Encompass Health Corp. Files Q3 2024 10-Q

TL;DR

Encompass Health (EHC) Q3 2024 10-Q filed. Financials look steady.

AI Summary

Encompass Health Corp. reported its third-quarter results for the period ending September 30, 2024. The company's filing details its financial performance and operational status. Key financial data and balance sheet information are presented for the reporting period and comparative prior periods.

Why It Matters

This 10-Q filing provides investors and analysts with the latest financial performance data for Encompass Health Corp., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-07-01 — Q3 2024 Start Date (Marks the beginning of the third quarter of 2024.)
• 2023-09-30 — Q3 2023 End Date (Provides a comparative period for the third quarter of 2023.)

Key Players & Entities

• Encompass Health Corp. (company) — Filer of the 10-Q
• 0000785161-24-000050 (other) — Accession Number for the filing
• 20240930 (date) — Conformed Period of Report
• 20241101 (date) — Filed as of Date
• HEALTHSOUTH CORP (company) — Former company name

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share EHC New York Stock Exchange

Filing Documents

• ehc-20240930.htm (10-Q) — 1295KB
• ehc10q93024ex22.htm (EX-22) — 48KB
• ehc10q93024ex311.htm (EX-31.1) — 14KB
• ehc10q93024ex312.htm (EX-31.2) — 14KB
• ehc10q93024ex321.htm (EX-32.1) — 10KB
• ehc10q93024ex322.htm (EX-32.2) — 10KB
• 0000785161-24-000050.txt ( ) — 5788KB
• ehc-20240930.xsd (EX-101.SCH) — 31KB
• ehc-20240930_cal.xml (EX-101.CAL) — 75KB
• ehc-20240930_def.xml (EX-101.DEF) — 143KB
• ehc-20240930_lab.xml (EX-101.LAB) — 482KB
• ehc-20240930_pre.xml (EX-101.PRE) — 344KB
• ehc-20240930_htm.xml (XML) — 711KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 4.

Controls and Procedures

Controls and Procedures 30 PART II Other Information Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 5. Other Information 32 Item 6. Exhibits 32 Exhibit Index NOTE TO READERS As used in this report, the terms "Encompass Health," "we," "us," "our," and the "Company" refer to Encompass Health Corporation and its consolidated subsidiaries, unless otherwise stated or indicated by context. This drafting style is suggested by the Securities and Exchange Commission and is not meant to imply that Encompass Health Corporation, the publicly traded parent company, owns or operates any specific asset, business, or property. The hospitals, operations, and businesses described in this filing are primarily owned and operated by subsidiaries of the parent company. In addition, we use the term "Encompass Health Corporation" to refer to Encompass Health Corporation alone wherever a distinction between Encompass Health Corporation and its subsidiaries is required or aids in the understanding of this filing. i CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This quarterly report contains historical information, as well as forward-looking statements that involve known and unknown risks and relate to, among other things, future events, changes to Medicare reimbursement and other healthcare laws and regulations from time to time, our business strategy, labor cost trends, our dividend and stock repurchase strategies, our financial plans, our growth plans, our future financial performance, our projected business results, or our projected capital expenditures. In some cases, the reader can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "targets," "potential," or "continue" or the negative of these terms or other comparable terminology. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Encompass Health Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In Millions, Except Per Share Data) Net operating revenues $ 1,351.0 $ 1,206.9 $ 3,968.2 $ 3,554.4 Operating expenses: Salaries and benefits 732.1 658.6 2,144.2 1,923.8 Other operating expenses 202.4 183.7 596.2 534.3 Occupancy costs 14.4 14.2 42.6 42.3 Supplies 60.6 53.9 176.7 159.7 General and administrative expenses 54.0 49.8 154.7 148.6 Depreciation and amortization 78.4 67.3 221.6 203.8 Total operating expenses 1,141.9 1,027.5 3,336.0 3,012.5 Loss on early extinguishment of debt 0.4 — 0.4 — Interest expense and amortization of debt discounts and fees 34.9 35.9 104.4 108.6 Other income ( 9.3 ) ( 0.5 ) ( 18.0 ) ( 6.8 ) Equity in net income of nonconsolidated affiliates ( 0.7 ) ( 1.0 ) ( 2.8 ) ( 2.3 ) Income from continuing operations before income tax expense 183.8 145.0 548.2 442.4 Provision for income tax expense 36.0 30.3 112.6 95.0 Income from continuing operations 147.8 114.7 435.6 347.4 Loss from discontinued operations, net of tax ( 0.7 ) ( 1.3 ) ( 3.2 ) ( 3.5 ) Net and comprehensive income 147.1 113.4 432.4 343.9 Less: Net and comprehensive income attributable to noncontrolling interests ( 38.9 ) ( 28.1 ) ( 97.6 ) ( 79.5 ) Net and comprehensive income attributable to Encompass Health $ 108.2 $ 85.3 $ 334.8 $ 264.4 Weighted average common shares outstanding: Basic 99.9 99.5 99.9 99.5 Diluted 102.1 101.4 102.2 101.1 Earnings per common share: Basic earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 1.09 $ 0.86 $ 3.36 $ 2.68 Discontinued operations ( 0.01 ) ( 0.01 ) ( 0.03 ) ( 0.04 ) Net income $ 1.08 $ 0.85 $ 3.33 $ 2.64 Diluted earnings per share attributable to Encompass Health common shareholders: Continuing operations $ 1.0

View Full Filing

View this 10-Q filing on SEC EDGAR