Select Medical Holdings Corporation announced results for its first quarter ended March 31, 2018.
MECHANICSBURG, Pa., May 3, 2018 /PRNewswire/ -- Select Medical Holdings Corporation ("Select Medical") (NYSE: SEM) today announced results for its first quarter ended March 31, 2018.
For the first quarter ended March 31, 2018, net operating revenues increased 14.8% to $1,253.0 million, compared to $1,091.5 million for the same quarter, prior year. Income from operations increased 18.3% to $108.6 million for the first quarter ended March 31, 2018, compared to $91.8 million for the same quarter, prior year. Net income increased 87.5% to $44.0 million for the first quarter ended March 31, 2018, compared to $23.5 million for the same quarter, prior year. Net income for the first quarter ended March 31, 2018 included a pre-tax loss on early retirement of debt of $10.3 million. Net income for the first quarter ended March 31, 2017 included a pre-tax loss on early retirement of debt of $19.7 million. Adjusted EBITDA increased 17.5% to $163.2 million for the first quarter ended March 31, 2018, compared to $138.9 million for the same quarter, prior year. Income per common share increased to $0.25 on a fully diluted basis for the first quarter ended March 31, 2018, compared to $0.12 for the same quarter, prior year. Adjusted income per common share was $0.29 per diluted share for the first quarter ended March 31, 2018, compared to $0.21 for the same quarter, prior year. Adjusted income per common share excludes the loss on early retirement of debt and U.S. HealthWorks acquisition costs and their related tax effects for the first quarter ended March 31, 2018. Adjusted income per common share excludes the loss on early retirement of debt and its related tax effects for the first quarter ended March 31, 2017. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table V of this release. A reconciliation of income per common share to adjusted income per common share is presented in table VI of this release.
Company Overview
Select Medical began operations in 1997 and has grown to be one of the largest operators of long term acute care hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States based on the number of facilities. As of March 31, 2018, Select Medical operated 99 long term acute care hospitals in 27 states, 24 rehabilitation hospitals in 10 states, and 1,617 outpatient rehabilitation clinics in 37 states and the District of Columbia. Select Medical's joint venture subsidiary Concentra operated 531 occupational health centers in 41 states. Concentra also provides contract services at employer worksites and Department of Veterans Affairs community-based outpatient clinics. At March 31, 2018, Select Medical had operations in 47 states and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.
Long Term Acute Care Segment
For the first quarter ended March 31, 2018, net operating revenues for the long term acute care segment increased 4.4% to $464.7 million, compared to $445.1 million for the same quarter, prior year. Adjusted EBITDA for the long term acute care segment increased 0.9% to $73.0 million for the first quarter ended March 31, 2018, compared to $72.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the long term acute care segment was 15.7% for the first quarter ended March 31, 2018, compared to 16.3% for the same quarter, prior year. The Adjusted EBITDA results for the long term acute care segment include start-up losses of approximately $0.4 million for the first quarter ended March 31, 2018. The long term acute care segment did not incur start-up losses for the first quarter ended March 31, 2017. Certain long term acute care key statistics for both the first quarters ended March 31, 2018 and 2017 are presented in table IV of this release.
Inpatient Rehabilitation Segment
For the first quarter ended March 31, 2018, net operating revenues for the inpatient rehabilitation segment increased 20.7% to $174.8 million, compared to $144.8 million for the same quarter, prior year. Adjusted EBITDA for the inpatient rehabilitation segment increased 64.0% to $26.8 million for the first quarter ended March 31, 2018, compared to $16.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the inpatient rehabilitation segment was 15.3% for the first quarter ended March 31, 2018, compared to 11.3% for the same quarter, prior year. The Adjusted EBITDA results for the inpatient rehabilitation segment include start-up losses of approximately $0.8 million for the first quarter ended March 31, 2018, compared to approximately $2.0 million for the same quarter, prior year. Certain inpatient rehabilitation key statistics for both the first quarters ended March 31, 2018 and 2017 are presented in table IV of this release.
Outpatient Rehabilitation Segment
For the first quarter ended March 31, 2018, net operating revenues for the outpatient rehabilitation segment increased 2.8% to $257.4 million, compared to $250.4 million for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $30.5 million for the first quarter ended March 31, 2018, compared to $31.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 11.9% for the first quarter ended March 31, 2018, compared to 12.5% for the same quarter, prior year. Certain outpatient rehabilitation key statistics for both the first quarters ended March 31, 2018 and 2017 are presented in table IV of this release.
Concentra Segment
For the first quarter ended March 31, 2018, net operating revenues for the Concentra segment increased 42.1% to $356.1 million, compared to $250.6 million for the same quarter, prior year. Adjusted EBITDA for the Concentra segment increased 35.7% to $57.8 million for the first quarter ended March 31, 2018, compared to $42.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the Concentra segment was 16.2% for the first quarter ended March 31, 2018, compared to 17.0% for the same quarter, prior year. Certain Concentra key statistics for both the first quarters ended March 31, 2018 and 2017 are presented in table IV of this release.
On February 1, 2018, Concentra acquired all of the issued and outstanding shares of stock of U.S. HealthWorks, Inc. ("U.S. HealthWorks") an occupational medicine and urgent care service provider which operates approximately 240 centers and onsite clinics. The results for the quarter ended March 31, 2018 include the operations of U.S. HealthWorks effective February 1, 2018. For the period February 1, 2018 through March 31, 2018, U.S. HealthWorks contributed net operating revenues of $89.9 million.
Stock Repurchase Program
Select Medical did not repurchase shares during the first quarter ended March 31, 2018 under its authorized $500.0 million stock repurchase program. The program has been extended until December 31, 2018, and will remain in effect until then, unless further extended or earlier terminated by the board of directors. Since the inception of the program through March 31, 2018, Select Medical has repurchased 35,924,128 shares at a cost of approximately $314.7 million, or $8.76 per share, which includes transaction costs.
Amendment to Senior Secured Credit Facilities
On March 22, 2018, Select Medical entered into an amendment to the senior secured credit agreement dated March 6, 2017. The amendment (i) decreases the applicable interest rate on the term loans from the Adjusted LIBO Rate (as defined in the credit agreement and subject to an Adjusted LIBO floor of 1.00%) plus 3.50% to the Adjusted LIBO Rate plus a percentage ranging from 2.50% to 2.75%, or from the Alternative Base Rate (as defined in the credit agreement and subject to an Alternate Base Rate floor of 2.00%) plus 2.50% to the Alternative Base Rate plus a percentage ranging from 1.50% to 1.75%, in each case based on Select Medical's total net leverage ratio (as defined in the credit agreement); (ii) decreases the applicable interest rate on the loans outstanding under the revolving facility from the Adjusted LIBO Rate plus a percentage ranging from 3.00% to 3.25% to the Adjusted LIBO Rate plus a percentage ranging from 2.50% to 2.75%, or from the Alternative Base Rate plus a percentage ranging from 2.00% to 2.25% to the Alternative Base Rate plus a percentage ranging from 1.50% to 1.75%, in each case based on Select Medical's total net leverage ratio; (iii) extends the maturity date for the term loans from March 6, 2024 to March 6, 2025; and (iv) makes certain other technical amendments to the credit agreement as set forth therein.
Business Outlook
Select Medical reaffirms its 2018 business outlook, provided in its January 8, 2018 press release, for net operating revenues and Adjusted EBITDA. Select Medical continues to expect consolidated net operating revenues for the full year 2018 to be in the range of $5.0 billion to $5.2 billion. Select Medical continues to expect Adjusted EBITDA for the full year 2018 to be in the range of $630.0 million to $660.0 million. Select Medical is adjusting its 2018 business outlook for fully diluted income per common share to include the first quarter 2018 loss on early retirement of debt and U.S. HealthWorks acquisition costs and their related tax effects. Select Medical now expects fully diluted income per common share for the full year 2018 to be in the range of $0.93 to $1.08. Select Medical expects adjusted income per common share to be in the range of $0.97 to $1.12. Adjusted income per common share excludes the loss on early retirement of debt and U.S. HealthWorks acquisition costs and their related tax effects.
Conference Call
Select Medical will host a conference call regarding its first quarter results, as well as its business outlook, on Friday, May 4, 2018, at 9:00am ET. The domestic dial in number for the call is 1-866-440-2669. The international dial in number is 1-409-220-9844. The conference ID for the call is 2793449. The conference call will be webcast simultaneously and can be accessed at Select Medical Holdings Corporation's website www.selectmedicalholdings.com.
For those unable to participate in the conference call, a replay will be available until 11:59pm ET, March 11, 2018. The replay number is 1-855-859-2056 (domestic) or 1-404-537-3406 (international). The passcode for the replay will be 2793449. The replay can also be accessed at Select Medical Holdings Corporation's website, www.selectmedicalholdings.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:
- changes in government reimbursement for our services and/or new payment policies (including, for example, the expiration of the moratorium limiting the full application of the 25 Percent Rule that would reduce our Medicare payments for those patients admitted to a long term acute care hospital from a referring hospital in excess of an applicable percentage admissions threshold) may result in a reduction in net operating revenues, an increase in costs, and a reduction in profitability;
- the failure of our long term acute care hospitals or inpatient rehabilitation facilities to maintain their Medicare certifications may cause our net operating revenues and profitability to decline;
- the failure of our long term acute care hospitals and inpatient rehabilitation facilities operated as "hospitals within hospitals" to qualify as hospitals separate from their host hospitals may cause our net operating revenues and profitability to decline;
- a government investigation or assertion that we have violated applicable regulations may result in sanctions or reputational harm and increased costs;
- acquisitions or joint ventures may prove difficult or unsuccessful, use significant resources or expose us to unforeseen liabilities;
- our plans and expectations related to the acquisition of U.S. HealthWorks by Concentra and our ability to realize anticipated synergies;
- private third-party payors for our services may adopt payment policies that could limit our future net operating revenues and profitability;
- the failure to maintain established relationships with the physicians in the areas we serve could reduce our net operating revenues and profitability;
- shortages in qualified nurses, therapists, physicians, or other licensed providers could increase our operating costs significantly or limit our ability to staff our facilities;
- competition may limit our ability to grow and result in a decrease in our net operating revenues and profitability;
- the loss of key members of our management team could significantly disrupt our operations;
- the effect of claims asserted against us could subject us to substantial uninsured liabilities;
- a security breach of our or our third-party vendors' information technology systems may subject us to potential legal and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 or the Health Information Technology for Economic and Clinical Health Act; and
- other factors discussed from time to time in our filings with the Securities and Exchange Commission (the "SEC"), including factors discussed under the heading "Risk Factors" of the quarterly reports on Form 10-Q and of the annual report on Form 10-K for the year ended December 31, 2017.
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results or performance.
Investor inquiries:
Joel T. Veit
Senior Vice President and Treasurer
717-972-1100
ir@selectmedical.com
SOURCE: Select Medical Holdings Corporation
I. Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 2017 and 2018
(In thousands, except per share amounts, unaudited)
2017(1) 2018 % Change
------ ---- --------
Net operating revenues $1,091,517 $1,252,964 14.8%
Costs and expenses:
Cost of services 929,138 1,065,813 14.7
General and administrative 28,075 31,782 13.2
Depreciation and amortization 42,539 46,771 9.9
------ ------ ---
Income from operations 91,765 108,598 18.3
Loss on early retirement of debt (19,719) (10,255) N/M
Equity in earnings of unconsolidated
subsidiaries 5,521 4,697 (14.9)
Non-operating gain (loss) (49) 399 N/M
Interest expense (40,853) (47,163) 15.4
------- -------
Income before income taxes 36,665 56,276 53.5
Income tax expense 13,202 12,294 (6.9)
------ ------
Net income 23,463 43,982 87.5
Less: Net income attributable to non-
controlling interests 7,593 10,243 34.9
----- ------
Net income attributable to Select
Medical $15,870 $33,739 112.6%
======= =======
Weighted average shares
outstanding(2):
Basic 128,464 129,691
Diluted 128,628 129,816
Income per common share(2):
Basic $0.12 $0.25
Diluted $0.12 $0.25
_______________________________________________________________________________
(1) The financial results for the first
quarter ended March 31, 2017 were
retrospectively conformed to reflect
the adoption of Topic 606, Revenue
from Contracts with Customers.
(2) Under the two-class method for
calculating income per common share,
unvested restricted stock is a
separate, participating class.
Income per common share and weighted
average common shares outstanding
exclude amounts attributed to the
unvested restricted class of
stockholders. Net income allocated
to the unvested restricted
stockholders was $1.1 million and
$0.5 million for the three months
ended March 31, 2018 and 2017,
respectively. Unvested restricted
weighted average shares were 4,416
thousand and 4,242 thousand for the
three months ended March 31, 2018
and 2017, respectively.
N/M = Not Meaningful
II.
Condensed
Consolidated
Balance
Sheets
(In
thousands,
unaudited)
December 31, 2017 March 31, 2018
----------------- --------------
Assets
Cash $122,549 $119,683
Accounts
receivable 691,732 806,391
Other
current
assets 106,545 115,267
Total
Current
Assets 920,826 1,041,341
Property
and
equipment,
net 912,591 973,483
Goodwill 2,782,812 3,318,611
Identifiable
intangible
assets,
net 326,519 424,647
Other
assets 184,418 210,561
Total
Assets $5,127,166 $5,968,643
========== ==========
Liabilities
and
Equity
Payables
and
accruals $583,216 $603,232
Current
portion
of long-
term
debt and
notes
payable 22,187 22,499
Total
Current
Liabilities 605,403 625,731
Long-
term
debt,
net of
current
portion 2,677,715 3,478,021
Non-
current
deferred
tax
liability 124,917 125,020
Other
non-
current
liabilities 145,709 167,120
Total
Liabilities 3,553,744 4,395,892
Redeemable
non-
controlling
interests 640,818 607,474
Total
equity 932,604 965,277
------- -------
Total
Liabilities
and
Equity $5,127,166 $5,968,643
========== ==========
III. Condensed
Consolidated
Statements of Cash
Flows
For the Three Months
Ended March 31, 2017
and 2018
(In thousands,
unaudited)
2017 2018
---- ----
Operating activities
Net income $23,463 $43,982
Adjustments to
reconcile net income
to net cash provided
by (used in) operating
activities:
Distributions from
unconsolidated
subsidiaries 4,911 1,364
Depreciation and
amortization 42,539 46,771
Provision for bad debts 781 85
Equity in earnings of
unconsolidated
subsidiaries (5,521) (4,697)
Loss on extinguishment
of debt 6,527 412
Gain on sale of assets
and businesses (4,609) (513)
Stock compensation
expense 4,586 4,927
Amortization of debt
discount, premium and
issuance costs 3,422 3,136
Deferred income taxes (3,425) 78
Changes in operating
assets and
liabilities, net of
effects of business
combinations:
Accounts receivable (118,269) (45,811)
Other current assets (7,621) (8,945)
Other assets (48) 16,633
Accounts payable and
accrued expenses (18,017) (18,533)
Income taxes 15,420 11,838
------ ------
Net cash provided by
(used in) operating
activities (55,861) 50,727
------- ------
Investing activities
Business combinations,
net of cash acquired (9,566) (515,359)
Purchases of property
and equipment (50,653) (39,617)
Investment in
businesses (500) (1,754)
Proceeds from sale of
assets and businesses 19,512 691
------ ---
Net cash used in
investing activities (41,207) (556,039)
------- --------
Financing activities
Borrowings on revolving
facilities 530,000 165,000
Payments on revolving
facilities (415,000) (150,000)
Proceeds from term
loans 1,139,822 779,904
Payments on term loans (1,170,817) (2,875)
Revolving facility debt
issuance costs (3,887) (1,333)
Borrowings of other
debt 6,571 11,600
Principal payments on
other debt (5,275) (5,909)
Repurchase of common
stock (156) (122)
Proceeds from exercise
of stock options 617 738
Decrease in overdrafts (17,062) (7,916)
Proceeds from issuance
of non-controlling
interests 2,094 -
Distributions to non-
controlling interests (3,657) (286,641)
------ --------
Net cash provided by
financing activities 63,250 502,446
------ -------
Net decrease in cash
and cash equivalents (33,818) (2,866)
Cash and cash
equivalents at
beginning of period 99,029 122,549
------ -------
Cash and cash
equivalents at end of
period $65,211 $119,683
======= ========
Supplemental
Information
Cash paid for interest $38,565 $35,233
Cash paid for taxes $1,207 $376
Non-cash equity
exchange for
acquisition of U.S.
HealthWorks $ - $238,000
IV. Key Statistics
For the Three Months Ended March 31, 2017 and 2018
(unaudited)
2017(e) 2018 % Change
------ ---- --------
Long Term Acute Care
Number of hospitals - end of period (a) 102 99
Net operating revenues (,000) $445,123 $464,676 4.4%
Number of patient days (b) 255,097 265,840 4.2%
Number of admissions (b) 9,309 9,833 5.6%
Net revenue per patient day (b)(c) $1,731 $1,730 (0.1)%
Adjusted EBITDA (,000) $72,337 $72,972 0.9%
Adjusted EBITDA margin 16.3% 15.7%
Inpatient Rehabilitation
Number of hospitals - end of period (a) 20 24
Net operating revenues (,000) $144,825 $174,774 20.7%
Number of patient days (b) 62,268 76,890 23.5%
Number of admissions (b) 4,376 5,394 23.3%
Net revenue per patient day (b)(c) $1,517 $1,623 7.0%
Adjusted EBITDA (,000) $16,328 $26,776 64.0%
Adjusted EBITDA margin 11.3% 15.3%
Outpatient Rehabilitation
Number of clinics - end of period (a) 1,610 1,617
Net operating revenues (,000) $250,371 $257,381 2.8%
Number of visits (b) 2,075,790 2,067,465 (0.4)%
Revenue per visit (b)(d) $99 $103 4.0%
Adjusted EBITDA (,000) $31,351 $30,525 (2.6)%
Adjusted EBITDA margin 12.5% 11.9%
Concentra
Number of centers - end of period (b) 308 531
Net operating revenues (,000) $250,589 $356,116 42.1%
Number of visits (b) 1,886,815 2,596,059 37.6%
Revenue per visit (b)(d) $116 $124 6.9%
Adjusted EBITDA (,000) $42,592 $57,797 35.7%
Adjusted EBITDA margin 17.0% 16.2%
_______________________________________________________________________________
(a) Includes managed locations.
(b) Excludes managed locations. For
purposes of our Concentra
segment, onsite clinics and
community-based outpatient
clinics are excluded.
(c) Net revenue per patient day is
calculated by dividing direct
patient service revenues by the
total number of patient days.
(d) Net revenue per visit is
calculated by dividing direct
patient service revenue by the
total number of visits. For
purposes of this computation
for our outpatient
rehabilitation segment, direct
patient service revenue does
not include managed clinics.
For purposes of this
computation for our Concentra
segment, direct patient service
revenue does not include onsite
clinics and community-based
outpatient clinics.
(e) The financial results for the
first quarter ended March 31,
2017 have been recast to
conform to the current segment
reporting structure and to
reflect the adoption of Topic
606, Revenue from Contracts
with Customers.
V. Net Income to Adjusted EBITDA
Reconciliation
For the Three Months Ended March 31,
2017 and 2018
(In thousands, unaudited)
The presentation of Adjusted EBITDA
is important to investors because
Adjusted EBITDA is commonly used as
an analytical indicator of
performance by investors within the
healthcare industry. Adjusted EBITDA
is used to evaluate financial
performance and determine resource
allocation for each of Select
Medical's operating segments.
Adjusted EBITDA is not a measure of
financial performance under
generally accepted accounting
principles ("GAAP"). Items excluded
from Adjusted EBITDA are significant
components in understanding and
assessing financial performance.
Adjusted EBITDA should not be
considered in isolation or as an
alternative to, or substitute for,
net income, income from operations,
cash flows generated by operations,
investing or financing activities,
or other financial statement data
presented in the consolidated
financial statements as indicators
of financial performance or
liquidity. Because Adjusted EBITDA
is not a measurement determined in
accordance with GAAP and is thus
susceptible to varying calculations,
Adjusted EBITDA as presented may not
be comparable to other similarly
titled measures of other companies.
The following table reconciles net
income to Adjusted EBITDA for Select
Medical. Adjusted EBITDA is used by
Select Medical to report its segment
performance. Adjusted EBITDA is
defined as earnings excluding
interest, income taxes, depreciation
and amortization, gain (loss) on
early retirement of debt, stock
compensation expense, acquisition
costs associated with U.S.
HealthWorks, non-operating gain
(loss), and equity in earnings
(losses) of unconsolidated
subsidiaries.
Three Months Ended March 31,
2017 2018
---- ----
Net income $23,463 $43,982
Income tax
expense 13,202 12,294
Interest expense 40,853 47,163
Non-operating
loss (gain) 49 (399)
Equity in
earnings of
unconsolidated
subsidiaries (5,521) (4,697)
Loss on early
retirement of
debt 19,719 10,255
------ ------
Income from
operations 91,765 108,598
Stock
compensation
expense:
Included in
general and
administrative 3,749 3,990
Included in cost
of services 837 937
Depreciation and
amortization 42,539 46,771
U.S. HealthWorks
acquisition
costs - 2,936
--- -----
Adjusted EBITDA $138,890 $163,232
======== ========
Long term acute
care $72,337 $72,972
Inpatient
rehabilitation 16,328 26,776
Outpatient
rehabilitation 31,351 30,525
Concentra 42,592 57,797
Other (a) (23,718) (24,838)
------- -------
Adjusted EBITDA $138,890 $163,232
======== ========
_______________________________________________________________________________
(a) Other primarily includes general
and administrative costs.
VI. Reconciliation of Income per
Common Share to Adjusted Income per
Common Share
For the Three Months Ended March 31,
2017 and 2018
(In thousands, except per share
amounts, unaudited)
Adjusted net income available to
common stockholders and adjusted
income per common share - diluted
shares are not measures of financial
performance under GAAP. Items
excluded from adjusted net income
available to common stockholders and
adjusted income per common share -
diluted shares are significant
components in understanding and
assessing financial performance.
Select Medical believes that the
presentation of adjusted net income
available to common stockholders and
adjusted income per common share -
diluted shares are important to
investors because they are
reflective of the financial
performance of our ongoing
operations and provide better
comparability of our results of
operations between periods. Adjusted
net income available to common
stockholders and adjusted income per
common share - diluted shares should
not be considered in isolation or as
alternatives to, or substitutes for,
net income, cash flows generated by
operations, investing or financing
activities, or other financial
statement data presented in the
consolidated financial statements as
indicators of financial performance
or liquidity. Because adjusted net
income available to common
stockholders and adjusted income per
common share - diluted shares are
not measurements determined in
accordance with GAAP and are thus
susceptible to varying calculations,
adjusted net income available to
common stockholders and adjusted
income per common share - diluted
shares as presented may not be
comparable to other similarly titled
measures of other companies.
The following tables reconcile net
income available to common
stockholders and income per common
share to adjusted net income
available to common stockholders and
adjusted income per common share -
diluted shares for Select Medical.
Three Months Ended March 31,
2017 Per Share(a) 2018(b)(c) Per Share(a)
---- ----------- --------- -----------
Net income attributable to
Select Medical $15,870 $33,739
Earnings allocated to
unvested restricted
stockholders 507 1,111
Net income available to
common stockholders $15,363 $0.12 $32,628 $0.25
Adjustments:
Loss on early retirement of
debt 19,719 7,324
U.S. HealthWorks
acquisition costs - 1,745
Estimated income tax
benefit (d) (7,796) (3,478)
Earnings allocated to
unvested restricted
stockholders (381) (184)
---- ----
Adjusted net income
available to common
stockholders $26,905 $0.21 $38,035 $0.29
======= =======
Adjustment for dilution 0.00 0.00
---- ----
Adjusted income per common
share - diluted shares $0.21 $0.29
===== =====
Weighted average common
shares outstanding:
Basic 128,464 129,691
Diluted 128,628 129,816
_______________________________________________________________________________
(a) Per share amounts for each
period presented are basic
weighted average common shares
outstanding for all amounts
except adjusted income per
common share -diluted shares,
which is based on diluted
shares outstanding.
(b) For the three months ended March
31, 2018, the loss on early
retirement is comprised of
losses related to both the
Select credit facilities and
Concentra credit facilities.
The loss on early retirement of
debt related to the Concentra
credit facilities is net of
non-controlling interest.
(c) For the three months ended March
31, 2018, the U.S. HealthWorks
acquisition costs recognized by
Concentra are net of non-
controlling interest.
(d) Represents the estimated income
tax impacts on the adjustments
to net income.
VII. Net Income to Adjusted EBITDA and
Income per Common Share to Adjusted
Income per Common Share Reconciliations
Business Outlook for the Year Ending
December 31, 2018
(In millions, unaudited)
The following are reconciliations of
full year 2018 Adjusted EBITDA and
adjusted income per common share -
diluted shares expectations as computed
at the low and high points of the range
to the closest comparable GAAP
financial measure. Refer to table V
and table VI for a discussion of Select
Medical's use of Adjusted EBITDA and
adjusted income per common share -
diluted shares in evaluating financial
performance. Refer to table V for the
definition of Adjusted EBITDA. Each
item presented in the below tables are
estimations of full year 2018
expectations.
Range
Non-GAAP Measure Reconciliation Low High
--- ----
Net income attributable to Select
Medical $125 $145
Net income attributable to non-
controlling interests 41 43
--- ---
Net income 166 188
Income tax expense 65 73
Interest expense 206 206
Equity in earnings of unconsolidated
subsidiaries (22) (22)
Loss on early retirement of debt 10 10
--- ---
Income from operations 425 455
Stock compensation expense 21 21
Depreciation and amortization 181 181
U.S. HealthWorks acquisition costs 3 3
Adjusted EBITDA $630 $660
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Range
Non-GAAP Measure Reconciliation Low High
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Income per common share - diluted shares $0.93 $1.08
Adjustments:
Loss on early retirement of debt 0.03 0.03
U.S. HealthWorks acquisition costs 0.01 0.01
Adjusted income per common share -
diluted shares $0.97 $1.12
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View original content:http://www.prnewswire.com/news-releases/select-medical-holdings-corporation-announces-results-for-its-first-quarter-ended-march-31-2018-300642446.html
SOURCE Select Medical Holdings Corporation
