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Select Medical Holdings Corporation Announces Results For Its Second Quarter Ended June 30, 2025 and Cash Dividend

By PR Newswire | July 31, 2025, 4:30 PM

MECHANICSBURG, Pa., July 31, 2025 /PRNewswire/ -- 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 dividend.

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.

Company Overview

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, 2025 and 2024.

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 and 2024.

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 2024.

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 2024.

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.

Dividend

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 repurchase.

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 $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.

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 www.selectmedicalholdings.com. 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 Select Medical Earnings Call Registration to obtain your dial-in number and unique passcode.

*   *   *   *   *

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 the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results or performance.

Investor inquiries:

Joel T. Veit

Senior Vice President and Treasurer

717-972-1100

[email protected]

I.  Condensed Consolidated Statements of Operations

For the Three Months Ended June 30, 2024 and 2025

(In thousands, except per share amounts, unaudited)







2024



2025



% Change

Revenue



$             1,281,748



$             1,339,579



4.5 %

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





N/M

Income tax expense from discontinued business



14,027





N/M

Income from discontinued operations, net of tax



57,128





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



$                  77,563



$                  40,571



(47.7) %

Net income attributable to Select Medical's common stockholders:













Income from continuing operations, net of tax



$                  21,757



$                  40,571





Income from discontinued operations, net of tax



55,806







Net income attributable to Select Medical's common stockholders



$                  77,563



$                  40,571





Earnings per common share:













Continuing operations - basic and diluted



$                       0.17



$                       0.32





Discontinued operations - basic and diluted



0.43







Total earnings per common share - basic and diluted(1)



$                       0.60



$                       0.32







(1)           Refer to table III for calculation of earnings per common share.

N/M        Not meaningful

 

II.  Condensed Consolidated Statements of Operations

For the Six Months Ended June 30, 2024 and 2025

(In thousands, except per share amounts, unaudited)







2024



2025



% Change

Revenue



$             2,602,959



$             2,692,751



3.4 %

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





N/M

Income tax expense from discontinued business



23,805





N/M

Income from discontinued operations, net of tax



112,766





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



$                174,460



$                  97,252



(44.3) %

Net income attributable to Select Medical's common stockholders:













Income from continuing operations, net of tax



$                  64,339



$                  97,252





Income from discontinued operations, net of tax



110,121







Net income attributable to Select Medical's common stockholders



$                174,460



$                  97,252





Earnings per common share:













Continuing operations - basic and diluted



$                       0.50



$                       0.76





Discontinued operations - basic and diluted



0.85







Total earnings per common share - basic and diluted(1)



$                       1.35



$                       0.76







(1)           Refer to table III for calculation of earnings per common share.

N/M        Not meaningful

 

III.  Earnings per Share

For the Three and Six Months Ended June 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 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



$         37,638



$         57,879



$         99,167



$       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

Select Medical's common stockholders



21,757



40,571



64,339



97,252

Less: distributed and undistributed net income attributable to

participating securities



932



820



2,508



1,965

Distributed and undistributed income from continuing

operations, net of tax, attributable to common shares



$         20,825



$         39,751



$         61,831



$         95,287

 

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

Continuing

Operations,

Net of Tax,

Allocation



Shares(1)



Basic and

Diluted EPS





Income from

Continuing

Operations,

Net of Tax,

Allocation



Shares(1)



Basic and

Diluted EPS

Common shares



$         20,825



123,946



$              0.17





$            39,751



123,359



$              0.32

Participating securities



932



5,550



$              0.17





820



2,545



$              0.32

Total



$         21,757













$            40,571









 





Six Months Ended June 30,





2024





2025





Income from

Continuing

Operations,

Net of Tax,

Allocation



Shares(1)



Basic and

Diluted EPS





Income from

Continuing

Operations,

Net of Tax,

Allocation



Shares(1)



Basic and

Diluted EPS

Common shares



$         61,831



123,902



$              0.50





$            95,287



124,774



$              0.76

Participating securities



2,508



5,026



$              0.50





1,965



2,573



$              0.76

Total



$         64,339













$            97,252











(1)    Represents the weighted average share count outstanding during the period.

 

IV.  Condensed Consolidated Balance Sheets

(In thousands, unaudited)







December 31, 2024



June 30, 2025

Assets









Current Assets:









Cash and cash equivalents



$                       59,694



$                       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



$                 5,607,951



$                 5,742,250

Liabilities and Equity









Current Liabilities:









Payables and accruals



$                     777,781



$                     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



$                 5,607,951



$                 5,742,250

 

V.  Condensed Consolidated Statements of Cash Flows

For the Three Months Ended June 30, 2024 and 2025

(In thousands, unaudited)







2024



2025

Operating activities









Net income



$                       94,766



$                       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)



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





(2,625)

Borrowings of other debt





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



$                     111,160



$                       52,349

Supplemental information









Cash paid for interest, excluding amounts received of $22,439 under the

interest rate cap contract during the three months ended June 30, 2024



$                       53,044



$                       38,293

Cash paid for taxes



60,222



19,580

 

VI.  Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2024 and 2025

(In thousands, unaudited)







2024



2025

Operating activities









Net income



$                     211,933



$                     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)



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



$                     111,160



$                       52,349

Supplemental information









Cash paid for interest, excluding amounts received of $44,954 under the

interest rate cap contract during the six months ended June 30, 2024



$                     141,878



$                       62,065

Cash paid for taxes



60,826



21,052

 

VII.  Key Statistics

For the Three Months Ended June 30, 2024, and 2025

(unaudited)







2024



2025



% Change

Critical Illness Recovery Hospital













Number of hospitals operated – end of period(a)



107



104





Revenue (,000)



$      604,921



$      601,139



(0.6) %

Number of patient days(b)(c)



279,241



278,916



(0.1) %

Number of admissions(b)(d)



8,888



8,966



0.9 %

Revenue per patient day(b)(e)



$          2,159



$          2,148



(0.5) %

Occupancy rate(b)(f)



67 %



69 %



3.0 %

Adjusted EBITDA (,000)



$        71,833



$        56,283



(21.6) %

Adjusted EBITDA margin



11.9 %



9.4 %





Rehabilitation Hospital













Number of hospitals operated – end of period(a)



33



36





Revenue (,000)



$      267,831



$      313,775



17.2 %

Number of patient days(b)(c)



117,045



125,927



7.6 %

Number of admissions(b)(d)



8,325



9,102



9.3 %

Revenue per patient day(b)(e)



$          2,113



$          2,236



5.8 %

Occupancy rate(b)(f)



84 %



82 %



(2.4) %

Adjusted EBITDA (,000)



$        61,954



$        71,047



14.7 %

Adjusted EBITDA margin



23.1 %



22.6 %





Outpatient Rehabilitation













Number of clinics operated – end of period(a)



1,925



1,919





Working days(g)



64



64





Revenue (,000)



$      315,496



$      327,584



3.8 %

Number of visits(b)(h)



2,827,625



2,934,026



3.8 %

Revenue per visit(b)(i)



$             100



$             100



0.0 %

Adjusted EBITDA (,000)



$        28,769



$        30,513



6.1 %

Adjusted EBITDA margin



9.1 %



9.3 %









(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.

 

VIII.  Key Statistics

For the Six Months Ended June 30, 2024, and 2025

(unaudited)







2024



2025



% Change

Critical Illness Recovery Hospital













Number of hospitals operated – end of period(a)



107



104





Revenue (,000)



$    1,260,801



$    1,238,169



(1.8) %

Number of patient days(b)(c)



573,863



570,240



(0.6) %

Number of admissions(b)(d)



18,417



18,317



(0.5) %

Revenue per patient day(b)(e)



$            2,190



$            2,164



(1.2) %

Occupancy rate(b)(f)



69 %



71 %



2.9 %

Adjusted EBITDA (,000)



$        187,773



$        142,932



(23.9) %

Adjusted EBITDA margin



14.9 %



11.5 %





Rehabilitation Hospital













Number of hospitals operated – end of period(a)



33



36





Revenue (,000)



$        533,531



$        621,163



16.4 %

Number of patient days(b)(c)



233,889



248,749



6.4 %

Number of admissions(b)(d)



16,600



17,950



8.1 %

Revenue per patient day(b)(e)



$            2,105



$            2,235



6.2 %

Occupancy rate(b)(f)



85 %



82 %



(3.5) %

Adjusted EBITDA (,000)



$        123,354



$        141,471



14.7 %

Adjusted EBITDA margin



23.1 %



22.8 %





Outpatient Rehabilitation













Number of clinics operated – end of period(a)



1,925



1,919





Working days(g)



128



127





Revenue (,000)



$        618,654



$        634,926



2.6 %

Number of visits(b)(h)



5,562,751



5,643,990



1.5 %

Revenue per visit(b)(i)



$               100



$               101



1.0 %

Adjusted EBITDA (,000)



$          53,697



$          54,786



2.0 %

Adjusted EBITDA margin



8.7 %



8.6 %









(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.

 

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 United States of America ("GAAP"). Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to, or substitute for, income from continuing operations, income from continuing operations before other income and expense, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying definitions, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.

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

$         37,638



$         57,879





$         99,167



$       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







835



Adjusted EBITDA

$       124,729



$       125,411





$       290,504



$       276,856



















Critical illness recovery hospital

$         71,833



$         56,283





$       187,773



$       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

$       124,729



$       125,411





$       290,504



$       276,856



(a)   Other primarily includes general and administrative costs.

 

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

$                           141



$                           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

$                           510



$                           530

 

View original content:https://www.prnewswire.com/news-releases/select-medical-holdings-corporation-announces-results-for-its-second-quarter-ended-june-30-2025-and-cash-dividend-302518956.html

SOURCE Select Medical Holdings Corporation

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