Select Medical sees FY18 EPS 97c-$1.12, consensus $1.11
Sees FY18 revenue $5B-$5.2B, consensus $4.65B. Adjusted EBITDA for the full year 2018 to be in the range of $630M-$660M. Select Medical assumed that the consummation of the acquisition of U.S. HealthWorks, Inc. by its Concentra joint venture subsidiary and the related financing would occur on February 1, 2018 when preparing the above business outlook. Select Medical also included in the expectation for consolidated net operating revenues a reduction in net operating revenues for what historically was reported as bad debt expense. In 2018, bad debt expense will be reported as a component of net operating revenue. Select Medical assumed a 28.0% effective tax rate when preparing the above business outlook, which includes the expected impact of the federal tax reform legislation passed in 2017. Select Medical assumed total shares outstanding of 134.5 million when preparing the above business outlook for 2018. This share count includes unvested restricted shares, which have participation rights and are allocated an equitable portion of earnings under the two-class method for calculating income per common share.