Core Viewpoint - Select Medical Holdings Corporation reported strong financial results for the third quarter and nine months ended September 30, 2024, with significant increases in revenue, net income, and earnings per share, alongside the declaration of a cash dividend and a stock repurchase program. Financial Performance - For Q3 2024, revenue increased by 5.7% to $1,761.2 million from $1,665.7 million in Q3 2023 [1] - Income from operations rose by 8.6% to $141.1 million compared to $130.0 million in the prior year [1] - Net income surged by 33.2% to $81.0 million from $60.8 million year-over-year [1] - Adjusted EBITDA grew by 6.0% to $205.5 million from $193.8 million in Q3 2023 [1] - Earnings per share increased by 13.2% to $0.43 from $0.38 in the same quarter last year [1] Segment Performance Critical Illness Recovery Hospital Segment - Revenue increased by 3.4% to $583.0 million in Q3 2024 from $563.6 million in Q3 2023 [3] - Adjusted EBITDA rose by 9.5% to $50.8 million, with an adjusted EBITDA margin of 8.7% [3] Rehabilitation Hospital Segment - Revenue increased by 14.4% to $282.7 million in Q3 2024 from $247.1 million in Q3 2023 [4] - Adjusted EBITDA increased by 12.1% to $60.1 million, with an adjusted EBITDA margin of 21.3% [4] Outpatient Rehabilitation Segment - Revenue increased by 6.9% to $312.0 million in Q3 2024 from $291.8 million in Q3 2023 [4] - Adjusted EBITDA rose by 7.5% to $28.3 million, with an adjusted EBITDA margin of 9.1% [4] Concentra Segment - Revenue increased by 3.3% to $489.6 million in Q3 2024 from $474.0 million in Q3 2023 [5] - Adjusted EBITDA increased by 2.7% to $101.6 million, with an adjusted EBITDA margin of 20.7% [5] Dividend and Stock Repurchase - The Board of Directors declared a cash dividend of $0.125 per share, payable on or about November 26, 2024 [6] - A stock repurchase program was authorized to repurchase up to $1.0 billion worth of shares, effective until December 31, 2025 [6] Business Outlook - The company updated its 2024 business outlook, expecting revenue between $6.95 billion and $7.15 billion, with adjusted EBITDA between $865.0 million and $885.0 million [7]

Group 1 - A new joint venture between Select Medical and SSM Health will establish a 50-bed inpatient rehabilitation hospital in Oklahoma City, named SSM Health Rehabilitation Hospital – Oklahoma City, set to open in December 2024 [1] - The new hospital will incorporate SSM Health's existing 12-bed acute rehabilitation unit from St. Anthony Hospital in Oklahoma City [1] - This partnership aims to enhance access to high-quality rehabilitation services in the region, building on a 15-year collaboration between the two organizations [2][3] Group 2 - Select Medical will be the majority owner and managing partner of the new joint venture, reflecting their commitment to quality, safety, and outcomes in post-acute care [3] - The existing partnership includes three inpatient rehabilitation hospitals and numerous outpatient physical therapy centers across the St. Louis region, demonstrating a strong operational footprint [2] - As of June 30, 2024, Select Medical operates 107 critical illness recovery hospitals and 33 rehabilitation hospitals across the United States, indicating significant scale and reach in the healthcare sector [5]

Group 1 - Select Medical Holdings (NYSE: SEM) has shown strong performance over the past couple of years, indicating a bullish outlook for the company [1] - The company is one of the largest operators in its sector, which contributes to its growth potential [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a 50+ stock model account, in-depth cash flow analyses of exploration and production firms, and live chat discussions about the sector [2]

Company Overview - Select Medical Holdings Corporation 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 [4] - As of June 30, 2024, Select Medical operated 107 critical illness recovery hospitals in 28 states, 33 rehabilitation hospitals in 12 states, 1,925 outpatient rehabilitation clinics in 39 states and the District of Columbia, 547 occupational health centers in 41 states, and 154 onsite clinics at employer worksites [4] - The company has operations in 46 states and the District of Columbia [4] Financial Results Announcement - Select Medical will release its financial results for the third quarter ended September 30, 2024, on Thursday, October 31, 2024, after the market closes [1] - A conference call regarding the third quarter results and business outlook will be hosted on Friday, November 1, 2024, at 9:00 am ET [2] - The conference call will be available as a live webcast and can be accessed through Select Medical's website [2]

Core Viewpoint - Select Medical Holdings Corporation (SEM) has experienced a significant share price increase of 50.2% year-to-date, outperforming the industry and the S&P 500 Index, but faces challenges that may impact future performance [1]. Group 1: Stock Performance - SEM's stock is currently trading at $35.30, nearing the upper end of its 52-week range of $21.28 to $40.50 [1]. - The stock is trading below its 50-day moving average, indicating potential downward momentum [2]. Group 2: Financial Performance and Costs - Rising costs and expenses have negatively impacted SEM's profitability, with costs increasing by 11.5% in 2021, 5.8% in 2022, and 2.5% in 2023, and a further 5.6% rise in the first half of 2024 [3]. - A projected year-over-year rise of over 4% in overall costs for the current year is expected to pressure profit margins [3]. Group 3: Capital Efficiency and Leverage - SEM's return on invested capital is 6.1%, which is below the industry average of 10.6%, indicating less efficient capital utilization [4]. - The company's net debt-to-capital ratio is 67%, significantly higher than the industry average of 21.7%, with long-term debt totaling $3.6 billion and cash and cash equivalents at $111.2 million as of June 30, 2024 [5]. Group 4: Valuation and Earnings Estimates - SEM is trading at a forward 12-month price-to-earnings multiple of 16.21X, higher than its five-year median of 12.99X and close to the industry's average of 16.59X, suggesting limited growth potential [6]. - The Zacks Consensus Estimate for SEM's current-quarter adjusted earnings is 41 cents per share, reflecting a 10.9% year-over-year decline, with a further 13.9% decline projected for the next quarter [6]. Group 5: Growth Opportunities - Despite rising costs, increasing admissions and patient days are expected to drive revenue growth, particularly in the Rehabilitation Hospital unit [7]. - SEM plans to add 449 additional beds by 2026 to meet rising demand and boost volumes [7]. Group 6: Market Sentiment - The negative sentiment surrounding SEM is evident, with earnings per share estimates declining, leading to caution among investors [8].

MECHANICSBURG, Pa., Sept. 4, 2024 /PRNewswire/ -- Select Medical Corporation ("Select Medical") today announced the signing of a definitive agreement to purchase Valir Rehabilitation Hospital, a 50-bed inpatient rehabilitation facility in Oklahoma City, from Valir Health. Financial terms of the deal were not disclosed. "We are excited to bring best-in-class inpatient rehabilitative care to meet the demands of the growing Oklahoma City population," said Tom Mullin, president of Select Medical. "We are alread ...

Core Viewpoint - Select Medical Holdings Corporation (SEM) experienced a 16.9% decline in stock price following the release of its second-quarter 2024 results, despite beating earnings estimates due to improved patient days in certain units. Concerns arose regarding elevated expenses and declining visits in the Concentra unit [1] Financial Performance - SEM reported adjusted earnings per share (EPS) of 60 cents, exceeding the Zacks Consensus Estimate by 1.7%, although this represented a 1.6% decline year over year [2] - Net operating revenues reached $1.8 billion, reflecting a 5.1% year-over-year increase and surpassing the consensus mark by 1.6% [2] - Total costs and expenses rose 5.7% year over year to $1.6 billion, exceeding estimates due to increased service costs and rising administrative expenses [3] - Adjusted EBITDA was $226.3 million, a 3.1% year-over-year increase, outperforming the Zacks Consensus Estimate of $222 million [3] Segmental Update - **Critical Illness Recovery Hospital**: Revenues were $604.9 million, a 5.2% year-over-year increase, but fell short of the consensus estimate. Revenue per patient day increased by 4%, while patient days improved by 1% [4] - **Rehabilitation Hospital**: Revenues grew 11.2% year over year to $267.8 million, exceeding the consensus mark. Adjusted EBITDA rose 13.3% year over year to $62 million [6] - **Outpatient Rehabilitation**: Revenues reached $315.5 million, a 4.1% year-over-year increase, driven by a 3.9% rise in patient visits. Adjusted EBITDA declined 12.4% year over year to $28.8 million [7] - **Concentra**: Revenues were $477.9 million, a 2.3% year-over-year increase, benefiting from a 4.5% growth in revenue per visit despite a 1.6% decline in visits [8] Financial Position - As of June 30, 2024, SEM had cash and cash equivalents of $111.2 million, up from $84 million at the end of 2023. Total assets increased to $7.9 billion from $7.7 billion [10] - Long-term debt was $3.6 billion, slightly up from the end of 2023, while total equity rose to $1.7 billion from $1.5 billion [10] Cash Flow and Shareholder Returns - Cash flow from operations was $278.2 million, an 18.4% year-over-year increase [11] - No share repurchases occurred in Q2 2024 under the $1 billion program, which is set to expire on December 31, 2025. A cash dividend of 12.5 cents per share was approved for payment on August 30, 2024 [12] IPO and Future Outlook - The Concentra unit completed its IPO on July 26, 2024, pricing 22.5 million shares at $23.50 each. SEM retains 82% of Concentra's shares and plans to distribute its remaining interest within 12 months [13] - Management reaffirmed revenue guidance for 2024 between $6.9 billion and $7.1 billion, suggesting a 4.5% growth from 2023. Adjusted EBITDA is expected between $845 million and $885 million, indicating a 7.1% rise from 2023 [14][15]

Select Medical (SEM) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.69%. A quarter ago, it was expected that this hospital and rehabilitation center operator would post earnings of $0.55 per share when it actually produced earnings of $0.77, delivering a surprise of 40%. Over the ...

MECHANICSBURG, Pa., Aug. 1, 2024 /PRNewswire/ -- Select Medical Holdings Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM) today announced results for its second quarter ended June 30, 2024, and the declaration of a cash dividend. For the second quarter ended June 30, 2024, revenue increased 5.1% to $1,759.7 million, compared to $1,674.5 million for the same quarter, prior year. Income from operations was $157.8 million for the second quarter ended June 30, 2024, compared to $159.2 million fo ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. We should also highlight that SEM has a P/B ratio of 3.12. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. SEM's current P/B looks attractive when compar ...