Select Medical Holdings Corporation (NYSE:SEM) Q1 2024 Earnings Conference Call May 3, 2024 9:00 AM ET
Company Participants
Robert Ortenzio - Chief Executive Chairman and Co-Founder
Martin Jackson - Senior EVP, Strategic Finance & Operations
Conference Call Participants
Justin Bowers - Deutsche Bank
Ben Hendrix - RBC Capital Markets
A.J. Rice - UBS
Bill Sutherland - The Benchmark Company
Operator
Good morning and thank you for joining us today for Select Medical Holdings Corporation's Earnings Conference Call to discuss the First Quarter 2024 Results and the company's Business Outlook.
Speaking today are the company's Chief Executive Chairman and Co-Founder, Robert Ortenzio; and the company's Senior Executive Vice President of Strategic Finance and Operations, Martin Jackson. Management will give you an overview of the quarter and then open the call for questions.
Before we get started, we would like to remind you that this conference call may contain forward-looking statements regarding future events or the future financial performance of the company, including, without limitation, statements regarding operating results, growth opportunities and other statements that refer to Select Medical's plans, expectations, strategies, intentions and beliefs.
These forward-looking statements are based on the information available to management of Select Medical today, and the company assumes no obligation to update these statements as circumstances change.
At this time, I will turn the call over to Mr. Robert Ortenzio.
Robert Ortenzio
Thank you, operator. Good morning, everyone. Welcome to Select Medical's earnings call for the first quarter of 2024.
I'll first provide some updates on the progress we have made regarding our previously announced plan to pursue the separation of Select Medical's wholly owned occupational health services business, Concentra.
On February 27th, we announced that we had received as expected a favorable private letter ruling opinion from the Internal Revenue Service, confirming the tax-free status of the potential transaction.
On March 18th, we announced that Concentra had confidentially submitted a draft registration statement on Form S-1 with the SEC relating to the proposed initial public offering of its stock. The IPO is expected to occur after the SEC completes its review process and subject to market and other conditions. We're pleased so far with the progress and expect the separation to be completed by the end of 2024.
Overall, we had a very strong first quarter start of 2024 and led by both our hospital divisions generating very impressive results. Adjusted EBITDA grew 22% and revenue grew 7% compared to Q1 of the prior year, with all four operating divisions exceeding prior year revenue.