{"id":845710,"date":"2025-05-01T17:19:42","date_gmt":"2025-05-01T21:19:42","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/select-medical-holdings-corporation-announces-results-for-its-first-quarter-ended-march-31-2025-and-cash-dividend\/"},"modified":"2025-05-01T17:19:42","modified_gmt":"2025-05-01T21:19:42","slug":"select-medical-holdings-corporation-announces-results-for-its-first-quarter-ended-march-31-2025-and-cash-dividend","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/select-medical-holdings-corporation-announces-results-for-its-first-quarter-ended-march-31-2025-and-cash-dividend\/","title":{"rendered":"Select Medical Holdings Corporation Announces Results For Its First Quarter Ended March 31, 2025 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>, May 1, 2025<\/span><\/span> \/PRNewswire\/ — Select Medical Holdings Corporation (“Select Medical,” “we,” “us,” or “our”) (NYSE: SEM) today announced results for its first quarter ended March 31, 2025<\/span>, and the declaration of a cash dividend.<\/p>\n

For the first quarter ended March\u00a031, 2025, revenue increased 2.4% to $1,353.2 million<\/span>, compared to $1,321.2 million<\/span> for the same quarter, prior year. Income from continuing operations before other income and expense was $112.7 million<\/span> for the first quarter ended March\u00a031, 2025, compared to $118<\/span>.5\u00a0million for the same quarter, prior year. Income from continuing operations, net of tax, increased 21.5% to $74.7 million<\/span> for the first quarter ended March\u00a031, 2025, compared to $61.5 million<\/span> for the same quarter, prior year. Adjusted EBITDA was $151.4 million<\/span> for the first quarter ended March\u00a031, 2025, compared to $165.8 million<\/span> for the same quarter, prior year. Earnings per common share from continuing operations increased 33.3% to $0.44<\/span> for the first quarter ended March\u00a031, 2025, compared to $0.33<\/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 VI of this release.<\/p>\n

On November 25, 2024<\/span>, Select completed a tax-free distribution of 104,093,503 shares of common stock of Concentra Group Holdings Parent,\u00a0Inc. (“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 months ended March\u00a031, 2024.<\/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 March\u00a031, 2025, Select Medical operated 104 critical illness recovery hospitals in 29 states, 35 rehabilitation hospitals in 14 states, and 1,911 outpatient rehabilitation clinics in 39 states and the District of Columbia<\/span>. At March\u00a031, 2025, 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 first quarter ended March\u00a031, 2025, revenue for the critical illness recovery hospital segment was $637.0 million<\/span>, compared to $655.9 million<\/span> for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $86.6 million<\/span> for the first quarter ended March\u00a031, 2025, compared to $115.9 million<\/span> for the same quarter, prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 13.6% for the first quarter ended March\u00a031, 2025, compared to 17.7% for the same quarter, prior year. Certain critical illness recovery hospital key statistics are presented in table V of this release for the first quarters ended March\u00a031, 2025 and 2024.<\/p>\n

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

For the first quarter ended March\u00a031, 2025, revenue for the rehabilitation hospital segment increased 15.7% to $307.4 million<\/span>, compared to $265.7 million<\/span> for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 14.7% to $70.4 million<\/span> for the first quarter ended March\u00a031, 2025, compared to $61.4 million<\/span> for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation hospital segment was 22.9% for the first quarter ended March\u00a031, 2025, compared to 23.1% for the same quarter, prior year. Certain rehabilitation hospital key statistics are presented in table V of this release for the first quarters ended March\u00a031, 2025 and 2024.<\/p>\n

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

For the first quarter ended March\u00a031, 2025, revenue for the outpatient rehabilitation segment increased 1.4% to $307.3 million<\/span>, compared to $303.2 million<\/span> for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $24.3 million<\/span> for the first quarter ended March\u00a031, 2025, compared to $24.9 million<\/span> for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 7.9% for the first quarter ended March\u00a031, 2025, compared to 8.2% for the same quarter, prior year. Certain outpatient rehabilitation key statistics are presented in table V of this release for the first quarters ended March\u00a031, 2025 and 2024.<\/p>\n

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

On April\u00a030, 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 May\u00a029, 2025, to stockholders of record as of the close of business on May\u00a015, 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\u00a031, 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.<\/p>\n

During the first quarter ended March\u00a031, 2025, Select Medical repurchased 649,804 shares at a cost of approximately $11.4 million<\/span>, or $17.52<\/span> per share, which includes transaction costs. From the inception of the common stock repurchase program through March\u00a031, 2025, Select Medical has repurchased 48,884,627 shares at a cost of approximately $611.7 million<\/span>, or $12.51<\/span> per share, which includes transaction costs.<\/p>\n

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

Select Medical is adjusting its 2025 business outlook for revenue and Adjusted EBITDA and reaffirming its 2025 business outlook for fully diluted earnings per share, which was provided most recently in its February 20, 2025<\/span>, press release. For fiscal year 2025, Select Medical expects revenue to be in the range of $5.3 billion<\/span> to $5.5 billion<\/span>, Adjusted EBITDA to be in the range of $510.0 million<\/span> to $530.0 million<\/span>, and fully diluted earnings per share to be in the range of $1.09<\/span> to $1.19<\/span>. Reconciliations of full year 2025 Adjusted EBITDA expectations to income from operations, net of tax, is presented in table VII of this release.<\/p>\n

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

Select Medical will host a conference call regarding its first quarter results and its business outlook on Friday, May 2, 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\u00a0Select 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 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