Encompass Health Corp Files 8-K on Financials

Ticker: EHC · Form: 8-K · Filed: Aug 5, 2024 · CIK: 785161

Sentiment: neutral

Topics: financial-reporting, 8-K, operations

TL;DR

EHC filed an 8-K detailing financial results and operations.

AI Summary

Encompass Health Corporation filed an 8-K on August 5, 2024, reporting on its results of operations and financial condition. The filing also included Regulation FD disclosures and financial statements. The company, formerly known as HealthSouth Corp, is incorporated in Delaware and headquartered in Birmingham, Alabama.

Why It Matters

This filing provides crucial updates on Encompass Health's financial performance and operational status, which can influence investor decisions and market perception.

Risk Assessment

Risk Level: low — This is a routine filing reporting financial information and does not indicate any immediate or significant risks.

Key Players & Entities

FAQ

What is the primary purpose of this Form 8-K filing?

The primary purpose of this Form 8-K filing is to report on Encompass Health Corporation's results of operations and financial condition, along with Regulation FD disclosures and financial statements.

When was this Form 8-K filed?

This Form 8-K was filed on August 5, 2024.

What is Encompass Health Corporation's state of incorporation?

Encompass Health Corporation is incorporated in Delaware.

Where are Encompass Health Corporation's principal executive offices located?

Encompass Health Corporation's principal executive offices are located at 9001 Liberty Parkway, Birmingham, Alabama 35242.

Has Encompass Health Corporation operated under any former names?

Yes, Encompass Health Corporation was formerly known as HealthSouth Corp and HealthSouth Rehabilitation Corp.

Filing Stats: 2,443 words · 10 min read · ~8 pages · Grade level 15.9 · Accepted 2024-08-05 17:00:13

Key Financial Figures

Filing Documents

02. Results of Operations and Financial Condition

ITEM 2.02. Results of Operations and Financial Condition. On August 5, 2024, Encompass Health Corporation ("Encompass Health" or the "Company") issued a press release reporting the financial results of the Company for the three and six months ended June 30, 2024. A copy of the press release is attached to this report as Exhibit 99.1 and incorporated herein by reference. The Company uses "same-store" comparisons to explain the changes in certain performance metrics within its financial statements. Same-store comparisons are calculated based on hospitals open throughout both the full current and prior periods presented. These comparisons include the financial results of market consolidation transactions and capacity expansions (including the addition of satellite and remote hospitals) in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company's results of operations.

01. Regulation FD Disclosure

ITEM 7.01. Regulation FD Disclosure. See Item 2.02, "Results of Operations and Financial Condition," above. In addition, a copy of the supplemental information which will be discussed during the Company's earnings call at 10:00 a.m. Eastern Time on Tuesday, August 6, 2024 is attached to this report as Exhibit 99.2 and incorporated herein by reference. Note Regarding Presentation of Non-GAAP Financial Measures The financial data contained in the press release and supplemental information include non-GAAP financial measures, including the Company's adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow. The Company is providing adjusted earnings per share from continuing operations attributable to Encompass Health ("adjusted earnings per share"). The Company believes the presentation of adjusted earnings per share provides useful additional information to investors because it provides better comparability of ongoing operating performance to prior periods given that it excludes the impact of government, class action, and related settlements; professional fees—accounting, tax, and legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging and equity instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be non-indicative of its ongoing operating performance. It is reasonable to expect that one or more of these excluded items will occur in future periods, but the amounts recognized can vary significantly from period to period and may not directly relate to the Company's ongoing operating performance. Accordingly, they can complicate comparisons of the Company's results of operations across periods and comparisons of the Company's results to those of other healthcare companies

Forward-Looking Statements

Forward-Looking Statements The information contained in the press release and supplemental information includes certain estimates, projections, and other forward-looking statements that involve known and unknown risks and relate to, among other things, future events, the business model, strategy, outlook and guidance, growth targets, labor cost trends, financial plans, dividend strategies or payments, effective income tax rates, plans to repurchase its debt or equity securities, future financial performance, projected business results, ability to return value to its shareholders, projected capital expenditures and development plans, leverage ratio, guidance considerations, and the impact of future legislation or regulation. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "targets," "potential," or "continue" or the negative of these terms or other comparable terminology. These estimates, projections, and other forward-looking statements are based on assumptions the Company believes, as of the date hereof, are reasonable. Inevitably, there will be differences between such estimates and actual results, and those differences may be material. There can be no assurance that any estimates, projections, or forward-looking statements will be realized. All such estimates, projections, and forward-looking statements speak only as of the date hereof. The Company undertakes no duty to publicly update or revise that information. You are cautioned not to place undue reliance on the estimates, projections, and other forward-looking statements in this report, the press release, and supplemental information as they are based on current expectations and general assumptions and are subject to various risks, uncertainties, and other factors, including those set forth in the attached press release and in the 2023 Form 10K, the June 2024 Form 10-Q when fi

01. Financial Statements and Exhibits

ITEM 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 99.1 Press release of Encompass Health Corporation, dated August 5, 2024. 99.2 Supplemental information provided in connection with the second quarter 2024 earnings call of Encompass Health Corporation. 104 Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. ENCOMPASS HEALTH CORPORATION By: / S / D OUGLAS E. C OLTHARP Name: Douglas E. Coltharp Title: Executive Vice President and Chief Financial Officer Dated: August 5, 2024

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