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]

Core Viewpoint - Select Medical Holdings Corporation reported its fourth quarter and full year results for 2024, highlighting revenue growth but a net loss due to one-time expenses related to the distribution of Concentra and debt refinancing [1][3][4]. Financial Performance - For Q4 2024, revenue increased by 7.8% to $1,312.6 million compared to $1,218.1 million in Q4 2023 [3]. - Income from continuing operations before other income and expense was $21.1 million, a decrease of 67.5% from $64.9 million in the same quarter last year [3]. - The net loss from continuing operations was $10.5 million, compared to a profit of $30.3 million in Q4 2023 [3]. - Adjusted EBITDA for Q4 2024 rose by 3.8% to $116.0 million from $111.8 million in Q4 2023 [3]. - For the full year 2024, revenue grew by 7.5% to $5,187.1 million from $4,826.0 million in 2023 [4]. - Income from continuing operations, net of tax, increased by 17.7% to $130.0 million compared to $110.5 million in 2023 [4]. - Adjusted EBITDA for the year increased by 14.4% to $510.4 million from $446.1 million in 2023 [4]. Segment Performance - Critical Illness Recovery Hospital Segment: - Q4 revenue increased by 5.9% to $600.4 million [6]. - Full year revenue rose by 6.3% to $2,444.2 million [8]. - Rehabilitation Hospital Segment: - Q4 revenue increased by 13.1% to $294.4 million [9]. - Full year revenue grew by 13.4% to $1,110.6 million [10]. - Outpatient Rehabilitation Segment: - Q4 revenue increased by 7.2% to $319.6 million [11]. - Full year revenue rose by 5.2% to $1,250.3 million [12]. Dividend and Stock Repurchase - A cash dividend of $0.0625 per share was declared, payable on or about March 13, 2025 [13]. - The board authorized a stock repurchase program of up to $1.0 billion, which will remain in effect until December 31, 2025 [15]. Financing Transactions - A new incremental term loan of $1,050.0 million was established, maturing on December 3, 2031 [18]. - Issued $550.0 million of 6.250% senior notes due December 1, 2032, to refinance existing debt [19]. Business Outlook - For 2025, Select Medical expects revenue between $5.4 billion and $5.6 billion, with Adjusted EBITDA in the range of $520.0 million to $540.0 million [20].

Company Overview - Select Medical Holdings Corporation is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States based on the number of facilities [4] - As of December 31, 2024, Select Medical operated 104 critical illness recovery hospitals in 29 states, 35 rehabilitation hospitals in 14 states, and 1,914 outpatient rehabilitation clinics in 39 states and the District of Columbia [4] - The company has operations in 41 states and the District of Columbia [4] Financial Results Announcement - Select Medical will release its financial results for the fourth quarter and year ended December 31, 2024, on Thursday, February 20, 2025, after the market closes [1] - A conference call regarding the fourth quarter and full year results, as well as the business outlook, will be hosted on Friday, February 21, 2025, at 9:00 am ET [2] - The conference call will be available as a live webcast and can be accessed through the company's website [2]

Core Viewpoint - Select Medical Holdings Corporation (SEM) has experienced a significant decline in stock performance, dropping 48.2% over the past six months, which is substantially worse than the industry average decline of 1.9% [1][2] Financial Performance - SEM's stock is currently down 14.9% from its 52-week high of $22.08 and is trading below its 50-day moving average, indicating potential downward momentum [2] - The company's profitability has been negatively impacted by rising costs, which increased by 11.5%, 5.8%, and 2.5% in 2021, 2022, and 2023, respectively, with an additional 5.6% rise in the first nine months of 2024 [5] - Overall costs are projected to increase by more than 5% year-over-year for the full year, putting pressure on profit margins [5] Growth Strategy - SEM is pursuing growth through acquisitions to enhance volumes, but its return on invested capital stands at 6.2%, below the industry average of 10.4%, indicating less effective capital utilization [6] - The company faces significant leverage, with a net debt-to-capital ratio of 55.2%, compared to the industry average of 20.6% [7] - As of September 30, 2024, SEM reported $3.1 billion in long-term debt and only $191.5 million in cash and cash equivalents [7] Strategic Initiatives - SEM completed the spin-off of Concentra in November 2024, which aims to streamline operations and focus on core business areas such as critical illness recovery hospitals and rehabilitation clinics [9] Valuation Metrics - The stock is currently trading at 9.57X forward 12-month earnings, below its five-year median of 12.90X and the industry average of 14.34X, suggesting it may be undervalued [10] - Peers like Centene and Cigna are valued at 8.88X and 9.62X forward 12-month earnings, respectively [12] Earnings Outlook - The Zacks Consensus Estimate for SEM's current-quarter adjusted earnings is 15 cents per share, reflecting a 58.3% year-over-year decline, with further declines of 46.8% expected for the next quarter [13] Conclusion - Rising costs and significant leverage are straining SEM's financial health, and despite strategic moves like the Concentra spin-off, downward earnings revisions and underperformance compared to peers indicate ongoing struggles [14]

Core Viewpoint - Select Medical Holdings Corporation has successfully completed a private offering of $550 million in senior notes, which will be used to refinance existing debt and cover related expenses [1][2]. Group 1: Offering Details - Select Medical Corporation, a subsidiary of Select Medical Holdings, issued $550 million in 6.250% senior notes due 2032 [1]. - The notes are senior unsecured obligations and are guaranteed by certain existing and future domestic subsidiaries of Select [1]. Group 2: Use of Proceeds - The net proceeds from the offering, along with funds from a new incremental term loan and cash on hand, will be utilized to fully repay existing term loans under the senior secured credit agreement [2]. - The proceeds will also be used to redeem all outstanding 6.250% senior notes due 2026 and to cover associated fees and expenses [2]. Group 3: Regulatory Information - The notes and related guarantees have not been registered under the Securities Act of 1933 and are offered only to qualified institutional buyers and certain non-U.S. persons [3]. - The offering is conducted in compliance with Rule 144A and Regulation S under the Securities Act [3].

Core Viewpoint - Select Medical (SEM) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for Select Medical indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending December 2024, Select Medical is projected to earn $2.16 per share, reflecting an 8.5% increase from the previous year, with a 4.2% rise in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [8][9]. Conclusion - The upgrade of Select Medical to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].

A downtrend has been apparent in Select Medical (SEM) lately with too much selling pressure. The stock has declined 38.1% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, f ...

Hospital operator Select Medical Holdings Corporation (SEM) recently completed the spin-off of Concentra Group Holdings Parent, Inc. (CON) by distributing its 81.7% ownership stake in the company to its shareholders. Per the previously announced distribution plan, Select Medical distributed 104,093,503 shares of Concentra’s common stock.This was done through a pro-rata stock distribution, where shareholders of SEM received 0.806971 shares of Concentra common stock for each share of SEM they held as of the r ...

MECHANICSBURG, Pa., Nov. 25, 2024 /PRNewswire/ -- Select Medical Holdings Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM) today announced that we have completed our previously announced distribution (the "Distribution") of 104,093,503 shares of common stock of Concentra Group Holdings Parent, Inc. ("Concentra") (NYSE: CON) owned by Select Medical Corporation ("SMC"), a wholly owned subsidiary of Select Medical, representing approximately 81.7% of the outstanding shares of Concentra's common ...

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.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being un ...