StockNews.AI
SEM
StockNews.AI
12 days

Select Medical Holdings Corporation Announces Results For Its Third Quarter Ended September 30, 2024 and Cash Dividend

1. Select Medical's Q3 revenue rose 5.7% to $1.76 billion. 2. Net income increased 33.2% to $81 million in Q3 2024. 3. Board declared a $0.125 cash dividend per share. 4. Stock buyback program authorized for up to $1 billion. 5. Adjusted EBITDA up 6.0% to $205.5 million for Q3 2024.

45 mins saved
Full Article

FAQ

Why Bullish?

Strong earnings growth and dividend declaration suggest positive investor sentiment, boosting SEM potential.

How important is it?

The earnings report significantly improves outlook and demonstrates financial strength in operations.

Why Short Term?

Immediate positive market reaction expected due to strong quarterly results.

Related Companies

MECHANICSBURG, Pa., Oct. 31, 2024 /PRNewswire/ --

Select Medical Holdings Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM) today announced results for its third quarter ended September 30, 2024, and the declaration of a cash dividend.

Third Quarter Financial Results

For the third quarter ended September 30, 2024, revenue increased 5.7% to $1,761.2 million, compared to $1,665.7 million for the same quarter, prior year. Income from operations increased 8.6% to $141.1 million for the third quarter ended September 30, 2024, compared to $130.0 million for the same quarter, prior year. Net income increased 33.2% to $81.0 million for the third quarter ended September 30, 2024, compared to $60.8 million for the same quarter, prior year. Adjusted EBITDA increased 6.0% to $205.5 million for the third quarter ended September 30, 2024, compared to $193.8 million for the same quarter, prior year. Earnings per common share increased 13.2% to $0.43 for the third quarter ended September 30, 2024, compared to $0.38 for the same quarter, prior year. Adjusted earnings per common share increased 8.7% to $0.50 for the third quarter ended September 30, 2024, compared to $0.46 for the same quarter, prior year. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table IX of this release. A reconciliation of earnings per common share to adjusted earnings per common share is presented in table X of this release.

Nine Months Financial Results

For the nine months ended September 30, 2024, revenue increased 6.1% to $5,309.7 million, compared to $5,005.2 million for the same period, prior year. Income from operations increased 11.9% to $492.9 million for the nine months ended September 30, 2024, compared to $440.6 million for the same period, prior year. Net income increased 23.1% to $292.9 million for the nine months ended September 30, 2024, compared to $237.9 million for the same period, prior year. Adjusted EBITDA increased 10.6% to $693.7 million for the nine months ended September 30, 2024, compared to $627.4 million for the same period, prior year. Earnings per common share increased 14.8% to $1.78 for the nine months ended September 30, 2024, compared to $1.55 for the same period, prior year. Adjusted earnings per common share increased 14.1% to $1.86 for the nine months ended September 30, 2024, compared to $1.63 for the same period, prior year. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table IX of this release. A reconciliation of earnings per common share to adjusted earnings per common share is presented in table X of this release.

Company Overview

Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States based on the number of facilities. Select Medical's reportable segments include the critical illness recovery hospital segment, the rehabilitation hospital segment, the outpatient rehabilitation segment, and the Concentra segment. As of September 30, 2024, Select Medical operated 106 critical illness recovery hospitals in 29 states, 34 rehabilitation hospitals in 13 states, 1,925 outpatient rehabilitation clinics in 39 states and the District of Columbia, and 549 occupational health centers in 41 states. At September 30, 2024, Select Medical had operations in 46 states and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.

Critical Illness Recovery Hospital Segment

For the third quarter ended September 30, 2024, revenue for the critical illness recovery hospital segment increased 3.4% to $583.0 million, compared to $563.6 million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 9.5% to $50.8 million for the third quarter ended September 30, 2024, compared to $46.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was 8.7% for the third quarter ended September 30, 2024, compared to 8.2% for the same quarter, prior year.

Rehabilitation Hospital Segment

For the third quarter ended September 30, 2024, revenue for the rehabilitation hospital segment increased 14.4% to $282.7 million, compared to $247.1 million for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 12.1% to $60.1 million for the third quarter ended September 30, 2024, compared to $53.6 million for the same quarter, prior year.

Outpatient Rehabilitation Segment

For the third quarter ended September 30, 2024, revenue for the outpatient rehabilitation segment increased 6.9% to $312.0 million, compared to $291.8 million for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment increased 7.5% to $28.3 million for the third quarter ended September 30, 2024, compared to $26.3 million for the same quarter, prior year.

Concentra Segment

For the third quarter ended September 30, 2024, revenue for the Concentra segment increased 3.3% to $489.6 million, compared to $474.0 million for the same quarter, prior year. Adjusted EBITDA for the Concentra segment increased 2.7% to $101.6 million for the third quarter ended September 30, 2024, compared to $98.9 million for the same quarter, prior year.

Dividend Announcement

On October 30, 2024, Select Medical's Board of Directors declared a cash dividend of $0.125 per share. The dividend will be payable on or about November 26, 2024, to stockholders of record as of the close of business on November 13, 2024.

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. 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.

Investor Inquiries

For more information, please contact Joel T. Veit, Senior Vice President and Treasurer at 717-972-1100 or via email at [email protected].

Related News