Encompass Health reports results for fourth quarter 2020 & issues full-year 2021 guidance and longer term growth targets.

BIRMINGHAM, Ala: Encompass Health Corporation (NYSE: EHC), a national leader in integrated healthcare, offering facility-based and home-based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies, today reported its results of operations for the fourth quarter ended December 31, 2020.

"We are pleased with our performance in 2020, which demonstrates the resiliency of our business model," said President and Chief Executive Officer of Encompass Health Mark Tarr. "Throughout the past year, we have continued to successfully meet the needs of our patients, employees and business partners. As we look ahead into 2021, we remain confident in our business and long-term prospects."

Consolidated results

Growth

Q4 2020

Q4 2019

Dollars

Percent

(In Millions, Except per Share Data)

Net operating revenues

$

1,214.4

$

1,184.4

$

30.0

2.5

%

Income from continuing operations attributable to Encompass Health per diluted share

0.86

0.68

0.18

26.5

%

Adjusted earnings per share

0.93

0.85

0.08

9.4

%

Cash flows provided by operating activities

279.7

215.6

64.1

29.7

%

Adjusted EBITDA

239.9

238.2

1.7

0.7

%

Adjusted free cash flow

213.0

136.9

76.1

55.6

%

Year Ended December 31,

2020

2019

Cash flows provided by operating activities

$

704.7

$

635.3

69.4

10.9

%

Adjusted free cash flow

579.9

516.5

63.4

12.3

%

Revenue growth resulted from favorable pricing in the inpatient rehabilitation segment partially offset by decreased volumes in both segments and a pricing decrease in the home health and hospice segment.

The increase in income from continuing operations attributable to Encompass Health per diluted share and adjusted earnings per share in 2020 resulted primarily from decreased stock-based compensation resulting from the final exercise of the Home Health Holdings stock appreciation rights in the first quarter of 2020.

The increase in full-year cash flows provided by operating activities and adjusted free cash flow resulted primarily from a decrease in working capital and lower payments for cash taxes.

See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.

Inpatient rehabilitation segment results

Growth

Q4 2020

Q4 2019

Dollars

Percent

Net operating revenues:

(In Millions)

Inpatient

$

914.9

$

873.5

$

41.4

4.7

%

Outpatient and other

18.2

23.2

(5.0)

(21.6)

%

Total segment revenue

$

933.1

$

896.7

$

36.4

4.1

%

(Actual Amounts)

Discharges

46,503

47,885

(1,382)

(2.9)

%

Same-store discharge growth

(3.8)

%

Net patient revenue per discharge

$

19,674

$

18,242

$

1,432

7.9

%

Revenue reserves related to bad debt as a percent of revenue

2.2

%

1.7

%

50 basis points

(In Millions)

Adjusted EBITDA

$

218.0

$

225.1

$

(7.1)

(3.2)

...