附录99.1
| 媒体联络方式 | 2024年10月28日 | ||||
| Polly Manuel, 205 969-4532 | |||||
| polly.manuel@encompasshealth.com | |||||
| 投资人关系联系 | |||||
| Mark Miller, 205 970-5860 | |||||
| mark.miller@encompasshealth.com | |||||
Encompass Health公布2024年第三季度业绩报告
增加全年指引
阿拉巴马伯明翰 - encompass health corporation（纽交所: EHC）是美国最大的住院康复医院拥有者和营运商，今天报告截至2024年9月30日第三季度运营业绩。
总结结果
| 成长 | |||||||||||||||||||||||
| Q3 2024 | Q3 2023 | 美元 | 百分比 | ||||||||||||||||||||
| (以百万为单位，除每股数据外) | |||||||||||||||||||||||
| 营业收入净额 | $ | 1,351.0 | $ | 1,206.9 | $ | 144.1 | 11.9 | % | |||||||||||||||
归属于Encompass Health的继续营运收入每股稀释后 | 1.07 | 0.85 | 0.22 | 25.9 | % | ||||||||||||||||||
| 调整后每股盈利（基本）($) | 1.03 | 0.86 | 0.17 | 19.8 | % | ||||||||||||||||||
营业活动产生的现金流入主要取决于我们资产占有率、租金 | 267.8 | 215.2 | 52.6 | 24.4 | % | ||||||||||||||||||
| 调整后的税前利润减除折旧及摊销后的费用 | 269.3 | 237.5 | 31.8 | 13.4 | % | ||||||||||||||||||
| 自由现金流 | 189.7 | 149.3 | 40.4 | 27.1 | % | ||||||||||||||||||
| （实际金额） | |||||||||||||||||||||||
| 出院 | 62,715 | 57,665 | 8.8 | % | |||||||||||||||||||
| 同店出院增长 | 6.8 | % | |||||||||||||||||||||
| 每次出院的净患者营业收入 | $ | 20,987 | $ | 20,472 | 2.5 | % | |||||||||||||||||
请参阅附加的补充信息，以了解非通用会计原则衡量标准的计算和与对应的最可比通用会计原则衡量标准的和解。
•营业收入增长11.9%，主要是由于出院量增长了8.8%，包括同店增长6.8%。每次出院的净收入增长了2.5%。
•营运活动产生的现金流增加了24.4％，达到26780万美元，主要是由于净利润增加，部分抵销了较高的现金纳税款。
•调整后的EBITDA增加了13.4%，主要来自于营业收入增加。
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「我们对第三季的表现感到非常满意，强劲的出院增长促使营业收入增加11.9％，调整后的EBITDA增加13.4％，」Encompass Health总裁兼首席执行官Mark Tarr表示。
「我们的团队在飓风海伦和米尔顿带来的极具挑战性条件下表现卓越，优先考虑病人安全和业务连续性。我们感谢我们的员工，因为他们的韧性和奉献，为病人提供最优质的护理。」
2024年度指引
公司将全年指引提高如下：
| 2024年全年指引 | |||||||||||
| 之前的指引 | 更新的指引 | ||||||||||
| （单位：百万美元，除每股数据外） | |||||||||||
| 营业收入净额 | $5,275 到 $5,350 | $5,325 到 $5,375 | |||||||||
| 调整后的税前利润减除折旧及摊销后的费用 | 1,040 到 1,075 美元 | 1,070 到 1,090 美元 | |||||||||
| 调整后每股盈利来自Encompass Health的持续营运 | 3.97 到 4.22 美元 | 4.19 到 4.33 美元 | |||||||||
有关公司2024年预测的考量，请查看公司网站 http://investor.encompasshealth.com 上张贴的补充资讯。另请参见下方的“其他资讯”部分，了解公司为何不提供调整后EBITDA和调整后每股收益的可比GAAP指标预测。
业绩发布会和网络研讨会
公司将于2024年10月29日星期二上午10:00（东部时间）举行投资者电话会议，讨论2024年第三季度的业绩。为了方便通话期间参考，公司将在http://investor.encompasshealth.com上发布特定补充信息。
参加会议看涨者，请拨打800 343-4849并提供EHCQ324会议ID。国际拨打者应拨打203 518-9848并提供相同的会议ID。请于开始控制项前约十分钟拨打，以确保您已连线。 会议也将进行网路直播，并将透过在 http://investor.encompasshealth.com 点击可用连结来进行在线重播。
关于encompass health
Encompass Health（纽交所：EHC）是美国最大的住院康复医院的所有者和运营商。公司的国家布局包括38个州和波多黎各的165家医院，为从重伤或严重疾病中康复的患者提供高质量、充满爱心的康复护理，并利用先进科技和创新治疗方法来最大程度地提升康复效果。Encompass Health被评为《财富》世界上最受瞩目的公司之一和《贝克医院评论》医疗保健业最佳工作场所150强。欲了解更多信息，请访问encompasshealth.com或在我们的新闻中心、Twitter、Instagram和Facebook关注我们。
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其他资讯
此新闻稿中的信息已被总结，应与公司截至2024年9月30日的第10-Q表格（“2024年9月第10-Q表格”）一起阅读，以及公司于2024年10月28日提交的第8-k表格（“Q3业绩第8-K表格”），本新闻稿作为附件附录在其中。此外，该公司将于今天在其网站http://investor.encompasshealth.com上发布补充资讯，以供参考，在2024年10月29日业绩会期间。
新闻稿和附加资讯中包含非依据通用会计原则的财务数据，包括公司的调整每股收益、杠杆比率、调整后净额利息、调整后自由现金流等财务指标。除非是关于非依据通用会计原则的指引，否则将它们与最相近的通用会计原则的措施进行调和，并列于Q3季度盈利表8-k中。建议读者查看Q3季度盈利表8-k中包含的“关于非依据通用会计原则财务指标呈现的注意事项”，以便进一步了解和披露有关公司使用这些非依据通用会计原则财务指标的说明。
公司在除去净营运收入的情况下，并不根据GAAP提供指引，因为它无法合理确定那些被认为不在公司控制范围内或其他方面不代表其持续营运表现的项目将对未来产生何种影响。这些项目包括政府、集体诉讼和相关和解；专业费用—会计、税务和法律；按市价调整的股权增值权；与对冲工具相关的收益或亏损；偿还债务早期损失；对其所得税条款进行的调整（如估值撤销调整和所得税索赔的和解）；与企业和设施重组有关的项目；以及公司认为不代表其持续营运的某些其他项目。这些项目无法合理预测，并将取决于多种因素，包括行业和市场条件，可能对公司根据GAAP计算的结果产生重大影响。
然而，如果其他调整GAAP措施能够合理预测，则2024年以下合理可估计的GAAP措施将包括在调整后的EBITDA对帐中。
•利息费用和折价及费用摊销 - 约14000万美元
•债务相关项目的摊销 - 约1000万美元
Q3盈利8-k表格和，当提交后，2024年9月份的10-Q表格可在公司网站http://investor.encompasshealth.com和SEC网站www.sec.gov找到。
3 | ||||||||
Encompass Health Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (In Millions, Except Per Share Data) | |||||||||||||||||||||||
| Net operating revenues | $ | 1,351.0 | $ | 1,206.9 | $ | 3,968.2 | $ | 3,554.4 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Salaries and benefits | 732.1 | 658.6 | 2,144.2 | 1,923.8 | |||||||||||||||||||
| Other operating expenses | 202.4 | 183.7 | 596.2 | 534.3 | |||||||||||||||||||
| Occupancy costs | 14.4 | 14.2 | 42.6 | 42.3 | |||||||||||||||||||
| Supplies | 60.6 | 53.9 | 176.7 | 159.7 | |||||||||||||||||||
| General and administrative expenses | 54.0 | 49.8 | 154.7 | 148.6 | |||||||||||||||||||
| Depreciation and amortization | 78.4 | 67.3 | 221.6 | 203.8 | |||||||||||||||||||
| Total operating expenses | 1,141.9 | 1,027.5 | 3,336.0 | 3,012.5 | |||||||||||||||||||
| Loss on early extinguishment of debt | 0.4 | — | 0.4 | — | |||||||||||||||||||
| Interest expense and amortization of debt discounts and fees | 34.9 | 35.9 | 104.4 | 108.6 | |||||||||||||||||||
| Other income | (9.3) | (0.5) | (18.0) | (6.8) | |||||||||||||||||||
| Equity in net income of nonconsolidated affiliates | (0.7) | (1.0) | (2.8) | (2.3) | |||||||||||||||||||
| Income from continuing operations before income tax expense | 183.8 | 145.0 | 548.2 | 442.4 | |||||||||||||||||||
| Provision for income tax expense | 36.0 | 30.3 | 112.6 | 95.0 | |||||||||||||||||||
| Income from continuing operations | 147.8 | 114.7 | 435.6 | 347.4 | |||||||||||||||||||
| Loss from discontinued operations, net of tax | (0.7) | (1.3) | (3.2) | (3.5) | |||||||||||||||||||
| Net and comprehensive income | 147.1 | 113.4 | 432.4 | 343.9 | |||||||||||||||||||
| Less: Net and comprehensive income attributable to noncontrolling interests | (38.9) | (28.1) | (97.6) | (79.5) | |||||||||||||||||||
| Net and comprehensive income attributable to Encompass Health | $ | 108.2 | $ | 85.3 | $ | 334.8 | $ | 264.4 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 99.9 | 99.5 | 99.9 | 99.5 | |||||||||||||||||||
| Diluted | 102.1 | 101.4 | 102.2 | 101.1 | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic earnings per share attributable to Encompass Health common shareholders: | |||||||||||||||||||||||
Continuing operations | $ | 1.09 | $ | 0.86 | $ | 3.36 | $ | 2.68 | |||||||||||||||
Discontinued operations | (0.01) | (0.01) | (0.03) | (0.04) | |||||||||||||||||||
Net income | $ | 1.08 | $ | 0.85 | $ | 3.33 | $ | 2.64 | |||||||||||||||
Diluted earnings per share attributable to Encompass Health common shareholders: | |||||||||||||||||||||||
Continuing operations | $ | 1.07 | $ | 0.85 | $ | 3.31 | $ | 2.65 | |||||||||||||||
Discontinued operations | (0.01) | (0.01) | (0.03) | (0.03) | |||||||||||||||||||
Net income | $ | 1.06 | $ | 0.84 | $ | 3.28 | $ | 2.62 | |||||||||||||||
| Amounts attributable to Encompass Health common shareholders: | |||||||||||||||||||||||
| Income from continuing operations | $ | 108.9 | $ | 86.6 | $ | 338.0 | $ | 267.9 | |||||||||||||||
| Loss from discontinued operations, net of tax | (0.7) | (1.3) | (3.2) | (3.5) | |||||||||||||||||||
| Net income attributable to Encompass Health | $ | 108.2 | $ | 85.3 | $ | 334.8 | $ | 264.4 | |||||||||||||||
4 | ||||||||
Encompass Health Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
| September 30, 2024 | December 31, 2023 | ||||||||||
| (In Millions) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 147.8 | $ | 69.1 | |||||||
| Restricted cash | 51.1 | 35.1 | |||||||||
| Accounts receivable | 576.4 | 611.6 | |||||||||
| Other current assets | 158.6 | 126.0 | |||||||||
| Total current assets | 933.9 | 841.8 | |||||||||
| Property and equipment, net | 3,523.7 | 3,301.0 | |||||||||
| Operating lease right-of-use assets | 209.7 | 208.5 | |||||||||
| Goodwill | 1,284.0 | 1,281.3 | |||||||||
| Intangible assets, net | 296.2 | 278.2 | |||||||||
| Other long-term assets | 210.9 | 191.6 | |||||||||
| Total assets | $ | 6,458.4 | $ | 6,102.4 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | 233.0 | $ | 24.8 | |||||||
| Current operating lease liabilities | 26.5 | 24.1 | |||||||||
| Accounts payable | 170.3 | 170.0 | |||||||||
| Accrued expenses and other current liabilities | 467.6 | 437.5 | |||||||||
| Total current liabilities | 897.4 | 656.4 | |||||||||
| Long-term debt, net of current portion | 2,344.5 | 2,687.8 | |||||||||
| Long-term operating lease liabilities | 195.5 | 196.1 | |||||||||
| Deferred income tax liabilities | 97.1 | 87.0 | |||||||||
| Other long-term liabilities | 198.3 | 177.9 | |||||||||
| Total liabilities | 3,732.8 | 3,805.2 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interests | 56.5 | 42.0 | |||||||||
| Shareholders’ equity: | |||||||||||
| Encompass Health shareholders’ equity | 1,959.8 | 1,647.5 | |||||||||
| Noncontrolling interests | 709.3 | 607.7 | |||||||||
| Total shareholders’ equity | 2,669.1 | 2,255.2 | |||||||||
| Total liabilities and shareholders’ equity | $ | 6,458.4 | $ | 6,102.4 | |||||||
5 | ||||||||
Encompass Health Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| (In Millions) | |||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 432.4 | $ | 343.9 | |||||||
| Loss from discontinued operations, net of tax | 3.2 | 3.5 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities— | |||||||||||
| Depreciation and amortization | 221.6 | 203.8 | |||||||||
| Stock-based compensation | 35.8 | 37.2 | |||||||||
| Deferred tax expense (benefit) | 2.1 | (2.9) | |||||||||
| Other, net | 13.5 | 10.0 | |||||||||
| Change in assets and liabilities, net of acquisitions— | |||||||||||
| Accounts receivable | 29.1 | 20.7 | |||||||||
| Other assets | (43.3) | (4.1) | |||||||||
| Accounts payable | 1.4 | (0.2) | |||||||||
| Accrued payroll | (2.6) | 24.1 | |||||||||
| Accrued interest payable | (19.2) | (19.1) | |||||||||
| Other liabilities | 53.7 | 37.5 | |||||||||
| Net cash used in operating activities of discontinued operations | (3.7) | (4.6) | |||||||||
| Total adjustments | 288.4 | 302.4 | |||||||||
| Net cash provided by operating activities | 724.0 | 649.8 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, equipment, and intangible assets | (443.8) | (371.4) | |||||||||
| Purchase of restricted investments | (20.0) | (21.1) | |||||||||
| Proceeds from sale of restricted investments | 17.9 | 7.0 | |||||||||
| Other, net | (3.7) | (9.2) | |||||||||
| Net cash used in investing activities | (449.6) | (394.7) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Principal borrowings on notes | 15.0 | 20.0 | |||||||||
| Principal payments on debt, including pre-payments | (153.4) | (6.3) | |||||||||
| Borrowings on revolving credit facility | 50.0 | 60.0 | |||||||||
| Payments on revolving credit facility | (50.0) | (115.0) | |||||||||
| Principal payments under finance lease obligations | (16.2) | (35.9) | |||||||||
| Taxes paid on behalf of employees for shares withheld | (12.1) | (8.1) | |||||||||
| Contributions from noncontrolling interests of consolidated affiliates | 139.7 | 54.7 | |||||||||
| Dividends paid on common stock | (45.8) | (45.5) | |||||||||
| Distributions paid to noncontrolling interests of consolidated affiliates | (85.5) | (91.9) | |||||||||
| Repurchases of common stock, including fees and expenses | (23.6) | — | |||||||||
| Other, net | 2.2 | 0.7 | |||||||||
| Net cash used in financing activities | (179.7) | (167.3) | |||||||||
| Increase in cash, cash equivalents, and restricted cash | 94.7 | 87.8 | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 104.2 | 53.4 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 198.9 | $ | 141.2 | |||||||
6 | ||||||||
Encompass Health Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| (In Millions) | |||||||||||
| Reconciliation of Cash, Cash Equivalents, and Restricted Cash | |||||||||||
| Cash and cash equivalents at beginning of period | $ | 69.1 | $ | 21.8 | |||||||
Restricted cash at beginning of period | 35.1 | 31.6 | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | $ | 104.2 | $ | 53.4 | |||||||
Cash and cash equivalents at end of period | $ | 147.8 | $ | 99.7 | |||||||
Restricted cash at end of period | 51.1 | 41.5 | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 198.9 | $ | 141.2 | |||||||
7 | ||||||||
Encompass Health Corporation and Subsidiaries
Supplemental Information
Earnings Per Share
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (In Millions, Except Per Share Data) | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 269.3 | $ | 237.5 | $ | 814.1 | $ | 716.1 | |||||||||||||||
Depreciation and amortization | (78.4) | (67.3) | (221.6) | (203.8) | |||||||||||||||||||
Interest expense and amortization of debt discounts and fees | (34.9) | (35.9) | (104.4) | (108.6) | |||||||||||||||||||
| Stock-based compensation | (12.9) | (13.7) | (35.8) | (37.2) | |||||||||||||||||||
| Loss on disposal or impairment of assets | (0.6) | (2.2) | (11.3) | (3.7) | |||||||||||||||||||
| 142.5 | 118.4 | 441.0 | 362.8 | ||||||||||||||||||||
| Items not indicative of ongoing operating performance: | |||||||||||||||||||||||
| Loss on early extinguishment of debt | (0.4) | — | (0.4) | — | |||||||||||||||||||
| State regulatory change impact on noncontrolling interests | — | — | — | 2.2 | |||||||||||||||||||
Change in fair market value of equity securities | 2.8 | (1.5) | 2.7 | (2.1) | |||||||||||||||||||
| Asset impairment impact on noncontrolling interests | — | — | 7.3 | — | |||||||||||||||||||
| Pre-tax income | 144.9 | 116.9 | 450.6 | 362.9 | |||||||||||||||||||
Income tax expense | (36.0) | (30.3) | (112.6) | (95.0) | |||||||||||||||||||
Income from continuing operations (1) | $ | 108.9 | $ | 86.6 | $ | 338.0 | $ | 267.9 | |||||||||||||||
| Basic shares | 99.9 | 99.5 | 99.9 | 99.5 | |||||||||||||||||||
| Diluted shares | 102.1 | 101.4 | 102.2 | 101.1 | |||||||||||||||||||
Basic earnings per share (1) | $ | 1.09 | $ | 0.86 | $ | 3.36 | $ | 2.68 | |||||||||||||||
Diluted earnings per share (1) | $ | 1.07 | $ | 0.85 | $ | 3.31 | $ | 2.65 | |||||||||||||||
(1)Income from continuing operations attributable to Encompass Health
8 | ||||||||
Encompass Health Corporation and Subsidiaries
Supplemental Information
Adjusted Earnings Per Share
| Q3 | 9 Months | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Earnings per share, as reported | $ | 1.07 | $ | 0.85 | $ | 3.31 | $ | 2.65 | |||||||||||||||
| Adjustments, net of tax: | |||||||||||||||||||||||
| Asset impairment impact | — | — | 0.02 | — | |||||||||||||||||||
Income tax adjustments | (0.02) | — | (0.05) | — | |||||||||||||||||||
| State regulatory change impact | — | — | — | 0.03 | |||||||||||||||||||
Change in fair market value of equity securities | (0.02) | 0.01 | (0.02) | 0.02 | |||||||||||||||||||
Adjusted earnings per share* | $ | 1.03 | $ | 0.86 | $ | 3.26 | $ | 2.69 | |||||||||||||||
* Adjusted EPS may not sum due to rounding.
9 | ||||||||
Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 267.8 | $ | 215.2 | $ | 724.0 | $ | 649.8 | |||||||||||||||
Interest expense and amortization of debt discounts and fees | 34.9 | 35.9 | 104.4 | 108.6 | |||||||||||||||||||
| Gain (loss) on sale of investments, excluding impairments | 4.6 | (2.7) | 5.8 | (0.9) | |||||||||||||||||||
Equity in net income of nonconsolidated affiliates | 0.7 | 1.0 | 2.8 | 2.3 | |||||||||||||||||||
Net income attributable to noncontrolling interests in continuing operations | (38.9) | (28.1) | (97.6) | (79.5) | |||||||||||||||||||
Amortization of debt-related items | (2.4) | (2.4) | (7.3) | (7.1) | |||||||||||||||||||
Distributions from nonconsolidated affiliates | (1.1) | (0.4) | (3.1) | (0.6) | |||||||||||||||||||
| Current portion of income tax expense | 38.1 | 33.5 | 110.5 | 97.9 | |||||||||||||||||||
| Change in assets and liabilities | (32.5) | (17.5) | (19.1) | (58.9) | |||||||||||||||||||
| Cash used in operating activities of discontinued operations | 1.0 | 1.7 | 3.7 | 4.6 | |||||||||||||||||||
| State regulatory change impact on noncontrolling interests | — | — | — | (2.2) | |||||||||||||||||||
| Asset impairment impact on noncontrolling interests | — | — | (7.3) | — | |||||||||||||||||||
| Change in fair market value of equity securities | (2.8) | 1.5 | (2.7) | 2.1 | |||||||||||||||||||
| Other | (0.1) | (0.2) | — | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 269.3 | $ | 237.5 | $ | 814.1 | $ | 716.1 | |||||||||||||||
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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 September 30, 2024 | |||||||||||||||||||||||||||||
| Adjustments | |||||||||||||||||||||||||||||
| As Reported | Loss on Early Extinguishment of Debt | Income Tax Adjustments | Change in Fair Market Value of Equity Securities | As Adjusted | |||||||||||||||||||||||||
| (In Millions, Except Per Share Amounts) | |||||||||||||||||||||||||||||
| Adjusted EBITDA* | $ | 269.3 | $ | — | $ | — | $ | — | $ | 269.3 | |||||||||||||||||||
| Depreciation and amortization | (78.4) | — | — | — | (78.4) | ||||||||||||||||||||||||
Interest expense and amortization of debt discounts and fees | (34.9) | — | — | — | (34.9) | ||||||||||||||||||||||||
| Stock-based compensation | (12.9) | — | — | — | (12.9) | ||||||||||||||||||||||||
| Loss on disposal or impairment of assets | (0.6) | — | — | — | (0.6) | ||||||||||||||||||||||||
| Loss on early extinguishment of debt | (0.4) | 0.4 | — | — | — | ||||||||||||||||||||||||
Change in fair market value of equity securities | 2.8 | — | — | (2.8) | — | ||||||||||||||||||||||||
Income from continuing operations before income tax expense | 144.9 | 0.4 | — | (2.8) | 142.5 | ||||||||||||||||||||||||
| Provision for income tax expense | (36.0) | (0.1) | (2.1) | 0.7 | (37.5) | ||||||||||||||||||||||||
Income from continuing operations attributable to Encompass Health | $ | 108.9 | $ | 0.3 | $ | (2.1) | $ | (2.1) | $ | 105.0 | |||||||||||||||||||
| Diluted earnings per share from continuing operations** | $ | 1.07 | $ | — | $ | (0.02) | $ | (0.02) | $ | 1.03 | |||||||||||||||||||
| Diluted shares used in calculation | 102.1 | ||||||||||||||||||||||||||||
* Reconciliation to GAAP provided on page 10
** Adjusted EPS may not sum across due to rounding.
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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 September 30, 2023 | |||||||||||||||||||||||
| Adjustments | |||||||||||||||||||||||
| As Reported | Income Tax Adjustments | Change in Fair Market Value of Equity Securities | As Adjusted | ||||||||||||||||||||
| (In Millions, Except Per Share Amounts) | |||||||||||||||||||||||
| Adjusted EBITDA* | $ | 237.5 | $ | — | $ | — | $ | 237.5 | |||||||||||||||
| Depreciation and amortization | (67.3) | — | — | (67.3) | |||||||||||||||||||
Interest expense and amortization of debt discounts and fees | (35.9) | — | — | (35.9) | |||||||||||||||||||
| Stock-based compensation | (13.7) | — | — | (13.7) | |||||||||||||||||||
| Loss on disposal or impairment of assets | (2.2) | — | — | (2.2) | |||||||||||||||||||
Change in fair market value of equity securities | (1.5) | — | 1.5 | — | |||||||||||||||||||
Income from continuing operations before income tax expense | 116.9 | — | 1.5 | 118.4 | |||||||||||||||||||
| Provision for income tax expense | (30.3) | (0.5) | (0.3) | (31.1) | |||||||||||||||||||
Income from continuing operations attributable to Encompass Health | $ | 86.6 | $ | (0.5) | $ | 1.2 | $ | 87.3 | |||||||||||||||
Diluted earnings per share from continuing operations** | $ | 0.85 | $ | — | $ | 0.01 | $ | 0.86 | |||||||||||||||
| Diluted shares used in calculation | 101.4 | ||||||||||||||||||||||
* Reconciliation to GAAP provided on page 10
** Adjusted EPS may not sum across due to rounding.
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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 Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
| Adjustments | |||||||||||||||||||||||||||||||||||
| As Reported | Asset Impairment Impact | Loss on Early Extinguishment of Debt | Income Tax Adjustments | Change in Fair Market Value of Equity Securities | As Adjusted | ||||||||||||||||||||||||||||||
| (In Millions, Except Per Share Amounts) | |||||||||||||||||||||||||||||||||||
| Adjusted EBITDA* | $ | 814.1 | $ | — | $ | — | $ | — | $ | — | $ | 814.1 | |||||||||||||||||||||||
| Depreciation and amortization | (221.6) | — | — | — | — | (221.6) | |||||||||||||||||||||||||||||
Interest expense and amortization of debt discounts and fees | (104.4) | — | — | — | — | (104.4) | |||||||||||||||||||||||||||||
| Stock-based compensation | (35.8) | — | — | — | — | (35.8) | |||||||||||||||||||||||||||||
| Loss on disposal or impairment of assets | (11.3) | 10.4 | — | — | — | (0.9) | |||||||||||||||||||||||||||||
| Loss on early extinguishment of debt | (0.4) | — | 0.4 | — | — | — | |||||||||||||||||||||||||||||
Change in fair market value of equity securities | 2.7 | — | — | — | (2.7) | — | |||||||||||||||||||||||||||||
| Asset impairment impact on noncontrolling interests | 7.3 | (7.3) | — | — | — | — | |||||||||||||||||||||||||||||
Income from continuing operations before income tax expense | 450.6 | 3.1 | 0.4 | — | (2.7) | 451.4 | |||||||||||||||||||||||||||||
| Provision for income tax expense | (112.6) | (1.3) | (0.1) | (5.1) | 0.7 | (118.4) | |||||||||||||||||||||||||||||
Income from continuing operations attributable to Encompass Health | $ | 338.0 | $ | 1.8 | $ | 0.3 | $ | (5.1) | $ | (2.0) | $ | 333.0 | |||||||||||||||||||||||
| Diluted earnings per share from continuing operations** | $ | 3.31 | $ | 0.02 | $ | — | $ | (0.05) | $ | (0.02) | $ | 3.26 | |||||||||||||||||||||||
| Diluted shares used in calculation | 102.2 | ||||||||||||||||||||||||||||||||||
* Reconciliation to GAAP provided on page 10
** Adjusted EPS may not sum across due to rounding.
13 | ||||||||
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 Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||
| Adjustments | |||||||||||||||||||||||||||||
| As Reported | State Regulatory Change Impact | Income Tax Adjustments | Change in Fair Market Value of Equity Securities | As Adjusted | |||||||||||||||||||||||||
| (In Millions, Except Per Share Amounts) | |||||||||||||||||||||||||||||
| Adjusted EBITDA* | $ | 716.1 | $ | — | $ | — | $ | — | $ | 716.1 | |||||||||||||||||||
| Depreciation and amortization | (203.8) | 6.1 | — | — | (197.7) | ||||||||||||||||||||||||
Interest expense and amortization of debt discounts and fees | (108.6) | — | — | — | (108.6) | ||||||||||||||||||||||||
| Stock-based compensation | (37.2) | — | — | — | (37.2) | ||||||||||||||||||||||||
| Loss on disposal or impairment of assets | (3.7) | — | — | — | (3.7) | ||||||||||||||||||||||||
| State regulatory change impact on noncontrolling interests | 2.2 | (2.2) | — | — | — | ||||||||||||||||||||||||
Change in fair market value of equity securities | (2.1) | — | — | 2.1 | — | ||||||||||||||||||||||||
Income from continuing operations before income tax expense | 362.9 | 3.9 | — | 2.1 | 368.9 | ||||||||||||||||||||||||
| Provision for income tax expense | (95.0) | (1.0) | (0.1) | (0.5) | (96.6) | ||||||||||||||||||||||||
Income from continuing operations attributable to Encompass Health | $ | 267.9 | $ | 2.9 | $ | (0.1) | $ | 1.6 | $ | 272.3 | |||||||||||||||||||
Diluted earnings per share from continuing operations** | $ | 2.65 | $ | 0.03 | $ | — | $ | 0.02 | $ | 2.69 | |||||||||||||||||||
| Diluted shares used in calculation | 101.1 | ||||||||||||||||||||||||||||
* Reconciliation to GAAP provided on page 10
** Adjusted EPS may not sum across due to rounding.
14 | ||||||||
Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Net Income to Adjusted EBITDA
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||
| Net income | $ | 147.1 | $ | 113.4 | $ | 432.4 | $ | 343.9 | |||||||||||||||
| Loss from discontinued operations, net of tax, attributable to Encompass Health | 0.7 | 1.3 | 3.2 | 3.5 | |||||||||||||||||||
| Net income attributable to noncontrolling interests included in continuing operations | (38.9) | (28.1) | (97.6) | (79.5) | |||||||||||||||||||
| Provision for income tax expense | 36.0 | 30.3 | 112.6 | 95.0 | |||||||||||||||||||
Interest expense and amortization of debt discounts and fees | 34.9 | 35.9 | 104.4 | 108.6 | |||||||||||||||||||
| Depreciation and amortization | 78.4 | 67.3 | 221.6 | 203.8 | |||||||||||||||||||
| Loss on early extinguishment of debt | 0.4 | — | 0.4 | — | |||||||||||||||||||
| Loss on disposal or impairment of assets | 0.6 | 2.2 | 11.3 | 3.7 | |||||||||||||||||||
| Stock-based compensation | 12.9 | 13.7 | 35.8 | 37.2 | |||||||||||||||||||
| State regulatory change impact on noncontrolling interests | — | — | — | (2.2) | |||||||||||||||||||
| Change in fair market value of equity securities | (2.8) | 1.5 | (2.7) | 2.1 | |||||||||||||||||||
| Asset impairment impact on noncontrolling interests | — | — | (7.3) | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 269.3 | $ | 237.5 | $ | 814.1 | $ | 716.1 | |||||||||||||||
15 | ||||||||
Encompass Health Corporation and Subsidiaries
Supplemental Information
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 267.8 | $ | 215.2 | $ | 724.0 | $ | 649.8 | |||||||||||||||
| Impact of discontinued operations | 1.0 | 1.7 | 3.7 | 4.6 | |||||||||||||||||||
Net cash provided by operating activities of continuing operations | 268.8 | 216.9 | 727.7 | 654.4 | |||||||||||||||||||
| Capital expenditures for maintenance | (46.2) | (35.3) | (133.8) | (129.8) | |||||||||||||||||||
Distributions paid to noncontrolling interests of consolidated affiliates | (33.0) | (32.5) | (85.5) | (91.9) | |||||||||||||||||||
| Items not indicative of ongoing operating performance: | |||||||||||||||||||||||
| Transaction costs and related liabilities | 0.1 | 0.2 | (8.6) | (0.5) | |||||||||||||||||||
| Adjusted free cash flow | $ | 189.7 | $ | 149.3 | $ | 499.8 | $ | 432.2 | |||||||||||||||
For the three months ended September 30, 2024, net cash used in investing activities was $161.5 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended September 30, 2024 was $89.5 million and resulted primarily from net debt payments, distributions paid to noncontrolling interests of consolidated affiliates, cash dividends paid on common stock, and repurchases of common stock partially offset by contributions from noncontrolling interests of consolidated affiliates.
For the three months ended September 30, 2023, net cash used in investing activities was $162.2 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended September 30, 2023 was $65.8 million and resulted primarily from net debt payments, distributions paid to noncontrolling interests of consolidated affiliates, and cash dividends paid on common stock partially offset by contributions from noncontrolling interests of consolidated affiliates.
For the nine months ended September 30, 2024, net cash used in investing activities was $449.6 million and resulted primarily from capital expenditures. Net cash used in financing activities during the nine months ended September 30, 2024 was $179.7 million and resulted primarily from net debt payments, distributions paid to noncontrolling interests of consolidated affiliates, cash dividends paid on common stock, and repurchases of common stock partially offset by contributions from noncontrolling interests of consolidated affiliates.
For the nine months ended September 30, 2023, net cash used in investing activities was $394.7 million and resulted primarily from capital expenditures. Net cash used in financing activities during the nine months ended September 30, 2023 was $167.3 million and resulted primarily from net debt payments, distributions paid to noncontrolling interests of consolidated affiliates, and cash dividends paid on common stock partially offset by contributions from noncontrolling interests of consolidated affiliates.
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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, an 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; any adverse effects on Encompass Health's stock price resulting from the integration of acquired operations; 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 as well as unforeseen issues, if any, related to integration of acquired systems; the ability to successfully integrate acquired operations, including realization of anticipated tax benefits, revenues, and cost savings, minimizing the negative impact on margins arising from the changes in staffing and other operating practices, and avoidance of unforeseen exposure to liabilities; 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 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
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Encompass Health Corporation and Subsidiaries
Forward-Looking Statements
instability or uncertainty related to armed conflict or an act of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; the increase in the cost of, or the decrease in the availability of, necessary supplies, such as personal protective equipment; the increase in the costs of defending and insuring against alleged professional liability claims, and Encompass Health's ability to predict the estimated costs related to such claims; 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 December 31, 2023 and Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024, when filed.
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