On July 26, 2024, Concentra, a then wholly-owned subsidiary of Select, completed an initial public offering (“IPO”) of 22,500,000 shares of its common stock, par value $0.01 per share, at an initial public offering price of $23.50 per share for net proceeds of $499.7 million after deducting underwriting discounts and commission of $29.1 million. In addition, the underwriters exercised the option to purchase an additional 750,000 shares of Concentra’s common stock for net proceeds of $16.7 million after deducting discounts and commission of $1.0 million. On November 25, 2024, Select completed a tax-free distribution of 104,093,503 shares of common stock of Concentra to its stockholders. Following the completion of the distribution, the Company no longer owns any shares of Concentra common stock.

In connection with the separation and distribution of Concentra’s common stock, the Company and Concentra also entered into several agreements to provide a framework of our ongoing relationship with Concentra, including a transition services agreement (“TSA”), a separation agreement, a tax matters agreement and an employee matters agreement. The services under the TSA generally are a continuation of the support services provided by Select to Concentra prior to the IPO. The fee for support services provided to Concentra was $3.5 million and $7.2 million for the three and six months ended June 30, 2025, respectively. The income from the support services fees, as well as the cost to provide these services, are included within General and Administrative expense on the condensed consolidated statements of operations. The provision of services under the TSA will terminate no later than November 26, 2026.

The results of Concentra are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the three and six months ended June 30, 2024.


	For the Three Months Ended June 30, 2024		For the Six Months Ended June 30, 2024

Revenue	$	477,915	$	945,513
Costs and expenses:
Cost of services, exclusive of depreciation and amortization	376,101		750,000

Depreciation and amortization	17,870		36,355
Total costs and expenses	393,971		786,355
Other operating income	—		284
Income from operations	83,944		159,442
Other income and expense:

Equity in earnings of unconsolidated subsidiaries	(3,676)		(3,676)


Interest expense(1)	(9,113)		(19,195)
Income from discontinued operations before income taxes	71,155		136,571
Income tax expense	14,027		23,805
Income from discontinued operations, net of tax	57,128		112,766
Less: Net income attributable to non-controlling interests	1,322		2,645
Income from discontinued operations, net of tax, attributable to Select Medical Holdings Corporation’s common stockholders	$	55,806	$	110,121

(1) For the three and six months ended June 30, 2024, interest expense includes allocated interest expense of $9.3 million and $19.3 million, respectively. Interest was allocated in accordance with the terms of an intercompany promissory note in place between the Company and Concentra prior to the separation.

The following is selected financial information included on the Condensed Consolidated Statements of Cash Flows for Concentra:


	For the Six Months Ended June 30, 2024

Depreciation and amortization	$	36,355
Cash flows from investing activities:
Purchases of property, equipment, and other assets	$	32,494