Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Fourth Quarter and Year Ended December 31,
2024, Its 2025 Business Outlook, and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- February 20, 2025 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its fourth quarter and year ended December 31, 2024, its 2025 business
outlook, and the declaration of a cash dividend.
On November 25, 2024, we
completed a tax-free distribution of 104,093,503 shares of common stock of Concentra Group Holdings Parent, Inc. ("Concentra")
to our stockholders. Holders of our common stock received 0.806971 shares of Concentra common stock for each outstanding share of our
common stock owned as of November 18, 2024. Following the completion of the distribution, we no longer own any shares of Concentra's
common stock. The results of Concentra, and related transaction costs, have been reflected as discontinued operations in the consolidated
statements of operations, and prior periods have been recast to reflect this presentation.
For the fourth quarter ended
December 31, 2024, revenue increased 7.8% to $1,312.6 million, compared to $1,218.1 million for the same quarter, prior year. Income
from continuing operations before other income and expense was $21.1 million for the fourth quarter ended December 31, 2024, compared
to $64.9 million for the same quarter, prior year. Loss from continuing operations, net of tax, was $10.5 million for the fourth quarter
ended December 31, 2024, compared to income from continuing operations, net of tax, of $30.3 million for the same quarter, prior year.
In connection with the distribution of Concentra, there was a one-time acceleration of $45.9 million of stock compensation expense, which
reduced income (loss) from continuing operations for the quarter ended December 31, 2024. Additionally, during the quarter ended December
31, 2024, we recognized a loss on early retirement of debt of $17.9 million as a result of the debt refinancing transactions described
below. Adjusted EBITDA increased 3.8% to $116.0 million for the fourth quarter ended December 31, 2024, compared to $111.8 million for
the same quarter, prior year. Diluted loss per common share from continuing operations was $0.19 for the fourth quarter ended December
31, 2024, compared to earnings per common share from continuing operations of $0.12 for the same quarter, prior year. Adjusted earnings
per common share from continuing operations, net of tax, which excludes the one-time acceleration of stock compensation expense, the
loss on early retirement of debt, and certain reclassified transaction costs associated with the Concentra transaction, increased 50.0%
to $0.18 for the fourth quarter ended December 31, 2024, compared to $0.12 for the same quarter, prior year. The definition of Adjusted
EBITDA and a reconciliation of income from continuing operations, net of tax, to Adjusted EBITDA are presented in table IX of this release.
A reconciliation of earnings per common share from continuing operations, net of tax, to adjusted earnings per common share from continuing
operations, net of tax, is presented in table X of this release.
For the year ended December 31,
2024, revenue increased 7.5% to $5,187.1 million, compared to $4,826.0 million for the prior year. Income from continuing operations
before other income and expense increased 0.4% to $268.3 million for the year ended December 31, 2024, compared to $267.2 million
for the prior year. Income from continuing operations, net of tax, increased 17.7% to $130.0 million for the year ended December 31,
2024, compared to $110.5 million for the prior year. In connection with the distribution of Concentra, there was a one-time acceleration
of $45.9 million of stock compensation expense, which reduced income from continuing operations for the year ended December 31, 2024.
Additionally, during the year ended December 31, 2024, we recognized a loss on early retirement of debt of $28.8 million. Adjusted EBITDA
increased 14.4% to $510.4 million for the year ended December 31, 2024, compared to $446.1 million for the prior year. Earnings
per common share from continuing operations, net of tax, increased 10.9% to $0.51 for the year ended December 31, 2024, compared
to $0.46 for the prior year. Adjusted earnings per common share from continuing operations, net of tax, which excludes the one-time acceleration
of stock compensation expense and the loss on early retirement of debt, increased 74.1% to $0.94 for the year ended December 31,
2024, compared to $0.54 for the prior year. The definition of Adjusted EBITDA and a reconciliation of income from continuing operations,
net of tax, to Adjusted EBITDA are presented in table IX of this release. A reconciliation of earnings per common share from continuing
operations, net of tax, to adjusted earnings per common share from continuing operations, net of tax, is presented in table X of this
Select Medical is one of
the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics 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, and the outpatient rehabilitation segment. As of December 31, 2024, Select Medical operated
104 critical illness recovery hospitals in 29 states, 35 rehabilitation hospitals in 14 states, and 1,914 outpatient rehabilitation clinics
in 39 states and the District of Columbia. At December 31, 2024, Select Medical had operations in 40 states and the District of Columbia.
Information about Select Medical is available at www.selectmedical.com.
Critical Illness Recovery Hospital Segment
For the fourth quarter ended
December 31, 2024, revenue for the critical illness recovery hospital segment increased 5.9% to $600.4 million, compared to $567.1 million
for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 10.0% to $63.1 million
for the fourth quarter ended December 31, 2024, compared to $57.4 million for the same quarter, prior year. The Adjusted EBITDA margin
for the critical illness recovery hospital segment was 10.5% for the fourth quarter ended December 31, 2024, compared to 10.1% for the
same quarter, prior year. Certain critical illness recovery hospital key statistics are presented in table VII of this release for the
fourth quarters ended December 31, 2024 and 2023.
For the year ended December
31, 2024, revenue for the critical illness recovery hospital segment increased 6.3% to $2,444.2 million, compared to $2,299.8 million
for the prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 22.6% to $301.6 million for the year
ended December 31, 2024, compared to $246.0 million for the prior year. The Adjusted EBITDA margin for the critical illness recovery
hospital segment was 12.3% for the year ended December 31, 2024, compared to 10.7% for the prior year. Certain critical illness recovery
hospital key statistics are presented in table VIII of this release for the years ended December 31, 2024 and 2023.
Rehabilitation Hospital Segment
For the fourth quarter ended
December 31, 2024, revenue for the rehabilitation hospital segment increased 13.1% to $294.4 million, compared to $260.2 million for
the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $62.3 million for the fourth quarter ended
December 31, 2024, compared to $66.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation hospital
segment was 21.2% for the fourth quarter ended December 31, 2024, compared to 25.5% 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, 2024 and 2023.
For the year ended December
31, 2024, revenue for the rehabilitation hospital segment increased 13.4% to $1,110.6 million, compared to $979.6 million for the prior
year. Adjusted EBITDA for the rehabilitation hospital segment increased 10.8% to $245.7 million for the year ended December 31, 2024,
compared to $221.9 million for the prior year. The Adjusted EBITDA margin for the rehabilitation hospital segment was 22.1% for the year
ended December 31, 2024, compared to 22.6% for the prior year. Certain rehabilitation hospital key statistics are presented in table
VIII of this release for the years ended December 31, 2024 and 2023.
Outpatient Rehabilitation Segment
For the fourth quarter ended
December 31, 2024, revenue for the outpatient rehabilitation segment increased 7.2% to $319.6 million, compared to $298.2 million for
the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 18.2% to $26.6 million for the fourth
quarter ended December 31, 2024, compared to $22.5 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient
rehabilitation segment was 8.3% for the fourth quarter ended December 31, 2024, compared to 7.5% for the same quarter, prior year. Certain
outpatient rehabilitation key statistics are presented in table VII of this release for the fourth quarters ended December 31, 2024 and
For the year ended December
31, 2024, revenue for the outpatient rehabilitation segment increased 5.2% to $1,250.3 million, compared to $1,188.9 million for the
prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $108.6 million for the year ended December 31, 2024, compared
to $111.9 million for the prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 8.7% for the year ended
December 31, 2024, compared to 9.4% for the prior year. Certain outpatient rehabilitation key statistics are presented in table VIII
of this release for the years ended December 31, 2024 and 2023.
On February 13, 2025,
Select Medical's board of directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about March 13,
2025 to stockholders of record as of the close of business on March 3, 2025.
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