Select Medical Holdings Corporation (SEM)

[mlkrborn]

Select Medical issues guidance for 2013; sees EPS of $0.98-1.04 vs. $1.04 Capital IQ Consensus; sees revs of $2.95-3.05 bln vs. $3.03 bln Capital IQ Consensus Estimate. (SEM) : Co issues in-line guidance for FY13 (Dec), sees EPS of $0.98-1.04 vs. $1.04 Capital IQ Consensus Estimate; sees FY13 (Dec) revs of $2.95-3.05 bln vs. $3.03 bln Capital IQ Consensus Estimate.

The above business outlook includes the expected financial impact to outpatient therapy payments related to the multiple procedure payment reduction change included in the American Taxpayer Relief Act of 2012, which would become effective for outpatient therapy services on April 1, 2013. Select Medical estimates this negative impact to net operating revenues and Adjusted EBITDA to be between $5 million and $10 million annually for its outpatient rehabilitation segment.
The above business outlook does not include any estimated financial impact from potential sequestration cuts currently scheduled to occur on or about April 1, 2013 in the absence of further congressional action. Select Medical estimates this negative impact to net operating revenues and Adjusted EBITDA to be approximately $20 million if implemented.