the third quarter ended September 30, 2024, compared to $46.4 million for the same quarter, prior year. The Adjusted EBITDA margin
for the critical illness recovery hospital segment was 8.7% for the third quarter ended September 30, 2024, compared to 8.2% 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, 2024 and 2023.
For the nine months ended
September 30, 2024, revenue for the critical illness recovery hospital segment increased 6.4% to $1,843.8 million, compared to $1,732.6
million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 26.5% to $238.5
million for the nine months ended September 30, 2024, compared to $188.6 million for the same period, prior year. The Adjusted EBITDA
margin for the critical illness recovery hospital segment was 12.9% for the nine months ended September 30, 2024, compared to 10.9%
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, 2024 and 2023.
Rehabilitation Hospital Segment
For the third quarter ended
September 30, 2024, revenue for the rehabilitation hospital segment increased 14.4% to $282.7 million, compared to $247.1 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 12.1% to $60.1 million for the third
quarter ended September 30, 2024, compared to $53.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the
rehabilitation hospital segment was 21.3% for the third quarter ended September 30, 2024, compared to 21.7% 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, 2024, revenue for the rehabilitation hospital segment increased 13.5% to $816.2 million, compared to $719.4 million
for the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 18.0% to $183.5 million for the nine
months ended September 30, 2024, compared to $155.5 million for the same period, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 22.5% for the nine months ended September 30, 2024, compared to 21.6% 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, 2024 and
Outpatient Rehabilitation Segment
For the third quarter ended
September 30, 2024, revenue for the outpatient rehabilitation segment increased 6.9% to $312.0 million, compared to $291.8 million
for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 7.5% to $28.3 million for the third
quarter ended September 30, 2024, compared to $26.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the
outpatient rehabilitation segment was 9.1% for the third quarter ended September 30, 2024, compared to 9.0% 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,
For the nine months ended
September 30, 2024, revenue for the outpatient rehabilitation segment increased 4.5% to $930.7 million, compared to $890.7 million
for the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $82.0 million for the nine months ended
September 30, 2024, compared to $89.4 million for the same period, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 8.8% for the nine months ended September 30, 2024, compared to 10.0% 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, 2024 and 2023.
For the third quarter ended
September 30, 2024, revenue for the Concentra segment increased 3.3% to $489.6 million, compared to $474.0 million for the same quarter,
prior year. Adjusted EBITDA for the Concentra segment increased 2.7% to $101.6 million for the third quarter ended September 30,
2024, compared to $98.9 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment was 20.7% for the
third quarter ended September 30, 2024, compared to 20.9% 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, 2024 and 2023.
For the nine months ended
September 30, 2024, revenue for the Concentra segment increased 2.7% to $1,435.2 million, compared to $1,397.3 million for the same
period, prior year. Adjusted EBITDA for the Concentra segment increased 2.1% to $299.3 million for the nine months ended September 30,
2024, compared to $293.0 million for the same period, prior year. The Adjusted EBITDA margin for the Concentra segment was 20.9% for the
nine months ended September 30, 2024, compared to 21.0% 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, 2024 and 2023.
On October 30, 2024,
Select Medical's Board of Directors declared a cash dividend of $0.125 per share. The dividend will be payable on or about November 26,
2024, to stockholders of record as of the close of business on November 13, 2024.
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, 2025, 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,