Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'SELECT MEDICAL HOLDINGS CORP | ' |
Entity Central Index Key | '0001320414 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 130,018,588 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $3,140 | $4,319 | $8,768 | $40,144 |
Accounts receivable, net of allowance for doubtful accounts of $40,815 and $41,021 at 2013 and 2014, respectively | 453,184 | 391,319 | ' | ' |
Current deferred tax asset | 16,042 | 17,624 | ' | ' |
Prepaid income taxes | 678 | ' | ' | ' |
Other current assets | 44,081 | 41,140 | ' | ' |
Total Current Assets | 517,125 | 454,402 | ' | ' |
Property and equipment, net | 526,349 | 509,102 | ' | ' |
Goodwill | 1,642,869 | 1,642,633 | ' | ' |
Other identifiable intangibles | 72,023 | 71,907 | ' | ' |
Other assets | 145,405 | 139,578 | ' | ' |
Total Assets | 2,903,771 | 2,817,622 | 2,845,055 | ' |
Current Liabilities: | ' | ' | ' | ' |
Bank overdrafts | 9,192 | 12,506 | ' | ' |
Current portion of long-term debt and notes payable | 14,778 | 17,565 | ' | ' |
Accounts payable | 98,638 | 88,285 | ' | ' |
Accrued payroll | 74,736 | 90,011 | ' | ' |
Accrued vacation | 64,127 | 59,730 | ' | ' |
Accrued interest | 10,985 | 12,297 | ' | ' |
Accrued other | 81,424 | 90,471 | ' | ' |
Income taxes payable | ' | 622 | ' | ' |
Due to third party payors | 1,981 | 37 | ' | ' |
Total Current Liabilities | 355,861 | 371,524 | ' | ' |
Long-term debt, net of current portion | 1,598,754 | 1,427,710 | ' | ' |
Non-current deferred tax liability | 95,981 | 96,287 | ' | ' |
Other non-current liabilities | 96,335 | 91,875 | ' | ' |
Total Liabilities | 2,146,931 | 1,987,396 | ' | ' |
Redeemable non-controlling interests | 11,238 | 11,584 | ' | ' |
Stockholders' Equity: | ' | ' | ' | ' |
Common stock | 130 | 140 | ' | ' |
Capital in excess of par | 410,721 | 474,729 | ' | ' |
Retained earnings (accumulated deficit) | 300,481 | 311,365 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | 711,332 | 786,234 | ' | ' |
Non-controlling interest | 34,270 | 32,408 | ' | ' |
Total Equity | 745,602 | 818,642 | ' | ' |
Total Liabilities and Equity | 2,903,771 | 2,817,622 | ' | ' |
Select | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 3,140 | 4,319 | 8,768 | 40,144 |
Accounts receivable, net of allowance for doubtful accounts of $40,815 and $41,021 at 2013 and 2014, respectively | 453,184 | 391,319 | ' | ' |
Current deferred tax asset | 16,042 | 17,624 | ' | ' |
Prepaid income taxes | 678 | ' | ' | ' |
Other current assets | 44,081 | 41,140 | ' | ' |
Total Current Assets | 517,125 | 454,402 | ' | ' |
Property and equipment, net | 526,349 | 509,102 | ' | ' |
Goodwill | 1,642,869 | 1,642,633 | ' | ' |
Other identifiable intangibles | 72,023 | 71,907 | ' | ' |
Other assets | 145,405 | 139,578 | ' | ' |
Total Assets | 2,903,771 | 2,817,622 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Bank overdrafts | 9,192 | 12,506 | ' | ' |
Current portion of long-term debt and notes payable | 14,778 | 17,565 | ' | ' |
Accounts payable | 98,638 | 88,285 | ' | ' |
Accrued payroll | 74,736 | 90,011 | ' | ' |
Accrued vacation | 64,127 | 59,730 | ' | ' |
Accrued interest | 10,985 | 12,297 | ' | ' |
Accrued other | 81,424 | 90,471 | ' | ' |
Income taxes payable | ' | 622 | ' | ' |
Due to third party payors | 1,981 | 37 | ' | ' |
Total Current Liabilities | 355,861 | 371,524 | ' | ' |
Long-term debt, net of current portion | 1,598,754 | 1,427,710 | ' | ' |
Non-current deferred tax liability | 95,981 | 96,287 | ' | ' |
Other non-current liabilities | 96,335 | 91,875 | ' | ' |
Total Liabilities | 2,146,931 | 1,987,396 | ' | ' |
Redeemable non-controlling interests | 11,238 | 11,584 | ' | ' |
Stockholders' Equity: | ' | ' | ' | ' |
Common stock | 0 | 0 | ' | ' |
Capital in excess of par | 880,584 | 869,576 | ' | ' |
Retained earnings (accumulated deficit) | -169,252 | -83,342 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | 711,332 | 786,234 | ' | ' |
Non-controlling interest | 34,270 | 32,408 | ' | ' |
Total Equity | 745,602 | 818,642 | ' | ' |
Total Liabilities and Equity | $2,903,771 | $2,817,622 | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $41,021 | $40,815 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 700,000,000 | 700,000,000 |
Common stock, shares issued | 130,002,788 | 140,260,968 |
Common stock, shares outstanding | 130,002,788 | 140,260,968 |
Select | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $41,021 | $40,815 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net operating revenues | $772,762 | $756,673 | ' | $1,535,340 | $1,506,628 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of services | 642,881 | 625,730 | ' | 1,281,645 | 1,250,634 |
General and administrative | 19,377 | 17,927 | ' | 37,500 | 35,325 |
Bad debt expense | 11,115 | 8,846 | ' | 22,133 | 18,167 |
Depreciation and amortization | 17,196 | 15,907 | ' | 33,425 | 31,709 |
Total costs and expenses | 690,569 | 668,410 | ' | 1,374,703 | 1,335,835 |
Income from operations | 82,193 | 88,263 | ' | 160,637 | 170,793 |
Other income and expense: | ' | ' | ' | ' | ' |
Loss on early retirement of debt | ' | -17,280 | 1,500 | -2,277 | -18,747 |
Equity in earnings of unconsolidated subsidiaries | 1,239 | 568 | ' | 2,147 | 1,626 |
Interest expense | -21,663 | -21,904 | ' | -42,279 | -45,362 |
Income before income taxes | 61,769 | 49,647 | ' | 118,228 | 108,310 |
Income tax expense | 23,775 | 19,769 | ' | 45,867 | 41,630 |
Net income | 37,994 | 29,878 | ' | 72,361 | 66,680 |
Less: Net income attributable to non-controlling interests | 2,653 | 2,098 | ' | 3,976 | 4,482 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | 35,341 | 27,780 | ' | 68,385 | 62,198 |
Income per common share: | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.27 | $0.20 | ' | $0.51 | $0.44 |
Diluted (in dollars per share) | $0.27 | $0.20 | ' | $0.51 | $0.44 |
Select | ' | ' | ' | ' | ' |
Net operating revenues | 772,762 | 756,673 | ' | 1,535,340 | 1,506,628 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of services | 642,881 | 625,730 | ' | 1,281,645 | 1,250,634 |
General and administrative | 19,377 | 17,927 | ' | 37,500 | 35,325 |
Bad debt expense | 11,115 | 8,846 | ' | 22,133 | 18,167 |
Depreciation and amortization | 17,196 | 15,907 | ' | 33,425 | 31,709 |
Total costs and expenses | 690,569 | 668,410 | ' | 1,374,703 | 1,335,835 |
Income from operations | 82,193 | 88,263 | ' | 160,637 | 170,793 |
Other income and expense: | ' | ' | ' | ' | ' |
Loss on early retirement of debt | ' | -17,280 | ' | -2,277 | -17,788 |
Equity in earnings of unconsolidated subsidiaries | 1,239 | 568 | ' | 2,147 | 1,626 |
Interest expense | -21,663 | -21,904 | ' | -42,279 | -42,952 |
Income before income taxes | 61,769 | 49,647 | ' | 118,228 | 111,679 |
Income tax expense | 23,775 | 19,769 | ' | 45,867 | 42,809 |
Net income | 37,994 | 29,878 | ' | 72,361 | 68,870 |
Less: Net income attributable to non-controlling interests | 2,653 | 2,098 | ' | 3,976 | 4,482 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | $35,341 | $27,780 | ' | $68,385 | $64,388 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Equity and Income (USD $) | Total | Select | Comprehensive Income | Comprehensive Income | Common Stock | Common Stock | Capital in Excess of Par | Capital in Excess of Par | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) | Non-controlling Interests | Non-controlling Interests |
In Thousands, except Share data, unless otherwise specified | Select | Select | Select | Select | Select | |||||||
Balance at Dec. 31, 2013 | $818,642 | $818,642 | ' | ' | $140 | $0 | $474,729 | $869,576 | $311,365 | ($83,342) | $32,408 | $32,408 |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | 140,261,000 | 0 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 71,775 | 71,775 | 71,775 | 71,775 | ' | ' | ' | ' | 68,385 | 68,385 | 3,390 | 3,390 |
Net income - attributable to redeemable non-controlling interests | ' | ' | 586 | 586 | ' | ' | ' | ' | ' | ' | ' | ' |
Total comprehensive income | ' | ' | 72,361 | 72,361 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance and vesting of restricted stock | 5,329 | ' | ' | ' | 0 | ' | 5,329 | ' | ' | ' | ' | ' |
Issuance and vesting of restricted stock (in shares) | ' | ' | ' | ' | 285,000 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares | -127,500 | ' | ' | ' | -11 | ' | -75,015 | ' | -52,474 | ' | ' | ' |
Repurchase of common shares (in shares) | -11,285,714 | ' | ' | ' | -11,286,000 | ' | ' | ' | ' | ' | ' | ' |
Stock option expense | 382 | ' | ' | ' | ' | ' | 382 | ' | ' | ' | ' | ' |
Exercise of stock options | 5,297 | ' | ' | ' | 1 | ' | 5,296 | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | ' | 743,000 | ' | ' | ' | ' | ' | ' | ' |
Additional investment by Holdings | ' | 5,297 | ' | ' | ' | ' | ' | 5,297 | ' | ' | ' | ' |
Dividends declared and paid | -27,153 | -154,653 | ' | ' | ' | ' | ' | ' | -27,153 | -154,653 | ' | ' |
Contribution related to restricted stock awards and stock option issuances by Holdings | ' | 5,711 | ' | ' | ' | ' | ' | 5,711 | ' | ' | ' | ' |
Distributions to non-controlling interests | -1,267 | -1,267 | ' | ' | ' | ' | ' | ' | ' | ' | -1,267 | -1,267 |
Other | 97 | 97 | ' | ' | ' | ' | ' | ' | 358 | 358 | -261 | -261 |
Balance at Jun. 30, 2014 | $745,602 | $745,602 | ' | ' | $130 | $0 | $410,721 | $880,584 | $300,481 | ($169,252) | $34,270 | $34,270 |
Balance (in shares) at Jun. 30, 2014 | ' | ' | ' | ' | 130,003,000 | 0 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net income | $72,361 | $66,680 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 33,425 | 31,709 |
Provision for bad debts | 22,133 | 18,167 |
Equity in earnings of unconsolidated subsidiaries | -2,147 | -1,626 |
Loss on early retirement of debt | 2,277 | 18,747 |
Loss from disposal of assets | 143 | 81 |
Non-cash stock compensation expense | 4,120 | 3,537 |
Amortization of debt discount, premium and issuance costs | 3,849 | 4,588 |
Deferred income taxes | 1,275 | 3,192 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' |
Accounts receivable | -84,249 | -83,832 |
Other current assets | -2,935 | -5,894 |
Other assets | -3,462 | 144 |
Accounts payable | 10,343 | -2,665 |
Due to third-party payors | 1,944 | 5,217 |
Accrued expenses | -16,030 | -28,203 |
Income taxes | -878 | -7,819 |
Net cash provided by operating activities | 42,169 | 22,023 |
Investing activities | ' | ' |
Purchases of property and equipment | -50,493 | -27,962 |
Investment in businesses, net of distributions | -175 | -28,716 |
Acquisition of businesses, net of cash acquired | -454 | -171 |
Net cash used in investing activities | -51,122 | -56,849 |
Financing activities | ' | ' |
Borrowings on revolving credit facility | 515,000 | 455,000 |
Payments on revolving credit facility | -425,000 | -480,000 |
Borrowings on credit facility term loans, net of discount | ' | 298,500 |
Payments on credit facility term loans | -33,994 | -592,615 |
Issuance of 6.375% senior notes, includes premium | 111,650 | 600,000 |
Repurchase of senior floating rate notes | ' | -167,300 |
Repurchase of 7 5/8% senior subordinated notes | ' | -70,000 |
Borrowings of other debt | 6,111 | 6,909 |
Principal payments on other debt | -7,049 | -4,673 |
Debt issuance costs | -4,434 | -18,583 |
Dividends paid | -27,153 | -13,963 |
Repurchase of common stock | -127,500 | -9,983 |
Proceeds from issuance of common stock | 5,297 | ' |
Proceeds from (repayment of) bank overdrafts | -3,314 | 1,625 |
Distributions to non-controlling interests | -1,840 | -1,467 |
Net cash provided by (used in) financing activities | 7,774 | 3,450 |
Net decrease in cash and cash equivalents | -1,179 | -31,376 |
Cash and cash equivalents at beginning of period | 4,319 | 40,144 |
Cash and cash equivalents at end of period | 3,140 | 8,768 |
Supplemental Cash Flow Information | ' | ' |
Cash paid for interest | 39,107 | 53,914 |
Cash paid for taxes | 45,471 | 46,832 |
Select | ' | ' |
Operating activities | ' | ' |
Net income | 72,361 | 68,870 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 33,425 | 31,709 |
Provision for bad debts | 22,133 | 18,167 |
Equity in earnings of unconsolidated subsidiaries | -2,147 | -1,626 |
Loss on early retirement of debt | 2,277 | 17,788 |
Loss from disposal of assets | 143 | 81 |
Non-cash stock compensation expense | 4,120 | 3,537 |
Amortization of debt discount, premium and issuance costs | 3,849 | 4,499 |
Deferred income taxes | 1,275 | 3,192 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' |
Accounts receivable | -84,249 | -83,832 |
Other current assets | -2,935 | -5,894 |
Other assets | -3,462 | 144 |
Accounts payable | 10,343 | -2,665 |
Due to third-party payors | 1,944 | 5,217 |
Accrued expenses | -16,030 | -24,945 |
Income taxes | -878 | -6,640 |
Net cash provided by operating activities | 42,169 | 27,602 |
Investing activities | ' | ' |
Purchases of property and equipment | -50,493 | -27,962 |
Investment in businesses, net of distributions | -175 | -28,716 |
Acquisition of businesses, net of cash acquired | -454 | -171 |
Net cash used in investing activities | -51,122 | -56,849 |
Financing activities | ' | ' |
Borrowings on revolving credit facility | 515,000 | 455,000 |
Payments on revolving credit facility | -425,000 | -480,000 |
Borrowings on credit facility term loans, net of discount | ' | 298,500 |
Payments on credit facility term loans | -33,994 | -592,615 |
Issuance of 6.375% senior notes, includes premium | 111,650 | 600,000 |
Repurchase of 7 5/8% senior subordinated notes | ' | -70,000 |
Borrowings of other debt | 6,111 | 6,909 |
Principal payments on other debt | -7,049 | -4,673 |
Debt issuance costs | -4,434 | -18,583 |
Dividends paid | -154,653 | -196,825 |
Equity investment by Holdings | 5,297 | ' |
Proceeds from (repayment of) bank overdrafts | -3,314 | 1,625 |
Distributions to non-controlling interests | -1,840 | -1,467 |
Net cash provided by (used in) financing activities | 7,774 | -2,129 |
Net decrease in cash and cash equivalents | -1,179 | -31,376 |
Cash and cash equivalents at beginning of period | 4,319 | 40,144 |
Cash and cash equivalents at end of period | 3,140 | 8,768 |
Supplemental Cash Flow Information | ' | ' |
Cash paid for interest | 39,107 | 48,335 |
Cash paid for taxes | $45,471 | $46,832 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | 28-May-13 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 22, 2013 |
6.375% senior subordinated notes | 6.375% senior subordinated notes | 6.375% senior subordinated notes | 6.375% senior subordinated notes | 6.375% senior subordinated notes | 6.375% senior subordinated notes | 6.375% senior subordinated notes | 7 5/8% senior subordinated notes | 7 5/8% senior subordinated notes | 7 5/8% senior subordinated notes | 7 5/8% senior subordinated notes | |
Select | Select | Select | Select | Select | Select | Select | |||||
Indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of debt (as a percent) | 6.38% | 6.38% | 6.38% | 6.38% | 6.38% | 6.38% | 6.38% | 7.63% | 7.63% | 7.63% | 7.63% |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The unaudited consolidated financial statements of Select Medical Holdings Corporation (“Holdings”) and Select Medical Corporation (“Select”) as of June 30, 2014 and for the three and six month periods ended June 30, 2013 and 2014 have been prepared in accordance with generally accepted accounting principles (“GAAP”). In the opinion of management, such information contains all adjustments, which are normal and recurring in nature, necessary for a fair statement of the financial position, results of operations and cash flow for such periods. All significant intercompany transactions and balances have been eliminated. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2014. Holdings and Select and their subsidiaries are collectively referred to as the “Company.” The consolidated financial statements of Holdings include the accounts of its wholly-owned subsidiary Select. Holdings conducts substantially all of its business through Select and its subsidiaries. | |
Certain information and disclosures normally included in the notes to consolidated financial statements have been condensed or omitted consistent with the rules and regulations of the Securities and Exchange Commission (the “SEC”), although the Company believes the disclosure is adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013 contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2014. | |
Accounting_Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies | ' |
Accounting Policies | ' |
2. Accounting Policies | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes most of the current revenue recognition requirements. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. This guidance is effective for the Company in the first quarter of 2017 and early application is not permitted. Entities must adopt the new guidance using one of two retrospective application methods. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The revised guidance is effective for annual fiscal periods beginning after December 15, 2014. Early adoption is permitted and the Company intends to prospectively adopt ASU No. 2014-08, as applicable. | |
Intangible_Assets
Intangible Assets | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Intangible Assets | ' | ||||||||||
Intangible Assets | ' | ||||||||||
3. Intangible Assets | |||||||||||
The gross carrying amounts of the Company’s indefinite-lived intangible assets consist of the following: | |||||||||||
December 31, | June 30, | ||||||||||
2013 | 2014 | ||||||||||
(in thousands) | |||||||||||
Goodwill | $ | 1,642,633 | $ | 1,642,869 | |||||||
Trademarks | 57,709 | 57,709 | |||||||||
Certificates of need | 12,115 | 12,231 | |||||||||
Accreditations | 2,083 | 2,083 | |||||||||
Total | $ | 1,714,540 | $ | 1,714,892 | |||||||
The Company’s accreditations and trademarks have renewal terms. The costs to renew these intangibles are expensed as incurred. At June 30, 2014, the accreditations and trademarks have a weighted average time until next renewal of approximately 1.5 years and 6.0 years, respectively. | |||||||||||
The changes in the carrying amount of goodwill for the Company’s reportable segments for the six months ended June 30, 2014 are as follows: | |||||||||||
Specialty | Outpatient | Total | |||||||||
Hospitals | Rehabilitation | ||||||||||
(in thousands) | |||||||||||
Balance as of December 31, 2013 | $ | 1,334,615 | $ | 308,018 | $ | 1,642,633 | |||||
Goodwill acquired during the period | — | 246 | 246 | ||||||||
Purchase accounting adjustment | (10 | ) | — | (10 | ) | ||||||
Balance as of June 30, 2014 | $ | 1,334,605 | $ | 308,264 | $ | 1,642,869 |
Share_Repurchase
Share Repurchase | 6 Months Ended |
Jun. 30, 2014 | |
Share Repurchase | ' |
Share Repurchase | ' |
4. Share Repurchase | |
On April 30, 2014, Holdings’ board of directors authorized an increase of $150.0 million in the capacity of its common stock repurchase program from $350.0 million to $500.0 million and extended the program until December 31, 2016. Holdings repurchased 11,285,714 shares of common stock at a total cost of $127.5 million, or an average of $11.30 per share, during the six months ended June 30, 2014. The shares were repurchased from Welsh, Carson, Anderson & Stowe IX, L.P. and WCAS Capital Partners IV, L.P. pursuant to stock purchase agreements dated February 26, 2014 and May 5, 2014. The common stock repurchase program has available capacity of $198.9 million as of June 30, 2014. | |
Indebtedness
Indebtedness | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Indebtedness | ' | |||||||
Indebtedness | ' | |||||||
5. Indebtedness | ||||||||
The components of long-term debt and notes payable are as follows: | ||||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
(in thousands) | ||||||||
6.375% senior notes (1) | $ | 600,000 | $ | 711,580 | ||||
Senior secured credit facilities: | ||||||||
Revolving loan | 20,000 | 110,000 | ||||||
Term loans (2) | 807,815 | 775,329 | ||||||
Other | 17,460 | 16,623 | ||||||
Total debt | 1,445,275 | 1,613,532 | ||||||
Less: current maturities | 17,565 | 14,778 | ||||||
Total long-term debt | $ | 1,427,710 | $ | 1,598,754 | ||||
(1) Includes unamortized premium of $1.6 million at June 30, 2014. | ||||||||
(2) Includes unamortized discounts of $6.3 million and $4.8 million at December 31, 2013 and June 30, 2014, respectively. | ||||||||
Senior Secured Credit Facilities | ||||||||
On June 1, 2011, Select entered into its existing senior secured credit agreement that provided for $1.15 billion in senior secured credit facilities. The following discussion summarizes amendments and significant transactions affecting its senior secured credit facilities. | ||||||||
On August 13, 2012, Select entered into an additional credit extension amendment to its senior secured credit facilities providing for a $275.0 million series A term loan at the same interest rate and with the same term as the original term loan. | ||||||||
On February 20, 2013, Select entered into a credit extension amendment to its senior secured credit facilities providing for a $300.0 million series B term loan. Select used the borrowings under the series B term loan to redeem all of its outstanding 7 5/8% senior subordinated notes due 2015 on March 22, 2013, to finance Holdings’ redemption of all of its senior floating rate notes due 2015 on March 22, 2013 and to repay a portion of the balance outstanding under Select’s revolving credit facility. | ||||||||
On May 28, 2013, Select issued and sold $600.0 million aggregate principal amount of 6.375% senior notes due June 1, 2021. Select used the proceeds of the 6.375% senior notes to pay a portion of the amounts then outstanding on the original term loan and the series A term loan and to pay related fees and expenses. | ||||||||
On June 3, 2013, Select amended its existing senior secured credit facilities in order to, among other things: | ||||||||
· extend the maturity date on $293.3 million of its $300.0 million revolving credit facility from June 1, 2016 to March 1, 2018; | ||||||||
· convert the remaining original term loan and series A term loan to a new series C term loan, and lower the interest rate payable on the series C term loan from Adjusted LIBO plus 3.75%, or Alternate Base Rate plus 2.75%, to Adjusted LIBO plus 3.00%, or Alternate Base Rate plus 2.00%, and amend the provision of the series C term loan from providing that Adjusted LIBO will at no time be less than 1.75% to providing that Adjusted LIBO will at no time be less than 1.00%; | ||||||||
· lower the interest rate payable on the series B term loan from Adjusted LIBO plus 3.75%, or Alternate Base Rate plus 2.75%, to Adjusted LIBO plus 3.25%, or Alternate Base Rate plus 2.25%; | ||||||||
· amend the restrictive covenants governing the senior secured credit facilities in order to allow for unlimited restricted payments so long as there is no event of default under the senior secured credit facilities and the total pro forma ratio of total indebtedness to Consolidated EBITDA (as defined in the senior secured credit facilities) is less than or equal to 2.75 to 1.00; and | ||||||||
· amend the definition of “Available Amount” in a manner the effect of which was to increase the amount available for investments, restricted payments and payment of specified indebtedness. | ||||||||
On March 4, 2014, Select made a principal prepayment of $34.0 million associated with its term loans in accordance with the provision in its senior secured credit facilities agreement that requires mandatory prepayments of term loans resulting from excess cash flow as defined in the senior secured credit facilities. | ||||||||
On March 4, 2014, Select amended its senior secured credit facilities in order to, among other things: | ||||||||
· convert the remaining series B term loan to a new series D term loan, and lower the interest rate payable on the series D term loan from Adjusted LIBO plus 3.25%, or Alternate Base Rate plus 2.25%, to Adjusted LIBO plus 2.75%, or Alternate Base Rate plus 1.75%; | ||||||||
· set the maturity date of the series D term loan at December 20, 2016; | ||||||||
· convert the remaining series C term loan to a new series E term loan, and lower the interest rate payable on the series E term loan from Adjusted LIBO plus 3.00% (subject to an Adjusted LIBO rate floor of 1.00%), or Alternate Base Rate plus 2.00%, to Adjusted LIBO plus 2.75% (subject to an Adjusted LIBO rate floor of 1.00%), or Alternate Base Rate plus 1.75%; | ||||||||
· set the maturity date of the series E term loan at June 1, 2018; | ||||||||
· beginning with the quarter ending March 31, 2014, increase the quarterly compliance threshold set forth in the leverage ratio financial maintenance covenant to a level of 5.00 to 1.00 from 4.50 to 1.00; | ||||||||
· provide for a prepayment premium of 1.00% if the senior secured credit facilities are amended at any time prior to September 4, 2014 in the case of the series D term loans and March 4, 2015 in the case of the series E term loans and such amendment reduces the yield applicable to such loans; and | ||||||||
· amend the definition of “Available Amount” in a manner the effect of which was to increase the amount available for investments, restricted payments and the payment of specified indebtedness. | ||||||||
At June 30, 2014, Select’s senior secured credit facilities provide for senior secured financing consisting of: | ||||||||
· a $300.0 million, revolving credit facility, $293.3 million of which matures on March 1, 2018 and the remaining $6.7 million maturing on June 1, 2016, including a $75.0 million sublimit for the issuance of standby letters of credit and a $25.0 million sublimit for swingline loans; | ||||||||
· a $284.6 million series D term loan, maturing on December 20, 2016; and | ||||||||
· a $495.6 million series E term loan, maturing on June 1, 2018. | ||||||||
All borrowings under Select’s senior secured credit facilities are subject to the satisfaction of required conditions, including the absence of a default at the time of and after giving effect to such borrowing and the accuracy of the representations and warranties of the borrowers. | ||||||||
The interest rates per annum applicable to borrowings under Select’s senior secured credit facilities are, at its option, equal to either an Alternate Base Rate or an Adjusted LIBO rate for a one, two, three or six month interest period, or a nine or twelve month period if available, in each case, plus an applicable margin percentage. The Alternate Base Rate is the greatest of (1) JPMorgan Chase Bank, N.A.’s prime rate, (2) one-half of 1% over the weighted average of rates on overnight Federal funds as published by the Federal Reserve Bank of New York and (3) the Adjusted LIBO rate from time to time for an interest period of one month, plus 1.00%. The Adjusted LIBO rate is, with respect to any interest period, the London interbank offered rate for such interest period, adjusted for any applicable statutory reserve requirements. | ||||||||
Borrowings under the series D term loan bear interest at a rate equal to Adjusted LIBO plus 2.75%, or Alternate Base Rate plus 1.75%. Borrowings under the series E term loan bear interest at a rate equal to Adjusted LIBO plus 2.75%, or Alternate Base Rate plus 1.75%. The Adjusted LIBO for the series E term loan will at no time be less than 1.00%. | ||||||||
Borrowings under the revolving credit facility bear interest at a rate equal to Adjusted LIBO plus a percentage ranging from 2.75% to 3.75%, or Alternate Base Rate plus a percentage ranging from 1.75% to 2.75%, in each case based on Select’s ratio of total indebtedness to Consolidated EBITDA (as defined in the senior secured credit facilities). | ||||||||
On the last day of each calendar quarter Select is required to pay each lender a commitment fee in respect of any unused commitments under the revolving credit facility, which is currently 0.50% per annum subject to adjustment based upon the ratio of Select’s total indebtedness to Consolidated EBITDA (as defined in the senior secured credit facilities). | ||||||||
Subject to exceptions, Select’s senior secured credit facilities require mandatory prepayments of term loans in amounts equal to: | ||||||||
50% (as may be reduced based on Select’s ratio of total indebtedness to Consolidated EBITDA (as defined in the senior secured credit facilities)) of Select’s annual excess cash flow; | ||||||||
100% of the net cash proceeds from non-ordinary course asset sales or other dispositions, or as a result of a casualty or condemnation event, subject to reinvestment rights and certain other exceptions; and | ||||||||
100% of the net cash proceeds from certain incurrences of debt. | ||||||||
Beginning on March 31, 2015, the senior secured credit facilities principal amount will amortize as follows: | ||||||||
the series D term loan has quarterly principal repayment requirements of $0.7 million until maturity, at which time the remaining balance of $279.5 million is due on December 20, 2016; and | ||||||||
the series E term loan has quarterly principal repayment requirements of $1.3 million until maturity, at which time the remaining balance of $479.2 million is due on June 1, 2018. | ||||||||
Select’s senior secured credit facilities are guaranteed by Holdings, Select and substantially all of its current subsidiaries, and will be guaranteed by substantially all of Select’s future subsidiaries and secured by substantially all of Select’s existing and future property and assets and by a pledge of its capital stock and the capital stock of its subsidiaries. | ||||||||
Select’s senior secured credit facilities require that it comply on a quarterly basis with certain financial covenants, including a maximum leverage ratio test. | ||||||||
In addition, Select’s senior secured credit facilities include negative covenants, subject to significant exceptions, restricting or limiting its ability and the ability of Holdings and Select’s restricted subsidiaries, to, among other things: | ||||||||
· incur, assume, permit to exist or guarantee additional debt and issue or sell or permit any subsidiary to issue or sell preferred stock; | ||||||||
· amend, modify or waiver any rights under the certificate of indebtedness, credit agreements, certificate of incorporation, bylaws or other organizational documents which would be materially adverse to the creditors; | ||||||||
· pay dividends or other distributions on, redeem, repurchase, retire or cancel capital stock; | ||||||||
· purchase or acquire any debt or equity securities of, make any loans or advances to, guarantee any obligation of, or make any other investment in, any other company; | ||||||||
· incur or permit to exist certain liens on property or assets owned or accrued or assign or sell any income or revenues with respect to such property or assets; | ||||||||
· sell or otherwise transfer property or assets to, purchase or otherwise receive property or assets from, or otherwise enter into transactions with affiliates; | ||||||||
· merge, consolidate or amalgamate with another company or permit any subsidiary to merge, consolidate or amalgamate with another company; | ||||||||
· sell, transfer, lease or otherwise dispose of assets, including any equity interests; | ||||||||
· repay, redeem, repurchase, retire or cancel any subordinated debt; | ||||||||
· incur capital expenditures; | ||||||||
· engage to any material extent in any business other than business of the type currently conducted by Select or reasonably related businesses; and | ||||||||
· incur obligations that restrict the ability of its subsidiaries to incur or permit to exist any liens on Select’s property or assets or to make dividends or other payments to Select. | ||||||||
Select’s senior secured credit facilities also contain certain representations and warranties, affirmative covenants and events of default. The events of default include payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of bankruptcy, certain events under ERISA, material judgments, actual or asserted failure of any guaranty or security document supporting Select’s senior secured credit facilities to be in full force and effect and any change of control. If such an event of default occurs, the lenders under Select’s senior secured credit facilities will be entitled to take various actions, including the acceleration of amounts due under the senior secured credit facilities and all actions permitted to be taken by a secured creditor. | ||||||||
At June 30, 2014, Select had outstanding borrowings of $780.2 million (excluding unamortized original issue discounts of $4.8 million) under the term loans and borrowings of $110.0 million (excluding letters of credit) under the revolving loan portion of the senior secured credit facilities. Select had $147.7 million of availability under its revolving credit facility (after giving effect to $42.3 million of outstanding letters of credit) at June 30, 2014. | ||||||||
The applicable margin percentage for borrowings under Select’s revolving loan is subject to change based upon the ratio of Select’s leverage ratio (as defined in the senior secured credit facility). The applicable interest rate for revolving loans as of June 30, 2014 was (1) Alternate Base plus 2.75% for alternate base rate loans and (2) LIBO plus 3.75% for adjusted LIBO rate loans. | ||||||||
Select’s senior secured credit facility requires it to maintain certain leverage ratios (as defined in the senior secured credit facility). For the four consecutive fiscal quarters ended June 30, 2014, Select was required to maintain its leverage ratio (its ratio of total indebtedness to consolidated EBITDA) at less than 5.00 to 1.00. Select’s leverage ratio was 4.47 to 1.00 as of June 30, 2014. | ||||||||
Senior Notes | ||||||||
On March 11, 2014, Select issued and sold $110.0 million aggregate principal amount of additional 6.375% senior notes due June 1, 2021 (the “Additional Notes”), at 101.50% of the aggregate principal amount resulting in gross proceeds of $111.7 million. The notes were issued as additional notes under the indenture pursuant to which it previously issued $600.0 million of 6.375% senior notes due June 1, 2021 (the “Existing Notes” and, together with the Additional notes, the “Notes”). The Additional Notes are treated as a single series with the Existing Notes and have the same terms as those of the Existing Notes. | ||||||||
Interest on the Notes accrues at the rate of 6.375% per annum and is payable semi-annually in cash in arrears on June 1 and December 1 of each year. The Notes are Select’s senior unsecured obligations and rank equally in right of payment with all of its other existing and future senior unsecured indebtedness and senior in right of payment to all of its existing and future subordinated indebtedness. The Notes are fully and unconditionally guaranteed by all of Select’s wholly owned subsidiaries. The Notes are guaranteed, jointly and severally, by Select’s direct or indirect existing and future domestic restricted subsidiaries other than certain non-guarantor subsidiaries. | ||||||||
Select may redeem some or all of the Notes prior to June 1, 2016 by paying a “make-whole” premium. Select may redeem some or all of the Notes on or after June 1, 2016 at specified redemption prices. In addition, prior to June 1, 2016, Select may redeem up to 35% of the Notes with the net proceeds of certain equity offerings at a price of 106.375% plus accrued and unpaid interest, if any. Select is obligated to offer to repurchase the Notes at a price of 101% of their principal amount plus accrued and unpaid interest, if any, as a result of certain change of control events. These restrictions and prohibitions are subject to certain qualifications and exceptions. | ||||||||
The indenture relating to the Notes contains covenants that, among other things, limit Select’s ability and the ability of certain of its subsidiaries to (i) grant liens on its assets, (ii) make dividend payments, other distributions or other restricted payments, (iii) incur restrictions on the ability of Select’s restricted subsidiaries to pay dividends or make other payments, (iv) enter into sale and leaseback transactions, (v) merge, consolidate, transfer or dispose of substantially all of their assets, (vi) incur additional indebtedness, (vii) make investments, (viii) sell assets, including capital stock of subsidiaries, (ix) use the proceeds from sales of assets, including capital stock of restricted subsidiaries, and (x) enter into transactions with affiliates. In addition, the Indenture requires, among other things, Select to provide financial and current reports to holders of the Notes or file such reports electronically with the SEC. These covenants are subject to a number of exceptions, limitations and qualifications set forth in the Indenture. | ||||||||
Maturities of Long-Term Debt and Notes Payable | ||||||||
Maturities of the Company’s long-term debt for the period from July 1, 2014 through December 31, 2014 and the years after 2014 are approximately as follows and are presented including the discounts on the senior secured credit facility term loans and premium on the senior notes (in thousands): | ||||||||
July 1, 2014 – December 31, 2014 | $ | 9,647 | ||||||
2015 | 10,538 | |||||||
2016 | 286,916 | |||||||
2017 | 4,265 | |||||||
2018 | 590,216 | |||||||
2019 and beyond | 711,950 | |||||||
Loss on Early Retirement of Debt | ||||||||
On March 4, 2014, Select amended its term loans under its senior secured credit facilities. During the six months ended June 30, 2014, the Company recognized a loss of $2.3 million for unamortized debt issuance costs, unamortized original issue discount, and certain fees incurred related to term loan modifications. | ||||||||
On May 28, 2013, Select repaid a portion of its original term loan and series A term loan under its senior secured credit facilities, and on June 3, 2013, Select amended its existing senior secured credit facilities. During the six months ended June 30, 2013, the Company recognized a loss of $17.3 million for unamortized debt issuance costs, unamortized original issue discount and certain debt issuance costs associated with refinancing activities. | ||||||||
On March 22, 2013, the Company redeemed Select’s 7 5/8% senior subordinated notes due 2015 and redeemed Holdings’ senior floating rate notes due 2015. During the three months ended March 31, 2013, the Company recognized a loss on early retirement of debt of $1.5 million for unamortized debt issuance costs of which approximately $0.5 million was associated with Select’s redemption of its 7 5/8% senior subordinated notes due 2015 and approximately $1.0 million was associated with Holdings’ redemption of its senior floating rate notes due 2015. | ||||||||
Fair_Value
Fair Value | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value | ' |
Fair Value | ' |
6. Fair Value | |
Financial instruments include cash and cash equivalents, notes payable and long-term debt. The carrying amount of cash and cash equivalents approximates fair value because of the short-term maturity of these instruments. | |
The carrying value of Select’s senior secured credit facilities was $827.8 million and $885.3 million at December 31, 2013 and June 30, 2014, respectively. The fair value of Select’s senior secured credit facilities was $834.7 million and $881.1 million at December 31, 2013 and June 30, 2014, respectively. The fair value of Select’s senior secured credit facilities was based on quoted market prices for this debt in the syndicated loan market. | |
The carrying value of Select’s 6.375% senior notes was $600.0 million and $711.6 million at December 31, 2013 and June 30, 2014, respectively. The fair value of Select’s 6.375% senior notes was $586.5 million and $742.0 million at December 31, 2013 and June 30, 2014, respectively. The fair value of this debt was based on quoted market prices. | |
The Company considers the inputs in the valuation process of its senior secured credit facility and 6.375% senior notes to be Level 2 in the fair value hierarchy. Level 2 in the fair value hierarchy is defined as inputs that are observable for the asset or liability, either directly or indirectly which includes quoted prices for identical assets or liabilities in markets that are not active. | |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
7. Segment Information | |||||||||||||||||
The Company’s reportable segments consist of (i) specialty hospitals and (ii) outpatient rehabilitation. Other activities include the Company’s corporate services and certain other non-consolidating joint ventures and minority investments in other healthcare related businesses. The outpatient rehabilitation reportable segment has two operating segments: outpatient rehabilitation clinics and contract therapy. These operating segments are aggregated for reporting purposes as they have common economic characteristics and provide a similar service to a similar patient base. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance of the segments based on Adjusted EBITDA. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, equity in earnings (losses) of unconsolidated subsidiaries and other income (expense). | |||||||||||||||||
The following tables summarize selected financial data for the Company’s reportable segments. The segment results of Holdings are identical to those of Select. | |||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 559,386 | $ | 197,080 | $ | 207 | $ | 756,673 | |||||||||
Adjusted EBITDA | 96,393 | 26,054 | (16,489 | ) | 105,958 | ||||||||||||
Total assets | 2,229,458 | 502,497 | 113,100 | 2,845,055 | |||||||||||||
Capital expenditures | 10,203 | 2,999 | 761 | 13,963 | |||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 557,833 | $ | 214,798 | $ | 131 | $ | 772,762 | |||||||||
Adjusted EBITDA | 88,688 | 30,432 | (17,766 | ) | 101,354 | ||||||||||||
Total assets | 2,271,256 | 532,529 | 99,986 | 2,903,771 | |||||||||||||
Capital expenditures | 19,800 | 2,546 | 848 | 23,194 | |||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 1,117,137 | $ | 389,181 | $ | 310 | $ | 1,506,628 | |||||||||
Adjusted EBITDA | 189,740 | 48,887 | (32,588 | ) | 206,039 | ||||||||||||
Total assets | 2,229,458 | 502,497 | 113,100 | 2,845,055 | |||||||||||||
Capital expenditures | 21,100 | 5,844 | 1,018 | 27,962 | |||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 1,122,458 | $ | 412,648 | $ | 234 | $ | 1,535,340 | |||||||||
Adjusted EBITDA | 180,838 | 51,421 | (34,077 | ) | 198,182 | ||||||||||||
Total assets | 2,271,256 | 532,529 | 99,986 | 2,903,771 | |||||||||||||
Capital expenditures | 41,298 | 6,176 | 3,019 | 50,493 | |||||||||||||
A reconciliation of Adjusted EBITDA to income before income taxes is as follows: | |||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 96,393 | $ | 26,054 | $ | (16,489 | ) | ||||||||||
Depreciation and amortization | (11,932 | ) | (3,001 | ) | (974 | ) | |||||||||||
Stock compensation expense | — | — | (1,788 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 84,461 | $ | 23,053 | $ | (19,251 | ) | $ | 88,263 | $ | 88,263 | ||||||
Loss on early retirement of debt | (17,280 | ) | (17,280 | ) | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 568 | 568 | |||||||||||||||
Interest expense | (21,904 | ) | (21,904 | ) | |||||||||||||
Income before income taxes | $ | 49,647 | $ | 49,647 | |||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 88,688 | $ | 30,432 | $ | (17,766 | ) | ||||||||||
Depreciation and amortization | (13,067 | ) | (3,225 | ) | (904 | ) | |||||||||||
Stock compensation expense | — | — | (1,965 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 75,621 | $ | 27,207 | $ | (20,635 | ) | $ | 82,193 | $ | 82,193 | ||||||
Equity in earnings of unconsolidated subsidiaries | 1,239 | 1,239 | |||||||||||||||
Interest expense | (21,663 | ) | (21,663 | ) | |||||||||||||
Income before income taxes | $ | 61,769 | $ | 61,769 | |||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 189,740 | $ | 48,887 | $ | (32,588 | ) | ||||||||||
Depreciation and amortization | (23,794 | ) | (5,970 | ) | (1,945 | ) | |||||||||||
Stock compensation expense | — | — | (3,537 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 165,946 | $ | 42,917 | $ | (38,070 | ) | $ | 170,793 | $ | 170,793 | ||||||
Loss on early retirement of debt | (18,747 | ) | (17,788 | ) | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 1,626 | 1,626 | |||||||||||||||
Interest expense | (45,362 | ) | (42,952 | ) | |||||||||||||
Income before income taxes | $ | 108,310 | $ | 111,679 | |||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 180,838 | $ | 51,421 | $ | (34,077 | ) | ||||||||||
Depreciation and amortization | (25,162 | ) | (6,437 | ) | (1,826 | ) | |||||||||||
Stock compensation expense | — | — | (4,120 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 155,676 | $ | 44,984 | $ | (40,023 | ) | $ | 160,637 | $ | 160,637 | ||||||
Loss on early retirement of debt | (2,277 | ) | (2,277 | ) | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 2,147 | 2,147 | |||||||||||||||
Interest expense | (42,279 | ) | (42,279 | ) | |||||||||||||
Income before income taxes | $ | 118,228 | $ | 118,228 |
Income_per_Common_Share
Income per Common Share | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Income per Common Share | ' | |||||||||||||
Income per Common Share | ' | |||||||||||||
8. Income per Common Share | ||||||||||||||
The Company applies the two-class method for calculating and presenting income per common share. The two-class method is an earnings allocation formula that determines earnings per share for each class of stock participation rights in undistributed earnings. The following table sets forth for the periods indicated the calculation of income per common share in the Company’s consolidated statement of operations and the differences between basic weighted average shares outstanding and diluted weighted average shares outstanding used to compute basic and diluted income per common share, respectively: | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
(in thousands, except per share amounts) | ||||||||||||||
Numerator: | ||||||||||||||
Net income attributable to Select Medical Holdings Corporation | $ | 27,780 | $ | 35,341 | $ | 62,198 | $ | 68,385 | ||||||
Less: Earnings allocated to unvested restricted stockholders | 593 | 919 | 1,304 | 1,683 | ||||||||||
Net income available to common stockholders | $ | 27,187 | $ | 34,422 | $ | 60,894 | $ | 66,702 | ||||||
Denominator: | ||||||||||||||
Weighted average shares – basic | 136,609 | 127,038 | 136,997 | 131,266 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options | 134 | 503 | 168 | 500 | ||||||||||
Weighted average shares – diluted | 136,743 | 127,541 | 137,165 | 131,766 | ||||||||||
Basic income per common share | $ | 0.2 | $ | 0.27 | $ | 0.44 | $ | 0.51 | ||||||
Diluted income per common share | $ | 0.2 | $ | 0.27 | $ | 0.44 | $ | 0.51 | ||||||
The following share amounts are shown here for informational and comparative purposes only since their inclusion would be anti-dilutive: | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
(in thousands) | ||||||||||||||
Stock options | 2,165 | — | 1,554 | — |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
9. Commitments and Contingencies | |
Litigation | |
The Company is a party to various legal actions, proceedings and claims (some of which are not insured), and regulatory and other governmental audits and investigations in the ordinary course of its business. The Company cannot predict the ultimate outcome of pending litigation, proceedings and regulatory and other governmental audits and investigations. These matters could potentially subject the Company to sanctions, damages, recoupments, fines and other penalties. The Department of Justice, Centers for Medicare & Medicaid Services (“CMS”) or other federal and state enforcement and regulatory agencies may conduct additional investigations related to the Company’s businesses in the future that may, either individually or in the aggregate, have a material adverse effect on the Company’s business, financial position, results of operations and liquidity. | |
To address claims arising out of the operations of the Company’s specialty hospitals and outpatient rehabilitation facilities, the Company maintains professional malpractice liability insurance and general liability insurance, subject to self-insured retention of $2.0 million per medical incident for professional liability claims and $2.0 million per occurrence for general liability claims. The Company also maintains umbrella liability insurance covering claims which, due to their nature or amount, are not covered by or not fully covered by the Company’s other insurance policies. These insurance policies also do not generally cover punitive damages and are subject to various deductibles and policy limits. Significant legal actions, as well as the cost and possible lack of available insurance, could subject the Company to substantial uninsured liabilities. In the Company’s opinion, the outcome of these actions, individually or in the aggregate, will not have a material adverse effect on its financial position, results of operations, or cash flows. | |
Healthcare providers are subject to lawsuits under the qui tam provisions of the federal False Claims Act. Qui tam lawsuits typically remain under seal (hence, usually unknown to the defendant) for some time while the government decides whether or not to intervene on behalf of a private qui tam plaintiff (known as a relator) and take the lead in the litigation. These lawsuits can involve significant monetary damages and penalties and award bounties to private plaintiffs who successfully bring the suits. The Company has been a defendant in these cases in the past, and may be named as a defendant in similar cases from time to time in the future. | |
On January 8, 2013, a federal magistrate judge unsealed an Amended Complaint in United States of America and the State of Indiana, ex rel. Doe I, Doe II and Doe III v. Select Medical Corporation, Select Specialty Hospital-Evansville, Evansville Physician Investment Corporation, Dr. Richard Sloan and Dr. Jeffrey Selby. The Amended Complaint, which was served on the Company on February 15, 2013, is a civil action filed under seal on September 28, 2012 in the United States District Court for the Southern District of Indiana by private plaintiff-relators on behalf of the United States and the state of Indiana under the federal False Claims Act and Indiana False Claims and Whistleblower Protection Act. Although the Amended Complaint identifies the relators by fictitious pseudonyms, on March 28, 2013, the relators filed a Notice identifying themselves as the former CEO at the Company’s long term acute care hospital in Evansville, Indiana (“SSH-Evansville”) and two former case managers at SSH-Evansville. The named defendants include the Company, SSH-Evansville, and two physicians who have practiced at SSH-Evansville. On March 26, 2013, the defendants, relators and the United States filed a joint motion seeking a stay of the proceedings, in which the United States notified the court that its investigation has not been completed and therefore it is not yet able to decide whether or not to intervene, and on March 29, 2013, the magistrate judge granted the motion and stayed all deadlines in the case for 90 days. The court has subsequently granted additional motions filed by the United States to continue the stay, and the current stay extends through September 15, 2014. | |
In January 2014, representatives of the United States Attorney’s Office for the Southern District of Indiana and the Office of Attorney General for the State of Indiana informed the Company that, while they have not yet decided whether to intervene in the case, their investigation is continuing concerning allegations that SSH-Evansville admitted patients for whom long-term acute care was not medically necessary, up-coded diagnoses at admission, discharged patients too early or held patients too long, readmitted patients discharged to short-stay acute care hospitals only after nine days to enable billing for two admissions, and allowed unnecessary bronchoscopies to be performed. The Company is involved in ongoing discussions with the government regarding this matter. | |
As previously disclosed, beginning in April 2012, the Company and SSH-Evansville have received various subpoenas and demands for documents relating to SSH-Evansville, including a request for information and subpoenas from the Office of Inspector General of the U.S. Department of Health and Human Services and subpoenas from the Office of Attorney General for the State of Indiana, and the Evansville (Indiana) Police Department has executed a search warrant at SSH-Evansville. The Company has produced and will continue to produce documents in response to, and intends to fully cooperate with, these governmental investigations. At this time, the Company is unable to predict the timing and outcome of this matter. | |
On July 22, 2014, the United States District Court for the Western District of Wisconsin unsealed a qui tam Complaint in United States of America and State of Wisconsin ex rel. Todd Schmadl v. Select Medical Holdings Corporation and Select Specialty Hospital — Madison, Inc. The Complaint was unsealed after the United States notified the Court on July 21, 2014, that the United States and the State of Wisconsin have decided not to intervene in the case. The Complaint, which has not yet been served on the Company, is a civil action that was filed under seal on July 17, 2013, on behalf of the United States and the State of Wisconsin by a nurse formerly employed at the Company’s long term acute care hospital in Madison. The Complaint alleges violations of the federal False Claims Act and the Wisconsin False Claims for Medical Assistance Act based on inadequate medical care; billing for services that were not performed, were performed by unqualified personnel or were unnecessary; manipulation of patient lengths of stay and readmissions; and providing substandard care at the hospital. The Company intends to vigorously defend this action if the relator pursues it, but at this time the Company is unable to predict the timing and outcome of this matter. | |
Construction Commitments | |
At June 30, 2014, the Company had outstanding commitments under construction contracts related to new construction, improvements and renovations at the Company’s long term acute care properties and inpatient rehabilitation facilities totaling approximately $13.8 million. | |
Subsequent_Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Event | ' |
Subsequent Event | ' |
10. Subsequent Event | |
On August 6, 2014, Holdings’ board of directors declared a cash dividend of $0.10 per share. The dividend will be payable on or about August 29, 2014 to stockholders of record as of the close of business on August 20, 2014. |
Financial_Information_for_Subs
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes | ' | ||||||||||||||||
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes | ' | ||||||||||||||||
11. Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select’s 6.375% Senior Notes | |||||||||||||||||
Select’s 6.375% senior notes are fully and unconditionally guaranteed, except for customary limitations, on a senior basis by all of Select’s wholly-owned subsidiaries (the “Subsidiary Guarantors”) which is defined as a subsidiary where Select or a subsidiary of Select holds all of the outstanding ownership interests. Certain of Select’s subsidiaries did not guarantee the 6.375% senior notes (the “Non-Guarantor Subsidiaries”). | |||||||||||||||||
Select conducts a significant portion of its business through its subsidiaries. Presented below is condensed consolidating financial information for Select, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries at December 31, 2013 and June 30, 2014 and for the three and six months ended June 30, 2013 and 2014. | |||||||||||||||||
The equity method has been used by Select with respect to investments in subsidiaries. The equity method has been used by Subsidiary Guarantors with respect to investments in Non-Guarantor Subsidiaries. Separate financial statements for Subsidiary Guarantors are not presented. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Subsidiaries | |||||||||||||||
Company Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Current Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 70 | $ | 2,008 | $ | 1,062 | $ | — | $ | 3,140 | |||||||
Accounts receivable, net | — | 393,071 | 60,113 | — | 453,184 | ||||||||||||
Current deferred tax asset | 6,438 | 5,170 | 4,434 | — | 16,042 | ||||||||||||
Prepaid income taxes | 678 | — | — | — | 678 | ||||||||||||
Intercompany receivables | — | 1,598,454 | 119,844 | (1,718,298 | )(a) | — | |||||||||||
Other current assets | 9,494 | 30,293 | 4,294 | — | 44,081 | ||||||||||||
Total Current Assets | 16,680 | 2,028,996 | 189,747 | (1,718,298 | ) | 517,125 | |||||||||||
Property and equipment, net | 16,515 | 450,197 | 59,637 | — | 526,349 | ||||||||||||
Investment in affiliates | 3,670,956 | 95,534 | — | (3,766,490 | )(b)(c) | — | |||||||||||
Goodwill | — | 1,642,869 | — | — | 1,642,869 | ||||||||||||
Non-current deferred tax asset | 9,480 | — | — | (9,480 | )(d) | — | |||||||||||
Other identifiable intangibles | — | 72,023 | — | — | 72,023 | ||||||||||||
Other assets | 37,662 | 107,159 | 584 | — | 145,405 | ||||||||||||
Total Assets | $ | 3,751,293 | $ | 4,396,778 | $ | 249,968 | $ | (5,494,268 | ) | $ | 2,903,771 | ||||||
Liabilities and Equity | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Bank overdrafts | $ | 9,192 | $ | — | $ | — | $ | — | $ | 9,192 | |||||||
Current portion of long-term debt and notes payable | 6,650 | 7,401 | 727 | — | 14,778 | ||||||||||||
Accounts payable | 10,823 | 75,188 | 12,627 | — | 98,638 | ||||||||||||
Intercompany payables | 1,718,298 | — | — | (1,718,298 | )(a) | — | |||||||||||
Accrued payroll | 9,727 | 64,851 | 158 | — | 74,736 | ||||||||||||
Accrued vacation | 4,916 | 51,188 | 8,023 | — | 64,127 | ||||||||||||
Accrued interest | 10,581 | 404 | — | — | 10,985 | ||||||||||||
Accrued other | 39,317 | 35,896 | 6,211 | — | 81,424 | ||||||||||||
Due to third party payors | — | 1,103 | 878 | — | 1,981 | ||||||||||||
Total Current Liabilities | 1,809,504 | 236,031 | 28,624 | (1,718,298 | ) | 355,861 | |||||||||||
Long-term debt, net of current portion | 1,174,534 | 359,610 | 64,610 | — | 1,598,754 | ||||||||||||
Non-current deferred tax liability | — | 97,430 | 8,031 | (9,480 | )(d) | 95,981 | |||||||||||
Other non-current liabilities | 55,923 | 35,460 | 4,952 | — | 96,335 | ||||||||||||
Total Liabilities | 3,039,961 | 728,531 | 106,217 | (1,727,778 | ) | 2,146,931 | |||||||||||
Redeemable non-controlling interests | — | — | 11,238 | — | 11,238 | ||||||||||||
Stockholder’s Equity: | |||||||||||||||||
Common stock | 0 | — | — | — | 0 | ||||||||||||
Capital in excess of par | 880,584 | — | — | — | 880,584 | ||||||||||||
Retained earnings (accumulated deficit) | (169,252 | ) | 988,645 | 19,053 | (1,007,698 | )(c) | (169,252 | ) | |||||||||
Subsidiary investment | — | 2,679,602 | 79,190 | (2,758,792 | )(b) | — | |||||||||||
Total Select Medical Corporation Stockholders’ Equity | 711,332 | 3,668,247 | 98,243 | (3,766,490 | ) | 711,332 | |||||||||||
Non-controlling interests | — | — | 34,270 | — | 34,270 | ||||||||||||
Total Equity | 711,332 | 3,668,247 | 132,513 | (3,766,490 | ) | 745,602 | |||||||||||
Total Liabilities and Equity | $ | 3,751,293 | $ | 4,396,778 | $ | 249,968 | $ | (5,494,268 | ) | $ | 2,903,771 | ||||||
(a) Elimination of intercompany. | |||||||||||||||||
(b) Elimination of investments in consolidated subsidiaries. | |||||||||||||||||
(c) Elimination of investments in consolidated subsidiaries’ earnings. | |||||||||||||||||
(d) Reclass of non-current deferred tax assset to report net non-current deferred tax liability in consolidation. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Three Months Ended June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 131 | $ | 662,400 | $ | 110,231 | $ | — | $ | 772,762 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 485 | 549,172 | 93,224 | — | 642,881 | ||||||||||||
General and administrative | 19,331 | 46 | — | — | 19,377 | ||||||||||||
Bad debt expense | — | 9,662 | 1,453 | — | 11,115 | ||||||||||||
Depreciation and amortization | 904 | 13,632 | 2,660 | — | 17,196 | ||||||||||||
Total costs and expenses | 20,720 | 572,512 | 97,337 | — | 690,569 | ||||||||||||
Income (loss) from operations | (20,589 | ) | 89,888 | 12,894 | — | 82,193 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (266 | ) | 258 | 8 | — | — | |||||||||||
Intercompany management fees | 34,799 | (29,335 | ) | (5,464 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 1,226 | 13 | — | 1,239 | ||||||||||||
Interest expense | (14,526 | ) | (6,039 | ) | (1,098 | ) | — | (21,663 | ) | ||||||||
Income (loss) from operations before income taxes | (582 | ) | 55,998 | 6,353 | — | 61,769 | |||||||||||
Income tax expense | 340 | 23,182 | 253 | — | 23,775 | ||||||||||||
Equity in earnings of subsidiaries | 36,263 | 3,497 | — | (39,760 | )(a) | — | |||||||||||
Net income | 35,341 | 36,313 | 6,100 | (39,760 | ) | 37,994 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 2,653 | — | 2,653 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 35,341 | $ | 36,313 | $ | 3,447 | $ | (39,760 | ) | $ | 35,341 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 234 | $ | 1,317,633 | $ | 217,473 | $ | — | $ | 1,535,340 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 930 | 1,094,981 | 185,734 | — | 1,281,645 | ||||||||||||
General and administrative | 38,643 | (1,143 | ) | — | — | 37,500 | |||||||||||
Bad debt expense | — | 18,826 | 3,307 | — | 22,133 | ||||||||||||
Depreciation and amortization | 1,827 | 26,461 | 5,137 | — | 33,425 | ||||||||||||
Total costs and expenses | 41,400 | 1,139,125 | 194,178 | — | 1,374,703 | ||||||||||||
Income (loss) from operations | (41,166 | ) | 178,508 | 23,295 | — | 160,637 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (548 | ) | 543 | 5 | — | — | |||||||||||
Intercompany management fees | 73,667 | (63,153 | ) | (10,514 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 2,113 | 34 | — | 2,147 | ||||||||||||
Loss on early retirement of debt | (2,277 | ) | — | — | — | (2,277 | ) | ||||||||||
Interest expense | (28,322 | ) | (11,836 | ) | (2,121 | ) | — | (42,279 | ) | ||||||||
Income from operations before income taxes | 1,354 | 106,175 | 10,699 | — | 118,228 | ||||||||||||
Income tax expense | 1,265 | 44,155 | 447 | — | 45,867 | ||||||||||||
Equity in earnings of subsidiaries | 68,296 | 5,931 | — | (74,227 | )(a) | — | |||||||||||
Net income | 68,385 | 67,951 | 10,252 | (74,227 | ) | 72,361 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 3,976 | — | 3,976 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 68,385 | $ | 67,951 | $ | 6,276 | $ | (74,227 | ) | $ | 68,385 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation | Guarantors | Guarantor | |||||||||||||||
(Parent Company | Subsidiaries | ||||||||||||||||
Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 68,385 | $ | 67,951 | $ | 10,252 | $ | (74,227 | )(a) | $ | 72,361 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 1,827 | 26,461 | 5,137 | — | 33,425 | ||||||||||||
Provision for bad debts | — | 18,826 | 3,307 | — | 22,133 | ||||||||||||
Equity in earnings of unconsolidated subsidiaires | — | (2,113 | ) | (34 | ) | — | (2,147 | ) | |||||||||
Loss on early retirement of debt | 2,277 | — | — | — | 2,277 | ||||||||||||
Loss from disposal or sale of assets | — | 28 | 115 | — | 143 | ||||||||||||
Non-cash stock compensation expense | 4,120 | — | — | — | 4,120 | ||||||||||||
Amortization of debt discount, premium and issuance costs | 3,849 | — | — | — | 3,849 | ||||||||||||
Deferred income taxes | 1,275 | — | — | — | 1,275 | ||||||||||||
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | |||||||||||||||||
Equity in earnings of subsidiaries | (68,296 | ) | (5,931 | ) | — | 74,227 | (a) | — | |||||||||
Accounts receivable | — | (75,281 | ) | (8,968 | ) | — | (84,249 | ) | |||||||||
Other current assets | 251 | (3,742 | ) | 556 | — | (2,935 | ) | ||||||||||
Other assets | (2,388 | ) | (1,098 | ) | 24 | — | (3,462 | ) | |||||||||
Accounts payable | 4,074 | 6,604 | (335 | ) | — | 10,343 | |||||||||||
Due to third-party payors | — | 1,752 | 192 | — | 1,944 | ||||||||||||
Accrued expenses | (11,570 | ) | (3,449 | ) | (1,011 | ) | — | (16,030 | ) | ||||||||
Income taxes | (878 | ) | — | — | — | (878 | ) | ||||||||||
Net cash provided by operating activities | 2,926 | 30,008 | 9,235 | — | 42,169 | ||||||||||||
Investing activities | |||||||||||||||||
Purchases of property and equipment | (3,019 | ) | (42,423 | ) | (5,051 | ) | — | (50,493 | ) | ||||||||
Investment in businesses, net of distributions | — | (175 | ) | — | — | (175 | ) | ||||||||||
Acquisition of businesses, net of cash acquired | — | (454 | ) | — | — | (454 | ) | ||||||||||
Net cash used in investing activities | (3,019 | ) | (43,052 | ) | (5,051 | ) | — | (51,122 | ) | ||||||||
Financing activities | |||||||||||||||||
Borrowings on revolving credit facility | 515,000 | — | — | — | 515,000 | ||||||||||||
Payments on revolving credit facility | (425,000 | ) | — | — | — | (425,000 | ) | ||||||||||
Payments on credit facility term loans | (33,994 | ) | — | — | — | (33,994 | ) | ||||||||||
Issuance of 6.375% senior notes, includes premium | 111,650 | — | — | — | 111,650 | ||||||||||||
Borrowings of other debt | 6,111 | — | — | — | 6,111 | ||||||||||||
Principal payments on other debt | (5,046 | ) | (173 | ) | (1,830 | ) | — | (7,049 | ) | ||||||||
Debt issuance costs | (4,434 | ) | — | — | — | (4,434 | ) | ||||||||||
Repayments of bank overdrafts | (3,314 | ) | — | — | — | (3,314 | ) | ||||||||||
Equity investment by Holdings | 5,297 | — | — | — | 5,297 | ||||||||||||
Dividends paid to Holdings | (154,653 | ) | — | — | — | (154,653 | ) | ||||||||||
Intercompany | (11,525 | ) | 12,127 | (602 | ) | — | — | ||||||||||
Distributions to non-controlling interests | — | — | (1,840 | ) | — | (1,840 | ) | ||||||||||
Net cash provided by (used in) financing activities | 92 | 11,954 | (4,272 | ) | — | 7,774 | |||||||||||
Net decrease in cash and cash equivalents | (1 | ) | (1,090 | ) | (88 | ) | — | (1,179 | ) | ||||||||
Cash and cash equivalents at beginning of period | 71 | 3,098 | 1,150 | — | 4,319 | ||||||||||||
Cash and cash equivalents at end of period | $ | 70 | $ | 2,008 | $ | 1,062 | $ | — | $ | 3,140 | |||||||
(a) Elimination of equity in earnings of consolidated subsidiaries. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Subsidiaries | |||||||||||||||
Company Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Current Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 71 | $ | 3,098 | $ | 1,150 | $ | — | $ | 4,319 | |||||||
Accounts receivable, net | — | 337,517 | 54,452 | (650 | )(a) | 391,319 | |||||||||||
Current deferred tax asset | 7,965 | 5,214 | 4,445 | — | 17,624 | ||||||||||||
Intercompany receivables | — | 1,079,736 | 105,028 | (1,184,764 | )(b) | — | |||||||||||
Other current assets | 9,745 | 26,545 | 4,850 | — | 41,140 | ||||||||||||
Total Current Assets | 17,781 | 1,452,110 | 169,925 | (1,185,414 | ) | 454,402 | |||||||||||
Property and equipment, net | 15,624 | 434,040 | 59,438 | — | 509,102 | ||||||||||||
Investment in affiliates | 3,059,581 | 83,012 | — | (3,142,593 | )(c)(d) | — | |||||||||||
Goodwill | — | 1,642,633 | — | — | 1,642,633 | ||||||||||||
Non-current deferred tax asset | 7,662 | — | — | (7,662 | )(e) | — | |||||||||||
Other identifiable intangibles | — | 71,907 | — | — | 71,907 | ||||||||||||
Other assets | 35,274 | 103,696 | 608 | — | 139,578 | ||||||||||||
Total Assets | $ | 3,135,922 | $ | 3,787,398 | $ | 229,971 | $ | (4,335,669 | ) | $ | 2,817,622 | ||||||
Liabilities and Equity | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Bank overdrafts | $ | 12,506 | $ | — | $ | — | $ | — | $ | 12,506 | |||||||
Current portion of long-term debt and notes payable | 9,107 | 7,317 | 1,141 | — | 17,565 | ||||||||||||
Accounts payable | 6,749 | 68,574 | 12,962 | — | 88,285 | ||||||||||||
Intercompany payables | 1,184,764 | — | — | (1,184,764 | )(b) | — | |||||||||||
Accrued payroll | 1,167 | 88,599 | 245 | — | 90,011 | ||||||||||||
Accrued vacation | 4,619 | 47,682 | 7,429 | — | 59,730 | ||||||||||||
Accrued interest | 11,076 | 1,221 | — | — | 12,297 | ||||||||||||
Accrued other | 59,249 | 23,493 | 7,729 | — | 90,471 | ||||||||||||
Income taxes payable | 622 | — | — | — | 622 | ||||||||||||
Due to third party payors | — | 1 | 686 | (650 | )(a) | 37 | |||||||||||
Total Current Liabilities | 1,289,859 | 236,887 | 30,192 | (1,185,414 | ) | 371,524 | |||||||||||
Long-term debt, net of current portion | 1,006,201 | 364,060 | 57,449 | — | 1,427,710 | ||||||||||||
Non-current deferred tax liability | — | 96,111 | 7,838 | (7,662 | )(e) | 96,287 | |||||||||||
Other non-current liabilities | 53,628 | 33,123 | 5,124 | — | 91,875 | ||||||||||||
Total Liabilities | 2,349,688 | 730,181 | 100,603 | (1,193,076 | ) | 1,987,396 | |||||||||||
Redeemable non-controlling interests | — | — | 11,584 | — | 11,584 | ||||||||||||
Stockholder’s Equity: | |||||||||||||||||
Common stock | 0 | — | — | — | 0 | ||||||||||||
Capital in excess of par | 869,576 | — | — | — | 869,576 | ||||||||||||
Retained earnings | (83,342 | ) | 920,694 | 21,186 | (941,880 | )(d) | (83,342 | ) | |||||||||
Subsidiary investment | — | 2,136,523 | 64,190 | (2,200,713 | )(c) | — | |||||||||||
Total Select Medical Corporation Stockholders’ Equity | 786,234 | 3,057,217 | 85,376 | (3,142,593 | ) | 786,234 | |||||||||||
Non-controlling interests | — | — | 32,408 | — | 32,408 | ||||||||||||
Total Equity | 786,234 | 3,057,217 | 117,784 | (3,142,593 | ) | 818,642 | |||||||||||
Total Liabilities and Equity | $ | 3,135,922 | $ | 3,787,398 | $ | 229,971 | $ | (4,335,669 | ) | $ | 2,817,622 | ||||||
(a) Reclass portion of due to third party payor to accounts receivable net in consolidation. | |||||||||||||||||
(b) Elimination of intercompany. | |||||||||||||||||
(c) Elimination of investments in consolidated subsidiaries. | |||||||||||||||||
(d) Elimination of investments in consolidated subsidiaries’ earnings. | |||||||||||||||||
(e) Reclass of non-current deferred tax assset to report net non-current deferred tax liability in consolidation. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Three Months Ended June 30, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 207 | $ | 652,745 | $ | 103,721 | $ | — | $ | 756,673 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 557 | 537,048 | 88,125 | — | 625,730 | ||||||||||||
General and administrative | 17,853 | 74 | — | — | 17,927 | ||||||||||||
Bad debt expense | — | 7,099 | 1,747 | — | 8,846 | ||||||||||||
Depreciation and amortization | 975 | 12,522 | 2,410 | — | 15,907 | ||||||||||||
Total costs and expenses | 19,385 | 556,743 | 92,282 | — | 668,410 | ||||||||||||
Income (loss) from operations | (19,178 | ) | 96,002 | 11,439 | — | 88,263 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (361 | ) | 355 | 6 | — | — | |||||||||||
Intercompany management fees | 62,247 | (57,217 | ) | (5,030 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 546 | 22 | — | 568 | ||||||||||||
Loss on early retirement of debt | (17,280 | ) | — | — | — | (17,280 | ) | ||||||||||
Interest expense | (15,427 | ) | (5,447 | ) | (1,030 | ) | — | (21,904 | ) | ||||||||
Income from operations before income taxes | 10,001 | 34,239 | 5,407 | — | 49,647 | ||||||||||||
Income tax expense | 6,555 | 13,018 | 196 | — | 19,769 | ||||||||||||
Equity in earnings of subsidiaries | 24,334 | 3,439 | — | (27,773 | )(a) | — | |||||||||||
Net income | 27,780 | 24,660 | 5,211 | (27,773 | ) | 29,878 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 2,098 | — | 2,098 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 27,780 | $ | 24,660 | $ | 3,113 | $ | (27,773 | ) | $ | 27,780 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Six Months Ended June 30, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 310 | $ | 1,296,182 | $ | 210,136 | $ | — | $ | 1,506,628 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 1,110 | 1,073,295 | 176,229 | — | 1,250,634 | ||||||||||||
General and administrative | 35,219 | 106 | — | — | 35,325 | ||||||||||||
Bad debt expense | — | 14,922 | 3,245 | — | 18,167 | ||||||||||||
Depreciation and amortization | 1,945 | 25,025 | 4,739 | — | 31,709 | ||||||||||||
Total costs and expenses | 38,274 | 1,113,348 | 184,213 | — | 1,335,835 | ||||||||||||
Income (loss) from operations | (37,964 | ) | 182,834 | 25,923 | — | 170,793 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (755 | ) | 741 | 14 | — | — | |||||||||||
Intercompany management fees | 81,976 | (72,619 | ) | (9,357 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 1,571 | 55 | — | 1,626 | ||||||||||||
Loss on early retirement of debt | (17,788 | ) | — | — | — | (17,788 | ) | ||||||||||
Interest expense | (30,153 | ) | (10,769 | ) | (2,030 | ) | — | (42,952 | ) | ||||||||
Income (loss) from operations before income taxes | (4,684 | ) | 101,758 | 14,605 | — | 111,679 | |||||||||||
Income tax expense | 1,912 | 40,682 | 215 | — | 42,809 | ||||||||||||
Equity in earnings of subsidiaries | 70,984 | 10,121 | — | (81,105 | )(a) | — | |||||||||||
Net income | 64,388 | 71,197 | 14,390 | (81,105 | ) | 68,870 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 4,482 | — | 4,482 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 64,388 | $ | 71,197 | $ | 9,908 | $ | (81,105 | ) | $ | 64,388 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Select Medical Corporation | |||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||
For the Six Months Ended June 30, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation | Guarantors | Guarantor | |||||||||||||||
(Parent Company | Subsidiaries | ||||||||||||||||
Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 64,388 | $ | 71,197 | $ | 14,390 | $ | (81,105 | )(a) | $ | 68,870 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | 1,945 | 25,025 | 4,739 | — | 31,709 | ||||||||||||
Provision for bad debts | — | 14,922 | 3,245 | — | 18,167 | ||||||||||||
Equity in earnings of unconsolidated subsidiaires | — | (1,571 | ) | (55 | ) | — | (1,626 | ) | |||||||||
Loss on early retirement of debt | 17,788 | — | — | — | 17,788 | ||||||||||||
Loss from disposal or sale of assets | — | 74 | 7 | — | 81 | ||||||||||||
Non-cash stock compensation expense | 3,537 | — | — | — | 3,537 | ||||||||||||
Amortization of debt discount and issuance costs | 4,499 | — | — | — | 4,499 | ||||||||||||
Deferred income taxes | 3,192 | — | — | — | 3,192 | ||||||||||||
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | |||||||||||||||||
Equity in earnings of subsidiaries | (70,984 | ) | (10,121 | ) | — | 81,105 | (a) | — | |||||||||
Accounts receivable | — | (70,357 | ) | (13,475 | ) | — | (83,832 | ) | |||||||||
Other current assets | (2,310 | ) | (5,405 | ) | 1,821 | — | (5,894 | ) | |||||||||
Other assets | (5,540 | ) | 5,600 | 84 | — | 144 | |||||||||||
Accounts payable | 1,857 | (3,460 | ) | (1,062 | ) | — | (2,665 | ) | |||||||||
Due to third-party payors | — | 4,390 | 827 | — | 5,217 | ||||||||||||
Accrued expenses | (19,539 | ) | (6,586 | ) | 1,180 | — | (24,945 | ) | |||||||||
Income taxes | (6,640 | ) | — | — | — | (6,640 | ) | ||||||||||
Net cash provided by (used in) operating activities | (7,807 | ) | 23,708 | 11,701 | — | 27,602 | |||||||||||
Investing activities | |||||||||||||||||
Purchases of property and equipment | (1,071 | ) | (23,802 | ) | (3,089 | ) | — | (27,962 | ) | ||||||||
Investment in businesses, net of distributions | — | (28,716 | ) | — | — | (28,716 | ) | ||||||||||
Acquisition of businesses, net of cash acquired | — | (171 | ) | — | — | (171 | ) | ||||||||||
Net cash used in investing activities | (1,071 | ) | (52,689 | ) | (3,089 | ) | — | (56,849 | ) | ||||||||
Financing activities | |||||||||||||||||
Borrowings on revolving credit facility | 455,000 | — | — | — | 455,000 | ||||||||||||
Payments on revolving credit facility | (480,000 | ) | — | — | — | (480,000 | ) | ||||||||||
Borrowings on credit facility term loans, net of discount | 298,500 | — | — | — | 298,500 | ||||||||||||
Payments on credit facility term loans | (592,615 | ) | — | — | — | (592,615 | ) | ||||||||||
Issuance of 6.375% senior notes | 600,000 | — | — | — | 600,000 | ||||||||||||
Repurchase of 7 5/8% senior subordinated notes | (70,000 | ) | — | — | — | (70,000 | ) | ||||||||||
Borrowings of other debt | 5,826 | — | 1,083 | — | 6,909 | ||||||||||||
Principal payments on other debt | (4,057 | ) | (223 | ) | (393 | ) | — | (4,673 | ) | ||||||||
Debt issuance costs | (18,583 | ) | — | — | — | (18,583 | ) | ||||||||||
Dividends paid to Holdings | (196,825 | ) | — | — | — | (196,825 | ) | ||||||||||
Proceeds from bank overdrafts | 1,625 | — | — | — | 1,625 | ||||||||||||
Intercompany | (20,010 | ) | 27,971 | (7,961 | ) | — | — | ||||||||||
Distributions to non-controlling interests | — | — | (1,467 | ) | — | (1,467 | ) | ||||||||||
Net cash provided by (used in) financing activities | (21,139 | ) | 27,748 | (8,738 | ) | — | (2,129 | ) | |||||||||
Net decrease in cash and cash equivalents | (30,017 | ) | (1,233 | ) | (126 | ) | — | (31,376 | ) | ||||||||
Cash and cash equivalents at beginning of period | 35,070 | 3,734 | 1,340 | — | 40,144 | ||||||||||||
Cash and cash equivalents at end of period | $ | 5,053 | $ | 2,501 | $ | 1,214 | $ | — | $ | 8,768 | |||||||
(a) Elimination of equity in earnings of consolidated subsidiaries. | |||||||||||||||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which supersedes most of the current revenue recognition requirements. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. This guidance is effective for the Company in the first quarter of 2017 and early application is not permitted. Entities must adopt the new guidance using one of two retrospective application methods. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The revised guidance is effective for annual fiscal periods beginning after December 15, 2014. Early adoption is permitted and the Company intends to prospectively adopt ASU No. 2014-08, as applicable. | |
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Intangible Assets | ' | ||||||||||
Schedule of gross carrying amounts of the Company's indefinite-lived intangible assets | ' | ||||||||||
December 31, | June 30, | ||||||||||
2013 | 2014 | ||||||||||
(in thousands) | |||||||||||
Goodwill | $ | 1,642,633 | $ | 1,642,869 | |||||||
Trademarks | 57,709 | 57,709 | |||||||||
Certificates of need | 12,115 | 12,231 | |||||||||
Accreditations | 2,083 | 2,083 | |||||||||
Total | $ | 1,714,540 | $ | 1,714,892 | |||||||
Schedule of changes in the carrying amount of goodwill for the Company's reportable segments | ' | ||||||||||
Specialty | Outpatient | Total | |||||||||
Hospitals | Rehabilitation | ||||||||||
(in thousands) | |||||||||||
Balance as of December 31, 2013 | $ | 1,334,615 | $ | 308,018 | $ | 1,642,633 | |||||
Goodwill acquired during the period | — | 246 | 246 | ||||||||
Purchase accounting adjustment | (10 | ) | — | (10 | ) | ||||||
Balance as of June 30, 2014 | $ | 1,334,605 | $ | 308,264 | $ | 1,642,869 |
Indebtedness_Tables
Indebtedness (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Indebtedness | ' | |||||||
Schedule of components of long-term debt and notes payable | ' | |||||||
December 31, | June 30, | |||||||
2013 | 2014 | |||||||
(in thousands) | ||||||||
6.375% senior notes (1) | $ | 600,000 | $ | 711,580 | ||||
Senior secured credit facilities: | ||||||||
Revolving loan | 20,000 | 110,000 | ||||||
Term loans (2) | 807,815 | 775,329 | ||||||
Other | 17,460 | 16,623 | ||||||
Total debt | 1,445,275 | 1,613,532 | ||||||
Less: current maturities | 17,565 | 14,778 | ||||||
Total long-term debt | $ | 1,427,710 | $ | 1,598,754 | ||||
(1) Includes unamortized premium of $1.6 million at June 30, 2014. | ||||||||
(2) Includes unamortized discounts of $6.3 million and $4.8 million at December 31, 2013 and June 30, 2014, respectively. | ||||||||
Schedule of maturities of the Company's long-term debt | ' | |||||||
Maturities of the Company’s long-term debt for the period from July 1, 2014 through December 31, 2014 and the years after 2014 are approximately as follows and are presented including the discounts on the senior secured credit facility term loans and premium on the senior notes (in thousands): | ||||||||
July 1, 2014 – December 31, 2014 | $ | 9,647 | ||||||
2015 | 10,538 | |||||||
2016 | 286,916 | |||||||
2017 | 4,265 | |||||||
2018 | 590,216 | |||||||
2019 and beyond | 711,950 |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Schedule of selected financial data for the Company's reportable segments | ' | ||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 559,386 | $ | 197,080 | $ | 207 | $ | 756,673 | |||||||||
Adjusted EBITDA | 96,393 | 26,054 | (16,489 | ) | 105,958 | ||||||||||||
Total assets | 2,229,458 | 502,497 | 113,100 | 2,845,055 | |||||||||||||
Capital expenditures | 10,203 | 2,999 | 761 | 13,963 | |||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 557,833 | $ | 214,798 | $ | 131 | $ | 772,762 | |||||||||
Adjusted EBITDA | 88,688 | 30,432 | (17,766 | ) | 101,354 | ||||||||||||
Total assets | 2,271,256 | 532,529 | 99,986 | 2,903,771 | |||||||||||||
Capital expenditures | 19,800 | 2,546 | 848 | 23,194 | |||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 1,117,137 | $ | 389,181 | $ | 310 | $ | 1,506,628 | |||||||||
Adjusted EBITDA | 189,740 | 48,887 | (32,588 | ) | 206,039 | ||||||||||||
Total assets | 2,229,458 | 502,497 | 113,100 | 2,845,055 | |||||||||||||
Capital expenditures | 21,100 | 5,844 | 1,018 | 27,962 | |||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | Total | ||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 1,122,458 | $ | 412,648 | $ | 234 | $ | 1,535,340 | |||||||||
Adjusted EBITDA | 180,838 | 51,421 | (34,077 | ) | 198,182 | ||||||||||||
Total assets | 2,271,256 | 532,529 | 99,986 | 2,903,771 | |||||||||||||
Capital expenditures | 41,298 | 6,176 | 3,019 | 50,493 | |||||||||||||
Schedule of reconciliation of Adjusted EBITDA to income before income taxes | ' | ||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 96,393 | $ | 26,054 | $ | (16,489 | ) | ||||||||||
Depreciation and amortization | (11,932 | ) | (3,001 | ) | (974 | ) | |||||||||||
Stock compensation expense | — | — | (1,788 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 84,461 | $ | 23,053 | $ | (19,251 | ) | $ | 88,263 | $ | 88,263 | ||||||
Loss on early retirement of debt | (17,280 | ) | (17,280 | ) | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 568 | 568 | |||||||||||||||
Interest expense | (21,904 | ) | (21,904 | ) | |||||||||||||
Income before income taxes | $ | 49,647 | $ | 49,647 | |||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 88,688 | $ | 30,432 | $ | (17,766 | ) | ||||||||||
Depreciation and amortization | (13,067 | ) | (3,225 | ) | (904 | ) | |||||||||||
Stock compensation expense | — | — | (1,965 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 75,621 | $ | 27,207 | $ | (20,635 | ) | $ | 82,193 | $ | 82,193 | ||||||
Equity in earnings of unconsolidated subsidiaries | 1,239 | 1,239 | |||||||||||||||
Interest expense | (21,663 | ) | (21,663 | ) | |||||||||||||
Income before income taxes | $ | 61,769 | $ | 61,769 | |||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 189,740 | $ | 48,887 | $ | (32,588 | ) | ||||||||||
Depreciation and amortization | (23,794 | ) | (5,970 | ) | (1,945 | ) | |||||||||||
Stock compensation expense | — | — | (3,537 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 165,946 | $ | 42,917 | $ | (38,070 | ) | $ | 170,793 | $ | 170,793 | ||||||
Loss on early retirement of debt | (18,747 | ) | (17,788 | ) | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 1,626 | 1,626 | |||||||||||||||
Interest expense | (45,362 | ) | (42,952 | ) | |||||||||||||
Income before income taxes | $ | 108,310 | $ | 111,679 | |||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Specialty | Outpatient | Other | |||||||||||||||
Hospitals | Rehabilitation | ||||||||||||||||
(in thousands) | |||||||||||||||||
Adjusted EBITDA | $ | 180,838 | $ | 51,421 | $ | (34,077 | ) | ||||||||||
Depreciation and amortization | (25,162 | ) | (6,437 | ) | (1,826 | ) | |||||||||||
Stock compensation expense | — | — | (4,120 | ) | |||||||||||||
Select | Select | ||||||||||||||||
Medical | Medical | ||||||||||||||||
Holdings | Corporation | ||||||||||||||||
Corporation | |||||||||||||||||
Income (loss) from operations | $ | 155,676 | $ | 44,984 | $ | (40,023 | ) | $ | 160,637 | $ | 160,637 | ||||||
Loss on early retirement of debt | (2,277 | ) | (2,277 | ) | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | 2,147 | 2,147 | |||||||||||||||
Interest expense | (42,279 | ) | (42,279 | ) | |||||||||||||
Income before income taxes | $ | 118,228 | $ | 118,228 |
Income_per_Common_Share_Tables
Income per Common Share (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Income per Common Share | ' | |||||||||||||
Schedule of computation of basic and diluted income per common share | ' | |||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
(in thousands, except per share amounts) | ||||||||||||||
Numerator: | ||||||||||||||
Net income attributable to Select Medical Holdings Corporation | $ | 27,780 | $ | 35,341 | $ | 62,198 | $ | 68,385 | ||||||
Less: Earnings allocated to unvested restricted stockholders | 593 | 919 | 1,304 | 1,683 | ||||||||||
Net income available to common stockholders | $ | 27,187 | $ | 34,422 | $ | 60,894 | $ | 66,702 | ||||||
Denominator: | ||||||||||||||
Weighted average shares – basic | 136,609 | 127,038 | 136,997 | 131,266 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options | 134 | 503 | 168 | 500 | ||||||||||
Weighted average shares – diluted | 136,743 | 127,541 | 137,165 | 131,766 | ||||||||||
Basic income per common share | $ | 0.2 | $ | 0.27 | $ | 0.44 | $ | 0.51 | ||||||
Diluted income per common share | $ | 0.2 | $ | 0.27 | $ | 0.44 | $ | 0.51 | ||||||
Schedule of anti-dilutive shares excluded from computation | ' | |||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
(in thousands) | ||||||||||||||
Stock options | 2,165 | — | 1,554 | — |
Financial_Information_for_Subs1
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes | ' | ||||||||||||||||
Schedule of Consolidating Balance Sheet | ' | ||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Subsidiaries | |||||||||||||||
Company Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Current Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 70 | $ | 2,008 | $ | 1,062 | $ | — | $ | 3,140 | |||||||
Accounts receivable, net | — | 393,071 | 60,113 | — | 453,184 | ||||||||||||
Current deferred tax asset | 6,438 | 5,170 | 4,434 | — | 16,042 | ||||||||||||
Prepaid income taxes | 678 | — | — | — | 678 | ||||||||||||
Intercompany receivables | — | 1,598,454 | 119,844 | (1,718,298 | )(a) | — | |||||||||||
Other current assets | 9,494 | 30,293 | 4,294 | — | 44,081 | ||||||||||||
Total Current Assets | 16,680 | 2,028,996 | 189,747 | (1,718,298 | ) | 517,125 | |||||||||||
Property and equipment, net | 16,515 | 450,197 | 59,637 | — | 526,349 | ||||||||||||
Investment in affiliates | 3,670,956 | 95,534 | — | (3,766,490 | )(b)(c) | — | |||||||||||
Goodwill | — | 1,642,869 | — | — | 1,642,869 | ||||||||||||
Non-current deferred tax asset | 9,480 | — | — | (9,480 | )(d) | — | |||||||||||
Other identifiable intangibles | — | 72,023 | — | — | 72,023 | ||||||||||||
Other assets | 37,662 | 107,159 | 584 | — | 145,405 | ||||||||||||
Total Assets | $ | 3,751,293 | $ | 4,396,778 | $ | 249,968 | $ | (5,494,268 | ) | $ | 2,903,771 | ||||||
Liabilities and Equity | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Bank overdrafts | $ | 9,192 | $ | — | $ | — | $ | — | $ | 9,192 | |||||||
Current portion of long-term debt and notes payable | 6,650 | 7,401 | 727 | — | 14,778 | ||||||||||||
Accounts payable | 10,823 | 75,188 | 12,627 | — | 98,638 | ||||||||||||
Intercompany payables | 1,718,298 | — | — | (1,718,298 | )(a) | — | |||||||||||
Accrued payroll | 9,727 | 64,851 | 158 | — | 74,736 | ||||||||||||
Accrued vacation | 4,916 | 51,188 | 8,023 | — | 64,127 | ||||||||||||
Accrued interest | 10,581 | 404 | — | — | 10,985 | ||||||||||||
Accrued other | 39,317 | 35,896 | 6,211 | — | 81,424 | ||||||||||||
Due to third party payors | — | 1,103 | 878 | — | 1,981 | ||||||||||||
Total Current Liabilities | 1,809,504 | 236,031 | 28,624 | (1,718,298 | ) | 355,861 | |||||||||||
Long-term debt, net of current portion | 1,174,534 | 359,610 | 64,610 | — | 1,598,754 | ||||||||||||
Non-current deferred tax liability | — | 97,430 | 8,031 | (9,480 | )(d) | 95,981 | |||||||||||
Other non-current liabilities | 55,923 | 35,460 | 4,952 | — | 96,335 | ||||||||||||
Total Liabilities | 3,039,961 | 728,531 | 106,217 | (1,727,778 | ) | 2,146,931 | |||||||||||
Redeemable non-controlling interests | — | — | 11,238 | — | 11,238 | ||||||||||||
Stockholder’s Equity: | |||||||||||||||||
Common stock | 0 | — | — | — | 0 | ||||||||||||
Capital in excess of par | 880,584 | — | — | — | 880,584 | ||||||||||||
Retained earnings (accumulated deficit) | (169,252 | ) | 988,645 | 19,053 | (1,007,698 | )(c) | (169,252 | ) | |||||||||
Subsidiary investment | — | 2,679,602 | 79,190 | (2,758,792 | )(b) | — | |||||||||||
Total Select Medical Corporation Stockholders’ Equity | 711,332 | 3,668,247 | 98,243 | (3,766,490 | ) | 711,332 | |||||||||||
Non-controlling interests | — | — | 34,270 | — | 34,270 | ||||||||||||
Total Equity | 711,332 | 3,668,247 | 132,513 | (3,766,490 | ) | 745,602 | |||||||||||
Total Liabilities and Equity | $ | 3,751,293 | $ | 4,396,778 | $ | 249,968 | $ | (5,494,268 | ) | $ | 2,903,771 | ||||||
(a) Elimination of intercompany. | |||||||||||||||||
(b) Elimination of investments in consolidated subsidiaries. | |||||||||||||||||
(c) Elimination of investments in consolidated subsidiaries’ earnings. | |||||||||||||||||
(d) Reclass of non-current deferred tax assset to report net non-current deferred tax liability in consolidation. | |||||||||||||||||
Consolidating Balance Sheet | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Subsidiaries | |||||||||||||||
Company Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Current Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 71 | $ | 3,098 | $ | 1,150 | $ | — | $ | 4,319 | |||||||
Accounts receivable, net | — | 337,517 | 54,452 | (650 | )(a) | 391,319 | |||||||||||
Current deferred tax asset | 7,965 | 5,214 | 4,445 | — | 17,624 | ||||||||||||
Intercompany receivables | — | 1,079,736 | 105,028 | (1,184,764 | )(b) | — | |||||||||||
Other current assets | 9,745 | 26,545 | 4,850 | — | 41,140 | ||||||||||||
Total Current Assets | 17,781 | 1,452,110 | 169,925 | (1,185,414 | ) | 454,402 | |||||||||||
Property and equipment, net | 15,624 | 434,040 | 59,438 | — | 509,102 | ||||||||||||
Investment in affiliates | 3,059,581 | 83,012 | — | (3,142,593 | )(c)(d) | — | |||||||||||
Goodwill | — | 1,642,633 | — | — | 1,642,633 | ||||||||||||
Non-current deferred tax asset | 7,662 | — | — | (7,662 | )(e) | — | |||||||||||
Other identifiable intangibles | — | 71,907 | — | — | 71,907 | ||||||||||||
Other assets | 35,274 | 103,696 | 608 | — | 139,578 | ||||||||||||
Total Assets | $ | 3,135,922 | $ | 3,787,398 | $ | 229,971 | $ | (4,335,669 | ) | $ | 2,817,622 | ||||||
Liabilities and Equity | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Bank overdrafts | $ | 12,506 | $ | — | $ | — | $ | — | $ | 12,506 | |||||||
Current portion of long-term debt and notes payable | 9,107 | 7,317 | 1,141 | — | 17,565 | ||||||||||||
Accounts payable | 6,749 | 68,574 | 12,962 | — | 88,285 | ||||||||||||
Intercompany payables | 1,184,764 | — | — | (1,184,764 | )(b) | — | |||||||||||
Accrued payroll | 1,167 | 88,599 | 245 | — | 90,011 | ||||||||||||
Accrued vacation | 4,619 | 47,682 | 7,429 | — | 59,730 | ||||||||||||
Accrued interest | 11,076 | 1,221 | — | — | 12,297 | ||||||||||||
Accrued other | 59,249 | 23,493 | 7,729 | — | 90,471 | ||||||||||||
Income taxes payable | 622 | — | — | — | 622 | ||||||||||||
Due to third party payors | — | 1 | 686 | (650 | )(a) | 37 | |||||||||||
Total Current Liabilities | 1,289,859 | 236,887 | 30,192 | (1,185,414 | ) | 371,524 | |||||||||||
Long-term debt, net of current portion | 1,006,201 | 364,060 | 57,449 | — | 1,427,710 | ||||||||||||
Non-current deferred tax liability | — | 96,111 | 7,838 | (7,662 | )(e) | 96,287 | |||||||||||
Other non-current liabilities | 53,628 | 33,123 | 5,124 | — | 91,875 | ||||||||||||
Total Liabilities | 2,349,688 | 730,181 | 100,603 | (1,193,076 | ) | 1,987,396 | |||||||||||
Redeemable non-controlling interests | — | — | 11,584 | — | 11,584 | ||||||||||||
Stockholder’s Equity: | |||||||||||||||||
Common stock | 0 | — | — | — | 0 | ||||||||||||
Capital in excess of par | 869,576 | — | — | — | 869,576 | ||||||||||||
Retained earnings | (83,342 | ) | 920,694 | 21,186 | (941,880 | )(d) | (83,342 | ) | |||||||||
Subsidiary investment | — | 2,136,523 | 64,190 | (2,200,713 | )(c) | — | |||||||||||
Total Select Medical Corporation Stockholders’ Equity | 786,234 | 3,057,217 | 85,376 | (3,142,593 | ) | 786,234 | |||||||||||
Non-controlling interests | — | — | 32,408 | — | 32,408 | ||||||||||||
Total Equity | 786,234 | 3,057,217 | 117,784 | (3,142,593 | ) | 818,642 | |||||||||||
Total Liabilities and Equity | $ | 3,135,922 | $ | 3,787,398 | $ | 229,971 | $ | (4,335,669 | ) | $ | 2,817,622 | ||||||
(a) Reclass portion of due to third party payor to accounts receivable net in consolidation. | |||||||||||||||||
(b) Elimination of intercompany. | |||||||||||||||||
(c) Elimination of investments in consolidated subsidiaries. | |||||||||||||||||
(d) Elimination of investments in consolidated subsidiaries’ earnings. | |||||||||||||||||
(e) Reclass of non-current deferred tax assset to report net non-current deferred tax liability in consolidation. | |||||||||||||||||
Schedule of Consolidating Statement of Operations | ' | ||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Three Months Ended June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 131 | $ | 662,400 | $ | 110,231 | $ | — | $ | 772,762 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 485 | 549,172 | 93,224 | — | 642,881 | ||||||||||||
General and administrative | 19,331 | 46 | — | — | 19,377 | ||||||||||||
Bad debt expense | — | 9,662 | 1,453 | — | 11,115 | ||||||||||||
Depreciation and amortization | 904 | 13,632 | 2,660 | — | 17,196 | ||||||||||||
Total costs and expenses | 20,720 | 572,512 | 97,337 | — | 690,569 | ||||||||||||
Income (loss) from operations | (20,589 | ) | 89,888 | 12,894 | — | 82,193 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (266 | ) | 258 | 8 | — | — | |||||||||||
Intercompany management fees | 34,799 | (29,335 | ) | (5,464 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 1,226 | 13 | — | 1,239 | ||||||||||||
Interest expense | (14,526 | ) | (6,039 | ) | (1,098 | ) | — | (21,663 | ) | ||||||||
Income (loss) from operations before income taxes | (582 | ) | 55,998 | 6,353 | — | 61,769 | |||||||||||
Income tax expense | 340 | 23,182 | 253 | — | 23,775 | ||||||||||||
Equity in earnings of subsidiaries | 36,263 | 3,497 | — | (39,760 | )(a) | — | |||||||||||
Net income | 35,341 | 36,313 | 6,100 | (39,760 | ) | 37,994 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 2,653 | — | 2,653 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 35,341 | $ | 36,313 | $ | 3,447 | $ | (39,760 | ) | $ | 35,341 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 234 | $ | 1,317,633 | $ | 217,473 | $ | — | $ | 1,535,340 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 930 | 1,094,981 | 185,734 | — | 1,281,645 | ||||||||||||
General and administrative | 38,643 | (1,143 | ) | — | — | 37,500 | |||||||||||
Bad debt expense | — | 18,826 | 3,307 | — | 22,133 | ||||||||||||
Depreciation and amortization | 1,827 | 26,461 | 5,137 | — | 33,425 | ||||||||||||
Total costs and expenses | 41,400 | 1,139,125 | 194,178 | — | 1,374,703 | ||||||||||||
Income (loss) from operations | (41,166 | ) | 178,508 | 23,295 | — | 160,637 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (548 | ) | 543 | 5 | — | — | |||||||||||
Intercompany management fees | 73,667 | (63,153 | ) | (10,514 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 2,113 | 34 | — | 2,147 | ||||||||||||
Loss on early retirement of debt | (2,277 | ) | — | — | — | (2,277 | ) | ||||||||||
Interest expense | (28,322 | ) | (11,836 | ) | (2,121 | ) | — | (42,279 | ) | ||||||||
Income from operations before income taxes | 1,354 | 106,175 | 10,699 | — | 118,228 | ||||||||||||
Income tax expense | 1,265 | 44,155 | 447 | — | 45,867 | ||||||||||||
Equity in earnings of subsidiaries | 68,296 | 5,931 | — | (74,227 | )(a) | — | |||||||||||
Net income | 68,385 | 67,951 | 10,252 | (74,227 | ) | 72,361 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 3,976 | — | 3,976 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 68,385 | $ | 67,951 | $ | 6,276 | $ | (74,227 | ) | $ | 68,385 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Three Months Ended June 30, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 207 | $ | 652,745 | $ | 103,721 | $ | — | $ | 756,673 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 557 | 537,048 | 88,125 | — | 625,730 | ||||||||||||
General and administrative | 17,853 | 74 | — | — | 17,927 | ||||||||||||
Bad debt expense | — | 7,099 | 1,747 | — | 8,846 | ||||||||||||
Depreciation and amortization | 975 | 12,522 | 2,410 | — | 15,907 | ||||||||||||
Total costs and expenses | 19,385 | 556,743 | 92,282 | — | 668,410 | ||||||||||||
Income (loss) from operations | (19,178 | ) | 96,002 | 11,439 | — | 88,263 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (361 | ) | 355 | 6 | — | — | |||||||||||
Intercompany management fees | 62,247 | (57,217 | ) | (5,030 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 546 | 22 | — | 568 | ||||||||||||
Loss on early retirement of debt | (17,280 | ) | — | — | — | (17,280 | ) | ||||||||||
Interest expense | (15,427 | ) | (5,447 | ) | (1,030 | ) | — | (21,904 | ) | ||||||||
Income from operations before income taxes | 10,001 | 34,239 | 5,407 | — | 49,647 | ||||||||||||
Income tax expense | 6,555 | 13,018 | 196 | — | 19,769 | ||||||||||||
Equity in earnings of subsidiaries | 24,334 | 3,439 | — | (27,773 | )(a) | — | |||||||||||
Net income | 27,780 | 24,660 | 5,211 | (27,773 | ) | 29,878 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 2,098 | — | 2,098 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 27,780 | $ | 24,660 | $ | 3,113 | $ | (27,773 | ) | $ | 27,780 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Consolidating Statement of Operations | |||||||||||||||||
For the Six Months Ended June 30, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation (Parent | Guarantors | Guarantor | |||||||||||||||
Company Only) | Subsidiaries | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net operating revenues | $ | 310 | $ | 1,296,182 | $ | 210,136 | $ | — | $ | 1,506,628 | |||||||
Costs and expenses: | |||||||||||||||||
Cost of services | 1,110 | 1,073,295 | 176,229 | — | 1,250,634 | ||||||||||||
General and administrative | 35,219 | 106 | — | — | 35,325 | ||||||||||||
Bad debt expense | — | 14,922 | 3,245 | — | 18,167 | ||||||||||||
Depreciation and amortization | 1,945 | 25,025 | 4,739 | — | 31,709 | ||||||||||||
Total costs and expenses | 38,274 | 1,113,348 | 184,213 | — | 1,335,835 | ||||||||||||
Income (loss) from operations | (37,964 | ) | 182,834 | 25,923 | — | 170,793 | |||||||||||
Other income and expense: | |||||||||||||||||
Intercompany interest and royalty fees | (755 | ) | 741 | 14 | — | — | |||||||||||
Intercompany management fees | 81,976 | (72,619 | ) | (9,357 | ) | — | — | ||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 1,571 | 55 | — | 1,626 | ||||||||||||
Loss on early retirement of debt | (17,788 | ) | — | — | — | (17,788 | ) | ||||||||||
Interest expense | (30,153 | ) | (10,769 | ) | (2,030 | ) | — | (42,952 | ) | ||||||||
Income (loss) from operations before income taxes | (4,684 | ) | 101,758 | 14,605 | — | 111,679 | |||||||||||
Income tax expense | 1,912 | 40,682 | 215 | — | 42,809 | ||||||||||||
Equity in earnings of subsidiaries | 70,984 | 10,121 | — | (81,105 | )(a) | — | |||||||||||
Net income | 64,388 | 71,197 | 14,390 | (81,105 | ) | 68,870 | |||||||||||
Less: Net income attributable to non-controlling interests | — | — | 4,482 | — | 4,482 | ||||||||||||
Net income attributable to Select Medical Corporation | $ | 64,388 | $ | 71,197 | $ | 9,908 | $ | (81,105 | ) | $ | 64,388 | ||||||
(a) Elimination of equity in earnings of subsidiaries. | |||||||||||||||||
Schedule of Consolidating Statement of Cash Flows | ' | ||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation | Guarantors | Guarantor | |||||||||||||||
(Parent Company | Subsidiaries | ||||||||||||||||
Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 68,385 | $ | 67,951 | $ | 10,252 | $ | (74,227 | )(a) | $ | 72,361 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 1,827 | 26,461 | 5,137 | — | 33,425 | ||||||||||||
Provision for bad debts | — | 18,826 | 3,307 | — | 22,133 | ||||||||||||
Equity in earnings of unconsolidated subsidiaires | — | (2,113 | ) | (34 | ) | — | (2,147 | ) | |||||||||
Loss on early retirement of debt | 2,277 | — | — | — | 2,277 | ||||||||||||
Loss from disposal or sale of assets | — | 28 | 115 | — | 143 | ||||||||||||
Non-cash stock compensation expense | 4,120 | — | — | — | 4,120 | ||||||||||||
Amortization of debt discount, premium and issuance costs | 3,849 | — | — | — | 3,849 | ||||||||||||
Deferred income taxes | 1,275 | — | — | — | 1,275 | ||||||||||||
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | |||||||||||||||||
Equity in earnings of subsidiaries | (68,296 | ) | (5,931 | ) | — | 74,227 | (a) | — | |||||||||
Accounts receivable | — | (75,281 | ) | (8,968 | ) | — | (84,249 | ) | |||||||||
Other current assets | 251 | (3,742 | ) | 556 | — | (2,935 | ) | ||||||||||
Other assets | (2,388 | ) | (1,098 | ) | 24 | — | (3,462 | ) | |||||||||
Accounts payable | 4,074 | 6,604 | (335 | ) | — | 10,343 | |||||||||||
Due to third-party payors | — | 1,752 | 192 | — | 1,944 | ||||||||||||
Accrued expenses | (11,570 | ) | (3,449 | ) | (1,011 | ) | — | (16,030 | ) | ||||||||
Income taxes | (878 | ) | — | — | — | (878 | ) | ||||||||||
Net cash provided by operating activities | 2,926 | 30,008 | 9,235 | — | 42,169 | ||||||||||||
Investing activities | |||||||||||||||||
Purchases of property and equipment | (3,019 | ) | (42,423 | ) | (5,051 | ) | — | (50,493 | ) | ||||||||
Investment in businesses, net of distributions | — | (175 | ) | — | — | (175 | ) | ||||||||||
Acquisition of businesses, net of cash acquired | — | (454 | ) | — | — | (454 | ) | ||||||||||
Net cash used in investing activities | (3,019 | ) | (43,052 | ) | (5,051 | ) | — | (51,122 | ) | ||||||||
Financing activities | |||||||||||||||||
Borrowings on revolving credit facility | 515,000 | — | — | — | 515,000 | ||||||||||||
Payments on revolving credit facility | (425,000 | ) | — | — | — | (425,000 | ) | ||||||||||
Payments on credit facility term loans | (33,994 | ) | — | — | — | (33,994 | ) | ||||||||||
Issuance of 6.375% senior notes, includes premium | 111,650 | — | — | — | 111,650 | ||||||||||||
Borrowings of other debt | 6,111 | — | — | — | 6,111 | ||||||||||||
Principal payments on other debt | (5,046 | ) | (173 | ) | (1,830 | ) | — | (7,049 | ) | ||||||||
Debt issuance costs | (4,434 | ) | — | — | — | (4,434 | ) | ||||||||||
Repayments of bank overdrafts | (3,314 | ) | — | — | — | (3,314 | ) | ||||||||||
Equity investment by Holdings | 5,297 | — | — | — | 5,297 | ||||||||||||
Dividends paid to Holdings | (154,653 | ) | — | — | — | (154,653 | ) | ||||||||||
Intercompany | (11,525 | ) | 12,127 | (602 | ) | — | — | ||||||||||
Distributions to non-controlling interests | — | — | (1,840 | ) | — | (1,840 | ) | ||||||||||
Net cash provided by (used in) financing activities | 92 | 11,954 | (4,272 | ) | — | 7,774 | |||||||||||
Net decrease in cash and cash equivalents | (1 | ) | (1,090 | ) | (88 | ) | — | (1,179 | ) | ||||||||
Cash and cash equivalents at beginning of period | 71 | 3,098 | 1,150 | — | 4,319 | ||||||||||||
Cash and cash equivalents at end of period | $ | 70 | $ | 2,008 | $ | 1,062 | $ | — | $ | 3,140 | |||||||
(a) Elimination of equity in earnings of consolidated subsidiaries. | |||||||||||||||||
Consolidating Statement of Cash Flows | |||||||||||||||||
For the Six Months Ended June 30, 2013 | |||||||||||||||||
(unaudited) | |||||||||||||||||
Select Medical | Subsidiary | Non- | Eliminations | Consolidated | |||||||||||||
Corporation | Guarantors | Guarantor | |||||||||||||||
(Parent Company | Subsidiaries | ||||||||||||||||
Only) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | 64,388 | $ | 71,197 | $ | 14,390 | $ | (81,105 | )(a) | $ | 68,870 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | 1,945 | 25,025 | 4,739 | — | 31,709 | ||||||||||||
Provision for bad debts | — | 14,922 | 3,245 | — | 18,167 | ||||||||||||
Equity in earnings of unconsolidated subsidiaires | — | (1,571 | ) | (55 | ) | — | (1,626 | ) | |||||||||
Loss on early retirement of debt | 17,788 | — | — | — | 17,788 | ||||||||||||
Loss from disposal or sale of assets | — | 74 | 7 | — | 81 | ||||||||||||
Non-cash stock compensation expense | 3,537 | — | — | — | 3,537 | ||||||||||||
Amortization of debt discount and issuance costs | 4,499 | — | — | — | 4,499 | ||||||||||||
Deferred income taxes | 3,192 | — | — | — | 3,192 | ||||||||||||
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | |||||||||||||||||
Equity in earnings of subsidiaries | (70,984 | ) | (10,121 | ) | — | 81,105 | (a) | — | |||||||||
Accounts receivable | — | (70,357 | ) | (13,475 | ) | — | (83,832 | ) | |||||||||
Other current assets | (2,310 | ) | (5,405 | ) | 1,821 | — | (5,894 | ) | |||||||||
Other assets | (5,540 | ) | 5,600 | 84 | — | 144 | |||||||||||
Accounts payable | 1,857 | (3,460 | ) | (1,062 | ) | — | (2,665 | ) | |||||||||
Due to third-party payors | — | 4,390 | 827 | — | 5,217 | ||||||||||||
Accrued expenses | (19,539 | ) | (6,586 | ) | 1,180 | — | (24,945 | ) | |||||||||
Income taxes | (6,640 | ) | — | — | — | (6,640 | ) | ||||||||||
Net cash provided by (used in) operating activities | (7,807 | ) | 23,708 | 11,701 | — | 27,602 | |||||||||||
Investing activities | |||||||||||||||||
Purchases of property and equipment | (1,071 | ) | (23,802 | ) | (3,089 | ) | — | (27,962 | ) | ||||||||
Investment in businesses, net of distributions | — | (28,716 | ) | — | — | (28,716 | ) | ||||||||||
Acquisition of businesses, net of cash acquired | — | (171 | ) | — | — | (171 | ) | ||||||||||
Net cash used in investing activities | (1,071 | ) | (52,689 | ) | (3,089 | ) | — | (56,849 | ) | ||||||||
Financing activities | |||||||||||||||||
Borrowings on revolving credit facility | 455,000 | — | — | — | 455,000 | ||||||||||||
Payments on revolving credit facility | (480,000 | ) | — | — | — | (480,000 | ) | ||||||||||
Borrowings on credit facility term loans, net of discount | 298,500 | — | — | — | 298,500 | ||||||||||||
Payments on credit facility term loans | (592,615 | ) | — | — | — | (592,615 | ) | ||||||||||
Issuance of 6.375% senior notes | 600,000 | — | — | — | 600,000 | ||||||||||||
Repurchase of 7 5/8% senior subordinated notes | (70,000 | ) | — | — | — | (70,000 | ) | ||||||||||
Borrowings of other debt | 5,826 | — | 1,083 | — | 6,909 | ||||||||||||
Principal payments on other debt | (4,057 | ) | (223 | ) | (393 | ) | — | (4,673 | ) | ||||||||
Debt issuance costs | (18,583 | ) | — | — | — | (18,583 | ) | ||||||||||
Dividends paid to Holdings | (196,825 | ) | — | — | — | (196,825 | ) | ||||||||||
Proceeds from bank overdrafts | 1,625 | — | — | — | 1,625 | ||||||||||||
Intercompany | (20,010 | ) | 27,971 | (7,961 | ) | — | — | ||||||||||
Distributions to non-controlling interests | — | — | (1,467 | ) | — | (1,467 | ) | ||||||||||
Net cash provided by (used in) financing activities | (21,139 | ) | 27,748 | (8,738 | ) | — | (2,129 | ) | |||||||||
Net decrease in cash and cash equivalents | (30,017 | ) | (1,233 | ) | (126 | ) | — | (31,376 | ) | ||||||||
Cash and cash equivalents at beginning of period | 35,070 | 3,734 | 1,340 | — | 40,144 | ||||||||||||
Cash and cash equivalents at end of period | $ | 5,053 | $ | 2,501 | $ | 1,214 | $ | — | $ | 8,768 | |||||||
(a) Elimination of equity in earnings of consolidated subsidiaries. |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Indefinite-lived intangible assets: | ' | ' |
Gross Carrying Amount of Goodwill | $1,642,869 | $1,642,633 |
Gross Carrying Amount | 1,714,892 | 1,714,540 |
Trademarks | ' | ' |
Indefinite-lived intangible assets: | ' | ' |
Gross Carrying Amount | 57,709 | 57,709 |
Weighted average time until next renewal | '6 years | ' |
Certificates of need | ' | ' |
Indefinite-lived intangible assets: | ' | ' |
Gross Carrying Amount | 12,231 | 12,115 |
Accreditations | ' | ' |
Indefinite-lived intangible assets: | ' | ' |
Gross Carrying Amount | $2,083 | $2,083 |
Weighted average time until next renewal | '1 year 6 months | ' |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill | ' |
Balance at the beginning of the period | $1,642,633 |
Goodwill acquired during the period | 246 |
Purchase accounting adjustment | -10 |
Balance at the end of the period | 1,642,869 |
Specialty Hospitals | ' |
Goodwill | ' |
Balance at the beginning of the period | 1,334,615 |
Purchase accounting adjustment | -10 |
Balance at the end of the period | 1,334,605 |
Outpatient Rehabilitation | ' |
Goodwill | ' |
Balance at the beginning of the period | 308,018 |
Goodwill acquired during the period | 246 |
Balance at the end of the period | $308,264 |
Share_Repurchase_Details
Share Repurchase (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended |
In Millions, except Share data, unless otherwise specified | Apr. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 |
Share Repurchase | ' | ' | ' |
Increase in the amount authorized to be repurchased under the repurchase program | $150 | ' | ' |
Amount authorized to be repurchased under the repurchase program | 500 | 350 | ' |
Common stock repurchased (in shares) | ' | ' | 11,285,714 |
Total cost of common stock repurchased | ' | ' | 127.5 |
Price of common stock repurchased (in dollars per share) | ' | ' | $11.30 |
Repurchase program available capacity | ' | ' | $198.90 |
Indebtedness_Details
Indebtedness (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | 28-May-13 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 01, 2011 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 03, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 03, 2013 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 04, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 13, 2012 | Jun. 03, 2013 | Jun. 03, 2013 | Feb. 20, 2013 | Mar. 04, 2014 | Jun. 03, 2013 | Mar. 04, 2014 | Jun. 03, 2013 | Jun. 03, 2013 | Jun. 03, 2013 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Mar. 04, 2014 | Mar. 04, 2014 | Jun. 03, 2013 | Jun. 03, 2013 | Jun. 03, 2013 | Jun. 03, 2013 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Mar. 04, 2014 | Jun. 30, 2014 | Mar. 04, 2014 | Mar. 11, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 22, 2013 | |
Select | Select | Select | Select | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | 6.375% senior notes | 6.375% senior notes | 6.375% senior notes | 6.375% senior notes | 6.375% senior notes | 6.375% senior notes | 6.375% senior notes | 6.375% senior notes | 6.375% senior notes | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Revolving credit facility that matures on March 1, 2018 | Revolving credit facility that matures on March 1, 2018 | Revolving credit facility that matures on March 1, 2018 | Revolving credit facility that matures on June 1, 2016 | Revolving credit facility that matures on June 1, 2016 | Term loans | Term loans | Term loans | Term loans | Term loans | Series A term loan | Series A term loan | Series A term loan | Series B Term Loan | Series B Term Loan | Series B Term Loan | Series B Term Loan | Series B Term Loan | Series B Term Loan | Series B Term Loan | Series D Term Loan | Series D Term Loan | Series D Term Loan | Series D Term Loan | Series D Term Loan | Series D Term Loan | Series D Term Loan | Series C Term Loan | Series C Term Loan | Series C Term Loan | Series C Term Loan | Series C Term Loan | Series C Term Loan | Series C Term Loan | Series E Term Loan | Series E Term Loan | Series E Term Loan | Series E Term Loan | Series E Term Loan | Series E Term Loan | Series E Term Loan | Series E Term Loan | Series E Term Loan | Other | Other | Senior floating rate notes | Letters of credit | Letters of credit | Swingline loans | Swingline loans | Additional Notes | 7 5/8% senior subordinated notes | 7 5/8% senior subordinated notes | 7 5/8% senior subordinated notes | 7 5/8% senior subordinated notes | ||||||
Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | Amended senior secured facilities | Amended senior secured facilities | Select | Select | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Select | Select | Select | Select | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Select | Select | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Amended senior secured facilities | Select | Select | Select | Select | Select | Select | Select | Select | |||||||||||||||||||||
Leverage ratio equal to 5.00 to 1.00 | Leverage Ratio Equal to 4.40 to 1.00 | Maximum | Prior to June 1, 2016 | Maximum | Leverage ratio equal to 4.50 to 1.00 | Adjusted LIBO | Alternate base rate | Alternate base rate | Maximum | Proforma ratio less than or equal to 2.75 to 1.00 | Adjusted LIBO | Adjusted LIBO | Alternate base rate | Alternate base rate | Maximum | Maximum | Minimum | Minimum | Proforma ratio less than or equal to 2.75 to 1.00 | Adjusted LIBO | Alternate base rate | Adjusted LIBO | Adjusted LIBO | Alternate base rate | Alternate base rate | Select | Select | Select | Select | Select | Select | Select | Adjusted LIBO | Alternate base rate | Adjusted LIBO rate floor | Minimum | Select | Select | Select | Select | Select | Select | Select | Select | Select | Select | ||||||||||||||||||||||||||||||||||||||||||||||||||
Leverage ratio equal to 5.00 to 1.00 | Prior to June 1, 2016 | Adjusted one-month LIBO | JP Morgan Chase Bank, N.A's Prime Rate | Federal Funds Effective Rate | Proforma ratio less than or equal to 2.75 to 1.00 | Proforma ratio less than or equal to 2.75 to 1.00 | Proforma ratio less than or equal to 2.75 to 1.00 | Adjusted LIBO | Alternate base rate | Adjusted LIBO | Alternate base rate | Adjusted LIBO | Alternate base rate | Prior to September 4, 2014 | Adjusted LIBO | Adjusted LIBO | Alternate base rate | Alternate base rate | Adjusted LIBO | Adjusted LIBO | Alternate base rate | Minimum | Prior to March 4, 2015 | Adjusted LIBO | Adjusted LIBO | Alternate base rate | Alternate base rate | Adjusted LIBO rate floor | Adjusted LIBO rate floor | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proforma ratio less than or equal to 2.75 to 1.00 | Proforma ratio less than or equal to 2.75 to 1.00 | Proforma ratio less than or equal to 2.75 to 1.00 | Proforma ratio less than or equal to 2.75 to 1.00 | Adjusted LIBO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of debt (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.38% | 6.38% | 6.38% | 6.38% | 6.38% | 6.38% | 6.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.38% | 7.63% | 7.63% | 7.63% | 7.63% |
Total debt | ' | ' | $1,613,532,000 | ' | $1,445,275,000 | ' | ' | ' | ' | ' | ' | ' | $711,580,000 | $600,000,000 | ' | ' | ' | $711,600,000 | $600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $110,000,000 | $20,000,000 | $110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $775,329,000 | $807,815,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,623,000 | $17,460,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 780,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: current maturities | ' | ' | 14,778,000 | ' | 17,565,000 | ' | 14,778,000 | ' | 17,565,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | ' | ' | 1,598,754,000 | ' | 1,427,710,000 | ' | 1,598,754,000 | ' | 1,427,710,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 | 6,300,000 | ' | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,150,000,000 | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 293,300,000 | 293,300,000 | 293,300,000 | 6,700,000 | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended maturity amount of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000,000 | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 284,600,000 | 284,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 495,600,000 | 495,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | 75,000,000 | 25,000,000 | 25,000,000 | 110,000,000 | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Adjusted LIBO | 'JPMorgan Chase Bank, N.A.'s Prime Rate | ' | ' | ' | ' | ' | ' | ' | 'Adjusted LIBO | 'Adjusted LIBO | 'Alternate Base Rate | 'Alternate Base Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Adjusted LIBO | 'Alternate Base Rate | ' | 'Adjusted LIBO | 'Adjusted LIBO | 'Alternate Base Rate | 'Alternate Base Rate | 'Adjusted LIBO | 'Alternate Base Rate | ' | ' | ' | 'Adjusted LIBO | 'Adjusted LIBO | 'Alternate Base Rate | 'Alternate Base Rate | 'Adjusted LIBO | 'Alternate Base Rate | 'Adjusted LIBO rate floor | ' | 'Adjusted LIBO | 'Alternate Base Rate | ' | ' | ' | ' | 'Adjusted LIBO | 'Adjusted LIBO | 'Alternate Base Rate | 'Alternate Base Rate | 'Adjusted LIBO rate floor | 'Adjusted LIBO rate floor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | ' | 2.75% | ' | 3.75% | 2.75% | 2.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | 2.75% | ' | 3.25% | 3.75% | 2.25% | 2.75% | 3.25% | 2.25% | ' | ' | ' | 2.75% | 2.75% | 1.75% | 1.75% | 3.00% | 2.00% | 1.00% | 1.75% | 3.00% | 2.00% | 1.00% | ' | ' | ' | 2.75% | 2.75% | 1.75% | 1.75% | 1.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro forma ratio of total indebtedness to Consolidated EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal prepayments from excess cash flow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio of financial maintenance covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 4.47 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment premium (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate as a portion of 1% over weighted average rate on overnight Federal Funds (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis for variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of excess cash flow to be used for prepayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net cash proceeds received from non-ordinary course asset sales or other dispositions, or as a result of a casualty or condemnation to be used for prepayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net proceeds received from the issuance of debt obligations other than certain permitted debt obligations to be used for prepayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Periodic payment in equal quarterly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding at maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 279,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 479,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability under revolving loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 147,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Consecutive period for financial maintenance covenant of leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of the principal amount representing the redemption price of notes which may be redeemed with proceeds from certain equity offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount at which notes may be required to be repurchased in event of change of control by the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issue price (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.50% | ' | ' | ' | ' |
Gross proceeds from issuance of additional notes | ' | ' | 111,650,000 | 600,000,000 | ' | ' | 111,650,000 | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,700,000 | ' | ' | ' | ' |
Maturities of Long-Term Debt and Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
July 1, 2014 - December 31, 2014 | ' | ' | 9,647,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | 10,538,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | 286,916,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | 4,265,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | 590,216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 and beyond | ' | ' | 711,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss recognized associated with refinancing activities | $17,280,000 | ($1,500,000) | $2,277,000 | $18,747,000 | ' | $17,280,000 | $2,277,000 | $17,788,000 | ' | ' | ' | ' | ' | ' | ' | ' | $17,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' |
Fair_Value_Details
Fair Value (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | 28-May-13 |
Fair Value | ' | ' | ' | ' |
Carrying value | $1,613,532,000 | $1,445,275,000 | ' | ' |
Senior secured credit facilities | Select | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Carrying value | 885,300,000 | 827,800,000 | ' | ' |
Fair value | 881,100,000 | 834,700,000 | ' | ' |
6.375% senior notes | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Carrying value | 711,580,000 | 600,000,000 | ' | ' |
Interest rate of debt (as a percent) | 6.38% | 6.38% | 6.38% | ' |
6.375% senior notes | Select | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Carrying value | 711,600,000 | 600,000,000 | ' | ' |
Fair value | $742,000,000 | $586,500,000 | ' | ' |
Interest rate of debt (as a percent) | 6.38% | 6.38% | 6.38% | 6.38% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Summary of selected financial data | ' | ' | ' | ' | ' |
Net operating revenues | $772,762 | $756,673 | $1,535,340 | $1,506,628 | ' |
Adjusted EBITDA | 101,354 | 105,958 | 198,182 | 206,039 | ' |
Total assets: | 2,903,771 | 2,845,055 | 2,903,771 | 2,845,055 | 2,817,622 |
Capital expenditures | 23,194 | 13,963 | 50,493 | 27,962 | ' |
Operating Segments | Specialty Hospitals | ' | ' | ' | ' | ' |
Summary of selected financial data | ' | ' | ' | ' | ' |
Net operating revenues | 557,833 | 559,386 | 1,122,458 | 1,117,137 | ' |
Adjusted EBITDA | 88,688 | 96,393 | 180,838 | 189,740 | ' |
Total assets: | 2,271,256 | 2,229,458 | 2,271,256 | 2,229,458 | ' |
Capital expenditures | 19,800 | 10,203 | 41,298 | 21,100 | ' |
Operating Segments | Outpatient Rehabilitation | ' | ' | ' | ' | ' |
Summary of selected financial data | ' | ' | ' | ' | ' |
Net operating revenues | 214,798 | 197,080 | 412,648 | 389,181 | ' |
Adjusted EBITDA | 30,432 | 26,054 | 51,421 | 48,887 | ' |
Total assets: | 532,529 | 502,497 | 532,529 | 502,497 | ' |
Capital expenditures | 2,546 | 2,999 | 6,176 | 5,844 | ' |
Other | ' | ' | ' | ' | ' |
Summary of selected financial data | ' | ' | ' | ' | ' |
Net operating revenues | 131 | 207 | 234 | 310 | ' |
Adjusted EBITDA | -17,766 | -16,489 | -34,077 | -32,588 | ' |
Total assets: | 99,986 | 113,100 | 99,986 | 113,100 | ' |
Capital expenditures | $848 | $761 | $3,019 | $1,018 | ' |
Other | Outpatient Rehabilitation | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 2 | ' | ' |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment information | ' | ' | ' | ' | ' |
Adjusted EBITDA | $101,354 | $105,958 | ' | $198,182 | $206,039 |
Depreciation and amortization | -17,196 | -15,907 | ' | -33,425 | -31,709 |
Income from operations | 82,193 | 88,263 | ' | 160,637 | 170,793 |
Loss on early retirement of debt | ' | -17,280 | 1,500 | -2,277 | -18,747 |
Equity in earnings of unconsolidated subsidiaries | 1,239 | 568 | ' | 2,147 | 1,626 |
Interest expense | -21,663 | -21,904 | ' | -42,279 | -45,362 |
Income before income taxes | 61,769 | 49,647 | ' | 118,228 | 108,310 |
Select | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Depreciation and amortization | -17,196 | -15,907 | ' | -33,425 | -31,709 |
Income from operations | 82,193 | 88,263 | ' | 160,637 | 170,793 |
Loss on early retirement of debt | ' | -17,280 | ' | -2,277 | -17,788 |
Equity in earnings of unconsolidated subsidiaries | 1,239 | 568 | ' | 2,147 | 1,626 |
Interest expense | -21,663 | -21,904 | ' | -42,279 | -42,952 |
Income before income taxes | 61,769 | 49,647 | ' | 118,228 | 111,679 |
Operating Segments | Specialty Hospitals | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Adjusted EBITDA | 88,688 | 96,393 | ' | 180,838 | 189,740 |
Depreciation and amortization | -13,067 | -11,932 | ' | -25,162 | -23,794 |
Income from operations | 75,621 | 84,461 | ' | 155,676 | 165,946 |
Operating Segments | Outpatient Rehabilitation | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Adjusted EBITDA | 30,432 | 26,054 | ' | 51,421 | 48,887 |
Depreciation and amortization | -3,225 | -3,001 | ' | -6,437 | -5,970 |
Income from operations | 27,207 | 23,053 | ' | 44,984 | 42,917 |
Other | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Adjusted EBITDA | -17,766 | -16,489 | ' | -34,077 | -32,588 |
Depreciation and amortization | -904 | -974 | ' | -1,826 | -1,945 |
Stock compensation expense | -1,965 | -1,788 | ' | -4,120 | -3,537 |
Income from operations | ($20,635) | ($19,251) | ' | ($40,023) | ($38,070) |
Income_per_Common_Share_Detail
Income per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income attributable to Select Medical Holdings Corporation | $35,341 | $27,780 | $68,385 | $62,198 |
Less: Earnings allocated to unvested restricted stockholders | 919 | 593 | 1,683 | 1,304 |
Net income available to common stockholders | $34,422 | $27,187 | $66,702 | $60,894 |
Denominator: | ' | ' | ' | ' |
Weighted average shares - basic | 127,038 | 136,609 | 131,266 | 136,997 |
Effect of dilutive securities: Stock options (in shares) | 503 | 134 | 500 | 168 |
Weighted average shares - diluted | 127,541 | 136,743 | 131,766 | 137,165 |
Income per common share | ' | ' | ' | ' |
Basic income per common share (in dollars per share) | $0.27 | $0.20 | $0.51 | $0.44 |
Diluted income per common share (in dollars per share) | $0.27 | $0.20 | $0.51 | $0.44 |
Anti-dilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Stock options (in shares) | ' | 2,165 | ' | 1,554 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Jun. 30, 2014 | Mar. 29, 2013 | Jan. 08, 2013 | Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | SSH-Evansville | SSH-Evansville | SSH-Evansville | Professional liability claims | General liability claims | |
Amended complaint | Amended complaint | Amended complaint | ||||
item | item | |||||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' |
Self insurance retention per occurrence | ' | ' | ' | ' | $2 | $2 |
Number of case managers identified as plaintiff | ' | ' | 2 | ' | ' | ' |
Number of physicians named as defendants | ' | ' | 2 | ' | ' | ' |
Number of days the deadlines have been stayed from the Magistrate judge | ' | '90 days | ' | ' | ' | ' |
Period after which patients were readmitted to short-stay acute care hospitals to enable billing for two admissions | ' | ' | ' | '9 days | ' | ' |
Number of admissions into hospitals | ' | ' | ' | 2 | ' | ' |
Construction Commitments | ' | ' | ' | ' | ' | ' |
Outstanding commitments under construction contracts | $13.80 | ' | ' | ' | ' | ' |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event, USD $) | 0 Months Ended |
Aug. 06, 2014 | |
Subsequent Event | ' |
Subsequent Event | ' |
Cash dividend declared (in dollars per share) | $0.10 |
Financial_Information_for_Subs2
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes (Details) (6.375% senior notes) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | 28-May-13 |
Financial information for subsidiary guarantors and non-guarantor subsidiaries under select's 6.375% senior notes | ' | ' | ' | ' |
Interest rate of debt (as a percent) | 6.38% | 6.38% | 6.38% | ' |
Select | ' | ' | ' | ' |
Financial information for subsidiary guarantors and non-guarantor subsidiaries under select's 6.375% senior notes | ' | ' | ' | ' |
Interest rate of debt (as a percent) | 6.38% | 6.38% | 6.38% | 6.38% |
Financial_Information_for_Subs3
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $3,140 | $4,319 | $8,768 | $40,144 |
Accounts receivable, net | 453,184 | 391,319 | ' | ' |
Current deferred tax asset | 16,042 | 17,624 | ' | ' |
Prepaid income taxes | 678 | ' | ' | ' |
Other current assets | 44,081 | 41,140 | ' | ' |
Total Current Assets | 517,125 | 454,402 | ' | ' |
Property and equipment, net | 526,349 | 509,102 | ' | ' |
Goodwill | 1,642,869 | 1,642,633 | ' | ' |
Other identifiable intangibles | 72,023 | 71,907 | ' | ' |
Other assets | 145,405 | 139,578 | ' | ' |
Total Assets | 2,903,771 | 2,817,622 | 2,845,055 | ' |
Current Liabilities: | ' | ' | ' | ' |
Bank overdrafts | 9,192 | 12,506 | ' | ' |
Current portion of long-term debt and notes payable | 14,778 | 17,565 | ' | ' |
Accounts payable | 98,638 | 88,285 | ' | ' |
Accrued payroll | 74,736 | 90,011 | ' | ' |
Accrued vacation | 64,127 | 59,730 | ' | ' |
Accrued interest | 10,985 | 12,297 | ' | ' |
Accrued other | 81,424 | 90,471 | ' | ' |
Income taxes payable | ' | 622 | ' | ' |
Due to third party payors | 1,981 | 37 | ' | ' |
Total Current Liabilities | 355,861 | 371,524 | ' | ' |
Long-term debt, net of current portion | 1,598,754 | 1,427,710 | ' | ' |
Non-current deferred tax liability | 95,981 | 96,287 | ' | ' |
Other non-current liabilities | 96,335 | 91,875 | ' | ' |
Total Liabilities | 2,146,931 | 1,987,396 | ' | ' |
Redeemable non-controlling interests | 11,238 | 11,584 | ' | ' |
Stockholder's Equity: | ' | ' | ' | ' |
Common stock | 130 | 140 | ' | ' |
Capital in excess of par | 410,721 | 474,729 | ' | ' |
Retained earnings (accumulated deficit) | 300,481 | 311,365 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | 711,332 | 786,234 | ' | ' |
Non-controlling interests | 34,270 | 32,408 | ' | ' |
Total Equity | 745,602 | 818,642 | ' | ' |
Total Liabilities and Equity | 2,903,771 | 2,817,622 | ' | ' |
Select Medical Corporation | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 3,140 | 4,319 | 8,768 | 40,144 |
Accounts receivable, net | 453,184 | 391,319 | ' | ' |
Current deferred tax asset | 16,042 | 17,624 | ' | ' |
Prepaid income taxes | 678 | ' | ' | ' |
Other current assets | 44,081 | 41,140 | ' | ' |
Total Current Assets | 517,125 | 454,402 | ' | ' |
Property and equipment, net | 526,349 | 509,102 | ' | ' |
Goodwill | 1,642,869 | 1,642,633 | ' | ' |
Other identifiable intangibles | 72,023 | 71,907 | ' | ' |
Other assets | 145,405 | 139,578 | ' | ' |
Total Assets | 2,903,771 | 2,817,622 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Bank overdrafts | 9,192 | 12,506 | ' | ' |
Current portion of long-term debt and notes payable | 14,778 | 17,565 | ' | ' |
Accounts payable | 98,638 | 88,285 | ' | ' |
Accrued payroll | 74,736 | 90,011 | ' | ' |
Accrued vacation | 64,127 | 59,730 | ' | ' |
Accrued interest | 10,985 | 12,297 | ' | ' |
Accrued other | 81,424 | 90,471 | ' | ' |
Income taxes payable | ' | 622 | ' | ' |
Due to third party payors | 1,981 | 37 | ' | ' |
Total Current Liabilities | 355,861 | 371,524 | ' | ' |
Long-term debt, net of current portion | 1,598,754 | 1,427,710 | ' | ' |
Non-current deferred tax liability | 95,981 | 96,287 | ' | ' |
Other non-current liabilities | 96,335 | 91,875 | ' | ' |
Total Liabilities | 2,146,931 | 1,987,396 | ' | ' |
Redeemable non-controlling interests | 11,238 | 11,584 | ' | ' |
Stockholder's Equity: | ' | ' | ' | ' |
Common stock | 0 | 0 | ' | ' |
Capital in excess of par | 880,584 | 869,576 | ' | ' |
Retained earnings (accumulated deficit) | -169,252 | -83,342 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | 711,332 | 786,234 | ' | ' |
Non-controlling interests | 34,270 | 32,408 | ' | ' |
Total Equity | 745,602 | 818,642 | ' | ' |
Total Liabilities and Equity | 2,903,771 | 2,817,622 | ' | ' |
Select Medical Corporation | Reportable legal entities | Select Medical Corporation (Parent Company Only) | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 70 | 71 | 5,053 | 35,070 |
Current deferred tax asset | 6,438 | 7,965 | ' | ' |
Prepaid income taxes | 678 | ' | ' | ' |
Other current assets | 9,494 | 9,745 | ' | ' |
Total Current Assets | 16,680 | 17,781 | ' | ' |
Property and equipment, net | 16,515 | 15,624 | ' | ' |
Investment in affiliates | 3,670,956 | 3,059,581 | ' | ' |
Non-current deferred tax asset | 9,480 | 7,662 | ' | ' |
Other assets | 37,662 | 35,274 | ' | ' |
Total Assets | 3,751,293 | 3,135,922 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Bank overdrafts | 9,192 | 12,506 | ' | ' |
Current portion of long-term debt and notes payable | 6,650 | 9,107 | ' | ' |
Accounts payable | 10,823 | 6,749 | ' | ' |
Intercompany payables | 1,718,298 | 1,184,764 | ' | ' |
Accrued payroll | 9,727 | 1,167 | ' | ' |
Accrued vacation | 4,916 | 4,619 | ' | ' |
Accrued interest | 10,581 | 11,076 | ' | ' |
Accrued other | 39,317 | 59,249 | ' | ' |
Income taxes payable | ' | 622 | ' | ' |
Total Current Liabilities | 1,809,504 | 1,289,859 | ' | ' |
Long-term debt, net of current portion | 1,174,534 | 1,006,201 | ' | ' |
Other non-current liabilities | 55,923 | 53,628 | ' | ' |
Total Liabilities | 3,039,961 | 2,349,688 | ' | ' |
Stockholder's Equity: | ' | ' | ' | ' |
Common stock | 0 | 0 | ' | ' |
Capital in excess of par | 880,584 | 869,576 | ' | ' |
Retained earnings (accumulated deficit) | -169,252 | -83,342 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | 711,332 | 786,234 | ' | ' |
Total Equity | 711,332 | 786,234 | ' | ' |
Total Liabilities and Equity | 3,751,293 | 3,135,922 | ' | ' |
Select Medical Corporation | Reportable legal entities | Subsidiary Guarantors | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 2,008 | 3,098 | 2,501 | 3,734 |
Accounts receivable, net | 393,071 | 337,517 | ' | ' |
Current deferred tax asset | 5,170 | 5,214 | ' | ' |
Intercompany receivables | 1,598,454 | 1,079,736 | ' | ' |
Other current assets | 30,293 | 26,545 | ' | ' |
Total Current Assets | 2,028,996 | 1,452,110 | ' | ' |
Property and equipment, net | 450,197 | 434,040 | ' | ' |
Investment in affiliates | 95,534 | 83,012 | ' | ' |
Goodwill | 1,642,869 | 1,642,633 | ' | ' |
Other identifiable intangibles | 72,023 | 71,907 | ' | ' |
Other assets | 107,159 | 103,696 | ' | ' |
Total Assets | 4,396,778 | 3,787,398 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of long-term debt and notes payable | 7,401 | 7,317 | ' | ' |
Accounts payable | 75,188 | 68,574 | ' | ' |
Accrued payroll | 64,851 | 88,599 | ' | ' |
Accrued vacation | 51,188 | 47,682 | ' | ' |
Accrued interest | 404 | 1,221 | ' | ' |
Accrued other | 35,896 | 23,493 | ' | ' |
Due to third party payors | 1,103 | 1 | ' | ' |
Total Current Liabilities | 236,031 | 236,887 | ' | ' |
Long-term debt, net of current portion | 359,610 | 364,060 | ' | ' |
Non-current deferred tax liability | 97,430 | 96,111 | ' | ' |
Other non-current liabilities | 35,460 | 33,123 | ' | ' |
Total Liabilities | 728,531 | 730,181 | ' | ' |
Stockholder's Equity: | ' | ' | ' | ' |
Retained earnings (accumulated deficit) | 988,645 | 920,694 | ' | ' |
Subsidiary investment | 2,679,602 | 2,136,523 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | 3,668,247 | 3,057,217 | ' | ' |
Total Equity | 3,668,247 | 3,057,217 | ' | ' |
Total Liabilities and Equity | 4,396,778 | 3,787,398 | ' | ' |
Select Medical Corporation | Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 1,062 | 1,150 | 1,214 | 1,340 |
Accounts receivable, net | 60,113 | 54,452 | ' | ' |
Current deferred tax asset | 4,434 | 4,445 | ' | ' |
Intercompany receivables | 119,844 | 105,028 | ' | ' |
Other current assets | 4,294 | 4,850 | ' | ' |
Total Current Assets | 189,747 | 169,925 | ' | ' |
Property and equipment, net | 59,637 | 59,438 | ' | ' |
Other assets | 584 | 608 | ' | ' |
Total Assets | 249,968 | 229,971 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of long-term debt and notes payable | 727 | 1,141 | ' | ' |
Accounts payable | 12,627 | 12,962 | ' | ' |
Accrued payroll | 158 | 245 | ' | ' |
Accrued vacation | 8,023 | 7,429 | ' | ' |
Accrued other | 6,211 | 7,729 | ' | ' |
Due to third party payors | 878 | 686 | ' | ' |
Total Current Liabilities | 28,624 | 30,192 | ' | ' |
Long-term debt, net of current portion | 64,610 | 57,449 | ' | ' |
Non-current deferred tax liability | 8,031 | 7,838 | ' | ' |
Other non-current liabilities | 4,952 | 5,124 | ' | ' |
Total Liabilities | 106,217 | 100,603 | ' | ' |
Redeemable non-controlling interests | 11,238 | 11,584 | ' | ' |
Stockholder's Equity: | ' | ' | ' | ' |
Retained earnings (accumulated deficit) | 19,053 | 21,186 | ' | ' |
Subsidiary investment | 79,190 | 64,190 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | 98,243 | 85,376 | ' | ' |
Non-controlling interests | 34,270 | 32,408 | ' | ' |
Total Equity | 132,513 | 117,784 | ' | ' |
Total Liabilities and Equity | 249,968 | 229,971 | ' | ' |
Select Medical Corporation | Eliminations | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Accounts receivable, net | ' | -650 | ' | ' |
Intercompany receivables | -1,718,298 | -1,184,764 | ' | ' |
Total Current Assets | -1,718,298 | -1,185,414 | ' | ' |
Investment in affiliates | -3,766,490 | -3,142,593 | ' | ' |
Non-current deferred tax asset | -9,480 | -7,662 | ' | ' |
Total Assets | -5,494,268 | -4,335,669 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Intercompany payables | -1,718,298 | -1,184,764 | ' | ' |
Due to third party payors | ' | -650 | ' | ' |
Total Current Liabilities | -1,718,298 | -1,185,414 | ' | ' |
Non-current deferred tax liability | -9,480 | -7,662 | ' | ' |
Total Liabilities | -1,727,778 | -1,193,076 | ' | ' |
Stockholder's Equity: | ' | ' | ' | ' |
Retained earnings (accumulated deficit) | -1,007,698 | -941,880 | ' | ' |
Subsidiary investment | -2,758,792 | -2,200,713 | ' | ' |
Total Select Medical Holdings Corporation and Select Medical Corporation Stockholders' Equity | -3,766,490 | -3,142,593 | ' | ' |
Total Equity | -3,766,490 | -3,142,593 | ' | ' |
Total Liabilities and Equity | ($5,494,268) | ($4,335,669) | ' | ' |
Financial_Information_for_Subs4
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidating Statement of Operations | ' | ' | ' | ' | ' |
Net operating revenues | $772,762 | $756,673 | ' | $1,535,340 | $1,506,628 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of services | 642,881 | 625,730 | ' | 1,281,645 | 1,250,634 |
General and administrative | 19,377 | 17,927 | ' | 37,500 | 35,325 |
Bad debt expense | 11,115 | 8,846 | ' | 22,133 | 18,167 |
Depreciation and amortization | 17,196 | 15,907 | ' | 33,425 | 31,709 |
Total costs and expenses | 690,569 | 668,410 | ' | 1,374,703 | 1,335,835 |
Income from operations | 82,193 | 88,263 | ' | 160,637 | 170,793 |
Other income and expense: | ' | ' | ' | ' | ' |
Equity in earnings of unconsolidated subsidiaries | 1,239 | 568 | ' | 2,147 | 1,626 |
Loss on early retirement of debt | ' | -17,280 | 1,500 | -2,277 | -18,747 |
Interest expense | -21,663 | -21,904 | ' | -42,279 | -45,362 |
Income before income taxes | 61,769 | 49,647 | ' | 118,228 | 108,310 |
Income tax expense | 23,775 | 19,769 | ' | 45,867 | 41,630 |
Net income | 37,994 | 29,878 | ' | 72,361 | 66,680 |
Less: Net income attributable to non-controlling interests | 2,653 | 2,098 | ' | 3,976 | 4,482 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | 35,341 | 27,780 | ' | 68,385 | 62,198 |
Select Medical Corporation | ' | ' | ' | ' | ' |
Consolidating Statement of Operations | ' | ' | ' | ' | ' |
Net operating revenues | 772,762 | 756,673 | ' | 1,535,340 | 1,506,628 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of services | 642,881 | 625,730 | ' | 1,281,645 | 1,250,634 |
General and administrative | 19,377 | 17,927 | ' | 37,500 | 35,325 |
Bad debt expense | 11,115 | 8,846 | ' | 22,133 | 18,167 |
Depreciation and amortization | 17,196 | 15,907 | ' | 33,425 | 31,709 |
Total costs and expenses | 690,569 | 668,410 | ' | 1,374,703 | 1,335,835 |
Income from operations | 82,193 | 88,263 | ' | 160,637 | 170,793 |
Other income and expense: | ' | ' | ' | ' | ' |
Equity in earnings of unconsolidated subsidiaries | 1,239 | 568 | ' | 2,147 | 1,626 |
Loss on early retirement of debt | ' | -17,280 | ' | -2,277 | -17,788 |
Interest expense | -21,663 | -21,904 | ' | -42,279 | -42,952 |
Income before income taxes | 61,769 | 49,647 | ' | 118,228 | 111,679 |
Income tax expense | 23,775 | 19,769 | ' | 45,867 | 42,809 |
Net income | 37,994 | 29,878 | ' | 72,361 | 68,870 |
Less: Net income attributable to non-controlling interests | 2,653 | 2,098 | ' | 3,976 | 4,482 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | 35,341 | 27,780 | ' | 68,385 | 64,388 |
Select Medical Corporation | Reportable legal entities | Select Medical Corporation (Parent Company Only) | ' | ' | ' | ' | ' |
Consolidating Statement of Operations | ' | ' | ' | ' | ' |
Net operating revenues | 131 | 207 | ' | 234 | 310 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of services | 485 | 557 | ' | 930 | 1,110 |
General and administrative | 19,331 | 17,853 | ' | 38,643 | 35,219 |
Depreciation and amortization | 904 | 975 | ' | 1,827 | 1,945 |
Total costs and expenses | 20,720 | 19,385 | ' | 41,400 | 38,274 |
Income from operations | -20,589 | -19,178 | ' | -41,166 | -37,964 |
Other income and expense: | ' | ' | ' | ' | ' |
Intercompany interest and royalty fees | -266 | -361 | ' | -548 | -755 |
Intercompany management fees | 34,799 | 62,247 | ' | 73,667 | 81,976 |
Loss on early retirement of debt | ' | -17,280 | ' | -2,277 | -17,788 |
Interest expense | -14,526 | -15,427 | ' | -28,322 | -30,153 |
Income before income taxes | -582 | 10,001 | ' | 1,354 | -4,684 |
Income tax expense | 340 | 6,555 | ' | 1,265 | 1,912 |
Equity in earnings of subsidiaries | 36,263 | 24,334 | ' | 68,296 | 70,984 |
Net income | 35,341 | 27,780 | ' | 68,385 | 64,388 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | 35,341 | 27,780 | ' | 68,385 | 64,388 |
Select Medical Corporation | Reportable legal entities | Subsidiary Guarantors | ' | ' | ' | ' | ' |
Consolidating Statement of Operations | ' | ' | ' | ' | ' |
Net operating revenues | 662,400 | 652,745 | ' | 1,317,633 | 1,296,182 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of services | 549,172 | 537,048 | ' | 1,094,981 | 1,073,295 |
General and administrative | 46 | 74 | ' | -1,143 | 106 |
Bad debt expense | 9,662 | 7,099 | ' | 18,826 | 14,922 |
Depreciation and amortization | 13,632 | 12,522 | ' | 26,461 | 25,025 |
Total costs and expenses | 572,512 | 556,743 | ' | 1,139,125 | 1,113,348 |
Income from operations | 89,888 | 96,002 | ' | 178,508 | 182,834 |
Other income and expense: | ' | ' | ' | ' | ' |
Intercompany interest and royalty fees | 258 | 355 | ' | 543 | 741 |
Intercompany management fees | -29,335 | -57,217 | ' | -63,153 | -72,619 |
Equity in earnings of unconsolidated subsidiaries | 1,226 | 546 | ' | 2,113 | 1,571 |
Interest expense | -6,039 | -5,447 | ' | -11,836 | -10,769 |
Income before income taxes | 55,998 | 34,239 | ' | 106,175 | 101,758 |
Income tax expense | 23,182 | 13,018 | ' | 44,155 | 40,682 |
Equity in earnings of subsidiaries | 3,497 | 3,439 | ' | 5,931 | 10,121 |
Net income | 36,313 | 24,660 | ' | 67,951 | 71,197 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | 36,313 | 24,660 | ' | 67,951 | 71,197 |
Select Medical Corporation | Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Consolidating Statement of Operations | ' | ' | ' | ' | ' |
Net operating revenues | 110,231 | 103,721 | ' | 217,473 | 210,136 |
Costs and expenses: | ' | ' | ' | ' | ' |
Cost of services | 93,224 | 88,125 | ' | 185,734 | 176,229 |
Bad debt expense | 1,453 | 1,747 | ' | 3,307 | 3,245 |
Depreciation and amortization | 2,660 | 2,410 | ' | 5,137 | 4,739 |
Total costs and expenses | 97,337 | 92,282 | ' | 194,178 | 184,213 |
Income from operations | 12,894 | 11,439 | ' | 23,295 | 25,923 |
Other income and expense: | ' | ' | ' | ' | ' |
Intercompany interest and royalty fees | 8 | 6 | ' | 5 | 14 |
Intercompany management fees | -5,464 | -5,030 | ' | -10,514 | -9,357 |
Equity in earnings of unconsolidated subsidiaries | 13 | 22 | ' | 34 | 55 |
Interest expense | -1,098 | -1,030 | ' | -2,121 | -2,030 |
Income before income taxes | 6,353 | 5,407 | ' | 10,699 | 14,605 |
Income tax expense | 253 | 196 | ' | 447 | 215 |
Net income | 6,100 | 5,211 | ' | 10,252 | 14,390 |
Less: Net income attributable to non-controlling interests | 2,653 | 2,098 | ' | 3,976 | 4,482 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | 3,447 | 3,113 | ' | 6,276 | 9,908 |
Select Medical Corporation | Eliminations | ' | ' | ' | ' | ' |
Other income and expense: | ' | ' | ' | ' | ' |
Equity in earnings of subsidiaries | -39,760 | -27,773 | ' | -74,227 | -81,105 |
Net income | -39,760 | -27,773 | ' | -74,227 | -81,105 |
Net income attributable to Select Medical Holdings Corporation and Select Medical Corporation | ($39,760) | ($27,773) | ' | ($74,227) | ($81,105) |
Financial_Information_for_Subs5
Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries under Select's 6.375% Senior Notes (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' | ' | ' | ' |
Net income | $37,994 | $29,878 | ' | $72,361 | $66,680 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 17,196 | 15,907 | ' | 33,425 | 31,709 |
Provision for bad debts | 11,115 | 8,846 | ' | 22,133 | 18,167 |
Equity in earnings of unconsolidated subsidiaries | -1,239 | -568 | ' | -2,147 | -1,626 |
Loss on early retirement of debt | ' | 17,280 | -1,500 | 2,277 | 18,747 |
Loss from disposal or sale of assets | ' | ' | ' | 143 | 81 |
Non-cash stock compensation expense | ' | ' | ' | 4,120 | 3,537 |
Amortization of debt discount, premium and issuance costs | ' | ' | ' | 3,849 | 4,588 |
Deferred income taxes | ' | ' | ' | 1,275 | 3,192 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | -84,249 | -83,832 |
Other current assets | ' | ' | ' | -2,935 | -5,894 |
Other assets | ' | ' | ' | -3,462 | 144 |
Accounts payable | ' | ' | ' | 10,343 | -2,665 |
Due to third-party payors | ' | ' | ' | 1,944 | 5,217 |
Accrued expenses | ' | ' | ' | -16,030 | -28,203 |
Income taxes | ' | ' | ' | -878 | -7,819 |
Net cash provided by operating activities | ' | ' | ' | 42,169 | 22,023 |
Investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | -23,194 | -13,963 | ' | -50,493 | -27,962 |
Investment in businesses, net of distributions | ' | ' | ' | -175 | -28,716 |
Acquisition of businesses, net of cash acquired | ' | ' | ' | -454 | -171 |
Net cash used in investing activities | ' | ' | ' | -51,122 | -56,849 |
Financing activities | ' | ' | ' | ' | ' |
Borrowings on revolving credit facility | ' | ' | ' | 515,000 | 455,000 |
Payments on revolving credit facility | ' | ' | ' | -425,000 | -480,000 |
Borrowings on credit facility term loans, net of discount | ' | ' | ' | ' | 298,500 |
Payments on credit facility term loans | ' | ' | ' | -33,994 | -592,615 |
Repurchase of 7 5/8% senior subordinated notes | ' | ' | ' | ' | -70,000 |
Borrowings of other debt | ' | ' | ' | 6,111 | 6,909 |
Principal payments on other debt | ' | ' | ' | -7,049 | -4,673 |
Debt issuance costs | ' | ' | ' | -4,434 | -18,583 |
Repayments of bank overdrafts | ' | ' | ' | -3,314 | 1,625 |
Dividends paid to Holdings | ' | ' | ' | -27,153 | -13,963 |
Distributions to non-controlling interests | ' | ' | ' | -1,840 | -1,467 |
Net cash provided by (used in) financing activities | ' | ' | ' | 7,774 | 3,450 |
Net decrease in cash and cash equivalents | ' | ' | ' | -1,179 | -31,376 |
Cash and cash equivalents at beginning of period | ' | ' | 40,144 | 4,319 | 40,144 |
Cash and cash equivalents at end of period | 3,140 | 8,768 | ' | 3,140 | 8,768 |
Select Medical Corporation | ' | ' | ' | ' | ' |
Operating activities | ' | ' | ' | ' | ' |
Net income | 37,994 | 29,878 | ' | 72,361 | 68,870 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 17,196 | 15,907 | ' | 33,425 | 31,709 |
Provision for bad debts | 11,115 | 8,846 | ' | 22,133 | 18,167 |
Equity in earnings of unconsolidated subsidiaries | -1,239 | -568 | ' | -2,147 | -1,626 |
Loss on early retirement of debt | ' | 17,280 | ' | 2,277 | 17,788 |
Loss from disposal or sale of assets | ' | ' | ' | 143 | 81 |
Non-cash stock compensation expense | ' | ' | ' | 4,120 | 3,537 |
Amortization of debt discount, premium and issuance costs | ' | ' | ' | 3,849 | 4,499 |
Deferred income taxes | ' | ' | ' | 1,275 | 3,192 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | -84,249 | -83,832 |
Other current assets | ' | ' | ' | -2,935 | -5,894 |
Other assets | ' | ' | ' | -3,462 | 144 |
Accounts payable | ' | ' | ' | 10,343 | -2,665 |
Due to third-party payors | ' | ' | ' | 1,944 | 5,217 |
Accrued expenses | ' | ' | ' | -16,030 | -24,945 |
Income taxes | ' | ' | ' | -878 | -6,640 |
Net cash provided by operating activities | ' | ' | ' | 42,169 | 27,602 |
Investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | ' | ' | ' | -50,493 | -27,962 |
Investment in businesses, net of distributions | ' | ' | ' | -175 | -28,716 |
Acquisition of businesses, net of cash acquired | ' | ' | ' | -454 | -171 |
Net cash used in investing activities | ' | ' | ' | -51,122 | -56,849 |
Financing activities | ' | ' | ' | ' | ' |
Borrowings on revolving credit facility | ' | ' | ' | 515,000 | 455,000 |
Payments on revolving credit facility | ' | ' | ' | -425,000 | -480,000 |
Borrowings on credit facility term loans, net of discount | ' | ' | ' | ' | 298,500 |
Payments on credit facility term loans | ' | ' | ' | -33,994 | -592,615 |
Issuance of 6.375% senior notes, includes premium | ' | ' | ' | 111,650 | 600,000 |
Repurchase of 7 5/8% senior subordinated notes | ' | ' | ' | ' | -70,000 |
Borrowings of other debt | ' | ' | ' | 6,111 | 6,909 |
Principal payments on other debt | ' | ' | ' | -7,049 | -4,673 |
Debt issuance costs | ' | ' | ' | -4,434 | -18,583 |
Repayments of bank overdrafts | ' | ' | ' | -3,314 | 1,625 |
Equity investment by Holdings | ' | ' | ' | 5,297 | ' |
Dividends paid to Holdings | ' | ' | ' | -154,653 | -196,825 |
Distributions to non-controlling interests | ' | ' | ' | -1,840 | -1,467 |
Net cash provided by (used in) financing activities | ' | ' | ' | 7,774 | -2,129 |
Net decrease in cash and cash equivalents | ' | ' | ' | -1,179 | -31,376 |
Cash and cash equivalents at beginning of period | ' | ' | 40,144 | 4,319 | 40,144 |
Cash and cash equivalents at end of period | 3,140 | 8,768 | ' | 3,140 | 8,768 |
Select Medical Corporation | Reportable legal entities | Select Medical Corporation (Parent Company Only) | ' | ' | ' | ' | ' |
Operating activities | ' | ' | ' | ' | ' |
Net income | 35,341 | 27,780 | ' | 68,385 | 64,388 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 904 | 975 | ' | 1,827 | 1,945 |
Loss on early retirement of debt | ' | 17,280 | ' | 2,277 | 17,788 |
Non-cash stock compensation expense | ' | ' | ' | 4,120 | 3,537 |
Amortization of debt discount, premium and issuance costs | ' | ' | ' | 3,849 | 4,499 |
Deferred income taxes | ' | ' | ' | 1,275 | 3,192 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' | ' | ' | ' |
Equity in earnings of subsidiaries | -36,263 | -24,334 | ' | -68,296 | -70,984 |
Other current assets | ' | ' | ' | 251 | -2,310 |
Other assets | ' | ' | ' | -2,388 | -5,540 |
Accounts payable | ' | ' | ' | 4,074 | 1,857 |
Accrued expenses | ' | ' | ' | -11,570 | -19,539 |
Income taxes | ' | ' | ' | -878 | -6,640 |
Net cash provided by operating activities | ' | ' | ' | 2,926 | -7,807 |
Investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | ' | ' | ' | -3,019 | -1,071 |
Net cash used in investing activities | ' | ' | ' | -3,019 | -1,071 |
Financing activities | ' | ' | ' | ' | ' |
Borrowings on revolving credit facility | ' | ' | ' | 515,000 | 455,000 |
Payments on revolving credit facility | ' | ' | ' | -425,000 | -480,000 |
Borrowings on credit facility term loans, net of discount | ' | ' | ' | ' | 298,500 |
Payments on credit facility term loans | ' | ' | ' | -33,994 | -592,615 |
Issuance of 6.375% senior notes, includes premium | ' | ' | ' | 111,650 | 600,000 |
Repurchase of 7 5/8% senior subordinated notes | ' | ' | ' | ' | -70,000 |
Borrowings of other debt | ' | ' | ' | 6,111 | 5,826 |
Principal payments on other debt | ' | ' | ' | -5,046 | -4,057 |
Debt issuance costs | ' | ' | ' | -4,434 | -18,583 |
Repayments of bank overdrafts | ' | ' | ' | -3,314 | 1,625 |
Equity investment by Holdings | ' | ' | ' | 5,297 | ' |
Dividends paid to Holdings | ' | ' | ' | -154,653 | -196,825 |
Intercompany | ' | ' | ' | -11,525 | -20,010 |
Net cash provided by (used in) financing activities | ' | ' | ' | 92 | -21,139 |
Net decrease in cash and cash equivalents | ' | ' | ' | -1 | -30,017 |
Cash and cash equivalents at beginning of period | ' | ' | 35,070 | 71 | 35,070 |
Cash and cash equivalents at end of period | 70 | 5,053 | ' | 70 | 5,053 |
Select Medical Corporation | Reportable legal entities | Subsidiary Guarantors | ' | ' | ' | ' | ' |
Operating activities | ' | ' | ' | ' | ' |
Net income | 36,313 | 24,660 | ' | 67,951 | 71,197 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 13,632 | 12,522 | ' | 26,461 | 25,025 |
Provision for bad debts | 9,662 | 7,099 | ' | 18,826 | 14,922 |
Equity in earnings of unconsolidated subsidiaries | -1,226 | -546 | ' | -2,113 | -1,571 |
Loss from disposal or sale of assets | ' | ' | ' | 28 | 74 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' | ' | ' | ' |
Equity in earnings of subsidiaries | -3,497 | -3,439 | ' | -5,931 | -10,121 |
Accounts receivable | ' | ' | ' | -75,281 | -70,357 |
Other current assets | ' | ' | ' | -3,742 | -5,405 |
Other assets | ' | ' | ' | -1,098 | 5,600 |
Accounts payable | ' | ' | ' | 6,604 | -3,460 |
Due to third-party payors | ' | ' | ' | 1,752 | 4,390 |
Accrued expenses | ' | ' | ' | -3,449 | -6,586 |
Net cash provided by operating activities | ' | ' | ' | 30,008 | 23,708 |
Investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | ' | ' | ' | -42,423 | -23,802 |
Investment in businesses, net of distributions | ' | ' | ' | -175 | -28,716 |
Acquisition of businesses, net of cash acquired | ' | ' | ' | -454 | -171 |
Net cash used in investing activities | ' | ' | ' | -43,052 | -52,689 |
Financing activities | ' | ' | ' | ' | ' |
Principal payments on other debt | ' | ' | ' | -173 | -223 |
Intercompany | ' | ' | ' | 12,127 | 27,971 |
Net cash provided by (used in) financing activities | ' | ' | ' | 11,954 | 27,748 |
Net decrease in cash and cash equivalents | ' | ' | ' | -1,090 | -1,233 |
Cash and cash equivalents at beginning of period | ' | ' | 3,734 | 3,098 | 3,734 |
Cash and cash equivalents at end of period | 2,008 | 2,501 | ' | 2,008 | 2,501 |
Select Medical Corporation | Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Operating activities | ' | ' | ' | ' | ' |
Net income | 6,100 | 5,211 | ' | 10,252 | 14,390 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' |
Depreciation and amortization | 2,660 | 2,410 | ' | 5,137 | 4,739 |
Provision for bad debts | 1,453 | 1,747 | ' | 3,307 | 3,245 |
Equity in earnings of unconsolidated subsidiaries | -13 | -22 | ' | -34 | -55 |
Loss from disposal or sale of assets | ' | ' | ' | 115 | 7 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | -8,968 | -13,475 |
Other current assets | ' | ' | ' | 556 | 1,821 |
Other assets | ' | ' | ' | 24 | 84 |
Accounts payable | ' | ' | ' | -335 | -1,062 |
Due to third-party payors | ' | ' | ' | 192 | 827 |
Accrued expenses | ' | ' | ' | -1,011 | 1,180 |
Net cash provided by operating activities | ' | ' | ' | 9,235 | 11,701 |
Investing activities | ' | ' | ' | ' | ' |
Purchases of property and equipment | ' | ' | ' | -5,051 | -3,089 |
Net cash used in investing activities | ' | ' | ' | -5,051 | -3,089 |
Financing activities | ' | ' | ' | ' | ' |
Borrowings of other debt | ' | ' | ' | ' | 1,083 |
Principal payments on other debt | ' | ' | ' | -1,830 | -393 |
Intercompany | ' | ' | ' | -602 | -7,961 |
Distributions to non-controlling interests | ' | ' | ' | -1,840 | -1,467 |
Net cash provided by (used in) financing activities | ' | ' | ' | -4,272 | -8,738 |
Net decrease in cash and cash equivalents | ' | ' | ' | -88 | -126 |
Cash and cash equivalents at beginning of period | ' | ' | 1,340 | 1,150 | 1,340 |
Cash and cash equivalents at end of period | 1,062 | 1,214 | ' | 1,062 | 1,214 |
Select Medical Corporation | Eliminations | ' | ' | ' | ' | ' |
Operating activities | ' | ' | ' | ' | ' |
Net income | -39,760 | -27,773 | ' | -74,227 | -81,105 |
Changes in operating assets and liabilities, net of effects from acquisition of businesses: | ' | ' | ' | ' | ' |
Equity in earnings of subsidiaries | $39,760 | $27,773 | ' | $74,227 | $81,105 |