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Jun 30, 2023
Encompass Health Q2 2023 Earnings Report
Reported strong second quarter performance driven by discharge growth and improved labor costs.
Key Takeaways
Encompass Health reported strong Q2 2023 results with a 9.8% increase in total discharges and a 27.1% growth in Adjusted EBITDA. The company has increased its full-year guidance to reflect the strong first half results and updated expectations for the balance of the year.
Revenue growth of 11.7% resulted primarily from increased volumes, with total discharge growth of 9.8% including same-store growth of 6.2%.
Net revenue per discharge grew 2.0%, inclusive of a 30 basis point decline in revenue reserves related to bad debt as a percent of revenue.
Cash flows provided by operating activities decreased 15.5% over the prior year to $206.7 million, due primarily to an increase in cash tax payments.
The 27.1% increase in Adjusted EBITDA primarily resulted from increased revenue and a decrease in contract labor expense and sign-on and shift bonuses.
Forward Guidance
The Company increased its full-year guidance as follows:
Positive Outlook
- Net operating revenue: $4,750 to $4,810 million
- Adjusted EBITDA: $920 to $950 million
- Adjusted earnings per share from continuing operations attributable to Encompass Health: $3.31 to $3.53
Historical Earnings Impact
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Avg. Return Before/After Earnings
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