Dec 31, 2022

Encompass Health Q4 2022 Earnings Report

Encompass Health reported a strong finish to 2022, with full-year results reaching the top end of guidance and patient volume showing strong growth.

Key Takeaways

Encompass Health Corporation reported its Q4 2022 results, with discharge growth of 7.3% and double-digit earnings growth. The company's full-year results reached the top end of its guidance range. Encompass Health issued full-year 2023 guidance.

Net operating revenue growth of 9.1% resulted from volume growth and pricing increases.

Total discharge growth for the fourth quarter of 2022 was 7.3% with same-store growth of 4.2%.

The increase in cash flows provided by operating activities of 39.1% primarily resulted from higher income from continuing operations attributable to Encompass Health and lower tax payments.

The increase in Adjusted EBITDA of 16.4% primarily resulted from revenue growth and lower contract labor and sign-on and shift bonuses.

Total Revenue
$1.14B
Previous year: $1.32B
-13.8%
EPS
$0.88
Previous year: $0.97
-9.3%
Net patient revenue per discharge
$20.3K
Previous year: $19.9K
+2.2%
Discharges
54.7K
Previous year: 50.98K
+7.3%
Gross Profit
$1.08B
Previous year: $1.26B
-14.3%
Cash and Equivalents
$21.8M
Previous year: $49.4M
-55.9%
Free Cash Flow
$46M
Previous year: -$68.8M
-166.9%
Total Assets
$5.64B
Previous year: $6.86B
-17.9%

Encompass Health

Encompass Health

Forward Guidance

The Company provided the following guidance for full-year 2023.Net operating revenue $4,680 to $4,760 (in millions). Adjusted EBITDA $860 to $900 (in millions). Adjusted earnings per share from continuing operations attributable to Encompass Health $2.87 to $3.16