MECHANICSBURG, Pa., Aug. 5 /PRNewswire-FirstCall/ -- Select Medical Holdings Corporation ("Select") , today announced results for its second quarter ended June 30, 2010.
For the second quarter ended June 30, 2010, net operating revenues increased 3.6% to $579.9 million compared to $559.5 million for the same quarter, prior year. Income from operations increased 11.0% to $72.6 million compared to $65.4 million for the same quarter, prior year. Net income attributable to Select increased 23.6% to $24.5 million compared to $19.8 million for the same quarter, prior year. Net income attributable to Select for the quarter ended June 30, 2009 included a gain on early retirement of debt, net of tax, of $2.0 million. Additionally, net income before interest, income taxes, depreciation and amortization, gain on early retirement of debt, stock compensation expense and other income ("Adjusted EBITDA") for the second quarter increased 7.2% to $89.6 million compared to $83.6 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release. Income per common share for the second quarter ended June 30, 2010 was $0.15 on a fully diluted basis and weighted average diluted shares outstanding were 159,975,000. On September 30, 2009, Select completed an initial public offering that resulted in the issuance of 30,000,000 shares of common stock. On October 28, 2009, the underwriters exercised their over-allotment option to purchase an additional 3,603,000 shares of common stock. Upon completion of the initial public offering, Select's participating preferred stock converted into a total of 64,277,000 common shares.
Select's income per common share for the quarter ended June 30, 2009 was $0.19, which included a non-recurring gain related to the early retirement of debt. Excluding this item, on an adjusted basis income available to common stockholders was $0.16 per diluted share for the quarter ended June 30, 2009. A reconciliation of net income per share to adjusted net income per share is attached to this release.
For the six months ended June 30, 2010, net operating revenues increased 3.9% to $1,164.7 million compared to $1,120.7 million for the same period, prior year. Income from operations increased 9.2% to $145.2 million compared to $133.0 million for the same period, prior year. Net income attributable to Select increased 8.7% to $48.7 million compared to $44.8 million for the same period, prior year. Net income attributable to Select for the six months ended June 30, 2009 includes a gain on early retirement of debt, net of tax, of $8.9 million. Additionally, Adjusted EBITDA for the six months ended June 30, 2010 increased 6.6% to $180.5 million compared to $169.3 million for the same period, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release. Income per common share for the six months ended June 30, 2010 was $0.30 on a fully diluted basis and weighted average diluted shares outstanding were 159,984,000. On September 30, 2009, Select completed an initial public offering that resulted in the issuance of 30,000,000 shares of common stock. On October 28, 2009, the underwriters exercised their over-allotment option to purchase an additional 3,603,000 shares of common stock. Upon completion of the initial public offering, Select's participating preferred stock converted into a total of 64,277,000 common shares.
Select's income per common share for the six months ended June 30, 2009 was $0.47, which included a non-recurring gain related to the early retirement of debt. Excluding this item, on an adjusted basis income available to common stockholders was $0.34 per diluted share for the six months ended June 30, 2009. A reconciliation of net income per share to adjusted net income per share is attached to this release.
Specialty Hospitals
At June 30, 2010, Select operated 89 long term acute care hospitals and six acute medical rehabilitation hospitals. This compares to 87 long term acute care hospitals and five acute medical rehabilitation hospitals operated at June 30, 2009. For the second quarter of 2010, net operating revenues for all of Select's hospitals increased 4.3% to $403.1 million compared to $386.3 million for the same quarter, prior year. Total patient days for the second quarter of 2010 were 264,898, admissions were 10,616 and net revenue per patient day was $1,474. This compares to 252,710 days, 10,504 admissions and net revenue per patient day of $1,491 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2009 and operated by Select throughout both periods, patient days in the second quarter of 2010 were 258,884 and admissions were 10,304, compared to 251,136 days and 10,433 admissions in the same quarter, prior year. Adjusted EBITDA for the specialty hospital segment increased 3.4% to $73.3 million compared to $71.0 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 18.2% for the second quarter of 2010, compared to 18.4% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2009 and operated by Select throughout both periods was 18.5% for the second quarter of 2010, compared to 18.4% for the same quarter, prior year.
For the six months ended June 30, 2010, net operating revenues for all of Select's hospitals increased 4.5% to $814.8 million compared to $779.6 million for the same period, prior year. Total patient days for the six months ended June 30, 2010 were 532,746, admissions were 21,717 and net revenue per patient day was $1,483. This compares to 508,983 days, 21,309 admissions and net revenue per patient day of $1,494 for the same period, prior year. For the hospitals opened or acquired as of January 1, 2009 and operated by Select throughout both periods, patient days for the six months ended June 30, 2010 were 521,823, and admissions were 21,122, compared to 505,403 days and 21,164 admissions in the same period, prior year. Adjusted EBITDA for the segment for the six months ended June 30, 2010 increased 5.8% to $156.2 million compared to $147.7 million for the same period, prior year. The Adjusted EBITDA margin for the segment for the six months ended June 30, 2010 was 19.2%, compared to 19.0% for the same period, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2009 and operated by Select throughout both periods was 19.7% for the six months ended June 30, 2010, compared to 19.0% for the same period, prior year.
Outpatient Rehabilitation
At June 30, 2010, Select operated 953 outpatient clinics. This compares to 948 outpatient clinics at June 30, 2009. For the second quarter of 2010, net operating revenues for the outpatient rehabilitation segment increased 2.1% to $176.8 million compared to $173.2 million for the same quarter, prior year. Adjusted EBITDA for the segment for the second quarter increased 2.6% to $26.0 million compared to $25.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment for the quarter was 14.7% compared to 14.6% in the same quarter, prior year. Patient visits for the quarter were 1,172,212 compared to 1,163,341 for the same quarter, prior year. Net revenue per visit was $101 in both quarters.
For the six months ended June 30, 2010, net operating revenues were $349.9 million compared to $341.0 million for the same period, prior year. Adjusted EBITDA for the six months ended June 30, 2010 decreased 0.2% to $46.5 million compared to $46.6 million for the same period, prior year. The Adjusted EBITDA margin for the six months ended June 30, 2010 was 13.3% compared to 13.7% in the same period, prior year. Patient visits for the six months ended June 30, 2010 were 2,298,170 compared to 2,259,637 for the same period, prior year. Net revenue per visit was $101 for the six months ended June 30, 2010 compared to $102 for the same period, prior year.
Agreement to Purchase Regency Hospital Company, L.L.C.
On June 18, 2010, the Company entered into an agreement to acquire all the issued and outstanding equity securities of Regency Hospital Company, L.L.C. ("Regency") an operator of long-term acute care hospitals, for approximately $210 million, including certain assumed liabilities. The purchase price is subject to adjustment based on Regency's net working capital on the closing date.
Regency operates a network of 23 long-term acute care hospitals, located in 9 states. The transaction, which is expected to close in the third quarter of 2010, is subject to a number of closing conditions, including clearance under the Hart-Scott-Rodino antitrust Improvements Act of 1976, as amended, and receipt of certain healthcare regulatory approvals.
Business Outlook
The Company intends to revise its 2010 business outlook upon the closing of the Regency Transaction.
Conference Call
The Company will host a conference call regarding its second quarter results and its business outlook on Friday, August 6, 2010, at 9:00am EDT. The domestic dial in number for the call is 1-866-788-0541. The international dial in number is 1-857-350-1679. The passcode for the call is 10011638. The conference call will be webcast simultaneously and can be accessed at Select Medical Holdings Corporation's website http://www.selectmedicalholdings.com/.
For those unable to participate in the conference call, a replay will be available until 11:59pm EDT, Friday, August 13, 2010. The replay number is 1-888-286-8010 (domestic) or 1-617-801-6888 (international). The passcode for the replay will be 70263211. The replay can also be accessed at Select Medical Holdings Corporation's website, http://www.selectmedicalholdings.com/.
Select Medical Holdings Corporation is a leading operator of specialty hospitals in the United States. As of June 30, 2010, Select operated 89 long term acute care hospitals and 6 acute medical rehabilitation hospitals in 25 states. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with approximately 953 locations in 36 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.selectmedicalholdings.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:
-- additional changes in government reimbursement for our services, including changes that will result from the expiration of the moratorium for long term acute care hospitals established by the SCHIP Extension Act of 2007, the American Recovery and Reinvestment Act, and the Patient Protection and Affordable Care Act may result in a reduction in net operating revenues, an increase in costs and a reduction in profitability; -- the failure of our specialty hospitals to maintain their Medicare certifications as such may cause our net operating revenues and profitability to decline; -- the failure of our facilities operated as "hospitals within hospitals" or HIHs, to qualify as hospitals separate from their host hospitals may cause our net operating revenues and profitability to decline; -- a government investigation or assertion that we have violated applicable regulations may result in sanctions or reputational harm and increased costs; -- future acquisitions or joint ventures may prove difficult or unsuccessful, use significant resources or expose us to unforeseen liabilities; -- private third-party payors for our services may undertake future cost containment initiatives that limit our future net operating revenues and profitability; -- the failure to maintain established relationships with the physicians in the areas we serve could reduce our net operating revenues and profitability; -- shortages in qualified nurses or therapists could increase our operating costs significantly; -- competition may limit our ability to grow and result in a decrease in our net operating revenues and profitability; -- the loss of key members of our management team could significantly disrupt our operations; -- the effect of claims asserted against us or lack of adequate available insurance could subject us to substantial uninsured liabilities; -- other factors discussed from time to time in our filings with the Securities and Exchange Commission, including factors under the heading "Risk Factors" in our annual report on Form 10-K. Investor inquiries: Joel T. Veit Vice President and Treasurer 717-972-1100 ir@selectmedicalcorp.com I. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (unaudited) For the Three Months Ended June 30, 2009 and 2010 2009 2010 % ---- ---- Change ------ Net operating revenues $559,535 $579,877 3.6% Costs and expenses: Cost of services 453,011 470,044 3.8% General and administrative 12,885 9,802 (23.9)% Bad debt expense 10,312 10,845 5.2% Depreciation and amortization 17,939 16,610 (7.4)% ------ ------ ----- Income from operations 65,388 72,576 11.0% Gain on early retirement of debt 3,562 - N/M Other income - 182 N/M Interest income 28 - N/M Interest expense (33,658) (29,279) (13.0)% ------- ------- ------ Income from operations before income taxes 35,320 43,479 23.1% Income tax expense 15,137 17,306 14.3% ------ ------ ---- Net income 20,183 26,173 29.7% Less: Net income attributable to non- controlling interests 391 1,711 337.6% --- ----- ----- Net income attributable to Select Medical Holdings Corporation 19,792 24,462 23.6% Less: Preferred dividends 6,508 - N/M ----- --- --- Net income available to common stockholders and participating securities $13,284 $24,462 84.1% ======= ======= ==== Income per common share: Basic $0.20 $0.15 Diluted $0.19 $0.15 Weighted average shares outstanding (1): Basic 60,632 159,709 Diluted 61,114 159,975 N/M = Not Meaningful (1) On September 30, 2009, Select completed an initial public offering that resulted in the issuance of 30,000 shares of common stock. On October 28, 2009, the underwriters exercised their over-allotment option to purchase an additional 3,603 shares of common stock. Upon completion of the initial public offering, Select's participating preferred stock converted into a total of 64,277 common shares. II. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (unaudited) For the Six Months Ended June 30, 2009 and 2010 2009 2010 % ---- ---- Change ------ Net operating revenues $1,120,707 $1,164,690 3.9% Costs and expenses: Cost of services 904,405 942,421 4.2% General and administrative 25,660 22,591 (12.0)% Bad debt expense 21,958 20,132 (8.3)% Depreciation and amortization 35,670 34,321 (3.8)% ------ ------ ----- Income from operations 133,014 145,225 9.2% Gain on early retirement of debt 15,316 - N/M Other income 316 N/M Interest income 80 N/M Interest expense (68,330) (59,321) (13.2)% ------- ------- ------ Income from operations before income taxes 80,080 86,220 7.7% Income tax expense 33,880 34,415 1.6% ------ ------ --- Net income 46,200 51,805 12.1% Less: Net income attributable to non-controlling interests 1,412 3,117 120.8% ----- ----- ----- Net income attributable to Select Medical Holdings Corporation 44,788 48,688 8.7% Less: Preferred dividends 12,870 - N/M ------ --- Net income available to common stockholders and participating securities $31,918 $48,688 52.5% ======= ======= ==== Income per common share: Basic $0.47 $0.30 Diluted $0.47 $0.30 Weighted average shares outstanding (1): Basic 60,509 159,686 Diluted 60,991 159,984 N/M = Not Meaningful (1) On September 30, 2009, Select completed an initial public offering that resulted in the issuance of 30,000 shares of common stock. On October 28, 2009, the underwriters exercised their over-allotment option to purchase an additional 3,603 shares common stock. Upon completion of the initial public offering, Select's participating preferred stock converted into a total of 64,277 common shares. III. Condensed Consolidated Balance Sheets (In thousands) (unaudited) December 31, June 30, 2009 2010 ---- ---- ASSETS Cash $83,680 $128,753 Accounts receivable, net 307,079 338,320 Current deferred tax asset 48,535 40,808 Prepaid income taxes 11,179 6,841 Other current assets 24,240 24,730 ------ ------ Total Current Assets 474,713 539,452 Property and equipment, net 466,131 459,567 Goodwill 1,548,269 1,548,269 Other identifiable intangibles 65,297 63,468 Assets held for sale 11,342 11,342 Other assets 36,481 38,025 Total Assets $2,602,233 $2,660,123 ========== ========== LIABILITIES AND EQUITY Payables and accruals $299,796 $296,972 Current portion of long-term debt 4,145 102,410 ----- ------- Total Current Liabilities 303,941 399,382 Long-term debt, net of current portion 1,401,426 1,305,069 Non-current deferred tax liability 66,768 66,604 Other non-current liabilities 60,543 61,712 Total equity 769,555 827,356 Total Liabilities and Equity $2,602,233 $2,660,123 ========== ========== IV. Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) For the Six Months Ended June 30, 2009 and 2010 2009 2010 ---- ---- Operating activities Net income $46,200 $51,805 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 35,670 34,321 Provision for bad debts 21,958 20,132 Gain on early retirement of debt (15,316) Loss from disposal of assets 117 660 Non-cash gain from interest rate swaps (316) Non-cash stock compensation expense 594 945 Amortization of debt discount 815 918 Changes in operating assets and liabilities, net of effects from acquisition of businesses: Accounts receivable (49,155) (51,373) Other current assets (667) (495) Other assets 4,242 (1,140) Accounts payable (3,693) (8,796) Due to third-party payors (216) 587 Accrued expenses and deferred income taxes 16,686 11,471 Net cash provided by operating activities 57,235 58,719 Investing activities Purchases of property and equipment (20,981) (26,454) Proceeds from sale of property 1,341 Net cash used in investing activities (19,640) (26,454) ------- ------- Financing activities Borrowings on revolving credit facility 138,000 - Payments on revolving credit facility (173,000) Payment on credit facility term loan (3,400) - Repurchase of 7 5/8% senior subordinated notes (30,114) Borrowings of other debt 5,184 5,015 Principal payments on seller and other debt (3,891) (4,442) Repurchase of common and preferred stock (80) - Proceeds from issuance of common stock 24 125 Payment of initial public offering costs (417) Proceeds from (repayment of) bank overdrafts (4,658) 14,201 Distributions to non-controlling interests (1,814) (2,091) Net cash provided by (used in) financing activities (74,166) 12,808 ------- ------ Net increase (decrease) in cash and cash equivalents (36,571) 45,073 Cash and cash equivalents at beginning of period 64,260 83,680 Cash and cash equivalents at end of period $27,689 $128,753 ======= ======== Supplemental Cash Flow Information Cash paid for interest $64,710 $55,928 Cash paid for taxes $11,090 $24,664 V. Key Statistics (unaudited) For the Three Months Ended June 30, 2009 and 2010 % 2009 2010 Change ---- ---- ------ Specialty Hospitals (a) Number of hospitals -end of period 92 95 3.3% Net operating revenues (,000) $386,331 $403,079 4.3% Number of patient days 252,710 264,898 4.8% Number of admissions 10,504 10,616 1.1% Net revenue per patient day (b) $1,491 $1,474 (1.1)% Adjusted EBITDA (,000) $70,960 $73,344 3.4% Adjusted EBITDA margin - all hospitals 18.4% 18.2% (1.1)% Adjusted EBITDA margin - same store hospitals (c) 18.4% 18.5% 0.5% Outpatient Rehabilitation Number of clinics -end of period 948 953 0.5% Net operating revenues (,000) $173,190 $176,785 2.1% Number of visits 1,163,341 1,172,212 0.8% Revenue per visit (d) $101 $101 0.0% Adjusted EBITDA (,000) $25,294 $25,956 2.6% Adjusted EBITDA margin 14.6% 14.7% 0.7% (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 direct 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, 2009 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. VI. Key Statistics (unaudited) For the Six Months Ended June 30, 2009 and 2010 % 2009 2010 Change ---- ---- ------ Specialty Hospitals (a) Number of hospitals -end of period 92 95 3.3% Net operating revenues (,000) $779,563 $814,764 4.5% Number of patient days 508,983 532,746 4.7% Number of admissions 21,309 21,717 1.9% Net revenue per patient day (b) $1,494 $1,483 (0.7)% Adjusted EBITDA (,000) $147,741 $156,241 5.8% Adjusted EBITDA margin - all hospitals 19.0% 19.2% 1.1% Adjusted EBITDA margin - same store hospitals (c) 19.0% 19.7% 3.7% Outpatient Rehabilitation Number of clinics -end of period 948 953 0.5% Net operating revenues (,000) $341,009 $349,850 2.6% Number of visits 2,259,637 2,298,170 1.7% Revenue per visit (d) $102 $101 (1.0)% Adjusted EBITDA (,000) $46,578 $46,474 (0.2)% Adjusted EBITDA margin 13.7% 13.3% (2.9)% (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 direct 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, 2009 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. VII. Net Income to Adjusted EBITDA Reconciliation (In thousands) (unaudited) For the Three and Six Months Ended June 30, 2009 and 2010
The following table reconciles net income to Adjusted EBITDA for Select. Adjusted EBITDA is used by Select to report its segment performance. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, stock compensation expense, other income and gain on early retirement of debt. 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 June Six Months Ended June 30, 30, ------------------------ ---------------------- 2009 2010 2009 2010 ---- ---- ---- ---- Net income $20,183 $26,173 $46,200 $51,805 Income tax expense 15,137 17,306 33,880 34,415 Other income - (182) - (316) Interest expense, net 33,630 29,279 68,250 59,321 Gain on early retirement of debt (3,562) - (15,316) - Stock compensation expense Included in general and administrative 241 111 483 291 Included in cost of services 58 326 111 654 Depreciation and amortization 17,939 16,610 35,670 34,321 Adjusted EBITDA $83,626 $89,623 $169,278 $180,491 ======= ======= ======== ======== Specialty hospitals $70,960 $73,344 $147,741 $156,241 Outpatient rehabilitation 25,294 25,956 46,578 46,474 Other (1) (12,628) (9,677) (25,041) (22,224) Adjusted EBITDA $83,626 $89,623 $169,278 $180,491 ======= ======= ======== ======== (1) Other primarily includes general and administrative costs. The following tables reconcile specialty hospital same store information. Three Months Ended ------------------ June 30, 2009 June 30, 2010 ------------- ------------- Specialty hospitals net operating revenue $386,331 $403,079 Less: Specialty hospitals in development, opened, acquired or closed after 1/1/09 2,550 10,748 ----- ------ Specialty hospitals same store net operating revenue $383,781 $392,331 ======== ======== Specialty hospitals Adjusted EBITDA $70,960 $73,344 Less: Specialty hospitals in development, opened, acquired or closed after 1/1/09 338 582 --- --- Specialty hospitals same store Adjusted EBITDA $70,622 $72,762 ======= ======= All specialty hospitals Adjusted EBITDA margin 18.4% 18.2% Specialty hospitals same store Adjusted EBITDA margin 18.4% 18.5% Six Months Ended ---------------- June 30, 2009 June 30, 2010 ------------- ------------- Specialty hospitals net operating revenue $779,563 $814,764 Less: Specialty hospitals in development, opened, acquired or closed after 1/1/09 5,572 19,575 ----- ------ Specialty hospitals same store net operating revenue $773,991 $795,189 ======== ======== Specialty hospitals Adjusted EBITDA $147,741 $156,241 Less: Specialty hospitals in development, opened, acquired or closed after 1/1/09 392 (490) --- ---- Specialty hospitals same store Adjusted EBITDA $147,349 $156,731 ======== ======== All specialty hospitals Adjusted EBITDA margin 19.0% 19.2% Specialty hospitals same store Adjusted EBITDA margin 19.0% 19.7% VIII. Reconciliation of Net Income Per Share to Adjusted Net Income Per Share (In thousands, except per share amounts) (unaudited) For the Three Months Ended June 30, 2009 and 2010 Per Share Per Share 2009 (a) 2010 (a) ---- --------- ---- --------- Net income $20,183 $0.33 $26,173 $0.16 Net income attributable to non- controlling interests 391 0.01 1,711 0.01 --- ---- ----- ---- Net income attributable to Select Medical Holdings Corporation 19,792 0.32 24,462 0.15 Less: Preferred dividends 6,508 0.10 - 0.00 ----- ---- --- ---- Net income available to common stockholders and participating securities 13,284 0.22 24,462 0.15 Gain on early retirement of debt (3,562) (0.06) - - Estimated income tax expense (b) 1,502 0.02 - - ----- ---- --- --- 11,224 0.18 24,462 0.15 Allocation to participating securities: Less: Earnings allocated to preferred stockholders 1,095 0.02 - 0.00 Less: Earnings allocated to unvested restricted stockholders 136 0.00 46 0.00 --- ---- --- ---- Adjusted net income available to common stockholders $9,993 $0.16 $24,416 $0.15 ====== ======= Adjustment for dilution 0.00 0.00 ---- ---- Adjusted net income available to common stockholders -diluted shares $0.16 $0.15 ===== ===== Weighted average common shares outstanding: Basic 60,632 159,709 Diluted 61,114 159,975 (a) Per share amounts for each period presented are based on basic weighted average common shares outstanding for all amounts except adjusted net income available to common stockholders -diluted shares, which is based on diluted shares outstanding. (b) Represents the tax expense on the adjustments to net income. IX. Reconciliation of Net Income Per Share to Adjusted Net Income Per Share (In thousands, except per share amounts) (unaudited) For the Six Months Ended June 30, 2009 and 2010 Per Share Per Share 2009 (a) 2010 (a) ---- --------- ---- --------- Net income $46,200 $0.76 $51,805 $0.32 Net income attributable to non- controlling interests 1,412 0.02 3,117 0.02 ----- ---- ----- ---- Net income attributable to Select Medical Holdings Corporation 44,788 0.74 48,688 0.30 Less: Preferred dividends 12,870 0.21 - 0.00 ------ ---- --- ---- Net income available to common stockholders and participating securities 31,918 0.53 48,688 0.30 Gain on early retirement of debt (15,316) (0.25) - - Estimated income tax expense (b) 6,457 0.10 - - ----- ---- --- --- 23,059 0.38 48,688 0.30 Allocation to participating securities: Less: Earnings allocated to preferred stockholders 2,250 0.04 - 0.00 Less: Earnings allocated to unvested restricted stockholders 320 0.00 97 0.00 --- ---- --- ---- Adjusted net income available to common stockholders $20,489 $0.34 $48,591 $0.30 ======= ======= Adjustment for dilution 0.00 0.00 ---- ---- Adjusted net income available to common stockholders - diluted shares $0.34 $0.30 ===== ===== Weighted average common shares outstanding: Basic 60,509 159,686 Diluted 60,991 159,984 (a) Per share amounts for each period presented are based on basic weighted average common shares outstanding for all amounts except adjusted net income available to common stockholders -diluted shares, which is based on diluted shares outstanding. (b) Represents the tax expense on the adjustments to net income.
Select Medical Holdings Corporation
CONTACT: Investor inquiries: Joel T. Veit, Vice President and Treasurer,
+1-717-972-1100, ir@selectmedicalcorp.com
Web Site: http://www.selectmedicalholdings.com/
