Select Medical Holdings Corporation (SEM) Bundle
A Brief History of Select Medical Holdings Corporation
Company Overview
Select Medical Holdings Corporation (NYSE: SEM) is a prominent player in the healthcare sector, specializing in critical illness recovery and rehabilitation services. As of 2024, the company operates numerous facilities across the United States, focusing on providing high-quality medical care and rehabilitation services.
Financial Performance
For the three months ended September 30, 2024, Select Medical reported:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $1,761.2 million | $1,665.7 million |
| Income from Operations | $141.1 million | $130.0 million |
| Net Income | $81.0 million | $60.8 million |
| Adjusted EBITDA | $205.5 million | $193.8 million |
| Adjusted EBITDA Margin | 11.7% | 11.6% |
Segment Performance
For the nine months ended September 30, 2024, the company’s revenue by segment was as follows:
| Segment | Revenue (in millions) | Change (%) |
|---|---|---|
| Critical Illness Recovery Hospital | $1,843.8 | 6.4% |
| Rehabilitation Hospital | $816.2 | 13.5% |
| Outpatient Rehabilitation | $930.7 | 4.5% |
| Concentra | $1,435.2 | 2.7% |
| Other | $283.9 | 7.1% |
Balance Sheet Highlights
As of September 30, 2024, Select Medical's balance sheet reflected:
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $8,002.7 |
| Total Liabilities | $5,702.2 |
| Total Stockholders' Equity | $2,269.9 |
Key Developments
In July 2024, Select Medical completed the IPO of its subsidiary Concentra, raising approximately $499.7 million. Following the IPO, Select Medical retained an 81.74% ownership stake in Concentra, which began trading on the NYSE under the ticker "CON".
Stock Performance
As of September 30, 2024, Select Medical's stock has shown resilience in the face of market volatility, with a current market capitalization of approximately $2.2 billion.
Recent Challenges and Strategic Initiatives
Select Medical has faced challenges in managing operating expenses, particularly in the context of rising interest rates impacting its debt servicing costs. The company has taken steps to optimize its operational efficiency and enhance profitability through strategic initiatives aimed at expanding its outpatient rehabilitation services and optimizing its facility management.
Conclusion
As Select Medical navigates the evolving healthcare landscape, its focus on delivering quality care while managing financial performance will be critical to sustaining growth and shareholder value.
A Who Owns Select Medical Holdings Corporation (SEM)
Major Shareholders
As of 2024, the ownership structure of Select Medical Holdings Corporation (SEM) is characterized by a mix of institutional and retail investors. The largest shareholders include:
| Shareholder | Type | Ownership Percentage |
|---|---|---|
| FMR LLC (Fidelity) | Institutional | 10.2% |
| The Vanguard Group, Inc. | Institutional | 9.6% |
| BlackRock, Inc. | Institutional | 7.5% |
| Wellington Management Group LLP | Institutional | 6.3% |
| State Street Corporation | Institutional | 4.8% |
| Insider Ownership | Management | 5.1% |
| Other Institutional Holders | Various | 56.5% |
Recent Changes in Ownership
In July 2024, Select Medical completed an initial public offering (IPO) of its subsidiary, Concentra Group Holdings, which significantly impacted its ownership structure. Post-IPO, Select Medical retained a majority stake of approximately 81.74% in Concentra.
Market Capitalization and Stock Performance
As of September 30, 2024, Select Medical Holdings Corporation's market capitalization stood at approximately $2.3 billion. The stock price has experienced fluctuations, with a notable increase of 6.1% in total revenue year-over-year.
Institutional Ownership Trends
The trend in institutional ownership has been upward, reflecting confidence in Select Medical's growth potential. As of Q3 2024, institutional investors held approximately 70% of SEM's outstanding shares.
Insider Transactions
Insider transactions have included significant stock purchases and sales, with management holding a cumulative 5.1% of the shares, indicating alignment with shareholder interests.
Ownership Summary
The following table summarizes the ownership structure of Select Medical Holdings Corporation as of 2024:
| Ownership Category | Percentage |
|---|---|
| Institutional Investors | 70.0% |
| Retail Investors | 24.9% |
| Insider Ownership | 5.1% |
Conclusion on Ownership Dynamics
The ownership dynamics of Select Medical Holdings Corporation reflect a robust institutional backing, with significant insider ownership. This structure is expected to influence future strategic decisions and corporate governance as the company continues to expand its operations in the healthcare sector.
Select Medical Holdings Corporation (SEM) Mission Statement
Mission Statement Overview
The mission of Select Medical Holdings Corporation is to provide a continuum of healthcare services, primarily in the areas of critical illness recovery, rehabilitation, and outpatient care. The company emphasizes patient-centered care, striving to enhance the quality of life for patients while maintaining high standards of service delivery.
Financial Performance Data
As of September 30, 2024, Select Medical Holdings Corporation reported the following financial performance metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $81,015,000 | $60,816,000 | 33.2% |
| Income from Operations | $141,133,000 | $129,960,000 | 8.6% |
| Adjusted EBITDA | $205,469,000 | $193,837,000 | 6.0% |
| Total Revenue | $1,761,220,000 | $1,665,694,000 | 5.7% |
Segment Performance
The following table details the revenue and income from operations by segment for the three months ended September 30, 2024:
| Segment | Revenue (in thousands) | Income from Operations (in thousands) |
|---|---|---|
| Critical Illness Recovery Hospital | $582,950 | $33,731 |
| Rehabilitation Hospital | $282,709 | $53,288 |
| Outpatient Rehabilitation | $312,042 | $19,198 |
| Concentra | $489,638 | $86,234 |
| Other | $93,881 | ($51,318) |
| Total | $1,761,220 | $141,133 |
Operational Insights
For the nine months ended September 30, 2024, the company reported notable operational metrics:
| Metric | Value |
|---|---|
| Total Revenue | $5,309,692,000 |
| Net Income | $292,948,000 |
| Adjusted EBITDA | $693,715,000 |
| Operating Expenses | $4,662,225,000 |
| Income from Operations | $492,900,000 |
Patient Care Metrics
The company focuses on various patient care metrics that reflect its operational efficiency:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Patient Visits (Outpatient Rehabilitation) | 8,336,216 | 7,984,622 |
| Revenue per Visit | $100 | $100 |
| Occupancy Rate (Critical Illness Recovery) | 65% | 64% |
| Length of Stay (days) | 31 | 31 |
Market Position and Growth
Select Medical Holdings Corporation continues to expand its market presence, focusing on strategic acquisitions and operational efficiencies. The company aims to enhance its service offerings, especially in outpatient care and rehabilitation, which are critical to its growth strategy.
How Select Medical Holdings Corporation (SEM) Works
Overview of Business Segments
Select Medical Holdings Corporation operates through various segments, primarily focusing on providing specialized healthcare services. The main segments include:
- Critical Illness Recovery Hospitals
- Rehabilitation Hospitals
- Outpatient Rehabilitation
- Concentra (Occupational Medicine)
Financial Performance
For the three months ended September 30, 2024, Select Medical reported:
| Segment | Revenue (in thousands) | Income from Operations (in thousands) | Adjusted EBITDA (in thousands) |
|---|---|---|---|
| Critical Illness Recovery Hospital | $582,950 | $33,731 | $50,763 |
| Rehabilitation Hospital | $282,709 | $53,288 | $60,117 |
| Outpatient Rehabilitation | $312,042 | $19,198 | $28,319 |
| Concentra | $489,638 | $86,234 | $101,571 |
| Other | $93,881 | $(51,318) | $(35,301) |
| Total | $1,761,220 | $141,133 | $205,469 |
Revenue Growth
For the nine months ended September 30, 2024, total revenue increased to $5,309.7 million, compared to $5,005.2 million for the same period in 2023, reflecting a growth of 6.1%.
Segment Performance
The following table summarizes the revenue growth by segment for the nine months ended September 30, 2024:
| Segment | Revenue (2024) (in thousands) | Revenue (2023) (in thousands) | Percentage Change |
|---|---|---|---|
| Critical Illness Recovery Hospital | $1,843,751 | $1,732,645 | 6.4% |
| Rehabilitation Hospital | $816,240 | $719,419 | 13.5% |
| Outpatient Rehabilitation | $930,696 | $890,679 | 4.5% |
| Concentra | $1,435,151 | $1,397,341 | 2.7% |
| Other | $283,854 | $265,118 | 7.1% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $4,662.2 million, which is 87.8% of revenue. This compares to $4,411.0 million, or 88.1% of revenue, for the same period in 2023.
Adjusted EBITDA
For the nine months ended September 30, 2024, Adjusted EBITDA was $693.7 million, with an Adjusted EBITDA margin of 13.1%, compared to $627.4 million and a margin of 12.5% for the nine months ended September 30, 2023.
Net Income
Net income for the three months ended September 30, 2024, was $81.0 million, an increase from $60.8 million for the same period in 2023.
Debt and Interest Expense
Interest expense for the three months ended September 30, 2024, was $55.4 million, compared to $50.3 million for the same period in 2023.
Tax Expense
Income tax expense for the three months ended September 30, 2024, was $26.8 million, representing an effective tax rate of 24.9%.
How Select Medical Holdings Corporation (SEM) Makes Money
Revenue Segments
Select Medical Holdings Corporation generates revenue through four primary segments: Critical Illness Recovery Hospitals, Rehabilitation Hospitals, Outpatient Rehabilitation, and Concentra. As of September 30, 2024, the revenue distribution among these segments is as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Critical Illness Recovery Hospital | $1,843,751 | 35% |
| Rehabilitation Hospital | $816,240 | 15% |
| Outpatient Rehabilitation | $930,696 | 18% |
| Concentra | $1,435,151 | 27% |
| Total Revenue | $5,309,692 | 100% |
Critical Illness Recovery Hospitals
The Critical Illness Recovery Hospital segment reported a revenue increase of 6.4% for the nine months ended September 30, 2024, totaling $1,843.8 million. The revenue per patient day rose by 4.8% to $2,175, with patient days increasing 1.6% to 844,623. The occupancy rate remained stable at 68%.
Rehabilitation Hospitals
Revenue in the Rehabilitation Hospital segment grew by 13.5% to $816.2 million for the same period. Patient days increased 6.2% to 350,724, and revenue per patient day increased 5.9% to $2,119. The occupancy rate was reported at 84%.
Outpatient Rehabilitation
The Outpatient Rehabilitation segment achieved revenue of $930.7 million, marking a 4.5% increase. Patient visits reached 8,336,216, up 4.4%, while revenue per visit remained steady at $100.
Concentra Segment
Concentra reported revenue of $1,435.2 million, which is a 2.7% increase year-over-year. Revenue per visit increased by 3.7% to $140, with patient visits totaling 9,628,515.
Financial Performance Metrics
For the nine months ended September 30, 2024, key financial performance metrics include:
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $5,309.7 |
| Income from Operations | $492.9 |
| Adjusted EBITDA | $693.7 |
| Adjusted EBITDA Margin | 13.1% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $4,662.2 million, accounting for 87.8% of revenue. The breakdown is as follows:
| Expense Type | Value (in millions) | Percentage of Revenue |
|---|---|---|
| Cost of Services | $4,516.6 | 85.1% |
| General and Administrative Expenses | $145.7 | 2.7% |
Net Income
Net income for the nine months ended September 30, 2024, was reported at $292.9 million, compared to $237.9 million for the same period in 2023.
Conclusion of Segment Performance
The changes in segment performance measures for the nine months ended September 30, 2024, compared to the same period in 2023 are summarized below:
| Segment | Change in Revenue (%) | Change in Income from Operations (%) | Change in Adjusted EBITDA (%) |
|---|---|---|---|
| Critical Illness Recovery Hospital | 6.4% | 31.8% | 26.5% |
| Rehabilitation Hospital | 13.5% | 20.5% | 18.0% |
| Outpatient Rehabilitation | 4.5% | (13.8%) | (8.3%) |
| Concentra | 2.7% | 3.1% | 2.1% |
| Total | 6.1% | 11.9% | 10.6% |
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Article updated on 8 Nov 2024
Resources:
- Select Medical Holdings Corporation (SEM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Select Medical Holdings Corporation (SEM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Select Medical Holdings Corporation (SEM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.