Q1 2025 Select Medical Holdings Corp Earnings Call Transcript
Key Points
- Select Medical Holdings Corp (SEM) reported a 16% increase in revenue and a 15% increase in adjusted EBITDA for its Inpatient Rehab Hospital division, showcasing strong performance.
- The company plans to add 440 additional beds to its operations from Q2 2025 through the end of 2027, indicating a robust development pipeline.
- Earnings per common share from continuing operations increased by 33% to $0.44 for the first quarter, compared to $0.33 per share in the same quarter prior year.
- The outpatient division had a strong finish to the quarter, which has carried over into the second quarter, showing resilience despite earlier challenges.
- Select Medical Holdings Corp (SEM) repurchased almost 650,000 shares of its stock, reflecting confidence in its financial position and future prospects.
- The outpatient division was impacted by severe weather events and a 3% reduction in Medicare reimbursement, affecting its performance.
- The Critical Illness Recovery Hospital division faced challenges due to regulatory changes, including an increase in the high-cost outlier threshold and the 20% transmittal rule.
- Adjusted EBITDA declined by 9% from $165.8 million to $151.4 million, indicating a decrease in profitability.
- Revenue for the Critical Illness Recovery hospitals decreased by 3%, driven by a decline in rate per patient day and patient days.
- The adjusted EBITDA margin for the outpatient division decreased from 8.2% to 7.9%, reflecting margin pressure.
Good morning and thank you for joining us today for Select Medical Holdings Corporation's earnings conference call to discuss the first quarter 2025 results at the company's -- and the company's business outlook.
Presenting today are the company's Executive Chairman and Co-Founder, Robert Ortenzio; and the company's Senior Executive Vice President of Strategic Finance and Operations, Martin Jackson. Also on the conference line are the company's Executive Vice President and Chief Financial Officer, Michael Malatesta; and the company's Senior Vice President, Controller and Chief Accounting Officer, Christopher Weigl. Management will give you an overview of the quarter and 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 plans, expectations, strategies, intentions and beliefs.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
