NYSE$SEM

Select Medical Holdings Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Select Medical's financial performance significantly improved, driven by strong revenue growth and increased profitability across all segments.

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.

Headline financials

Total Revenue

$1.56B

Previous: $1.23B+26.9%
EPS (adj)

$1.22

Previous: $0.38+221.1%
Free Cash Flow

$165M

Previous: $51.7M+219.3%
Net Income

$165M

Previous: $51.7M+219.3%
Operating Income

$284M

Previous: $120M+137.6%
Gross Profit

-$1.29B

Previous: -$1.08B-19.1%
Cash & Equivalents

$803M

Previous: $510M+57.6%
Total Assets

$7.96B

Previous: $7.47B+6.5%
Stock-Based Comp

$7.1M

Previous: $6.96M+2.0%

Revenue & EPS history

Select Medical · Revenue · Quarterly

$1.56B

Q2 2021+26.9%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Select Medical · $1.04B total across 3 segments · Q2 2021

  • Critical Illness Recovery
    $544M+4.7%
  • Outpatient Rehabilitation
    $280M+67.8%
  • Rehabilitation Hospital
    $213M+26.1%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.3%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+18.8%

Q3 2018

Best reaction

-22.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+0.1%+0.7%
Q4 2025-6.5%-7.3%+1.1%
Q3 2025-5.8%-5.1%+9.1%
Q1 2025-22.2%-17.7%-16.2%
Q4 2024-7.2%-2.9%-13.1%
Q3 2024+9.4%+13.3%+19.3%
Q2 2024-14.0%-17.2%-9.3%
Q1 2024+12.3%+17.0%+23.5%
Q4 2023+6.7%+4.6%+7.7%
Q3 2023-1.2%-2.7%+3.9%
Q2 2023-1.3%-2.5%-4.3%
Q1 2023+4.8%-0.8%-2.8%
Q4 2022-7.8%-9.1%-17.6%
Q3 2022-6.5%-10.9%+0.9%
Q2 2022-4.1%-11.1%-14.7%
Q1 2022+0.9%-4.2%+10.6%
Q4 2021+1.1%+2.2%+3.5%
Q3 2021+2.4%-0.9%-18.4%
Q2 2021-3.3%-6.9%-7.7%
Q1 2021-2.5%-3.1%+4.9%
Q4 2020+10.5%+16.9%+20.5%
Q3 2020-1.7%+8.5%+15.4%
Q2 2020+13.1%+14.7%+21.2%
Q1 2020-15.3%-12.9%-6.3%
Q4 2019+8.9%-0.1%-55.6%
Q3 2019+5.7%+10.6%+22.9%
Q2 2019-5.8%-5.8%-3.1%
Q1 2019+1.7%+3.0%-1.3%
Q4 2018+0.1%-4.8%-10.1%
Q3 2018+18.8%+21.2%+16.9%
Q2 2018-5.0%-7.5%-6.6%
Q1 2018-4.4%-3.5%-2.9%
Q4 2017+11.2%+11.4%+7.8%
Q3 2017-7.8%-9.4%-6.5%
Q2 2017+8.6%+12.7%+18.7%
Q1 2017+5.9%+1.1%+3.7%
Q4 2016+9.6%+11.6%-3.1%
Q3 2016-8.2%-6.1%-1.2%
Q2 2016+10.6%+6.3%+9.3%
Q1 2016-4.5%
Q4 2015+10.9%
Q3 2015+5.0%
Q2 2015+0.1%
Q1 2015+0.0%
Q4 2014-5.2%
Q3 2014+11.3%
Q2 2014-12.4%
Q1 2014+0.5%
Q4 2013+1.7%
Q3 2013+1.1%
Q2 2013+1.3%
Q1 2013-2.5%
Q4 2012+4.0%
Q3 2012+10.0%
Q2 2012+9.1%
Q1 2011-3.2%
Q1 2012+1.1%
Q4 2009-0.4%
Q4 2011-0.4%
Q3 2010-2.4%
Q3 2011-2.4%
Q4 2010-15.8%
Q2 2010-15.8%
Q2 2011-15.8%
Q1 2010-7.2%

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