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Mar 31, 2020
Encompass Health Q1 2020 Earnings Report
Encompass Health's Q1 2020 results were impacted by COVID-19 pandemic, with revenue growth driven by volume and pricing in inpatient rehabilitation and volume in home health and hospice.
Key Takeaways
Encompass Health reported its Q1 2020 results, which were impacted by lower volumes and higher operating expenses related to the COVID-19 pandemic starting in March, although operating performance was strong through February. The company withdrew its 2020 guidance due to rapidly changing operating conditions.
Revenue growth was driven by volume and pricing growth in the inpatient rehabilitation segment and volume growth in the home health and hospice segment.
Cash flows provided by operating activities and adjusted free cash flow decreased primarily due to a decrease in earnings and an increase in working capital.
The company's executive team voluntarily reduced their base compensation for six months.
The company secured secondary sources of PPE and other medical supplies, aligned staffing with patient demand, and amended its senior credit facility to provide covenant relief.
Forward Guidance
Given the rapidly changing operating conditions related to the COVID-19 pandemic, the Company cannot accurately estimate the effects it may have on its full-year 2020 financial results. As a result, the Company withdrew its 2020 guidance and five-year growth targets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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