Encompass Health Q2 2023 Earnings Report
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.
Encompass Health
Encompass Health
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