The earnings call presented a generally positive outlook with strong revenue and EBITDA growth across divisions and successful completion of Concentra's IPO. However, there were some challenges with occupancy rates in the inpatient rehab division and start-up losses. The company has shown strong debt management and continues to focus on development and efficiency improvements.

Company Guidance

During Select Medical Holdings Corporation's Q3 2024 earnings call, the company provided robust guidance and updates on its financial performance and strategic initiatives. The company reported a 6% increase in revenue from the previous year, reaching $205.5 million in consolidated adjusted EBITDA with a margin of 11.7%. The inpatient rehab division experienced a 14% revenue increase and a 12% rise in adjusted EBITDA, despite $3.7 million in start-up losses. The critical illness recovery hospital division saw a 3% revenue uptick and a 9% increase in adjusted EBITDA, with improved occupancy rates and a 2% rise in the rate per patient day. The outpatient rehab division's revenue grew by 7%, maintaining a 9.1% adjusted EBITDA margin. Select Medical's guidance for 2024 projects revenue between $6.95 billion and $7.15 billion, adjusted EBITDA between $865 million and $885 million, and adjusted EPS in the range of $2.09 to $2.20. The company plans to add 569 beds across various projects by 2026 and declared a cash dividend of $0.125 per share, demonstrating a strong outlook and commitment to growth and shareholder returns.

Concentra's Initial Public Offering

Concentra successfully completed its IPO, issuing 23,250,000 shares, and now trades under the symbol CON on the NYSE. Select Medical owns 81.74% of Concentra stock.

Inpatient Rehab Division Growth

The division reported a 14% increase in revenue and a 12% increase in adjusted EBITDA compared to Q3 prior year, with continued expansion plans in multiple locations.

Overall Revenue and EBITDA Growth

Select Medical reported a 6% growth in consolidated adjusted EBITDA and revenue from the previous year, with an EBITDA margin of 11.7%.

Debt Reduction and Improved Leverage

Select Medical made significant debt repayments, reducing its consolidated debt by $498 million and achieving a leverage ratio of 3.38x.

Outpatient Rehab Division Performance

The division experienced a 7% increase in revenue and adjusted EBITDA, with a slight margin increase from 9% to 9.1%.

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Select Medical (SEM) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

SEM Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 02, 2018	2018 (Q2)	- / 0.31	0.32	-3.13% (-0.01)	―	―
Nov 01, 2018	2018 (Q3)	- / 0.23	0.14	64.29% (+0.09)	―	―
Feb 21, 2019	2018 (Q4)	- / 0.20	0.29	-31.03% (-0.09)	―	―
May 02, 2019	2019 (Q1)	- / 0.27	0.29	-6.90% (-0.02)	―	―
Aug 01, 2019	2019 (Q2)	- / 0.33	0.31	6.45% (+0.02)	―	―
Oct 31, 2019	2019 (Q3)	- / 0.33	0.23	43.48% (+0.10)	―	―
Feb 20, 2020	2019 (Q4)	- / 0.31	0.2	55.00% (+0.11)	―	―
Apr 30, 2020	2020 (Q1)	- / 0.37	0.27	37.04% (+0.10)	―	―
Jul 30, 2020	2020 (Q2)	- / 0.38	0.33	15.15% (+0.05)	―	―
Oct 29, 2020	2020 (Q3)	- / 0.56	0.33	69.70% (+0.23)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SEM Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 31, 2024	$17.22	$19.30	+12.08%
Aug 01, 2024	$20.95	$18.28	-12.74%
May 02, 2024	$15.16	$16.75	+10.49%
Feb 22, 2024	$13.76	$15.12	+9.88%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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