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Select Medical Q4 Earnings Miss Estimates, Stock Down 7.2%
SEMSelect Medical(SEM) ZACKS·2025-02-24 18:11

Core Insights - Select Medical Holdings Corporation (SEM) experienced a 7.2% decline in stock price following the release of its fourth-quarter 2024 results, primarily due to reduced occupancy rates and lower admissions in key segments, alongside increased costs [1] Financial Performance - SEM reported adjusted earnings per share (EPS) of 18 cents, missing the Zacks Consensus Estimate by 5.3%, but showing a 50% increase year over year [2] - Net operating revenues reached 1.31billion,reflectinga7.81.31 billion, reflecting a 7.8% year-over-year growth and surpassing the consensus estimate by 1.2% [2] - Total costs and expenses rose 12% year over year to 1.29 billion, lower than the estimated 1.62billion,drivenbyincreasedservicecostsandadministrativeexpenses[3]−AdjustedEBITDAwas1.62 billion, driven by increased service costs and administrative expenses [3] - Adjusted EBITDA was 116 million, a 3.8% increase year over year, but fell short of the estimate of 187million[3]SegmentPerformance−∗∗CriticalIllnessRecoveryHospital∗∗:Revenueswere187 million [3] Segment Performance - **Critical Illness Recovery Hospital**: Revenues were 600.4 million, up 5.9% year over year, but below the consensus estimate of 612.5million.Revenueperpatientdayincreasedby7.2612.5 million. Revenue per patient day increased by 7.2%, while patient days and admissions declined by 1.2% and 4.8%, respectively [4] - Adjusted EBITDA for this segment was 63.1 million, a 10% year-over-year increase, but missed the consensus estimate of 64.7million[5]−∗∗RehabilitationHospital∗∗:Revenuesgrew13.164.7 million [5] - **Rehabilitation Hospital**: Revenues grew 13.1% year over year to 294.4 million, exceeding the consensus mark of 286million.Admissionsandpatientdaysincreasedby4.4286 million. Admissions and patient days increased by 4.4% and 3.3%, respectively [6] - Adjusted EBITDA declined 6.1% year over year to 62.3 million, although it surpassed the Zacks Consensus Estimate of 51.8million[6]−∗∗OutpatientRehabilitation∗∗:Revenuesreached51.8 million [6] - **Outpatient Rehabilitation**: Revenues reached 319.6 million, a 7.2% year-over-year increase, beating the consensus estimate of 308.4million.Patientvisitsroseby5.2308.4 million. Patient visits rose by 5.2% [7] - Adjusted EBITDA improved 18.2% year over year to 26.6 million, exceeding estimates [7] Financial Position - As of December 31, 2024, SEM had cash and cash equivalents of 59.7million,upfrom59.7 million, up from 52.6 million at the end of 2023. Total assets decreased to 5.6billionfrom5.6 billion from 7.7 billion [9] - Long-term debt was 1.7billion,downfromthepreviousyear,whiletotalequityincreasedto1.7 billion, down from the previous year, while total equity increased to 2 billion from 1.5billion[9]CashFlowandFull−YearHighlights−Cashflowfromoperationswas1.5 billion [9] Cash Flow and Full-Year Highlights - Cash flow from operations was 125.4 million, a decline of 30.1% year over year [10] - For the full year 2024, EPS was 94 cents compared to 54 cents in 2023, with total revenue rising to 5.2billionfrom5.2 billion from 4.8 billion [11] Future Outlook - Management projects revenues for 2025 to be between 5.4billionand5.4 billion and 5.6 billion, indicating a potential growth of 5.8% from 2024 [13] - Expected adjusted EBITDA for 2025 is between 520millionand520 million and 540 million, suggesting a 3.8% increase from 2024 [13] - EPS is anticipated to range from 1.09to1.09 to 1.19 [13]