MECHANICSBURG, Pa.,
Feb. 24, 2022 /PRNewswire/ -- Select Medical Holdings
Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM)
today announced results for its fourth quarter and year ended
December 31, 2021 and the declaration of a cash dividend.
For the fourth quarter ended December 31, 2021, revenue
increased 6.8% to $1,559.8 million,
compared to $1,460.5 million for the
same quarter, prior year. Income from operations was $77.5 million for the fourth quarter ended
December 31, 2021, compared to
$163.3 million for the same quarter,
prior year. Income from operations included $8.0 million and $36.2
million of other operating income related to the recognition
of payments received under the Provider Relief Fund for the fourth
quarters ended December 31, 2021 and
2020, respectively. Refer to "CARES Act Provider Relief
Fund" for further discussion. Net income was $66.3 million for the fourth quarter ended
December 31, 2021, compared to
$102.2 million for the same quarter,
prior year. For the fourth quarter ended December 31, 2021, net income included a pre-tax
gain on sale of businesses of $2.2
million. For the fourth quarter ended December 31,
2020, net income included a pre-tax loss on sale of businesses of
$0.3 million. Adjusted EBITDA was
$138.4 million for the fourth quarter
ended December 31, 2021, compared to
$221.3 million for the same quarter,
prior year. Earnings per common share was $0.37 for the fourth quarter ended December 31, 2021, compared to $0.57 for the same quarter, prior year. The
definition of Adjusted EBITDA and a reconciliation of net income to
Adjusted EBITDA are presented in table IX of this release. A
reconciliation of earnings per common share to adjusted earnings
per common share is presented in table X of this release.
For the year ended December 31, 2021, revenue increased
12.2% to $6,204.5 million, compared
to $5,531.7 million for the prior
year. Income from operations increased 25.7% to $713.8 million for the year ended
December 31, 2021, compared to $567.7
million for the prior year. Income from operations included
$123.8 million and $90.0 million of other operating income related
to the recognition of payments received under the Provider Relief
Fund for the years ended December 31,
2021 and 2020, respectively. Refer to "CARES Act Provider
Relief Fund" for further discussion. Net income increased 45.1%
to $499.9 million for the year ended
December 31, 2021, compared to $344.6
million for the prior year. For the years ended December 31, 2021 and 2020, net income included
pre-tax gains on sales of businesses of $2.2
million and $12.4 million,
respectively. Adjusted EBITDA increased 18.3% to $947.4 million for the year ended
December 31, 2021, compared to $800.6
million for the prior year. Earnings per common share
increased to $2.98 for the year ended
December 31, 2021, compared to $1.93 for the prior year. Adjusted earnings per
common share was $2.98 for the year
ended December 31, 2021, compared to
$1.89 for the prior year. Adjusted
earnings per common share excluded the gains on sales of businesses
and their related tax effects for both the years ended December 31, 2021 and 2020. The definition of
Adjusted EBITDA and a reconciliation of net income to Adjusted
EBITDA are presented in table IX of this release. A reconciliation
of earnings per common share to adjusted earnings per common share
is presented in table X of this release.
Please refer to "Effects of the COVID-19 Pandemic on Select
Medical's Results of Operations" below for further discussion
regarding the impact of the coronavirus disease 2019 ("COVID-19")
pandemic on Select Medical's operating results.
Company Overview
Select Medical 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 number
of facilities. Select Medical's reportable segments include the
critical illness recovery hospital segment, the rehabilitation
hospital segment, the outpatient rehabilitation segment, and the
Concentra segment. As of December 31,
2021, Select Medical operated 104 critical illness recovery
hospitals in 28 states, 30 rehabilitation hospitals in 12 states,
and 1,881 outpatient rehabilitation clinics in 38 states and the
District of Columbia. Concentra
operated 518 occupational health centers in 41 states. At
December 31, 2021, Select Medical had
operations in 46 states and the District
of Columbia. Information about Select Medical is available
at www.selectmedical.com.
CARES Act Provider Relief Fund
On March 27, 2020, the Coronavirus
Aid, Relief, and Economic Security Act ("CARES Act") was enacted.
The CARES Act provided additional waivers, reimbursement, grants
and other funds to assist health care providers during the COVID-19
pandemic, including appropriations for the Public Health and Social
Services Emergency Fund, also referred to as the Provider Relief
Fund, to be used for preventing, preparing, and responding to
COVID-19, and for reimbursing eligible health care providers for
health care related expenses and lost revenues that are
attributable to COVID-19.
For the three months and year ended December 31, 2021, Select Medical recognized
$8.0 million and $123.8 million of payments received under the
Provider Relief Fund as other operating income, respectively. For
the three months and year ended December 31,
2020, Select Medical recognized $36.2
million and $90.0 million of
payments received under the Provider Relief Fund as other operating
income, respectively.
Critical Illness Recovery Hospital Segment
For the fourth quarter ended December 31,
2021, revenue for the critical illness recovery hospital
segment increased 7.3% to $577.2
million, compared to $537.9
million for the same quarter, prior year. Adjusted EBITDA
for the critical illness recovery hospital segment was $24.6 million for the fourth quarter ended
December 31, 2021, compared to
$75.3 million for the same quarter,
prior year. For the fourth quarter ended December 31, 2021, Adjusted EBITDA included
$2.0 million of other operating
income related to the outcome of litigation with the Centers for
Medicare & Medicaid Services. The Adjusted EBITDA margin for
the critical illness recovery hospital segment was 4.3% for the
fourth quarter ended December 31,
2021, compared to 14.0% for the same quarter, prior year.
Certain critical illness recovery hospital key statistics are
presented in table VII of this release for both the fourth quarters
ended December 31, 2021 and 2020.
For the year ended December 31,
2021, revenue for the critical illness recovery hospital
segment increased 8.1% to $2,246.8
million, compared to $2,077.5
million for the prior year. Adjusted EBITDA for the critical
illness recovery hospital segment was $268.0
million for the year ended December
31, 2021, compared to $342.4
million for the prior year. For the year ended December 31, 2021, Adjusted EBITDA included
$19.9 million of other operating
income related to the outcome of litigation with the Centers for
Medicare & Medicaid Services. The Adjusted EBITDA margin for
the critical illness recovery hospital segment was 11.9% for the
year ended December 31, 2021,
compared to 16.5% for the prior year. Certain critical illness
recovery hospital key statistics are presented in table VIII of
this release for both the years ended December 31, 2021 and 2020.
Rehabilitation Hospital Segment
For the fourth quarter ended December 31,
2021, revenue for the rehabilitation hospital segment
increased 10.5% to $216.4 million,
compared to $195.9 million for the
same quarter, prior year. Adjusted EBITDA for the rehabilitation
hospital segment was $39.3 million
for the fourth quarter ended December 31,
2021, compared to $42.4
million for the same quarter, prior year. The Adjusted
EBITDA margin for the rehabilitation hospital segment was 18.2% for
the fourth quarter ended December 31,
2021, compared to 21.6% for the same quarter, prior year.
Certain rehabilitation hospital key statistics are presented in
table VII of this release for both the fourth quarters ended
December 31, 2021 and 2020.
For the year ended December 31,
2021, revenue for the rehabilitation hospital segment
increased 15.6% to $849.3 million,
compared to $734.7 million for the
prior year. Adjusted EBITDA for the rehabilitation hospital segment
increased 20.6% to $184.7 million for
the year ended December 31, 2021,
compared to $153.2 million for the
prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 21.7% for the year ended December 31, 2021, compared to 20.9% for the
prior year. Certain rehabilitation hospital key statistics are
presented in table VIII of this release for both the years ended
December 31, 2021 and 2020.
Outpatient Rehabilitation Segment
For the fourth quarter ended December 31,
2021, revenue for the outpatient rehabilitation segment
increased 7.8% to $277.5 million,
compared to $257.5 million for the
same quarter, prior year. Adjusted EBITDA for the outpatient
rehabilitation segment was $27.6
million for the fourth quarter ended December 31, 2021, compared to $27.7 million for the same quarter, prior year.
The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 9.9% for the fourth quarter ended December 31, 2021, compared to 10.8% for the same
quarter, prior year. Certain outpatient rehabilitation key
statistics are presented in table VII of this release for both the
fourth quarters ended December 31,
2021 and 2020.
For the year ended December 31,
2021, revenue for the outpatient rehabilitation segment
increased 17.9% to $1,084.4 million,
compared to $919.9 million for the
prior year. Adjusted EBITDA for the outpatient rehabilitation
segment increased 74.7% to $138.3
million for the year ended December
31, 2021, compared to $79.2
million for the prior year. The Adjusted EBITDA margin for
the outpatient rehabilitation segment was 12.8% for the year ended
December 31, 2021, compared to 8.6%
for the prior year. Certain outpatient rehabilitation key
statistics are presented in table VIII of this release for both the
years ended December 31, 2021 and
2020.
Concentra Segment
For the fourth quarter ended December 31,
2021, revenue for the Concentra segment increased 3.0% to
$410.6 million, compared to
$398.7 million for the same quarter,
prior year. Adjusted EBITDA for the Concentra segment increased
1.9% to $70.7 million for the fourth
quarter ended December 31, 2021,
compared to $69.4 million for the
same quarter, prior year. Adjusted EBITDA included other operating
income of $0.9 million related to the
recognition of payments received under the Provider Relief Fund for
the fourth quarter ended December 31,
2021. The Adjusted EBITDA margin for the Concentra segment
was 17.2% for the fourth quarter ended December 31, 2021, compared to 17.4% for the same
quarter, prior year. Certain Concentra key statistics are presented
in table VII of this release for both the fourth quarters ended
December 31, 2021 and 2020.
For the year ended December 31,
2021, revenue for the Concentra segment increased 15.4% to
$1,732.0 million, compared to
$1,501.4 million for the prior year.
Adjusted EBITDA for the Concentra segment increased 54.1% to
$389.6 million for the year ended
December 31, 2021, compared to
$252.9 million for the prior year.
Adjusted EBITDA included other operating income of $34.7 million and $1.1
million related to the recognition of payments received
under the Provider Relief Fund for the years ended December 31, 2021 and 2020, respectively. The
Adjusted EBITDA margin for the Concentra segment was 22.5% for the
year ended December 31, 2021,
compared to 16.8% for the prior year. Certain Concentra key
statistics are presented in table VIII of this release for both the
years ended December 31, 2021 and
2020.
Effects of the COVID-19 Pandemic on Select Medical's Results of
Operations
Beginning in March 2020, state
governments placed significant restrictions on businesses and
mandated closures of non-essential or non-life sustaining
businesses, causing many employers to furlough their workforce and
temporarily cease or significantly reduce their operations. State
governments also implemented restrictions on travel and individual
activities outside of the home, closed schools, and mandated other
social distancing measures. At the same time, hospitals and other
facilities began suspending elective surgeries. In an effort to
ensure hospitals and health systems had the capacity to absorb and
effectively manage surges of COVID-19 patients, a number of waivers
and modifications of certain requirements under the Medicare,
Medicaid and Children's Health Insurance Program ("CHIP") programs
were authorized in March 2020,
including certain regulations under the Medicare program which
govern admissions into Select Medical's critical illness recovery
hospitals and rehabilitation hospitals. Specifically, Select
Medical's critical illness recovery hospitals which are certified
as long-term care hospitals ("LTCHs") became exempt from the
greater-than-25-day average length of stay requirement for all cost
reporting periods that include the COVID-19 public health emergency
period. Select Medical's rehabilitation hospitals which are
certified as inpatient rehabilitation facilities ("IRFs") could
exclude patients admitted solely to respond to the emergency from
the calculation of the "60 percent rule" thresholds to receive
payment as an IRF. The COVID-19 public health emergency period has
been extended and is currently in effect through April 16, 2022.
The adverse effects of the COVID-19 pandemic, along with the
actions of governmental authorities and those in the private sector
to limit the spread of COVID-19, caused disruptions in each of
Select Medical's segments; these disruptions were most significant
within the outpatient rehabilitation and Concentra segments. By
mid-March 2020, Select Medical's
outpatient rehabilitation clinics began experiencing significantly
less patient visit volume due to declines in patient referrals from
physicians, a reduction in workers' compensation injury visits
resulting from the temporary closure of businesses, and the
suspension of elective surgeries that normally increase the demand
for outpatient rehabilitation services. Select Medical's Concentra
centers experienced similar declines in patient visit volume due to
businesses furloughing their workforce and temporarily ceasing or
significantly reducing their operations. Since March 2021, Select Medical's outpatient
rehabilitation clinics and Concentra centers have experienced
patient visit volumes which approximate or exceed the levels
experienced in the months prior to the widespread emergence of
COVID-19 in the United States.
Although it had experienced temporary disruptions in its core
businesses as a result of the COVID-19 pandemic, Select Medical's
Concentra segment was able to expand its services to provide
COVID-19 screening and testing.
Select Medical's critical illness recovery hospitals have played
a critical role in caring for patients during the COVID-19
pandemic. The relaxation of certain admission restrictions
contributed to volume increases in certain of its hospitals during
the year ended December 31, 2020. The
revenue of Select Medical's critical illness recovery hospitals and
rehabilitation hospitals has also benefited from the temporary
suspension of the 2.0% cut to Medicare payments due to
sequestration, which began May 1,
2020 following the enactment of the CARES Act, and was
extended through March 31, 2022. From
April 1, 2022 through June 30, 2022, the sequestration cut will be 1.0%
and the full 2.0% sequestration cut will resume July 1, 2022. Certain of Select Medical's
rehabilitation hospitals did experience temporary declines in
patient volume in areas more significantly impacted by the spread
of COVID-19 and as a result of the suspension of elective surgeries
at hospitals and other facilities, which consequently reduced the
demand for inpatient rehabilitation services. Additionally, some of
Select Medical's rehabilitation hospitals temporarily restricted
admissions as a result of the COVID-19 pandemic. The declines in
volume occurred principally in April and May
2020. Beginning at the onset of the COVID-19 pandemic, both
Select Medical's critical illness recovery hospitals and
rehabilitation hospitals modified certain of their protocols in
order to follow the guidelines and recommendations for patient
treatment and for the protection of their patients and staff
members. This has resulted in increased labor costs as well as
additional costs resulting from the purchase of personal protective
equipment. Further, labor shortages have become more pronounced as
a result of the COVID-19 pandemic. Select Medical has experienced
an increase in labor costs in its hospitals as a result of
constrained staffing due to a shortage of healthcare workers, an
increased dependence on contract clinical workers, the loss of
unvaccinated employees in jurisdictions requiring vaccination, and
federal unemployment subsidies, including unemployment benefits
offered in response to the COVID-19 pandemic. Increased turnover
rates within Select Medical's employee base have also lead to
increased overtime to meet demand and increased wage rates to
attract and retain employees.
The unpredictable effects of the COVID-19 pandemic, including
the duration and extent of disruption on Select Medical's
operations, creates uncertainties about Select Medical's future
operating results and financial condition. Select Medical has
provided revenue and certain operating statistics below for each of
its segments for each of the periods presented. Please refer to the
risk factors in Select Medical's Annual Report on Form 10-K for the
year ended December 31, 2021 for
further discussion.
|
|
Critical Illness
Recovery Hospital
|
|
|
Revenue
|
|
|
Patient
Days
|
|
|
Occupancy
Rate
|
|
|
Number of
Hospitals Owned(1)
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
|
|
$
149,799
|
|
$
163,238
|
|
$
199,611
|
|
|
86,238
|
|
90,783
|
|
100,933
|
|
|
69%
|
|
69%
|
|
75%
|
|
|
96
|
|
100
|
|
99
|
February
|
|
145,586
|
|
165,375
|
|
190,703
|
|
|
80,806
|
|
87,844
|
|
92,036
|
|
|
71%
|
|
72%
|
|
75%
|
|
|
96
|
|
100
|
|
99
|
March
|
|
162,149
|
|
171,908
|
|
204,558
|
|
|
91,085
|
|
91,831
|
|
100,149
|
|
|
73%
|
|
70%
|
|
74%
|
|
|
96
|
|
100
|
|
99
|
Three Months Ended
March 31
|
|
$
457,534
|
|
$
500,521
|
|
$
594,872
|
|
|
258,129
|
|
270,458
|
|
293,118
|
|
|
71%
|
|
70%
|
|
75%
|
|
|
96
|
|
100
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
|
|
$
156,231
|
|
$
171,445
|
|
$
185,934
|
|
|
88,357
|
|
90,710
|
|
91,506
|
|
|
70%
|
|
71%
|
|
70%
|
|
|
99
|
|
100
|
|
99
|
May
|
|
156,422
|
|
178,223
|
|
183,471
|
|
|
89,350
|
|
95,191
|
|
93,708
|
|
|
69%
|
|
72%
|
|
70%
|
|
|
99
|
|
100
|
|
99
|
June
|
|
148,490
|
|
169,958
|
|
174,654
|
|
|
85,153
|
|
90,988
|
|
87,767
|
|
|
68%
|
|
71%
|
|
68%
|
|
|
99
|
|
100
|
|
99
|
Three Months Ended June
30
|
|
$
461,143
|
|
$
519,626
|
|
$
544,059
|
|
|
262,860
|
|
276,889
|
|
272,981
|
|
|
69%
|
|
72%
|
|
69%
|
|
|
99
|
|
100
|
|
99
|
Six Months Ended June
30
|
|
$
918,677
|
|
$
1,020,147
|
|
$
1,138,931
|
|
|
520,989
|
|
547,347
|
|
566,099
|
|
|
70%
|
|
71%
|
|
72%
|
|
|
99
|
|
100
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July
|
|
$
151,416
|
|
$
175,253
|
|
$
171,483
|
|
|
87,143
|
|
94,144
|
|
88,119
|
|
|
67%
|
|
71%
|
|
65%
|
|
|
99
|
|
99
|
|
100
|
August
|
|
155,485
|
|
173,967
|
|
178,240
|
|
|
86,553
|
|
93,964
|
|
91,756
|
|
|
66%
|
|
71%
|
|
68%
|
|
|
99
|
|
99
|
|
100
|
September
|
|
155,991
|
|
170,234
|
|
180,923
|
|
|
84,393
|
|
90,955
|
|
92,579
|
|
|
67%
|
|
71%
|
|
71%
|
|
|
99
|
|
99
|
|
100
|
Three Months Ended
September 30
|
|
$
462,892
|
|
$
519,454
|
|
$
530,646
|
|
|
258,089
|
|
279,063
|
|
272,454
|
|
|
67%
|
|
71%
|
|
68%
|
|
|
99
|
|
99
|
|
100
|
Nine Months Ended
September 30
|
|
$
1,381,569
|
|
$
1,539,601
|
|
$
1,669,577
|
|
|
779,078
|
|
826,410
|
|
838,553
|
|
|
69%
|
|
71%
|
|
70%
|
|
|
99
|
|
99
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
|
|
$
152,791
|
|
$
181,251
|
|
$
195,444
|
|
|
87,188
|
|
95,616
|
|
99,935
|
|
|
66%
|
|
71%
|
|
71%
|
|
|
100
|
|
100
|
|
104
|
November
|
|
150,399
|
|
174,133
|
|
191,134
|
|
|
84,540
|
|
92,651
|
|
96,102
|
|
|
67%
|
|
71%
|
|
71%
|
|
|
100
|
|
99
|
|
104
|
December
|
|
151,759
|
|
182,514
|
|
190,617
|
|
|
87,555
|
|
97,079
|
|
98,449
|
|
|
67%
|
|
72%
|
|
70%
|
|
|
100
|
|
99
|
|
104
|
Three Months Ended
December 31
|
|
$
454,949
|
|
$
537,898
|
|
$
577,195
|
|
|
259,283
|
|
285,346
|
|
294,486
|
|
|
67%
|
|
71%
|
|
71%
|
|
|
100
|
|
99
|
|
104
|
Twelve Months Ended
December 31
|
|
$
1,836,518
|
|
$
2,077,499
|
|
$
2,246,772
|
|
|
1,038,361
|
|
1,111,756
|
|
1,133,039
|
|
|
68%
|
|
71%
|
|
71%
|
|
|
100
|
|
99
|
|
104
|
|
|
Rehabilitation
Hospital
|
|
|
Revenue
|
|
|
Patient
Days
|
|
|
Occupancy
Rate
|
|
|
Number of
Hospitals Owned(1)
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
|
|
$
50,615
|
|
$
61,673
|
|
$
68,297
|
|
|
27,434
|
|
32,111
|
|
34,404
|
|
|
74%
|
|
79%
|
|
82%
|
|
|
17
|
|
19
|
|
20
|
February
|
|
48,080
|
|
60,690
|
|
64,202
|
|
|
25,442
|
|
31,813
|
|
32,178
|
|
|
76%
|
|
84%
|
|
84%
|
|
|
17
|
|
19
|
|
20
|
March
|
|
55,863
|
|
59,656
|
|
75,305
|
|
|
29,940
|
|
30,644
|
|
35,857
|
|
|
78%
|
|
76%
|
|
85%
|
|
|
18
|
|
19
|
|
20
|
Three Months Ended
March 31
|
|
$
154,558
|
|
$
182,019
|
|
$
207,804
|
|
|
82,816
|
|
94,568
|
|
102,439
|
|
|
76%
|
|
79%
|
|
84%
|
|
|
18
|
|
19
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
|
|
$
51,991
|
|
$
45,878
|
|
$
70,295
|
|
|
28,266
|
|
23,553
|
|
34,861
|
|
|
76%
|
|
61%
|
|
85%
|
|
|
18
|
|
19
|
|
20
|
May
|
|
56,019
|
|
57,815
|
|
71,190
|
|
|
29,730
|
|
29,787
|
|
35,604
|
|
|
75%
|
|
73%
|
|
84%
|
|
|
19
|
|
19
|
|
20
|
June
|
|
52,364
|
|
64,974
|
|
71,181
|
|
|
28,529
|
|
30,741
|
|
34,483
|
|
|
73%
|
|
78%
|
|
84%
|
|
|
19
|
|
19
|
|
20
|
Three Months Ended June
30
|
|
$
160,374
|
|
$
168,667
|
|
$
212,666
|
|
|
86,525
|
|
84,081
|
|
104,948
|
|
|
75%
|
|
71%
|
|
85%
|
|
|
19
|
|
19
|
|
20
|
Six Months Ended June
30
|
|
$
314,932
|
|
$
350,686
|
|
$
420,470
|
|
|
169,341
|
|
178,649
|
|
207,387
|
|
|
76%
|
|
75%
|
|
84%
|
|
|
19
|
|
19
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July
|
|
$
57,077
|
|
$
62,312
|
|
$
70,467
|
|
|
30,054
|
|
31,986
|
|
34,894
|
|
|
75%
|
|
81%
|
|
83%
|
|
|
19
|
|
18
|
|
20
|
August
|
|
58,072
|
|
63,673
|
|
71,682
|
|
|
30,228
|
|
32,518
|
|
34,835
|
|
|
75%
|
|
83%
|
|
83%
|
|
|
19
|
|
18
|
|
20
|
September
|
|
58,220
|
|
62,090
|
|
70,285
|
|
|
29,172
|
|
31,176
|
|
33,224
|
|
|
75%
|
|
82%
|
|
81%
|
|
|
19
|
|
18
|
|
20
|
Three Months Ended
September 30
|
|
$
173,369
|
|
$
188,075
|
|
$
212,434
|
|
|
89,454
|
|
95,680
|
|
102,953
|
|
|
75%
|
|
82%
|
|
82%
|
|
|
19
|
|
18
|
|
20
|
Nine Months Ended
September 30
|
|
$
488,301
|
|
$
538,761
|
|
$
632,904
|
|
|
258,795
|
|
274,329
|
|
310,340
|
|
|
75%
|
|
77%
|
|
84%
|
|
|
19
|
|
18
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
|
|
$
61,975
|
|
$
66,591
|
|
$
72,509
|
|
|
31,767
|
|
33,378
|
|
35,908
|
|
|
78%
|
|
82%
|
|
85%
|
|
|
19
|
|
19
|
|
20
|
November
|
|
60,353
|
|
64,610
|
|
71,865
|
|
|
31,022
|
|
31,581
|
|
34,491
|
|
|
79%
|
|
80%
|
|
84%
|
|
|
19
|
|
19
|
|
20
|
December
|
|
60,342
|
|
64,711
|
|
72,062
|
|
|
31,447
|
|
31,545
|
|
33,962
|
|
|
78%
|
|
78%
|
|
80%
|
|
|
19
|
|
19
|
|
20
|
Three Months Ended
December 31
|
|
$
182,670
|
|
$
195,912
|
|
$
216,436
|
|
|
94,236
|
|
96,504
|
|
104,361
|
|
|
78%
|
|
80%
|
|
83%
|
|
|
19
|
|
19
|
|
20
|
Twelve Months Ended
December 31
|
|
$
670,971
|
|
$
734,673
|
|
$
849,340
|
|
|
353,031
|
|
370,833
|
|
414,701
|
|
|
76%
|
|
78%
|
|
83%
|
|
|
19
|
|
19
|
|
20
|
|
|
Outpatient
Rehabilitation
|
|
|
Revenue
|
|
|
Visits
|
|
|
Working
Days(2)
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
|
|
$
83,185
|
|
$
90,924
|
|
$
76,763
|
|
|
687,007
|
|
757,171
|
|
625,964
|
|
|
22
|
|
22
|
|
20
|
February
|
|
78,573
|
|
88,239
|
|
77,063
|
|
|
658,610
|
|
739,061
|
|
641,942
|
|
|
20
|
|
20
|
|
20
|
March
|
|
85,147
|
|
76,086
|
|
98,135
|
|
|
708,866
|
|
626,433
|
|
832,248
|
|
|
21
|
|
22
|
|
23
|
Three Months Ended
March 31
|
|
$
246,905
|
|
$
255,249
|
|
$
251,961
|
|
|
2,054,483
|
|
2,122,665
|
|
2,100,154
|
|
|
63
|
|
64
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
|
|
$
90,230
|
|
$
49,084
|
|
$
95,251
|
|
|
762,914
|
|
386,108
|
|
810,314
|
|
|
22
|
|
22
|
|
22
|
May
|
|
90,272
|
|
51,186
|
|
89,030
|
|
|
759,829
|
|
409,703
|
|
758,773
|
|
|
22
|
|
20
|
|
20
|
June
|
|
81,389
|
|
66,868
|
|
96,128
|
|
|
680,762
|
|
546,456
|
|
835,774
|
|
|
20
|
|
22
|
|
22
|
Three Months Ended June
30
|
|
$
261,891
|
|
$
167,138
|
|
$
280,409
|
|
|
2,203,505
|
|
1,342,267
|
|
2,404,861
|
|
|
64
|
|
64
|
|
64
|
Six Months Ended June
30
|
|
$
508,796
|
|
$
422,387
|
|
$
532,370
|
|
|
4,257,988
|
|
3,464,932
|
|
4,505,015
|
|
|
127
|
|
128
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July
|
|
$
89,267
|
|
$
77,793
|
|
$
90,352
|
|
|
754,102
|
|
636,826
|
|
780,118
|
|
|
22
|
|
22
|
|
21
|
August
|
|
90,687
|
|
79,034
|
|
93,056
|
|
|
743,813
|
|
651,738
|
|
798,459
|
|
|
22
|
|
21
|
|
22
|
September
|
|
85,376
|
|
83,215
|
|
91,132
|
|
|
706,413
|
|
694,808
|
|
768,493
|
|
|
20
|
|
21
|
|
21
|
Three Months Ended
September 30
|
|
$
265,330
|
|
$
240,042
|
|
$
274,540
|
|
|
2,204,328
|
|
1,983,372
|
|
2,347,070
|
|
|
64
|
|
64
|
|
64
|
Nine Months Ended
September 30
|
|
$
774,126
|
|
$
662,429
|
|
$
806,910
|
|
|
6,462,316
|
|
5,448,304
|
|
6,852,085
|
|
|
191
|
|
192
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
|
|
$
96,868
|
|
$
88,274
|
|
$
91,705
|
|
|
808,649
|
|
745,562
|
|
772,068
|
|
|
23
|
|
22
|
|
21
|
November
|
|
87,072
|
|
82,102
|
|
93,345
|
|
|
722,607
|
|
685,885
|
|
797,756
|
|
|
20
|
|
20
|
|
21
|
December
|
|
87,945
|
|
87,108
|
|
92,401
|
|
|
725,710
|
|
713,593
|
|
771,715
|
|
|
21
|
|
22
|
|
21
|
Three Months Ended
December 31
|
|
$
271,885
|
|
$
257,484
|
|
$
277,451
|
|
|
2,256,966
|
|
2,145,040
|
|
2,341,539
|
|
|
64
|
|
64
|
|
63
|
Twelve Months Ended
December 31
|
|
$
1,046,011
|
|
$
919,913
|
|
$
1,084,361
|
|
|
8,719,282
|
|
7,593,344
|
|
9,193,624
|
|
|
255
|
|
256
|
|
254
|
|
|
Concentra
|
|
|
Revenue
|
|
|
Visits
|
|
|
Working
Days(2)
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
2019
|
|
2020
|
|
2021
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
|
|
$
133,507
|
|
$
141,236
|
|
$
127,103
|
|
|
985,598
|
|
1,032,069
|
|
867,793
|
|
|
22
|
|
22
|
|
20
|
February
|
|
126,309
|
|
133,690
|
|
132,349
|
|
|
919,065
|
|
965,741
|
|
869,910
|
|
|
20
|
|
20
|
|
20
|
March
|
|
136,505
|
|
123,609
|
|
163,388
|
|
|
1,006,944
|
|
879,585
|
|
1,057,871
|
|
|
21
|
|
22
|
|
23
|
Three Months Ended
March 31
|
|
$
396,321
|
|
$
398,535
|
|
$
422,840
|
|
|
2,911,607
|
|
2,877,395
|
|
2,795,574
|
|
|
63
|
|
64
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
|
|
$
140,050
|
|
$
91,178
|
|
$
152,143
|
|
|
1,040,543
|
|
610,555
|
|
999,622
|
|
|
22
|
|
22
|
|
22
|
May
|
|
143,183
|
|
99,228
|
|
142,228
|
|
|
1,073,763
|
|
674,629
|
|
956,250
|
|
|
22
|
|
20
|
|
20
|
June
|
|
130,218
|
|
121,932
|
|
162,001
|
|
|
988,783
|
|
865,896
|
|
1,074,206
|
|
|
20
|
|
22
|
|
22
|
Three Months Ended June
30
|
|
$
413,451
|
|
$
312,338
|
|
$
456,372
|
|
|
3,103,089
|
|
2,151,080
|
|
3,030,078
|
|
|
64
|
|
64
|
|
64
|
Six Months Ended June
30
|
|
$
809,772
|
|
$
710,873
|
|
$
879,212
|
|
|
6,014,696
|
|
5,028,475
|
|
5,825,652
|
|
|
127
|
|
128
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July
|
|
$
142,385
|
|
$
132,465
|
|
$
146,509
|
|
|
1,057,809
|
|
930,427
|
|
1,033,266
|
|
|
22
|
|
22
|
|
21
|
August
|
|
144,452
|
|
130,291
|
|
150,333
|
|
|
1,087,165
|
|
933,555
|
|
1,106,356
|
|
|
22
|
|
21
|
|
22
|
September
|
|
135,063
|
|
129,103
|
|
145,348
|
|
|
1,005,929
|
|
963,065
|
|
1,084,009
|
|
|
20
|
|
21
|
|
21
|
Three Months Ended
September 30
|
|
$
421,900
|
|
$
391,859
|
|
$
442,190
|
|
|
3,150,903
|
|
2,827,047
|
|
3,223,631
|
|
|
64
|
|
64
|
|
64
|
Nine Months Ended
September 30
|
|
$
1,231,672
|
|
$
1,102,732
|
|
$
1,321,402
|
|
|
9,165,599
|
|
7,855,522
|
|
9,049,283
|
|
|
191
|
|
192
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
|
|
$
149,260
|
|
$
139,365
|
|
$
143,609
|
|
|
1,113,408
|
|
1,011,816
|
|
1,072,531
|
|
|
23
|
|
22
|
|
21
|
November
|
|
123,152
|
|
126,431
|
|
135,417
|
|
|
908,159
|
|
867,918
|
|
991,937
|
|
|
19
|
|
19
|
|
21
|
December
|
|
124,733
|
|
132,906
|
|
131,613
|
|
|
881,699
|
|
892,648
|
|
938,973
|
|
|
21
|
|
22
|
|
21
|
Three Months Ended
December 31
|
|
$
397,145
|
|
$
398,702
|
|
$
410,639
|
|
|
2,903,266
|
|
2,772,382
|
|
3,003,441
|
|
|
63
|
|
63
|
|
63
|
Twelve Months Ended
December 31
|
|
$
1,628,817
|
|
$
1,501,434
|
|
$
1,732,041
|
|
|
12,068,865
|
|
10,627,904
|
|
12,052,724
|
|
|
254
|
|
255
|
|
254
|
_______________________________________________________________________________
|
(1)
|
Represents the number
of hospitals owned at the end of each period presented.
|
(2)
|
Represents the number
of days in which normal business operations were conducted during
the periods presented.
|
Purchase of Concentra Interest
On December 24, 2021, Select
Medical, Welsh, Carson, Anderson & Stowe XII, L.P. ("WCAS"),
and Dignity Health Holding Corporation ("DHHC") entered into an
agreement pursuant to which Select Medical acquired substantially
all of the outstanding membership interests of Concentra Group
Holdings Parent that it did not already own from WCAS, DHHC, and
the other equity holders of Concentra Group Holdings Parent for
approximately $660.7 million.
This purchase was in lieu of, and deemed to be, the exercise of
the third put right provided to certain equity holders under the
terms of the Amended and Restated Limited Liability Company
Agreement of Concentra Group Holdings Parent, LLC, dated as of
February 1, 2018. Following this
purchase, Select Medical owns approximately 99.3% of the
outstanding membership interests of Concentra Group Holdings
Parent, LLC on a fully diluted basis and 100.0% of the outstanding
voting membership interests of Concentra Group Holdings Parent,
LLC.
Dividend
On February 17, 2022, Select Medical's board of directors
declared a cash dividend of $0.125
per share. The dividend will be payable on or about March 16,
2022 to stockholders of record as of the close of business on
March 4, 2022.
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, 2023, 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 fourth quarter ended December
31, 2021, Select Medical repurchased 387,212 shares at a
cost of approximately $11.1 million,
or $28.65 per share, which includes
transaction costs. During the year ended December 31, 2021,
Select Medical repurchased 1,770,720 shares at a cost of
approximately $58.6 million, or
$33.09 per share, which includes
transaction costs. Since the inception of the program through
December 31, 2021, Select Medical has repurchased 40,351,628
shares at a cost of approximately $415.2
million, or $10.29 per share,
which includes transaction costs.
Business Outlook for Revenue
Given the uncertainties due to significantly increased labor
costs resulting from higher than expected use of agency clinical
staff, Select Medical is issuing its business outlook at this time
for revenue only for 2022. Select Medical expects revenue to be in
the range of $6.25 billion to
$6.40 billion for the full year of
2022. Select Medical is also reaffirming its previously issued
three-year compound annual growth rate target for revenue only,
which is expected to be in the range of 4% to 6% for 2021 through
2023. Select Medical intends to readdress its business outlook and
target compound annual growth rates for Adjusted EBITDA and
earnings per common share when the labor climate stabilizes.
Conference Call
Select Medical will host a conference call regarding its results
for the fourth quarter and full year ended December 31, 2021,
as well as its business outlook and the impact of the COVID-19
pandemic on each of its reporting segments, on Friday, February 25, 2022, at 9:00am ET. The domestic dial in number for the
call is 1-866-440-2669. The international dial in number is
1-409-220-9844. The conference ID for the call is 7334656. The
conference call will be webcast simultaneously and can be accessed
at Select Medical Holdings Corporation's website
www.selectmedicalholdings.com.
For those unable to participate in the conference call, a replay
will be available until 12:00pm ET,
March 4, 2022. The replay number is
1-855-859-2056 (domestic) or 1-404-537-3406 (international). The
conference ID for the replay will be 7334656. The replay can also
be accessed at Select Medical Holdings Corporation's website,
www.selectmedicalholdings.com.
* * *
* *
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 2022 and long-term
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:
- developments related to the COVID-19 pandemic including, but
not limited to, the duration and severity of the pandemic,
additional measures taken by government authorities and the private
sector to limit the spread of COVID-19, and further legislative and
regulatory actions which impact healthcare providers, including
actions that may impact the Medicare program;
- 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;
- 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;
- shortages in qualified nurses, therapists, physicians, or other
licensed providers, or the inability to attract or retain
healthcare professionals due to the heightened risk of infection
related to the COVID-19 pandemic, could increase our operating
costs significantly or limit our ability to staff our
facilities;
- 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 annual
report on Form 10-K for the year ended December 31, 2021.
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
ir@selectmedical.com
I. Condensed
Consolidated Statements of Operations For the Three
Months Ended December 31, 2020 and 2021 (In thousands,
except per share amounts, unaudited)
|
|
|
|
2020
|
|
2021
|
|
%
Change
|
Revenue
|
|
$
1,460,494
|
|
$
1,559,811
|
|
6.8 %
|
Costs and
expenses:
|
|
|
|
|
|
|
Cost of services,
exclusive of depreciation and amortization
|
|
1,246,594
|
|
1,402,570
|
|
12.5
|
General and
administrative
|
|
35,229
|
|
37,950
|
|
7.7
|
Depreciation and
amortization
|
|
51,526
|
|
51,943
|
|
0.8
|
Total costs and
expenses
|
|
1,333,349
|
|
1,492,463
|
|
11.9
|
Other operating
income
|
|
36,184
|
|
10,191
|
|
N/M
|
Income from
operations
|
|
163,329
|
|
77,539
|
|
(52.5)
|
Other income and
expense:
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated subsidiaries
|
|
9,763
|
|
11,248
|
|
15.2
|
Gain (loss) on sale of
businesses
|
|
(303)
|
|
2,155
|
|
N/M
|
Interest
income
|
|
—
|
|
601
|
|
N/M
|
Interest
expense
|
|
(35,512)
|
|
(33,870)
|
|
(4.6)
|
Income before income
taxes
|
|
137,277
|
|
57,673
|
|
(58.0)
|
Income tax expense
(benefit)
|
|
35,062
|
|
(8,637)
|
|
N/M
|
Net income
|
|
102,215
|
|
66,310
|
|
(35.1)
|
Less: Net income
attributable to non-controlling interests
|
|
24,941
|
|
16,453
|
|
(34.0)
|
Net income
attributable to Select Medical
|
|
$
77,274
|
|
$
49,857
|
|
(35.5) %
|
Basic and diluted
earnings per common share:(1)
|
|
$
0.57
|
|
$
0.37
|
|
|
_______________________________________________________________________________
|
(1) Refer to table III
for calculation of earnings per common share.
|
N/M Not meaningful.
|
II.
Condensed Consolidated Statements of Operations For the
Years Ended December 31, 2020 and 2021 (In
thousands, except per share amounts, unaudited)
|
|
|
|
2020
|
|
2021
|
|
%
Change
|
Revenue
|
|
$
5,531,713
|
|
$
6,204,515
|
|
12.2 %
|
Costs and
expenses:
|
|
|
|
|
|
|
Cost of services,
exclusive of depreciation and amortization
|
|
4,710,372
|
|
5,285,149
|
|
12.2
|
General and
administrative
|
|
138,037
|
|
146,975
|
|
6.5
|
Depreciation and
amortization
|
|
205,659
|
|
202,645
|
|
(1.5)
|
Total costs and
expenses
|
|
5,054,068
|
|
5,634,769
|
|
11.5
|
Other operating
income
|
|
90,012
|
|
144,028
|
|
N/M
|
Income from
operations
|
|
567,657
|
|
713,774
|
|
25.7
|
Other income and
expense:
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated subsidiaries
|
|
29,440
|
|
44,428
|
|
50.9
|
Gain on sale of
businesses
|
|
12,387
|
|
2,155
|
|
N/M
|
Interest
income
|
|
—
|
|
5,350
|
|
N/M
|
Interest
expense
|
|
(153,011)
|
|
(135,985)
|
|
(11.1)
|
Income before income
taxes
|
|
456,473
|
|
629,722
|
|
38.0
|
Income tax
expense
|
|
111,867
|
|
129,773
|
|
16.0
|
Net income
|
|
344,606
|
|
499,949
|
|
45.1
|
Less: Net income
attributable to non-controlling interests
|
|
85,611
|
|
97,724
|
|
14.1
|
Net income
attributable to Select Medical
|
|
$
258,995
|
|
$
402,225
|
|
55.3 %
|
Basic and diluted
earnings per common share:(1)
|
|
$
1.93
|
|
$
2.98
|
|
|
_______________________________________________________________________________
|
(1) Refer
to table III for calculation of earnings per common
share.
|
N/M
Not meaningful.
|
III. Earnings per Share
For the Three Months
and Years Ended December 31, 2020 and 2021
(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 net income attributable to
Select Medical, its common shares outstanding, and its
participating securities outstanding for the three months and years
ended December 31, 2020 and 2021:
|
|
Basic and Diluted
EPS
|
|
|
|
Three Months
Ended
December 31,
|
|
Years
Ended December
31,
|
|
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
Net income
|
|
$
102,215
|
|
$
66,310
|
|
$
344,606
|
|
$
499,949
|
|
Less: net income
attributable to non-controlling interests
|
|
24,941
|
|
16,453
|
|
85,611
|
|
97,724
|
|
Net income
attributable to Select Medical
|
|
77,274
|
|
49,857
|
|
258,995
|
|
402,225
|
|
Less: net income
attributable to participating securities
|
|
2,638
|
|
1,660
|
|
8,896
|
|
13,435
|
|
Net income
attributable to common shares
|
|
$
74,636
|
|
$
48,197
|
|
$
250,099
|
|
$
388,790
|
|
The following tables set forth the computation of EPS under the
two-class method for the three months and years ended December 31, 2020 and 2021:
|
|
Three Months Ended
December 31,
|
|
|
2020
|
|
|
2021
|
|
|
Net Income
Allocation
|
|
Shares(1)
|
|
Basic and Diluted
EPS
|
|
|
Net Income
Allocation
|
|
Shares(1)
|
|
Basic and Diluted
EPS
|
Common
shares
|
|
$
74,636
|
|
130,269
|
|
$
0.57
|
|
|
$
48,197
|
|
129,679
|
|
$
0.37
|
Participating
securities
|
|
2,638
|
|
4,605
|
|
$
0.57
|
|
|
1,660
|
|
4,466
|
|
$
0.37
|
Total
|
|
$
77,274
|
|
|
|
|
|
|
$
49,857
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
2020
|
|
|
2021
|
|
|
Net Income
Allocation
|
|
Shares(1)
|
|
Basic and Diluted
EPS
|
|
|
Net Income
Allocation
|
|
Shares(1)
|
|
Basic and Diluted
EPS
|
Common
shares
|
|
$
250,099
|
|
129,780
|
|
$
1.93
|
|
|
$
388,790
|
|
130,249
|
|
$
2.98
|
Participating
securities
|
|
8,896
|
|
4,616
|
|
$
1.93
|
|
|
13,435
|
|
4,501
|
|
$
2.98
|
Total
|
|
$
258,995
|
|
|
|
|
|
|
$
402,225
|
|
|
|
|
_______________________________________________________________________________
|
(1) Represents the
weighted average share count outstanding during the
period.
|
IV.
Condensed Consolidated Balance Sheets (In thousands,
unaudited)
|
|
|
|
December
31,
|
|
|
2020
|
|
2021
|
Assets
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
577,061
|
|
$
74,310
|
Accounts
receivable
|
|
896,763
|
|
889,303
|
Other current
assets
|
|
120,176
|
|
175,826
|
Total Current
Assets
|
|
1,594,000
|
|
1,139,439
|
Operating lease
right-of-use assets
|
|
1,032,217
|
|
1,078,754
|
Property and
equipment, net
|
|
943,420
|
|
961,467
|
Goodwill
|
|
3,379,014
|
|
3,448,912
|
Identifiable
intangible assets, net
|
|
387,541
|
|
374,879
|
Other
assets
|
|
319,207
|
|
356,720
|
Total
Assets
|
|
$
7,655,399
|
|
$
7,360,171
|
Liabilities and
Equity
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Payables and
accruals
|
|
$
800,918
|
|
$
942,288
|
Government
advances
|
|
321,807
|
|
83,790
|
Unearned government
assistance
|
|
82,607
|
|
93
|
Current operating
lease liabilities
|
|
220,413
|
|
229,334
|
Current portion of
long-term debt and notes payable
|
|
12,621
|
|
17,572
|
Total Current
Liabilities
|
|
1,438,366
|
|
1,273,077
|
Non-current operating
lease liabilities
|
|
875,367
|
|
916,540
|
Long-term debt, net of
current portion
|
|
3,389,398
|
|
3,556,385
|
Non-current deferred
tax liability
|
|
132,421
|
|
142,792
|
Other non-current
liabilities
|
|
168,703
|
|
106,442
|
Total
Liabilities
|
|
6,004,255
|
|
5,995,236
|
Redeemable
non-controlling interests
|
|
398,171
|
|
39,033
|
Total
equity
|
|
1,252,973
|
|
1,325,902
|
Total Liabilities
and Equity
|
|
$
7,655,399
|
|
$
7,360,171
|
V. Condensed
Consolidated Statements of Cash Flows For the Three
Months Ended December 31, 2020 and 2021 (In
thousands, unaudited)
|
|
|
|
2020
|
|
2021
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
102,215
|
|
$
66,310
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
Distributions from
unconsolidated subsidiaries
|
|
13,670
|
|
9,230
|
Depreciation and
amortization
|
|
51,526
|
|
51,943
|
Provision for
expected credit losses
|
|
323
|
|
64
|
Equity in earnings of
unconsolidated subsidiaries
|
|
(9,763)
|
|
(11,248)
|
Loss (gain) sale of
assets and businesses
|
|
2,160
|
|
(2,322)
|
Stock compensation
expense
|
|
6,422
|
|
8,938
|
Amortization of debt
discount, premium and issuance costs
|
|
549
|
|
562
|
Deferred income
taxes
|
|
(159)
|
|
17,020
|
Changes in operating
assets and liabilities, net of effects of business
combinations:
|
|
|
|
|
Accounts
receivable
|
|
(25,188)
|
|
22,456
|
Other current
assets
|
|
4,040
|
|
(596)
|
Other
assets
|
|
1,252
|
|
(4,072)
|
Accounts payable and
accrued expenses
|
|
44,722
|
|
(141,001)
|
Government
advances
|
|
—
|
|
(75,715)
|
Unearned government
assistance
|
|
15,669
|
|
(2,321)
|
Net cash provided by
(used in) operating activities
|
|
207,438
|
|
(60,752)
|
Investing
activities
|
|
|
|
|
Business combinations,
net of cash acquired
|
|
(6,732)
|
|
(55,081)
|
Purchases of property
and equipment
|
|
(40,868)
|
|
(55,151)
|
Investment in
businesses
|
|
(5,568)
|
|
(4,600)
|
Proceeds from sale of
assets and businesses
|
|
—
|
|
15,564
|
Net cash used in
investing activities
|
|
(53,168)
|
|
(99,268)
|
Financing
activities
|
|
|
|
|
Borrowings on
revolving facilities
|
|
—
|
|
160,000
|
Borrowings of other
debt
|
|
5,022
|
|
13,498
|
Principal payments on
other debt
|
|
(5,561)
|
|
(16,758)
|
Dividends paid to
common stockholders
|
|
—
|
|
(16,784)
|
Repurchase of common
stock
|
|
(1,792)
|
|
(13,426)
|
Increase in
overdrafts
|
|
—
|
|
42,353
|
Proceeds from issuance
of non-controlling interests
|
|
5,878
|
|
806
|
Distributions to and
purchases of non-controlling interests
|
|
(10,393)
|
|
(22,684)
|
Purchase of
membership interests of Concentra Group Holdings Parent
|
|
(210,163)
|
|
(660,658)
|
Net cash used in
financing activities
|
|
(217,009)
|
|
(513,653)
|
Net decrease in cash
and cash equivalents
|
|
(62,739)
|
|
(673,673)
|
Cash and cash
equivalents at beginning of period
|
|
639,800
|
|
747,983
|
Cash and cash
equivalents at end of period
|
|
$
577,061
|
|
$
74,310
|
Supplemental
information:
|
|
|
|
|
Cash paid for
interest
|
|
$
15,062
|
|
$
13,633
|
Cash paid for
taxes
|
|
$
26,945
|
|
$
44,327
|
VI.
Condensed Consolidated Statements of Cash Flows For the
Years Ended December 31, 2020 and 2021 (In
thousands, unaudited)
|
|
|
|
2020
|
|
2021
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
344,606
|
|
$
499,949
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Distributions from
unconsolidated subsidiaries
|
|
35,390
|
|
37,002
|
Depreciation and
amortization
|
|
205,659
|
|
202,645
|
Provision for
expected credit losses
|
|
604
|
|
236
|
Equity in earnings of
unconsolidated subsidiaries
|
|
(29,440)
|
|
(44,428)
|
Gain on sale of
assets and businesses
|
|
(22,563)
|
|
(2,409)
|
Stock compensation
expense
|
|
27,250
|
|
30,940
|
Amortization of debt
discount, premium and issuance costs
|
|
2,184
|
|
2,217
|
Deferred income
taxes
|
|
(14,715)
|
|
5,055
|
Changes in operating
assets and liabilities, net of effects of business
combinations:
|
|
|
|
|
Accounts
receivable
|
|
(116,601)
|
|
23,101
|
Other current
assets
|
|
(18,775)
|
|
(2,418)
|
Other
assets
|
|
17,587
|
|
(7,196)
|
Accounts payable and
accrued expenses
|
|
196,164
|
|
(19,767)
|
Government
advances
|
|
318,116
|
|
(241,185)
|
Unearned government
assistance
|
|
82,607
|
|
(82,514)
|
Net cash provided by
operating activities
|
|
1,028,073
|
|
401,228
|
Investing
activities
|
|
|
|
|
Business combinations,
net of cash acquired
|
|
(20,808)
|
|
(81,911)
|
Purchases of property
and equipment
|
|
(146,440)
|
|
(180,537)
|
Investment in
businesses
|
|
(31,425)
|
|
(20,967)
|
Proceeds from sale of
assets and businesses
|
|
83,320
|
|
26,821
|
Net cash used in
investing activities
|
|
(115,353)
|
|
(256,594)
|
Financing
activities
|
|
|
|
|
Borrowings on
revolving facilities
|
|
470,000
|
|
160,000
|
Payments on revolving
facilities
|
|
(470,000)
|
|
—
|
Payments on term
loans
|
|
(39,843)
|
|
—
|
Borrowings of other
debt
|
|
40,108
|
|
33,013
|
Principal payments on
other debt
|
|
(48,381)
|
|
(39,668)
|
Dividends paid to
common stockholders
|
|
—
|
|
(50,600)
|
Repurchase of common
stock
|
|
(16,034)
|
|
(79,476)
|
Increase in
overdrafts
|
|
—
|
|
42,353
|
Proceeds from issuance
of non-controlling interests
|
|
7,564
|
|
20,732
|
Distributions to and
purchases of non-controlling interests
|
|
(38,589)
|
|
(73,081)
|
Purchase of
membership interests of Concentra Group Holdings Parent
|
|
(576,366)
|
|
(660,658)
|
Net cash used in
financing activities
|
|
(671,541)
|
|
(647,385)
|
Net increase
(decrease) in cash and cash equivalents
|
|
241,179
|
|
(502,751)
|
Cash and cash
equivalents at beginning of period
|
|
335,882
|
|
577,061
|
Cash and cash
equivalents at end of period
|
|
$
577,061
|
|
$
74,310
|
Supplemental
information:
|
|
|
|
|
Cash paid for
interest
|
|
$
155,236
|
|
$
132,203
|
Cash paid for
taxes
|
|
$
108,890
|
|
$
181,184
|
VII. Key
Statistics
For the Three Months Ended December 31, 2020 and 2021
(unaudited)
|
|
|
|
2020
|
|
2021
|
|
%
Change
|
Critical Illness
Recovery Hospital
|
|
|
|
|
|
|
Number of hospitals –
end of period(a)
|
|
99
|
|
104
|
|
|
Revenue
(,000)
|
|
$
537,898
|
|
$
577,195
|
|
7.3 %
|
Number of patient
days(b)(c)
|
|
285,346
|
|
294,486
|
|
3.2 %
|
Number of
admissions(b)(d)
|
|
9,376
|
|
9,786
|
|
4.4 %
|
Revenue per patient
day(b)(e)
|
|
$
1,881
|
|
$
1,946
|
|
3.5 %
|
Adjusted EBITDA
(,000)
|
|
$
75,284
|
|
$
24,572
|
|
(67.4) %
|
Adjusted EBITDA
margin
|
|
14.0 %
|
|
4.3 %
|
|
|
Rehabilitation
Hospital
|
|
|
|
|
|
|
Number of hospitals –
end of period(a)
|
|
30
|
|
30
|
|
|
Revenue
(,000)
|
|
$
195,912
|
|
$
216,436
|
|
10.5 %
|
Number of patient
days(b)(c)
|
|
96,504
|
|
104,361
|
|
8.1 %
|
Number of
admissions(b)(d)
|
|
6,592
|
|
7,134
|
|
8.2 %
|
Revenue per patient
day(b)(e)
|
|
$
1,839
|
|
$
1,888
|
|
2.7 %
|
Adjusted EBITDA
(,000)
|
|
$
42,392
|
|
$
39,326
|
|
(7.2) %
|
Adjusted EBITDA
margin
|
|
21.6 %
|
|
18.2 %
|
|
|
Outpatient
Rehabilitation
|
|
|
|
|
|
|
Number of clinics –
end of period(a)
|
|
1,788
|
|
1,881
|
|
|
Revenue
(,000)
|
|
$
257,484
|
|
$
277,451
|
|
7.8 %
|
Number of
visits(b)(f)
|
|
2,145,040
|
|
2,341,539
|
|
9.2 %
|
Revenue per
visit(b)(g)
|
|
$
103
|
|
$
102
|
|
(1.0) %
|
Adjusted EBITDA
(,000)
|
|
$
27,701
|
|
$
27,551
|
|
(0.5) %
|
Adjusted EBITDA
margin
|
|
10.8 %
|
|
9.9 %
|
|
|
Concentra
|
|
|
|
|
|
|
Number of centers –
end of period(b)
|
|
517
|
|
518
|
|
|
Revenue
(,000)
|
|
$
398,702
|
|
$
410,639
|
|
3.0 %
|
Number of
visits(b)(f)
|
|
2,772,382
|
|
3,003,441
|
|
8.3 %
|
Revenue per
visit(b)(g)
|
|
$
122
|
|
$
125
|
|
2.5 %
|
Adjusted EBITDA
(,000)
|
|
$
69,382
|
|
$
70,709
|
|
1.9 %
|
Adjusted EBITDA
margin
|
|
17.4 %
|
|
17.2 %
|
|
|
_______________________________________________________________________________
|
(a)
|
Includes managed
locations.
|
(b)
|
Excludes managed
locations. For purposes of the Concentra segment, onsite clinics
and community-based outpatient clinics are excluded.
|
(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 number
of visits in which patients were treated at Select Medical's
outpatient rehabilitation clinics and Concentra centers during the
periods presented.
|
(g)
|
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. For purposes of this computation for
the Concentra segment, patient service revenue does not include
onsite clinics and community-based outpatient clinics.
|
VIII. Key
Statistics
For the Years Ended December 31, 2020 and 2021
(unaudited)
|
|
|
|
2020
|
|
2021
|
|
%
Change
|
Critical Illness
Recovery Hospital
|
|
|
|
|
|
|
Number of hospitals –
end of period(a)
|
|
99
|
|
104
|
|
|
Revenue
(,000)
|
|
$
2,077,499
|
|
$
2,246,772
|
|
8.1 %
|
Number of patient
days(b)(c)
|
|
1,111,756
|
|
1,133,039
|
|
1.9 %
|
Number of
admissions(b)(d)
|
|
37,456
|
|
37,921
|
|
1.2 %
|
Revenue per patient
day(b)(e)
|
|
$
1,858
|
|
$
1,972
|
|
6.1 %
|
Adjusted EBITDA
(,000)
|
|
$
342,427
|
|
$
267,993
|
|
(21.7) %
|
Adjusted EBITDA
margin
|
|
16.5 %
|
|
11.9 %
|
|
|
Rehabilitation
Hospital
|
|
|
|
|
|
|
Number of hospitals –
end of period(a)
|
|
30
|
|
30
|
|
|
Revenue
(,000)
|
|
$
734,673
|
|
$
849,340
|
|
15.6 %
|
Number of patient
days(b)(c)
|
|
370,833
|
|
414,701
|
|
11.8 %
|
Number of
admissions(b)(d)
|
|
25,081
|
|
28,868
|
|
15.1 %
|
Revenue per patient
day(b)(e)
|
|
$
1,793
|
|
$
1,868
|
|
4.2 %
|
Adjusted EBITDA
(,000)
|
|
$
153,203
|
|
$
184,704
|
|
20.6 %
|
Adjusted EBITDA
margin
|
|
20.9 %
|
|
21.7 %
|
|
|
Outpatient
Rehabilitation
|
|
|
|
|
|
|
Number of clinics –
end of period(a)
|
|
1,788
|
|
1,881
|
|
|
Revenue
(,000)
|
|
$
919,913
|
|
$
1,084,361
|
|
17.9 %
|
Number of
visits(b)(f)
|
|
7,593,344
|
|
9,193,624
|
|
21.1 %
|
Revenue per
visit(b)(g)
|
|
$
104
|
|
$
102
|
|
(1.9) %
|
Adjusted EBITDA
(,000)
|
|
$
79,164
|
|
$
138,275
|
|
74.7 %
|
Adjusted EBITDA
margin
|
|
8.6 %
|
|
12.8 %
|
|
|
Concentra
|
|
|
|
|
|
|
Number of centers –
end of period(b)
|
|
517
|
|
518
|
|
|
Revenue
(,000)
|
|
$
1,501,434
|
|
$
1,732,041
|
|
15.4 %
|
Number of
visits(b)(f)
|
|
10,627,904
|
|
12,052,724
|
|
13.4 %
|
Revenue per
visit(b)(g)
|
|
$
123
|
|
$
125
|
|
1.6 %
|
Adjusted EBITDA
(,000)
|
|
$
252,892
|
|
$
389,616
|
|
54.1 %
|
Adjusted EBITDA
margin
|
|
16.8 %
|
|
22.5 %
|
|
|
_______________________________________________________________________________
|
(a)
|
Includes managed
locations.
|
(b)
|
Excludes managed
locations. For purposes of the Concentra segment, onsite clinics
and community-based outpatient clinics are excluded.
|
(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 number
of visits in which patients were treated at Select Medical's
outpatient rehabilitation clinics and Concentra centers during the
periods presented.
|
(g)
|
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. For purposes of this computation for
the Concentra segment, patient service revenue does not include
onsite clinics and community-based outpatient clinics.
|
IX. Net Income to Adjusted EBITDA
Reconciliation
For the Three Months and Years Ended
December 31, 2020 and 2021
(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, net income, income from
operations, 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 net income to Adjusted EBITDA for
Select Medical. Adjusted EBITDA is used by Select Medical to report
its segment performance. Adjusted EBITDA is defined as earnings
excluding interest, income taxes, depreciation and amortization,
gain (loss) on early retirement of debt, stock compensation
expense, gain (loss) on sale of businesses, and equity in earnings
(losses) of unconsolidated subsidiaries.
|
Three Months
Ended
December 31,
|
|
Years
Ended December 31,
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
Net income
|
$
102,215
|
|
$
66,310
|
|
$
344,606
|
|
$
499,949
|
Income tax expense
(benefit)
|
35,062
|
|
(8,637)
|
|
111,867
|
|
129,773
|
Interest
expense
|
35,512
|
|
33,870
|
|
153,011
|
|
135,985
|
Interest
income
|
—
|
|
(601)
|
|
—
|
|
(5,350)
|
Loss (gain) on sale
of businesses
|
303
|
|
(2,155)
|
|
(12,387)
|
|
(2,155)
|
Equity in earnings of
unconsolidated subsidiaries
|
(9,763)
|
|
(11,248)
|
|
(29,440)
|
|
(44,428)
|
Income from
operations
|
$
163,329
|
|
$
77,539
|
|
$
567,657
|
|
$
713,774
|
Stock compensation
expense:
|
|
|
|
|
|
|
|
Included in general
and administrative
|
5,565
|
|
7,061
|
|
22,053
|
|
24,598
|
Included in cost of
services
|
857
|
|
1,877
|
|
5,197
|
|
6,342
|
Depreciation and
amortization
|
51,526
|
|
51,943
|
|
205,659
|
|
202,645
|
Adjusted
EBITDA
|
$
221,277
|
|
$
138,420
|
|
$
800,566
|
|
$
947,359
|
|
|
|
|
|
|
|
|
Critical illness
recovery hospital(a)
|
$
75,284
|
|
$
24,572
|
|
$
342,427
|
|
$
267,993
|
Rehabilitation
hospital
|
42,392
|
|
39,326
|
|
153,203
|
|
184,704
|
Outpatient
rehabilitation
|
27,701
|
|
27,551
|
|
79,164
|
|
138,275
|
Concentra(b)
|
69,382
|
|
70,709
|
|
252,892
|
|
389,616
|
Other(c)(d)
|
6,518
|
|
(23,738)
|
|
(27,120)
|
|
(33,229)
|
Adjusted
EBITDA
|
$
221,277
|
|
$
138,420
|
|
$
800,566
|
|
$
947,359
|
_______________________________________________________________________________
|
(a)
|
For the three months
and year ended December 31, 2021, Adjusted EBITDA included other
operating income of $2.0 million and $19.9 million,
respectively. The other operating income related to the outcome of
litigation with the Centers for Medicare & Medicaid
Services.
|
(b)
|
For the three months
and year ended December 31, 2021, Adjusted EBITDA included other
operating income of $1.0 million and $35.0 million, respectively.
For the year ended December 31, 2020, Adjusted EBITDA included
other operating income of $1.1 million. The other operating income
is primarily related to the recognition of payments received under
the Provider Relief Fund.
|
(c)
|
For the three months
and year ended December 31, 2021, Adjusted EBITDA included other
operating income of $7.1 million and $89.1 million, respectively.
For the three months and year ended December 31, 2020, Adjusted
EBITDA included other operating income of $36.2 million and $88.9
million, respectively. The other operating income is related to the
recognition of payments received under the Provider Relief
Fund.
|
(d)
|
Other primarily
includes general and administrative costs and other operating
income, as discussed further above.
|
X. Reconciliation of Earnings per Common Share to
Adjusted Earnings per Common Share
For the Three Months
and Years Ended December 31, 2020 and 2021
(In
thousands, except per share amounts, unaudited)
Adjusted net income attributable to common shares and adjusted
earnings per common share are not measures of financial performance
under GAAP. Items excluded from adjusted net income
attributable to common shares and adjusted earnings per common
share are significant components in understanding and assessing
financial performance. Select Medical believes that the
presentation of adjusted net income attributable to common shares
and adjusted earnings per common share are important to investors
because they are reflective of the financial performance of Select
Medical's ongoing operations and provide better comparability of
its results of operations between periods. Adjusted net income
attributable to common shares and adjusted earnings per common
share should not be considered in isolation or as alternatives to,
or substitutes for, net income, 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
net income attributable to common shares and adjusted earnings per
common share are not measurements determined in accordance with
GAAP and are thus susceptible to varying calculations, adjusted net
income attributable to common shares and adjusted earnings per
common share as presented may not be comparable to other similarly
titled measures of other companies.
The following tables reconcile net income attributable to common
shares and earnings per common share on a fully diluted basis to
adjusted net income attributable to common shares and adjusted
earnings per common share on a fully diluted basis.
|
Three Months Ended
December 31,
|
|
2020
|
|
Per
Share(a)
|
|
2021
|
|
Per
Share(a)
|
Net income
attributable to common shares(a)
|
$
74,636
|
|
$
0.57
|
|
$
48,197
|
|
$
0.37
|
Adjustments:(b)
|
|
|
|
|
|
|
|
Loss (gain) on sale of
businesses
|
201
|
|
0.00
|
|
(775)
|
|
0.00
|
Adjusted net income
attributable to common shares
|
$
74,837
|
|
$
0.57
|
|
$
47,422
|
|
$
0.37
|
|
Years Ended
December 31,
|
|
2020
|
|
Per
Share(a)
|
|
2021
|
|
Per
Share(a)
|
Net income
attributable to common shares(a)
|
$
250,099
|
|
$
1.93
|
|
$
388,790
|
|
$
2.98
|
Adjustments:(b)
|
|
|
|
|
|
|
|
Gain on sale of
businesses
|
(4,888)
|
|
(0.04)
|
|
(775)
|
|
0.00
|
Adjusted net income
attributable to common shares
|
$
245,211
|
|
$
1.89
|
|
$
388,015
|
|
$
2.98
|
_______________________________________________________________________________
|
(a)
|
Net income
attributable to common shares and earnings per common share are
calculated based on the diluted weighted average common shares
outstanding, as presented in table III.
|
(b)
|
Adjustments to net
income attributable to common shares include estimated income tax
and non-controlling interest impacts and are calculated based on
the diluted weighted average common shares outstanding. The
estimated income tax impact, which is determined using tax rates
based on the nature of the adjustment and the jurisdiction in which
the adjustment occurred, includes both current and deferred income
tax expense or benefit.
|
|
For the three months
ended December 31, 2020, the estimated income tax effect on the
adjustment made to net income attributable to common shares was
immaterial. For the three months ended December 31, 2021, the
adjustments to net income attributable to common shares include
estimated income tax expense of approximately $1.1
million
|
|
For the year ended
December 31, 2020, the adjustments to net income attributable to
common shares include estimated income tax expense of approximately
$3.3 million. For the year ended December 31, 2021, the adjustments
to net income attributable to common shares include estimated
income tax expense of approximately $1.1 million.
|
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content:https://www.prnewswire.com/news-releases/select-medical-holdings-corporation-announces-results-for-its-fourth-quarter-and-year-ended-december-31-2021-and-cash-dividend-301490180.html
SOURCE Select Medical Holdings Corporation