Encompass Health declares dividend on common stock

Rhea-AI Summary

Encompass Health Corporation (NYSE: EHC) declared a quarterly cash dividend of $0.28 per share, payable on July 20, 2022. The record date for the dividend is July 13, 2022. This adjustment in payment dates accommodates the upcoming spin-off of its Enhabit Home Health and Hospice business, set for July 1, 2022. Encompass Health operates a vast network of healthcare facilities, providing integrated services across the United States, and is recognized for its workplace culture.

Positive

• Quarterly cash dividend of $0.28 per share enhances shareholder income.
• Recent spin-off expected to streamline operations and focus on core services.

Negative

• Spin-off may create uncertainty around future business model and revenues.
• Potential impact of COVID-19 on patient volumes and operational costs.

BIRMINGHAM, Ala., May 5, 2022 /PRNewswire/ -- Encompass Health Corporation (NYSE: EHC) today announced that its board of directors has declared a quarterly cash dividend on its common stock of $0.28 per share, payable on July 20, 2022, to holders of record on July 13, 2022. These record and payment dates were set for later in July than usual to accommodate the expected distribution date of July 1, 2022, for the previously announced spin off of the Enhabit Home Health and Hospice business.

About Encompass Health
As a national leader in integrated healthcare services, Encompass Health (NYSE: EHC) offers both facility–based and home–based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. With a national footprint that includes 147 hospitals, 252 home health locations, and 99 hospice locations in 42 states and Puerto Rico, the Company provides high–quality, cost-effective integrated healthcare. Encompass Health is ranked as one of Fortune's 100 Best Companies to Work For. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter, Instagram and Facebook. 

Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as the timing and effects of the spin off and rebranding of the home health and hospice business and its impact on the business model, outlook and guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, the customary conditions to effecting a spin-off transaction, including the effectiveness of a Form 10 registration statement, regulatory approvals and receipt of a favorable IRS private letter ruling, the continued spread of COVID-19, including the speed, depth, geographic reach and duration of the spread, which could decrease our patient volumes and revenues and lead to staffing and supply shortages and associated cost increases; actions to be taken by Encompass Health in response to the pandemic; the outcome of the strategic review of the home health and hospice segment; the legal, regulatory and administrative developments that occur at the federal, state and local levels; Encompass Health's infectious disease prevention and control efforts; Encompass Health's ability to comply with extensive, complex, and ever-changing regulations in the healthcare industry; any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving Encompass Health, including any matters related to yet undiscovered issues, if any, at acquired companies; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended Dec. 31, 2021 and Form 10-Q for the quarter ended March 31, 2022.

Media Contact:
Erin Wendel-Ritter | 205 970-5912
erin.wendel-ritter@encompasshealth.com

Investor Relations Contact:
Mark Miller | 205 970-5860
mark.miller@encompasshealth.com

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SOURCE Encompass Health Corp.

FAQ

What is the dividend amount declared by Encompass Health (EHC)?

Encompass Health declared a dividend of $0.28 per share.

When is the payment date for the Encompass Health (EHC) dividend?

The payment date for the dividend is July 20, 2022.

What is the record date for the Encompass Health (EHC) dividend?

The record date for the dividend is July 13, 2022.

How does the spin-off affect Encompass Health's (EHC) business?

The spin-off may lead to a more focused business model, but it could also introduce uncertainty regarding future revenues.