{"id":816032,"date":"2025-02-20T16:49:32","date_gmt":"2025-02-20T21:49:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/select-medical-holdings-corporation-announces-results-for-its-fourth-quarter-and-year-ended-december-31-2024-its-2025-business-outlook-and-cash-dividend\/"},"modified":"2025-02-20T16:49:32","modified_gmt":"2025-02-20T21:49:32","slug":"select-medical-holdings-corporation-announces-results-for-its-fourth-quarter-and-year-ended-december-31-2024-its-2025-business-outlook-and-cash-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/select-medical-holdings-corporation-announces-results-for-its-fourth-quarter-and-year-ended-december-31-2024-its-2025-business-outlook-and-cash-dividend\/","title":{"rendered":"Select Medical Holdings Corporation Announces Results For Its Fourth Quarter and Year Ended December 31, 2024, Its 2025 Business Outlook, and Cash Dividend"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n MECHANICSBURG, Pa.<\/span>
\n <\/span>, Feb. 20, 2025<\/span><\/span> \/PRNewswire\/ — Select Medical Holdings Corporation (“Select Medical,” “we,” “us,” or “our”) (NYSE: SEM) today announced results for its fourth quarter and year ended December\u00a031, 2024, its 2025 business outlook, and the declaration of a cash dividend.<\/p>\n

On November 25, 2024<\/span>, 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<\/span>. 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.<\/p>\n

For\u00a0the fourth quarter ended December\u00a031, 2024, revenue increased 7.8% to $1,312.6 million<\/span>, compared to $1,218.1 million<\/span> for the same quarter, prior year. Income from continuing operations before other income and expense was $21.1 million<\/span> for the fourth quarter ended December 31, 2024<\/span>, compared to $64.9 million<\/span> for the same quarter, prior year. Loss from continuing operations, net of tax, was $10.5 million<\/span> for the fourth quarter ended December 31, 2024<\/span>, compared to income from continuing operations, net of tax, of $30.3 million<\/span> for the same quarter, prior year. In connection with the distribution of Concentra, there was a one-time acceleration of $45.9 million<\/span> of stock compensation expense, which reduced income (loss) from continuing operations for the quarter ended December 31, 2024<\/span>. Additionally, during the quarter ended December 31, 2024<\/span>, we recognized a loss on early retirement of debt of $17.9 million<\/span> as a result of the debt refinancing transactions described below. Adjusted EBITDA increased 3.8% to $116.0 million<\/span> for the fourth quarter ended December 31, 2024<\/span>, compared to $111.8 million<\/span> for the same quarter, prior year. Diluted loss per common share from continuing operations was $0.19<\/span> for the fourth quarter ended December 31, 2024<\/span>, compared to earnings per common share from continuing operations of $0.12<\/span> 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%\u00a0to\u00a0$0.18 for the fourth quarter ended December\u00a031, 2024, compared to $0.12<\/span> 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.<\/p>\n

For the year ended December\u00a031, 2024, revenue increased 7.5% to $5,187.1 million<\/span>, compared to $4,826.0 million<\/span> for the prior year. Income from continuing operations before other income and expense increased 0.4% to $268.3 million<\/span> for the year ended December\u00a031, 2024, compared to $267.2 million<\/span> for the prior year. Income from continuing operations, net of tax, increased 17.7% to $130.0 million<\/span> for the year ended December\u00a031, 2024, compared to $110.5 million<\/span> for the prior year. In connection with the distribution of Concentra, there was a one-time acceleration of $45.9 million<\/span> of stock compensation expense, which reduced income from continuing operations for the year ended December 31, 2024<\/span>. Additionally, during the year ended December 31, 2024<\/span>, we recognized a loss on early retirement of debt of $28.8 million<\/span>. Adjusted EBITDA increased 14.4% to $510.4 million<\/span> for the year ended December\u00a031, 2024, compared to $446.1 million<\/span> for the prior year. Earnings per common share from continuing operations, net of tax, increased 10.9% to $0.51<\/span> for the year ended December\u00a031, 2024, compared to $0.46<\/span> 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<\/span> for the year ended December\u00a031, 2024, compared to $0.54<\/span> 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 release.<\/p>\n

\n Company Overview<\/u>\n <\/p>\n

Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States<\/span> 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<\/span>, 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<\/span>. At December 31, 2024<\/span>, Select Medical had operations in 40 states and the District of Columbia<\/span>. Information about Select Medical is available at www.selectmedical.com<\/a><\/u>.<\/p>\n

\n Critical Illness Recovery Hospital Segment<\/u>\n <\/p>\n

For the fourth quarter ended December 31, 2024<\/span>, revenue for the critical illness recovery hospital segment increased 5.9% to $600.4 million<\/span>, compared to $567.1 million<\/span> for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 10.0% to $63.1 million<\/span> for the fourth quarter ended December 31, 2024<\/span>, compared to $57.4 million<\/span> 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<\/span>, 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<\/span> and 2023.<\/p>\n

For the year ended December 31, 2024<\/span>, revenue for the critical illness recovery hospital segment increased 6.3% to $2,444.2 million<\/span>, compared to $2,299.8 million<\/span> for the prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 22.6% to $301.6 million<\/span> for the year ended December 31, 2024<\/span>, compared to $246.0 million<\/span> 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<\/span>, 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<\/span> and 2023.<\/p>\n

\n Rehabilitation Hospital Segment<\/u>\n <\/p>\n

For the fourth quarter ended December 31, 2024<\/span>, revenue for the rehabilitation hospital segment increased 13.1% to $294.4 million<\/span>, compared to $260.2 million<\/span> for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment was $62.3 million<\/span> for the fourth quarter ended December 31, 2024<\/span>, compared to $66.3 million<\/span> 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<\/span>, 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<\/span> and 2023.<\/p>\n

For the year ended December 31, 2024<\/span>, revenue for the rehabilitation hospital segment increased 13.4% to $1,110.6 million<\/span>, compared to $979.6 million<\/span> for the prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 10.8% to $245.7 million<\/span> for the year ended December 31, 2024<\/span>, compared to $221.9 million<\/span> for the prior year. The Adjusted EBITDA margin for the rehabilitation hospital segment was 22.1% for the year ended December 31, 2024<\/span>, 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<\/span> and 2023.<\/p>\n

\n Outpatient Rehabilitation Segment<\/u>\n <\/p>\n

For the fourth quarter ended December 31, 2024<\/span>, revenue for the outpatient rehabilitation segment increased 7.2% to $319.6 million<\/span>, compared to $298.2 million<\/span> for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 18.2% to $26.6 million<\/span> for the fourth quarter ended December 31, 2024<\/span>, compared to $22.5 million<\/span> 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<\/span>, 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<\/span> and 2023.<\/p>\n

For the year ended December 31, 2024<\/span>, revenue for the outpatient rehabilitation segment increased 5.2% to $1,250.3 million<\/span>, compared to $1,188.9 million<\/span> for the prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $108.6 million<\/span> for the year ended December 31, 2024<\/span>, compared to $111.9 million<\/span> for the prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 8.7% for the year ended December 31, 2024<\/span>, 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<\/span> and 2023.<\/p>\n

\n Dividend<\/u>\n <\/p>\n

On February\u00a013, 2025, Select Medical’s board of directors declared a cash dividend of $0.0625<\/span> per share. The dividend will be payable on or about March\u00a013, 2025 to stockholders of record as of the close of business on March\u00a03, 2025.<\/p>\n

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.<\/p>\n

\n Stock Repurchase Program<\/u>\n <\/p>\n

The board of directors of Select Medical has authorized a common stock repurchase program to repurchase up to $1.0 billion<\/span> worth of shares of its common stock. The common stock repurchase program will remain in effect until December 31, 2025<\/span>, 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.<\/p>\n

Select Medical did not repurchase shares under its authorized stock repurchase program during the year ended December\u00a031, 2024. Since the inception of the common stock repurchase program through December\u00a031, 2024, Select Medical has repurchased 48,234,823 shares at a cost of approximately $600.3 million<\/span>, or $12.45<\/span> per share, which includes transaction costs.<\/p>\n

\n Financing Transactions<\/u>\n <\/p>\n

On December 3, 2024<\/span>, we entered into Amendment No. 11 to our credit agreement. Amendment No. 11 established a new incremental term loan in the aggregate amount of $1,050.0 million<\/span>. The maturity date of the term loan is December 3, 2031<\/span>. In addition, Amendment No. 11 extended the maturity date of the revolving credit facility to December 3, 2029<\/span> and increased the revolving credit facility commitments from $550<\/span>.0\u00a0million to $600<\/span>.0\u00a0million. The interest rate on the term loan is equal to Term SOFR plus 2.00%, or the Alternative Base Rate (as defined in the credit agreement) plus 1.00%. The interest rate on the revolving facility is equal to Adjusted Term SOFR plus a percentage ranging from 2.25% to 2.50%, or the Alternative Base Rate (as defined in the credit agreement) plus a percentage ranging from 1.25% to 1.50%, in each case subject to a specified leverage ratio.<\/p>\n

On December 3, 2024<\/span>, Select issued and sold $550.0 million<\/span> aggregate principal amount of 6.250% senior notes due December 1, 2032<\/span>. Select used the net proceeds of the 6.250% senior notes due 2032, together with the proceeds from the incremental term loan borrowings (as described above) and cash on hand, to redeem in full the $1,225<\/span>.0\u00a0million senior notes due 2026, repay the existing term loans, and pay related fees and expenses associated with the financing. Interest on the 2032 senior notes accrues at the rate of 6.250% per annum and is payable semi-annually in arrears on June 1<\/span> and December 1<\/span> of each year, beginning on June 1, 2025<\/span>.<\/p>\n

\n Business Outlook<\/u>\n <\/p>\n

Select Medical is issuing its business outlook for 2025. Select Medical expects revenue to be in the range of $5.4 billion<\/span> to $5.6 billion<\/span>, Adjusted EBITDA to be in the range of $520.0 million<\/span> to $540.0 million<\/span>, and fully diluted earnings per share to be in the range of $1.09<\/span> to $1.19<\/span>. A reconciliation of full year 2025 Adjusted EBITDA expectations to income from continuing operations, net of tax, is presented in table XI of this release.<\/p>\n

\n Conference Call<\/u>\n <\/p>\n

Select Medical will host a conference call regarding its results for the fourth quarter and full year ended December\u00a031, 2024, and its business outlook on Friday, February 21, 2025<\/span>, at 9:00am ET<\/span>. The conference call will be a live webcast and can be accessed at Select Medical Holdings Corporation’s website at www.selectmedicalholdings.com<\/a><\/u>. A replay of the webcast will be available shortly after the call through the same link.<\/p>\n

For listeners wishing to dial-in via telephone, or participate in the question and answer session, you may pre-register for the call at Select Medical Earnings Call Registration<\/a><\/u>\u00a0to obtain your dial-in number and unique passcode.<\/p>\n

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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 long-term 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:<\/p>\n