HEALTHSOUTH Net Income Up 15% for First Quarter

Apr 26, 2001, 01:00 ET from HEALTHSOUTH Corporation

    BIRMINGHAM, Ala., April 26 /PRNewswire/ -- HEALTHSOUTH Corporation
 (NYSE:   HRC) announced operating results for the quarter ended March 31, 2001.
 For the first quarter, HEALTHSOUTH's revenues were $1.090 billion, an increase
 of 7% as compared to $1.021 billion for the first quarter of 2000.  Net income
 for the 2001 quarter was $75.3 million, an increase of 15% compared to net
 income of $65.3 million in the 2000 quarter.  Earnings per share (assuming
 dilution) were $.19 for the 2001 quarter, consistent with consensus Wall
 Street estimates, an increase of 12% as compared to earnings per share
 (assuming dilution) of $.17 in the 2000 quarter.  For the quarter, the
 company's earnings before interest, taxes, depreciation and amortization
 (EBITDA) margin was 27.3%, compared to 26.4% in the first quarter of 2000.
     "The first quarter of 2001 showed a continuation of the improvement in key
 operating statistics that we saw in 2000," said Richard M. Scrushy, Chairman
 of the Board and Chief Executive Officer of HEALTHSOUTH.  "In addition to
 continued growth in revenues, net income and earnings per share, we saw
 favorable same-store volume and pricing trends in the quarter, despite the
 effects of having an extra business day in the 2000 quarter due to the leap
 year.  We are especially pleased with the performance of our surgery center
 operations, which produced same-store volume growth of 4.4% over the 2000
 quarter.  We believe this reflects the early successes of our focused
 syndication efforts in our surgery centers.  During the quarter, we also
 announced the pending divestiture of our occupational medicine operations,
 which closed this week, and of our Richmond, Virginia acute-care hospital,
 which we expect to close near the end of the month. The net proceeds from
 these transactions will be used to pay down bank debt.  We closed out the
 quarter with the announcement of a strategic partnership with Oracle
 Corporation to build the world's first digital hospital, reinforcing our
 position as a leader in healthcare innovation."
     HEALTHSOUTH is the nation's largest provider of outpatient surgery,
 diagnostic imaging and rehabilitative healthcare services, with over 2,000
 locations in all 50 states, the United Kingdom, Australia, Puerto Rico and
 Canada.  HEALTHSOUTH can be found on the Web at www.healthsouth.com .
     HEALTHSOUTH will hold a conference call to discuss its first quarter
 results at 9:00 a.m. Central Time on Thursday, April 26.  Simultaneously with
 the conference call, a webcast of the call will be available to interested
 parties at www.healthsouth.com via an Internet link under the "Investor
 Relations" section and also at www.streetfusion.com .  A replay of the call
 will be available at the same Internet site addresses for 30 days following
 the call.
 
     Statements contained in this press release which are not historical facts
 are forward-looking statements.  Without limiting the generality of the
 preceding statement, all statements in this press release concerning or
 relating to estimated and projected earnings, margins, costs, expenditures,
 cash flows, growth rates and financial results are forward-looking statements.
 In addition, HEALTHSOUTH, through its senior management, may from time to time
 make forward-looking public statements concerning the matters described
 herein.  Such forward-looking statements are necessarily estimates reflecting
 the best judgment of HEALTHSOUTH's senior management based upon current
 information, involve a number of risks and uncertainties and are made pursuant
 to the "safe harbor" provisions of the Private Securities Litigation Reform
 Act of 1995.  HEALTHSOUTH's actual results may differ materially from the
 results anticipated in these forward-looking statements as a result of a
 variety of factors, including those identified in this press release and in
 the public filings made by HEALTHSOUTH with the Securities and Exchange
 Commission, including HEALTHSOUTH's Annual Report on Form 10-K for the year
 ended December 31, 2000 and its Quarterly Reports on Form 10-Q, and forward-
 looking  statements contained in this press release or in other public
 statements of HEALTHSOUTH or its senior management should be considered in
 light of those factors.  There can be no assurance that such factors or other
 factors will not affect the accuracy of such forward-looking statements.
 
                           Summary Operating Results
                (unaudited; in thousands, except per share data)
 
                                                        Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Revenues                                     $ 1,090,462    $ 1,021,335
     Net income                                       $75,311        $65,326
 
     Weighted average common shares outstanding       388,143        385,644
 
     Weighted average common shares and common
       equivalent shares outstanding --
       assuming dilution                              398,456        389,019
     Net income per common share                        $0.19          $0.17
     Net income per common share -- assuming dilution   $0.19          $0.17
 
 
                    HEALTHSOUTH Corporation and Subsidiaries
                       Consolidated Statements of Income
              (UNAUDITED - In thousands, except per share amounts)
 
 
                                                  Three Months Ended March 31,
                                                       2001           2000
 
      Revenues                                     $1,090,462     $1,021,335
 
      Operating unit expenses                         736,046        693,993
      Corporate general and administrative expenses    32,655         34,021
      Provision for doubtful accounts                  24,383         23,256
      Depreciation and amortization                    91,219         89,655
      Interest expense                                 59,420         49,560
      Interest income                                  (2,721)        (2,835)
                                                      941,001        887,650
     Income before income taxes and minority
       interests                                      149,461        133,685
      Provision for income taxes                       49,170         42,651
                                                      100,291         91,034
      Minority interests                              (24,981)       (25,708)
      Net income                                      $75,311        $65,326
 
      Weighted average common shares outstanding      388,143        385,644
 
      Net income per common share                       $0.19          $0.17
 
      Weighted average common shares outstanding --
        assuming dilution                             398,456        389,019
 
      Net income per common share -- assuming
        dilution:                                       $0.19          $0.17
 
      Add-back to income for diluted earnings per share:
        Interest and amortization on convertible
        debt                                              ---            ---
 
                                                           *              *
 
 
      *  The effect of these securities was antidilutive.
 
 
 
                              HEALTHSOUTH Corporation
                          Quarterly Statistics (Unaudited)
 
 
                      1st Qtr    2nd Qtr   3rd Qtr   4th Qtr       Total
 
     Outpatient Division Total Visits:
 
     1999           2,431,015  2,533,341 2,590,112  2,589,238    10,143,706
     2000           2,659,111  2,703,664 2,625,632  2,670,339    10,658,746
     2001           2,590,712                                     2,590,712
 
     Inpatient Division Total Patient Days:
 
     1999             614,686    626,262   608,878    621,349     2,471,175
     2000             647,575    643,441   668,451    650,987     2,610,454
     2001             653,434                                       653,434
 
     Medical Center Division Total Patient Days:
 
     1999              30,537     30,254    27,837     27,621       116,249
     2000              32,288     29,626    30,934     31,470       124,318
     2001              37,154                                        37,154
 
     Surgery Center Division Total Cases:
 
     1999             215,139    220,699   208,468    218,988       863,294
     2000             217,505    220,593   212,647    219,321       870,066
     2001             219,777                                       219,777
 
     Diagnostic Division Total Procedures:
 
     1999             200,496    205,909   191,493    198,728       796,626
     2000             213,505    221,052   242,647    250,621       927,825
     2001             268,645                                       268,645
 
 
     For more information, contact Richard M. Scrushy, Chairman & CEO, or Tadd
 McVay, Senior Vice President and Treasurer, at 205-967-7116
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X21988155
 
 

SOURCE HEALTHSOUTH Corporation
    BIRMINGHAM, Ala., April 26 /PRNewswire/ -- HEALTHSOUTH Corporation
 (NYSE:   HRC) announced operating results for the quarter ended March 31, 2001.
 For the first quarter, HEALTHSOUTH's revenues were $1.090 billion, an increase
 of 7% as compared to $1.021 billion for the first quarter of 2000.  Net income
 for the 2001 quarter was $75.3 million, an increase of 15% compared to net
 income of $65.3 million in the 2000 quarter.  Earnings per share (assuming
 dilution) were $.19 for the 2001 quarter, consistent with consensus Wall
 Street estimates, an increase of 12% as compared to earnings per share
 (assuming dilution) of $.17 in the 2000 quarter.  For the quarter, the
 company's earnings before interest, taxes, depreciation and amortization
 (EBITDA) margin was 27.3%, compared to 26.4% in the first quarter of 2000.
     "The first quarter of 2001 showed a continuation of the improvement in key
 operating statistics that we saw in 2000," said Richard M. Scrushy, Chairman
 of the Board and Chief Executive Officer of HEALTHSOUTH.  "In addition to
 continued growth in revenues, net income and earnings per share, we saw
 favorable same-store volume and pricing trends in the quarter, despite the
 effects of having an extra business day in the 2000 quarter due to the leap
 year.  We are especially pleased with the performance of our surgery center
 operations, which produced same-store volume growth of 4.4% over the 2000
 quarter.  We believe this reflects the early successes of our focused
 syndication efforts in our surgery centers.  During the quarter, we also
 announced the pending divestiture of our occupational medicine operations,
 which closed this week, and of our Richmond, Virginia acute-care hospital,
 which we expect to close near the end of the month. The net proceeds from
 these transactions will be used to pay down bank debt.  We closed out the
 quarter with the announcement of a strategic partnership with Oracle
 Corporation to build the world's first digital hospital, reinforcing our
 position as a leader in healthcare innovation."
     HEALTHSOUTH is the nation's largest provider of outpatient surgery,
 diagnostic imaging and rehabilitative healthcare services, with over 2,000
 locations in all 50 states, the United Kingdom, Australia, Puerto Rico and
 Canada.  HEALTHSOUTH can be found on the Web at www.healthsouth.com .
     HEALTHSOUTH will hold a conference call to discuss its first quarter
 results at 9:00 a.m. Central Time on Thursday, April 26.  Simultaneously with
 the conference call, a webcast of the call will be available to interested
 parties at www.healthsouth.com via an Internet link under the "Investor
 Relations" section and also at www.streetfusion.com .  A replay of the call
 will be available at the same Internet site addresses for 30 days following
 the call.
 
     Statements contained in this press release which are not historical facts
 are forward-looking statements.  Without limiting the generality of the
 preceding statement, all statements in this press release concerning or
 relating to estimated and projected earnings, margins, costs, expenditures,
 cash flows, growth rates and financial results are forward-looking statements.
 In addition, HEALTHSOUTH, through its senior management, may from time to time
 make forward-looking public statements concerning the matters described
 herein.  Such forward-looking statements are necessarily estimates reflecting
 the best judgment of HEALTHSOUTH's senior management based upon current
 information, involve a number of risks and uncertainties and are made pursuant
 to the "safe harbor" provisions of the Private Securities Litigation Reform
 Act of 1995.  HEALTHSOUTH's actual results may differ materially from the
 results anticipated in these forward-looking statements as a result of a
 variety of factors, including those identified in this press release and in
 the public filings made by HEALTHSOUTH with the Securities and Exchange
 Commission, including HEALTHSOUTH's Annual Report on Form 10-K for the year
 ended December 31, 2000 and its Quarterly Reports on Form 10-Q, and forward-
 looking  statements contained in this press release or in other public
 statements of HEALTHSOUTH or its senior management should be considered in
 light of those factors.  There can be no assurance that such factors or other
 factors will not affect the accuracy of such forward-looking statements.
 
                           Summary Operating Results
                (unaudited; in thousands, except per share data)
 
                                                        Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Revenues                                     $ 1,090,462    $ 1,021,335
     Net income                                       $75,311        $65,326
 
     Weighted average common shares outstanding       388,143        385,644
 
     Weighted average common shares and common
       equivalent shares outstanding --
       assuming dilution                              398,456        389,019
     Net income per common share                        $0.19          $0.17
     Net income per common share -- assuming dilution   $0.19          $0.17
 
 
                    HEALTHSOUTH Corporation and Subsidiaries
                       Consolidated Statements of Income
              (UNAUDITED - In thousands, except per share amounts)
 
 
                                                  Three Months Ended March 31,
                                                       2001           2000
 
      Revenues                                     $1,090,462     $1,021,335
 
      Operating unit expenses                         736,046        693,993
      Corporate general and administrative expenses    32,655         34,021
      Provision for doubtful accounts                  24,383         23,256
      Depreciation and amortization                    91,219         89,655
      Interest expense                                 59,420         49,560
      Interest income                                  (2,721)        (2,835)
                                                      941,001        887,650
     Income before income taxes and minority
       interests                                      149,461        133,685
      Provision for income taxes                       49,170         42,651
                                                      100,291         91,034
      Minority interests                              (24,981)       (25,708)
      Net income                                      $75,311        $65,326
 
      Weighted average common shares outstanding      388,143        385,644
 
      Net income per common share                       $0.19          $0.17
 
      Weighted average common shares outstanding --
        assuming dilution                             398,456        389,019
 
      Net income per common share -- assuming
        dilution:                                       $0.19          $0.17
 
      Add-back to income for diluted earnings per share:
        Interest and amortization on convertible
        debt                                              ---            ---
 
                                                           *              *
 
 
      *  The effect of these securities was antidilutive.
 
 
 
                              HEALTHSOUTH Corporation
                          Quarterly Statistics (Unaudited)
 
 
                      1st Qtr    2nd Qtr   3rd Qtr   4th Qtr       Total
 
     Outpatient Division Total Visits:
 
     1999           2,431,015  2,533,341 2,590,112  2,589,238    10,143,706
     2000           2,659,111  2,703,664 2,625,632  2,670,339    10,658,746
     2001           2,590,712                                     2,590,712
 
     Inpatient Division Total Patient Days:
 
     1999             614,686    626,262   608,878    621,349     2,471,175
     2000             647,575    643,441   668,451    650,987     2,610,454
     2001             653,434                                       653,434
 
     Medical Center Division Total Patient Days:
 
     1999              30,537     30,254    27,837     27,621       116,249
     2000              32,288     29,626    30,934     31,470       124,318
     2001              37,154                                        37,154
 
     Surgery Center Division Total Cases:
 
     1999             215,139    220,699   208,468    218,988       863,294
     2000             217,505    220,593   212,647    219,321       870,066
     2001             219,777                                       219,777
 
     Diagnostic Division Total Procedures:
 
     1999             200,496    205,909   191,493    198,728       796,626
     2000             213,505    221,052   242,647    250,621       927,825
     2001             268,645                                       268,645
 
 
     For more information, contact Richard M. Scrushy, Chairman & CEO, or Tadd
 McVay, Senior Vice President and Treasurer, at 205-967-7116
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X21988155
 
 SOURCE  HEALTHSOUTH Corporation

RELATED LINKS

http://www.healthsouth.com