Q3 2024 Select Medical Holdings Corp Earnings Call Transcript
Key Points
- Select Medical Holdings Corp (SEM) successfully completed Concentra's initial public offering, owning 81.74% of Concentra stock.
- The company opened a new 48-bed inpatient rehab hospital in Jacksonville, Florida, in partnership with UF Health.
- All four divisions exceeded prior year Q3 results in both revenue and adjusted EBITDA, with consolidated adjusted EBITDA growing by 6%.
- The inpatient rehab division reported double-digit growth in both revenue and adjusted EBITDA for the third consecutive quarter.
- Select Medical Holdings Corp (SEM) reduced its consolidated leverage from 4.13x to 3.38x, showing strong financial management.
- The company incurred $3.7 million in start-up losses in the inpatient rehab division due to new hospital openings.
- Occupancy in the inpatient rehab division decreased by 2% compared to the prior year, attributed to new hospital start-up losses.
- Concentra experienced a 4% decrease in employer-based visits, which are reimbursed at lower rates.
- Interest expense increased to $55.4 million in the third quarter, up from $50.3 million in the same quarter prior year.
- The outpatient rehab division's adjusted EBITDA margin remains relatively low at 9.1%, indicating room for improvement.
Good morning, and thank you for joining us today for the Select Medical Holdings Corporation's earnings conference call to discuss the third-quarter 2024 results and the company's business outlook.
Speaking today are the company's Executive Chairman and Co-Founder, Robert Ortenzio; and the company's Senior Executive Vice President of Strategic Finance and Operations, Martin Jackson. Management will give you an overview of the quarter and then open the call up for questions.
Before we get started, we would like to remind you that this conference call may contain forward-looking statements regarding future events or the future financial performance of the company, including, without limitation, statements regarding operating results, growth opportunities and the other statements that refer to the Select Medical's plans, expectations, strategies, intentions and beliefs. These forward-looking statements are based on the information available to the management of Select Medical today, and the company assumes no obligation to update these statements as circumstances change.
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