Encompass Health has reported a net income attributable to the company of $114.1m for the second quarter (Q2) of 2024, up by 24.8% from $91.4m in the same quarter last year.
The attributable net income in Q2 2024 is also higher than that of the preceding quarter (Q1) of this year, which was $112m.
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A 16.8% increase was witnessed in terms of adjusted earnings per share (EPS) in Q2 2024, which reached $1.11, as against $0.95 in Q2 last year and $1.12 in Q1 2024.
Net operating revenue for the reported quarter, which ended 30 June 2024, totalled $1.30bn, representing a 9.6% increase from $1.18bn in Q2 2023.
The company, which owns and operates inpatient rehabilitation hospitals across the US, attributed its 9.6% revenue growth mainly to a 6.7% increase in discharges, with same-store growth contributing 4.8%.
Additionally, net revenue per discharge rose by 2.0%.
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By GlobalDataIn Q1 2024, the net operating revenue was $1.31bn.
Encompass also reported an increase of 2% in the net patient revenue per discharge, totalling $20,803 in Q2 2024 versus $20,387m in Q2 2023, while it was around $20,990 in Q1 2024.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $271.8m in Q2 2024, an increase of 8.9% from $249.6m in Q2 2023.
However, this is slightly less than the adjusted EBITDA of $273.0m reported in Q1 this year.
For the reported quarter, cash flows from operating activities rose by 5.2% to $217.4m, mainly driven by an increase in net income, though this was partially offset by higher cash tax payments.
Encompass Health CEO and president Mark Tarr said: “We are pleased with our second quarter performance as strong discharge growth facilitated an increase of 9.6% in revenue and 8.9% in Adjusted EBITDA.
“During the quarter, we added 194 beds to our capacity and made continued progress across our key operating initiatives. We also resumed activity under our share repurchase authorisation. We remain highly optimistic about the long-term prospects of our business.”
