Q4 2024 Select Medical Holdings Corp Earnings Call Transcript
Key Points
- Select Medical Holdings Corp (SEM) completed the spin-off of Concentra, allowing the company to focus on its remaining three lines of business.
- The company successfully refinanced $1.6 billion of its outstanding debt, extending the maturity of its revolving credit facility to 2029 and increasing availability.
- SEM added 94 inpatient rehabilitation beds in the fourth quarter, including new facilities in Oklahoma City, Dallas, and Dublin, Ohio.
- Revenue from continuing operations grew by 7% for the full year, with adjusted EBITDA growth of 14%.
- The outpatient rehab division saw a 7% increase in revenue and an 18% increase in adjusted EBITDA from the prior year Q4.
- Adjusted EBITDA for the inpatient rehab hospital division declined by 6% due to start-up losses and integration costs.
- Occupancy rates for the rehab division decreased from 85% to 81%, primarily due to new hospitals.
- The company experienced a negative EBITDA impact of over $1 million due to hurricanes Helene and Milton affecting southern outpatient markets.
- Dilution loss per common share from continuing operations was $0.19 for the fourth quarter, compared to earnings per common share of $0.12 in the prior year.
- Margins for the inpatient rehab division are expected to be constrained in 2025 due to start-up losses and integration costs.
Good morning and thank you for joining us today for Select Medical Holdings Corporation's earnings conference call to discuss the fourth-quarter and full year 2024 results and the company's business outlook.
Speaking today are the company's Executive Chairman and Co-Founder, Robert Ortenzio; the company's Senior Executive Vice President of Strategic Finance and Operations, Martin Jackson; and Executive Vice President and CFO, Michael Malatesta. Management will give you an overview of the quarter and then open the call for questions.
Before we get started, we would like to remind you that this conference call may contain forward-looking statements regarding future events or the future financial performance of the company including, without limitation, statements regarding operating results, growth opportunities and other statements that refer to Select Medical's plans, expectations, strategies, intentions and beliefs. These forward-looking statements are based on the information available to management of Select Medical today, and the company assumes no obligation to update these
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