MECHANICSBURG, Pa., May 14 /PRNewswire/ -- Select Medical Corporation ("Select") today announced results for its first quarter ended March 31, 2009.
For the first quarter ended March 31, 2009, net operating revenues increased 2.4% to $561.2 million compared to $548.3 million for the same quarter, prior year. Income from operations increased 24.4% to $67.6 million compared to $54.3 million for the same quarter, prior year. Net income attributable to Select Medical Corporation increased to $31.7 million compared to $11.6 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 income, other expense and non-controlling interest ("Adjusted EBITDA") for the first quarter increased 18.1% to $85.7 million compared to $72.5 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.
At March 31, 2009, Select operated 87 long term acute care hospitals and five acute medical rehabilitation hospitals. This compares to 88 long term acute care hospitals and four acute medical rehabilitation hospitals operated at March 31, 2008. For the first quarter of 2009, net operating revenues for all of Select's hospitals increased 3.9% to $393.2 million compared to $378.6 million for the same quarter, prior year. Total patient days for the first quarter of 2009 were 256,273, admissions were 10,805 and net revenue per patient day was $1,508. This compares to 259,559 days, 10,736 admissions and net revenue per patient day of $1,432 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods, patient days in the first quarter of 2009 were 238,535 and admissions were 10,049, compared to 251,287 days and 10,391 admissions in the same quarter, prior year. Adjusted EBITDA for the segment increased 21.4% to $76.8 million compared to $63.2 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 19.5% for the first quarter of 2009, compared to 16.7% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods was 21.1% for the first quarter of 2009, compared to 19.0% for the same quarter, prior year.
At March 31, 2009, Select operated 948 outpatient clinics. This compares to 985 outpatient clinics at March 31, 2008. For the first quarter of 2009, net operating revenues for the segment decreased 1.0% to $167.8 million compared to $169.6 million for the same quarter, prior year. Adjusted EBITDA for the segment for the first quarter increased 5.9% to $21.3 million compared to $20.1 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment for the quarter was 12.7% compared to 11.9% in the same quarter, prior year. Patient visits for the quarter were 1,096,296 compared to 1,155,907 for the same quarter, prior year. Net revenue per visit was $103 for both the first quarter of 2009 and for the same quarter, prior year.
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. 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 87 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 948 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:
I. Condensed Consolidated Statements of Operations (In thousands) (unaudited) For the Three Months Ended March 31, 2008 and 2009 % 2008 2009 Change Net operating revenues $548,278 $561,172 2.4% Costs and expenses: Cost of services 452,271 451,394 (0.2)% General and administrative 11,651 12,775 9.6% Bad debt expense 12,615 11,646 (7.7)% Depreciation and amortization 17,397 17,731 1.9% Income from operations 54,344 67,626 24.4% Gain on early retirement of debt - 11,754 N/M Other income (expense) (4,293) 1,653 N/M Interest income 126 52 (58.7)% Interest expense (28,235) (25,969) (8.0)% Income from operations before income taxes 21,942 55,116 151.2% Income tax expense 10,079 22,368 121.9% Net income 11,863 32,748 176.1% Less: Net income attributable to non-controlling interests 309 1,021 230.4% Net income attributable to Select Medical Corporation $11,554 $31,727 174.6% N/M = Not Meaningful II. Condensed Consolidated Balance Sheets (In thousands) (unaudited) December 31, March 31 2008 2009 ASSETS Cash $64,260 $12,686 Accounts receivable, net 312,418 366,317 Current deferred tax asset 48,594 51,603 Prepaid income taxes 7,362 - Other current assets 20,897 25,322 Total Current Assets 453,531 455,928 Property and equipment, net 471,065 462,399 Goodwill 1,506,661 1,506,661 Other identifiable intangibles 74,078 71,868 Assets held for sale 12,542 12,542 Other assets 44,548 41,880 Total Assets $2,562,425 $2,551,278 LIABILITIES AND EQUITY Payables and accruals $344,358 $318,685 Current portion of long-term debt 9,046 12,154 Total Current Liabilities 353,404 330,839 Long-term debt, net of current portion 1,460,276 1,426,790 Non-current deferred tax liability 42,918 47,761 Other non-current liabilities 67,709 65,479 Total equity 638,118 680,409 Total Liabilities and Equity $2,562,425 $2,551,278 III. Key Statistics (unaudited) For the Three Months Ended March 31, 2008 and 2009 % 2008 2009 Change Specialty Hospitals (a) Number of hospitals - end of period 92 92 0.0% Net operating revenues (,000) $378,604 $393,232 3.9% Number of patient days 259,559 256,273 (1.3)% Number of admissions 10,736 10,805 0.6% Net revenue per patient day (b) $1,432 $1,508 5.3% Adjusted EBITDA (,000) $63,243 $76,781 21.4% Adjusted EBITDA margin - all hospitals 16.7% 19.5% 16.8% Adjusted EBITDA margin - same store hospitals (c) 19.0% 21.1% 11.1% Outpatient Rehabilitation Number of clinics - end of period 985 948 (3.8)% Net operating revenues (,000) $169,577 $167,819 (1.0)% Number of visits 1,155,907 1,096,296 (5.2)% Revenue per visit (d) $103 $103 0.0% Adjusted EBITDA (,000) $20,097 $21,284 5.9% Adjusted EBITDA margin 11.9% 12.7% 6.7% (a) Specialty hospitals consist of long term acute care hospitals and acute medical rehabilitation hospitals. (b) Net revenue per patient day is calculated by dividing specialty hospital patient service revenue by the total number of patient days. (c) Adjusted EBITDA margin - same store hospitals represents the Adjusted EBITDA margin for those hospitals opened or acquired before January 1, 2008 and operated throughout both periods. (d) Net revenue per visit is calculated by dividing outpatient rehabilitation clinic revenue by the total number of visits. For purposes of this computation, outpatient rehabilitation clinic revenue does not include managed clinics or contract services revenue. IV. Net Income to Adjusted EBITDA Reconciliation (In thousands) (unaudited) For the Three Months Ended March 31, 2008 and 2009 The following table reconciles net income to Adjusted EBITDA for Select. Adjusted EBITDA is used by Select to report its segment performance in accordance with SFAS No. 131. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, stock compensation expense, gain on early retirement of debt, other income, other expense and non-controlling interest. We believe that the presentation of Adjusted EBITDA is important to investors because Adjusted EBITDA is used by management to evaluate financial Performance and determine resource allocation for each of our operating units. Adjusted EBITDA is not a measure of financial performance under Generally accepted accounting principles. 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, 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 generally accepted accounting principles and is thus susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies. Three Months Ended March 31, 2008 2009 Net income $11,554 $31,727 Non-controlling interest 309 1,021 Income tax expense 10,079 22,368 Interest expense, net 28,109 25,917 Other expense (income) 4,293 (1,653) Gain on early retirement of debt - (11,754) Stock compensation expense Included in general and administrative 709 242 Included in cost of services 45 53 Depreciation and amortization 17,397 17,731 Adjusted EBITDA $72,495 $85,652 Specialty hospitals $63,243 $76,781 Outpatient rehabilitation 20,097 21,284 Other (1) (10,845) (12,413) Adjusted EBITDA $72,495 $85,652 (1) Other primarily includes Select's general and administrative costs. The following tables reconcile specialty hospital same store information. Three Months Ended March 31, 2008 March 31, 2009 Specialty hospitals net operating revenue $378,604 $393,232 Less: Specialty hospitals in development, opened or closed after 1/1/08 10,344 26,633 Specialty hospitals same store net operating revenue $368,260 $366,599 Specialty hospitals Adjusted EBITDA $63,243 $76,781 Less: Specialty hospitals in development, opened or closed after 1/1/08 (6,734) (508) Specialty hospitals same store Adjusted EBITDA $69,977 $77,289 All specialty hospitals Adjusted EBITDA margin 16.7% 19.5% Specialty hospitals same store Adjusted EBITDA margin 19.0% 21.1%
|SOURCE Select Medical Corporation|
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