Encompass Health reports results for first quarter 2018 and updates full-year 2018 guidance
"We're off to a good start in 2018 as both segments generated strong volume, revenue, and earnings growth. Based on the strength of these results, we made upward adjustments to our full-year 2018 guidance ranges," said
Consolidated results |
||||||||||||||
Growth |
||||||||||||||
Q1 2018 |
Q1 2017 |
Dollars |
Percent |
|||||||||||
(In Millions, Except per Share Data) |
||||||||||||||
Net operating revenues |
$ |
1,046.0 |
$ |
957.1 |
$ |
88.9 |
9.3 |
% |
||||||
Income from continuing operations attributable to |
0.85 |
0.70 |
0.15 |
21.4 |
% |
|||||||||
Adjusted earnings per share |
0.93 |
0.70 |
0.23 |
32.9 |
% |
|||||||||
Cash flows provided by operating activities |
216.3 |
180.8 |
35.5 |
19.6 |
% |
|||||||||
Adjusted EBITDA |
223.3 |
200.8 |
22.5 |
11.2 |
% |
|||||||||
Adjusted free cash flow |
170.2 |
147.5 |
22.7 |
15.4 |
% |
Revenue growth was driven by volume and pricing growth in the inpatient rehabilitation segment and volume growth in the home health and hospice segment. See the "Other Information" section of this release for discussion of the Company's adoption of a new accounting standard for revenue recognition.
The increase in income from continuing operations attributable to
Growth in cash flows provided by operating activities and adjusted free cash flow resulted primarily from revenue growth and favorable working capital changes.
See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.
Inpatient rehabilitation segment results |
||||||||||||||
Growth |
||||||||||||||
Q1 2018 |
Q1 2017 |
Dollars |
Percent |
|||||||||||
Net operating revenues: |
(In Millions) |
|||||||||||||
Inpatient |
$ |
817.1 |
$ |
752.7 |
$ |
64.4 |
8.6 |
% |
||||||
Outpatient and other |
23.2 |
25.1 |
(1.9) |
(7.6) |
% |
|||||||||
Total segment revenue |
$ |
840.3 |
$ |
777.8 |
$ |
62.5 |
8.0 |
% |
||||||
(Actual Amounts) |
||||||||||||||
Discharges |
45,108 |
42,259 |
2,849 |
6.7 |
% |
|||||||||
Same-store discharge growth |
4.8 |
% |
||||||||||||
Net patient revenue per discharge |
$ |
18,114 |
$ |
17,812 |
$ |
302 |
1.7 |
% |
||||||
(In Millions) |
||||||||||||||
Adjusted EBITDA |
$ |
223.8 |
$ |
205.4 |
$ |
18.4 |
9.0 |
% |
- Revenue - Revenue growth resulted from volume growth and an increase in net patient revenue per discharge. A heavy incidence of influenza at acute care hospitals and the timing of discharges around Easter and
Passover contributed to discharge growth. Discharge growth from new stores resulted from the Company's joint ventures inGulfport, Mississippi (April 2017 ),Westerville, Ohio (April 2017 ), andJackson, Tennessee (July 2017 ), as well as a wholly owned hospital inPearland, Texas (October 2017 ). Growth in net patient revenue per discharge primarily resulted from an increase in Medicare reimbursement rates and a year-over-year reduction in bad debt, which is now a component of revenue (see the "Other Information" section of this release).
The decrease in outpatient and other revenues primarily was due to the continued closures of hospital-based outpatient programs.
- Adjusted EBITDA - The increase in Adjusted EBITDA primarily resulted from revenue growth. Expense ratios in the first quarter of 2018 compared to the first quarter of 2017 benefited from a year-over-year reduction in bad debt, which is now a component of revenue (see the "Other Information" section of this release). Salaries and benefits as a percent of net operating revenues benefited from labor management and higher volumes. Other operating expenses as a percent of net operating revenues increased primarily due to increases in contract services.
Home health and hospice segment results |
||||||||||||||
Growth |
||||||||||||||
Q1 2018 |
Q1 2017 |
Dollars |
Percent |
|||||||||||
Net operating revenues: |
(In Millions) |
|||||||||||||
Home health |
$ |
185.2 |
$ |
163.7 |
$ |
21.5 |
13.1 |
% |
||||||
Hospice and other |
20.5 |
15.6 |
4.9 |
31.4 |
% |
|||||||||
Total segment revenue |
$ |
205.7 |
$ |
179.3 |
$ |
26.4 |
14.7 |
% |
||||||
Home Health Metrics |
||||||||||||||
(Actual Amounts) |
||||||||||||||
Admissions |
33,855 |
30,810 |
3,045 |
9.9 |
% |
|||||||||
Same-store admissions growth |
7.4 |
% |
||||||||||||
Episodes |
56,658 |
49,260 |
7,398 |
15.0 |
% |
|||||||||
Same-store episode growth |
12.7 |
% |
||||||||||||
Revenue per episode |
$ |
2,934 |
$ |
2,978 |
$ |
(44) |
(1.5) |
% |
||||||
(In Millions) |
||||||||||||||
Adjusted EBITDA |
$ |
33.5 |
$ |
23.9 |
$ |
9.6 |
40.2 |
% |
- Revenue - Revenue growth was driven by volume growth. Revenue per episode was negatively impacted by an approximate
$4 million reserve for a Zone Program Integrity Contractor, or ZPIC, audit. Excluding this reserve, revenue per episode would have increased by 0.7% as changes in patient mix offset the impact of Medicare reimbursement rate cuts.
Hospice and other revenue increased primarily due to same-store volume growth and acquisitions in 2017.
- Adjusted EBITDA - Growth in Adjusted EBITDA primarily resulted from revenue growth and improvements in caregiver productivity and efficiency.
Corporate general and administrative expenses |
|||||||||||
Q1 2018 |
% of |
Q1 2017 |
% of |
||||||||
(In Millions) |
|||||||||||
General and administrative expenses, excluding stock-based compensation |
$ |
34.0 |
3.3% |
$ |
28.5 |
3.0% |
|||||
- General and administrative expenses increased as a percent of consolidated revenue due to expenses associated with the Company's rebranding and name change. During the first quarter of 2018, the Company invested
$3.6 million in its rebranding and name change, all of which was included in general and administrative expenses. During the first quarter of 2017, the Company invested$0.5 million in its rebranding and name change.
2018 guidance
Based on its results for the first quarter of 2018 and its current expectations for the remainder of 2018, the Company is increasing its full-year guidance ranges for 2018.
Full-Year 2018 Guidance Ranges |
|||
Previous Guidance |
Updated Guidance |
||
(In Millions, Except Per Share Data) |
|||
Net operating revenues |
|
|
|
Adjusted EBITDA |
|
|
|
Adjusted earnings per share from continuing operations attributable to |
|
|
The above guidance ranges are inclusive of the previously announced definitive agreement to acquire
For additional considerations regarding the Company's 2018 guidance ranges, see the supplemental information posted on the Company's website at http://investor.encompasshealth.com. See also the "Other Information" section below for an explanation of why the Company does not provide guidance for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.
Earnings conference call and webcast
The Company will host an investor conference call at
The conference call may be accessed by dialing 877 587-6761 and giving the pass code 7575309. International callers should dial 706 679-1635 and give the same pass code. Please call approximately ten minutes before the start of the call to ensure you are connected. The conference call will also be webcast live and will be available for on-line replay at http://investor.encompasshealth.com by clicking on an available link.
About
As a national leader in post-acute care,
Other information
The information in this press release is summarized and should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended
During the first quarter of 2018, the Company adopted a new accounting standard (ASC 606 - Revenue from Contracts with Customers) which clarifies the standards for recognizing revenue. The impact to the Company's financial reporting was that amounts previously presented as provision for doubtful became a component of net operating revenues. This had the effect of reducing net operating revenues but was neutral to Adjusted EBITDA and adjusted earnings per share. The Company retrospectively adopted the new standard during the first quarter of 2018, which means previously reported quarterly and full-year results for 2017 have been updated to reflect the requirements of the new standard. For additional information, see the supplemental information posted on the Company's website at http://investor.encompasshealth.com.
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. Reconciliations to their most comparable GAAP measure, except with regard to non-GAAP guidance, are included below or in the Q1 Earnings Form 8-K. Readers are encouraged to review the "Note Regarding Presentation of Non-GAAP Financial Measures" included in the Q1 Earnings Form 8-K which provides further explanation and disclosure regarding the Company's use of these non-GAAP financial measures.
Excluding net operating revenues, the Company does not provide guidance on a GAAP basis because it is unable to predict, with reasonable certainty, the future impact of items that are deemed to be outside the control of the Company or otherwise non-indicative of its ongoing operating performance. Such items include 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 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 operations. These items cannot be reasonably predicted and will depend on several factors, including industry and market conditions, and could be material to the Company's results computed in accordance with GAAP.
However, the following reasonably estimable GAAP measures for 2018 would be included in a reconciliation for Adjusted EBITDA if the other reconciling GAAP measures could be reasonably predicted:
- Interest expense and amortization of debt discounts and fees - estimate of
$147 million to$157 million - Amortization of debt-related items - approximately
$7 million
The Q1 Earnings Form 8-K and, when filed, the
|
|||||||
Condensed Consolidated Statements of Operations |
|||||||
(Unaudited) |
|||||||
Three Months Ended |
|||||||
2018 |
2017 |
||||||
(In Millions, Except per Share Data) |
|||||||
Net operating revenues |
$ |
1,046.0 |
$ |
957.1 |
|||
Operating expenses: |
|||||||
Salaries and benefits |
570.2 |
530.1 |
|||||
Other operating expenses |
141.2 |
127.8 |
|||||
Occupancy costs |
18.6 |
17.9 |
|||||
Supplies |
39.9 |
37.0 |
|||||
General and administrative expenses |
61.1 |
36.5 |
|||||
Depreciation and amortization |
45.9 |
45.2 |
|||||
Total operating expenses |
876.9 |
794.5 |
|||||
Interest expense and amortization of debt discounts and fees |
35.6 |
41.3 |
|||||
Other loss (income) |
0.1 |
(1.0) |
|||||
Equity in net income of nonconsolidated affiliates |
(2.3) |
(2.1) |
|||||
Income from continuing operations before income tax expense |
135.7 |
124.4 |
|||||
Provision for income tax expense |
30.0 |
39.7 |
|||||
Income from continuing operations |
105.7 |
84.7 |
|||||
Loss from discontinued operations, net of tax |
(0.5) |
(0.3) |
|||||
Net income |
105.2 |
84.4 |
|||||
Less: Net income attributable to noncontrolling interests |
(21.4) |
(17.6) |
|||||
Net income attributable to |
$ |
83.8 |
$ |
66.8 |
|||
Weighted average common shares outstanding: |
|||||||
Basic |
97.8 |
88.8 |
|||||
Diluted |
99.4 |
99.0 |
|||||
Earnings per common share: |
|||||||
Basic earnings per share attributable to |
|||||||
Continuing operations |
$ |
0.86 |
$ |
0.75 |
|||
Discontinued operations |
(0.01) |
— |
|||||
Net income |
$ |
0.85 |
$ |
0.75 |
|||
Diluted earnings per share attributable to |
|||||||
Continuing operations |
$ |
0.85 |
$ |
0.70 |
|||
Discontinued operations |
(0.01) |
— |
|||||
Net income |
$ |
0.84 |
$ |
0.70 |
|||
Cash dividends per common share |
$ |
0.25 |
$ |
0.24 |
|||
Amounts attributable to |
|||||||
Income from continuing operations |
$ |
84.3 |
$ |
67.1 |
|||
Loss from discontinued operations, net of tax |
(0.5) |
(0.3) |
|||||
Net income attributable to |
$ |
83.8 |
$ |
66.8 |
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Unaudited) |
|||||||
|
|
||||||
(In Millions) |
|||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
86.4 |
$ |
54.4 |
|||
Restricted cash |
69.4 |
62.4 |
|||||
Accounts receivable |
463.1 |
472.1 |
|||||
Other current assets |
89.6 |
113.3 |
|||||
Total current assets |
708.5 |
702.2 |
|||||
Property and equipment, net |
1,554.3 |
1,517.1 |
|||||
|
1,973.1 |
1,972.6 |
|||||
Intangible assets, net |
396.1 |
403.1 |
|||||
Deferred income tax assets |
68.5 |
63.6 |
|||||
Other long-term assets |
239.1 |
235.1 |
|||||
Total assets |
$ |
4,939.6 |
$ |
4,893.7 |
|||
Liabilities and Shareholders' Equity |
|||||||
Current liabilities: |
|||||||
Current portion of long-term debt |
$ |
32.7 |
$ |
32.3 |
|||
Accounts payable |
83.1 |
78.4 |
|||||
Accrued expenses and other current liabilities |
456.2 |
406.8 |
|||||
Total current liabilities |
572.0 |
517.5 |
|||||
Long-term debt, net of current portion |
2,544.4 |
2,545.4 |
|||||
Other long-term liabilities |
183.8 |
185.3 |
|||||
3,300.2 |
3,248.2 |
||||||
Commitments and contingencies |
|||||||
Redeemable noncontrolling interests |
198.6 |
220.9 |
|||||
Shareholders' equity: |
|||||||
|
1,197.0 |
1,181.7 |
|||||
Noncontrolling interests |
243.8 |
242.9 |
|||||
Total shareholders' equity |
1,440.8 |
1,424.6 |
|||||
Total liabilities and shareholders' equity |
$ |
4,939.6 |
$ |
4,893.7 |
|
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
Three Months Ended |
|||||||
2018 |
2017 |
||||||
(In Millions) |
|||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
105.2 |
$ |
84.4 |
|||
Loss from discontinued operations, net of tax |
0.5 |
0.3 |
|||||
Adjustments to reconcile net income to net cash provided by operating activities— |
|||||||
Depreciation and amortization |
45.9 |
45.2 |
|||||
Stock-based compensation |
26.1 |
8.0 |
|||||
Deferred tax (benefit) expense |
(3.0) |
49.0 |
|||||
Other, net |
1.6 |
2.5 |
|||||
Change in assets and liabilities, net of acquisitions— |
|||||||
Accounts receivable |
8.3 |
(3.6) |
|||||
Other assets |
14.2 |
(16.4) |
|||||
Accounts payable |
1.3 |
(1.7) |
|||||
Accrued payroll |
(9.5) |
(3.0) |
|||||
Other liabilities |
26.4 |
16.5 |
|||||
Net cash used in operating activities of discontinued operations |
(0.7) |
(0.4) |
|||||
Total adjustments |
110.6 |
96.1 |
|||||
Net cash provided by operating activities |
216.3 |
180.8 |
|||||
Cash flows from investing activities: |
|||||||
Purchases of property and equipment |
(59.9) |
(41.2) |
|||||
Acquisitions of businesses, net of cash acquired |
(0.6) |
(16.4) |
|||||
Other, net |
(0.1) |
8.5 |
|||||
Net cash used in investing activities |
(60.6) |
(49.1) |
|||||
Cash flows from financing activities: |
|||||||
Borrowings on revolving credit facility |
95.0 |
55.0 |
|||||
Payments on revolving credit facility |
(95.0) |
(122.0) |
|||||
Repurchases of common stock, including fees and expenses |
— |
(18.1) |
|||||
Dividends paid on common stock |
(25.4) |
(22.2) |
|||||
Purchase of equity interests in consolidated affiliates |
(65.1) |
— |
|||||
Proceeds from exercising stock warrants |
— |
26.6 |
|||||
Distributions paid to noncontrolling interests of consolidated affiliates |
(15.4) |
(11.5) |
|||||
Other, net |
(10.8) |
(14.1) |
|||||
Net cash used in financing activities |
(116.7) |
(106.3) |
|||||
Increase in cash, cash equivalents, and restricted cash |
39.0 |
25.4 |
|||||
Cash, cash equivalents, and restricted cash at beginning of period |
116.8 |
101.4 |
|||||
Cash, cash equivalents, and restricted cash at end of period |
$ |
155.8 |
$ |
126.8 |
|||
Reconciliation of Cash, Cash Equivalents, and Restricted Cash |
|||||||
Cash and cash equivalents at beginning of period |
$ |
54.4 |
$ |
40.5 |
|||
Restricted cash at beginning of period |
62.4 |
60.9 |
|||||
Cash, cash equivalents, and restricted cash at beginning of period |
$ |
116.8 |
$ |
101.4 |
|||
Cash and cash equivalents at end of period |
$ |
86.4 |
$ |
61.2 |
|||
Restricted cash at end of period |
69.4 |
65.6 |
|||||
Cash, cash equivalents, and restricted cash at end of period |
$ |
155.8 |
$ |
126.8 |
|
|||||||
Supplemental Information |
|||||||
Earnings Per Share |
|||||||
Three Months Ended |
|||||||
2018 |
2017 |
||||||
(In Millions, Except Per Share Data) |
|||||||
Adjusted EBITDA |
$ |
223.3 |
$ |
200.8 |
|||
Depreciation and amortization |
(45.9) |
(45.2) |
|||||
Interest expense and amortization of debt discounts and fees |
(35.6) |
(41.3) |
|||||
Stock-based compensation expense |
(26.1) |
(8.0) |
|||||
Noncash (loss) gain on disposal of assets |
(0.8) |
0.5 |
|||||
114.9 |
106.8 |
||||||
Certain items non-indicative of ongoing operating performance: |
|||||||
Transaction costs |
(1.0) |
— |
|||||
SARs mark-to-market impact on noncontrolling interests |
1.0 |
— |
|||||
Change in fair market value of equity securities |
(0.6) |
— |
|||||
Pre-tax income |
114.3 |
106.8 |
|||||
Income tax expense |
(30.0) |
(39.7) |
|||||
Income from continuing operations (1) |
$ |
84.3 |
$ |
67.1 |
|||
Basic shares |
97.8 |
88.8 |
|||||
Diluted shares |
99.4 |
99.0 |
|||||
Basic earnings per share (1) |
$ |
0.86 |
$ |
0.75 |
|||
Diluted earnings per share (1) |
$ |
0.85 |
$ |
0.70 |
|||
(1) Income from continuing operations attributable to |
|
|||||||
Supplemental Information |
|||||||
Adjusted Earnings Per Share |
|||||||
Q1 |
|||||||
2018 |
2017 |
||||||
Earnings per share, as reported |
$ |
0.85 |
$ |
0.70 |
|||
Adjustments, net of tax: |
|||||||
Mark-to-market adjustments for stock appreciation rights |
0.08 |
0.02 |
|||||
Transaction costs |
0.01 |
— |
|||||
Income tax adjustments |
— |
(0.03) |
|||||
Adjusted earnings per share(1) |
$ |
0.93 |
$ |
0.70 |
|||
(1) Adjusted EPS may not sum due to rounding. |
|
|||||||||||||||||||||||
Supplemental Information |
|||||||||||||||||||||||
Adjusted Earnings Per Share |
|||||||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||||||
Adjustments |
|||||||||||||||||||||||
As |
Mark-to- |
Income Tax |
Transaction |
Change in |
As |
||||||||||||||||||
(In Millions, Except Per Share Amounts) |
|||||||||||||||||||||||
Adjusted EBITDA(1) |
$ |
223.3 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
223.3 |
|||||||||||
Depreciation and amortization |
(45.9) |
— |
— |
— |
— |
(45.9) |
|||||||||||||||||
Interest expense and amortization of debt discounts and fees |
(35.6) |
— |
— |
— |
— |
(35.6) |
|||||||||||||||||
Stock-based compensation |
(26.1) |
11.6 |
— |
— |
— |
(14.5) |
|||||||||||||||||
Loss on disposal of assets |
(0.8) |
— |
— |
— |
— |
(0.8) |
|||||||||||||||||
Transaction costs |
(1.0) |
— |
— |
1.0 |
— |
— |
|||||||||||||||||
SARs mark-to-market impact on noncontrolling interests |
1.0 |
(1.0) |
— |
— |
— |
— |
|||||||||||||||||
Change in fair market value of equity securities |
(0.6) |
— |
— |
— |
0.6 |
— |
|||||||||||||||||
Income from continuing operations before income tax expense |
114.3 |
10.6 |
— |
1.0 |
0.6 |
126.5 |
|||||||||||||||||
Provision for income tax expense |
(30.0) |
(3.0) |
(0.2) |
(0.3) |
(0.2) |
(33.7) |
|||||||||||||||||
Income from continuing operations attributable to |
$ |
84.3 |
$ |
7.6 |
$ |
(0.2) |
$ |
0.7 |
$ |
0.4 |
$ |
92.8 |
|||||||||||
Add: Interest, amortization, and loss on extinguishment of convertible debt, net of tax |
— |
— |
|||||||||||||||||||||
Numerator for diluted earnings per share |
$ |
84.3 |
$ |
92.8 |
|||||||||||||||||||
Diluted earnings per share from continuing operations(2) |
$ |
0.85 |
$ |
0.08 |
$ |
— |
$ |
0.01 |
$ |
— |
$ |
0.93 |
|||||||||||
Diluted shares used in calculation |
99.4 |
||||||||||||||||||||||
(1) See reconciliation of net income to Adjusted EBITDA |
|||||||||||||||||||||||
(2) Adjusted EPS may not sum across due to rounding. |
|
|||||||||||||||
Supplemental Information |
|||||||||||||||
Adjusted Earnings Per Share |
|||||||||||||||
For the Three Months Ended |
|||||||||||||||
Adjustments |
|||||||||||||||
As |
Mark-to-Market |
Income Tax |
As |
||||||||||||
(In Millions, Except Per Share Amounts) |
|||||||||||||||
Adjusted EBITDA(1) |
$ |
200.8 |
$ |
— |
$ |
— |
$ |
200.8 |
|||||||
Depreciation and amortization |
(45.2) |
— |
— |
(45.2) |
|||||||||||
Interest expense and amortization of debt discounts and fees |
(41.3) |
— |
— |
(41.3) |
|||||||||||
Stock-based compensation |
(8.0) |
3.3 |
— |
(4.7) |
|||||||||||
Gain on disposal of assets |
0.5 |
— |
— |
0.5 |
|||||||||||
Income from continuing operations before income tax expense |
106.8 |
3.3 |
— |
110.1 |
|||||||||||
Provision for income tax expense |
(39.7) |
(1.3) |
(2.6) |
(43.6) |
|||||||||||
Income from continuing operations attributable to |
$ |
67.1 |
$ |
2.0 |
$ |
(2.6) |
$ |
66.5 |
|||||||
Add: Interest on convertible debt, net of tax |
2.5 |
2.5 |
|||||||||||||
Numerator for diluted earnings per share |
$ |
69.6 |
$ |
69.0 |
|||||||||||
Diluted earnings per share from continuing operations(2) |
$ |
0.70 |
$ |
0.02 |
$ |
(0.03) |
$ |
0.70 |
|||||||
Diluted shares used in calculation |
99.0 |
||||||||||||||
(1) See reconciliation of net income to Adjusted EBITDA |
|||||||||||||||
(2) Adjusted EPS may not sum across due to rounding. |
|
|||||||
Supplemental Information |
|||||||
Reconciliation of Net Income to Adjusted EBITDA |
|||||||
Three Months Ended |
|||||||
2018 |
2017 |
||||||
(In Millions) |
|||||||
Net income |
$ |
105.2 |
$ |
84.4 |
|||
Loss from discontinued operations, net of tax, attributable to |
0.5 |
0.3 |
|||||
Net income attributable to noncontrolling interests |
(21.4) |
(17.6) |
|||||
Provision for income tax expense |
30.0 |
39.7 |
|||||
Interest expense and amortization of debt discounts and fees |
35.6 |
41.3 |
|||||
Depreciation and amortization |
45.9 |
45.2 |
|||||
Net noncash loss (gain) on disposal of assets |
0.8 |
(0.5) |
|||||
Stock-based compensation expense |
26.1 |
8.0 |
|||||
Transaction costs |
1.0 |
— |
|||||
SARs mark-to-market impact on noncontrolling interests |
(1.0) |
— |
|||||
Change in fair market value of equity securities |
0.6 |
— |
|||||
Adjusted EBITDA |
$ |
223.3 |
$ |
200.8 |
Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense |
|||||||
Three Months Ended |
|||||||
2018 |
2017 |
||||||
(In Millions) |
|||||||
Total segment Adjusted EBITDA |
$ |
257.3 |
$ |
229.3 |
|||
General and administrative expenses |
(61.1) |
(36.5) |
|||||
Depreciation and amortization |
(45.9) |
(45.2) |
|||||
(Loss) gain on disposal of assets |
(0.8) |
0.5 |
|||||
Interest expense and amortization of debt discounts and fees |
(35.6) |
(41.3) |
|||||
Net income attributable to noncontrolling interests |
21.4 |
17.6 |
|||||
SARs mark-to-market impact on noncontrolling interests |
1.0 |
— |
|||||
Change in fair market value of equity securities |
(0.6) |
— |
|||||
Income from continuing operations before income tax expense |
$ |
135.7 |
$ |
124.4 |
|
|||||||
Supplemental Information |
|||||||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA |
|||||||
Three Months Ended |
|||||||
2018 |
2017 |
||||||
(In Millions) |
|||||||
Net cash provided by operating activities |
$ |
216.3 |
$ |
180.8 |
|||
Interest expense and amortization of debt discounts and fees |
35.6 |
41.3 |
|||||
Equity in net income of nonconsolidated affiliates |
2.3 |
2.1 |
|||||
Net income attributable to noncontrolling interests in continuing operations |
(21.4) |
(17.6) |
|||||
Amortization of debt-related items |
(1.0) |
(3.5) |
|||||
Distributions from nonconsolidated affiliates |
(1.2) |
(2.1) |
|||||
Current portion of income tax expense (benefit) |
33.0 |
(9.3) |
|||||
Change in assets and liabilities |
(40.7) |
8.2 |
|||||
Cash used in operating activities of discontinued operations |
0.7 |
0.4 |
|||||
Transaction costs |
1.0 |
— |
|||||
SARs mark-to-market impact on noncontrolling interests |
(1.0) |
— |
|||||
Change in fair market value of equity securities |
0.6 |
— |
|||||
Other |
(0.9) |
0.5 |
|||||
Consolidated Adjusted EBITDA |
$ |
223.3 |
$ |
200.8 |
|
|||||||
Supplemental Information |
|||||||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow |
|||||||
Three Months Ended |
|||||||
2018 |
2017 |
||||||
(In Millions) |
|||||||
Net cash provided by operating activities |
$ |
216.3 |
$ |
180.8 |
|||
Impact of discontinued operations |
0.7 |
0.4 |
|||||
Net cash provided by operating activities of continuing operations |
217.0 |
181.2 |
|||||
Capital expenditures for maintenance |
(36.1) |
(22.2) |
|||||
Distributions paid to noncontrolling interests of consolidated affiliates |
(15.4) |
(11.5) |
|||||
Items non-indicative of ongoing operations: |
|||||||
Transaction costs and related assumed liabilities |
0.4 |
— |
|||||
Cash paid for SARs exercise |
4.3 |
— |
|||||
Adjusted free cash flow |
$ |
170.2 |
$ |
147.5 |
For the three months ended
For the three months ended
Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as those relating to financial guidance and assumptions, balance sheet and cash flow plans, and anticipated acquisitions, are forward-looking statements. In addition,
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