The Birmingham, Alabama-based post-acute care provider attributed its revenue metrics to volume and pricing growth.
KEY TAKEAWAYS
Encompass topped $1.1 billion in net operating revenues thanks to strong performing hospice and home health segments.
The provider did report a sharp drop in its cash flows from operating activities, sliding 26.1% to $159.9 million.
The company also expects to produce full-year net operating revenues in the range of $4.5 billion to $4.6 billion.
Encompass Health once again saw net operating revenues rise, topping $1.1 billion according to its Q1 earnings report released Thursday evening.
Income from continuing operations per diluted share rose 22.4% year-over-year to $1.04, while adjusted EBITDA rose 8.8% to $242.9 million.
The Birmingham, Alabama-based post-acute care provider did report a sharp drop in its cash flows from operating activities, sliding 26.1% to $159.9 million.
Still, the company expects to produce full-year net operating revenues in the range of $4.5 billion to $4.6 billion, an adjusted EBITDA between $925 million to $945 million, and adjusted earnings per share (EPS) between $3.71 to $3.85.
C-SUITE PERSPECTIVE:
“The strength of our business model was demonstrated again in the first quarter of 2019 as we made continued progress on our operational and strategic initiatives and generated strong financial results,” Mark Tarr, CEO of Encompass Health, said in a statement.
Net operating revenues for the inpatient rehabilitation segment rose nearly $30 million year-over-year, on the back of $847.6 million from inpatient services.
Hospice continues to be a strong spot for Encompass, rising more than 68.6% year-over-year to $34.4 million, while home health jumped to $219.5 million, an increase of more than $34 million.
Earlier this month, Encompass announced the acquisition of Alabama-based hospice operator Alacare Home Health & Hospice, which brought in $117 million in revenues last year.
Home health admissions rose 12.1% in Q1, while episodes rose at a similar clip, with revenue per episode increasing by 4.2%.
ADDITIONAL ENCOMPASS HEALTH Q1 EARNINGS REPORT HIGHLIGHTS:
- The company’s 2019 guidance does not include the pending acquisition of Alacare.
- Hospice revenue was bolstered by acquisitions and same-store admissions growing 13.7%.
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