The Birmingham, Alabama-based post-acute care provider's CEO said volumes "recovered substantially" in Q3.
Encompass Health saw net operating revenues increase 1.1% in Q3 while its adjusted EBITDA slid 0.6%, according to the company's latest earnings report released Wednesday afternoon.
The Birmingham, Alabama-based post-acute care provider reported cash flows provided by operating activities of $173.4 million, marking a 51.6% year-over-year increase, though income from continuing operations attributable to the company per diluted share was $0.78, a decrease of 20.4%.
As part of the mixed financials, Encompass also achieved an adjusted cash flow of $124.1 million, up 13.2% for the quarter, while adjusted earnings per share (EPS) fell 16.1%.
Still, Encompass paid a quarterly dividend of $0.28 per share and declared a quarterly cash dividend of the same amount that will be paid in January 2021.
During the quarter, Encompass announced plans to build seven new inpatient rehabilitation hospitals as well as 36 beds to existing hospitals.
"Our teams are doing an extraordinary job in managing through the COVID-19 pandemic," Mark Tarr, CEO of Encompass, said in a statement. "Our volumes recovered substantially in the third quarter, and we remain confident in the longer-term outlook for our company."
Forward looking, Encompass released its guidance for Q4, which included new operating revenues in the range of $1.15 billion to $1.22 billion, adjusted EBITDA between $225 million to $240 million, and adjusted EPS from continuing operations attributable to the company between $0.79 to $0.90.
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