Encompass Health (US:EHC)2025-02-06 21:32Financial Performance - Net operating revenue for Q4 2024 was $1,405.0 million, a 12.7% increase from $1,246.8 million in Q4 2023[2] - Income from continuing operations attributable to Encompass Health per diluted share increased by 25.5% to $1.18, compared to $0.94 in the same quarter last year[2] - Adjusted EBITDA rose by 13.6% to $289.6 million, driven primarily by increased revenue[3] - Net income for the year ended December 31, 2024, was $596.6 million, compared to $463.0 million in 2023, reflecting a year-over-year increase of 28.8%[19] - Adjusted EBITDA for the year ended December 31, 2024, reached $1,103.7 million, up from $971.1 million in 2023, indicating a growth of 13.6%[21] - Basic earnings per share for the year ended December 31, 2024, were $4.56, up from $3.63 in 2023, representing a growth of 25.7%[21] - Net income for Q4 2024 was $164.2 million, up from $119.1 million in Q4 2023, representing a 37.8% increase[31] - Adjusted EBITDA for Q4 2024 was $289.6 million, compared to $255.0 million in Q4 2023, representing a 13.5% increase[26][27] Cash Flow and Investments - Cash flows from operating activities increased by 38.7% to $278.8 million, attributed to higher net income and favorable changes in working capital[3] - Cash flows from operating activities totaled $1,002.8 million for the year ended December 31, 2024, compared to $850.8 million in 2023, marking an increase of 17.8%[19] - Net cash provided by operating activities for Q4 2024 was $278.8 million, an increase from $201.0 million in Q4 2023, marking a 38.6% rise[32] - Adjusted free cash flow for Q4 2024 was $190.5 million, significantly higher than $93.5 million in Q4 2023, indicating a 103.2% increase[32] - Net cash used in investing activities for the year ended December 31, 2024, was $653.3 million, compared to $602.8 million in 2023, reflecting an 8.4% increase[34][35] - Net cash used in financing activities for the year ended December 31, 2024, was $330.6 million, up from $197.2 million in 2023, representing a 67.5% increase[34][35] Operational Metrics - The company reported a total of 63,839 discharges in Q4 2024, reflecting a 7.8% growth compared to 59,247 discharges in Q4 2023[2] - The company achieved a same-store discharge growth of 5.8% in Q4 2024[2] - In 2024, the company increased its capacity by 427 beds through new hospitals and bed additions[4] Guidance and Future Outlook - For 2025, the company provided guidance for net operating revenue between $5,800 million and $5,900 million[6] - Adjusted EBITDA guidance for 2025 is projected to be between $1,160 million and $1,200 million[6] - Adjusted earnings per share from continuing operations is expected to be in the range of $4.67 to $4.96 for 2025[6] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[19] - The company anticipates continued growth in patient volumes and revenues, driven by strategic expansions and new service offerings[37] Balance Sheet Highlights - Total assets increased to $6,534.7 million as of December 31, 2024, up from $6,102.4 million in 2023, representing a growth of 7.1%[17] - Total current liabilities increased to $841.0 million as of December 31, 2024, from $656.4 million in 2023, a rise of 28.1%[17] - Long-term debt, net of current portion, decreased to $2,359.2 million as of December 31, 2024, from $2,687.8 million in 2023, a reduction of 12.2%[17] - The company reported a total shareholders' equity of $2,792.7 million as of December 31, 2024, up from $2,255.2 million in 2023, reflecting a growth of 23.8%[17] Other Financial Details - The company reported a loss on early extinguishment of debt of $0.6 million for the year ended December 31, 2024[28] - Stock-based compensation for the year 2024 was $48.3 million, compared to $50.6 million in 2023, showing a decrease of 4.5%[28][29] - The provision for income tax expense for the year 2024 was $150.2 million, compared to $132.2 million in 2023, an increase of 13.1%[28][29] - The company experienced a change in fair market value of equity securities, resulting in a gain of $1.0 million for the year ended December 31, 2024[28] - The company reported a loss from discontinued operations of $0.4 million in Q4 2024, compared to a gain of $8.5 million in Q4 2023[31] - Provision for income tax expense for the year ended December 31, 2024, was $150.2 million, compared to $132.2 million in 2023, indicating a 13.3% increase[31]