On November 2, 2023, Select Medical Holdings Corp (SEM, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a 6.2% increase in revenue to $1,665.7 million, compared to $1,567.8 million for the same quarter in the previous year. Net income for the quarter increased by 59.5% to $60.8 million, compared to $38.1 million in Q3 2022. Adjusted EBITDA also saw a significant increase of 26.6% to $193.8 million, compared to $153.1 million in the same quarter of the previous year.
Performance Across Segments
SEM's four reportable segments - the critical illness recovery hospital segment, the rehabilitation hospital segment, the outpatient rehabilitation segment, and the Concentra segment - all reported growth in revenue and adjusted EBITDA. The critical illness recovery hospital segment saw the highest increase in adjusted EBITDA, with a 321.0% increase to $46.4 million in Q3 2023, compared to $11.0 million in Q3 2022.
Dividend and Stock Repurchase Program
SEM's Board of Directors declared a cash dividend of $0.125 per share, payable on or about November 28, 2023, to stockholders of record as of the close of business on November 15, 2023. The company also announced a common stock repurchase program to repurchase up to $1.0 billion worth of shares of its common stock. The program will remain in effect until December 31, 2025.
Outlook for 2023
SEM maintains its business outlook for 2023, with expected revenue to be in the range of $6.55 billion to $6.7 billion, expected Adjusted EBITDA in the range of $795.0 million to $825.0 million, and fully diluted earnings per share to be in the range of $1.77 to $1.94.
Conclusion
The Q3 2023 results demonstrate SEM's strong performance across all segments. The company's commitment to returning value to shareholders through dividends and a stock repurchase program further underscores its financial strength and positive outlook for the future.
Explore the complete 8-K earnings release (here) from Select Medical Holdings Corp for further details.
