Select Medical Holdings Corporation Announces Results For Its Second Quarter Ended June 30, 2025 and Cash Dividend
Select Medical Holdings (NYSE:SEM) reported strong Q2 2025 financial results, with revenue increasing 4.5% to $1.34 billion. The company's income from continuing operations, net of tax, surged 53.8% to $57.9 million, while earnings per share jumped 88.2% to $0.32.
The company operates through three main segments: 104 critical illness recovery hospitals, 36 rehabilitation hospitals, and 1,919 outpatient rehabilitation clinics. While the rehabilitation hospital segment showed strong growth with a 17.2% revenue increase, the critical illness recovery segment experienced some pressure with declining margins.
Select Medical declared a cash dividend of $0.0625 per share and continued its stock repurchase program, having bought back 6.37 million shares for $96.5 million in H1 2025. The company reaffirmed its 2025 outlook with expected revenue of $5.3-5.5 billion and Adjusted EBITDA of $510-530 million.
Select Medical Holdings (NYSE:SEM) ha riportato solidi risultati finanziari per il secondo trimestre 2025, con ricavi in crescita del 4,5% a 1,34 miliardi di dollari. L'utile derivante dalle operazioni continuative, al netto delle imposte, 猫 aumentato del 53,8% raggiungendo 57,9 milioni di dollari, mentre l'utile per azione 猫 salito dell'88,2% a 0,32 dollari.
L'azienda opera attraverso tre segmenti principali: 104 ospedali per il recupero da malattie critiche, 36 ospedali di riabilitazione e 1.919 cliniche ambulatoriali di riabilitazione. Il segmento degli ospedali di riabilitazione ha mostrato una forte crescita con un aumento dei ricavi del 17,2%, mentre il segmento per il recupero da malattie critiche ha subito pressioni a causa di margini in calo.
Select Medical ha dichiarato un dividendo in contanti di 0,0625 dollari per azione e ha proseguito il programma di riacquisto azionario, riacquistando 6,37 milioni di azioni per 96,5 milioni di dollari nel primo semestre 2025. L'azienda ha confermato le previsioni per il 2025 con ricavi attesi tra 5,3 e 5,5 miliardi di dollari e un EBITDA rettificato di 510-530 milioni di dollari.
Select Medical Holdings (NYSE:SEM) report贸 s贸lidos resultados financieros en el segundo trimestre de 2025, con ingresos que aumentaron un 4,5% hasta 1,34 mil millones de d贸lares. Los ingresos netos de operaciones continuas, despu茅s de impuestos, se dispararon un 53,8% hasta 57,9 millones de d贸lares, mientras que las ganancias por acci贸n subieron un 88,2% hasta 0,32 d贸lares.
La compa帽铆a opera a trav茅s de tres segmentos principales: 104 hospitales de recuperaci贸n de enfermedades cr铆ticas, 36 hospitales de rehabilitaci贸n y 1.919 cl铆nicas ambulatorias de rehabilitaci贸n. El segmento de hospitales de rehabilitaci贸n mostr贸 un fuerte crecimiento con un aumento de ingresos del 17,2%, mientras que el segmento de recuperaci贸n de enfermedades cr铆ticas enfrent贸 cierta presi贸n debido a m谩rgenes decrecientes.
Select Medical declar贸 un dividendo en efectivo de 0,0625 d贸lares por acci贸n y continu贸 su programa de recompra de acciones, habiendo recomprado 6,37 millones de acciones por 96,5 millones de d贸lares en el primer semestre de 2025. La compa帽铆a reafirm贸 sus perspectivas para 2025 con ingresos esperados entre 5,3 y 5,5 mil millones de d贸lares y un EBITDA ajustado de 510-530 millones de d贸lares.
Select Medical Holdings (NYSE:SEM)電� 2025雲� 2攵勱赴 臧曤牓頃� 鞛 鞁れ爜鞚� 氚滍憸頄堨溂氅�, 毵れ稖鞚� 4.5% 歃濌皜頃� 13鞏� 4觳滊 雼煬毳� 旮半頄堨姷雼堧嫟. 氩曥澑靹� 彀皭 頉� 瓿勳啀 鞓侅梾鞚挫澋鞚� 53.8% 歃濌皜頃� 5,790毵� 雼煬搿� 旮夓頄堨溂氅�, 欤茧嫻靾滌澊鞚奠潃 88.2% 靸侅姽頃� 0.32雼煬毳� 旮半頄堨姷雼堧嫟.
须岇偓电� 104臧滌潣 欷戩 歆堩櫂 須岆车 氤戩洂, 36臧滌潣 鞛櫆 氤戩洂, 攴鸽Μ瓿� 1,919臧滌潣 鞕鸽灅 鞛櫆 韥措Μ雼� 霌� 靹� 臧�歆� 欤检殧 攵�氍胳潉 鞖挫榿頃橁碃 鞛堨姷雼堧嫟. 鞛櫆 氤戩洂 攵�氍胳潃 17.2% 毵れ稖 歃濌皜搿� 臧曧暅 靹膘灔鞚� 氤挫澑 氚橂┐, 欷戩 歆堩櫂 須岆车 攵�氍胳潃 毵堨 臧愳唽搿� 雼れ唽 鞎曤皶鞚� 氚涭晿鞀惦媹雼�.
Select Medical鞚� 欤茧嫻 0.0625雼煬鞚� 順勱笀 氚半嫻旮�鞚� 靹犾柛頄堨溂氅�, 2025雲� 靸侂皹旮办棎 6.37氚彪 欤茧ゼ 9,650毵� 雼煬鞐� 鞛Г鞛�頃橂姅 霌� 鞛愳偓欤� 毵れ瀰 頂勲攴鸽灗鞚� 瓿勳啀 歆勴枆頄堨姷雼堧嫟. 须岇偓电� 2025雲� 毵れ稖鞚� 53鞏祣55鞏� 雼煬, 臁办爼 EBITDA毳� 5鞏� 1,000毵寏5鞏� 3,000毵� 雼煬搿� 鞓堨儊頃橂┌ 鞝勲鞚� 鞛檿鞚疙枅鞀惦媹雼�.
Select Medical Holdings (NYSE:SEM) a publi茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025, avec un chiffre d'affaires en hausse de 4,5 % 脿 1,34 milliard de dollars. Le revenu net des op茅rations continues, apr猫s imp么ts, a bondi de 53,8 % pour atteindre 57,9 millions de dollars, tandis que le b茅n茅fice par action a augment茅 de 88,2 % 脿 0,32 dollar.
L'entreprise op猫re 脿 travers trois segments principaux : 104 h么pitaux de convalescence pour maladies graves, 36 h么pitaux de r茅茅ducation et 1 919 cliniques de r茅茅ducation ambulatoires. Le segment des h么pitaux de r茅茅ducation a connu une forte croissance avec une augmentation des revenus de 17,2 %, tandis que le segment de convalescence pour maladies graves a subi des pressions dues 脿 une baisse des marges.
Select Medical a d茅clar茅 un dividende en esp猫ces de 0,0625 dollar par action et a poursuivi son programme de rachat d'actions, ayant rachet茅 6,37 millions d'actions pour 96,5 millions de dollars au premier semestre 2025. L'entreprise a confirm茅 ses pr茅visions pour 2025 avec un chiffre d'affaires attendu entre 5,3 et 5,5 milliards de dollars et un EBITDA ajust茅 de 510 脿 530 millions de dollars.
Select Medical Holdings (NYSE:SEM) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025, mit einem Umsatzanstieg von 4,5 % auf 1,34 Milliarden US-Dollar. Der Nettogewinn aus fortgef眉hrten Gesch盲ftsbereichen stieg um 53,8 % auf 57,9 Millionen US-Dollar, w盲hrend der Gewinn je Aktie um 88,2 % auf 0,32 US-Dollar zulegte.
Das Unternehmen ist in drei Hauptsegmenten t盲tig: 104 Krankenh盲user f眉r die Genesung von schweren Krankheiten, 36 Rehabilitationskliniken und 1.919 ambulante Rehabilitationskliniken. W盲hrend das Segment der Rehabilitationskliniken mit einem Umsatzanstieg von 17,2 % stark wuchs, stand das Segment f眉r die Genesung von schweren Krankheiten unter Druck aufgrund r眉ckl盲ufiger Margen.
Select Medical erkl盲rte eine Bardividende von 0,0625 US-Dollar je Aktie und setzte sein Aktienr眉ckkaufprogramm fort, indem es im ersten Halbjahr 2025 6,37 Millionen Aktien f眉r 96,5 Millionen US-Dollar zur眉ckkaufte. Das Unternehmen bekr盲ftigte seine Prognose f眉r 2025 mit erwarteten Ums盲tzen von 5,3 bis 5,5 Milliarden US-Dollar und einem bereinigten EBITDA von 510 bis 530 Millionen US-Dollar.
- Revenue increased 4.5% to $1.34 billion in Q2 2025
- Net income from continuing operations surged 53.8% to $57.9 million
- Earnings per share jumped 88.2% to $0.32
- Rehabilitation hospital segment revenue grew 17.2% with strong 22.6% EBITDA margin
- Stock repurchase program remains active with $303.2 million remaining authorization
- Company reaffirmed positive 2025 guidance with revenue of $5.3-5.5 billion
- Critical illness recovery hospital segment's EBITDA margin declined to 9.4% from 11.9%
- Critical illness recovery hospital revenue decreased to $601.1 million from $604.9 million
- Overall Adjusted EBITDA showed minimal growth of 0.5% year-over-year
- Six-month Adjusted EBITDA declined to $276.9 million from $290.5 million prior year
For the second quarter ended June听30, 2025, revenue increased
For the six months ended June听30, 2025, revenue increased
On November 25, 2024, Select completed a tax-free distribution of 104,093,503 shares of common stock of Concentra Group Holdings Parent,听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听30, 2024.
Company Overview
Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in
Critical Illness Recovery Hospital Segment
For the second quarter ended June听30, 2025, revenue for the critical illness recovery hospital segment was
For the six months ended June听30, 2025, revenue for the critical illness recovery hospital segment was
Rehabilitation Hospital Segment
For the second quarter ended June听30, 2025, revenue for the rehabilitation hospital segment increased
For the six months ended June听30, 2025, revenue for the rehabilitation hospital segment increased
Outpatient Rehabilitation Segment
For the second quarter ended June听30, 2025, revenue for the outpatient rehabilitation segment increased
For the six months ended June听30, 2025, revenue for the outpatient rehabilitation segment increased
Dividend
On July听30, 2025, Select Medical's Board of Directors declared a cash dividend of
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
During the six months听ended June听30, 2025, Select Medical repurchased 6,375,512 shares at a cost of approximately
Business Outlook
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
Conference Call
Select Medical will host a conference call regarding its second quarter results and its business outlook on Friday, August 1, 2025, at 9:00am ET. The conference call will be a live webcast and can be accessed at Select Medical Holdings Corporation's website at . 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听听迟辞 obtain your dial-in number and unique passcode.
*听听 *听听 *听听 *听听 *
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 2025 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:
- changes in government reimbursement for our services and/or new payment policies may result in a reduction in revenue, an increase in costs, and a reduction in profitability;
- adverse economic conditions including an inflationary environment could cause us to continue to experience increases in the prices of labor and other costs of doing business resulting in a negative impact on our business, operating results, cash flows, and financial condition;
- changes to
United States tariff and import/export regulations and the impact on global economic conditions may have a negative effect on our business, financial condition, and results of operations; - shortages in qualified nurses, therapists, physicians, or other licensed providers, and/or the inability to attract or retain qualified healthcare professionals could limit our ability to staff our facilities;
- shortages in qualified health professionals could cause us to increase our dependence on contract labor, increase our efforts to recruit and train new employees, and expand upon our initiatives to retain existing staff, which could increase our operating costs significantly;
- the negative impact of public threats such as a global pandemic or widespread outbreak of an infectious disease similar to the COVID-19 pandemic;
- the failure of our Medicare-certified long term care hospitals or inpatient rehabilitation facilities to maintain their Medicare certifications may cause our revenue and profitability to decline;
- the failure of our Medicare-certified long term care hospitals and inpatient rehabilitation facilities operated as "hospitals within hospitals" to qualify as hospitals separate from their host hospitals may cause our revenue and profitability to decline;
- a government investigation or assertion that we have violated applicable regulations may result in sanctions or reputational harm and increased costs;
- acquisitions or joint ventures may prove difficult or unsuccessful, use significant resources, or expose us to unforeseen liabilities;
- our plans and expectations related to our acquisitions and our ability to realize anticipated synergies;
- private third-party payors for our services may adopt payment policies that could limit our future revenue and profitability;
- the failure to maintain established relationships with the physicians in the areas we serve could reduce our revenue and profitability;
- competition may limit our ability to grow and result in a decrease in our revenue and profitability;
- the loss of key members of our management team could significantly disrupt our operations;
- the effect of claims asserted against us could subject us to substantial uninsured liabilities;
- a security breach of our or our third-party vendors' information technology systems may subject us to potential legal and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 or the Health Information Technology for Economic and Clinical Health Act; and
- other factors discussed from time to time in our filings with the Securities and Exchange Commission (the "SEC"), including factors discussed under the heading "Risk Factors" of the quarterly reports on Form 10-Q and of the annual report on Form 10-K for the year ended December 31, 2024.
Except as required by applicable law, including the securities laws of
Investor inquiries:
Joel T. Veit
Senior Vice President and Treasurer
717-972-1100
[email protected]
I.听 Condensed Consolidated Statements of Operations For the Three Months Ended June听30, 2024 and 2025 (In thousands, except per share amounts, unaudited) | ||||||
2024 | 2025 | % Change | ||||
Revenue | $听听听听听听听听听听听听 1,281,748 | $听听听听听听听听听听听听 1,339,579 | 4.5听% | |||
Costs and expenses: | ||||||
Cost of services, exclusive of depreciation and amortization | 1,121,943 | 1,184,129 | 5.5 | |||
General and administrative | 49,878 | 35,663 | (28.5) | |||
Depreciation and amortization | 36,069 | 34,848 | (3.4) | |||
Total costs and expenses | 1,207,890 | 1,254,640 | 3.9 | |||
Other operating income (loss) | (2) | 1,592 | N/M | |||
Income from continuing operations before other income and expense | 73,856 | 86,531 | 17.2 | |||
Other income and expense: | ||||||
Equity in earnings of unconsolidated subsidiaries | 9,991 | 13,618 | 36.3 | |||
Interest expense | (27,994) | (29,978) | 7.1 | |||
Income from continuing operations before income taxes | 55,853 | 70,171 | 25.6 | |||
Income tax expense from continuing operations | 18,215 | 12,292 | (32.5) | |||
Income from continuing operations, net of tax | 37,638 | 57,879 | 53.8 | |||
Discontinued operations: | ||||||
Income from discontinued business | 71,155 | 鈥� | N/M | |||
Income tax expense from discontinued business | 14,027 | 鈥� | N/M | |||
Income from discontinued operations, net of tax | 57,128 | 鈥� | N/M | |||
Net income | 94,766 | 57,879 | (38.9) | |||
Less: Net income attributable to non-controlling interests | 17,203 | 17,308 | 0.6 | |||
Net income attributable to Select Medical | $听听听听听听听听听听听听听听听听听 77,563 | $听听听听听听听听听听听听听听听听听 40,571 | (47.7)听% | |||
Net income attributable to Select Medical's common stockholders: | ||||||
Income from continuing operations, net of tax | $听听听听听听听听听听听听听听听听听 21,757 | $听听听听听听听听听听听听听听听听听 40,571 | ||||
Income from discontinued operations, net of tax | 55,806 | 鈥� | ||||
Net income attributable to Select Medical's common stockholders | $听听听听听听听听听听听听听听听听听 77,563 | $听听听听听听听听听听听听听听听听听 40,571 | ||||
Earnings per common share: | ||||||
Continuing operations - basic and diluted | $听听听听听听听听听听听听听听听听听听听听听听 0.17 | $听听听听听听听听听听听听听听听听听听听听听听 0.32 | ||||
Discontinued operations - basic and diluted | 0.43 | 鈥� | ||||
Total earnings per common share - basic and diluted(1) | $听听听听听听听听听听听听听听听听听听听听听听 0.60 | $听听听听听听听听听听听听听听听听听听听听听听 0.32 | ||||
(1)听听听听听听听听听听 Refer to table III for calculation of earnings per common share. |
N/M听听听听听听听 Not meaningful |
听
II.听 Condensed Consolidated Statements of Operations For the Six Months Ended June听30, 2024 and 2025 (In thousands, except per share amounts, unaudited) | ||||||
2024 | 2025 | % Change | ||||
Revenue | $听听听听听听听听听听听听 2,602,959 | $听听听听听听听听听听听听 2,692,751 | 3.4听% | |||
Costs and expenses: | ||||||
Cost of services, exclusive of depreciation and amortization | 2,242,654 | 2,356,740 | 5.1 | |||
General and administrative | 98,325 | 68,671 | (30.2) | |||
Depreciation and amortization | 71,653 | 69,656 | (2.8) | |||
Total costs and expenses | 2,412,632 | 2,495,067 | 3.4 | |||
Other operating income | 1,998 | 1,592 | (20.3) | |||
Income from continuing operations before other income and expense | 192,325 | 199,276 | 3.6 | |||
Other income and expense: | ||||||
Equity in earnings of unconsolidated subsidiaries | 20,412 | 26,130 | 28.0 | |||
Interest expense | (68,675) | (59,050) | (14.0) | |||
Income from continuing operations before income taxes | 144,062 | 166,356 | 15.5 | |||
Income tax expense from continuing operations | 44,895 | 33,745 | (24.8) | |||
Income from continuing operations, net of tax | 99,167 | 132,611 | 33.7 | |||
Discontinued operations: | ||||||
Income from discontinued business | 136,571 | 鈥� | N/M | |||
Income tax expense from discontinued business | 23,805 | 鈥� | N/M | |||
Income from discontinued operations, net of tax | 112,766 | 鈥� | N/M | |||
Net income | 211,933 | 132,611 | (37.4) | |||
Less: Net income attributable to non-controlling interests | 37,473 | 35,359 | (5.6) | |||
Net income attributable to Select Medical | $听听听听听听听听听听听听听听听 174,460 | $听听听听听听听听听听听听听听听听听 97,252 | (44.3)听% | |||
Net income attributable to Select Medical's common stockholders: | ||||||
Income from continuing operations, net of tax | $听听听听听听听听听听听听听听听听听 64,339 | $听听听听听听听听听听听听听听听听听 97,252 | ||||
Income from discontinued operations, net of tax | 110,121 | 鈥� | ||||
Net income attributable to Select Medical's common stockholders | $听听听听听听听听听听听听听听听 174,460 | $听听听听听听听听听听听听听听听听听 97,252 | ||||
Earnings per common share: | ||||||
Continuing operations - basic and diluted | $听听听听听听听听听听听听听听听听听听听听听听 0.50 | $听听听听听听听听听听听听听听听听听听听听听听 0.76 | ||||
Discontinued operations - basic and diluted | 0.85 | 鈥� | ||||
Total earnings per common share - basic and diluted(1) | $听听听听听听听听听听听听听听听听听听听听听听 1.35 | $听听听听听听听听听听听听听听听听听听听听听听 0.76 | ||||
(1)听听听听听听听听听听 Refer to table III for calculation of earnings per common share. |
N/M听听听听听听听 Not meaningful |
听
III.听 Earnings per Share |
For the Three and Six Months Ended June听30, 2024 and 2025 |
(In thousands, except per share amounts, unaudited) |
Select Medical's capital structure includes common stock and unvested restricted stock awards. To compute earnings per share ("EPS"), Select Medical applies the two-class method because its unvested restricted stock awards are participating securities which are entitled to participate equally with its common stock in undistributed earnings.
The following table sets forth the income from continuing operations, net of tax, attributable to Select Medical, its common shares outstanding, and its participating securities outstanding for the three and six months ended June听30, 2024 and 2025:
Basic and Diluted EPS | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2025 | 2024 | 2025 | |||||
Income from continuing operations, net of tax | $听听听听听听听听 37,638 | $听听听听听听听听 57,879 | $听听听听听听听听 99,167 | $听听听听听听 132,611 | ||||
Less: net income attributable to non-controlling interests | 15,881 | 17,308 | 34,828 | 35,359 | ||||
Income from continuing operations, net of tax, attributable to | 21,757 | 40,571 | 64,339 | 97,252 | ||||
Less: distributed and undistributed net income attributable to | 932 | 820 | 2,508 | 1,965 | ||||
Distributed and undistributed income from continuing | $听听听听听听听听 20,825 | $听听听听听听听听 39,751 | $听听听听听听听听 61,831 | $听听听听听听听听 95,287 | ||||
听
The following tables set forth the computation of EPS under the two-class method for the three and six months ended June 30, 2024 and 2025:
Three Months Ended June 30, | |||||||||||||
2024 | 2025 | ||||||||||||
Income from | Shares(1) | Basic and | Income from | Shares(1) | Basic and | ||||||||
Common shares | $听听听听听听听听 20,825 | 123,946 | $听听听听听听听听听听听听听 0.17 | $听听听听听听听听听听听 39,751 | 123,359 | $听听听听听听听听听听听听听 0.32 | |||||||
Participating securities | 932 | 5,550 | $听听听听听听听听听听听听听 0.17 | 820 | 2,545 | $听听听听听听听听听听听听听 0.32 | |||||||
Total | $听听听听听听听听 21,757 | $听听听听听听听听听听听 40,571 | |||||||||||
听
Six Months Ended June 30, | |||||||||||||
2024 | 2025 | ||||||||||||
Income from | Shares(1) | Basic and | Income from | Shares(1) | Basic and | ||||||||
Common shares | $听听听听听听听听 61,831 | 123,902 | $听听听听听听听听听听听听听 0.50 | $听听听听听听听听听听听 95,287 | 124,774 | $听听听听听听听听听听听听听 0.76 | |||||||
Participating securities | 2,508 | 5,026 | $听听听听听听听听听听听听听 0.50 | 1,965 | 2,573 | $听听听听听听听听听听听听听 0.76 | |||||||
Total | $听听听听听听听听 64,339 | $听听听听听听听听听听听 97,252 | |||||||||||
(1)听 听 Represents the weighted average share count outstanding during the period. |
听
IV.听 Condensed Consolidated Balance Sheets (In thousands, unaudited) | ||||
December 31, 2024 | June 30, 2025 | |||
Assets | ||||
Current Assets: | ||||
Cash and cash equivalents | $听听听听听听听听听听听听听听听听听听听听听听 59,694 | $听听听听听听听听听听听听听听听听听听听听听听 52,349 | ||
Accounts receivable | 821,385 | 909,460 | ||
Other current assets | 138,698 | 119,081 | ||
Total Current Assets | 1,019,777 | 1,080,890 | ||
Operating lease right-of-use assets | 908,095 | 938,624 | ||
Property and equipment, net | 872,185 | 921,741 | ||
Goodwill | 2,331,898 | 2,331,898 | ||
Identifiable intangible assets, net | 103,183 | 101,925 | ||
Other assets | 372,813 | 367,172 | ||
Total Assets | $听听听听听听听听听听听听听听听听 5,607,951 | $听听听听听听听听听听听听听听听听 5,742,250 | ||
Liabilities and Equity | ||||
Current Liabilities: | ||||
Payables and accruals | $听听听听听听听听听听听听听听听听听听听听 777,781 | $听听听听听听听听听听听听听听听听听听听听 736,514 | ||
Current operating lease liabilities | 179,601 | 182,150 | ||
Current portion of long-term debt and notes payable | 20,269 | 20,326 | ||
Total Current Liabilities | 977,651 | 938,990 | ||
Non-current operating lease liabilities | 787,124 | 818,128 | ||
Long-term debt, net of current portion | 1,691,546 | 1,839,631 | ||
Non-current deferred tax liability | 81,497 | 72,946 | ||
Other non-current liabilities | 73,038 | 73,293 | ||
Total Liabilities | 3,610,856 | 3,742,988 | ||
Redeemable non-controlling interests | 10,167 | 8,493 | ||
Total equity | 1,986,928 | 1,990,769 | ||
Total Liabilities and Equity | $听听听听听听听听听听听听听听听听 5,607,951 | $听听听听听听听听听听听听听听听听 5,742,250 | ||
听
V.听 Condensed Consolidated Statements of Cash Flows For the Three Months Ended June听30, 2024 and 2025 (In thousands, unaudited) | ||||
2024 | 2025 | |||
Operating activities | ||||
Net income | $听听听听听听听听听听听听听听听听听听听听听听 94,766 | $听听听听听听听听听听听听听听听听听听听听听听 57,879 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Distributions from unconsolidated subsidiaries | 1,756 | 10,947 | ||
Depreciation and amortization | 53,939 | 34,848 | ||
Provision for expected credit losses | 606 | (728) | ||
Equity in earnings of unconsolidated subsidiaries | (6,315) | (13,618) | ||
Gain on sale or disposal of assets | (1,066) | (20) | ||
Stock compensation expense | 14,413 | 4,032 | ||
Amortization of debt discount, premium and issuance costs | 742 | 786 | ||
Deferred income taxes | (27,448) | (1,693) | ||
Changes in operating assets and liabilities, net of effects of business combinations: | ||||
Accounts receivable | 56,199 | (548) | ||
Other current assets | 16,168 | 12,792 | ||
Other assets | (15,210) | 1,332 | ||
Accounts payable and accrued expenses | 89,602 | 4,283 | ||
Net cash provided by operating activities | 278,152 | 110,292 | ||
Investing activities | ||||
Business combinations, net of cash acquired | (588) | 鈥� | ||
Purchases of property and equipment | (55,548) | (64,684) | ||
Proceeds from sale of assets | 2,068 | 15 | ||
Net cash used in investing activities | (54,068) | (64,669) | ||
Financing activities | ||||
Borrowings on revolving facilities | 220,000 | 365,000 | ||
Payments on revolving facilities | (385,000) | (295,000) | ||
Payments on term loans | 鈥� | (2,625) | ||
Borrowings of other debt | 鈥� | 5,338 | ||
Principal payments on other debt | (14,200) | (8,962) | ||
Dividends paid to common stockholders | (16,254) | (7,885) | ||
Repurchase of common stock | (1,400) | (86,176) | ||
Decrease in overdrafts | (4,908) | (4,177) | ||
Proceeds from issuance of non-controlling interests | 1,749 | 2,962 | ||
Distributions to and purchases of non-controlling interests | (5,531) | (14,962) | ||
Net cash used in financing activities | (205,544) | (46,487) | ||
Net increase (decrease) in cash and cash equivalents | 18,540 | (864) | ||
Cash and cash equivalents at beginning of period | 92,620 | 53,213 | ||
Cash and cash equivalents at end of period | $听听听听听听听听听听听听听听听听听听听听 111,160 | $听听听听听听听听听听听听听听听听听听听听听听 52,349 | ||
Supplemental information | ||||
Cash paid for interest, excluding amounts received of | $听听听听听听听听听听听听听听听听听听听听听听 53,044 | $听听听听听听听听听听听听听听听听听听听听听听 38,293 | ||
Cash paid for taxes | 60,222 | 19,580 | ||
听
VI.听 Condensed Consolidated Statements of Cash Flows For the Six Months Ended June听30, 2024 and 2025 (In thousands, unaudited) | ||||
2024 | 2025 | |||
Operating activities | ||||
Net income | $听听听听听听听听听听听听听听听听听听听听 211,933 | $听听听听听听听听听听听听听听听听听听听听 132,611 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Distributions from unconsolidated subsidiaries | 14,130 | 31,092 | ||
Depreciation and amortization | 108,008 | 69,656 | ||
Provision for expected credit losses | 1,460 | 1,555 | ||
Equity in earnings of unconsolidated subsidiaries | (16,736) | (26,130) | ||
Gain on sale or disposal of assets | (1,022) | (43) | ||
Stock compensation expense | 26,023 | 7,924 | ||
Amortization of debt discount, premium, and issuance costs | 1,492 | 1,569 | ||
Deferred income taxes | (34,339) | (7,348) | ||
Changes in operating assets and liabilities, net of effects of business combinations: | ||||
Accounts receivable | (139,109) | (89,631) | ||
Other current assets | 6,557 | 562 | ||
Other assets | (12,847) | 3,459 | ||
Accounts payable and accrued expenses | 45,913 | (18,441) | ||
Net cash provided by operating activities | 211,463 | 106,835 | ||
Investing activities | ||||
Business combinations, net of cash acquired | (5,993) | 鈥� | ||
Purchases of property and equipment | (108,065) | (117,023) | ||
Proceeds from sale of assets | 2,333 | 39 | ||
Net cash used in investing activities | (111,725) | (116,984) | ||
Financing activities | ||||
Borrowings on revolving facilities | 715,000 | 770,000 | ||
Payments on revolving facilities | (650,000) | (625,000) | ||
Payments on term loans | (79,085) | (5,250) | ||
Borrowings of other debt | 17,728 | 21,353 | ||
Principal payments on other debt | (23,261) | (16,691) | ||
Dividends paid to common stockholders | (32,299) | (15,945) | ||
Repurchases of common stock | (1,400) | (97,565) | ||
Decrease in overdrafts | (6,648) | (9,297) | ||
Proceeds from issuance of non-controlling interests | 5,751 | 10,906 | ||
Distributions to and purchases of non-controlling interests | (18,370) | (29,707) | ||
Net cash provided by (used in) financing activities | (72,584) | 2,804 | ||
Net increase (decrease) in cash and cash equivalents | 27,154 | (7,345) | ||
Cash and cash equivalents at beginning of period | 84,006 | 59,694 | ||
Cash and cash equivalents at end of period | $听听听听听听听听听听听听听听听听听听听听 111,160 | $听听听听听听听听听听听听听听听听听听听听听听 52,349 | ||
Supplemental information | ||||
Cash paid for interest, excluding amounts received of | $听听听听听听听听听听听听听听听听听听听听 141,878 | $听听听听听听听听听听听听听听听听听听听听听听 62,065 | ||
Cash paid for taxes | 60,826 | 21,052 | ||
听
VII.听 Key Statistics For the Three Months Ended June听30, 2024, and 2025 (unaudited) | ||||||
2024 | 2025 | % Change | ||||
Critical Illness Recovery Hospital | ||||||
Number of hospitals operated 鈥� end of period(a) | 107 | 104 | ||||
Revenue (,000) | $听听听听听 604,921 | $听听听听听 601,139 | (0.6)听% | |||
Number of patient days(b)(c) | 279,241 | 278,916 | (0.1)听% | |||
Number of admissions(b)(d) | 8,888 | 8,966 | 0.9听% | |||
Revenue per patient day(b)(e) | $听听听听听听听听听 2,159 | $听听听听听听听听听 2,148 | (0.5)听% | |||
Occupancy rate(b)(f) | 67听% | 69听% | 3.0听% | |||
Adjusted EBITDA (,000) | $听听听听听听听 71,833 | $听听听听听听听 56,283 | (21.6)听% | |||
Adjusted EBITDA margin | 11.9听% | 9.4听% | ||||
Rehabilitation Hospital | ||||||
Number of hospitals operated 鈥� end of period(a) | 33 | 36 | ||||
Revenue (,000) | $听听听听听 267,831 | $听听听听听 313,775 | 17.2听% | |||
Number of patient days(b)(c) | 117,045 | 125,927 | 7.6听% | |||
Number of admissions(b)(d) | 8,325 | 9,102 | 9.3听% | |||
Revenue per patient day(b)(e) | $听听听听听听听听听 2,113 | $听听听听听听听听听 2,236 | 5.8听% | |||
Occupancy rate(b)(f) | 84听% | 82听% | (2.4)听% | |||
Adjusted EBITDA (,000) | $听听听听听听听 61,954 | $听听听听听听听 71,047 | 14.7听% | |||
Adjusted EBITDA margin | 23.1听% | 22.6听% | ||||
Outpatient Rehabilitation | ||||||
Number of clinics operated 鈥� end of period(a) | 1,925 | 1,919 | ||||
Working days(g) | 64 | 64 | ||||
Revenue (,000) | $听听听听听 315,496 | $听听听听听 327,584 | 3.8听% | |||
Number of visits(b)(h) | 2,827,625 | 2,934,026 | 3.8听% | |||
Revenue per visit(b)(i) | $听听听听听听听听听听听听 100 | $听听听听听听听听听听听听 100 | 0.0听% | |||
Adjusted EBITDA (,000) | $听听听听听听听 28,769 | $听听听听听听听 30,513 | 6.1听% | |||
Adjusted EBITDA margin | 9.1听% | 9.3听% | ||||
(a) | Includes managed locations. |
(b) | Excludes managed locations. |
(c) | Each patient day represents one patient occupying one bed for one day during the periods presented. |
(d) | Represents the number of patients admitted to Select Medical's hospitals during the periods presented. |
(e) | Represents the average amount of revenue recognized for each patient day. Revenue per patient day is calculated by dividing patient service revenues, excluding revenues from certain other ancillary and outpatient services provided at Select Medical's hospitals, by the total number of patient days. |
(f) | Represents the portion of our hospitals being utilized for patient care during the periods presented. Occupancy rate is calculated using the number of patient days, as presented above, divided by the total number of bed days available during the period. Bed days available is derived by adding the daily number of available licensed beds for each of the periods presented. |
(g) | Represents the number of days in which normal business operations were conducted during the periods presented. |
(h) | Represents the number of visits in which patients were treated at Select Medical's outpatient rehabilitation clinics during the periods presented. |
(i) | Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated by dividing patient service revenue, excluding revenues from certain other ancillary services, by the total number of visits. |
听
VIII.听 Key Statistics For the Six Months Ended June听30, 2024, and 2025 (unaudited) | ||||||
2024 | 2025 | % Change | ||||
Critical Illness Recovery Hospital | ||||||
Number of hospitals operated 鈥� end of period(a) | 107 | 104 | ||||
Revenue (,000) | $听听听 1,260,801 | $听听听 1,238,169 | (1.8)听% | |||
Number of patient days(b)(c) | 573,863 | 570,240 | (0.6)听% | |||
Number of admissions(b)(d) | 18,417 | 18,317 | (0.5)听% | |||
Revenue per patient day(b)(e) | $听听听听听听听听听听听 2,190 | $听听听听听听听听听听听 2,164 | (1.2)听% | |||
Occupancy rate(b)(f) | 69听% | 71听% | 2.9听% | |||
Adjusted EBITDA (,000) | $听听听听听听听 187,773 | $听听听听听听听 142,932 | (23.9)听% | |||
Adjusted EBITDA margin | 14.9听% | 11.5听% | ||||
Rehabilitation Hospital | ||||||
Number of hospitals operated 鈥� end of period(a) | 33 | 36 | ||||
Revenue (,000) | $听听听听听听听 533,531 | $听听听听听听听 621,163 | 16.4听% | |||
Number of patient days(b)(c) | 233,889 | 248,749 | 6.4听% | |||
Number of admissions(b)(d) | 16,600 | 17,950 | 8.1听% | |||
Revenue per patient day(b)(e) | $听听听听听听听听听听听 2,105 | $听听听听听听听听听听听 2,235 | 6.2听% | |||
Occupancy rate(b)(f) | 85听% | 82听% | (3.5)听% | |||
Adjusted EBITDA (,000) | $听听听听听听听 123,354 | $听听听听听听听 141,471 | 14.7听% | |||
Adjusted EBITDA margin | 23.1听% | 22.8听% | ||||
Outpatient Rehabilitation | ||||||
Number of clinics operated 鈥� end of period(a) | 1,925 | 1,919 | ||||
Working days(g) | 128 | 127 | ||||
Revenue (,000) | $听听听听听听听 618,654 | $听听听听听听听 634,926 | 2.6听% | |||
Number of visits(b)(h) | 5,562,751 | 5,643,990 | 1.5听% | |||
Revenue per visit(b)(i) | $听听听听听听听听听听听听听听 100 | $听听听听听听听听听听听听听听 101 | 1.0听% | |||
Adjusted EBITDA (,000) | $听听听听听听听听听 53,697 | $听听听听听听听听听 54,786 | 2.0听% | |||
Adjusted EBITDA margin | 8.7听% | 8.6听% | ||||
(a) | Includes managed locations. |
(b) | Excludes managed locations. |
(c) | Each patient day represents one patient occupying one bed for one day during the periods presented. |
(d) | Represents the number of patients admitted to Select Medical's hospitals during the periods presented. |
(e) | Represents the average amount of revenue recognized for each patient day. Revenue per patient day is calculated by dividing patient service revenues, excluding revenues from certain other ancillary and outpatient services provided at Select Medical's hospitals, by the total number of patient days. |
(f) | Represents the portion of our hospitals being utilized for patient care during the periods presented. Occupancy rate is calculated using the number of patient days, as presented above, divided by the total number of bed days available during the period. Bed days available is derived by adding the daily number of available licensed beds for each of the periods presented. |
(g) | Represents the number of days in which normal business operations were conducted during the periods presented. |
(h) | Represents the number of visits in which patients were treated at Select Medical's outpatient rehabilitation clinics during the periods presented. |
(i) | Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated by dividing patient service revenue, excluding revenues from certain other ancillary services, by the total number of visits. |
听
IX. Income from Continuing Operations, Net of Tax, to Adjusted EBITDA Reconciliation |
For the Three and Six Months Ended June 30, 2024 and 2025 |
(In thousands, unaudited) |
The presentation of Adjusted EBITDA is important to investors because Adjusted EBITDA is commonly used as an analytical indicator of performance by investors within the healthcare industry. Adjusted EBITDA is used by management to evaluate financial performance and determine resource allocation for each of Select Medical's segments. Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in
The following table reconciles income from continuing operations, net of tax, to Adjusted EBITDA for Select Medical. Adjusted EBITDA is used by Select Medical to report its segment performance. Adjusted EBITDA is defined as earnings from continuing operations excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, transaction costs associated with the Concentra separation, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries.
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2025 | 2024 | 2025 | |||||
Income from continuing operations, net of tax | $听听听听听听听听 37,638 | $听听听听听听听听 57,879 | $听听听听听听听听 99,167 | $听听听听听听 132,611 | ||||
Income tax expense | 18,215 | 12,292 | 44,895 | 33,745 | ||||
Interest expense | 27,994 | 29,978 | 68,675 | 59,050 | ||||
Equity in earnings of unconsolidated subsidiaries | (9,991) | (13,618) | (20,412) | (26,130) | ||||
Income from continuing operations, before other income and expense | 73,856 | 86,531 | 192,325 | 199,276 | ||||
Stock compensation expense: | ||||||||
Included in general and administrative | 11,874 | 3,159 | 21,556 | 6,267 | ||||
Included in cost of services | 2,373 | 873 | 4,135 | 1,657 | ||||
Depreciation and amortization | 36,069 | 34,848 | 71,653 | 69,656 | ||||
Concentra separation transaction costs | 557 | 鈥� | 835 | 鈥� | ||||
Adjusted EBITDA | $听听听听听听 124,729 | $听听听听听听 125,411 | $听听听听听听 290,504 | $听听听听听听 276,856 | ||||
Critical illness recovery hospital | $听听听听听听听听 71,833 | $听听听听听听听听 56,283 | $听听听听听听 187,773 | $听听听听听听 142,932 | ||||
Rehabilitation hospital | 61,954 | 71,047 | 123,354 | 141,471 | ||||
Outpatient rehabilitation | 28,769 | 30,513 | 53,697 | 54,786 | ||||
Other(a) | (37,827) | (32,432) | (74,320) | (62,333) | ||||
Adjusted EBITDA | $听听听听听听 124,729 | $听听听听听听 125,411 | $听听听听听听 290,504 | $听听听听听听 276,856 | ||||
(a)听 听Other primarily includes general and administrative costs. |
听
X. Income from Continuing Operations, Net of Tax, to Adjusted EBITDA Reconciliation |
Business Outlook for the Year Ending December 31, 2025 |
(In millions, unaudited) |
The following is a reconciliation of full year 2025 Adjusted EBITDA as computed at the low and high points of the range to the closest comparable GAAP financial measure. Refer to table IX for the definition of Adjusted EBITDA and discussion of Select Medical's use of Adjusted EBITDA in evaluating financial performance. Each item presented in the below table is an estimation of full year 2025 expectations.
Range | |||
Non-GAAP Measure Reconciliation | Low | High | |
Income from continuing operations, net of tax, attributable to Select Medical | $听听听听听听听听听听听听听听听听听听听听听听听听听听 141 | $听听听听听听听听听听听听听听听听听听听听听听听听听听 154 | |
Net income attributable to non-controlling interests | 73 | 76 | |
Income from continuing operations, net of tax | 214 | 230 | |
Income tax expense | 64 | 70 | |
Interest expense | 116 | 116 | |
Equity in earnings of unconsolidated subsidiaries | (49) | (51) | |
Income from continuing operations before other income and expense | 345 | 365 | |
Stock compensation expense | 19 | 19 | |
Depreciation and amortization | 146 | 146 | |
Adjusted EBITDA | $听听听听听听听听听听听听听听听听听听听听听听听听听听 510 | $听听听听听听听听听听听听听听听听听听听听听听听听听听 530 | |
听
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SOURCE Select Medical Holdings Corporation
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