Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Second Quarter Ended June 30, 2025
MECHANICSBURG, PENNSYLVANIA
- July 31, 2025 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its second quarter ended June 30, 2025, and the declaration of a cash
For the second quarter ended
June 30, 2025, revenue increased 4.5% to $1,339.6 million, compared to $1,281.7 million for the same quarter, prior year. Income
from continuing operations before other income and expense increased 17.2% to $86.5 million for the second quarter ended June 30,
2025, compared to $73.9 million for the same quarter, prior year. Income from continuing operations, net of tax, increased 53.8%
to $57.9 million for the second quarter ended June 30, 2025, compared to $37.6 million for the same quarter, prior year. Adjusted
EBITDA increased 0.5% to $125.4 million for the second quarter ended June 30, 2025, compared to $124.7 million for the same quarter,
prior year. Earnings per common share from continuing operations increased 88.2% to $0.32 for the second quarter ended June 30, 2025,
compared to $0.17 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.
For the six months ended
June 30, 2025, revenue increased 3.4% to $2,692.8 million, compared to $2,603.0 million for the same period, prior year. Income from
continuing operations before other income and expense increased 3.6% to $199.3 million for the six months ended June 30, 2025, compared
to $192.3 million for the same period, prior year. Income from continuing operations, net of tax, increased 33.7% to $132.6 million for
the six months ended June 30, 2025, compared to $99.2 million for the same period, prior year. Adjusted EBITDA was $276.9 million
for the six months ended June 30, 2025, compared to $290.5 million for the same period, prior year. Earnings per common share from
continuing operations increased 52.0% to $0.76 for the six months ended June 30, 2025, compared to $0.50 for the same period, 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.
On November 25, 2024,
Select completed a tax-free distribution of 104,093,503 shares of common stock of Concentra Group Holdings Parent, Inc. ("Concentra")
to its stockholders. Following the completion of the distribution, the Company no longer owns any shares of Concentra common stock. The
results of Concentra are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment
results for the three and six months ended June 30, 2024.
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 June 30, 2025, Select Medical operated
104 critical illness recovery hospitals in 29 states, 36 rehabilitation hospitals in 14 states, and 1,919 outpatient rehabilitation clinics
in 39 states and the District of Columbia. At June 30, 2025, 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 second quarter ended
June 30, 2025, revenue for the critical illness recovery hospital segment was $601.1 million, compared to $604.9 million for the
same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $56.3 million for the second quarter
ended June 30, 2025, compared to $71.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the critical illness
recovery hospital segment was 9.4% for the second quarter ended June 30, 2025, compared to 11.9% for the same quarter, prior year.
Certain critical illness recovery hospital key statistics are presented in table VII of this release for the second quarters ended June 30,
For the six months ended
June 30, 2025, revenue for the critical illness recovery hospital segment was $1,238.2 million, compared to $1,260.8 million for
the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $142.9 million for the six months
ended June 30, 2025, compared to $187.8 million for the same period, prior year. The Adjusted EBITDA margin for the critical illness
recovery hospital segment was 11.5% for the six months ended June 30, 2025, compared to 14.9% for the same period, prior year. Certain
critical illness recovery hospital key statistics are presented in table VIII of this release for the six months ended June 30, 2025
Rehabilitation Hospital Segment
For the second quarter ended
June 30, 2025, revenue for the rehabilitation hospital segment increased 17.2% to $313.8 million, compared to $267.8 million for
the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 14.7% to $71.0 million for the second
quarter ended June 30, 2025, compared to $62.0 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 22.6% for the second quarter ended June 30, 2025, compared to 23.1% for the same quarter, prior year. Certain
rehabilitation hospital key statistics are presented in table VII of this release for the second quarters ended June 30, 2025 and
For the six months ended
June 30, 2025, revenue for the rehabilitation hospital segment increased 16.4% to $621.2 million, compared to $533.5 million for
the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 14.7% to $141.5 million for the six months
ended June 30, 2025, compared to $123.4 million for the same period, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 22.8% for the six months ended June 30, 2025, compared to 23.1% for the same period, prior year. Certain rehabilitation
hospital key statistics are presented in table VIII of this release for the six months ended June 30, 2025 and 2024.
Outpatient Rehabilitation Segment
For the second quarter ended
June 30, 2025, revenue for the outpatient rehabilitation segment increased 3.8% to $327.6 million, compared to $315.5 million for
the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 6.1% to $30.5 million for the second
quarter ended June 30, 2025, compared to $28.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient
rehabilitation segment was 9.3% for the second quarter ended June 30, 2025, compared to 9.1% for the same quarter, prior year. Certain
outpatient rehabilitation key statistics are presented in table VII of this release for the second quarters ended June 30, 2025 and
For the six months ended
June 30, 2025, revenue for the outpatient rehabilitation segment increased 2.6% to $634.9 million, compared to $618.7 million for
the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 2.0% to $54.8 million for the six months
ended June 30, 2025, compared to $53.7 million for the same period, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 8.6% for the six months ended June 30, 2025, compared to 8.7% for the same period, prior year. Certain outpatient rehabilitation
key statistics are presented in table VIII of this release for the six months ended June 30, 2025 and 2024.
On July 30, 2025, Select
Medical's Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about August 28,
2025, to stockholders of record as of the close of business on August 13, 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
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,
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.
During the six months ended
June 30, 2025, Select Medical repurchased 6,375,512 shares at a cost of approximately $96.5 million, or $15.13 per share, which includes
transaction costs. From the inception of the common stock repurchase program through June 30, 2025, Select Medical has repurchased
54,610,335 shares at a cost of approximately $696.8 million, or $12.76 per share, which includes transaction costs. On August 16,
2022, Congress passed the Inflation Reduction Act of 2022, which enacted a 1% excise tax on stock repurchases that exceed $1.0 million,
effective January 1, 2023. As of June 30, 2025, $0.9 million has been accrued for the 1% excise tax as a cost of the stock
Select Medical is reaffirming
its 2025 business outlook, which was provided most recently in its May 1, 2025 press release. For fiscal year 2025, Select Medical
expects revenue to be in the range of $5.3 billion to $5.5 billion, Adjusted EBITDA to be in the range of $510.0 million to $530.0 million,
and fully diluted earnings per share to be in the range of $1.09 to $1.19. Reconciliations of full year 2025 Adjusted EBITDA expectations
to income from operations, net of tax, is presented in table X of this release.