Select Medical Holdings Corporation (NYSE:SEM) Q4 2022 Earnings Call Transcript

So what we see there is potentially increased wait times and those kind of difficulties, but you haven’t seen it show up in the revenue or the margin line. But each of these businesses, have a little bit of a different dynamic. — begin of Concentra, the we’ve talked about this in the past, they will have a bigger challenge in a really down economic cycle, that will be a bit of a headwind, which we certainly have not seen to date, mainly because that whatever downturn of the economy we’ve had, it’s really not hit labor. And as employers are still hiring, consents going to continue to have a robust business so, I hope that answers your question.

Bill Sutherland: That’s helpful color. What – how should we think about the high and low end of the revenue range kind of, I mean, I know a lot of things get thrown in as you put together your model, but what would be some of the key factors for being at one end or the other?

Martin Jackson: Yes. It’s really senses, Bill. When we take a look at sense especially the hospital side, certainly and the volume on the outpatient rehab side Concentra is probably pretty predictable. But I mean, that’s the reason we put a range in there is because of uncertainty there.

Bill Sutherland: And I think – I appreciate your hesitancy to guide on EBITDA before you have a real handle. But it feels like with all the information you provided that there’s a range there that I think you guys have a sense of. And I’m just kind of curious what else you kind of need to see at this point.

Martin Jackson: Yes, Bill, we just need to see consistency. If you take a look at what transpired at the end of ’21 and all through ’22, there was a lot of fluctuations. And we just need to see a period of time where we can kind of predict what’s going to happen in the next couple of quarters.

Robert Ortenzio: Yes, Bill, as I mentioned earlier, this has been the subject of a fair amount of discussion internally with the management and with the Audit Committee of our Board. And of course, where we stand here, we could give guidance with a fairly wide range, and we feel pretty confident on that. I mean I think it’s just more of a philosophical thing internally that if we’re going to come out with guidance, we’ll try to make it in a little tighter range as we’ve done in the past. And we just don’t want to come out with guidance and then have to revise it. So I think that, that’s just a style thing for us relative to other companies that may be providing guidance now rather than a view that we have that much uncertainty about the business.

Bill Sutherland: Right so it doesn’t really have any – it’s not an issue, it sounds like in terms of your overall view of the business. So that’s appreciated. All right that’s it for me.