• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • Sponsored Placement
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

HealthSouth Reports Strong Results for First Quarter 2012

Revenue Growth of 6.4%

Discharge Growth of 6.0%

Cash Provided by Operating Activities of $81.0 million

Adjusted EBITDA Increased by 8.1%


News provided by

HealthSouth Corporation

Apr 26, 2012, 04:35 ET

Share this article

Share this article


BIRMINGHAM, Ala., April 26, 2012 /PRNewswire/ -- HealthSouth Corporation (NYSE: HLS), the nation's largest owner and operator of inpatient rehabilitation hospitals, today reported its results of operations for the first quarter ended March 31, 2012.

"HealthSouth's first quarter was an excellent start to the year as key operating metrics — discharges, net operating revenues, Adjusted EBITDA, and pre-tax income — all grew significantly compared to last year's first quarter," said Jay Grinney, President and Chief Executive Officer of HealthSouth. "Importantly, we continued to generate significant cash flows from operations and invest in our core business through development of new hospitals, on-going upgrades to existing hospitals, and the installation of our electronic clinical information system. We anticipate opening at least four new hospitals in 2013, with additional openings possible depending on the outcome of several certificate of need proceedings, creating important future value for our shareholders."

First Quarter Results

  • Consolidated net operating revenues were $538.6 million for the first quarter of 2012 compared to $506.0 million for the first quarter of 2011, or an increase of 6.4%. This increase was attributable to a 6.0% increase in patient discharges and a 2.2% increase in net patient revenue per discharge. Same-store discharges were 5.0% higher in the first quarter of 2012 compared to the first quarter of 2011. Discharge growth was enhanced during the first quarter of 2012 compared to the same period of 2011 by the additional day in February due to leap year. Net patient revenue per discharge increased in the first quarter of 2012 compared to the same period of 2011 primarily due to pricing adjustments from Medicare and managed care payors, a higher percentage of neurological cases which increased the average acuity for the patients we served, and a higher percentage of Medicare patients.
  • Income from continuing operations attributable to HealthSouth per diluted share for the first quarter of 2012 was $0.40 per share compared to $0.57 per share for the same period of 2011. Earnings per share for the first quarter of 2012 reflected strong operating results and an effective income tax rate of approximately 40%. Earnings per share in the first quarter of 2011 reflected an effective income tax rate benefit of approximately (14%) due primarily to a $0.27 per diluted share income tax benefit that resulted from a settlement of federal income tax claims with the Internal Revenue Service for tax years 2007 and 2008 and a reduction in unrecognized tax benefits due to the lapse of the statute of limitations for certain federal and state claims.
  • Cash flows provided by operating activities were $81.0 million for the three months ended March 31, 2012 compared to $89.5 million for the same period of 2011, reflective of anticipated increases in working capital during the first quarter of 2012. Specifically, an increase in payroll liabilities primarily related to the vesting of one of the tranches of our long-term equity incentive plan and the timing of interest payments on long-term debt caused the increase in working capital. The timing difference related to interest payments was a result of our refinancing activities in 2011, and it will reverse in the second quarter of 2012.   
  • Adjusted EBITDA (see attached supplemental information) for the three months ended March 31, 2012 was $127.0 million compared to $117.5 million for the three months ended March 31, 2011, or an increase of 8.1%. This improvement was primarily driven by continued revenue growth as well as improved operating leverage and labor productivity.
  • Adjusted free cash flow (see attached supplemental information) for the three months ended March 31, 2012 was $45.2 million compared to $48.2 million for the same period of 2011. Adjusted free cash flow for the quarter ended March 31, 2012 reflected expected increases in working capital and the planned investment in our electronic clinical information system.

"During the first quarter of 2012, we continued to improve our balance sheet by repurchasing 25,000 shares of our convertible perpetual preferred stock," said Doug Coltharp, Executive Vice President and Chief Financial Officer of HealthSouth. "This action has the benefit of eliminating the 6.5% annual dividend obligation on the repurchased shares and reducing our diluted share count by 0.8 million shares. Our top priority for investing adjusted free cash flow remains the pursuit of compelling growth opportunities within our core business, and we expect to augment this strategy with opportunistic repurchases of our debt and equity securities."

2012 Guidance

In the Company's Current Report on Form 8-K dated February 23, 2012 and related earnings release, the Company provided 2012 guidance which consisted of Adjusted EBITDA in the range of $475 million to $485 million and income from continuing operations attributable to HealthSouth per share in the range of $1.32 to $1.39 per share.

Based on its results for the first quarter of 2012, the Company expects its 2012 full-year results to be at the high end of, or higher than, these guidance ranges.

Earnings Conference Call and Webcast

The Company will host an investor conference call at 9:30 a.m. Eastern Time on Friday, April 27, 2012 to discuss its results for the first quarter of 2012. For reference during the call, the Company will post certain supplemental slides at http://investor.healthsouth.com.

The conference call may be accessed by dialing 877-587-6761 and giving the pass code 60651613. 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 at http://investor.healthsouth.com by clicking on an available link.

A replay of the conference call will be available, beginning approximately two hours after the completion of the conference call, from April 27, 2012 until May 11, 2012. To access the replay, please dial 800-585-8367. International callers should dial 404-537-3406. The webcast will also be archived for replay purposes after the live broadcast at http://investor.healthsouth.com.

About HealthSouth

HealthSouth is the nation's largest owner and operator of inpatient rehabilitation hospitals in terms of revenues, number of hospitals, and patients treated and discharged. Operating in 27 states across the country and in Puerto Rico, HealthSouth serves patients through its network of inpatient rehabilitation hospitals, outpatient rehabilitation satellite clinics, and home health agencies. HealthSouth's hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, orthopedic, cardiac and pulmonary conditions, brain and spinal cord injuries, and amputations. HealthSouth can be found on the Web at www.healthsouth.com.

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 March 31, 2012 (the "March 2012 Form 10-Q"), when filed, as well as the Company's Current Report on Form 8-K filed on April 26, 2012. In addition, the Company will post supplemental slides today on its website at http://investor.healthsouth.com for reference during its April 27, 2012 earnings call.

When filed, the March 2012 Form 10-Q can be found on the Company's website at http://investor.healthsouth.com and the SEC's website at www.sec.gov.

HealthSouth Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 


Three Months Ended March 31,


2012


2011


(In Millions, Except Per Share Data)

Net operating revenues

$

538.6



$

506.0


Less: Provision for doubtful accounts

(6.3)



(4.8)


Net operating revenues less provision for doubtful accounts

532.3



501.2


Operating expenses:




Salaries and benefits

261.0



244.0


Other operating expenses

73.0



70.9


General and administrative expenses

30.0



26.9


Supplies

26.5



25.8


Depreciation and amortization

19.5



19.5


Occupancy costs

12.5



11.6


Loss on disposal of assets

0.8



0.1


Professional fees—accounting, tax, and legal

3.6



3.8


Total operating expenses

426.9



402.6


Interest expense and amortization of debt discounts and fees

23.3



35.1


Other income

(0.9)



(0.6)


Equity in net income of nonconsolidated affiliates

(3.3)



(2.5)


Income from continuing operations before income tax expense (benefit)

86.3



66.6


Provision for income tax expense (benefit)

29.1



(7.4)


Income from continuing operations

57.2



74.0


(Loss) income from discontinued operations, net of tax

(0.4)



17.5


Net income

56.8



91.5


Less: Net income attributable to noncontrolling interests

(12.6)



(11.7)


Net income attributable to HealthSouth

44.2



79.8


Less: Convertible perpetual preferred stock dividends

(6.4)



(6.5)


Less: Repurchase of convertible perpetual preferred stock

(0.5)



—


Net income attributable to HealthSouth common shareholders

$

37.3



$

73.3


Weighted average common shares outstanding:




Basic

94.5



93.1


Diluted

108.7



109.0


Earnings per common share:




Basic:




Income from continuing operations attributable to HealthSouth common shareholders

$

0.40



$

0.60


(Loss) income from discontinued operations, net of tax, attributable to HealthSouth common shareholders

(0.01)



0.19


Net income attributable to HealthSouth common shareholders

$

0.39



$

0.79


Diluted:




Income from continuing operations attributable to HealthSouth common shareholders

$

0.40



$

0.57


(Loss) income from discontinued operations, net of tax, attributable to HealthSouth common shareholders

(0.01)



0.16


Net income attributable to HealthSouth common shareholders

$

0.39



$

0.73


Amounts attributable to HealthSouth common shareholders:




Income from continuing operations

$

44.6



$

62.2


(Loss) income from discontinued operations, net of tax

(0.4)



17.6


Net income attributable to HealthSouth

$

44.2



$

79.8


HealthSouth Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited) 


March 31,
2012


December 31,
2011


(In Millions)

Assets




Current assets:




Cash and cash equivalents

$

44.3



$

30.1


Accounts receivable, net of allowance for doubtful accounts of $22.9 in 2012; $21.4 in 2011

244.0



222.8


Other current assets

142.8



138.1


Total current assets

431.1



391.0


Property and equipment, net

677.2



664.4


Goodwill

421.7



421.7


Intangible assets, net

61.0



57.7


Deferred income tax assets

579.6



608.1


Other long-term assets

124.8



128.3


Total assets

$

2,295.4



$

2,271.2


Liabilities and Shareholders' Equity




Current liabilities:




Accounts payable

$

53.4



$

45.4


Accrued expenses and other current liabilities

261.3



267.8


Total current liabilities

314.7



313.2


Long-term debt, net of current portion

1,246.2



1,235.8


Other long-term liabilities

135.4



133.2



1,696.3



1,682.2


Commitments and contingencies




Convertible perpetual preferred stock

363.2



387.4


Shareholders' equity:




HealthSouth shareholders' equity

149.4



117.0


Noncontrolling interests

86.5



84.6


Total shareholders' equity

235.9



201.6


Total liabilities and shareholders' equity

$

2,295.4



$

2,271.2


HealthSouth Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited) 


Three Months Ended March 31,


2012


2011


(In Millions)

Cash flows from operating activities:




Net income

$

56.8



$

91.5


Loss (income) from discontinued operations

0.4



(17.5)


Adjustments to reconcile net income to net cash provided by operating activities—




Provision for doubtful accounts

6.3



4.8


Depreciation and amortization

19.5



19.5


Equity in net income of nonconsolidated affiliates

(3.3)



(2.5)


Distributions from nonconsolidated affiliates

3.3



2.7


Stock-based compensation

6.1



4.2


Deferred tax expense (benefit)

27.0



(5.3)


Other

1.4



1.1


Increase in assets—




Accounts receivable

(27.5)



(18.5)


Other assets

(4.0)



(14.0)


Increase (decrease) in liabilities—




Accounts payable

6.0



2.5


Accrued payroll

(14.3)



1.8


Accrued interest

(5.8)



10.7


Other liabilities

8.7



6.6


Premium on bond issuance

—



4.1


Government, class action, and related settlements

—



(4.3)


Net cash provided by operating activities of discontinued operations

0.4



2.1


Total adjustments

23.8



15.5


Net cash provided by operating activities

81.0



89.5


HealthSouth Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Continued)

(Unaudited)

 


Three Months Ended March 31,


2012


2011


(In Millions)

Cash flows from investing activities:




Purchases of property and equipment

(27.2)



(13.0)


Capitalized software costs

(6.9)



(2.0)


Purchase of restricted investments

(0.2)



(7.6)


Net change in restricted cash

1.2



10.1


Net settlements on interest rate swaps

—



(10.9)


Other

0.2



0.3


Net cash used in investing activities of discontinued operations

—



(0.3)


Net cash used in investing activities

(32.9)



(23.4)


Cash flows from financing activities:




Proceeds from bond issuance

—



120.0


Borrowings on revolving credit facility

25.0



40.0


Payments on revolving credit facility

(10.0)



(107.0)


Principal payments under capital lease obligations

(2.8)



(3.7)


Repurchase of convertible perpetual preferred stock

(24.7)



—


Dividends paid on convertible perpetual preferred stock

(6.8)



(6.5)


Distributions paid to noncontrolling interests of consolidated affiliates

(13.1)



(13.7)


Other

(1.5)



(2.6)


Net cash (used in) provided by financing activities

(33.9)



26.5


Increase in cash and cash equivalents

14.2



92.6


Cash and cash equivalents at beginning of period

30.1



48.3


Cash and cash equivalents of facilities in discontinued operations at beginning of period

—



0.1


Less: Cash and cash equivalents of facilities in discontinued operations at end of period

—



(0.3)


Cash and cash equivalents at end of period

$

44.3



$

140.7










HealthSouth Corporation and Subsidiaries

Supplemental Information

Earnings Per Share 


Q1 2012


Q1 2011



(In Millions, Except Per Share Data)


Adjusted EBITDA

$

127.0



$

117.5



Interest expense and amortization of debt discounts and fees

(23.3)



(35.1)



Depreciation and amortization

(19.5)



(19.5)



Stock-based compensation expense

(6.1)



(4.2)



Other, including non-cash loss on disposal of assets

(0.8)



(0.1)




77.3



58.6



Certain nonrecurring expenses:





Professional fees—accounting, tax, and legal

(3.6)



(3.8)



Pre-tax income

73.7



54.8



Income tax (expense) benefit

(29.1)

(1)


7.4

(2)


Income from continuing operations (3)

$

44.6



$

62.2








Basic shares

94.5



93.1



Diluted shares

108.7



109.0








Basic earnings per share

$

0.40

(3)


$

0.60

(3)


Diluted earnings per share

$

0.40

(3)


$

0.57

(3)


(1) Cash income tax expense for the quarter ended March 31, 2012 was $2.1 million.

(2) Cash income tax expense for the quarter ended March 31, 2011 was $2.6 million.

(3) Income from continuing operations attributable to HealthSouth.

Reconciliation of Net Income to Adjusted EBITDA

 


Three Months Ended March 31,


2012


2011


(In Millions)

Net income

$

56.8



$

91.5


Loss (income) from discontinued operations, net of tax, attributable to HealthSouth

0.4



(17.6)


Provision for income tax expense (benefit)

29.1



(7.4)


Interest expense and amortization of debt discounts and fees

23.3



35.1


Professional fees—accounting, tax, and legal

3.6



3.8


Net noncash loss on disposal of assets

0.8



0.1


Depreciation and amortization

19.5



19.5


Stock-based compensation expense

6.1



4.2


Net income attributable to noncontrolling interests

(12.6)



(11.7)


Adjusted EBITDA

$

127.0



$

117.5



 

HealthSouth Corporation and Subsidiaries

Supplemental Information

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

 


Three Months Ended

March 31,


Year Ended
December 31,




2012


2011


2011


(In Millions)

Net cash provided by operating activities

$

81.0



$

89.5



$

342.7


Impact of discontinued operations

(0.4)



(2.1)



(9.1)


Net cash provided by operating activities of continuing operations

80.6



87.4



333.6


Capital expenditures for maintenance

(19.1)



(9.1)



(50.8)


Net settlement on interest rate swaps

—



(10.9)



(10.9)


Dividends paid on convertible perpetual preferred stock

(6.8)



(6.5)



(26.0)


Distributions paid to noncontrolling interests of consolidated affiliates

(13.1)



(13.7)



(44.2)


Nonrecurring items:






Income tax refunds related to prior periods

—



(3.0)



(7.9)


Premium received on bond issuance

—



(4.1)



(4.1)


Premium paid on redemption of bonds

—



—



26.9


Cash paid for:






Professional fees—accounting, tax, and legal

3.6



3.8



21.0


Government, class action, and related settlements, including certain settlements related to unclaimed property

—



4.3



5.7


Adjusted free cash flow

$

45.2



$

48.2



$

243.3


For the three months ended March 31, 2012, net cash used in investing activities was $32.9 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended March 31, 2012 was $33.9 million and resulted primarily from net debt borrowings, the repurchase of 25,000 shares of the Company's convertible perpetual preferred stock, distributions paid to noncontrolling interests of consolidated affiliates, and dividends paid on the Company's convertible perpetual preferred stock.

For the three months ended March 31, 2011, net cash used in investing activities was $23.4 million and resulted primarily from capital expenditures, net settlement payments related to interest rate swaps, and purchases of restricted investments offset by a decrease in restricted cash. Net cash provided by financing activities during the three months ended March 31, 2011 was $26.5 million and resulted primarily from the proceeds from the Company's March 2011 bond offering offset by net payments on the Company's revolving credit facility, distributions paid to noncontrolling interests of consolidated affiliates, and dividends paid on the Company's convertible perpetual preferred stock.

For the year ended December 31, 2011, net cash used in investing activities was $24.6 million and resulted primarily from capital expenditures, net settlement payments related to interest rate swaps, and purchases of restricted investments offset by proceeds from the sale of five long-term acute care hospitals in August 2011. Net cash used in financing activities during the year ended December 31, 2011 was $336.4 million and resulted primarily from net debt payments, including the optional redemption of the Company's 10.75% Senior Notes due 2016, distributions paid to noncontrolling interests of consolidated affiliates, and dividends paid on the Company's convertible perpetual preferred stock.

HealthSouth Corporation and Subsidiaries  
Forward-Looking Statements

Statements contained in this press release which are not historical facts 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. All such estimates, projections, and forward-looking information speak only as of the date hereof, and HealthSouth undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information, involve a number of risks and uncertainties, and relate to, among other things, future events, HealthSouth's plan to repurchase its debt or equity securities, effective income tax rates, HealthSouth's business strategy, its financial plans, its future financial performance, or its projected business results or model, or its projected capital expenditures. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by HealthSouth include, but are not limited to, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving the Company, including the Houston HHS-OIG investigation; significant changes in HealthSouth's management team; HealthSouth's ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures consistent with its growth strategy; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for HealthSouth's services by governmental or private payors; changes in the regulation of the healthcare industry at either or both of the federal and state levels, including as part of national healthcare reform and deficit reduction; competitive pressures in the healthcare industry and HealthSouth's response thereto; HealthSouth's ability to obtain and retain favorable arrangements with third-party payors; HealthSouth's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on HealthSouth's labor expenses from potential union activity and staffing shortages; general conditions in the economy and capital markets; the increase in the costs of defending and insuring against alleged professional liability claims and our ability to predict the estimated costs related to such claims; and other factors which may be identified from time to time in HealthSouth's SEC filings and other public announcements, including HealthSouth's Form 10-K for the year ended December 31, 2011 and Form 10-Q for the quarter ended March 31, 2012, when filed.

Media Contact
Casey Lassiter, 205-410-2777  
[email protected]

Investor Relations Contact
Mary Ann Arico, 205-969-6175
[email protected]

SOURCE HealthSouth Corporation

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2022 Cision US Inc.