| Segment Information |
Segment Information The Company’s reportable segments consist of the critical illness recovery hospital segment, rehabilitation hospital segment, outpatient rehabilitation segment, and Concentra segment. Other activities include the Company’s corporate shared services, certain investments, and employee leasing services with non-consolidating subsidiaries. The Company evaluates the performance of its segments based on Adjusted EBITDA. Adjusted EBITDA is defined as earnings excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, transaction costs associated with the Concentra separation, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries. The Company has provided additional information regarding its reportable segments, such as total assets, which contributes to the understanding of the Company and provides useful information to the users of the consolidated financial statements. The following tables summarize selected financial data for the Company’s reportable segments. | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, | | | | | | | 2023 | | 2024 | | | | | | | (in thousands) | | Revenue: | | | | | | | | | Critical illness recovery hospital | | | | | $ | 593,926 | | | $ | 655,880 | | | Rehabilitation hospital | | | | | 231,462 | | | 265,700 | | | Outpatient rehabilitation | | | | | 295,903 | | | 303,158 | | | Concentra | | | | | 456,298 | | | 467,598 | | | Other | | | | | 87,391 | | | 96,473 | | | Total Company | | | | | $ | 1,664,980 | | | $ | 1,788,809 | | | Adjusted EBITDA: | | | | | | | | | Critical illness recovery hospital | | | | | $ | 76,773 | | | $ | 115,940 | | | Rehabilitation hospital | | | | | 47,216 | | | 61,400 | | | Outpatient rehabilitation | | | | | 30,199 | | | 24,928 | | | Concentra | | | | | 93,748 | | | 96,142 | | | Other | | | | | (33,873) | | | (36,493) | | | Total Company | | | | | $ | 214,063 | | | $ | 261,917 | | | Total assets: | | | | | | | | | Critical illness recovery hospital | | | | | $ | 2,507,265 | | | $ | 2,608,979 | | | Rehabilitation hospital | | | | | 1,203,069 | | | 1,233,828 | | | Outpatient rehabilitation | | | | | 1,397,823 | | | 1,423,740 | | | Concentra | | | | | 2,300,632 | | | 2,362,848 | | | Other | | | | | 290,947 | | | 228,868 | | | Total Company | | | | | $ | 7,699,736 | | | $ | 7,858,263 | | | Purchases of property, equipment, and other assets: | | | | | | | | | Critical illness recovery hospital | | | | | $ | 23,658 | | | $ | 15,941 | | | Rehabilitation hospital | | | | | 8,582 | | | 7,101 | | | Outpatient rehabilitation | | | | | 9,932 | | | 9,500 | | | Concentra | | | | | 14,400 | | | 17,231 | | | Other | | | | | 2,313 | | | 2,744 | | | Total Company | | | | | $ | 58,885 | | | $ | 52,517 | |
A reconciliation of Adjusted EBITDA to income before income taxes is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2023 | | | Critical Illness Recovery Hospital | | Rehabilitation Hospital | | Outpatient Rehabilitation | | Concentra | | Other | | Total | | | (in thousands) | | Adjusted EBITDA | $ | 76,773 | | | $ | 47,216 | | | $ | 30,199 | | | $ | 93,748 | | | $ | (33,873) | | | | | Depreciation and amortization | (16,637) | | | (6,888) | | | (8,457) | | | (18,310) | | | (2,133) | | | | | Stock compensation expense | — | | | — | | | — | | | (178) | | | (10,003) | | | | | Income (loss) from operations | $ | 60,136 | | | $ | 40,328 | | | $ | 21,742 | | | $ | 75,260 | | | $ | (46,009) | | | $ | 151,457 | | | | | | | | | | | | | | | Equity in earnings of unconsolidated subsidiaries | | | | | | | | | | | 8,556 | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest expense | | | | | | | | | | | (48,571) | | | Income before income taxes | | | | | | | | | | | $ | 111,442 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2024 | | | Critical Illness Recovery Hospital | | Rehabilitation Hospital | | Outpatient Rehabilitation | | Concentra | | Other | | Total | | | (in thousands) | | Adjusted EBITDA | $ | 115,940 | | | $ | 61,400 | | | $ | 24,928 | | | $ | 96,142 | | | $ | (36,493) | | | | | Depreciation and amortization | (17,157) | | | (7,135) | | | (9,181) | | | (18,485) | | | (2,111) | | | | | Stock compensation expense | — | | | — | | | — | | | (166) | | | (11,444) | | | | Concentra separation transaction costs(1) | — | | | — | | | — | | | (1,993) | | | (278) | | | | | Income (loss) from operations | $ | 98,783 | | | $ | 54,265 | | | $ | 15,747 | | | $ | 75,498 | | | $ | (50,326) | | | $ | 193,967 | | | | | | | | | | | | | | | Equity in earnings of unconsolidated subsidiaries | | | | | | | | | | | 10,421 | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest expense | | | | | | | | | | | (50,763) | | | Income before income taxes | | | | | | | | | | | $ | 153,625 | |
_______________________________________________________________________________ (1) Concentra separation transaction costs represent incremental consulting, legal, and audit-related fees incurred in connection with the Company’s planned separation of the Concentra segment into a new, publicly traded company and are included within general and administrative expenses on the Condensed Consolidated Statements of Operations.
|