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Mar 31, 2021
Encompass Health Q1 2021 Earnings Report
Encompass Health reported encouraging first quarter performance driven by promising volume trends contributing to solid revenue and EBITDA growth, and increased full-year 2021 guidance to reflect strong performance and the extension of the suspension of sequestration.
Key Takeaways
Encompass Health Corporation reported its Q1 2021 results with revenue growth resulting from favorable pricing partially offset by decreased volumes in both segments. The company is increasing its 2021 guidance to reflect its strong performance and the extension of the suspension of sequestration.
Revenue growth resulted from favorable pricing partially offset by decreased volumes in both segments.
The increase in income from continuing operations attributable to Encompass Health per diluted share and adjusted earnings per share in 2021 primarily resulted from revenue growth and decreased stock-based compensation.
The increase in full-year cash flows provided by operating activities and adjusted free cash flow primarily resulted from revenue growth and the timing of maintenance capital expenditures in 2021.
Total starts of care were up 0.6% due to increases in recertifications and non-episodic admissions.
Encompass Health
Encompass Health
Forward Guidance
The Company increased its full-year guidance to reflect its first quarter results and the extension of the suspension of sequestration.
Positive Outlook
- Net operating revenues: $5,060 to $5,230 million
- Adjusted EBITDA: $1,000 to $1,030 million
- Adjusted earnings per share from continuing operations attributable to Encompass Health: $3.94 to $4.16
- Interest expense and amortization of debt discounts and fees - estimate of $164 million to $174 million
- Amortization of debt-related items - approximately $9 million