Sep 30, 2022

Encompass Health Q3 2022 Earnings Report

Encompass Health's Q3 2022 performance reflected strong demand for inpatient rehabilitation services, discharge growth, and progress in reducing contract labor, but was impacted by elevated staffing costs, leading to revised 2022 guidance.

Key Takeaways

Encompass Health Corporation reported its Q3 2022 results, demonstrating strong demand for inpatient rehabilitation services with a 7.5% increase in total discharges. However, elevated staffing costs impacted profitability, leading to a revision of the company's 2022 guidance.

Third quarter discharge growth was 7.5%, inclusive of 4.1% same-store growth.

The company made continued progress on reducing contract labor through hiring and retention initiatives.

Elevated staffing costs again impacted profitability.

The company has revised its 2022 guidance.

Total Revenue
$1.09B
Previous year: $1.29B
-15.2%
EPS
$0.67
Previous year: $1.03
-35.0%
Net patient revenue per discharge
$19.8K
Previous year: $19.7K
+0.7%
Discharges
53.74K
Previous year: 49.98K
+7.5%
Gross Profit
$1.04B
Previous year: $1.23B
-15.7%
Cash and Equivalents
$59.8M
Previous year: $94.8M
-36.9%
Free Cash Flow
-$74.8M
Previous year: $124M
-160.3%
Total Assets
$5.48B
Previous year: $6.72B
-18.5%

Encompass Health

Encompass Health

Encompass Health Revenue by Segment

Forward Guidance

The Company is revising its guidance for full-year 2022. Net operating revenue is expected to be $4,320 to $4,350 million. Adjusted EBITDA is expected to be $800 to $820 million. Adjusted earnings per share from continuing operations attributable to Encompass Health is expected to be $2.71 to $2.86.