Encompass Health Q1 2023 Earnings Report
Key Takeaways
Encompass Health reported a strong first quarter in 2023, with a 9.5% increase in net operating revenue and a 17.5% growth in Adjusted EBITDA. The company's performance was driven by a 9.4% increase in discharges and substantial improvement in labor costs. Encompass Health also increased its full-year guidance for net operating revenue, Adjusted EBITDA, and adjusted earnings per share.
Revenue growth of 9.5% was primarily driven by increased volumes, with total discharge growth of 9.4% including same-store growth of 5.9%.
Cash flows provided by operating activities increased 4.1% year-over-year to $227.9 million, primarily due to improved collections of accounts receivable.
Adjusted EBITDA increased by 17.5%, primarily due to increased revenue and a decrease in contract labor expense and sign-on and shift bonuses.
The company increased its full-year guidance for net operating revenue to $4,700 to $4,770 million and for adjusted earnings per share from continuing operations attributable to Encompass Health to $2.94 to $3.23.
Encompass Health
Encompass Health
Forward Guidance
The Company increased its full-year guidance as follows:
Positive Outlook
- Net operating revenue is now expected to be between $4,700 million and $4,770 million.
- Adjusted EBITDA is projected to be in the range of $870 million to $910 million.
- Adjusted earnings per share from continuing operations attributable to Encompass Health are anticipated to be between $2.94 and $3.23.