EHC FY 2008 Earnings Report — Encompass Health Corporation Revenue & Financial Results | Market Cap Arena

Encompass Health CorporationEHC

FY 2008 Earnings

Reported February 24, 2009

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2008	Prior Q	FY 2007	QoQ Change	YoY Change
Revenue	$1.8B	—	$1.7B	—	5.3%
Op. Income	$407M	—	$188M	—	116.2%
Gross Margin	97.3%	—	94.2%	—	3.1pp
Net Margin	13.8%	—	37.6%	—	-23.8pp
EPS (Diluted)	$2.62	—	$7.10	—	-63.1%
Free Cash Flow	$153M	—	$191M	—	-20.0%

Revenue Flow

Item	Amount
REVENUE	$1.8B
Cost of Revenue	$49M
GROSS PROFIT	$1.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.1B
SG&A Expenses	$1.1B
Other Expenses	$662M
Operating Expenses	$1.8B
Cost & Expenses	$1.8B
OPERATING INCOME	$407M
Interest Income	$0
Interest Expense	$160M
Other Income/Expenses	-$211M
INCOME BEFORE TAX	$196M
Income Tax Expense	-$70M
Net Income from Continuing Ops	$266M
Net Income from Discontinued Ops	$16M
Other Adjustments	$0
NET INCOME	$252M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$226M
D&A	$82M
EBIT	$355M
EBITDA	$437M
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$1.8B
Cost of Revenue	$49M
GROSS PROFIT	$1.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$1.1B
SG&A Expenses	$1.1B
Other Expenses	$662M
Operating Expenses	$1.8B
Cost & Expenses	$1.8B
OPERATING INCOME	$407M
Interest Income	$0
Interest Expense	$160M
Other Income/Expenses	-$211M
INCOME BEFORE TAX	$196M
Income Tax Expense	-$70M
Net Income from Continuing Ops	$266M
Net Income from Discontinued Ops	$16M
Other Adjustments	$0
NET INCOME	$252M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$226M
D&A	$82M
EBIT	$355M
EBITDA	$437M
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$252M
Depreciation & Amortization	$97M
Stock-Based Compensation	$5M
Deferred Income Tax	$4M
Other Non-Cash Items	-$74M
Change in Working Capital	-$57M
OPERATING CASH FLOW	$227M
Capital Expenditure	-$74M
Acquisitions (Net)	-$15M
Purchases of Investments	-$5M
Sales/Maturities of Investments	$12M
Other Investing Activities	$41M
NET CASH FROM INVESTING	-$40M
Net Debt Issuance	-$264M
Common Stock Repurchased	$0
Common Dividends Paid	-$33M
Other Financing Activities	-$63M
NET CASH FROM FINANCING	-$176M
FREE CASH FLOW	$153M
Net Change in Cash	$12M

Balance Sheet

Item	Amount
Cash & Equivalents	$32M
Short-Term Investments	$20M
Net Receivables	$418M
Inventory	$178M
Other Current Assets	$34M
TOTAL CURRENT ASSETS	$683M
PP&E (Net)	$674M
Goodwill	$415M
Intangible Assets	$43M
Long-Term Investments	$37M
Tax Assets	-$37M
Other Non-Current Assets	$184M
TOTAL NON-CURRENT ASSETS	$1.3B
TOTAL ASSETS	$2.0B
Account Payables	$46M
Short-Term Debt	$25M
Deferred Revenue	$98M
Other Current Liabilities	$586M
TOTAL CURRENT LIABILITIES	$746M
Long-Term Debt	$1.8B
Deferred Revenue NC	$387M
Deferred Tax Liabilities	$30M
Other Non-Current Liabilities	-$371M
TOTAL NON-CURRENT LIABILITIES	$2.3B
TOTAL LIABILITIES	$3.1B
Common Stock	$1M
Additional Paid-In Capital	$3.0B
Retained Earnings	-$3.8B
Treasury Stock	-$312M
Accum. Other Comp. Income	-$3M
Other Equity	-$775M
TOTAL STOCKHOLDERS' EQUITY	-$1.2B
Minority Interest	$82M
TOTAL EQUITY	-$1.1B
TOTAL LIABILITIES & EQUITY	$2.0B
Total Debt	$1.8B
Net Debt	$1.8B