Encompass Health reports results for first quarter 2025
Encompass Health (NYSE: EHC) reported strong Q1 2025 financial results with significant growth across key metrics. Net operating revenue increased 10.6% to $1,455.4 million, driven by a 6.3% growth in total discharges and a 3.9% increase in net patient revenue per discharge.
The company's performance showed notable improvements with income from continuing operations per diluted share rising 33.3% to $1.48, while adjusted earnings per share grew 22.3% to $1.37. Cash flows from operating activities increased 20.9% to $288.6 million, and Adjusted EBITDA rose 14.9% to $313.6 million.
During Q1, EHC expanded its capacity by opening a new 40-bed hospital and adding 25 beds to existing facilities. Based on strong performance, the company increased its full-year 2025 guidance, projecting net operating revenue of $5,850-$5,925 million and adjusted earnings per share of $4.85-$5.10.
Encompass Health (NYSE: EHC) ha riportato risultati finanziari solidi nel primo trimestre 2025, con una crescita significativa nei principali indicatori. I ricavi netti operativi sono aumentati del 10,6% raggiungendo 1.455,4 milioni di dollari, trainati da una crescita del 6,3% nel totale delle dimissioni e da un incremento del 3,9% dei ricavi netti per paziente per dimissione.
Le performance dell’azienda hanno mostrato miglioramenti notevoli con un utile dalle operazioni continuative per azione diluita in aumento del 33,3% a 1,48 dollari, mentre l’utile rettificato per azione è cresciuto del 22,3% a 1,37 dollari. I flussi di cassa derivanti dalle attività operative sono aumentati del 20,9% a 288,6 milioni di dollari e l’EBITDA rettificato è salito del 14,9% a 313,6 milioni di dollari.
Nel corso del primo trimestre, EHC ha ampliato la propria capacità aprendo un nuovo ospedale con 40 posti letto e aggiungendo 25 posti letto alle strutture esistenti. Sulla base delle solide performance, l’azienda ha rivisto al rialzo le previsioni per l’intero anno 2025, prevedendo ricavi netti operativi tra 5.850 e 5.925 milioni di dollari e un utile rettificato per azione tra 4,85 e 5,10 dollari.
Encompass Health (NYSE: EHC) reportó sólidos resultados financieros en el primer trimestre de 2025, con un crecimiento significativo en métricas clave. Los ingresos netos operativos aumentaron un 10,6% hasta 1.455,4 millones de dólares, impulsados por un crecimiento del 6,3% en altas totales y un incremento del 3,9% en ingresos netos por paciente por alta.
El desempeño de la compañía mostró mejoras notables con un ingreso de operaciones continuas por acción diluida que subió un 33,3% hasta 1,48 dólares, mientras que las ganancias ajustadas por acción crecieron un 22,3% hasta 1,37 dólares. Los flujos de efectivo de actividades operativas aumentaron un 20,9% hasta 288,6 millones de dólares, y el EBITDA ajustado creció un 14,9% hasta 313,6 millones de dólares.
Durante el primer trimestre, EHC amplió su capacidad abriendo un nuevo hospital con 40 camas y añadiendo 25 camas a las instalaciones existentes. Basándose en el sólido desempeño, la compañía incrementó sus previsiones para todo el año 2025, proyectando ingresos netos operativos entre 5.850 y 5.925 millones de dólares y ganancias ajustadas por acción entre 4,85 y 5,10 dólares.
Encompass Health (NYSE: EHC)는 2025년 1분기에 주요 지표 전반에서 큰 성장을 기록하며 강력한 재무 실적을 발표했습니다. 순영업수익은 10.6% 증가한 14억 5,540만 달러를 기록했으며, 이는 총 퇴원 환자 수가 6.3% 증가하고 퇴원 환자 1인당 순환수익이 3.9% 상승한 데 힘입은 결과입니다.
회사의 실적은 계속영업이익 희석 주당순이익이 33.3% 증가한 1.48달러를 기록했고, 조정 주당순이익은 22.3% 증가한 1.37달러로 크게 개선되었습니다. 영업활동으로 인한 현금흐름은 20.9% 증가한 2억 8,860만 달러에 달했으며, 조정 EBITDA는 14.9% 상승한 3억 1,360만 달러를 기록했습니다.
1분기 동안 EHC는 신규 40병상 병원을 개설하고 기존 시설에 25병상을 추가하여 수용 능력을 확장했습니다. 강력한 실적을 바탕으로 회사는 2025년 전체 연간 가이던스를 상향 조정하여 순영업수익을 58억 5,000만~59억 2,500만 달러, 조정 주당순이익을 4.85~5.10달러로 전망하고 있습니다.
Encompass Health (NYSE : EHC) a publié de solides résultats financiers pour le premier trimestre 2025, avec une croissance significative sur les principaux indicateurs. Le chiffre d’affaires net d’exploitation a augmenté de 10,6 % pour atteindre 1 455,4 millions de dollars, porté par une hausse de 6,3 % du nombre total de sorties et une augmentation de 3,9 % du revenu net par patient et par sortie.
La performance de l’entreprise a montré des améliorations notables avec un résultat des opérations poursuivies par action diluée en hausse de 33,3 % à 1,48 dollar, tandis que le bénéfice ajusté par action a progressé de 22,3 % à 1,37 dollar. Les flux de trésorerie liés aux activités opérationnelles ont augmenté de 20,9 % pour atteindre 288,6 millions de dollars, et l’EBITDA ajusté a augmenté de 14,9 % pour atteindre 313,6 millions de dollars.
Au cours du premier trimestre, EHC a étendu sa capacité en ouvrant un nouvel hôpital de 40 lits et en ajoutant 25 lits aux établissements existants. Sur la base de ces solides performances, la société a revu à la hausse ses prévisions pour l’ensemble de l’année 2025, prévoyant un chiffre d’affaires net d’exploitation compris entre 5 850 et 5 925 millions de dollars et un bénéfice ajusté par action compris entre 4,85 et 5,10 dollars.
Encompass Health (NYSE: EHC) meldete starke Finanzergebnisse für das erste Quartal 2025 mit signifikantem Wachstum bei den wichtigsten Kennzahlen. Der Nettoumsatz stieg um 10,6 % auf 1.455,4 Millionen US-Dollar, was auf ein Wachstum der Gesamtentlassungen um 6,3 % und einen Anstieg der Nettopatientenerlöse pro Entlassung um 3,9 % zurückzuführen ist.
Die Leistung des Unternehmens zeigte deutliche Verbesserungen, wobei der Ertrag aus fortgeführten Geschäftsbereichen je verwässerter Aktie um 33,3 % auf 1,48 US-Dollar anstieg, während das bereinigte Ergebnis je Aktie um 22,3 % auf 1,37 US-Dollar wuchs. Die Cashflows aus operativer Tätigkeit stiegen um 20,9 % auf 288,6 Millionen US-Dollar, und das bereinigte EBITDA erhöhte sich um 14,9 % auf 313,6 Millionen US-Dollar.
Im ersten Quartal erweiterte EHC seine Kapazitäten durch die Eröffnung eines neuen Krankenhauses mit 40 Betten und die Hinzufügung von 25 Betten zu bestehenden Einrichtungen. Basierend auf der starken Leistung hat das Unternehmen seine Prognose für das Gesamtjahr 2025 angehoben und erwartet einen Nettoumsatz von 5.850 bis 5.925 Millionen US-Dollar sowie ein bereinigtes Ergebnis je Aktie von 4,85 bis 5,10 US-Dollar.
- Revenue increased 10.6% to $1,455.4 million
- Income from continuing operations per share up 33.3% to $1.48
- Adjusted EBITDA grew 14.9% to $313.6 million
- Operating cash flow increased 20.9% to $288.6 million
- Raised full-year 2025 guidance for revenue and earnings
- Total discharge growth of 6.3% with 4.4% same-store growth
- None.
Insights
Encompass Health reported strong Q1 results with double-digit growth across all metrics and raised full-year guidance, demonstrating operational excellence.
Encompass Health delivered exceptional financial performance in Q1 2025, with
What's particularly impressive is the operational leverage demonstrated in these results. While revenue grew at
Cash generation showed remarkable strength with operating cash flows increasing
Management's decision to raise full-year guidance signals confidence in continued momentum. The revised outlook now projects:
- Net operating revenue:
$5,850 million to$5,925 million (up from previous$5,800-$5,900 million ) - Adjusted EBITDA:
$1,185 million to$1,220 million (up from previous$1,160-$1,200 million ) - Adjusted EPS:
$4.85 to$5.10 (up from previous$4.67-$4.96 )
As the largest owner and operator of inpatient rehabilitation hospitals in the United States, Encompass Health's strong performance validates its operating strategy and market position. The CEO's statement that their "value proposition and operating strategy continue to be validated" and that they remain "highly optimistic about the long-term prospects" of the business aligns with the financial results and increased guidance.
Increases full-year guidance
Summary results
Growth | |||||||
Q1 2025 | Q1 2024 | Dollars | Percent | ||||
(In Millions, Except Per Share Data) | |||||||
Net operating revenue | $ 1,455.4 | $ 1,316.0 | $ 139.4 | 10.6 % | |||
Income from continuing operations attributable to | 1.48 | 1.11 | 0.37 | 33.3 % | |||
Adjusted earnings per share | 1.37 | 1.12 | 0.25 | 22.3 % | |||
Cash flows provided by operating activities | 288.6 | 238.8 | 49.8 | 20.9 % | |||
Adjusted EBITDA | 313.6 | 273.0 | 40.6 | 14.9 % | |||
Adjusted free cash flow | 222.4 | 167.6 | 54.8 | 32.7 % | |||
(Actual Amounts) | |||||||
Discharges | 64,985 | 61,111 | 6.3 % | ||||
Same-store discharge growth | 4.4 % | ||||||
Net patient revenue per discharge | $ 21,816 | $ 20,990 | 3.9 % | ||||
See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.
- Revenue growth of
10.6% resulted from increased discharges and pricing. Total discharges grew6.3% , inclusive of same-store growth of4.4% . Net patient revenue per discharge grew3.9% . - Cash flows provided by operating activities increased
20.9% to$288.6 million - Adjusted EBITDA increased
14.9% from increased revenue and expense leverage.
"We are very pleased with our first quarter performance, which drove a
2025 Guidance
The Company increased its full-year guidance as follows:
Full-Year 2025 Guidance | |||
Previous Guidance | Updated Guidance | ||
(In Millions, Except Per Share Data) | |||
Net operating revenue | |||
Adjusted EBITDA | |||
Adjusted earnings per share from continuing operations | |||
For considerations regarding the Company's 2025 guidance, see the supplemental information posted on the Company's website at http://investor.encompasshealth.com. See also the "Other information" section below for an explanation of why the Company does not provide guidance for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.
Earnings conference call and webcast
The Company will host an investor conference call at 9:00 a.m. Eastern Time on Friday, April 25, 2025 to discuss its results for the first quarter of 2025. For reference during the call, the Company will post certain supplemental information at http://investor.encompasshealth.com.
The conference call may be accessed by dialing 800 245-3047 and giving the conference ID EHCQ125. International callers should dial 203 518-9765 and give the same conference ID. Please call approximately ten minutes before the start of the call to ensure you are connected. The conference call will also be webcast live and will be available for on-line replay at http://investor.encompasshealth.com by clicking on an available link.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in
1 | Fortune © 2025 Fortune Media IP Limited. All rights reserved. Fortune® is a registered trademark and Fortune World's Most Admired Companies™ is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health. Forbes © 2024 Forbes Media LLC. All rights reserved. Used under license. | |||||||||||
Other information
The information in this press release is summarized and should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 (the "March 2025 Form 10-Q"), when filed, as well as the Company's Current Report on Form 8-K filed on April 24, 2025 (the "Q1 Earnings Form 8-K"), to which this press release is attached as Exhibit 99.1. In addition, the Company will post supplemental information today on its website at http://investor.encompasshealth.com for reference during its April 25, 2025 earnings call.
The financial data contained in the press release and supplemental information include non-GAAP financial measures, including the Company's adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow. Reconciliations to their most comparable GAAP measure, except with regard to non-GAAP guidance, are included below or in the Q1 Earnings Form 8-K. Readers are encouraged to review the "Note Regarding Presentation of Non-GAAP Financial Measures" included in the Q1 Earnings Form 8-K which provides further explanation and disclosure regarding the Company's use of these non-GAAP financial measures.
Excluding net operating revenues, the Company does not provide guidance on a GAAP basis because it is unable to predict, with reasonable certainty, the future impact of items that are deemed to be outside the control of the Company or otherwise not indicative of its ongoing operating performance. Such items include government, class action, and related settlements; professional fees—accounting, tax, and legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be not indicative of its ongoing operations. These items cannot be reasonably predicted and will depend on several factors, including industry and market conditions, and could be material to the Company's results computed in accordance with GAAP.
However, the following reasonably estimable GAAP measures for 2025 would be included in a reconciliation for Adjusted EBITDA if the other reconciling GAAP measures could be reasonably predicted:
- Interest expense and amortization of debt discounts and fees - approximately
$125 million - Amortization of debt-related items - approximately
$10 million
The Q1 Earnings Form 8-K and, when filed, the March 2025 Form 10-Q can be found on the Company's website at http://investor.encompasshealth.com and the SEC's website at www.sec.gov.
Encompass Health Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
(In Millions, Except Per Share Data) | |||
Net operating revenues | $ 1,455.4 | $ 1,316.0 | |
Operating expenses: | |||
Salaries and benefits | 762.3 | 711.6 | |
Other operating expenses | 217.5 | 203.9 | |
Occupancy costs | 14.9 | 14.0 | |
Supplies | 62.2 | 58.5 | |
General and administrative expenses | 52.3 | 50.2 | |
Depreciation and amortization | 79.2 | 70.3 | |
Total operating expenses | 1,188.4 | 1,108.5 | |
Interest expense and amortization of debt discounts and fees | 31.8 | 35.2 | |
Other income | (2.5) | (5.4) | |
Equity in net income of nonconsolidated affiliates | (0.9) | (0.7) | |
Income from continuing operations before income tax expense | 238.6 | 178.4 | |
Provision for income tax expense | 41.6 | 38.3 | |
Income from continuing operations | 197.0 | 140.1 | |
Loss from discontinued operations, net of tax | (0.5) | (1.3) | |
Net and comprehensive income | 196.5 | 138.8 | |
Less: Net and comprehensive income attributable to noncontrolling interests | (45.0) | (26.3) | |
Net and comprehensive income attributable to Encompass Health | $ 151.5 | $ 112.5 | |
Weighted average common shares outstanding: | |||
Basic | 100.5 | 99.8 | |
Diluted | 102.1 | 102.2 | |
Earnings per common share: | |||
Basic earnings per share attributable to Encompass Health common shareholders: | |||
Continuing operations | $ 1.50 | $ 1.13 | |
Discontinued operations | — | (0.01) | |
Net income | $ 1.50 | $ 1.12 | |
Diluted earnings per share attributable to Encompass Health common shareholders: | |||
Continuing operations | $ 1.48 | $ 1.11 | |
Discontinued operations | — | (0.01) | |
Net income | $ 1.48 | $ 1.10 | |
Amounts attributable to Encompass Health common shareholders: | |||
Income from continuing operations | $ 152.0 | $ 113.8 | |
Loss from discontinued operations, net of tax | (0.5) | (1.3) | |
Net income attributable to Encompass Health | $ 151.5 | $ 112.5 | |
Encompass Health Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) | |||
March 31, 2025 | December 31, 2024 | ||
(In Millions) | |||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 95.8 | $ 85.4 | |
Restricted cash | 27.0 | 37.7 | |
Accounts receivable | 623.4 | 598.8 | |
Other current assets | 164.7 | 165.0 | |
Total current assets | 910.9 | 886.9 | |
Property and equipment, net | 3,723.7 | 3,643.1 | |
Operating lease right-of-use assets | 218.7 | 203.7 | |
Goodwill | 1,284.0 | 1,284.0 | |
Intangible assets, net | 294.5 | 297.8 | |
Other long-term assets | 209.5 | 219.2 | |
Total assets | $ 6,641.3 | $ 6,534.7 | |
Liabilities and Shareholders' Equity | |||
Current liabilities: | |||
Current portion of long-term debt | $ 138.7 | $ 138.6 | |
Current operating lease liabilities | 26.7 | 26.3 | |
Accounts payable | 159.1 | 171.0 | |
Accrued expenses and other current liabilities | 531.5 | 505.1 | |
Total current liabilities | 856.0 | 841.0 | |
Long-term debt, net of current portion | 2,333.2 | 2,359.2 | |
Long-term operating lease liabilities | 204.2 | 189.7 | |
Deferred income tax liabilities | 114.0 | 105.2 | |
Other long-term liabilities | 196.3 | 190.4 | |
Total liabilities | 3,703.7 | 3,685.5 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 56.1 | 56.5 | |
Shareholders' equity: | |||
Encompass Health shareholders' equity | 2,159.1 | 2,067.0 | |
Noncontrolling interests | 722.4 | 725.7 | |
Total shareholders' equity | 2,881.5 | 2,792.7 | |
Total liabilities and shareholders' equity | $ 6,641.3 | $ 6,534.7 | |
Encompass Health Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
(In Millions) | |||
Cash flows from operating activities: | |||
Net income | $ 196.5 | $ 138.8 | |
Loss from discontinued operations, net of tax | 0.5 | 1.3 | |
Adjustments to reconcile net income to net cash provided by operating activities— | |||
Depreciation and amortization | 79.2 | 70.3 | |
Stock-based compensation | 9.5 | 9.3 | |
Deferred tax expense | 8.8 | 6.5 | |
Other, net | 2.3 | 14.9 | |
Change in assets and liabilities, net of acquisitions— | |||
Accounts receivable | (24.7) | (7.7) | |
Other assets | 0.7 | (16.0) | |
Accounts payable | (2.1) | (3.8) | |
Other liabilities | 18.6 | 25.9 | |
Net cash used in operating activities of discontinued operations | (0.7) | (0.7) | |
Total adjustments | 91.6 | 98.7 | |
Net cash provided by operating activities | 288.6 | 238.8 | |
Cash flows from investing activities: | |||
Purchases of property, equipment, and intangible assets | (163.1) | (139.4) | |
Proceeds from sale of restricted investments | 11.0 | 16.0 | |
Other, net | (6.4) | (6.3) | |
Net cash used in investing activities | (158.5) | (129.7) | |
Cash flows from financing activities: | |||
Borrowings on revolving credit facility | 60.0 | 50.0 | |
Payments on revolving credit facility | (80.0) | (50.0) | |
Taxes paid on behalf of employees for shares withheld | (19.8) | (12.1) | |
Contributions from noncontrolling interests of consolidated affiliates | — | 18.4 | |
Dividends paid on common stock | (18.0) | (15.9) | |
Distributions paid to noncontrolling interests of consolidated affiliates | (32.9) | (24.7) | |
Repurchases of common stock, including fees and expenses | (32.1) | — | |
Other, net | (7.6) | (6.3) | |
Net cash used in financing activities | (130.4) | (40.6) | |
(Decrease) increase in cash, cash equivalents, and restricted cash | (0.3) | 68.5 | |
Cash, cash equivalents, and restricted cash at beginning of period | 123.1 | 104.2 | |
Cash, cash equivalents, and restricted cash at end of period | $ 122.8 | $ 172.7 | |
Encompass Health Corporation and Subsidiaries Supplemental Information Earnings Per Share | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
(In Millions, Except Per Share Data) | |||
Adjusted EBITDA | $ 313.6 | $ 273.0 | |
Depreciation and amortization | (79.2) | (70.3) | |
Interest expense and amortization of debt discounts and fees | (31.8) | (35.2) | |
Stock-based compensation | (9.5) | (9.3) | |
Loss on disposal or impairment of assets | (0.2) | (13.7) | |
192.9 | 144.5 | ||
Items not indicative of ongoing operating performance: | |||
Change in fair market value of equity securities | 0.7 | 0.3 | |
Asset impairment impact on noncontrolling interests | — | 7.3 | |
Pre-tax income | 193.6 | 152.1 | |
Income tax expense | (41.6) | (38.3) | |
Income from continuing operations (1) | $ 152.0 | $ 113.8 | |
Basic shares | 100.5 | 99.8 | |
Diluted shares | 102.1 | 102.2 | |
Basic earnings per share (1) | $ 1.50 | $ 1.13 | |
Diluted earnings per share (1) | $ 1.48 | $ 1.11 | |
(1) | Income from continuing operations attributable to Encompass Health |
Encompass Health Corporation and Subsidiaries Supplemental Information Adjusted Earnings Per Share | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Earnings per share, as reported | $ 1.48 | $ 1.11 | |
Adjustments, net of tax: | |||
Asset impairment impact | — | 0.02 | |
Income tax adjustments | (0.12) | (0.01) | |
Adjusted earnings per share* | $ 1.37 | $ 1.12 | |
* Adjusted EPS may not sum due to rounding. |
Encompass Health Corporation and Subsidiaries Supplemental Information Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
(In Millions) | |||
Net cash provided by operating activities | $ 288.6 | $ 238.8 | |
Interest expense and amortization of debt discounts and fees | 31.8 | 35.2 | |
(Loss) gain on sale of investments, excluding impairments | (0.1) | 1.3 | |
Equity in net income of nonconsolidated affiliates | 0.9 | 0.7 | |
Net income attributable to noncontrolling interests in continuing operations | (45.0) | (26.3) | |
Amortization of debt-related items | (2.4) | (2.4) | |
Distributions from nonconsolidated affiliates | (0.5) | (0.8) | |
Current portion of income tax expense | 32.8 | 31.8 | |
Change in assets and liabilities | 7.5 | 1.6 | |
Cash used in operating activities of discontinued operations | 0.7 | 0.7 | |
Asset impairment impact on noncontrolling interests | — | (7.3) | |
Change in fair market value of equity securities | (0.7) | (0.3) | |
Adjusted EBITDA | $ 313.6 | $ 273.0 | |
Encompass Health Corporation and Subsidiaries Supplemental Information Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share | |||||||
For the Three Months Ended March 31, 2025 | |||||||
Adjustments | |||||||
As | Income Tax | Change in Fair | As | ||||
(In Millions, Except Per Share Amounts) | |||||||
Adjusted EBITDA* | $ 313.6 | $ — | $ — | $ 313.6 | |||
Depreciation and amortization | (79.2) | — | — | (79.2) | |||
Interest expense and amortization of debt discounts and fees | (31.8) | — | — | (31.8) | |||
Stock-based compensation | (9.5) | — | — | (9.5) | |||
Loss on disposal or impairment of assets | (0.2) | — | — | (0.2) | |||
Change in fair market value of equity securities | 0.7 | — | (0.7) | — | |||
Income from continuing operations before income tax expense | 193.6 | — | (0.7) | 192.9 | |||
Provision for income tax expense | (41.6) | (12.0) | 0.2 | (53.4) | |||
Income from continuing operations attributable to Encompass Health | $ 152.0 | $ (12.0) | $ (0.5) | $ 139.5 | |||
Diluted earnings per share from continuing operations** | $ 1.48 | $ (0.12) | $ — | $ 1.37 | |||
Diluted shares used in calculation | 102.1 | ||||||
* See reconciliation of net income to Adjusted EBITDA. |
** Adjusted EPS may not sum across due to rounding. |
Encompass Health Corporation and Subsidiaries Supplemental Information Reconciliation of Income from Continuing Operations Attributable to Encompass Health per Diluted Share to Adjusted Earnings Per Share | |||||||||
For the Three Months Ended March 31, 2024 | |||||||||
Adjustments | |||||||||
As | Asset | Income Tax | Change in Fair | As | |||||
(In Millions, Except Per Share Amounts) | |||||||||
Adjusted EBITDA* | $ 273.0 | $ — | $ — | $ — | $ 273.0 | ||||
Depreciation and amortization | (70.3) | — | — | — | (70.3) | ||||
Interest expense and amortization of debt discounts and fees | (35.2) | — | — | — | (35.2) | ||||
Stock-based compensation | (9.3) | — | — | — | (9.3) | ||||
Loss on disposal or impairment of assets | (13.7) | 10.4 | — | — | (3.3) | ||||
Change in fair market value of equity securities | 0.3 | — | — | (0.3) | — | ||||
Asset impairment impact on noncontrolling interests | 7.3 | (7.3) | — | — | — | ||||
Income from continuing operations before income tax expense | 152.1 | 3.1 | — | (0.3) | 154.9 | ||||
Provision for income tax expense | (38.3) | (1.3) | (0.6) | 0.1 | (40.1) | ||||
Income from continuing operations attributable to Encompass Health | $ 113.8 | $ 1.8 | $ (0.6) | $ (0.2) | $ 114.8 | ||||
Diluted earnings per share from continuing operations** | $ 1.11 | $ 0.02 | $ (0.01) | $ — | $ 1.12 | ||||
Diluted shares used in calculation | 102.2 | ||||||||
* See reconciliation of net income to Adjusted EBITDA. |
** Adjusted EPS may not sum across due to rounding. |
Encompass Health Corporation and Subsidiaries Supplemental Information Reconciliation of Net Income to Adjusted EBITDA | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
(In Millions) | |||
Net income | $ 196.5 | $ 138.8 | |
Loss from discontinued operations, net of tax, attributable to Encompass Health | 0.5 | 1.3 | |
Net income attributable to noncontrolling interests included in continuing operations | (45.0) | (26.3) | |
Provision for income tax expense | 41.6 | 38.3 | |
Interest expense and amortization of debt discounts and fees | 31.8 | 35.2 | |
Depreciation and amortization | 79.2 | 70.3 | |
Loss on disposal or impairment of assets | 0.2 | 13.7 | |
Stock-based compensation | 9.5 | 9.3 | |
Change in fair market value of equity securities | (0.7) | (0.3) | |
Asset impairment impact on noncontrolling interests | — | (7.3) | |
Adjusted EBITDA | $ 313.6 | $ 273.0 | |
Encompass Health Corporation and Subsidiaries Supplemental Information Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
(In Millions) | |||
Net cash provided by operating activities | $ 288.6 | $ 238.8 | |
Impact of discontinued operations | 0.7 | 0.7 | |
Net cash provided by operating activities of continuing operations | 289.3 | 239.5 | |
Capital expenditures for maintenance | (34.0) | (38.7) | |
Distributions paid to noncontrolling interests of consolidated affiliates | (32.9) | (24.7) | |
Items not indicative of ongoing operating performance: | |||
Transaction costs and related liabilities | — | (8.5) | |
Adjusted free cash flow | $ 222.4 | $ 167.6 | |
For the three months ended March 31, 2025, net cash used in investing activities was
For the three months ended March 31, 2024, net cash used in investing activities was
Encompass Health Corporation and Subsidiaries
Forward-Looking Statements
Statements contained in this press release and the supplemental information which are not historical facts, such as those relating to the business, strategy, outlook, growth targets and guidance considerations, dividend strategies, effective income tax rates, cost trends, legislative and regulatory developments or their impacts, financial guidance, ability to return value to shareholders, projected capital expenditures, acquisition opportunities, development projects, addressable market size, other balance sheet and cash flow plans, 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, infectious disease outbreak, including the speed, depth, geographic reach and duration of its spread, which could decrease our patient volumes and revenues and lead to staffing and supply shortages and associated cost increases; Encompass Health's infectious disease prevention and control efforts; the demand for Encompass Health's services, including based on any downturns in the economy, consumer confidence, or the capital markets; the price of Encompass Health's common stock as it affects Encompass Health's willingness and ability to repurchase shares and the financial and accounting effects of any repurchases; 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, in acquired operations; Encompass Health's ability to attract and retain key management personnel; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's or its vendors' or partners' information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information or inability to provide patient care because of system unavailability; Encompass Health's ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures consistent with its growth strategy; Encompass Health's ability to realize construction time and cost savings from prefabrication of hospitals; increases in Medicare audit activity, including increased use of sampling and extrapolation, resulting in additional unpaid reimbursement claims and an increase in the backlog of appealed claims denials; 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; changes in the regulation of the healthcare industry at either or both of the federal and state levels, including as part of national healthcare reform and deficit reduction and Encompass Health's ability to adapt operations to those changes, including in connection with the CMS inpatient rehabilitation review choice demonstration project; competitive pressures in the healthcare industry and Encompass Health's response thereto; Encompass Health's ability to obtain and retain favorable arrangements with third-party payors; Encompass Health's ability to control costs, particularly labor and employee benefit costs, including group medical expenses; adverse effects resulting from coverage determinations made by Medicare Administrative Contractors regarding its Medicare reimbursement claims and lengthening delays in Encompass Health's ability to recover improperly denied claims through the administrative appeals process on a timely basis; Encompass Health's ability to adapt to changes in the healthcare delivery system, including value-based purchasing and involvement in coordinated care initiatives or programs that may arise with its referral sources; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages, which may be worsened by infectious disease outbreaks, and the impact on Encompass Health's labor expenses from potential union activity, staffing shortages, and competitive compensation practices; general conditions in the economy and capital markets, including any instability or uncertainty related to trade war, armed conflict or an act of terrorism, governmental impasse over approval of
Media Contact
Polly Manuel, 205 969-4532
polly.manuel@encompasshealth.com
Investor Relations Contact
Mark Miller, 205 970-5860
mark.miller@encompasshealth.com
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SOURCE Encompass Health Corp.
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