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Select Medical Holdings Corporation Reports Fourth Quarter and Full Year 2024 Financial Outcomes

On February 20, 2025, Select Medical Holdings Corporation released its financial results for the fourth quarter and year ending December 31, 2024. The report highlighted notable achievements, including a substantial revenue increase alongside a revised business outlook for 2025. Select Medical, renowned for operating critical illness recovery hospitals and outpatient rehab clinics, has shown resilience in its operations amidst ongoing industry challenges.

Financial Highlights for Q4 2024

The company reported a revenue surge of 7.8%, amounting to approximately $1.31 billion, compared to $1.21 billion in the same quarter for the previous year. However, income from continuing operations before other income and expenses was reported at $21.1 million, a significant decrease from $64.9 million year-over-year. This downturn was influenced by a one-time acceleration of stock compensation expenses totaling $45.9 million.

Select Medical also recorded a loss of $10.5 million from continuing operations after tax in Q4 of 2024, contrasting with a net income of $30.3 million in the previous year.

Annual Financial Performance

For the entire year, revenue increased by 7.5%, reaching an impressive $5.19 billion in 2024. Adjusted EBITDA also saw growth, climbing 14.4% to $510.4 million, indicating robust operational efficiency. Notably, earnings per common share rose by 10.9% to $0.51.

Business Segment Performance

• - Critical Illness Recovery Hospitals: Q4 revenue improved to $600.4 million, with an Adjusted EBITDA up 10.0% to $63.1 million.
• - Rehabilitation Hospitals: Revenue for this segment climbed to $294.4 million in Q4, marking a 13.1% increase, though Adjusted EBITDA slightly decreased to $62.3 million.
• - Outpatient Rehabilitation: The revenue saw a 7.2% increase to $319.6 million, accompanied by a notable 18.2% rise in Adjusted EBITDA to $26.6 million.

Cash Dividend and Stock Repurchase Program

In line with its financial strategy, the company's board of directors declared a cash dividend of $0.0625 per share payable in March 2025. Select Medical's stock buyback program, designed to repurchase up to $1 billion in shares, remains active until 2025, although no shares were repurchased in 2024.

Financing Actions

Select Medical also undertook several financial maneuvers, including an amendment to its credit agreement and issuance of senior notes. These actions are aimed at strengthening its liquidity and facilitating debt management.

2025 Outlook

Looking ahead, Select Medical expects its 2025 revenue to fall within the range of $5.4 billion to $5.6 billion, with adjusted EBITDA estimates set between $520 million and $540 million. This ambitious outlook reflects the company's commitment to growth amidst potential economic and market challenges.

Conclusion

The latest financial releases from Select Medical Holdings Corporation offer a comprehensive overview of its performance against a backdrop of growth and strategic maneuvering. With an optimistic business outlook, the company aims to navigate the ongoing challenges of the healthcare landscape while continuing to deliver value to its stakeholders. Investors and stakeholders will eagerly await Select Medical's conference call on February 21, 2025, for further insights into the company's strategic direction.