Encompass Health Corporation · NYSE:EHC
Encompass Health — HealthSouth — Shareholder Meeting (May 2012)
7 slides from Encompass Health's shareholder meeting presentation, May 3, 2012
Slide 1: Annual Stockholder Meeting
Annual Stockholder Meeting May 3, 2012 1
Slide 2: 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
Slide 3: Key Performance Measures
Key Performance Measures Over the past several years, HealthSouth has consistently outperformed the industry in discharge growth and quality of patient outcomes. Patient Quality vs. Industry 34 FIM Gain 32 Change in 30 Functional Independence 28 Measurement 26 (based on an 18 24 point assessment) 1Q
Slide 4: Debt Maturity Profile
Debt Maturity Profile HealthSouth is now positioned with a lower-cost, flexible capital structure… Additional debt pre-payment opportunities and flexible covenants (1) No near-term maturities and well-spaced debt maturities Limited exposure to higher interest rates March 31, 2012 (2) 10% 10of
Slide 5: Debt and Liquidity
Debt and Liquidity Liquidity Debt Outstanding March 31, Dec. 31, 2012 2011 5.6x(1) Cash Available $ 44.3 $ 30.1 Revolver Total Line $ 500.0 $ 500.0 $1.81 Less: – Draws (125.0) (110.0) $1.66 – Letters of credit (44.4) (44.6) Available $ 330.6 $ 345.4 2.7x(1) (billions) $1.51 Total Liquidity $ 374.9 $
Slide 6: Priorities for Reinvesting HealthSouth's Free Cash Flows
Priorities for Reinvesting HealthSouth’s Free Cash Flows (millions) 2012 Assumptions •Growth in core business Bed expansions $20 to $25 (80-100 beds) Priorities Growth De novo hospitals $50 to $70 (complete Ocala; start 4 others) Acquisitions (target 2/year) TBD − Free standing IRFs − Hospital
Slide 7: Business Outlook: 2012 to 2014
Business Outlook: 2012 to 2014 Business Model • Adjusted EBITDA CAGR: 5-8% (1)(2) • Adjusted Free Cash Flow CAGR: 12-17% (1)(2) Strategy 2011 2012 2013 2014 Achieved < 3.0x Delevering (3) Debt to EBITDA < 3.0x Debt to EBITDA (subject to operating environment) Same-store Growth (Includes bed expansio