Select Medical Holdings Corporation Reports First Quarter Results and Cash Dividend Declaration
Select Medical Holdings Corporation, a prominent operator of critical illness recovery hospitals and outpatient rehabilitation clinics, released its financial results for the first quarter ended March 31, 2025. The corporation, traded under NYSE: SEM, revealed an increase in revenue of 2.4%, rising to $1,353.2 million from $1,321.2 million in the same quarter the previous year. This growth highlights Select Medical's resilience in the competitive healthcare market, showcasing its ability to maintain steady revenue streams despite the varying economic conditions affecting the industry.
The income from continuing operations before other income and expenses decreased slightly, from $118.5 million last year to $112.7 million. However, when factoring in the net income from continuing operations, there was a significant increase of 21.5%, reported at $74.7 million compared to $61.5 million in Q1 of the prior year.
Adjusted EBITDA, which is a key indicator of the company's operational performance, stood at $151.4 million, down from $165.8 million the previous year. While the drop in Adjusted EBITDA can be attributed to several factors including increased operating costs and possible labor shortages, it remains a strong figure within the healthcare landscape.
Earnings per share took a favorable turn, improving by 33.3% to reach $0.44 for this quarter, compared to $0.33 in the same period last year. This substantial growth is a testament to the company's strategic initiatives aimed at enhancing profitability and operational efficiency, despite the broader challenges faced by the healthcare sector, including labor shortages and rising operating costs.
Notably, on April 30, 2025, Select Medical's Board of Directors declared a cash dividend of $0.0625 per share. This dividend is set to provide returns to investors, payable around May 29, 2025, to shareholders recorded by May 15. While the company has assured this distribution, future dividends will be subject to the Board's discretion based on several considerations including financial conditions and ongoing operational needs.
Select Medical also announced its stock repurchase program, allowing the company to repurchase up to $1 billion worth of its common stock. In the first quarter, they repurchased 649,804 shares at an approximate cost of $11.4 million. The ongoing stock repurchase efforts underline the company's commitment to returning value to shareholders while maintaining a healthy balance sheet.
As for future outlook, Select Medical anticipates total revenue in the range of $5.3 billion to $5.5 billion for the fiscal year, with Adjusted EBITDA expectations of between $510 million to $530 million. The guidance reflects an optimistic outlook driven by anticipated enhancements in their critical illness recovery hospital and rehabilitation hospital segments, despite external economic pressures.
To discuss these results in detail, Select Medical is hosting a conference call on May 2, 2025, at 9:00 AM ET. This event will provide insights into their operational strategies and expectations going forward. Investors and interested parties are encouraged to participate through a live webcast available on their official website.
Select Medical Holdings Corporation operates a total of 104 critical illness recovery hospitals across 29 states, along with 35 rehabilitation hospitals and over 1,900 outpatient rehabilitation clinics across the United States. These figures highlight the extensive reach of Select Medical, positioning it as a vital player in the healthcare sector. As of March 31, 2025, their presence across 40 states coupled with the diversity of services offered continues to strengthen their market position. Overall, while facing numerous challenges, Select Medical's performance in Q1 2025 signifies its ability to adapt and thrive, laying robust groundwork for future sustained growth.
The income from continuing operations before other income and expenses decreased slightly, from $118.5 million last year to $112.7 million. However, when factoring in the net income from continuing operations, there was a significant increase of 21.5%, reported at $74.7 million compared to $61.5 million in Q1 of the prior year.
Adjusted EBITDA, which is a key indicator of the company's operational performance, stood at $151.4 million, down from $165.8 million the previous year. While the drop in Adjusted EBITDA can be attributed to several factors including increased operating costs and possible labor shortages, it remains a strong figure within the healthcare landscape.
Earnings per share took a favorable turn, improving by 33.3% to reach $0.44 for this quarter, compared to $0.33 in the same period last year. This substantial growth is a testament to the company's strategic initiatives aimed at enhancing profitability and operational efficiency, despite the broader challenges faced by the healthcare sector, including labor shortages and rising operating costs.
Notably, on April 30, 2025, Select Medical's Board of Directors declared a cash dividend of $0.0625 per share. This dividend is set to provide returns to investors, payable around May 29, 2025, to shareholders recorded by May 15. While the company has assured this distribution, future dividends will be subject to the Board's discretion based on several considerations including financial conditions and ongoing operational needs.
Select Medical also announced its stock repurchase program, allowing the company to repurchase up to $1 billion worth of its common stock. In the first quarter, they repurchased 649,804 shares at an approximate cost of $11.4 million. The ongoing stock repurchase efforts underline the company's commitment to returning value to shareholders while maintaining a healthy balance sheet.
As for future outlook, Select Medical anticipates total revenue in the range of $5.3 billion to $5.5 billion for the fiscal year, with Adjusted EBITDA expectations of between $510 million to $530 million. The guidance reflects an optimistic outlook driven by anticipated enhancements in their critical illness recovery hospital and rehabilitation hospital segments, despite external economic pressures.
To discuss these results in detail, Select Medical is hosting a conference call on May 2, 2025, at 9:00 AM ET. This event will provide insights into their operational strategies and expectations going forward. Investors and interested parties are encouraged to participate through a live webcast available on their official website.
Select Medical Holdings Corporation operates a total of 104 critical illness recovery hospitals across 29 states, along with 35 rehabilitation hospitals and over 1,900 outpatient rehabilitation clinics across the United States. These figures highlight the extensive reach of Select Medical, positioning it as a vital player in the healthcare sector. As of March 31, 2025, their presence across 40 states coupled with the diversity of services offered continues to strengthen their market position. Overall, while facing numerous challenges, Select Medical's performance in Q1 2025 signifies its ability to adapt and thrive, laying robust groundwork for future sustained growth.
Topics Health）
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