Encompass Health reports results for fourth quarter 2024 and issues 2025 guidance

Growth

Q4 2024

Q4 2023

Dollars

Percent

(In Millions, Except Per Share Data)

Net operating revenue

$      1,405.0

$      1,246.8

$     158.2

12.7 %

Income from continuing operations attributable to Encompass Health per diluted share

1.18

0.94

0.24

25.5 %

Adjusted earnings per share

1.17

0.95

0.22

23.2 %

Cash flows provided by operating activities

278.8

201.0

77.8

38.7 %

Adjusted EBITDA

289.6

255.0

34.6

13.6 %

Adjusted free cash flow

190.5

93.5

97.0

103.7 %

(Actual Amounts)

Discharges

63,839

59,247

7.8 %

   Same-store discharge growth

5.8 %

Net patient revenue per discharge

$       21,399

$       20,538

4.2 %

2025 Guidance

(In Millions, Except Per Share Data)

Net operating revenue

$5,800 to $5,900

Adjusted EBITDA

$1,160 to $1,200

Adjusted earnings per share from continuing operations attributable to Encompass Health

$4.67 to $4.96

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.

Encompass Health Corporation and Subsidiaries

For the Three
Months Ended
December 31,

For the Year Ended
December 31,

2024

2023

2024

2023

(In Millions, Except Per Share Data)

Net operating revenues

$  1,405.0

$  1,246.8

$  5,373.2

$  4,801.2

Operating expenses:

Salaries and benefits

756.8

676.3

2,901.0

2,600.1

Other operating expenses

206.4

184.8

802.6

719.1

Occupancy costs

14.7

14.0

57.3

56.3

Supplies

62.3

58.6

239.0

218.3

General and administrative expenses

54.5

53.1

209.2

201.7

Depreciation and amortization

78.0

70.1

299.6

273.9

Total operating expenses

1,172.7

1,056.9

4,508.7

4,069.4

Loss on early extinguishment of debt

0.2

—

0.6

—

Interest expense and amortization of debt discounts and fees

33.0

34.9

137.4

143.5

Other income

(2.1)

(8.9)

(20.1)

(15.7)

Equity in net income of nonconsolidated affiliates

(0.2)

(0.9)

(3.0)

(3.2)

Income from continuing operations before income tax expense

201.4

164.8

749.6

607.2

Provision for income tax expense

37.6

37.2

150.2

132.2

Income from continuing operations

163.8

127.6

599.4

475.0

Income (loss) from discontinued operations, net of tax

0.4

(8.5)

(2.8)

(12.0)

Net and comprehensive income

164.2

119.1

596.6

463.0

Less: Net and comprehensive income attributable to noncontrolling interests

(43.3)

(31.5)

(140.9)

(111.0)

Net and comprehensive income attributable to Encompass Health

$     120.9

$       87.6

$     455.7

$     352.0

Weighted average common shares outstanding:

Basic

100.0

99.5

99.9

99.5

Diluted

102.3

101.5

102.2

101.3

Earnings per common share:

Basic earnings per share attributable to Encompass Health common shareholders:

Continuing operations

$       1.20

$       0.96

$       4.56

$       3.63

Discontinued operations

—

(0.09)

(0.03)

(0.12)

Net income

$       1.20

$       0.87

$       4.53

$       3.51

Diluted earnings per share attributable to Encompass Health common shareholders:

Continuing operations

$       1.18

$       0.94

$       4.49

$       3.59

Discontinued operations

—

(0.08)

(0.03)

(0.12)

Net income

$       1.18

$       0.86

$       4.46

$       3.47

Amounts attributable to Encompass Health common shareholders:

Income from continuing operations

$     120.5

$       96.1

$     458.5

$     364.0

Income (loss) from discontinued operations, net of tax

0.4

(8.5)

(2.8)

(12.0)

Net income attributable to Encompass Health

$     120.9

$       87.6

$     455.7

$     352.0

Encompass Health Corporation and Subsidiaries

As of
December 31,
2024

As of
December 31,
2023

(In Millions)

Assets

Current assets:

Cash and cash equivalents

$               85.4

$                69.1

Restricted cash

37.7

35.1

Accounts receivable

598.8

611.6

Prepaid expenses

42.3

34.5

Other current assets

122.7

91.5

Total current assets

886.9

841.8

Property and equipment, net

3,643.1

3,301.0

Operating lease right-of-use assets

203.7

208.5

Goodwill

1,284.0

1,281.3

Intangible assets, net

297.8

278.2

Other long-term assets

219.2

191.6

Total assets

$          6,534.7

$           6,102.4

Liabilities and Shareholders' Equity

Current liabilities:

Current portion of long-term debt

$             138.6

$                24.8

Current operating lease liabilities

26.3

24.1

Accounts payable

171.0

170.0

Accrued payroll

227.9

207.5

Accrued interest payable

38.6

42.6

Other current liabilities

238.6

187.4

Total current liabilities

841.0

656.4

Long-term debt, net of current portion

2,359.2

2,687.8

Long-term operating lease liabilities

189.7

196.1

Self-insured risks

138.6

131.8

Deferred income tax liabilities

105.2

87.0

Other long-term liabilities

51.8

46.1

Total liabilities

3,685.5

3,805.2

Commitments and contingencies

Redeemable noncontrolling interests

56.5

42.0

Shareholders' equity:

Encompass Health shareholders' equity

2,067.0

1,647.5

Noncontrolling interests

725.7

607.7

Total shareholders' equity

2,792.7

2,255.2

Total liabilities and shareholders' equity

$          6,534.7

$           6,102.4

Encompass Health Corporation and Subsidiaries

For the Year Ended

2024

2023

(In Millions)

Cash flows from operating activities:

Net income

$            596.6

$            463.0

Loss from discontinued operations, net of tax

2.8

12.0

Adjustments to reconcile net income to net cash provided by operating activities—

Depreciation and amortization

299.6

273.9

Amortization of debt-related items

9.7

9.5

Loss on early extinguishment of debt

0.6

—

Equity in net income of nonconsolidated affiliates

(3.0)

(3.2)

Distributions from nonconsolidated affiliates

4.0

1.6

Stock-based compensation

48.3

50.6

Deferred tax expense

10.7

3.9

Other, net

14.7

5.2

Change in assets and liabilities, net of acquisitions—

Accounts receivable

3.0

(22.4)

Prepaid expenses and other assets

(57.3)

6.1

Accounts payable

3.0

11.8

Accrued payroll

20.4

39.2

Other liabilities

52.8

15.6

Net cash used in operating activities of discontinued operations

(3.1)

(16.0)

Total adjustments

403.4

375.8

Net cash provided by operating activities

1,002.8

850.8

Cash flows from investing activities:

Purchases of property, equipment, and intangible assets

(642.5)

(583.1)

Proceeds from sale of restricted investments

18.9

7.4

Purchase of restricted investments

(22.5)

(23.0)

Other, net

(7.2)

(4.1)

Net cash used in investing activities

(653.3)

(602.8)

Cash flows from financing activities:

Principal borrowings on notes

15.0

20.0

Principal payments on debt, including pre-payments

(255.2)

(7.2)

Borrowings on revolving credit facility

80.0

60.0

Payments on revolving credit facility

(60.0)

(115.0)

Principal payments under finance lease obligations

(21.8)

(41.1)

Debt amendment costs

(0.1)

(0.1)

Taxes paid on behalf of employees for shares withheld

(12.1)

(8.2)

Contributions from noncontrolling interests of consolidated affiliates

140.4

68.3

Dividends paid on common stock

(62.8)

(60.4)

Distributions paid to noncontrolling interests of consolidated affiliates

(125.0)

(114.7)

Repurchases of common stock, including fees and expenses

(31.1)

—

Other, net

2.1

1.2

Net cash used in financing activities

(330.6)

(197.2)

Increase in cash, cash equivalents, and restricted cash

18.9

50.8

Cash, cash equivalents, and restricted cash at beginning of period

104.2

53.4

Cash, cash equivalents, and restricted cash at end of period

$            123.1

$            104.2

Encompass Health Corporation and Subsidiaries

Q4

Year Ended

2024

2023

2024

2023

(In Millions, Except Per Share Data)

Adjusted EBITDA

$     289.6

$     255.0

$  1,103.7

$     971.1

Depreciation and amortization

(78.0)

(70.1)

(299.6)

(273.9)

Interest expense and amortization of debt discounts and fees

(33.0)

(34.9)

(137.4)

(143.5)

Stock-based compensation

(12.5)

(13.4)

(48.3)

(50.6)

Loss on disposal or impairment of assets

(6.1)

(6.1)

(17.4)

(9.8)

160.0

130.5

601.0

493.3

Items not indicative of ongoing operating performance:

Loss on early extinguishment of debt

(0.2)

—

(0.6)

—

State regulatory change impact on noncontrolling interests

—

—

—

2.2

Change in fair market value of equity securities

(1.7)

2.8

1.0

0.7

Asset impairment impact on noncontrolling interests

—

—

7.3

—

Pre-tax income

158.1

133.3

608.7

496.2

Income tax expense

(37.6)

(37.2)

(150.2)

(132.2)

Income from continuing operations ⁽¹⁾

$     120.5

$       96.1

$     458.5

$     364.0

Basic shares

100.0

99.5

99.9

99.5

Diluted shares

102.3

101.5

102.2

101.3

Basic earnings per share ⁽¹⁾

$       1.20

$       0.96

$       4.56

$       3.63

Diluted earnings per share ⁽¹⁾

$       1.18

$       0.94

$       4.49

$       3.59

⁽¹⁾

Income from continuing operations attributable to Encompass Health

Encompass Health Corporation and Subsidiaries

Q4

Year Ended

2024

2023

2024

2023

Earnings per share, as reported

$      1.18

$      0.94

$      4.49

$      3.59

Adjustments, net of tax:

Asset impairment impact

—

—

0.02

—

Income tax adjustments

(0.03)

0.03

(0.08)

0.03

State regulatory change impact

—

—

—

0.03

Change in fair market value of equity securities

0.01

(0.02)

(0.01)

—

Adjusted earnings per share*

$      1.17

$      0.95

$      4.43

$      3.64

*

Adjusted EPS may not sum due to rounding.

Encompass Health Corporation and Subsidiaries

Q4

Year Ended

2024

2023

2024

2023

(In Millions)

Net cash provided by operating activities

$     278.8

$     201.0

$  1,002.8

$     850.8

Interest expense and amortization of debt discounts and fees

33.0

34.9

137.4

143.5

(Loss) gain on sale of investments, excluding impairments

(3.1)

5.5

2.7

4.6

Equity in net income of nonconsolidated affiliates

0.2

0.9

3.0

3.2

Net income attributable to noncontrolling interests in continuing operations

(43.3)

(31.5)

(140.9)

(111.0)

Amortization of debt-related items

(2.4)

(2.4)

(9.7)

(9.5)

Distributions from nonconsolidated affiliates

(0.9)

(1.0)

(4.0)

(1.6)

Current portion of income tax expense

29.0

30.4

139.5

128.3

Change in assets and liabilities

(2.8)

8.6

(21.9)

(50.3)

Cash (provided by) used in operating activities of discontinued operations

(0.6)

11.4

3.1

16.0

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

1.7

(2.8)

(1.0)

(0.7)

Adjusted EBITDA

$     289.6

$     255.0

$  1,103.7

$     971.1

Encompass Health Corporation and Subsidiaries

For the Three Months Ended December 31, 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*

$    289.6

$                     —

$                —

$                   —

$     289.6

Depreciation and amortization

(78.0)

—

—

—

(78.0)

Interest expense and amortization of debt discounts and fees

(33.0)

—

—

—

(33.0)

Stock-based compensation

(12.5)

—

—

—

(12.5)

Loss on disposal or impairment of assets

(6.1)

—

—

—

(6.1)

Loss on early extinguishment of debt

(0.2)

0.2

—

—

—

Change in fair market value of equity securities

(1.7)

—

—

1.7

—

Income from continuing operations before income tax expense

158.1

0.2

—

1.7

160.0

Provision for income tax expense

(37.6)

(0.1)

(2.6)

(0.4)

(40.7)

Income from continuing operations attributable to Encompass Health

$    120.5

$                  0.1

$           (2.6)

$                1.3

$     119.3

Diluted earnings per share from continuing operations**

$      1.18

$                     —

$         (0.03)

$              0.01

$       1.17

Diluted shares used in calculation

102.3

*

See reconciliation of net income to Adjusted EBITDA.

**

Adjusted EPS may not sum across due to rounding.

Encompass Health Corporation and Subsidiaries

For the Three Months Ended December 31, 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*

$    255.0

$                 —

$                        —

$     255.0

Depreciation and amortization

(70.1)

—

—

(70.1)

Interest expense and amortization of debt discounts and fees

(34.9)

—

—

(34.9)

Stock-based compensation

(13.4)

—

—

(13.4)

Loss on disposal or impairment of assets

(6.1)

—

—

(6.1)

Change in fair market value of equity securities

2.8

—

(2.8)

—

Income from continuing operations before income tax expense

133.3

—

(2.8)

130.5

Provision for income tax expense

(37.2)

2.9

0.7

(33.6)

Income from continuing operations attributable to Encompass Health

$      96.1

$              2.9

$                    (2.1)

$       96.9

Diluted earnings per share from continuing operations**

$      0.94

$            0.03

$                  (0.02)

$       0.95

Diluted shares used in calculation

101.5

*

See reconciliation of net income to Adjusted EBITDA.

**

Adjusted EPS may not sum across due to rounding.

Encompass Health Corporation and Subsidiaries

For the Year Ended December 31, 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*

$ 1,103.7

$               —

$                     —

$                —

$                        —

$ 1,103.7

Depreciation and amortization

(299.6)

—

—

—

—

(299.6)

Interest expense and amortization of debt discounts and fees

(137.4)

—

—

—

—

(137.4)

Stock-based compensation

(48.3)

—

—

—

—

(48.3)

Loss on disposal or impairment of assets

(17.4)

10.4

—

—

—

(7.0)

Loss on early extinguishment of debt

(0.6)

—

0.6

—

—

—

Change in fair market value of equity securities

1.0

—

—

—

(1.0)

—

Asset impairment impact on noncontrolling interests

7.3

(7.3)

—

—

—

—

Income from continuing operations before income tax expense

608.7

3.1

0.6

—

(1.0)

611.4

Provision for income tax expense

(150.2)

(1.3)

(0.2)

(7.7)

0.3

(159.1)

Income from continuing operations attributable to Encompass Health

$    458.5

$            1.8

$                  0.4

$           (7.7)

$                   (0.7)

$     452.3

Diluted earnings per share from continuing operations**

$      4.49

$          0.02

$                     —

$         (0.08)

$                 (0.01)

$       4.43

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

For the Year Ended December 31, 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*

$    971.1

$              —

$                 —

$               —

$     971.1

Depreciation and amortization

(273.9)

6.1

—

—

(267.8)

Interest expense and amortization of debt discounts and fees

(143.5)

—

—

—

(143.5)

Stock-based compensation

(50.6)

—

—

—

(50.6)

Loss on disposal or impairment of assets

(9.8)

—

—

—

(9.8)

State regulatory change impact on noncontrolling interests

2.2

(2.2)

—

Für dich aus unserer Redaktion zusammengestellt

05.02.26 Machado: Neuwahlen in Venezuela binnen zehn Monaten möglich

05.02.26 ROUNDUP 2/Weißes Haus: Verhandlungen mit dem Iran am Freitag

05.02.26 US-Minister über Irans Führung: Ratten verlassen das Schiff

05.02.26 Bitcoin fällt unter 64.000 US-Dollar - 'Toxische Mischung'

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.

Weitere Artikel des Autors

05.02.26 MPLX LP prices $1.5 billion senior notes offering

05.02.26 Super Bowl LX's Super Schools Scores Big for Bay Area Students

05.02.26 Sempra Ranks Again Among Fortune's Most Admired

05.02.26 Federal Realty Sells Misora at Santana Row as Part of Ongoing Capital Recycling Program

Themen im Trend

05.02.26 AMD-Aktien im freien Fall: Cathie Wood schlägt zu!

05.02.26 USA will Rohstoff-Offensive gegen China starten: Mindestpreise für kritische Mineralien erschüttern die Aktien

05.02.26 Dieser TKMS-Konkurrent baut die ganz dicken Pötte – und verdient dabei so gut wie lange nicht!

05.02.26 Renk: Steht der Aktie das Schlimmste erst noch bevor?

Themen im Trend

AMD-Aktien im freien Fall: Cathie Wood schlägt zu!

USA will Rohstoff-Offensive gegen China starten: Mindestpreise für kritische Mineralien erschüttern die Aktien

Dieser TKMS-Konkurrent baut die ganz dicken Pötte – und verdient dabei so gut wie lange nicht!

Renk: Steht der Aktie das Schlimmste erst noch bevor?

DAX-Konzern Siemens Healthineers legt Zahlen vor

Neueste News

Machado: Neuwahlen in Venezuela binnen zehn Monaten möglich

ROUNDUP 2/Weißes Haus: Verhandlungen mit dem Iran am Freitag

US-Minister über Irans Führung: Ratten verlassen das Schiff

Bitcoin fällt unter 64.000 US-Dollar - 'Toxische Mischung'

Trump will neuen Atomvertrag

Meistgesuchte Aktien auf Ariva.de

Novo-Nordisk AS	DroneShield Ltd	SAP SE	Rheinmetall AG	Nvidia Corp
PayPal Holdings Inc	Microsoft Corp	Bayer AG	BioNTech SE ADR	Evotec SE
Puma SE	BYD Co Ltd	Almonty Industries Inc	BASF SE	Palantir Technologies Inc
Siemens Energy AG	Tesla Inc	Barrick Mining Corp	First Majestic Silver Corp	Amazon Inc