Select Medical Holdings Corp (SEM) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...

GuruFocus.com11-02

Revenue Growth: 6% increase compared to Q3 of the prior year. Consolidated Adjusted EBITDA: Grew 6% from $193.8 million to $205.5 million. Adjusted EBITDA Margin: 11.7% compared to 11.6% in prior year...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2480205817?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/h5CqgVMtTtKXZY4clwIf.Q--~B/aD0yNDA7dz0yNDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/47bed7a84feb85a67fbfd888aa61616d","is_english":true,"pubTime":"2024-11-02 15:02","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2480205817","market":"us","top_or_hot":-1,"title":"Select Medical Holdings Corp (SEM) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...","media":"GuruFocus.com","content":"<div>\n<p>Revenue Growth: 6% increase compared to Q3 of the prior year.\nConsolidated Adjusted EBITDA: Grew 6% from $193.8 million to $205.5 million.\nAdjusted EBITDA Margin: 11.7% compared to 11.6% in prior year...</p>\n\n<a href=\"https://finance.yahoo.com/news/select-medical-holdings-corp-sem-070218672.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Select Medical Holdings Corp (SEM) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSelect Medical Holdings Corp (SEM) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-02 15:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/select-medical-holdings-corp-sem-070218672.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue Growth: 6% increase compared to Q3 of the prior year.\nConsolidated Adjusted EBITDA: Grew 6% from $193.8 million to $205.5 million.\nAdjusted EBITDA Margin: 11.7% compared to 11.6% in prior year...</p>\n\n<a href=\"https://finance.yahoo.com/news/select-medical-holdings-corp-sem-070218672.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GRFFF","symbol_name":"GRUPO FINANCIERO BANAMEX SA DE CV","start_time":0,"source_url":"https://finance.yahoo.com/news/select-medical-holdings-corp-sem-070218672.html","article_id":"2480205817","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/h5CqgVMtTtKXZY4clwIf.Q--~B/aD0yNDA7dz0yNDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/47bed7a84feb85a67fbfd888aa61616d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480205817","pubTimestamp":1730530938,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue Growth: 6% increase compared to Q3 of the prior year.Consolidated Adjusted EBITDA: Grew 6% from $193.8 million to $205.5 million.Adjusted EBITDA Margin: 11.7% compared to 11.6% in prior year Q3.Critical Illness Recovery Hospital Revenue: 3% increase compared to the same quarter prior year.Critical Illness Recovery Hospital Adjusted EBITDA: 9% increase compared to the same quarter prior year.Inpatient Rehab Hospital Revenue: 14% increase compared to Q3 prior year.EPS: $0.43 per share for the third quarter compared to $0.38 per share in the same quarter prior year.Adjusted EPS: $0.50 per share compared to $0.46 per share Q3 of the prior year.Cash Flow from Operating Activities: $181 million in the third quarter.Days Sales Outstanding : 55 days as of September 30, 2024.Interest Expense: $55.4 million in the third quarter.Capital Expenditures: Expected to be in the range of $200 million to $250 million for the year.2024 Revenue Outlook: Expected to be in the range of $6.95 billion ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GRFFF":"GRUPO FINANCIERO BANAMEX SA DE CV","SEM":"Select Medical Holdings"},"translate_title":"Select Medical Holdings Corp(SEM)2024年第三季度收益看涨期权亮点：强劲的收入增长和...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SEM":1,"GRFFF":0.9},"content_text":"Revenue Growth: 6% increase compared to Q3 of the prior year.\nConsolidated Adjusted EBITDA: Grew 6% from $193.8 million to $205.5 million.\nAdjusted EBITDA Margin: 11.7% compared to 11.6% in prior year Q3.\nCritical Illness Recovery Hospital Revenue: 3% increase compared to the same quarter prior year.\nCritical Illness Recovery Hospital Adjusted EBITDA: 9% increase compared to the same quarter prior year.\nInpatient Rehab Hospital Revenue: 14% increase compared to Q3 prior year.\nInpatient Rehab Hospital Adjusted EBITDA: 12% increase compared to Q3 prior year.\nOccupancy Rate: Increased by 1% to 65% from 64% in the same quarter last year.\nEPS: $0.43 per share for the third quarter compared to $0.38 per share in the same quarter prior year.\nAdjusted EPS: $0.50 per share compared to $0.46 per share Q3 of the prior year.\nCash Flow from Operating Activities: $181 million in the third quarter.\nDays Sales Outstanding (DSO): 55 days as of September 30, 2024.\nInterest Expense: $55.4 million in the third quarter.\nCapital Expenditures: Expected to be in the range of $200 million to $250 million for the year.\n2024 Revenue Outlook: Expected to be in the range of $6.95 billion to $7.15 billion.\n2024 Adjusted EBITDA Outlook: Expected to be in the range of $865 million to $885 million.\n2024 Adjusted EPS Outlook: Expected to be in the range of $2.09 to $2.20.\n\n\nWarning! GuruFocus has detected 3 Warning Signs with SEM.\n\nRelease Date: November 01, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nSelect Medical Holdings Corp (NYSE:SEM) successfully completed Concentra's initial public offering, owning 81.74% of Concentra stock.\nThe company opened a new 48-bed inpatient rehab hospital in Jacksonville, Florida, in partnership with UF Health.\nAll four divisions exceeded prior year Q3 results in both revenue and adjusted EBITDA, with consolidated adjusted EBITDA growing by 6%.\nThe inpatient rehab division reported double-digit growth in both revenue and adjusted EBITDA for the third consecutive quarter.\nSelect Medical Holdings Corp (NYSE:SEM) reduced its consolidated leverage from 4.13x to 3.38x, showing strong financial management.\n\n Negative Points \n\nThe company incurred $3.7 million in start-up losses in the inpatient rehab division due to new hospital openings.\nOccupancy in the inpatient rehab division decreased by 2% compared to the prior year, attributed to new hospital start-up losses.\nConcentra experienced a 4% decrease in employer-based visits, which are reimbursed at lower rates.\nInterest expense increased to $55.4 million in the third quarter, up from $50.3 million in the same quarter prior year.\nThe outpatient rehab division's adjusted EBITDA margin remains relatively low at 9.1%, indicating room for improvement.\n\n Q & A Highlights \nQ: Can you provide more details on LTAC occupancy trends and whether staffing issues are affecting them? A: Martin Jackson, Senior Executive Vice President of Strategic Finance and Operations, explained that the occupancy rate for the past quarter was higher than the same quarter last year and was primarily due to seasonality, not staffing issues. The operators have managed high-cost outliers effectively, so there hasn't been much impact there.\nQ: What are your thoughts on capital deployment given the company's substantial free cash flow and optimal leverage range? A: Robert Ortenzio, Executive Chairman and Co-Founder, stated that the company aims to maintain a 3x leverage, which is beneficial for keeping options open. They plan to be opportunistic with capital deployment, focusing on development opportunities, deleveraging, or stock buybacks.\nQ: Are there any plans for LTAC development, and how does it fit into your capital deployment strategy? A: Robert Ortenzio mentioned that while there are opportunities for LTAC development, the focus is on less capital-intensive models like hospital within a hospital. The company prefers to allocate capital to inpatient rehab due to larger opportunities in that segment.\nQ: Can you clarify the IRF rates, particularly the Medicare side, and how they compare to previous expectations? A: Martin Jackson confirmed that the IRF rates are in the 3% range, aligning with the final rule's market basket net of productivity.\nQ: What progress can be expected in outpatient rehab margins, and what are the key drivers? A: Martin Jackson highlighted that clinical efficiency, particularly through technology, is a major focus. An internally developed system set to release at the end of the year is expected to significantly improve margins.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480205817"}