MECHANICSBURG, Pa., March 23 /PRNewswire/ -- Select Medical Corporation (“Select”) today announced results for its fourth quarter and year ended December 31, 2008.
For the fourth quarter ended December 31, 2008, net operating revenues increased 5.6% to $547.1 million compared to $518.0 million for the same quarter, prior year. Income from operations increased 37.9% to $57.5 million compared to $41.7 million for the same quarter, prior year. Net income increased 20.5% to $13.5 million compared to $11.2 million for the same quarter, prior year. Additionally, net income before interest, income taxes, depreciation and amortization, gain on early retirement of debt, stock compensation expense, other expense and minority interest (“Adjusted EBITDA”) for the fourth quarter increased 32.1% to $76.5 million compared to $57.9 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, 2008, net operating revenues increased 8.1% to $2,153.4 million compared to $1,991.7 million for the prior year. Income from operations increased 1.3% to $196.4 million compared to $193.9 million for the prior year. Net income decreased 21.3% to $43.4 million compared to $55.1 million for the prior year. Additionally, Adjusted EBITDA for the year ended December 31, 2008 increased 6.0% to $270.3 million compared to $254.9 million for the prior year.
Specialty Hospitals
At December 31, 2008, Select operated 88 long term acute care hospitals and five acute medical rehabilitation hospitals. This compares to 83 long term acute care hospitals and four acute medical rehabilitation hospitals operated at December 31, 2007. For the fourth quarter of 2008, net operating revenues for all of Select’s hospitals increased 8.7% to $383.7 million compared to $352.9 million for the same quarter, prior year. Total patient days for the fourth quarter of 2008 were 249,626, admissions were 10,286 and net revenue per patient day was $1,509. This compares to 245,665 days, 9,913 admissions and net revenue per patient day of $1,410 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2007 and operated by Select throughout both periods, patient days in the fourth quarter of 2008 were 229,366 and admissions were 9,448, compared to 234,781 days and 9,456 admissions in the same quarter, prior year. Adjusted EBITDA for the segment increased 40.9% to $68.8 million compared to $48.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 17.9% for the fourth quarter of 2008, compared to 13.8% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2007 and operated by Select throughout both periods was 20.9% for the fourth quarter of 2008, compared to 16.3% for the same quarter, prior year.
For the year ended December 31, 2008, net operating revenues for all of Select’s hospitals increased 7.4% to $1,488.4 million compared to $1,386.4 million for the prior year. Total patient days for the year ended December 31, 2008 were 1,005,719, admissions were 41,177 and net revenue per patient day was $1,453. This compares to 987,624 days, 40,008 admissions and net revenue per patient day of $1,378 for the prior year. For the hospitals opened or acquired as of January 1, 2007 and operated by Select throughout both periods, patient days for the year ended December 31, 2008 were 944,367 and admissions were 38,545, compared to 924,506 days and 37,533 admissions in the prior year. Adjusted EBITDA for the segment for the year ended December 31, 2008 increased 8.8% to $236.4 million compared to $217.2 million for the prior year. The Adjusted EBITDA margin for the segment for the year ended December 31, 2008 was 15.9%, compared to 15.7% for the prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2007 and operated by Select throughout both periods was 18.4% for the year ended December 31, 2008, compared to 17.5% for the prior year.
Outpatient Rehabilitation
At December 31, 2008, Select operated 956 outpatient clinics. This compares to 999 outpatient clinics at December 31, 2007. For the fourth quarter of 2008, net operating revenues for the segment decreased 1.0% to $163.4 million compared to $165.1 million for the same quarter, prior year. Adjusted EBITDA for the segment for the fourth quarter increased 12.3% to $17.0 million compared to $15.2 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment for the quarter was 10.4% compared to 9.2% in the same quarter, prior year. Patient visits for the quarter were 1,103,589 compared to 1,145,063 for the same quarter, prior year. Net revenue per visit was $101 for both the fourth quarter of 2008 and for the same quarter, prior year.
For the year ended December 31, 2008, net operating revenues for the segment increased 10.2% to $664.8 million compared to $603.4 million for the prior year. Adjusted EBITDA for the segment for the year ended December 31, 2008 increased 2.4% to $77.3 million compared to $75.4 million for the prior year. The Adjusted EBITDA margin for the segment for the year ended December 31, 2008 was 11.6% compared to 12.5% in the prior year. Patient visits for the year ended December 31, 2008 were 4,533,727 compared to 4,032,197 for the prior year. Net revenue per visit was $102 for the year ended December 31, 2008 compared to $100 for the prior year.
Conference Call
Select Medical Holdings Corporation (“Holdings”), the Parent of Select, has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with the proposed initial public offering of its common stock. Holdings and certain of its stockholders are expected to sell shares of its common stock in the offering. Based on advice of counsel, Select’s regular quarterly earnings conference calls will be suspended while Holdings’ registration statement is under review by the SEC.
Select Medical Corporation is a leading operator of specialty hospitals in the United States. Select operates 88 long term acute care hospitals and five acute medical rehabilitation hospitals in 25 states. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with approximately 956 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: Investor inquiries, Joel Veit of Select Medical Corporation,
+1-717-972-1100
Web site: http://www.selectmedicalcorp.com/
