Financial Performance - For the nine months ended September 30, 2022, the company reported total revenue of $4,752.1 million, with approximately 35% from the critical illness recovery hospital segment, 14% from the rehabilitation hospital segment, 18% from the outpatient rehabilitation segment, and 28% from the Concentra segment [74]. - Adjusted EBITDA for the nine months ended September 30, 2022, was $497.954 million, a decrease from $808.939 million in the same period of 2021 [78]. - Net income for the three months ended September 30, 2022, was $38.126 million, down from $100.217 million in the same period of 2021 [78]. - Total revenue for the company reached $1.57 billion for the three months ended September 30, 2022, up 2.2% from $1.53 billion in the same period of 2021 [84]. - Net income for the nine months ended September 30, 2022, was $160.3 million, down from $433.6 million for the same period in 2021 [87]. - Adjusted EBITDA for the company was $153.1 million in Q3 2022, reflecting a decrease of 26.6% compared to $208.6 million in Q3 2021 [85]. - Total revenue for the three months ended September 30, 2022, increased by 2.2% to $1,567.8 million compared to $1,534.2 million for the same period in 2021 [124]. - Total revenue for the nine months ended September 30, 2022, was $4,752.1 million, a 2.3% increase from $4,644.7 million in the same period of 2021 [87]. Segment Performance - The company operated 105 critical illness recovery hospitals, 31 rehabilitation hospitals, and 1,933 outpatient rehabilitation clinics as of September 30, 2022 [73]. - The company’s rehabilitation hospital segment generated approximately 14% of total revenue, highlighting its role in the overall business [74]. - Revenue for Critical Illness Recovery Hospital was $524.6 million for the three months ended September 30, 2022, a decrease of 1.1% compared to $530.6 million in the same period of 2021 [84]. - Rehabilitation Hospital revenue increased by 8.0% to $229.4 million in Q3 2022 from $212.4 million in Q3 2021 [85]. - Outpatient Rehabilitation revenue rose by 3.8% to $285.0 million in Q3 2022 compared to $274.5 million in Q3 2021 [85]. - Revenue from the Critical Illness Recovery Hospital segment decreased by 1.1% to $524.6 million, with revenue per patient day declining to $1,878 from $1,931 [125]. - Revenue for the Rehabilitation Hospital Segment increased by 7.3% to $678.9 million for the nine months ended September 30, 2022, with patient days rising by 3.7% to 321,690 [147]. - Revenue for the Outpatient Rehabilitation Segment rose by 4.6% to $844.2 million for the nine months ended September 30, 2022, driven by a 4.6% increase in patient visits to 7,165,866 [148]. - Concentra Segment's revenue was $1,309.4 million for the nine months ended September 30, 2022, down from $1,321.4 million in 2021, primarily due to a decline in COVID-19 screening revenue [149]. Operational Challenges - The company faced challenges due to the COVID-19 pandemic, impacting future operating results and financial condition [79]. - The company is subject to various risks, including changes in government reimbursement policies and competition, which could affect revenue and profitability [69]. - The company experienced a significant decline in income from operations, with a 50.3% decrease overall, and a notable drop of 89.4% in the Critical Illness Recovery Hospital segment [88]. - The company is navigating regulatory changes due to the COVID-19 pandemic, which may impact future financial performance [90]. - The company is focused on adapting to ongoing healthcare regulatory changes that may affect reimbursement and operational strategies [90]. Cost and Expenses - Operating expenses increased to $4,305.6 million, or 90.6% of revenue, for the nine months ended September 30, 2022, compared to $3,991.6 million, or 85.9% of revenue, for the same period in 2021 [151]. - The cost of services as a percentage of revenue increased from 84.6% in Q3 2021 to 88.9% in Q3 2022 [116]. - Total operating expenses for the three months ended September 30, 2022, were $1,433.3 million, representing 91.4% of revenue, up from 87.1% in the prior year [130]. Cash Flow and Dividends - Cash flows from operating activities were $272.3 million for the nine months ended September 30, 2022, down from $461.9 million in the same period of 2021 [168]. - The company had cash and cash equivalents of $108.2 million as of September 30, 2022, with $213.5 million available under its revolving facility [177]. - Cash dividends declared were $0.125 per share, with total cash dividends paid amounting to $16.7 million, $16.1 million, and $15.9 million in March, June, and September 2022 respectively [82]. - The board of directors declared a cash dividend of $0.125 per share on November 2, 2022, payable on or about November 29, 2022 [179]. Share Repurchase and Debt - The company repurchased 7,883,195 shares at a cost of approximately $185.1 million during the nine months ended September 30, 2022, as part of a $1.0 billion stock repurchase program [175]. - As of September 30, 2022, Select had outstanding borrowings of $2,103.4 million under a term loan and $380.0 million under a revolving facility [184]. - The company entered into an interest rate cap transaction to limit the 1-month LIBOR rate to 1.0% on $2.0 billion of principal outstanding under its term loan, effective through September 30, 2024 [185]. - As of September 30, 2022, the 1-month LIBOR rate was 3.14%, with $103.4 million of term loan borrowings subject to variable interest rates [185]. - Each 0.25% increase in market interest rates will impact the interest expense on Select's variable rate debt by $1.2 million [186].

Financial Data and Key Metrics Changes - The company experienced a revenue growth of 1.3% year-over-year, with total adjusted EBITDA of $181 million compared to $342 million in the prior year, resulting in an adjusted EBITDA margin of 11.4% versus 21.9% in the previous year [8][9] - CARES Act grant income recognized in Q2 was $15.1 million, down from $98 million in the prior year, leading to adjusted EBITDA of $165.9 million excluding grant income, compared to $244 million in the previous year [9][10] - Earnings per fully diluted share were $0.43 for Q2, down from $1.22 in the same quarter of the prior year [15] Business Line Data and Key Metrics Changes - **Critical Illness Recovery Hospitals**: Revenue and patient days slightly increased, but occupancy decreased to 67% from 69% year-over-year. Adjusted EBITDA margin fell to 4% from 13% due to increased labor costs [10][11] - **Inpatient Rehabilitation Hospitals**: Net revenues increased by 7.6% with patient volumes up 4%. Adjusted EBITDA margin decreased to 21.8% from 23.9% due to elevated agency costs [12][13] - **Concentra**: Revenue declined by $15 million compared to the prior year due to reduced demand for COVID-related testing. Adjusted EBITDA margin was 21%, down from 30% in the prior year [14] - **Outpatient Rehabilitation**: Net revenues increased by 2%, but adjusted EBITDA margin decreased to 11.7% from 16.3% due to rising labor costs [15] Market Data and Key Metrics Changes - The company expanded its footprint in Youngstown, Ohio, with a two-hospital acquisition and signed agreements for four new hospitals expected to open in 2023 [11][12] - The final CMS rules for fiscal 2023 included a 3.8% increase in the federal base rate for LTAC, which is higher than the proposed 2.8% [11][13] Company Strategy and Development Direction - The company is focused on recruiting and retaining clinical staff, particularly RNs, to reduce reliance on agency labor. There is an emphasis on training and retention programs to maintain quality care [5][27] - The company aims to return salary, wage, and benefit costs as a percentage of revenue to historical levels of 51%-52% from the current 64%-66% [19][41] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improvements in labor costs and stability in clinical labor by the end of the year, despite ongoing challenges [5][9] - The company reaffirmed its revenue outlook for 2022, expecting revenue between $6.25 billion and $6.4 billion, with a compounded annual growth rate target of 4%-6% over the next three years [22] Other Important Information - The company repurchased 5,438,939 shares at an average price of $23.16, with a remaining capacity to repurchase an additional $407 million worth of shares [15][22] - Interest expense increased to $41.1 million from $33.9 million in the prior year, attributed to rising LIBOR rates and increased borrowings [21] Q&A Session Summary Question: What initiatives are being taken to improve hiring? - Management highlighted the importance of training and retention efforts, noting that new hires require significant training before engaging in patient care [27][28] Question: What are the dynamics in outpatient rehab? - Management indicated that while outpatient rehab is improving, challenges remain, particularly in specific geographical areas [28] Question: What is the current utilization rate for LTAC? - The utilization rate for June was reported at 26.9% [29] Question: What are the target margins for the LTAC business? - Management believes that 15%-16% margins are achievable in the critical illness recovery hospitals, with current costs being higher due to labor expenses [41] Question: What factors are influencing nurse retention? - Management emphasized that retention is influenced by various factors beyond economics, including job satisfaction and operational improvements [44][46]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 4714 Gettysburg Road, P.O. Box 2034 Mechanicsburg, PA 17055 (Address of Principal Executive Offices and Zip code) (717) 972-1100 For the Quarterly Period Ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file numbers: 00 ...

Select Medical Holdings Corporation (NYSE:SEM) Q1 2022 Results Conference Call May 6, 2022 9:00 AM ET Company Participants Robert Ortenzio - Executive Chairman and Co-Founder Martin Jackson - EVP and CFO Conference Call Participants Justin Bowers - Deutsche Bank Michael Murray - RBC Capital Markets A.J. Rice - Credit Suisse Bill Sutherland, - The Benchmark Company Kevin Fischbeck - Bank of America Operator Good morning, and thank you for joining us today for Select Medical Holdings Corporation's earnings co ...

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file numbers: 001-34465 SELECT MEDICAL HOLDINGS CORPORATION (Exact name of Registrant as specified in its Charter) Delaware 20-1764048 (State or ...

Financial Data and Key Metrics Changes - Total company revenue for Q4 2021 was $1.56 billion, a 6.8% increase compared to the same quarter in the prior year. For the full year, total revenue increased 12.2% to $6.2 billion compared to $5.5 billion in the prior year [11] - Adjusted EBITDA for Q4 was $138.4 million, down from $221.3 million in the same quarter prior year, with an adjusted EBITDA margin of 8.9% compared to 15.2% [20][36] - Earnings per fully diluted share were $0.37 in Q4, down from $0.57 in the same quarter prior year, while for the full year, earnings per share were $2.98 compared to $1.93 in the prior year [28][41] Business Segment Data and Key Metrics Changes - Revenue in the Critical Illness Recovery Hospitals segment for Q4 increased 7.3% to $577 million, with patient days up 3.2% and net revenue per patient day increasing 3.5% to $1,946 [11][12] - Revenue in the Rehabilitation Hospital segment for Q4 increased 10.5% to $216 million, with patient days up 8.1% and net revenue per patient day increasing 2.7% to $1,888 [14] - Revenue in the Outpatient Rehab segment for Q4 increased 7.8% to $277 million, with patient visits up 9.2% [16] - Revenue in the Concentra segment for Q4 increased 3% to $411 million, with patient visits up 8.3% [18] Market Data and Key Metrics Changes - The company experienced substantial wage pressure in Q4, particularly in critical illness recovery hospitals, with agency nursing rates nearly doubling [6][30] - Patient days in the Critical Illness Recovery Hospitals segment were up 1.9% for the full year, while revenue per patient day increased 6.1% [13] Company Strategy and Development Direction - The company aims to continue admitting critically complex patients despite increased labor costs, leveraging strong referral relationships developed during the pandemic [31] - The company plans to maintain a capital expenditure range of $180 million to $200 million for 2022, primarily focused on maintenance [49][59] Management Comments on Operating Environment and Future Outlook - Management expressed concerns about macroeconomic labor market issues affecting guidance, particularly in the critical illness recovery hospitals segment [53] - The company expects revenue for 2022 to be in the range of $6.25 billion to $6.4 billion, reaffirming a 3-year compound annual growth rate target for revenue of 4% to 6% from 2021 to 2023 [49] Other Important Information - The company recorded $8 million in other operating income in Q4 related to Provider Relief Fund grant payments, compared to $36 million in the same quarter of the prior year [8] - The company ended the year with $3.6 billion of debt outstanding and $74 million of cash on the balance sheet [42] Q&A Session Summary Question: Can you talk about the philosophy behind the withdrawal of guidance? - Management indicated that the guidance was based on strong revenue visibility but was cautious due to macroeconomic labor market issues affecting costs [52][54] Question: Are labor issues isolated to critical illness recovery hospitals? - Labor cost issues are predominantly in critical illness recovery hospitals, with some impact noted in rehabilitation and outpatient rehab segments due to COVID-related staffing challenges [57][58] Question: What are the capital expenditure plans for 2022? - The majority of capital expenditures will be maintenance-related, with a range of $180 million to $200 million anticipated [59] Question: How do you view the testing and screening outlook for 2022? - Management anticipates a decrease in revenue from screening and testing as COVID wanes, but expects overall revenue growth for Concentra [100]

Use these links to rapidly review the document TABLE OF CONTENTS INDEX TO FINANCIAL STATEMENTS Table of Contents 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file numbers: 001-34465 SELECT MEDICAL HOLDINGS C ...

Select Medical Holdings Corp (NYSE:SEM) Q3 2021 Earnings Conference Call November 4, 2021 9:00 AM ET Company Participants Robert Ortenzio - Co-Founder & Executive Chairman Martin Jackson - EVP & CFO Conference Call Participants Justin Bowers - Deutsche Bank Frank Morgan - RBC Capital Markets Courtney Fondufe - Bank of America Merrill Lynch William Sutherland - The Benchmark Company A.J. Rice - Crédit Suisse Operator Good morning, and thank you for joining us today for Select Medical Holdings Corporation's e ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file numbers: 001-34465 SELECT MEDICAL HOLDINGS CORPORATION (Exact name of Registrant as specified in its Charter) Delaware 20-1764048 (Stat ...

Select Medical Holdings Corporation (NYSE:SEM) Q2 2021 Earnings Conference Call August 6, 2021 9:30 AM ET Company Participants Robert Ortenzio - Executive Chairman and Co-Founder Martin Jackson - Executive Vice President & Chief Financial Officer Conference Call Participants Frank Morgan - RBC Capital Markets Justin Bowers - Deutsche Bank Courtney Fondufe - Bank of America Bill Sutherland - Benchmark Company Operator Good morning, and thank you for joining us today for the Select Medical Holdings Corporatio ...