Encompass Health Corporation · NYSE:EHC

Encompass Health — Deutsche Bank 37th Annual Healthcare Conference 2012

11 slides from Encompass Health's conference presentation, May 8, 2012

  1. Slide 1: Deutsche Bank 37th Annual Healthcare Conference

    Deutsche Bank 37th Annual Healthcare Conference Boston| May 8, 2012 Jay Grinney, President and Chief Executive Officer

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements The information contained in this presentation includes certain estimates, projections and other forward- looking information that reflect our current outlook, views and plans with respect to future events, including legislative and regulatory developments, strategy, capit

  3. Slide 3: Our Company Portfolio – As of March 31, 2012

    Our Company Portfolio – As of March 31, 2012 Inpatient Rehabilitation Hospitals (“IRF”) 99 • 29 operate as JV’s with Acute Care Hospitals Outpatient Rehabilitation Satellite 26 Clinics 25 Hospital-Based Home Health Agencies 27 + Puerto Rico Number of States ~ 22,000 Employees Key Statistics – Traili

  4. Slide 4: Q1 2012 Highlights

    Q1 2012 Highlights Discharge Volume (million) Net Operating Revenues 40,000 $600 +6.0% +6.4% 30,871 $538.6 29,127 $506.0 20,000 0 $300 Q1 2012 Q1 2011 Q1 2012 Q1 2011 (million) Adjusted EBITDA (1) Earnings Per Share (2) $0.80 $150 +8.1% $127.0 $117.5 $0.57 $75 $0.40 $0.40 $0 $0.00 Q1 2012 Q1 2011 Q1

  5. Slide 5: Priorities for Reinvesting Free Cash Flows

    Priorities for Reinvesting Free Cash Flows (millions) 2012 Q1 2012 Assumptions Actual •Growth in core business  Bed expansions $20 to $25 $5.5 (80-100 beds) Priorities  De novo hospitals $50 to $70 $9.2 Growth (complete Ocala; start 4 others)  Acquisitions (target 2/year) TBD - − Free standing IR

  6. Slide 6: Strong and Sustainable Business Fundamentals

    Strong and Sustainable Business Fundamentals • Favorable demographic trends Attractive Healthcare Sector • Non-discretionary nature of many conditions treated in IRFs • Highly fragmented industry • #1 market share: above industry same-store growth and margins Industry Leading Position • Consistent a

  7. Slide 7: Appendix

    Appendix HEALTHSOUTH,

  8. Slide 8: Reconciliation of Net Income to Adjusted EBITDA

    (1)(3) Reconciliation of Net Income to Adjusted EBITDA 2012 Q1 (in millions, except per share data) Total Per Share Net income $ 56.8 Loss from disc ops, net of tax, attributable to HealthSouth 0.4 Net income attributable to noncontrolling interests (12.6) Income from continuing operations attributa

  9. Slide 9: Reconciliation of Net Income to Adjusted EBITDA

    (1)(3) Reconciliation of Net Income to Adjusted EBITDA 2011 Q1 Q2 Q3 Q4 Full Year (in millions, except per share data) Total Per Share Total Per Share Total Per Share Total Per Share Total Per Share Net income $ 91.5 $ 32.3 $ 68.3 $ 62.5 $ 254.6 (Income) loss from disc ops, net of tax, attributable

  10. Slide 10: Reconciliation Notes for Slides 8-9

    Reconciliation Notes for Slides 8-9 1. Adjusted EBITDA is a non-GAAP financial measure. The Company’s leverage ratio (total consolidated debt to Adjusted EBITDA for the trailing four quarters) is, likewise, a non- GAAP financial measure. Management and some members of the investment community utiliz

  11. Slide 11: Adjusted EBITDA Reconciled to Net Cash Provided by Operating Activities

    Adjusted EBITDA Reconciled to Net Cash Provided by Operating Activities Q1 Full Year (Millions) 2012 2011 2011 2010 Net cash provided by operating activities $ 81.0 $ 89.5 $ 342.7 $ 331.0 Prov ision for doubtful accounts (6.3) (4.8) (21.0) (16.4) Professional fees—accounting, tax, and legal 3.6 3.8

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