MECHANICSBURG, Pa., March 24 /PRNewswire/ -- Select Medical Corporation (“Select”) today announced results for its fourth quarter and year ended December 31, 2007.
For the fourth quarter ended December 31, 2007, net operating revenues increased 16.2% to $518.0 million compared to $445.7 million for the same quarter, prior year. Income from operations decreased 29.5% to $41.7 million compared to $59.1 million for the same quarter, prior year. Net income decreased 65.8% to $11.2 million compared to $32.8 million for the same quarter, prior year. Additionally, net income before interest, income taxes, depreciation and amortization, income from discontinued operations, stock compensation expense, other income/expense and minority interest (“Adjusted EBITDA”) for the fourth quarter decreased 19.4% to $57.9 million compared to $71.8 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.
For the year ended December 31, 2007, net operating revenues increased 7.6% to $1,991.7 million compared to $1,851.5 million for the prior year. Income from operations decreased 24.8% to $193.9 million compared to $257.9 million for the prior year. Net income decreased 53.4% to $55.1 million compared to $118.2 million for the prior year. Additionally, Adjusted EBITDA for the year ended December 31, 2007 decreased 17.3% to $254.9 million compared to $308.3 million for the prior year.
Specialty Hospitals
At December 31, 2007, Select operated 83 long-term acute care hospitals and four acute medical rehabilitation hospitals. This compares to 92 long-term acute care hospitals and four acute medical rehabilitation hospitals operated at December 31, 2006. For the fourth quarter of 2007, net operating revenues for all of Select’s hospitals increased 7.3% to $352.9 million compared to $328.8 million for the same quarter, prior year. Total patient days for the fourth quarter of 2007 were 245,665, admissions were 9,913 and net revenue per patient day was $1,410. This compares to 235,520 days, 9,546 admissions and net revenue per patient day of $1,366 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods, patient days in the fourth quarter of 2007 were 233,761 and admissions were 9,448, compared to 219,162 days and 8,940 admissions in the same quarter, prior year. Adjusted EBITDA for the segment decreased 25.0% to $48.8 million compared to $65.1 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 13.8% for the fourth quarter of 2007, compared to 19.8% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods was 16.1% for the fourth quarter of 2007, compared to 21.4% for the same quarter, prior year.
For the year ended December 31, 2007, net operating revenues for all of Select’s hospitals increased 0.6% to $1,386.4 million compared to $1,378.5 million for the prior year. Total patient days for the year ended December 31, 2007 were 987,624, admissions were 40,008 and net revenue per patient day was $1,378. This compares to 969,590 days, 39,668 admissions and net revenue per patient day of $1,392 for the prior year. For the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods, patient days for the year ended December 31, 2007 were 927,405 and admissions were 37,710, compared to 892,130 days and 36,721 admissions in the prior year. Adjusted EBITDA for the segment for the year ended December 31, 2007 decreased 23.3% to $217.2 million compared to $283.3 million for the prior year. The Adjusted EBITDA margin for the segment for the year ended December 31, 2007 was 15.7%, compared to 20.5% for the prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods was 17.7% for the year ended December 31, 2007, compared to 21.8% for the prior year.
Outpatient Rehabilitation
At December 31, 2007, Select operated 999 outpatient clinics. This compares to 544 outpatient clinics at December 31, 2006. The increase in the number of clinics is primarily due to Select’s acquisition, in the second quarter of 2007, of substantially all of the outpatient rehabilitation division of HealthSouth Corporation, as described below. For the fourth quarter of 2007, net operating revenues increased 41.8% to $165.1 million compared to $116.4 million for the same quarter, prior year. Adjusted EBITDA for the fourth quarter decreased 4.6% to $15.2 million compared to $15.9 million for the same quarter, prior year. The Adjusted EBITDA margin for the quarter was 9.2% compared to 13.7% in the same quarter, prior year. Patient visits for the quarter were 1,145,063 compared to 711,163 for the same quarter, prior year. Net revenue per visit was $101 for the fourth quarter of 2007 compared to $98 for the same quarter, prior year.
For the year ended December 31, 2007, net operating revenues increased 28.3% to $603.4 million compared to $470.3 million for the prior year. Adjusted EBITDA for the year ended December 31, 2007 increased 16.4% to $75.4 million compared to $64.8 million for the prior year. The Adjusted EBITDA margin for the year ended December 31, 2007 was 12.5% compared to 13.8% in the prior year. Patient visits for the year ended December 31, 2007 were 4,032,197 compared to 2,972,243 for the prior year. Net revenue per visit was $100 for the year ended December 31, 2007 compared to $94 for the prior year.
Acquisition of HealthSouth Corporation’s Outpatient Rehabilitation Division
On May 1, 2007, Select completed the acquisition of substantially all of the outpatient rehabilitation division of HealthSouth Corporation. At the closing, Select acquired 540 outpatient rehabilitation clinics. The closing of the purchase of 29 additional outpatient rehabilitation clinics that was deferred pending certain state regulatory approvals was completed as of October 31, 2007 and resulted in the release of an additional $23.4 million of the purchase price. The aggregate purchase price of $245.0 million was reduced by approximately $7.0 million at the closing for assumed indebtedness and other matters.
Conference Call
Select will host a conference call regarding its fourth quarter results on Wednesday, March 26, 2008, at 11:00 am EDT. The domestic dial in number for the call is 1-888-452-0455. The international dial in number is 1-210-839-8503. The passcode for call is 6165104.
Select Medical Corporation is a leading operator of specialty hospitals in the United States. Select operates 88 long-term acute care hospitals and four acute medical rehabilitation hospitals in 25 states. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with approximately 1,000 locations in 37 states and the District of Columbia. Select also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites. Information about Select is available at http://www.selectmedicalcorp.com/
Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements due to factors including the following:
CONTACT: Investors, Joel Veit of Select Medical Corporation,
+1-717-972-1100
Web site: http://www.selectmedicalcorp.com//
