Encompass Health Corporation · NYSE:EHC
Encompass Health — HealthSouth — Q2 2008 Earnings Presentation
7 slides from Encompass Health's earnings presentation, Aug 5, 2008
Slide 1: Second Quarter 2008 Earnings Call Supplemental Slides
Exhibit 99.2 Second Quarter 2008 Earnings Call Supplemental Slides 1
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 views with respect to future events and financial performance. These estimates, projections and other forward-looking infor
Slide 3: Revenue
Revenue 2nd Qtr. 2nd Qtr. Year-over-Year 2008 2007 Change Inpatient Revenue (millions) $ 414.1 $ 388.8 6.5% (a) Outpatientand Other Revenue (millions) 47.3 49.9 (5.2%) Consolidated Net Operating Revenues (millions) $ 461.4 $ 438.7 5.2% Discharges 27,188 25,748 5.6% Net Patient Revenue/Discharge $ 15
Slide 4: Expenses
Expenses 2nd Qtr. 2nd Qtr. 2008 2007 Salaries and Benefits (millions) $ 236.7 $ 217.2 Percent of Net Operating Revenues 51.3% 49.5% — Large discharge growth drove some inefficiencies (i.e higher contract labor). Being addressed in second half 2008. — Benefit investment made in 2008 to reduce turnove
Slide 5: Earnings
Earnings (In Millions, Except Per Share Data) 2nd Qtr. 2nd Qtr. 2008 2007 Income from Continuing Operations $ 47.2 $ 4.7 Adjustments: Government, class action, and related settlements (8.6) (25.7) Professional fees -- accounting, tax, and legal 5.3 13.3 Gain on interest rate swap (28.5) (19.0) Adjus
Slide 6: Equity Offering – Use of Proceeds
Equity Offering – Use of Proceeds (In Millions) ProForma Annual Cash Use of Proceeds Interest Savings (a) Redemption of 10.75% Senior Notes due 2016 $ 34.6 $ 3.7 Bond Premium Paid 2.6 - Retirement of 10.750% Senior Subordinated (b) Notes on October 1, 2008 30.3 3.3 Revolver Reduction (Net)(b) 45.1 2
Slide 7: Equity Offering – Pro Forma Accretion
Equity Offering – Pro Forma Accretion (In Millions, Except Per Share Data) SECOND QUARTER 2008 ADJUSTED INCOME After Preferred Before Preferred Dividend Dividend Adjusted Income from Continuing Operations $ 15.4 $ 15.4 Pro Forma Interest Savings (25% of annual savings) 2.9 2.9 Preferred Dividend (6.