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Dec 31, 2021

Select Medical Q4 2021 Earnings Report

Announced results for its fourth quarter and year ended December 31, 2021 and the declaration of a cash dividend.

Key Takeaways

Select Medical Holdings Corporation reported a 6.8% increase in revenue to $1,559.8 million for the fourth quarter ended December 31, 2021, compared to $1,460.5 million for the same quarter the prior year. Net income was $66.3 million, compared to $102.2 million for the same quarter the prior year. Earnings per common share was $0.37, compared to $0.57 for the same quarter the prior year.

Revenue increased by 6.8% to $1,559.8 million compared to the same quarter last year.

Income from operations was $77.5 million, including $8.0 million from the Provider Relief Fund.

Net income was $66.3 million, which included a pre-tax gain on sale of businesses of $2.2 million.

Earnings per common share was $0.37, compared to $0.57 for the same quarter last year.

Total Revenue
$1.56B
Previous year: $1.46B
+6.8%
EPS
$0.37
Previous year: $0.57
-35.1%
Gross Profit
$157M
Previous year: $214M
-26.5%
Cash and Equivalents
$74.3M
Previous year: $577M
-87.1%
Total Assets
$7.36B
Previous year: $7.66B
-3.9%

Select Medical

Select Medical

Select Medical Revenue by Segment

Forward Guidance

Select Medical expects revenue to be in the range of $6.25 billion to $6.40 billion for the full year of 2022. Select Medical is also reaffirming its previously issued three-year compound annual growth rate target for revenue only, which is expected to be in the range of 4% to 6% for 2021 through 2023.

Positive Outlook

  • Revenue expected to be in the range of $6.25B to $6.40B for 2022.
  • Reaffirming three-year compound annual growth rate target for revenue of 4% to 6% for 2021 through 2023.

Challenges Ahead

  • Uncertainties due to significantly increased labor costs resulting from higher than expected use of agency clinical staff.
  • Select Medical intends to readdress its business outlook and target compound annual growth rates for Adjusted EBITDA and earnings per common share when the labor climate stabilizes.

Revenue & Expenses

Visualization of income flow from segment revenue to net income