Encompass Health Corporation · NYSE:EHC
Encompass Health — HealthSouth — Corporate Update (September 2005)
24 slides from Encompass Health's corporate update, Sep 13, 2005
Slide 1: Business Update
Exhibit 99 Business Update September 13, 2005
Slide 2: Forward-Looking Statements
Forward-Looking The These estimates There All You subject 2 such information are can estimates to cautioned estimates and various be no actual and assurance contained risks, Statements not and results, other to forward-looking uncertainties place forward-looking that inand this undue any those prese
Slide 3: Forward-Looking Statements (cont.)
Forward-Looking Some Regulatory Resolution Our States 3 ability factors Department of to changes, that successfully outstanding may Statements ofincluding Justice affect litigation, refinance Competitive the (cont.) theaccuracy implementation including our existing pressures of such certain public f
Slide 4: Cautionary Statements Regarding Presentation
Cautionary Our the No statements References Information Actual 4 filing financial recently results made may Statements relating statements filed may for becomprehensive the differ made to period Regarding periods filed materially to information prior ended up Form after Presentation to tofrom Decemb
Slide 5: Cautionary Statements Regarding Presentation (cont'd)
Cautionary Amounts Include Exclude Do reconstruction May 5 not notinclude differ “Restructuring the reflect shown materially Statements results process charges the forof appropriate periods from the may Regarding Charges” relating discontinued the not after results accounting be tounless December Pr
Slide 6: Notes Regarding Presentation of Non-GAAP Financial Measures
Notes The quantification As general restructuring Costs accounting 2003 associated 6 used financial and which Regarding terms, by related with reconstruction, HealthSouth, we charges data of this the classify planned to Presentation contained definition class-action the ascompany’s defined as “Adjus
Slide 7: Notes Regarding Presentation of Non-GAAP Financial Measures (cont'd)
Notes leverage Adjusted Because for results 7 such Regarding indicated periods HealthSouth capacity EBITDA to for Presentation and ashould may such financial currently debt beperiods not service useful measure be ofdoes Non-GAAP considered toability stakeholders notcalculated haveas Financial a abal
Slide 8: Considerations Regarding Current Situation
Considerations There statements, governing The HealthSouth, violations We fourth 8 derive are DOJ are quarter highly in continues athe of these aparticularly number substantial federal as process of leveraged Involving well programs, 2005 its of securities as ofdisclaimers investigation portion thos
Slide 9: Agenda
I. Opening Agenda II. III. IV. V. 9 Questions Operations Liquidity Reconstruction Remarks & John Update Answers Workman Timing Jay Mike Grinney John SnowWorkman
Slide 10: Opening Remarks: Second Quarter 2005 Results
I. Opening 2Q Second Actual Net Personnel Expenses: Cost Other Depreciation Minority Operating Adjusted (a) 10 Amounts 2005 Revenue of225.6 Budget Sales Quarter Results(a) Interest EBITDA Costs Earnings Remarks 238.0 are and $887.6 88.6 Actual Q2 396.6 unaudited, Amortization 22.7 460.0 84.3 $154.0
Slide 11: Uniform Quarterly Discharge Comparison
I. Opening Uniform Quarterly IRF 72,061 70,208 71,620 70,363 70,949 68,477 69,212 67,547 58,000 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 -12.1% 63,143 65,364 68,277 68,457 71,844 -8.8% 2Q Suspension 1st Percentages Data benefit Updated 11 Qtr 2005 Discharges derived 2Q 72,016 02 of 2Q
Slide 12: Agenda
I. Opening Agenda II. III. IV. V. 12 Questions Operations Liquidity Reconstruction Remarks & John Update Answers Workman Timing Jay Mike Grinney John SnowWorkman
Slide 13: Inpatient Division Financial Overview
II. Rev/ Division Financial 2Q Actual Net Personnel Cost Other Total Depreciation Minority Before Corporate Memo: Operating 2Q05 SS IP Medicare Volume Highlights Some All Good PPS (a) excluding 13 Operations 2005 IP OP 2005 facilities Revenue impact of operating Discharges 2Q04 cost 90.9 general Vis
Slide 14: Operations Update: IRF-PPS FY2006 Impact
II. Operations Table Facility New Urban Rural HS HealthSouth 12% 30% Total Industry Estimated (a) 14 Source: %LIP 1,188 13 For-Profit Non-Profit Government of For-Profit Non-Profit Government Classification -Adjust. impact: Projected Federal 461,738 Analysis Update 59 (9) 295 105 603 4Q05 26 Registe
Slide 15: Surgery Division Financial Overview
II. Operations Division Financial 2Q Actual Net Personnel Cost Other Depreciation Minority Before Corporate Memo: Operating 2Q05 Total Same Rev/ Op. Target Highlights Still Facilities Particular (a) excluding 15 2005 2005 Revenue Exp./ target of Case operating Cases Store 2Q04 48.5 33 Budget Corp. s
Slide 16: Outpatient Division Financial Overview
II. Operations Division Financial 2Q Actual Net Personnel Cost Other Depreciation Minority Before Corporate Memo: Operating 2Q05 Total Same Rev/ OP Closed/consolidated Highlights plans (a) excluding 16 2005 2005 Exp/ Revenue of Visit Visits operating for Store 2Q04 28.1 (a) Corp. sales amounts Visit
Slide 17: Diagnostic Division Financial Overview
II. Operations Division Financial 2Q Net Personnel Cost Other Depreciation Minority Before Corporate Memo: Operating 2Q05 Total Rev/ Op. Labor Highlights Same (a) excluding 17 2005 2005 Revenue Exp./ of Scan operating Scans Store store 2Q04 25.5 reductions Corp. sales amounts Actual President: Inter
Slide 18: Corporate/Other Financial Overview
II. Operations Financial Net Personnel Cost Other Total Depreciation Minority Operating 2Q05 Discharges Avg. Outpatient Cases D&A Highlights disposition (a) 18 2005 Revenue of Daily operating Actual based 2Q04 32.5 1,842 sales amounts Interest Overview costs Earnings Statistics Visits 25.4 Census ex
Slide 19: Agenda
I. Opening Agenda II. III. IV. V. 19 Questions Operations Liquidity Reconstruction Remarks & John Update Answers Workman Timing Jay Mike Grinney John SnowWorkman
Slide 20: Restatement Timing: Target Comprehensive Form 10-K
IV. Restatement Target Comprehensive 2004 Completed 4Q 2005 1Q 20 2005 2006 Form Plan 10-K for Filing 2000-2003 Timing FiledAudited Form Financial 10-K Filed Statements
Slide 21: Agenda
I. Opening Agenda II. III. IV. V. 21 Questions Operations Liquidity Reconstruction Remarks & John Update Answers Workman Timing Jay Mike Grinney John SnowWorkman
Slide 22: Liquidity
V. Liquidity (dollars March Available Restricted Consolidated Interest CMS/DOJ—Civil (a) 22 Restricted 31, payments inCash Cash(a) millions) 2005 Cash cash $256.0 June were settlement $248.6 includes $504.6 30, $132.9 $104.6 2005 $225.3 $358.2 non-consolidated payments million for were 2Q05 $22.3 pa
Slide 23: Agenda
I. Opening Agenda II. III. IV. V. 23 Questions Operations Liquidity Reconstruction Remarks & John Update Answers Workman Timing Jay Mike Grinney John SnowWorkman
Slide 24: Questions and Answers
Questions and Answers 24