Encompass Health Q3 2023 Earnings Report
Key Takeaways
Encompass Health reported a strong third quarter with a 10.8% increase in revenue, driven by discharge growth. Adjusted EBITDA grew by 21.6% due to increased revenue and improved labor costs. The company updated its full-year guidance to reflect these results and expectations for the remainder of the year.
Revenue growth of 10.8% resulted primarily from discharge growth of 7.3%, including same-store growth of 4.3%. Net revenue per discharge grew 3.3%.
Cash flows provided by operating activities increased 207.0% over the prior year to $215.2 million, due to lower working capital and an increase in net income.
The 21.6% increase in Adjusted EBITDA primarily resulted from increased revenue and a decrease in contract labor expense and sign-on and shift bonuses.
Full-year guidance updated to $4,770 to $4,800 million for net operating revenue and $940 to $955 million for Adjusted EBITDA.
Encompass Health
Encompass Health
Forward Guidance
The Company updated its full-year guidance as follows: Net operating revenue is expected to be between $4,770 million and $4,800 million. Adjusted EBITDA is expected to be between $940 million and $955 million. Adjusted earnings per share from continuing operations attributable to Encompass Health is expected to be between $3.41 and $3.52.