Select Medical Corp (1035688) SEC Filing 10-Q Quarterly report for the period ending Sunday, March 31, 2019

Exhibit 99.1

Select Medical Holdings Corporation Announces Results

For Its Fourth Quarter and Year Ended December 31, 2018

MECHANICSBURG, PENNSYLVANIA — February 21, 2019 — Select Medical Holdings Corporation (“Select Medical”) (NYSE: SEM) today announced results for its fourth quarter and year ended December 31, 2018.

For the fourth quarter ended December 31, 2018, net operating revenues increased 15.6% to $1,264.7 million, compared to $1,094.2 million for the same quarter, prior year. Income from operations increased 15.6% to $88.3 million for the fourth quarter ended December 31, 2018, compared to $76.4 million for the same quarter, prior year. Net income was $29.7 million for the fourth quarter ended December 31, 2018, compared to $121.1 million for the same quarter, prior year. For the fourth quarter ended December 31, 2018, net income included pre-tax losses on early retirement of debt of $3.9 million. For the fourth quarter ended December 31, 2017, net income included pre-tax U.S. HealthWorks acquisition costs of $2.8 million and an income tax benefit of $71.5 million resulting from the federal tax reform legislation enacted on December 22, 2017. Adjusted EBITDA increased 18.0% to $147.1 million for the fourth quarter ended December 31, 2018, compared to $124.6 million for the same quarter, prior year. Earnings per common share was $0.18 on a fully diluted basis for the fourth quarter ended December 31, 2018, compared to $0.75 for the same quarter, prior year. Adjusted earnings per common share was $0.20 on a fully diluted basis for the fourth quarter ended December 31, 2018, compared to $0.32 for the same quarter, prior year. For the fourth quarter ended December 31, 2018, adjusted earnings per common share excluded the pre-tax losses on early retirement of debt and their related tax effects. For the fourth quarter ended December 31, 2017, adjusted earnings per common share excluded the U.S. HealthWorks acquisition costs and its related tax effects as well as the income tax benefit resulting from the federal tax reform legislation. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table IX of this release. A reconciliation of earnings per common share to adjusted earnings per common share is presented in table X of this release.

For the year ended December 31, 2018, net operating revenues increased 16.4% to $5,081.3 million, compared to $4,365.2 million for the prior year. Income from operations increased 17.3% to $417.3 million for the year ended December 31, 2018, compared to $355.9 million for the prior year. Net income was $176.9 million for the year ended December 31, 2018, compared to $220.6 million for the prior year. For the year ended December 31, 2018, net income included pre-tax losses on early retirement of debt of $14.2 million, pre-tax non-operating gains of $9.0 million, and pre-tax U.S. HealthWorks acquisition costs of $2.9 million. For the year ended December 31, 2017, net income included a pre-tax loss on early retirement of debt of $19.7 million, pre-tax U.S. HealthWorks acquisition costs of $2.8 million, and an income tax benefit of $71.5 million resulting from the federal tax reform legislation enacted on December 22, 2017. Adjusted EBITDA increased 19.9% to $645.2 million for the year ended December 31, 2018, compared to $538.0 million for the prior year. Earnings per common share was $1.02 on a fully diluted basis for the year ended December 31, 2018, compared to $1.33 for the prior year. Adjusted earnings per common share was $1.03 on a fully diluted basis for the year ended