Select Medical Announces Year-End Results with 2025 Outlook
Select Medical Holdings Corporation's Financial Highlights
Select Medical Holdings Corporation, known for its commitment to healthcare, has recently reported its financial results for the fourth quarter and the entire year ended in 2024. The company focuses on critical illness recovery and rehabilitation, demonstrating resilience amid various challenges in the healthcare sector.
Fourth Quarter Performance
In the fourth quarter of 2024, Select Medical accomplished a revenue increase of 7.8%, reaching $1.312 billion compared to $1.218 billion in the prior year. This growth reflects the company's continuous efforts in enhancing service delivery and expanding patient care capacity.
Operational Insights
For the same quarter, the income from continuing operations before accounting for other income and expenses stood at $21.1 million. However, this marks a decline from $64.9 million a year prior. Factors such as a one-time stock compensation expense of $45.9 million negatively impacted the quarterly results, alongside a loss of $17.9 million due to debt refinancing activities.
Yearly Achievements
For the fiscal year ending in 2024, Select Medical reported an annual revenue increase of 7.5%, totaling approximately $5.187 billion versus $4.826 billion in 2023. The growth reflects broader operational achievements and a successful strategy focused on patient care excellence.
Adjusted Metrics Overview
The Adjusted EBITDA for 2024 rose 14.4% to about $510 million, indicating strong operational efficiency that enables the company to deliver on its strategic objectives. Earnings per share from continuing operations saw significant growth, being reported at $0.51 compared to $0.46 in the previous year.
Segment Highlights
Select Medical's various segments have shown impressive statistics in terms of revenue growth. The Critical Illness Recovery Hospital segment generated an increase in revenue of 6.3% for the year, achieving $2.444 billion. Meanwhile, the Rehabilitation Hospital segment saw a 13.4% rise in revenue, reaching $1.111 billion, showcasing the growing demand for rehabilitation services.
Outpatient Rehabilitation Success
In the Outpatient Rehabilitation segment, revenue grew by 5.2%, achieving over $1.250 billion. This segment plays a crucial role in the company’s offerings, supporting a vast network of clinics and expanding patient availability for comprehensive care.
Dividend Declarations
On February 13, 2025, Select Medical's board declared a cash dividend of $0.0625 per share, reaffirming its commitment to return value to shareholders. This dividend is anticipated to be paid on or around March 13, 2025, to eligible stockholders.
Looking Ahead: 2025 Outlook
Select Medical has set optimistic targets for the year 2025, projecting revenues between $5.4 billion and $5.6 billion, supported by an anticipated Adjusted EBITDA ranging from $520 million to $540 million. This forecast reflects the company's strategic positioning and commitment to growth and patient care enhancements.
Financial Planning and Reporting
As the company works towards achieving these projections, effective management of its resources will be critical. The understanding of operation costs, dynamic funding availability, and market needs are fundamental for ensuring that Select Medical meets and exceeds performance expectations.
Investor Relations and Contact
For more information about Select Medical Holdings Corporation, please reach out to the investor relations department. Select Medical believes in providing transparent and timely updates regarding its ongoing projects and financial performance.
Frequently Asked Questions
What are the key financial results for Select Medical in 2024?
In 2024, Select Medical reported a revenue increase of 7.5%, reaching approximately $5.187 billion.
What factors influenced the fourth quarter results?
The fourth quarter results were impacted by a one-time stock compensation expense and a loss from debt refinancing.
What segments contributed to Select Medical's growth?
The Critical Illness Recovery Hospital and Rehabilitation Hospital segments demonstrated significant revenue growth in 2024.
What is the declared dividend for 2025?
A cash dividend of $0.0625 per share has been declared, payable on or around March 13, 2025.
What is Select Medical's outlook for 2025?
Select Medical expects to achieve revenues between $5.4 billion and $5.6 billion and Adjusted EBITDA in the range of $520 million to $540 million.
About The Author
Contact Henry Turner privately here. Or send an email with ATTN: Henry Turner as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
