v3.25.2
Earnings per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
The Company’s capital structure includes common stock and unvested restricted stock awards. To compute earnings per share (“EPS”), the Company applies the two-class method because the Company’s unvested restricted stock awards are participating securities which are entitled to participate equally with the Company’s common stock in undistributed earnings. Application of the Company’s two-class method is as follows:
(i)Income attributable to the Company from continuing operations, net of tax, is reduced by the amount of dividends declared and by the contractual amount of dividends that must be paid for the current period for each class of stock. There were no contractual dividends paid for the three and six months ended June 30, 2024 and 2025.
(ii)The remaining undistributed income of the Company from continuing operations, net of tax, is then equally allocated to its common stock and unvested restricted stock awards, as if all of the earnings for the period had been distributed. The total net income allocated to each security is determined by adding both distributed and undistributed net income for the period.
(iii)The income from continuing operations, net of tax, allocated to each security is then divided by the weighted average number of outstanding shares for the period to determine the EPS for each security considered in the two-class method.
The following table sets forth the income attributable to the Company from continuing operations, net of tax, and the Company’s common shares outstanding, and its participating securities outstanding.
Basic and Diluted EPS
Three Months Ended June 30,Six Months Ended June 30,
2024202520242025
(in thousands)
Income from continuing operations, net of tax$37,638 $57,879 $99,167 $132,611 
Less: net income attributable to non-controlling interests15,881 17,308 34,828 35,359 
Income from continuing operations, net of tax, attributable to Select Medical Holdings Corporation’s common stockholders21,757 40,571 64,339 97,252 
Less: distributed and undistributed net income attributable to participating securities932 820 2,508 1,965 
Distributed and undistributed income from continuing operations, net of tax, attributable to common shares$20,825 $39,751 $61,831 $95,287 
The following tables set forth the computation of EPS under the two-class method:
Three Months Ended June 30,
20242025
Income from Continuing Operations, Net of Tax, Allocation
Shares(1)
Basic and Diluted EPSIncome from Continuing Operations, Net of Tax, Allocation
Shares(1)
Basic and Diluted EPS
(in thousands, except for per share amounts)
Common shares$20,825 123,946 $0.17 $39,751 123,359 $0.32 
Participating securities932 5,550 $0.17 820 2,545 $0.32 
Total Company$21,757 $40,571 
Six Months Ended June 30,
20242025
Income from Continuing Operations, Net of Tax, Allocation
Shares(1)
Basic and Diluted EPSIncome from Continuing Operations, Net of Tax, Allocation
Shares(1)
Basic and Diluted EPS
(in thousands, except for per share amounts)
Common shares$61,831 123,902 $0.50 $95,287 124,774 $0.76 
Participating securities2,508 5,026 $0.50 1,965 2,573 $0.76 
Total Company$64,339 $97,252 
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(1)    Represents the weighted average share count outstanding during the period.