Select Medical Holdings Corporation Announces Results for Fourth Quarter and Year Ended December 31, 2009
MECHANICSBURG, Pa., Feb. 18 /PRNewswire-FirstCall/ -- Select Medical Holdings Corporation ("Select") (NYSE: SEM), today announced results for its fourth quarter and year ended December 31, 2009.
For the fourth quarter ended December 31, 2009, net operating revenues increased 4.8% to $573.5 million compared to $547.1 million for the same quarter, prior year. Income from operations increased 21.6% to $69.9 million compared to $57.5 million for the same quarter, prior year. Net income attributable to Select increased to $29.9 million compared to $8.8 million for the same quarter, prior year. Additionally, net income before interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, other expense, long-term incentive compensation and non-controlling interest ("Adjusted EBITDA") for the fourth quarter increased 14.9% to $87.9 million compared to $76.5 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release. Income per common share was $0.19 on a fully diluted basis compared to $0.04 for the same quarter prior year.
For the year ended December 31, 2009, net operating revenues increased 4.0% to $2,239.9 million compared to $2,153.4 million for the prior year. Income from operations increased 20.1% to $235.8 million compared to $196.4 million for the prior year. Income from operations for the year ended December 31, 2009 includes compensation costs of $22.0 million Select incurred associated with its initial public offering of common stock. Net income attributable to Select increased to $75.3 million compared to $22.4 million for the prior year. Additionally, Adjusted EBITDA for the year ended December 31, 2009 increased 22.2% to $330.2 million compared to $270.3 million for the prior year. Earnings per share were $0.61 on a fully diluted basis compared to a loss of $0.04 per common share for the prior year.
Select's income per common share for the quarter and year ended December 31, 2009 includes certain non-recurring items, such as long-term incentive compensation, stock expense related to the grant of restricted stock upon Select's initial public offering and gains and losses related to the early retirement of debt. Other than the gains on early retirement of debt, the non-recurring items relate to Select's initial public offering of common stock. Excluding these items, on an adjusted basis income available to common stockholders was $0.20 per diluted share for the fourth quarter ended December 31, 2009 compared to $0.03 for the same quarter prior year and $0.67 per diluted share for the year ended December 31, 2009 compared to a loss per common share of $0.04 for the prior year. A reconciliation of net income per share to adjusted net income per share is attached to this release.
Specialty Hospitals
At December 31, 2009, Select operated 89 long term acute care hospitals and six acute medical rehabilitation hospitals. This compares to 88 long term acute care hospitals and five acute medical rehabilitation hospitals operated at December 31, 2008. For the fourth quarter of 2009, net operating revenues for all of Select's hospitals increased 4.6% to $401.4 million compared to $383.7 million for the same quarter, prior year. Total patient days for the fourth quarter of 2009 were 258,013, admissions were 10,899 and net revenue per patient day was $1,528. This compares to 249,626 days, 10,286 admissions and net revenue per patient day of $1,509 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods, patient days in the fourth quarter of 2009 were 238,583 and admissions were 10,096, compared to 235,381 days and 9,720 admissions in the same quarter, prior year. Adjusted EBITDA for the Specialty Hospital segment increased 13.8% to $78.2 million compared to $68.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 19.5% for the fourth quarter of 2009, compared to 17.9% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods was 21.1% for the fourth quarter of 2009, compared to 20.8% for the same quarter, prior year.
For the year ended December 31, 2009, net operating revenues for all of Select's hospitals increased 4.7% to $1,557.8 million compared to $1,488.4 million for the prior year. Total patient days for the year ended December 31, 2009 were 1,015,500, admissions were 42,674 and net revenue per patient day was $1,507. This compares to 1,005,719 days, 41,177 admissions and net revenue per patient day of $1,453 for the prior year. For the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods, patient days for the year ended December 31, 2009 were 944,275 and admissions were 39,666, compared to 964,114 days and 39,514 admissions in the prior year. Adjusted EBITDA for the Specialty Hospital segment for the year ended December 31, 2009 increased 22.8% to $290.4 million compared to $236.4 million for the prior year. The Adjusted EBITDA margin for the segment for the year ended December 31, 2009 was 18.6%, compared to 15.9% for the prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2008 and operated by Select throughout both periods was 20.1% for the year ended December 31, 2009, compared to 18.2% for the prior year.
Outpatient Rehabilitation
At December 31, 2009, Select operated 961 outpatient clinics. This compares to 956 outpatient clinics at December 31, 2008. For the fourth quarter of 2009, net operating revenues for the segment increased 5.4% to $172.1 million compared to $163.4 million for the same quarter, prior year. Adjusted EBITDA for the Outpatient Rehabilitation segment for the fourth quarter increased 26.8% to $21.6 million compared to $17.0 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment for the quarter was 12.5% compared to 10.4% in the same quarter, prior year. Patient visits for the quarter were 1,116,316 compared to 1,103,589 for the same quarter, prior year. Net revenue per visit for the quarter ended December 31, 2009 was $102 compared to $101 for the same quarter, prior year.
For the year ended December 31, 2009, net operating revenues for the segment increased 2.6% to $681.9 million compared to $664.8 million for the prior year. Adjusted EBITDA for the Outpatient Rehabilitation segment for the year ended December 31, 2009 increased 15.3% to $89.1 million compared to $77.3 million for the prior year. The Adjusted EBITDA margin for the year ended December 31, 2009 was 13.1% compared to 11.6% in the prior year. Patient visits for the year ended December 31, 2009 were 4,502,049 compared to 4,533,727 for the prior year. Net revenue per visit was $102 for both the year ended December 31, 2009 and the prior year.
Initial Public Offering of Common Stock
On September 30, 2009 Select completed an initial public offering of 30,000,000 shares at a price to the public of $10.00 per share, and on October 28, 2009, the underwriters exercised their over-allotment option to purchase an additional 3,602,700 shares at the same price. The total net proceeds to Select after deducting underwriting discounts and commissions and offering expenses was approximately $312.5 million. Select used the proceeds from the offering to repay $258.4 million of revolving and term loans outstanding under its senior secured credit facility and to make payments to executive officers under the Long Term Cash Incentive Plan of $18.0 million. The remaining proceeds were used for general corporate purposes.
Business Outlook
Select reaffirms its financial guidance for 2010 as disclosed in the presentation attached as an exhibit to Select's Form 8-K filed with the SEC on January 11, 2010.
Conference Call
Select will host a conference call regarding its fourth quarter and full year results and its business outlook on Friday, February 19, 2010, at 11:00 am EST. The domestic dial in number for the call is 1-800-291-5365. The international dial in number is 1-617-614-3922. The passcode for the call is 45516325. The conference call will be webcast simultaneously and can be accessed at Select Medical Holdings Corporation's website http://www.selectmedicalcorp.com.
Select Medical Holdings Corporation is a leading operator of specialty hospitals in the United States. As of December 31, 2009, Select operated 89 long term acute care hospitals and six acute medical rehabilitation hospitals in 25 states. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with approximately 961 locations in 37 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.selectmedicalcorp.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 may result in a reduction in net operating revenues, an increase in costs and a reduction in profitability;
- the failure of our long term acute care hospitals, or LTCHs, to maintain their status 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;
- implementation of modifications to the admissions policies for our inpatient rehabilitation facilities, as required to achieve compliance with Medicare guidelines, may result in a loss of patient volume at these hospitals and, as a result, may reduce our future net operating revenues and profitability;
- 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 our markets 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;
- the ability to obtain any necessary or desired waiver or amendment from our existing lenders may be difficult due to the current uncertainty in the credit markets; and
- the inability to draw funds under our senior secured credit facility because of lender defaults.
I. Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
For the Three Months Ended December 31, 2008 and 2009
%
2008 2009 Change
---- ---- ------
Net operating revenues $547,099 $573,543 4.8%
Costs and expenses:
Cost of services 448,819 466,664 4.0%
General and administrative 9,680 12,131 25.3%
Bad debt expense 12,504 7,194 (42.5)%
Depreciation and amortization 18,611 17,635 (5.2)%
------ ------ -----
Income from operations 57,485 69,919 21.6%
Gain (loss) on early retirement of debt 912 (2,870) N/M
Other expense (632) N/M
Interest income 196 10 (94.9)%
Interest expense (36,291) (30,688) (15.4)%
------- ------- ------
Income from operations before income taxes 22,302 35,739 60.3%
Income tax expense 12,201 4,440 (63.6)%
------ ----- ------
Net income 10,101 31,299 209.9%
Less: Net income attributable to non-
controlling interests 1,290 1,388 7.6%
----- ----- ---
Net income attributable to Select Medical
Holdings Corporation 8,811 29,911 239.5%
Less: Preferred dividends 6,403 - N/M
----- --- ---
Net income available to common stockholders
and participating securities $2,408 $29,911 N/M
====== ======= ===
Income per common share:
Basic $0.04 $0.19 375.0%
Diluted $0.04 $0.19 375.0%
N/M = Not Meaningful
II. Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
For the Year Ended December 31, 2008 and 2009
%
2008 2009 Change
---- ---- ------
Net operating revenues $2,153,362 $2,239,871 4.0%
Costs and expenses:
Cost of services 1,791,841 1,819,771 1.6%
General and administrative 45,523 72,409 59.1%
Bad debt expense 47,804 40,872 (14.5)%
Depreciation and amortization 71,786 70,981 (1.1)%
------ ------ -----
Income from operations 196,408 235,838 20.1%
Gain on early retirement of debt 912 13,575 N/M
Other expense - (632) N/M
Interest income 471 92 (80.5)%
Interest expense (145,894) (132,469) (9.2)%
-------- -------- -----
Income from operations before
income taxes 51,897 116,404 124.3%
Income tax expense 26,063 37,516 43.9%
------ ------ ----
Net income 25,834 78,888 205.4%
Less: Net income attributable to
non-controlling interests 3,393 3,606 6.3%
----- ----- ---
Net income attributable to Select
Medical Holdings Corporation 22,441 75,282 235.5%
Less: Preferred dividends 24,972 19,537 (21.8)%
------ ------ ------
Net income available to common
stockholders and participating
securities $(2,531) $55,745 N/M
======= ======= ===
Income per common share:
Basic ($0.04) $0.61 N/M
Diluted ($0.04) $0.61 N/M
N/M = Not Meaningful
III. Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
December 31, December 31,
2008 2009
------------ ------------
ASSETS
Cash $64,260 $83,680
Accounts receivable, net 312,418 307,079
Current deferred tax asset 61,925 48,535
Prepaid income taxes 7,362 11,179
Other current assets 20,897 24,240
------ ------
Total Current Assets 466,862 474,713
Property and equipment, net 471,065 466,131
Goodwill 1,506,661 1,548,269
Other identifiable intangibles 74,078 65,297
Assets held for sale 12,542 11,342
Other assets 48,261 36,481
------ ------
Total Assets $2,579,469 $2,602,233
========== ==========
LIABILITIES AND EQUITY
Payables and accruals $339,446 $299,796
Current portion of long-term debt 9,046 4,145
----- -----
Total Current Liabilities 348,492 303,941
Long-term debt, net of current
portion 1,770,879 1,401,426
Non-current deferred tax
liability 42,918 66,768
Other non-current liabilities 67,709 60,543
Preferred stock 515,872 -
Total equity (166,401) 769,555
-------- -------
Total Liabilities and Equity $2,579,469 $2,602,233
========== ==========
IV. Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
For the Year Ended December 31, 2008 and 2009
2008 2009
---- ----
Operating activities
Net income $25,834 $78,888
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 71,786 70,981
Provision for bad debts 47,804 40,872
Gain on early retirement of debt (912) (13,575)
Loss (gain) from disposal of assets 546 (122)
Non-cash loss from interest rate swaps - 632
Non-cash stock compensation expense 2,093 5,147
Amortization of debt discount 1,492 1,681
Changes in operating assets and
liabilities, net of effects from
acquisition of businesses:
Accounts receivable (88,545) (35,455)
Other current assets 8,230 (1,117)
Other assets 16,913 6,114
Accounts payable (1,351) 963
Due to third-party payors (9,363) (3,804)
Accrued expenses and deferred income
taxes 32,911 14,434
------ ------
Net cash provided by operating activities 107,438 165,639
Investing activities
Purchases of property and equipment (56,504) (57,877)
Proceeds from sale of business units 2,666 -
Proceeds from sale of property 743 1,341
Insurance proceeds 281 -
Acquisition of businesses, net of cash
acquired (7,624) (21,381)
------ -------
Net cash used in investing activities (60,438) (77,917)
------- -------
Financing activities
Proceeds from initial public offering,
net of fees - 315,866
Payment of initial public offering costs (1,326) (1,737)
Borrowings on revolving credit facility 407,000 193,000
Payments on revolving credit facility (377,000) (343,000)
Payment on credit facility term loan (6,800) (173,433)
Repurchase of 7 5/8% senior subordinated
notes (1,040) (30,114)
Repurchase of senior floating rate notes - (6,468)
Borrowings of other debt - 7,189
Principal payments on seller and other
debt (5,630) (7,275)
Repurchase of common and preferred stock (612) (80)
Proceeds from exercise of stock options 90 146
Proceeds from (repayment of) bank
overdrafts 6 (21,130)
Equity contribution and loans from non-
controlling interests - 1,500
Distributions to non-controlling
interests (1,957) (2,766)
------ ------
Net cash provided by (used in) financing
activities 12,731 (68,302)
------ -------
Net increase in cash and cash equivalents 59,731 19,420
Cash and cash equivalents at beginning of
period 4,529 64,260
----- ------
Cash and cash equivalents at end of
period $64,260 $83,680
======= =======
Supplemental Cash Flow Information
Cash paid for interest $135,838 $126,695
Cash paid for taxes $5,313 $18,084
V. Key Statistics
(unaudited)
For the Three Months Ended December 31, 2008 and 2009
%
2008 2009 Change
---- ---- ------
Specialty Hospitals (a)
Number of hospitals - end of period 93 95 2.2%
Net operating revenues (,000) $383,681 $401,399 4.6%
Number of patient days 249,626 258,013 3.4%
Number of admissions 10,286 10,899 6.0%
Net revenue per patient day (b) $1,509 $1,528 1.3%
Adjusted EBITDA (,000) $68,771 $78,248 13.8%
Adjusted EBITDA margin – all
hospitals 17.9% 19.5% 8.9%
Adjusted EBITDA margin – same store
hospitals (c) 20.8% 21.1% 1.4%
Outpatient Rehabilitation
Number of clinics - end of period 956 961 0.5%
Net operating revenues (,000) $163,385 $172,132 5.4%
Number of visits 1,103,589 1,116,316 1.2%
Revenue per visit (d) $101 $102 1.0%
Adjusted EBITDA (,000) $17,031 $21,596 26.8%
Adjusted EBITDA margin 10.4% 12.5% 20.2%
(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 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, 2008 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 Year Ended December 31, 2008 and 2009
%
2008 2009 Change
---- ---- ------
Specialty Hospitals (a)
Number of hospitals - end of period 93 95 2.2%
Net operating revenues (,000) $1,488,412 $1,557,821 4.7%
Number of patient days 1,005,719 1,015,500 1.0%
Number of admissions 41,177 42,674 3.6%
Net revenue per patient day (b) $1,453 $1,507 3.7%
Adjusted EBITDA (,000) $236,388 $290,370 22.8%
Adjusted EBITDA margin – all hospitals 15.9% 18.6% 17.0%
Adjusted EBITDA margin – same store
hospitals (c) 18.2% 20.1% 10.4%
Outpatient Rehabilitation
Number of clinics - end of period 956 961 0.5%
Net operating revenues (,000) $664,760 $681,892 2.6%
Number of visits 4,533,727 4,502,049 (0.7)%
Revenue per visit (d) $102 $102 0.0%
Adjusted EBITDA (,000) $77,279 $89,072 15.3%
Adjusted EBITDA margin 11.6% 13.1% 12.9%
(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 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, 2008 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 Months and Year Ended December 31, 2008 and 2009
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 expense, long-term incentive compensation, gain (loss) on early
retirement of debt and non-controlling interest. 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 Year Ended
December 31, December 31,
2008 2009 2008 2009
---- ---- ---- ----
Net income $8,811 $29,911 $22,441 $75,282
Non-controlling interest 1,290 1,388 3,393 3,606
Income tax expense 12,201 4,440 26,063 37,516
Other expense - 632 - 632
Interest expense, net 36,095 30,678 145,423 132,377
Loss (gain) on early
retirement of debt (912) 2,870 (912) (13,575)
Long-term incentive
compensation - - - 18,261
Stock compensation expense
Included in general and
administrative 337 181 1,953 4,775
Included in cost of services 59 171 140 372
Depreciation and amortization 18,611 17,635 71,786 70,981
------ ------ ------ ------
Adjusted EBITDA $76,492 $87,906 $270,287 $330,227
======= ======= ======== ========
Specialty hospitals $68,771 $78,248 $236,388 $290,370
Outpatient rehabilitation 17,031 21,596 77,279 89,072
Other (1) (9,310) (11,938) (43,380) (49,215)
------ ------- ------- -------
Adjusted EBITDA $76,492 $87,906 $270,287 $330,227
======= ======= ======== ========
(1) Other primarily includes general and administrative costs.
The following tables reconcile specialty hospital same store information.
Three Months Ended
------------------
December 31, December 31,
2008 2009
----------- ----------
Specialty hospitals net
operating revenue $383,681 $401,399
Less: Specialty hospitals
in development, opened or
closed after 1/1/08 19,907 28,921
------ ------
Specialty hospitals same
store net operating
revenue $363,774 $372,478
======== ========
Specialty hospitals
Adjusted EBITDA $68,771 $78,248
Less: Specialty hospitals
in development, opened or
closed after 1/1/08 (6,716) (460)
------ ----
Specialty hospitals same
store Adjusted EBITDA $75,487 $78,708
======= =======
All specialty hospitals
Adjusted EBITDA margin 17.9% 19.5%
Specialty hospitals same
store Adjusted EBITDA
margin 20.8% 21.1%
Year Ended
----------
December 31, December 31,
2008 2009
---------- ---------
Specialty hospitals net operating
revenue $1,488,412 $1,557,821
Less: Specialty hospitals in
development, opened or closed after
1/1/08 56,363 108,806
------ -------
Specialty hospitals same store net
operating revenue $1,432,049 $1,449,015
========== ==========
Specialty hospitals Adjusted EBITDA $236,388 $290,370
Less: Specialty hospitals in
development, opened or closed after
1/1/08 (24,303) (1,452)
------- ------
Specialty hospitals same store Adjusted
EBITDA $260,691 $291,822
======== ========
All specialty hospitals Adjusted EBITDA
margin 15.9% 18.6%
Specialty hospitals same store Adjusted
EBITDA margin 18.2% 20.1%
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 December 31, 2008 and 2009
Per Per
2008 Share (a) 2009 Share (a)
---- ------- ---- -------
Net income $10,101 $0.17 $31,299 $0.20
Net income attributable to
non-controlling interests 1,290 0.02 1,388 0.01
Net income attributable to
Select Medical Holdings
Corporation 8,811 0.15 29,911 0.19
Less: Preferred dividends 6,403 0.11 - 0.00
Net income available to
common stockholders and
participating securities 2,408 0.04 29,911 0.19
Long-term incentive
compensation related to
initial public offering - 0.00 - 0.00
Stock compensation related
to initial public offering - 0.00 - 0.00
Loss (gain) on early
retirement of debt (912) (0.01) 2,870 0.02
Estimated income tax
expense (benefit) (b) 490 0.00 (955) (0.01)
1,986 0.03 31,826 0.20
Allocation to participating
securities:
Less: Earnings allocated
to preferred stockholders 194 0.00 - 0.00
Less: Earnings allocated
to unvested restricted
stockholders 39 0.00 62 0.00
Adjusted net income
available to common
stockholders $1,753 $0.03 $31,764 $0.20
====== =======
Adjustment for dilution 0.00 0.00
Adjusted net income
available to common
stockholders - diluted
shares $0.03 $0.20
===== =====
Weighted average common
shares outstanding:
Basic 60,125 158,457
Diluted 60,609 158,889
(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 (benefit) 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 Year Ended December 31, 2008 and 2009
Per Per
2008 Share (a) 2009 Share (a)
---- ------- ---- -------
Net income $25,834 $0.44 $78,888 $0.92
Net income attributable
to non-controlling
interests 3,393 0.07 3,606 0.04
Net income attributable
to Select Medical
Holdings Corporation 22,441 0.37 75,282 0.88
Less: Preferred
dividends 24,972 0.41 19,537 0.23
Net income (loss)
available to common
stockholders and
participating
securities (2,531) (0.04) 55,745 0.65
Long-term incentive
compensation related
to initial public
offering - 0.00 18,261 0.21
Stock compensation
related to initial
public offering - 0.00 3,689 0.04
Gain on early
retirement of debt (912) (0.02) (13,575) (0.16)
Estimated income tax
expense (benefit) (b) 490 0.01 (2,786) (0.03)
(2,953) (0.05) 61,334 0.71
Allocation to
participating
securities:
Less: Earnings (loss)
allocated to preferred
stockholders (296) (0.01) 3,328 0.03
Less: Earnings
allocated to unvested
restricted
stockholders - 0.00 472 0.01
Adjusted net income
(loss) available to
common stockholders $(2,657) $(0.04) $57,534 $0.67
======= =======
Adjustment for dilution 0.00 0.00
Adjusted net income
(loss) available to
common stockholders -
diluted shares $(0.04) $0.67
====== =====
Weighted average common
shares outstanding:
Basic 59,566 85,587
Diluted 59,566 86,045
(a) Per share amounts for each period presented are based on basic
weighted average common shares outstanding for all amounts except
adjusted net income (loss) available to common stockholders - diluted
shares, which is based on diluted shares outstanding.
(b) Represents the tax expense (benefit) on the adjustments to net income.
SOURCE Select Medical Holdings Corporation
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