Select Medical(SEM) - 2024 Q4 - Annual Results

Revenue Performance - For Q4 2024, revenue increased by 7.8% to $1,312.6 million compared to $1,218.1 million in Q4 2023[3] - For the year ended December 31, 2024, revenue increased by 7.5% to $5,187.1 million compared to $4,826.0 million in 2023[5] - Revenue for Q4 2024 increased to $1,312,564, representing a 7.8% growth compared to Q4 2023's $1,218,116[30] - Revenue for Critical Illness Recovery Hospitals increased by 5.9% from $567.1 million in 2023 to $600.4 million in 2024[46] - Revenue for Critical Illness Recovery Hospital increased by 6.3% from $2,299,773,000 in 2023 to $2,444,196,000 in 2024[49] - Revenue for Rehabilitation Hospital grew by 13.4% from $979,585,000 in 2023 to $1,110,592,000 in 2024[49] - Total revenue for Outpatient Rehabilitation was $1,188,914,000 in 2023, increasing to $1,250,294,000 in 2024, a growth of 5.2%[49] Income and Earnings - Income from continuing operations, net of tax, was a loss of $10.5 million in Q4 2024, compared to income of $30.3 million in Q4 2023[3] - Net income attributable to Select Medical decreased significantly to $(16,050) in Q4 2024, down from $46,269 in Q4 2023, marking a 93.9% decline[30] - Net income attributable to Select Medical for the year 2024 was $214,038, down 12.1% from $243,491 in 2023[33] - Basic earnings per share from continuing operations for Q4 2024 was $(0.18), compared to $0.12 in Q4 2023[30] - The company experienced a 67.5% decline in income from continuing operations before other income and expense, dropping to $21,091 in Q4 2024 from $64,937 in Q4 2023[30] - Adjusted income from continuing operations, net of tax, attributable to common shares increased from $66,919,000 in 2023 to $117,311,000 in 2024[57] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 increased by 3.8% to $116.0 million, up from $111.8 million in Q4 2023[3] - Adjusted EBITDA for the year ended December 31, 2024 increased by 14.4% to $510.4 million, compared to $446.1 million in 2023[5] - Adjusted EBITDA for Outpatient Rehabilitation grew by 18.2%, from $22.5 million in 2023 to $26.6 million in 2024[46] - Adjusted EBITDA for Critical Illness Recovery Hospital rose by 22.6% from $246,015,000 in 2023 to $301,634,000 in 2024[49] - Adjusted EBITDA for Rehabilitation Hospital increased by 10.8% from $221,875,000 in 2023 to $245,748,000 in 2024[49] - Adjusted EBITDA for Outpatient Rehabilitation decreased by 2.9% from $111,868,000 in 2023 to $108,577,000 in 2024[49] - The company expects Adjusted EBITDA for 2025 to range between $520,000,000 and $540,000,000[60] Costs and Expenses - Total costs and expenses for Q4 2024 rose to $1,291,579, a 12.0% increase from $1,153,637 in Q4 2023[30] - General and administrative expenses surged by 32.7% to $225,869 in 2024 from $170,193 in 2023[33] Future Outlook - Select Medical expects 2025 revenue to be in the range of $5.4 billion to $5.6 billion[21] - Income from continuing operations, net of tax, is projected to be between $142,000,000 and $155,000,000 for 2025[60] Cash and Assets - Total current assets decreased from $1.26 billion in 2023 to $1.02 billion in 2024, a decline of approximately 19%[41] - Cash and cash equivalents at the end of the period dropped from $84.0 million in 2023 to $59.7 million in 2024, representing a decrease of 29%[43] - The company reported a net cash provided by operating activities of $582.1 million in 2023, which decreased to $517.9 million in 2024, a decline of 11%[45] Debt and Liabilities - Total liabilities decreased significantly from $6.12 billion in 2023 to $3.61 billion in 2024, a reduction of approximately 41%[41] - The company’s long-term debt, net of current portion, decreased from $3.58 billion in 2023 to $1.69 billion in 2024, a reduction of approximately 53%[41] Operational Metrics - The number of hospitals operated in the Critical Illness Recovery segment decreased from 107 in 2023 to 104 in 2024, a reduction of 2.8%[46] - The number of admissions in Critical Illness Recovery Hospitals fell by 4.8%, from 9,126 in 2023 to 8,691 in 2024[46] - The number of hospitals operated in Critical Illness Recovery increased from 107 in 2023 to 104 in 2024, while Rehabilitation Hospitals increased from 33 to 35[49] Risks and Challenges - The company highlighted potential risks including government reimbursement changes and shortages of qualified healthcare professionals impacting future profitability[27]