Prompt:
Human: stepan.com under the Investors section of our website.
As vaccines are rolled out across the country, we hope you and your families have had a chance to be vaccinated and that you will continue to stay safe and healthy.
We at Stepan remain committed to doing our part by supporting customers that supply essential cleaning, disinfection, and personal wash products to the market.
Scott has been a key leader at Stepan for the past 28 years.
We are pleased to recognize Scott's contributions to our success with his promotion and are excited about the challenge he brings to this role and the impact he will have on the value of our company for you and for all shareholders.
The company had a good start to the year and delivered record quarterly income.
The best financial quarter our company has ever had.
Adjusted net income was $42.4 million or $1.82 per diluted share, up 75% from $24.2 million or $1.04 per diluted share last year when we had the power outage at our Millsdale facility.
For the quarter, surfactant operating income was up 47% primarily due to improved customer and product mix.
Our polymer business was up 140% on the strength of 32% global sales volume growth.
Part of the volume growth was driven by the INVISTA acquisition, organic market growth, and a rebound in our PA business.
our Specialty Product business results were down due to lower margins within our MCT product line.
Our Board of Directors declared a quarterly cash dividend on Stepan's common stock of $0.305 per share payable on June 15, 2021.
Stepan has increased its dividend for 53 consecutive years.
Luis will walk you through a few more details about our first quarter results.
Let's start with the Slide 4 to recap the quarter.
Adjusted net income for the first quarter of 2021 was at a record $42.4 million or $1.82 per diluted share, a 75% increase versus $24.2 million or $1.04 per diluted share in the first quarter of 2020.
Specifically, adjustment to reported net income this quarter consist of adjustment for deferred compensation and some minor restructuring expenses.
Adjusted net income for the quarter excludes deferred compensation expense of $1.7 million or $0.08 per diluted share compared to deferred compensation income of $3.6 million or $0.15 per diluted share in the same period last year.
The deferred compensation numbers represent the net expense related to the company's deferred compensation plan as well as cash-settled stocks appreciation rights for our employees.
Because these liabilities change with the movement in the stock price, we exclude these items from our operational discussion.
Slide 5 shows the total company earnings bridge for the first quarter compared to last year first quarter and breaks down the increase in adjusted net income.
Because this is net income, the figures noted here are on an after-tax basis.
We will cover each segment in more detail, but to summarize, surfactants and polymers were up significantly, while Specialty Product was a slightly down versus the prior year.
Corporate expenses and all others were higher during the quarter due to the higher acquisition-related expenses and incentive-based compensation.
The company's first quarter effective tax rate was 23.6% compared to 22.5% in the prior year quarter.
This year-over-year increase was primarily attributable to a less favorable geographical mix of income.
We expect the full year 2021 effective tax rate to be in the range of 23% to 26%.
Slide 6 focuses on Surfactant segment results for the quarter.
Surfactant net sales were $371 million, a 13% increase versus the prior year.
Selling prices were up 13% primarily due to an improved product and customer mix and the pass through of higher raw material costs.
Volume was flat versus the prior year.
Higher demand for products sold in our functional product end markets, principally agriculture and oilfield was offset by lower North America sales volume into our consumer product end market.
The reduction in North America consumer product volumes was due to suppliers force measure following the severe weather in Texas.
Consumer Products volume outside North America grew low single digits.
Surfactant operating income for the quarter increased $17 million or 47% versus the prior year.
The increase was primarily due to an improved product and customer mix and lower supply chain expenses with the non-recurrence of the Millsdale plant power outage in the prior year.
North America results increased primarily due to an improved product and customer mix.
Brazil results were up, driven by higher volumes and improved customer and product mix.
Mexico volume was also up high-single digit.
Europe results increased slightly due to an improved product and customer mix.
Now turning to polymers on the Slide 7.
Net sales were $150 million in the quarter, up 41% from the prior year quarter.
Total sales volume increased 32% in the quarter primarily due to 32% growth in rigid volume.
Global rigid polyol volumes excluding the INVISTA acquisition was up 8% versus the prior year.
Volume for PA increased significantly, given the weak base due to the Millsdale power outage in the prior year.
Selling prices increased 7% and the translation impact of a weaker US dollar positively impacted net sales by 2%.
Polymer operating income increased $10 million or a 140% primarily due to strong sales volume growth and lower supply chain expenses due to the non-recurrence of the Q1 2020 Millsdale plant power outage.
North America polyol results increased due to higher volumes and lower supply chain expenses in the current year quarter.
Europe results increased due to double-digit volume growth in rigid polyol primarily due to the INVISTA acquisition.
Asia and Latin America Polymer results decreased slightly versus prior year due to a one-time extra cost in Q1 2021.
Volume in Asia grew a strong double-digit.
specialty Product net sales were $16 million for the quarter, In line with the prior year.
Sales volume was up 4% between quarters and operating income declined $1.4 million.
The operating income decrease was primarily attributable to lower margins within our MCT product line giving higher raw material prices.
Moving on to Slide 8.
Our balance sheet remains strong, and we have ample liquidity to invest in the business.
Our leverage and interest coverage ratios continues at very solid levels.
The total cash reduction from $350 million to $151 million was driven INVISTA acquisition in the first quarter of 2021.
We had a strong cash from operations in the first quarter of 2021 which was used for CapEx investments, dividends, and incentive-based compensation payments -- payments.
The Company also experienced higher working capital requirements, which is typical for the first quarter.
Beginning on the Slide 10, Scott will now update you on our 2021 strategic priorities.
I am pleased to be joining our earnings call and look forward to continuing to contribute to the success our team has had generating for our shareholders.
As we wrap up the first quarter of 2021, we believe our business will remain strong.
We continue to prioritize the safety and health of our employees, as we deliver products that contribute to the fight against COVID-19.
Our EPA approved biocidal formulations kill the specific novel virus that causes COVID-19 and allow our customers to provide the public with additional tools to protect their families and fight the pandemic.
We believe Surfactant demand in the consumer product end markets should remain strong as a result of changing consumer habits and sustained higher use of disinfection, cleaning and personal wash products.
Core cleaning and disinfecting product lines drove volume growth in Europe and Latin America offset by lower volume in the US due to raw material disruptions related to the Texas weather incident.
We are increasing capacity in certain product lines biocides and amphoterics to ensure we can meet anticipated higher requirements from our customers.
We are also increasing North American capability and capacity to produce low 1,4-dioxane sulfates.
As previously explained, recent regulations passed in New York will require reduced levels of 1,4-dioxane in on-shelf consumer products by January 1, 2023.
1,4-dioxane is a minor byproduct generated in the manufacture of ether sulfate surfactants which are key cleaning and foaming ingredients in consumer products.
Through a combination of process optimization and additional manufacturing equipment, Stepan will be prepared to supply customers ether sulfates that meet the new regulatory requirements.
This project is the primary driver of our increased 2021 capital expenditure forecast of $150 million to $170 million.
We are working with our customers to ensure these product projects deliver our financial return targets.
Tier 2 and tier 3 customers continue to be a focus of our strategy.
We grew tier 2 and tier 3 volume by 9% in the first quarter and increased customer penetration adding 362 new customers during the quarter.
Our diversification strategy into functional markets continues to be a key priority for Stepan.
During the first quarter, global agricultural volumes increased with strong growth obtained in the post-patent pesticide segment and eight new products launched throughout the world.
Oilfield volume was up double digits due to higher oil prices.
We remain optimistic about future opportunities in this business as oil prices have recovered to the $60 per barrel level.
We remain fully committed to delivering productivity gains across the company.
We delayed productivity project implementation at Millsdale to allow the team to focus on COVID-19 related market opportunities.
Work on the project has now begun, and we expect to see the benefits in 2022 and beyond.
Polymers had a good quarter as the business is gradually coming back after a challenging year due to COVID restrictions.
The long-term prospects for our polyol business remain attractive as energy conservation efforts and more stringent building codes should increase demand.
The integration of INVISTA is going well, and we expect to deliver on our internal commitments during 2021.
The acquisition is expected to be accretive to both earnings per share and EBITDA margins in 2021.
The company expects the multiple on a post synergy basis to be between 6.5 and 7.5 times.
We expect to deliver full run rate synergies within two years.
The company also acquired a fermentation plant located in Lake Providence, Louisiana in February 2021.
This acquisition is part of Stepan's further development of bio surfactant technology following the acquisition of NatSurFact in 2020.
Stepan has strong knowledge of surfactant chemistry, and we are excited about fermentation as a new platform technology for our next generation of surfactants, as customers look to achieve sustainability goals while maintaining key performance attributes.
We continue to optimize our fermentation process technology including downstream processing.
The Louisiana plant will require additional investment to manufacture our target product portfolio but will provide world scale capabilities to support customers in both functional product and consumer product applications.
Given the strength of our balance sheet, we will continue to identify and pursue acquisition opportunities to fill gaps in our portfolio and to add new platform chemistries.
The company just completed its best quarter ever.
Looking forward, we believe our surfactant volumes in the consumer product end markets should remain strong as a result of continued heightened demand for disinfection, cleaning, and personal wash products.
We anticipate that demand for surfactants within the agricultural and oilfield markets will improve versus 2020.
Global demand for rigid polyols continues to recover from pandemic related delays and cancellation of reroofing and new construction projects.
This gradual recovery combined with our first quarter 2021 acquisition of INVISTA's aromatic polyester polyol business should position our polymer business to deliver strong growth versus prior year.
We anticipate our Specialty Product business results will improve slightly year-over-year.
After a record first quarter and despite experiencing significant raw material price increases, we are cautiously optimistic about the remainder of the year.
Daisy please review the instructions for the question portion of today's call.
 Assistant:

Chosen response:
q1 adjusted earnings per share $1.82.
stepan - believe surfactant volumes in n. american consumer product end markets may recover after supply chain disruptions from severe weather in texas.
believe that heightened consumer demand for disinfection, cleaning and personal wash products will continue.


Prompt:
Human: stepan.com under the Investors section of our website.
We hope you and your families have had an opportunity to be vaccinated and that you have done so.
The best way to protect yourself and your family is to be vaccinated.
Although, demand for cleaning, disinfection and personal wash products has slowed from the pandemic peak, we had Stepan remain committed to doing our part by supporting customers that supply these essential products to the market.
The company had a good first half and delivered record results.
Adjusted net income was $84.6 million or $3.62 per diluted share.
Both adjusted net income and adjusted earnings per share were up 35% versus the first half of 2020, which was negatively impacted by the Millsdale plant outage.
We delivered our best second quarter and had $42.2 million adjusted net income.
Surfactant operating income was down 5%, largely due to higher North American supply chain cost, driven by inflationary pressures and planned higher maintenance cost.
Our Polymer operating income was up 48% on 44% sales volume growth.
The polymer growth was driven by both the INVISTA polyester polyol acquisition and organic market growth.
Overall, the integration of INVISTA's business into our company has gone well and is on track with our business plans.
Our Specialty Product business results were up due to order timing and improved margins within our MCT product line.
Our Board of Directors declared a quarterly cash dividend on Stepan's common stock of $0.305 per share payable on September 15, 2021.
Stepan has increased its dividend for 53 consecutive years.
Luis will walk you through a few more details about our second quarter results.
Let's just start with the Slide four to recap the quarter.
Adjusted net income for the second quarter of 2021 was $42.2 million or $1.81 per diluted share, a 10% increase versus $38.3 million or $1.65 per diluted share in the second quarter of 2020.
Specifically, adjustment to reported net income this quarter consists of adjustment for deferred compensation and minor restructuring expenses.
Adjusted net income for the quarter excludes deferred compensation income of $1.1 million or $0.04 per diluted share, compared to deferred compensation expense of $1.9 million or $0.08 per diluted share in the same period last year.
The deferred compensation numbers represent the net expense related to the company's deferred compensation plan as well as cash-settled stock appreciation rights for our employees.
These liabilities change with the movement in the stock price, we exclude this item from our operational discussion.
Slide five shows the total company earnings fees for the second quarter, compared to last year's second quarter and breaks down the increase in adjusted net income.
Because this is net income, the figure is noted here are on an after-tax basis.
We will cover each segment in more detail, but to summarize, Polymers and Specialty Products were up where Surfactant was down versus the prior year.
Corporate expenses and all others were higher during the quarter due to higher acquisition-related expenses and overall inflation.
The company's effective tax rate was 24.4% in the first half of 2021 compared to 23.9% in the prior year period.
This year-over-year increase was primarily attributable to a less favorable geographical mix of income.
We expect the full year 2021 effective tax rate to be in the range of 23% to 26%.
The Slide six focuses on Surfactant segment results for the quarter.
Surfactant net sales were $384 million, a 16% increase versus the prior year.
Selling prices were up 17%, primarily due to improved product and customer mix as well as the pass-through of higher raw material costs.
Effect of foreign currency translation positively impacted net sales by 5%.
Volume decreased 6% year-over-year.
Most of this decrease reflects lower volume into the North America consumer product end market.
This reduction was driven by lower demand for consumer cleaning, disinfection and personal wash products versus the pandemic peak in 2020.
Additionally, we continue to experience feedstock supply issues and customer inventory rebalancing efforts.
This was partially offset by higher demand for products sold into our institutional cleaning and functional product end markets.
Surfactant operating income for the quarter decreased $2.6 million or 5% versus the prior year, primarily due to higher North America supply chain cost as a result of inflationary pressures and planned higher maintenance costs.
Latin America operating results benefit from a $2.1 million VAT tax recovery project in the current year quarter.
Europe results decreased slightly due to lower demand in consumer products, partially offset by increased demand in functional products.
Now turning to Polymers on Slide 7.
Net sales were $191 million in the quarter, up 70% from prior year.
Sales volume increased 44%, primarily due to 41% growth in Rigid Polyol volumes.
Global rigid polyol volumes, excluding the INVISTA acquisition, was up 7% versus the prior year.
Higher demand within the PA and Specialty Polyol businesses also contributed to the volume growth.
Selling prices increased 21% and the translation impact of a weaker U.S. dollar positively increased net sales by 5%.
Polymer operating income increased $7.5 million or 48%, primarily due to double-digit volume growth in the legacy polymers business plus INVISTA acquisition.
North America polyol results decreased due to rising raw materials and manufacturing costs, partially offset by higher volumes.
Europe results increased due to double-digit volume growth on the base business plus INVISTA acquisition.
China results decreased due to the nonrecurrence of a onetime benefit in the base period in 2020 and lower volumes.
China volumes in the first half of 2021 grew 5%.
Specialty Products net sales were $21 million for the quarter, up 33% from the prior year quarter.
Volume was up 17% between quarters, and operating income increased $3.8 million or 116%.
The operating income increase was primarily attributable to order timing differences within our food and flavor business and improved margins within our MCT product line.
Moving on to Slide 8.
Our balance sheet remains strong, and we have ample liquidity to invest in the business.
Our leverage and interest coverage ratios continues at very healthy levels.
We had a strong cash from operations in the first half of 2021, which was used for capex investments, dividends, share buybacks and investments in working capital, given the strong sales growth and raw material inflation.
We executed agreements for $100 million of new private placement debt at a very attractive and fixed interest rates of around 2%.
We will use a new cash to fund our organic and inorganic growth opportunities and for other general corporate purposes.
For the full year, capital expenditures are expected to be in the range of $150 million to $170 million.
Beginning on Slide 10, Scott will now update you on our 2021 strategic priorities.
We are pleased to have delivered record first half earnings to our shareholders and look forward to carrying that momentum into the second half of the year.
We continue to prioritize the safety and health of our employees as we deliver products that contribute to the fight against COVID-19.
Our EPA-approved biocide formulations kill a specific novel virus that causes COVID-19 and allow our customers to provide the public with additional tools to protect their families and to fight the pandemic.
Based on customer feedback, consumer habits have changed, and these new behaviors require higher use of disinfection, cleaning and personal wash products.
Therefore, we believe our surfactant volumes in the consumer product end market will remain higher versus pre-pandemic levels, however, lower than peak pandemic demand in Q2 of 2020.
We believe institutional cleaning volume will continue to grow as economies around the world reopen and people demand higher standards for cleaning and disinfection in public settings.
We also anticipate that demand for surfactants within the agricultural and oilfield markets will continue to benefit from higher agricultural and commodity prices and improve versus 2020.
We will continue working on improving productivity as well as product and customer mix to improve Surfactant operating income.
Globally, we are increasing capacity in certain product lines, including biocides and amphoteric to ensure we can meet higher requirements from our customers.
As discussed previously, we are increasing North American capability and capacity to produce low 1,4-dioxane sulfates, a minor byproduct generated in the manufacture of ether sulfate surfactants, which are key cleaning and foaming ingredients used in consumer product formulations.
Through a combination of process optimization and additional manufacturing equipment, Stepan will be prepared to supply customers ether sulfates that meet the new regulatory requirements.
This project is the primary driver of our 2021 capital expenditure forecast of $150 million to $170 million and will carry over to 2022 as well.
We are working with our customers to ensure these projects deliver our financial return targets.
Tier two and Tier three customers continue to be a focus of our strategy.
Tier two and Tier three volume grew in the second quarter, driven by increased customer penetration.
We added 150 new customers during the quarter and more than 500 customers in the first half of this year.
Our diversification strategy into functional markets continues to be a key priority for Stepan.
During the first half, global agricultural volume increased high single digits with strong growth obtained in the post-patent pesticide segment and new products launched throughout the world.
Oilfield volume was up mid-single digits due to higher oil prices.
We remain optimistic about future opportunities in this business as oil prices have recovered to the $70 per barrel level.
We continued our consulting work in our Millsdale plant and accelerated interventions and investments in both expense and capex to increase capacity and improved productivity.
We expect to continue this project and investment level throughout the rest of this year.
We are projecting a strong return on investment in this project through a combination of productivity improvements, more capacity in several high-margin product lines through debottlenecking key processes and improved service to our customers.
We anticipate starting to see the benefits of this project in 2022 and beyond.
Polymers had a good quarter and first half of the year as the business is coming back from a challenging year due to COVID restrictions.
The long-term prospects for our polyol business remain attractive, as energy conservation efforts and more stringent building codes should increase demand.
As Quinn stated, the integration of this business acquired from INVISTA is going well, and we expect to deliver $16 million to $18 million of EBITDA in 2021.
Given the strength of our balance sheet, we also plan to continue to identify and pursue acquisition opportunities to fill gaps in our portfolio and to add new platform chemistries.
The company delivered record first half earnings in 2021.
Looking forward, we believe Surfactant volumes in North America consumer product end market will be challenged versus peak pandemic levels in 2020.
While we believe institutional cleaning volume will continue to grow versus prior year, we do not believe it will compensate for lower consumer consumption of cleaning, disinfection and personal wash products.
We anticipate that demand for Surfactants when the agricultural and oilfield markets will improve versus 2020.
Global demand for Rigid Polyols continues to recover from pandemic-related delays and cancellations of reroofing and new construction projects.
This recovery, combined with our first quarter 2021 acquisition, should position our polymer business to deliver growth versus prior year.
We believe that long-term prospects for Rigid Polyols remains attractive as energy conservation efforts and more stringent building codes are expected to continue.
We anticipate our Specialty Product business results will improve slightly year-over-year.
Despite continued raw material price increases and planned higher maintenance costs, we remain cautiously optimistic about the remainder of the year.
Daisy, please review the instructions for the question portion of today's call.
 Assistant:

Chosen response: q2 adjusted earnings per share $1.81.


Prompt:
Human: stepan.com under the Investor Relations section of our website.
And we hope that you find information and perspective helpful.
We hope you and your families are safe and healthy.
As the world continues to be challenged by the global pandemic, we at Stepan remain committed to doing our part by supporting customers that supply essential, cleaning, disinfection and personal wash products to the market.
We are extremely grateful to our employees for their passion and commitment to get the job done for our customers throughout what was a challenging year.
Overall, COVID opportunities in the consumer product segment of our business outweigh the negative impacts elsewhere and the Company delivered record fourth quarter and full year earnings.
Fourth quarter adjusted net income was $33.1 million or $1.42 per diluted share, up 29% from $25.7 million or $1.10 per diluted share last year.
Adjusted net income for the full year was a record $132 million, up 11% from last year.
For the quarter, surfactant operating income was up significantly on volume growth, which was mostly attributable to continued strong demand for cleaning, disinfection and personal wash products.
Mexican operations delivered strong volume growth versus the prior year quarter.
Our Polymer business was up significantly during the quarter due to the Millsdale insurance recovery.
Our rigid polyol volumes are gradually improving, we had a good fourth quarter and finished strong with double-digit growth, driven by increased demand and customer inventory Brexit-build in Europe.
Our Specialty Product business results were up slightly in the fourth quarter.
Board of Directors declared a quarterly cash dividend on Stepan's common stock of $0.305 per share payable on March 15, 2021.
Stepan has paid higher dividends for 53 consecutive years.
As recently announced, Stepan acquired INVISTA's aromatic polyester polyol business and associated assets.
The acquired business has global sales of approximately $100 million per year.
We are excited to add INVISTA's polyester polyol business and believe that INVISTA's available spare capacity combined with debottlenecking opportunities in both plants will allow Stepan to support future market growth in a capital efficient way.
At this point, I'd like Luis to walk through a few more details about our fourth quarter results.
Let's start with the Slide 5 to recap the quarter.
Adjusted net income for the fourth quarter of 2020 was $33.1 million or $1.42 per diluted share, a 29% increase versus $25.7 million or $1.10 per diluted share in the fourth quarter of 2019.
Specifically, adjustment to reported net income this quarter consist of adjustments for deferred compensation and cash-settled SARs and some minor restructuring expenses.
Adjusted net income for the quarter exclude deferred compensation expense of $2.4 million or $0.10 per diluted share compared to deferred compensation expense of $1.8 million or $0.07 per diluted share in the same period last year.
Deferred compensation numbers represent the net expense related to the company's deferred compensation plan as well as cash-settled stocks appreciation rights for our employees.
Because these liabilities change with the movement in the stock price, we exclude these items from our operational discussion.
Slide 6 shows the total company earnings bridge for the fourth quarter compared to last year's fourth quarter and breaks down the increase in adjusted net income.
Because this is net income, the figures noted here are on an after-tax basis.
We will cover each segment in more detail.
But to summarize, Surfactants and Polymers were up significantly, while Specialty Product was slightly up versus the prior year.
Corporate expenses and all others were higher during the quarter due to higher acquisition-related expenses and incentive-based compensation.
The company's full year effective tax rate was 25% in 2020 compared to 18% in 2019.
This year-over-year increase was primarily attributable to non-recurring tax savings in 2019 and a one-time tax cost in Q4 2020 due to a cash repatriation project as part of the INVISTA acquisition.
Less favorable geographical mix of income in 2020 versus 2019 also impacted effective tax rate.
We expect the full year 2021 effective tax rate to be in the range of 24% to 27%.
Slide 7 focus on Surfactant segment results for the quarter.
Surfactant net sales were $358 million, a 16% increase versus the prior year.
Sales volume increased 8%, mostly due to higher demand for products sold into the consumer product end markets, driven by increased amount for cleaning, disinfection and personal wash product due to COVID-19.
Higher sales volume to our Tier 2, Tier 3 customers also contributed to this increase.
This growth was partially offset by lower demand in agricultural and oilfield markets.
Selling prices were up 11% and the translation impact of a stronger U.S. dollar negatively impacted net sales by 3%.
The higher selling prices primarily reflect improved product and customer mix.
Surfactant -- Surfactants operating income increased $9.4 million or 28% versus the prior year, primarily due to strong sales volume growth and a $3 million insurance recovery related to the first quarter Millsdale power outage.
North America results increased primarily due to strong demand in the consumer product end market and a better product and customer mix.
Brazil had a record quarter driven by strong volume growth.
Lower Mexico results were due to a high base period with insurance payment in December 2019, although Mexico volume was up 31%.
Europe results increased slightly due to higher consumer product demand.
Now turning to Polymers on Slide 8.
Net sales were $116.7 million in the quarter, in line with the prior year.
Sales volume increased 7%, primarily due to double-digit growth in global rigid volumes, lower PA demand partially offset the above growth.
Selling prices declined 8% and foreign currency translation positively impacted net sales by 1%.
The Polymer operating increased $11.4 million or 100% versus the prior year, the $10 million insurance recovery and the positive impact of volume growth.
All regions did well during the quarter.
North America polyol results increased due to higher volumes and margins, reflecting a gradual improvement in market conditions.
Europe results increased due to double-digit volume growth in both rigid and specialty polyol, while Asia and Latin America results increased slightly versus prior year.
Specialty Product net sales were $19.6 million for the quarter, a 6% increase versus the prior year.
Sales volume was down 1% between quarters and operating income improved 2%.
Turning to Slide 9.
Despite significant challenge during the year, including the global pandemic and the first quarter 2020 planned power outage at our Millsdale facility, the company delivered record full year results.
Adjusted net income was a record $132 million or $5.68 per diluted share versus $119.4 million or $5.12 per diluted share in the prior year, an increase of 11%.
The Surfactant segment delivered record operating income of $169 million, up 38% versus prior year.
This earnings growth was driven by a 6% increase in global volume due to higher demand for cleaning, disinfection and personal wash products as a result of COVID-19 and a significantly better product and customer mix.
The Polymer segment delivered $68 million of operating income, almost flat versus prior year despite the negative impact of COVID-19.
Global Polymer sales volume was down 5% as a result of lower demand within the PA business.
Global rigid polyols volumes were slightly down for the year due to construction project delays and cancellations due to COVID-19.
Specialty Product operating income was $14 million, down slightly from the prior year when we grew significantly versus 2018 actuals.
Slide 10 shows the total company earnings bridge for the full year 2020 compared to last year and breaks down the increase in adjusted net income.
The figures noted here are on an after-tax basis.
Surfactant was up significantly, while Polymer and Specialty Products were down slightly versus the prior year.
Moving on to Slide 11.
Our balance sheet remains strong.
We had negative net debt at year-end as our cash balance of $350 million exceeded total debt of $199 million.
The company had full year capital expenditure of $126 million and we are returning $41 million to our shareholders via dividends and share repurchases.
This strong balance sheet allow us to execute the INVISTA acquisition in January 2021.
Beginning on Slide 13, Quinn will now update you on our 2021 strategic priorities.
As we wrap up a challenging but rewarding 2020, we continue to believe that Stepan's business remains better positioned to perform than most as we demonstrated in the fourth quarter and full year 2020.
We continue to prioritize the safety and health of our employees as we deliver products that contribute to the fight against COVID-19.
Our EPA approved biocidal formulations to kill the specific novel virus that causes COVID-19 and allow our customers to provide the public with additional tools to protect their families and fight the pandemic.
We believe Surfactant volume and consumer product end markets should remain strong as a result of changing consumer habits and increased use of disinfection, cleaning and personal wash products.
We are increasing capacity in certain product lines, including biocides and amphoterics to ensure we can meet our customers' higher requirements.
We are increasing North American capability and capacity to make low 1,4-dioxane surfactants.
As explained in our previous calls, recent regulations passed in New York will require reduced levels of 1,4-dioxane in a number of consumer products by January 1, 2023.
1,4-dioxane is a minor by-product generated in the manufacture of ether sulfate surfactants which are key ingredients in consumer products.
Through a combination of process optimization and additional manufacturing equipment, Stepan will be prepared to supply customers ether sulfates that meet the new regulatory requirements.
This project is the driver of our increased capex forecast for 2021 of $150 million to $170 million.
We are working with our customers to ensure these projects deliver our financial return targets.
Tier 2 and Tier 3 customers continue to be the center of our strategy.
We grew Tier 2 and Tier 3 volume by 28% in the fourth quarter and added 405 new customers.
Our diversification strategy into functional products continues to be a priority for Stepan.
During the fourth quarter, despite a slight volume decrease, our agricultural business grew in terms of profitability due to a favorable product mix.
We have introduced many new products to the agricultural market and will continue to invest in new capacity and capabilities to support growth in the agricultural market.
Oilfield volume was down due to overall challenges in the industry.
We remain optimistic about future opportunities in this business as oil prices have recovered through the $60 per barrel levels.
Polymers had a challenging year given the availability of labor on construction projects and the need for social distancing.
However, the long-term prospects for our polyol business remain attractive as energy conservation efforts and a more stringent building codes should increase demand.
The Illinois Rock -- River lock closure was completed on schedule during the quarter, which ended the premium logistic cost associated with the business.
We remain fully committed to delivering productivity gains across Stepan.
We delayed our project at Millsdale to allow the team to focus on COVID-19-related market opportunities.
Work on the project will continue this year and we expect to see benefits in 2020 and beyond.
M&A represents an important tool as a means to delivering meaningful EBITDA growth and margin improvement.
We are excited about the company's recent acquisition of INVISTA's aromatic polyester polyol business.
This is our largest acquisition to-date and will allow us to continue our journey to create a more specialized higher margin chemical company.
The transaction included two manufacturing sites, intellectual property, customer relationships, inventory and working capital.
The acquisition was financed with cash on hand.
We are putting our cash to work.
The acquired business has global sales of approximately $100 million.
The acquisition cost was $165 million plus working capital and is expected to be slightly accretive to Stepan's earnings per share and EBITDA margins in 2021.
The company expects the multiple on a post-synergy basis to be between 6.5 and 7.5 times.
We expect to deliver full year run rate synergies within two years.
This acquisition will allow us to support market growth for the next decade in a capitally efficient way through available spare capacity as well as debottlenecking opportunities in both plants.
The two additional locations also significantly enhanced business continuity for our customers.
The previously referenced multiples exclude the benefit of extra capacity acquired.
The company also announced the acquisition of a fermentation plant in Lake Providence, Louisiana.
Fermentation is a new platform technology for Stepan.
As we look to commercialize the next generation of surfactants, biosurfactants produced via fermentation are attractive due to their favorable biodegradability, low toxicity and in some cases unique antimicrobial properties.
This goes hand in hand with our previous NatSurFact rhamnolipid acquisition in 2020.
This technology provides an important new option as customers across markets seek to achieve greater sustainability advantages within their products.
The acquired plant will require additional investment to make our targeted products, but the site will provide world scale capabilities to support incorporation of new biosurfactants in agricultural and consumer products.
Given the strength of our balance sheet, we will continue to identify and pursue acquisition opportunities to fill gaps in our portfolio and to add new platform chemistries.
Finally, 2020 was a difficult but rewarding year as our team responded to challenges and delivered on opportunities, particularly in our Surfactants business.
We believe the long-term prospects for rigid polyols remains attractive as energy conservation efforts and more stringent building codes should increase demand.
We believe our acquisition of INVISTA's aromatic polyester polyol business and two manufacturing sites position us better to meet long-term demand growth.
We anticipate our Specialty Product business results will improve slightly year-over-year.
In conclusion, we remain optimistic that we will continue to deliver value to you, our shareholders in the new year.
Tina, please review the instructions for the question portion of today's call.
 Assistant:

Chosen response:
q4 adjusted earnings per share $1.42.
qtrly net sales $494.7 million, up 11%.


Prompt:
Human: Before outlining some of our operational metrics I want to provide you with some summary comments regarding the effects of COVID-19 pandemic on our operations.
First, let me say how proud I am of the operational leadership and clinical excellence I have seen throughout organizations these last several months.
And these unusual times it is gratifying to see such a dedicated group of clinicians and support staff come together throughout our organization to provide the highest quality care while keeping our patients and staff safe.
We continue to adapt, evolve and innovate as we navigate through the pandemic.
As I mentioned on our last earnings call, the effect of the pandemic began to impact our company in mid-March.
I also mentioned we thought April would represent the low point for our business, and we would begin to see a rebound in the areas of our business hardest hit by these disruptions.
In our critical illness recovery hospitals, we have held steady during the second quarter on census and our occupancy in light of some of the challenges COVID presents, while our cost of care has increased, we have seen increased occupancy and revenues every month throughout the pandemic.
In our rehabilitation hospitals, we had to temporarily restricted missions in our New Jersey and Miami markets in April and early May due to COVID outbreaks in those regions.
This had the effect of reduced volume and higher cost in those markets.
We also incurred additional cost to care for our patients and other markets.
Having said that, we saw a significant rebound in this business segment in June, as revenue increased over 24% for the month on the same period year-over-year basis.
Our June occupancy rate is -- of 78% is close to pre-COVID levels and exceeded June's last year occupancy of 73%.
In our outpatient rehabilitation and Concentra segments, volumes continue to be our biggest challenge.
As we mentioned, last quarter volumes have been negatively impacted by a number of issues in both segments, some of which have lessened as we've progressed throughout the second quarter.
Our outpatient rehabilitation volumes and revenues were down year over year 48% and 44% respectively in the month of April and May resulting in adjusted EBITDA losses in both of those months in our outpatient rehab segment.
In June however we saw meaningful improvement as states began to ease restrictions in hospitals and surgery centers began performing elective surgeries again.
Volume and revenue shortfalls in June compared to prior year were 19.7% and 17.8% respectively which was a significant improvement from April and May and we experienced positive adjusted EBITDA in June.
In our Concentra segment volumes and revenues were down year over year 39% and 33% respectively in the month of April and May, but only down in June 12.4% and 6.4% as restrictions ease and employers started to increase their workforce.
Overall, our net revenue for the second quarter was down 9.4% to $1.23 billion in the quarter.
We experienced meaningful declines in both our outpatient and Concentra segments which were partially offset by revenue growth in both our critical illness recovery and rehabilitation hospital segments.
Net revenue in our critical illness recovery hospital segment in the second quarter, increased 12.7% to $520 million, compared to $461 million in the same quarter last year.
Patient days were up 5.3% compared to the same quarter last year, with close to 277,000.
Net revenue per patient day increased 7.4% to $1,867 per patient day in the second quarter.
Occupancy in our critical illness recovery hospital segment was 72% in the second quarter compared to 69% in the same quarter last year.
Net revenue, our rehabilitation hospital segment the second quarter increased 5.2% to $169 million compared to $160 million in the same quarter last year.
Patient days declined 2.8% compared to the same quarter last year.
However, net revenue per patient day increased 12% to $1,831 per day in the second quarter.
The entire decline in patient days occurred in April, with both May and June showing improvement when compared to the same period prior year.
Occupancy -- hospitals was 71% in the second quarter, compared to 75% in the same quarter last year.
Net revenue on our outpatient rehab segment, the second quarter decreased 36.2% to $167 million compared to 262 million in the same quarter last year.
Patient visits declined 39.1% to 1.34 million visits in the second quarter.
Our net revenue per visit was $106 in the second quarter compared to $102 in the same quarter last year.
Net revenue declines were most significant during April which was down 45.6% year over year and May which was down 43.3% year over year.
June showed improvement from those trends with net revenues down 17.8% year over year.
Volume trend that along the same lines as revenue for the same monthly periods when compared to the same month last year.
Net revenue in our Concentra segment for the second quarter decreased 24.5% to $312 million compared to $413 million in the same quarter last year.
For the occupational health centers, patient visits were down 30.7% to 2.15 million visits in the quarter.
Net revenue per visit in the centers was $124 in the second quarter compared to $121 in the same quarter last year.
Similar to outpatient net revenue declined for most significant during April which was down 34.9% year over year and May which was down 30.7% year over year, with June showing improvement from those trends with net revenue down only 6.4% year over year.
Total company adjusted EBITDA for the second quarter was down 4% to $178.8 million, compared to 186.2 million the same quarter last year.
Our consolidated adjusted EBITDA margin was up at 14.5% for the second quarter compared to 13.7% for the same quarter last year.
We recorded $55 million in other operating income in the second quarter related to payments received under the provider relief funds, $54.2 million was recorded with our other activities and 800,000 was recorded in the Concentra segments.
The adjusted EBITDA results for our critical illness recovery hospitals, rehabilitation hospitals and outpatient rehabilitation hospitals segments do not include any recognition of these funds.
Their respective portions of these funds recognizing the second quarter were included in other operating income.
Our critical illness recovery hospital segment adjusted EBITDA increased 39.9% to $89.7 million, compared to 64.1 million in the same quarter last year.
Adjusted EBITDA margin for the segment was 17.3% in the second quarter, compared to 13.9% in the same quarter last year.
Adjusted EBITDA and margin growth were driven by our revenue growth which was partially offset by higher operating expenses related to COVID.
Our rehabilitation hospitals segment adjusted EBITDA was $27.6 million, compared to 30 million in the same quarter last year.
Adjusted EBITDA margin for the rehabilitation hospital segment was 16.4% in the second quarter, compared to 18.7% in the same quarter last year.
The decline in adjusted EBITDA and margin are primarily driven by temporary admission restrictions in several of our hospitals in New Jersey and South Florida and higher operating expenses related to COVID.
Our outpatient rehab and current adjusted EBITDA loss of $6.3 million in the second quarter compared to $42.6 million adjusted EBITDA contribution in the same quarter last year.
Adjusted EBITDA was adversely impacted by the significant decline in volume during the quarter.
We did incur adjusted EBITDA losses in both April and May that had positive adjusted EBITDA in June as our volume shortfalls to prior year improved.
Our Concentra adjusted EBITDA was $41.5 million, compared to 76.1 million in the same quarter last year.
Adjusted EBITDA margin was 13.3% in the second quarter, compared to 18.4% in the same quarter last year.
Adjusted EBITDA was impacted by the significant decline in our volume during the quarter.
We had adjusted EBITDA shortfalls to prior year results in both April and May but adjusted EBITDA in June exceeded both April and May as well as June of last year.
Earnings per fully diluted share increased over 18% to $0.39 for the second quarter compared to $0.33 for the same quarter last year.
Adjusted earnings per fully diluted share was $0.38 per diluted share for the second quarter.
Adjusted earnings per fully diluted share excludes the non-operating gain and its related tax effect in the second quarter of this year.
For the second quarter, our operating expenses which include our cost of services in general and administrative expenses were $1.12 billion and 90.5% of net operating revenues.
For the same quarter last year, operating expenses were $1.18 billion and 86.8% of net operating revenue, cost of services or $1.08 billion for the second quarter, this compares to $1.15 billion in the same quarter last year.
As a percent of net revenue cost of services was 87.8% for the second quarter, this compares to 84.5% in the same quarter last year.
G&A expense was $33.5 million in the second quarter compared to $31.3 million in the same quarter last year.
G&A as a percent of net revenue was 2.7% in the second quarter.
This compares to 2.3% of net revenue for the same quarter last year.
As Bob mentioned, total adjusted EBITDA was $178.8 million and the adjusted EBITDA margin was 14.5% for the second quarter, as compared to the total adjusted EBITDA of $186.2 million and an adjusted EBITDA margin of 13.7% in the same quarter last year.
We recorded $55 million in other operating income in the second quarter related to payments received under the provider relief funds.
I would like to reiterate that with the exception of $800,000 of grant monies to Concentra no grant monies were included in our segment reporting.
Depreciation and amortization was $52.3 million in the second quarter this compares to $55 million in the same quarter last year.
We generated $8.3 million in equity and earnings of unconsolidated subsidiaries during the second quarter, compared to $7.4 million in the same quarter last year.
We also had non-operating gain of $300,000 in the second quarter this year.
Interest expense was $37.4 million in the second quarter, this compares to $51.5 million in the same quarter last year.
The decline was a result of a reduction in the variable interest rates, as well as the refinancing activity we did during the second half of last year.
We recorded income tax expense of $23.3 million in the second quarter of this year which represents an effective tax rate of 25.7%.
This compares to the tax expense of $20.8 million in effective tax rate of 25.8% in the same quarter last year.
Net income attributable to non-controlling interests were $15.8 million in the second quarter, this compares to $15.2 million in the same quarter last year.
Net income attributable to Select Medical Holdings was $51.7 million in the second quarter and fully diluted earnings per share is $0.39 excluding the non-operating gain as related tax effects our adjusted earnings per share was $0.38.
At the end of the second quarter, we had $3.4 billion of debt outstanding and $510 million of cash on the balance sheet.
Our debt balance at the end of the quarter included $2.1 billion in term loans, $1.2 billion in 6.25 senior notes and $77 million of other miscellaneous debt.
Operating activities provided $642 million of cash flow in the second quarter which included $317 million in Medicare advances and $100 million in provider relief funds $55 million of which was recognized in operating income.
Also contributing to operating cash flow in the quarter was a reduction in our accounts receivable down balance and increased accrued liabilities and tax taxes payable.
Our accrued liability includes $33 million in deferred employer FICA tax allowed for under the CARES Act.
Investing activities used $35.9 million of cash in the second quarter, the use of cash included $32 million in purchases of property and equipment and $5 million in acquisition investment activity this was offset in part by $1.2 million in proceeds from the sale of businesses during the quarter.
Financing activities used $169.5 million in cash in the second quarter, this includes $165 million in net repayments on revolving loans and $2.6 million in net repayments of other debt during the quarter.
Our total available liquidity at the end of the second quarter was over $1 billion which is evenly split between cash on hand and revolver availability.
 Assistant:

Chosen response:
compname reports q2 adjusted earnings per share $0.38.
q2 adjusted earnings per share $0.38.
q2 earnings per share $0.39.
q2 revenue $1.233 billion versus refinitiv ibes estimate of $1.15 billion.


Prompt:
Human: Let me start out by saying Q4 was another very good quarter for us with all four business segments exceeding same quarter prior year revenue, adjusted EBITDA and margin.
2019 was a solid year for development growth for the company.
We added a new 60-bed rehabilitation hospital in partnership with the University of Florida Health System in Gainesville, induced 60-bed rehabilitation hospital in partnership with Dignity in Las Vegas and a new 30-bed rehabilitation hospital with partners in New Orleans.
We also relocated our rehabilitation hospital in Newport News, Virginia that we operate in partnership with Riverside Health into a new 50-bed hospital.
In addition, we acquired four critical illness recovery hospitals in two separate transactions and added additional critical illness recovery hospital through a joint venture partnership.
We also increased our portfolio of outpatient rehab clinics by 78 clinics during the year and in 2019 with 1,740 clinics under our management.
During 2019, we completed the integration of U.S. HealthWorks into our Concentra business and have fully captured the synergies we outlined when we acquired the business in early 2018.
Let me now take you through our operational metrics for the fourth quarter and the full year.
Overall, our net revenue in the fourth quarter increased 8.7% to $1.37 billion.
For the full year, net revenue increased 7.3% to $5.45 billion.
Net revenue in our critical illness recovery hospital segment in the fourth quarter increased 6.7% to $455 million.
The increase was driven by both an increase in volume and rate with patient days up 5.2% compared to the same quarter last year and revenue per patient day up 1.5% to $1,742 per patient day in the fourth quarter.
Occupancy in our critical illness recovery hospital segment was 67% in the fourth quarter compared to 66% in the same quarter last year.
For the year, net revenue in our critical illness recovery hospital segment increased 4.7% to $1.84 billion.
Again, we experienced an increase in both volume and rate compared to last year.
Patient days were up 2.6% and net revenue per patient day was up 2.2% to $1,753 per patient day for the year.
Overall, occupancy in our critical illness recovery hospitals was 68% this year compared to 67% last year.
Net revenue in our rehabilitation hospital segment for the fourth quarter increased 20.9% to $380 million [Phonetic] compared to $151 million in the same quarter last year.
Patient days increased 15% and net revenue per patient day was up 8% to $1,739 per patient day in the fourth quarter.
Occupancy in our rehabilitation hospital segment was 78% in the fourth quarter compared to 75% in the same quarter last year.
For the year, net revenue in our rehabilitation hospital segment increased 14.9% to $671 million compared to $584 million last year.
Patient days increased 11.9% and net revenue per patient day was up 4.9% to $1,685 per patient day for the full year.
The increase in patient days for both fourth quarter and the full year was primarily driven by the new hospitals we opened in 2019.
Occupancy in our rehabilitation hospital was 76% this year compared to 74% last year.
Net revenue in our outpatient rehab segment for the fourth quarter increased 7.7% to $272 million compared to $252 million in the same quarter last year.
Patient visits increased 7.2% to over $2.25 million -- 2.25 million visits in the fourth quarter.
Our net revenue per visit increased $104 in the fourth quarter compared to $103 per visit in the same quarter last year.
For the year, net revenue on our outpatient rehab segment increased 5% to almost $1.05 billion.
Patient visits increased 4.3% to over 8.7 million visits for the year.
The overall increase in patient visits resulted from new start-up clinics, as well as acquired clinics.
Net revenue per visit was $103 per visit both this year and last year.
Net revenue in our Concentra segment for the fourth quarter increased 3.4% to $397 million.
For the fourth quarter, revenue from our centers was $354 million and the balance of approximately $43 million was generated from on-site clinics, community-based outpatient clinics and other services.
For the centers, we had patient visits of 2.9 million and net revenue per visit was $122 in the fourth quarter.
This compares to 2.8 million visits and $124 per visit in the same quarter last year.
For the year, net revenue in our Concentra segment increased 4.6% to almost $1.63 billion.
The primary driver of the increase was the full year effect of U.S. HealthWorks acquired February 1, 2018 and additional acquired centers in 2019.
Visits in our centers increased 5.6% to almost 12.1 million visits compared to 11.4 million visits last year.
Revenue per visit was $122 this year compared to $124 per visit last year.
The decline in revenue per visit for both the fourth quarter and the full year was driven by our change in our business mix with an increase in employer service visits, which are paid at a lower rate.
Total company adjusted EBITDA for the fourth quarter increased 16.9% to $171.9 million compared to $147.1 million in the same quarter last year with consolidated adjusted EBITDA margin at 12.5% for the fourth quarter compared to 11.6% for the same quarter last year.
For the year, total adjusted EBITDA increased 10.2% to $710.9 million compared to $645.2 million last year with consolidated adjusted EBITDA margin at 13% for the year compared to 12.7% last year.
For our critical illness recovery hospital segment, adjusted EBITDA was $60.5 million for the fourth quarter compared to $56 million in the same quarter last year.
The increase in adjusted EBITDA was driven by both an increase in our existing hospitals and contribution from the four hospitals acquired in 2019.
Adjusted EBITDA margin for the segment was 13.3% in the fourth quarter compared to 13.1% in the same quarter last year.
For the year, critical illness recovery hospital segment adjusted EBITDA was $254.9 million compared to $243 million last year.
The increase in adjusted EBITDA was driven by an increase in our existing hospitals despite the extended temporary closure of our Panama City Hospital and the contribution from our four hospitals acquired in 2019.
Adjusted EBITDA margin was 13.9% both this year and last year.
Our rehabilitation hospital segment adjusted EBITDA increased 51.4% to $43.3 million in the fourth quarter compared to $28.6 million in the same quarter last year.
Adjusted EBITDA margin for the rehab segment was 23.7% in the fourth quarter compared to 18.9% in the same quarter last year.
The increase in adjusted EBITDA and margin resulted from both increases in our existing hospitals, as well as contributions from the hospitals we opened in 2019.
For the year, our rehabilitation hospital adjusted EBITDA increased 24.7% to $135.9 million compared to $108.9 million last year.
Adjusted EBITDA margin was 20.2% for the year compared to 18.7% last year.
The increases in adjusted EBITDA and margin resulted from increases in volume and rate across many of our existing hospitals.
Adjusted EBITDA losses in our start-up hospitals, $8.8 million this year compared to $4.7 million last year.
Outpatient rehab adjusted EBITDA increased 14.9% to $40.2 million in the fourth quarter this year compared to $35 million in the same quarter last year.
Adjusted EBITDA margin for the outpatient segment was 14.8% in the fourth quarter compared to 13.9% in the same quarter last year.
For the year, adjusted -- outpatient rehab adjusted EBITDA increased 6.9% to $151.8 million compared to $142 million last year.
Adjusted EBITDA margin was 14.5% compared to 14.3% last year.
The increase in adjusted EBITDA for the full year was driven by increases in both our existing clinics and contributions from new start-up and acquired clinics.
Concentra adjusted EBITDA increased 6.8% to $56.8 million for the fourth quarter compared to $52.9 million in the same quarter last year.
Adjusted EBITDA margin was 14.2% in the fourth quarter compared to 13.8% in the same quarter last year.
For the year, Concentra adjusted EBITDA was $276.5 million compared to $252 million last year.
Adjusted EBITDA margin for the Concentra segment was 17% this year compared to 16.2% last year.
The increase in adjusted EBITDA margin for both the fourth quarter and the full year was a result of lower relative operating costs across the combined Concentra and U.S. HealthWorks business.
Earnings per fully diluted share was $0.24 for the fourth quarter compared to $0.18 for the same quarter last year.
Adjusted earnings per fully diluted share was $0.31 per diluted share for the fourth quarter compared to $0.20 in the same quarter last year.
Adjusted earnings per fully diluted share excludes the pre-tax losses on early retirement of debt and its related tax effects for both -- in both the fourth quarters this year and last year.
Earnings per fully diluted share was $1.10 for the year compared to $1.02 last year.
Adjusted earnings per fully diluted share was $1.24 per diluted share for the year compared to $1.3 last year.
Adjusted earnings per fully diluted share excludes the pre-tax losses on early retirement of debt and non-operating gains and the related tax effects.
Last year adjusted earnings per share excluded the loss on early retirement debt, non-operating gains, U.S. HealthWorks acquisition cost and their related tax effects.
For the fourth quarter, our operating expenses, which include our cost of services and general and administrative expense were $1.2 billion.
This compares to $1.1 billion in the same quarter last year.
As a percentage of our net revenue, operating expenses for the fourth quarter were 88%.
This compares to 88.9% in the same quarter last year.
For the year, our operating expenses were $4.77 billion.
This compares to $4.46 billion last year.
As a percentage of our net revenue, operating expenses for the year were 87.5%.
This compares to 87.8% last year.
Cost of services were $1.18 billion for the fourth quarter.
This compares to $1.09 billion in the same quarter last year.
As a percent of net revenue, cost of services were 85.5% in the fourth quarter.
This compares to 86.5% in the same quarter last year.
For the year, cost of services were $4.6 billion.
This compares to $4.3 billion last year.
As a percent of our net revenue, cost of services were 85.1% for the year.
This compares to 85.4% last year.
G&A expense was $34.1 million in the fourth quarter.
This compares to $30.3 million in the same quarter last year.
G&A as a percent of net revenue was 2.5% in the fourth quarter.
This compares to 2.4% of net revenue for the same quarter last year.
For the year, G&A expense was $128.5 million.
This compares to $121.3 million last year.
G&A as a percent of revenue was 2.4% both this year and last year.
As Bob mentioned, total adjusted EBITDA was $171.9 million and the adjusted EBITDA margin was 12.5% for the fourth quarter.
This compares to the adjusted EBITDA of $147.1 million in adjusted EBITDA margin of 11.6% in the same quarter last year.
Total adjusted EBITDA for the year was $710.9 million.
This compares to $645.2 million last year.
Adjusted EBITDA margin was 13% this year.
That compares to 12.7% last year.
Depreciation and amortization was $52.5 million in the fourth quarter.
This compares to $52.6 million in the same quarter last year.
For the year, depreciation and amortization expense was $212.6 million compared to $201.7 million last year.
We generated $6.3 million in equity in earnings of unconsolidated subsidiaries during the fourth quarter.
This compares to $7 million in the same quarter last year.
For the year, we generated $25 million in equity and earnings of unconsolidated subsidiaries.
This compares to $21.9 million last year.
We did recognize a loss on early retirement of debt in the fourth quarter this year of $19.4 million.
We recognized a loss on early retirement of debt in the fourth quarter of last year of $3.9 million.
For the year, we recognized $38.1 million of losses on early retirement of debt.
We also recognized non-operating gains of $6.5 million during the year.
Last year we recognized $14.2 million of losses on early retirement of debt and $9 million of non-operating gains.
The loss on early retirement of debt in 2019 resulted from the refinancing activities in the second half of the year.
We were able to reduce interest rates and extend maturities on Select's senior notes, as well as reduced borrowing cost at Concentra through the repayment of their second-lien term loan.
Interest expense was $44 million in the fourth quarter.
This compares to $50.5 million in the same quarter last year.
The decline in interest expense in the quarter resulted from both the decline in LIBOR rates, as well as the repayment on Concentra's second-lien term loan, which carried a higher interest rate.
Interest expense for the year was $206.6 million.
This compares to $198.5 million last year.
We recorded income tax expense of $63.7 million this year.
That compares to income tax expense of $58.6 million last year.
Net income attributable to Select Medical Holdings was $148.4 million for the year and fully diluted earnings per share in $1.10.
Excluding the pre-tax losses on early retirement of debt and non-operating gains and the related tax effects this year, our adjusted earnings per share was $1.24.
We completed refinancing transaction during the fourth quarter, which effectively combined the capital structure of Select and our majority-owned subsidiary, Concentra.
On December 10, Select issued $675 million in incremental 6.25% senior notes due 2026 at a price of $1.06 [Phonetic] and entered into an incremental $615 million term loan.
A portion of the net proceeds from the incremental senior notes and incremental term loan were used by Select to loan $1.24 billion to Concentra who then used the proceeds from the intercompany loan to repay in full its $1.24 billion in syndicated term loans outstanding.
At the end of the year, we had $3.4 billion of debt outstanding and $335.9 million of cash on the balance sheet.
Our debt balance at the end of the year included $2.143 billion in term loans, $1.225 million and 6.25% senior notes and $78.5 million of other miscellaneous debt.
Operating activities provided $178.5 million of cash flow in the fourth quarter.
This compares to $113.2 million in the same quarter last year.
For the year, operating activities provided $445.2 million of cash flow compared to $494.2 million last year.
Our days sales outstanding or DSO was 51 days at December 31, 2019.
This compares to 53 days at September 30, 2019 and 51 days at December 31, 2018.
Investing activities used $46 million of cash in the fourth quarter.
The use of cash was primarily related to $33.2 million in purchases of property and equipment and $12.8 million for acquisition and investment activities during the quarter.
Investing activities used $316.7 million for the year.
The use of cash was primarily related to $157.1 million in purchases of property and equipment and $159.6 million in net acquisition and investment activities during the year.
Financing activities provided $67.4 million of cash in the fourth quarter.
Provision of cash including $77.1 million in net proceeds from the refinancing in December.
This was offset in part by distributions to non-controlling interest and repayment of other debt.
For the year, financing activities provided $32.3 million of cash.
The provision of cash included $104.6 million in net proceeds from the refinancing activities during the year.
This was offset in part by common stock repurchases, repayment of bank overdrafts, repayment of other debt and distributions to non-controlling interest during the year.
We expect net revenue to be in the range of $5.575 billion $5.675 billion.
Adjusted EBITDA is expected to be in the range of $725 million to $760 million.
And fully diluted earnings per share is expected to be in the range of $1.27 to $1.46.
As many of you are probably aware, after the end of the year, we entered into agreements with our Concentra joint venture partners to purchase a total of 18.7% of the voting interest in Concentra for a total consideration of approximately $352.7 million.
The purchase was the first of our partners three put rights under the restated operating agreement post-U.S. HealthWorks transaction.
After the purchase, Select now owns approximately 68.8% of the voting interest of Concentra.
The joint venture partners continue to have the right to put one-third of their initial membership interest to Select in 2021 and any remaining membership interest in 2022 with Select retaining the right to call any remaining membership interest outstanding in 2022.
 Assistant:

Chosen response:
compname reports q4 earnings per share $0.24.
q4 adjusted earnings per share $0.31.
q4 earnings per share $0.24.
sees fy 2020 earnings per share $1.27 to $1.46.
sees fy 2020 revenue $5.575 billion to $5.675 billion.
reaffirms its 2020 business outlook.


Prompt:
Human: Their ability to adjust to the changing COVID variance throughout 2021 is a great testimony to our team's adaptability and their professionalism.
Our revenues grew nicely in all four of our business segments, with aggregate revenue growth for the quarter close to 7% and for the year, over 12%.
However, we also experienced substantial wage pressure in Q4 in terms of agency, nursing rates and utilization, primarily in our critical illness recovery hospitals.
Martin Jackson will cover these labor increases in more detail in his comments.
This information will provide a data point for each of our business segments prior to the pandemic compared to the current filing.
We will continue to include this information, as long as it provides meaningful insight to the impact of COVID-19 and the company's financial performance.
I also wanted to note that we recorded $8 million in other operating income in the fourth quarter, and $124 million for the full year 2021 related to Provider Relief Fund grant payments.
In 2020, we recorded $36 million in other operating income in the fourth quarter, and $90 million for the full year 2020 related to these payments.
The adjusted EBITDA results for our critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation segments do not include any recognition of these funds.
The Concentra segment does include $1 million in the fourth quarter and $35 million for the full year 2021 of adjusted EBITDA related to these funds.
Total company revenue for the fourth quarter was $1.56 billion, a 6.8% increase compared to the same quarter prior year.
For the full year, total company revenue increased 12.2% to $6.2 billion, compared to $5.5 billion in the prior year.
Revenue in our Critical Illness Recovery Hospitals segment in the fourth quarter increased 7.3% to $577 million compared to $538 million in the same quarter prior year.
Patient days were up 3.2% compared to the same quarter prior year, with over 294,000 patient days.
Net revenue per patient day increased 3.5% to $1,946 per patient day in the fourth quarter, as case mix index was 1.32 in the fourth quarter compared to 1.30 in the same quarter last year.
For the year, revenue in our Critical Illness Recovery Hospital segment increased 8.1% to over 12 -- $2.2 billion compared to almost $2.1 billion in the prior year.
Patient days were up 1.9% and revenue per patient day increased 6.1% compared to the prior year.
Revenue in our Rehabilitation Hospital segment in the fourth quarter increased 10.5% to $216 million, compared to $196 million in the same quarter prior year.
Patient days were up 8.1% compared to the same quarter prior year.
And net revenue per patient day increased 2.7% to $1,888 per day in the fourth quarter.
For the year, revenue in our Rehabilitation Hospital segment increased 15.6% to $849 million, compared to $735 million in the prior year, driven by both volume and rate increases.
Patient days were up 11.8%, as revenue per patient day increased 4.2% compared to the prior year.
Revenue in our Outpatient Rehab segment in the fourth quarter increased 7.8% to $277 million, compared to $257 million in the same quarter prior year.
Patient visits were up 9.2%, compared to the same quarter prior year, with over 2.3 million visits in the fourth quarter.
Our revenue per visit was $102 in the fourth quarter.
For the year, revenue in our Outpatient Rehab segment increased 17.9% to over $1.08 billion, compared to $920 million in the prior year.
Patient visits were up 21.1% with almost 9.2 million visits for the year.
Our net revenue per visit was $102 for the full year.
Revenue in our Concentra segment for the fourth quarter increased 3% to $411 million, compared to $399 million in the same quarter prior year.
For the occupational health centers, patient visits were up 8.3% with over three million visits in the fourth quarter.
Revenue per visit in the centers was $125 in the fourth quarter.
For the year, revenue at Concentra increased 15.4% to over $1.7 billion, compared to $1.5 billion in the prior year.
For the occupational health centers, patient visits increased 13.4%, with over 12 million visits for the year.
Revenue per visit in the centers was $125 for the year.
Total company adjusted EBITDA for the fourth quarter was $138.4 million, compared to $221.3 million in the same quarter prior year.
Our consolidated adjusted EBITDA margin was 8.9% for the fourth quarter, compared to 15.2% for the same quarter of prior year.
For the full year, total company adjusted EBITDA increased 18.3% to $947.4 million compared to $800.6 million in the prior year.
Our consolidated adjusted EBITDA margin was 15.3% for the year, compared to 14.5% in the prior year.
As mentioned previously, adjusted EBITDA results for the full year included $124 million of Provider Relief Funds grant income compared to $90 million in the prior year.
Our Critical Illness Recovery Hospital Segment adjusted EBITDA for the fourth quarter was $24.6 million, compared to $75 million in the same quarter prior year.
Adjusted EBITDA margin for this segment was 4.3% in the fourth quarter, compared to 14% in the same quarter prior year.
The reduction in EBITDA was primarily driven by labor cost increases due to utilization of agency staffing.
For the full year, Critical Illness Recovery Hospitals segment adjusted EBITDA was $268 million, compared to $342.4 million in the prior year.
Adjusted EBITDA margin for this segment was 11.9% for the full year, compared to 16.5% in the prior year.
The reduction of EBITDA is primarily related to increased labor costs throughout the year.
Our Rehabilitation Hospital segment adjusted EBITDA for the fourth quarter was $39.3 million, compared to $42.4 million in the same quarter prior year.
Adjusted EBITDA margin for the Rehab Hospital segment was 18.2% in the fourth quarter, compared to 21.6% in the same quarter prior year.
We also experienced nurse agency pressures in our rehabilitation hospitals during Q4.
For the full year, Rehabilitation Hospital segment adjusted EBITDA was $184.7 million, compared to $153.2 million in the prior year.
Adjusted EBITDA margin for this segment was 21.7% for the year compared to 20.9% in the prior year.
Our Outpatient Rehab segment adjusted EBITDA for the fourth quarter was $27.6 million, compared to $27.7 million in the same quarter prior year.
Adjusted EBITDA margin was 9.9% in the fourth quarter, compared to 10.8% in the same quarter prior year.
For the full year, Outpatient Rehab segment adjusted EBITDA was $138.3 million, compared to $79.2 million in the prior year.
Adjusted EBITDA margin was 12.8% for the full year, compared to 8.6% in the prior year.
Concentra adjusted EBITDA for the fourth quarter was $70.7 million, compared to $69.4 million in the same quarter prior year.
Adjusted EBITDA margin was 17.2% in the fourth quarter, compared to 17.4% in the same quarter prior year.
For the full year, Concentra adjusted EBITDA was $389.6 million, compared to $252.9 million in the prior year.
Adjusted EBITDA margin was 22.5% for the full year, compared to 16.8% in the prior year.
Earnings per fully diluted share was $0.37 in the fourth quarter, compared to $0.57 per share in the same quarter prior year.
For the full year, earnings per fully diluted share were $2.98 compared to $1.93 per share in the prior year.
Adjusted earnings per fully diluted share last year was $1.89, excluding non-operating gains and their related tax effects.
For the fourth quarter, our operating expenses, which include our cost of services and general and administrative expenses, were $1.44 billion, which represents 92.4% of our revenues.
For the same quarter prior year, operating expenses were $1.28 billion and represented 87.8% of our revenues.
The primary driver of increases in our operating expenses is due to increased labor costs, particularly in our Critical Illness Recovery hospitals.
We have seen nearly a doubling of agency nursing rates in Q4, and also an increase in nurse agency utilization in our critical illness recovery hospitals.
Our operators have done a good job of controlling other operating costs, as most have decreased on a per patient day and per visit basis.
As we have mentioned in previous earnings calls, our critical illness recovery hospital strategy is to continue to admit critically complex patients sent to us by our referral partners, even though our labor costs have increased substantially.
We have developed strong referral relations during this pandemic, and we believe continued acceptance of these referrals will provide for strong relationships over the long term.
For the full year, our operating expenses were $5.43 billion, compared to $4.85 billion in the prior year.
As a percent of revenue, operating expenses were 87.6% in both this year and the prior year.
As I mentioned in our Q4 operating expense section, the majority of increases in our expenses are the result of increased labor costs throughout the year.
Cost of services were $1.4 billion for the fourth quarter.
This compares to $1.25 billion in the same quarter prior year.
As a percent of revenue, cost of services were 89.9% for the fourth quarter, compared to 85.4% in the same quarter prior year.
For the full year, cost of services were $5.2 billion.
This compares to $4.7 billion in the prior year.
As a percent of revenue, cost of services were 85.2% for both the full year this year and prior year.
G&A expense was $38 million in the fourth quarter.
This compares to $35.2 million in the same quarter prior year.
G&A as a percentage of revenue was 2.4% in both the fourth quarter this year and the same quarter prior year.
For the full year, G&A expense was $147 million.
This compares to $138 million in the prior year.
G&A as a percent of revenue was 2.4% for the full year.
This compares to 2.5% for the prior year.
As Rob mentioned, total adjusted EBITDA was $138.4 million, and adjusted EBITDA margins was 8.9% for the fourth quarter.
This compares to adjusted EBITDA $221.3 million and adjusted EBITDA margin of 15.2% in the same quarter prior year.
For the full year, total adjusted EBITDA was $947.4 million and adjusted EBITDA margin was 15.3%.
This compares to total adjusted EBITDA of $800.6 million and an adjusted EBITDA margin of 14.5% in the prior year.
Depreciation and amortization was $51.9 million in the fourth quarter.
This compares to $51.5 million in the same quarter prior year.
For the full year, depreciation and amortization was $202.6 million.
This compares to $205.7 million in the prior year.
We generated $11.2 million in equity and earnings of unconsolidated subsidiaries during the fourth quarter.
This compares to $9.8 million in the same quarter of prior year.
For the full year, equity and earnings were $44.4 million.
This compares to $29.4 million in the prior year.
We also had a non-operating gain of $2.2 million in the fourth quarter this year, and a non-operating loss of $303,000 in the fourth quarter last year.
For the full year, we had non-operating gain of $2.2 million and non-operating gain of $12.4 million last year.
Interest expense was $33.9 million in the fourth quarter.
This compares to $35.5 million in the same quarter prior year.
We also recorded interest income of $600,000 in the fourth quarter this year.
For the full year, interest expense was $136 million.
This compares to $153 million in the prior year.
We've also recorded $5.4 million in interest income this year.
We recorded an income tax benefit of $8.6 million in the fourth quarter this year, and income tax expense of $35.1 million in the same quarter prior year.
For the full year, we recorded income tax expense of $129.8 million, which represents an effective tax rate of 21.6% compared to income tax expense of $111.9 million, and an effective tax rate of 24.5% in the prior year.
Net income attributable to non-controlling interests were $16.5 million in the fourth quarter.
This compares to $24.9 million in the same quarter prior year.
For the full year, net income attributable to non-controlling interests were $97.7 million.
This compares to $85.6 million in the prior year.
Net income attributable to Select Medical Holdings was $49.9 million in the fourth quarter and fully diluted earnings per share were $0.37.
Net income attributable to Select Medical Holdings was $402.2 million for the full year and fully diluted earnings per share was $2.98.
At the end of the year, we had $3.6 billion of debt outstanding, $74 million of cash on the balance sheet.
Our debt balance at the end of the year included $2.1 billion in term loans, $160 million in revolving loans, $1.2 billion in 6.25% senior notes, and $85 million of other miscellaneous debt.
We ended the year with net leverage for our senior secured credit agreement of 3.77 times.
For the fourth quarter, operating activities used $60.8 million of cash flow.
This includes repayment of Medicare advances of $75.7 million and deferred employment -- employer payroll tax of $53.1 million.
We expect the remaining balance of the Medicare advances of $83.8 million to be repaid by April of this year.
Our days sales outstanding, or DSO, was 53 days at the end of the year.
This compares to 54 days at the end of the third quarter, and 56 days at the end of last year.
Investing activities used $99.3 million of cash in the fourth quarter.
This includes $55 million in purchases of property and equipment, and $60 million in acquisition and investment activities during the quarter, including the acquisition of Acuity Healthcare in this quarter.
Financing activities used $513.7 million of cash in the fourth quarter.
This includes over $160 million to purchase membership interest in Concentra, which we now own 100% of the voting interest.
For the full year, operating activities provided over $400 million of cash flow, which was after the repayment of $241 million in Medicare advances, and the repayment of the $53 million in deferred payroll taxes.
Investing activities used $256.6 million of cash for the full year.
This includes $180.5 million in purchases of property and equipment, and close to $103 million in acquisition and investment activities for the year.
This was offset in part by $26.8 million of proceeds from asset sales during the year.
Financing activities used $647.4 million of cash for the full year.
As I mentioned, this included over $660 million of purchased membership interest in Concentra in the fourth quarter.
The company paid cash dividends to its common shareholders of $16.8 million in the fourth quarter, and $50.6 million for the year.
The company also repurchased over 387,000 shares of common stock, for a total cost of $11.1 million during the fourth quarter and 1.77 million shares for a total cost of $58.6 million for the full year under the terms of its board authorized repurchase program.
Given the uncertainties due to significant increased labor costs resulting from higher-than-expected use of agency clinical staff, we are issuing our business outlook at this time for revenue only for 2022.
We expect revenue to be in the range of $6.25 billion to $6.4 billion for the full year of 2022.
We are also reaffirming our previously issued three-year compound annual growth rate target for revenue only, which we expect to be in the range of 4% to 6% for 2021 through 2023.
We expect our capital expenditure to be in the range of $180 million to $200 million for this year.
We do plan to readdress our business outlook and target compound annual growth rates for adjusted EBITDA and earnings per common share when the labor climate stabilizes.
 Assistant:

Chosen response:
q4 earnings per share $0.37.
q4 revenue rose 6.8 percent to $1.56 billion.
select medical expects revenue to be in range of $6.25 billion to $6.40 billion for full year of 2022.
select medical is also reaffirming its previously issued three-year compound annual growth rate target for revenue.