Select Medical Q2 2021 Earnings Report
Key Takeaways
Select Medical Holdings Corporation announced strong second-quarter results with a 26.9% increase in revenue to $1,564.0 million and a 190.7% increase in net income to $196.2 million compared to the same quarter last year. Earnings per share increased to $1.22, and adjusted EBITDA rose by 91.3% to $342.0 million.
Revenue increased by 26.9% to $1,564.0 million compared to the same quarter last year.
Net income increased by 190.7% to $196.2 million compared to the same quarter last year.
Earnings per share increased to $1.22 compared to $0.39 for the same quarter last year.
Adjusted EBITDA increased by 91.3% to $342.0 million compared to the same quarter last year.
Select Medical
Select Medical
Select Medical Revenue by Segment
Forward Guidance
Select Medical is updating its business outlook for 2021 following the reporting of its second quarter 2021 results. Select Medical now expects revenue for the full year of 2021 to be in the range of $5.85 billion to $6.05 billion and Adjusted EBITDA for the full year of 2021 to be in the range of $970.0 million to $1.0 billion. Select Medical now expects fully diluted earnings per common share for the full year of 2021 to be in the range of $2.91 to $3.08.
Positive Outlook
- Revenue for the full year of 2021 is expected to be in the range of $5.85 billion to $6.05 billion.
- Adjusted EBITDA for the full year of 2021 is expected to be in the range of $970.0 million to $1.0 billion.
- Fully diluted earnings per common share for the full year of 2021 are expected to be in the range of $2.91 to $3.08.
- Compound annual growth for revenue is expected to be in the range of 4% to 6% from 2021 through 2023.
- Compound annual growth for Adjusted EBITDA is expected to be in the range of 7% to 8% from 2021 through 2023.
Challenges Ahead
- The unpredictable effects of the COVID-19 pandemic, including the duration and extent of disruption on Select Medical’s operations, creates uncertainties about Select Medical’s future operating results and financial condition.
- Increased labor costs, including increased contracted labor usage, as well as additional costs resulting from the purchase of personal protective equipment.
- Certain of Select Medical’s rehabilitation hospitals experienced temporary declines in patient volume, beginning in March 2020, in areas more significantly impacted by the spread of COVID-19.
- Select Medical’s outpatient rehabilitation clinics began experiencing significantly less patient visit volume due to declines in patient referrals from physicians, a reduction in workers’ compensation injury visits resulting from the temporary closure of businesses, and the suspension of elective surgeries which would have required outpatient rehabilitation services.
- Select Medical’s Concentra centers experienced similar declines in patient visit volume due to businesses furloughing their workforce and temporarily ceasing or significantly reducing their operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income