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Select Medical Corporation Announces Results for Fourth Quarter and Year Ended December 31, 2007
Date:3/24/2008

ncome from discontinued operations,

net of tax 2,460 - N/M

Net income $32,777 $11,201 (65.8)%

(a) On March 1, 2006, we sold our wholly-owned subsidiary, Canadian Back

Institute Limited ("CBIL"), for approximately C$89.8 million in cash

(US$79.0 million). We conducted all of our Canadian operations through

CBIL. The financial results of CBIL have been classified as

discontinued operations for the three months ended December 31, 2006.

II. Condensed Consolidated Statements of Operations

(In thousands)

(unaudited)

For the Year Ended December 31, 2006 and 2007

%

2006 2007 Change

Net operating revenues $1,851,498 $1,991,666 7.6%

Costs and expenses:

Cost of services 1,484,632 1,660,049 11.8%

General and administrative 43,514 42,863 (1.5)%

Bad debt expense 18,810 37,572 99.7%

Depreciation and amortization 46,668 57,297 22.8%

Income from operations 257,874 193,885 (24.8)%

Other income (expense) 1,366 (4,494) N/M

Interest income 1,293 2,103 62.6%

Interest expense (97,288) (105,497) 8.4%

Income from continuing operations before

minority interests and income taxes 163,245 85,997 (47.3)%

Minority interests 1,414 1,537 8.7%

Income from continuing operations

before income taxes 161,831 84,460 (47.8)%

Income tax expense
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SOURCE Select Medical Corporation
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