Q1 2026 Select Medical Holdings Corp Earnings Call Transcript
Key Points
- Select Medical Holdings Corp (SEM) announced a take-private transaction, offering unaffiliated shareholders $16.50 per share in cash, which was unanimously approved by the Board.
- The company expanded its Inpatient Rehabilitation business by adding 166 beds across three newly opened hospitals, with plans to add 275 more beds by the end of 2027.
- Revenue growth was observed across all three operating divisions, with total revenue increasing by 5% compared to the prior year period.
- The Inpatient Rehab Hospital division saw a 14% increase in revenue year over year, with adjusted EBITDA increasing by 15%.
- The Outpatient Rehabilitation division delivered revenue growth of more than 4%, driven by over 4% growth in patient visits.
- Adjusted EBITDA declined by 6.5% to $141.6 million compared to the prior year period.
- Earnings per common share decreased to $0.35 from $0.44 in the prior year.
- The Critical Illness Recovery Hospital division experienced a 15% decline in adjusted EBITDA, resulting in a lower EBITDA margin compared to last year.
- The Outpatient Rehabilitation division's adjusted EBITDA margin decreased to 6.8% from 7.9% in the prior year.
- An increase in denials from Medicare Advantage was noted, particularly affecting the Long-Term Acute Care hospitals and Inpatient Rehab.
Good morning, and thank you for joining us today for Select Medical Holdings Corporation's earnings conference call to discuss the first-quarter 2026 results and the company's business outlook. Presenting today are the company's Chief Executive Officer, Thomas Mullin; and the company's Executive Vice President and Chief Financial Officer, Michael Malatesta. Also on the conference line is the company's Senior Vice President, Controller, and Chief Accounting Officer, Christopher Weigl. 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
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