Select Medical Holdings Corporation · NYSE:SEM
Select Medical — Investor Presentation (May 2016)
15 slides from Select Medical's investor presentation, May 10, 2016
Slide 1: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements based on current management expectations. Numerous factors, including those related to market conditions and those detailed from time-to-time in the Company’s filings with the Securities and Exchange Commission, may
Slide 2: Select Medical Overview
Headquartered in Mechanicsburg, Pennsylvania, Select Medical employs approximately 41,500 staff in the United States. SCALE AND EXPERTISE Leading provider of post-acute services with operations in 46 states and D.C. Founded in 1996 $4.0 Billion Net Revenue LTM Q1 ‘16 $429 Million Adjusted EBITDA LTM
Slide 3: Select Medical’s National Footprint
Select Medical’s National Footprint 109 Long-Term Acute Care Hospitals (LTACH) (27 States) 18 Inpatient Rehabilitation Hospitals (8 States) 1,615 Outpatient Rehabilitation Centers (37 States and D.C.) 301 Concentra Centers (38 States) As of 3/31/16 4 17 4 7 19 2 4 12 1 46 4 2 7 2 11 3 3 8 12 3 18 13
Slide 4: First Quarter 2016 Performance
Net Revenue $1.088B – 36.8% YOY Growth Adjusted EBITDA $128.6M – 30.0% YOY Growth EPS $0.42 (includes one-time gains and losses net of tax totaling $0.19) Adjusted EPS(1) $0.23 See SEM earnings press release dated May 5, 2016 for reconciliation of EPS to Adjusted EPS First Quarter 2016 Performance
Slide 5: Recent Developments: Physiotherapy Acquisition
Physiotherapy Acquisition (“Physio”) March 2016 acquired Physiotherapy Associates for $408.7 million 2015 Adjusted EBITDA of $32.7 million and expected synergies of $20.4 million 547 outpatient rehab clinics and 27 orthotic and prosthetic clinics Recent Developments
Slide 6: Recent Developments: Sale of Contract Therapy Business
Sale of Contract Therapy Business On March 31, 2016, completed the sale for $65.0 million LTM Q1 ‘16 Adjusted EBITDA of $6.7 million; margin 4.6% Recent Developments
Slide 7: Recent Developments: Kindred Hospital Swaps
Kindred Hospital Swaps In February, agreement with Kindred to swap 5 LTACs with 233 beds to Kindred in exchange for 4 LTACs with 287 beds. Select to receive the following hospitals: two in Cleveland, one in Atlanta, and one in Indiana Kindred to receive the following hospitals: two in Colorado, one
Slide 8: Concentra
Acquired from Humana in June 2015 in partnership with WCAS The leading provider of occupational health with 464 locations across 43 states Centers: 301 occupational health locations, with some consumer health Onsite Clinics: 130 locations at employer locations CBOCs: 33 Community Based Outpatient Cl
Slide 9: Post-Acquisition Update
Management transition Q1 2016 Revenue = $250.9 million Adjusted EBITDA = $34.2 million Adjusted EBITDA margin = 13.6% Synergy savings on schedule Post-Acquisition Update
Slide 10: Status of LTACHs in Criteria
Status of LTACHs in Criteria # of Hospitals 53 Post-Criteria Hospitals >= to pre-criteria census 1 21 Post-Criteria Hospitals <= to pre-criteria census 1 32 % of total compliant patients to total patients 89.3% Key Volume Indicators Total Total Post-Criteria ADC 1,469.8 % change in ADC Pre-Post -(3.
Slide 11: Revenue Mix
2014 2015 2015 (PF) Note: 2015(PF) is proforma to include full year ownership of Concentra plus Physiotherapy Associates Revenue Mix Specialty Hospitals 73% Outpatient 27% Specialty Hospitals 63% Outpatient 22% Concentra 15% Specialty Hospitals 53% Outpatient 25% Concentra 22%
Slide 12: Payor Mix
2014 2015 2015 (PF) Note: 2015(PF) is proforma to include full year ownership of Concentra plus Physiotherapy Associates Payor Mix Medicare 45% Non Medicare 55% Medicare 32% Non Medicare 68% Medicare 37% Non Medicare 63%
Slide 13: Financial Guidance 2016
Net Revenue $4,150M - $4,350M Adjusted EBITDA $500M - $540M EPS $0.87 - $1.06 Financial Guidance 2016
Slide 14: Investor Relations
selectmedical.com/investor-relations/for-investors
Slide 15: Select Medical: Improving Quality of Life
SP... MEDICAL Improving Quality of Life selectmedical.com/investor-relations/for-investors
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