The Birmingham, Alabama-based post acute care provider saw cash flows slide by nearly 17% year-over-year.
Encompass Health enjoyed a robust Q4 2019 but posted weak financials for the year as a whole, according to the company's latest earnings report released Thursday afternoon.
During the most recent quarter, Encompass reported net operating revenues of $1.1 billion, an increase of 8.1% year-over-year, along with an adjusted EBITDA of $238.2 million, up 7.4% year-over-year.
However, the Birmingham, Alabama–based post acute care provider saw cash flows slide by nearly 17% year-over-year, with adjusted free cash flow down by 4%.
"We had another strong year with solid financial results and significant progress on all of our strategic initiatives," Mark Tarr, CEO of Encompass Health, said in a statement. "In 2020, we will continue to build on our momentum from 2019 with a focus on expanding our footprint across all business lines, increasing clinical collaboration, building stroke market share and developing and implementing innovative post-acute solutions."
Encompass posted adjusted earnings per share (EPS) of $0.85 during Q4, up 6.3% compared to this time last year, along with income from continuing operations attributable to the company per diluted share at $0.68, which represented a 161.5% increase.
The company's inpatient rehabilitation segment remained strong during the quarter, increasing 6% thanks to inpatient net operating revenues rising to $873.5 million.
The hospice segment led the way for the company's net operating revenues, increasing 45% year-over-year for a total of $50.8 million in Q4.
Home health also showed growth, increasing 10% for a total of $236.9 million.
For fiscal year 2020, Encompass projects its net operating revenues in a range between $4.85 billion to $4.95 billion, with an adjusted EBITDA between $935 million to $965 million.
ADDITIONAL Encompass Health Q4 EARNINGS REPORT HIGHLIGHTS:
- General and administrative expenses rose during Q4 2019 to $36.5 million, up $2.5 million year-over-year.
- Net patient revenue per discharge increased nearly 1% year-over-year, totaling $18,242.
For complete financial information, review Encompass Health's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: KIEV, UKRAINE - Jan 11, 2019: Encompass Health, Healthcare company logo seen displayed on smart phone. - Image / Editorial credit: IgorGolovniov / Shutterstock.com