Encompass Health Exceeds Expectations in First Quarter with Strong Revenue and EBITDA Growth
Encompass Health Corporation (NYSE: EHC), the leading provider of inpatient rehabilitation services in the United States, announced impressive financial results for the first quarter ended March 31, 2024, surpassing market expectations.
Key Financial Highlights:
* Revenue surged by 13.4% to $1.4 billion, driven by robust patient discharge rates.
* Adjusted EBITDA climbed by a significant 19.2% to $300.9 million, reflecting efficient expense management.
* The Company’s strong performance prompted an upward revision of its full-year guidance for both Adjusted EBITDA and adjusted earnings per share.
Management Perspective:
Mark Tarr, President and Chief Executive Officer of Encompass Health, expressed his satisfaction with the company’s exceptional first-quarter results. He attributed the success to a combination of strong revenue growth and disciplined cost control measures.
Continuing Optimism for the Future:
Tarr emphasized the company’s unwavering belief in its value proposition and operating strategy. He expressed optimism about the long-term prospects of Encompass Health, citing its proven track record of success and commitment to providing high-quality rehabilitative care to patients recovering from major injuries or illnesses.
Capital Allocation and Financial Position:
For the three months ended March 31, 2024, Encompass Health used $47.4 million in cash for investing activities, primarily due to capital expenditures. Net cash used in financing activities totaled $20.6 million, driven by distributions to noncontrolling interests and cash dividends paid on common stock, partially offset by contributions from noncontrolling interests.
Supplemental Information and Conference Call:
Encompass Health will host an investor conference call on April 25, 2024, at 10:00 AM Eastern Time to discuss its first-quarter results. Supplemental information will be posted on the company’s website prior to the call.
The financial data presented in this press release includes non-GAAP measures, including Adjusted EBITDA, adjusted free cash flow, adjusted earnings per share, and leverage ratio. Reconciliations to the most comparable GAAP measures are provided in the earnings release and on the company’s website.
Additional Information:
Interested parties are encouraged to review Encompass Health’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and its Current Report on Form 8-K filed on April 24, 2024, for further details and financial disclosures.
Encompass Health remains committed to providing exceptional healthcare services to patients and delivering value to its shareholders. The company’s strong financial performance in the first quarter is a testament to its unwavering dedication to its mission and a promising sign for the future.