Mar 31, 2024

Encompass Health Q1 2024 Earnings Report

Encompass Health's Q1 2024 performance was strong, driven by revenue and discharge growth, along with effective expense management, leading to increased profitability and positive outlook.

Key Takeaways

Encompass Health reported a strong first quarter with a 13.4% increase in revenue, driven by a 10.0% increase in discharges. Adjusted EBITDA grew by 19.2%, and the company increased its full-year guidance.

Revenue growth of 13.4% resulted primarily from discharge growth of 10.0%, including same-store growth of 6.7%. Net revenue per discharge grew 2.8%.

Cash flows provided by operating activities increased 4.8% to $238.8 million, primarily due to an increase in net income partly offset by changes in working capital.

Adjusted EBITDA increased 19.2%, primarily from increased revenue and overall expense management.

The Company increased its full-year guidance.

Total Revenue
$1.32B
Previous year: $1.16B
+13.4%
EPS
$1.12
Previous year: $0.88
+27.3%
Net patient revenue per discharge
$21K
Previous year: $20.4K
+2.8%
Discharges
61.11K
Previous year: 55.56K
+10.0%
Gross Profit
$258M
Previous year: $1.11B
-76.7%
Cash and Equivalents
$134M
Previous year: $85M
+58.1%
Free Cash Flow
$168M
Previous year: $131M
+27.6%
Total Assets
$6.23B
Previous year: $5.75B
+8.4%

Encompass Health

Encompass Health

Forward Guidance

The Company increased its full-year guidance as follows: Net operating revenue $5,250 to $5,325 million, Adjusted EBITDA $1,030 to $1,065 million, Adjusted earnings per share from continuing operations attributable to Encompass Health $3.86 to $4.11