Q2 2025 Select Medical Holdings Corp Earnings Call Transcript
Key Points
- Select Medical Holdings Corp (SEM) reported that eight of its hospitals were recognized among the nation's best by US News & World Report, highlighting the quality of their rehabilitation services.
- The company successfully executed its development strategy by opening new facilities and expanding existing ones, including a new hospital with UPMC in Central Pennsylvania and additional beds in Florida.
- SEM plans to add 382 rehab beds by the first half of 2027, indicating a strong growth pipeline and expansion in key markets.
- The company repurchased over 5.7 million shares, demonstrating a commitment to returning value to shareholders.
- Revenue grew nearly 5% to $1.3 billion, and earnings per share from continuing operations rose 88% year-over-year, reflecting strong financial performance.
- The Critical Illness Recovery Hospitals division experienced a 1% decline in revenue due to regulatory changes, impacting adjusted EBITDA, which declined 22% year-over-year.
- The company faces ongoing challenges with the LTAC reimbursement system, including a significant reduction in Medicare spend and closures of LTAC hospitals.
- Medicare rate reductions caused a $3 million decrease in revenue for the Outpatient Rehabilitation division during the quarter.
- The high-cost outlier threshold increase continues to pressure the Critical Illness Recovery Hospitals division, affecting margins.
- The company is dealing with headwinds from the 20% transmittal rule, which was implemented without formal rulemaking, impacting financial performance.
Good morning, and thank you for joining us today for Select Medical Holdings Corporation earnings conference call to discuss the second quarter 2025 results and the company's business outlook. Presenting today are the company's Executive Chairman and Co-Founder, Robert Ortenzio; the company's Executive Vice President and Chief Financial Officer; Michael Malatesta. Also on the conference line is the company's Senior Executive Vice President of Strategic Finance and Operations, Martin Jackson. 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 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
| 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
