Encompass Net Operating Revenues Increase 4%, Guidance Raised

The Birmingham, Alabama-based post-acute care provider released its earnings report one day after announcing a definitive agreement to purchase Frontier Home Health and Hospice assets across five states.

Encompass Health recorded net operating revenues of $1.23 billion in Q1 2021, up 4.1% year-over-year, according to the company's latest earnings report released Tuesday afternoon.

Encompass stated that its revenue growth was the result of "favorable pricing partially offset by decreased volumes in both segments."

Related: Encompass Health's Net Operating Revenues Top $1.2B for Q4 2020

Encompass' inpatient rehabilitation segment revenues were $959.9 billion while home health and hospice segment revenues were $270.5 million. 

The company reported adjusted earnings per share of $1.07, up 20.7% year-over-year, along with an adjusted EBITDA of $250.8 million, an increase of 10% over the same period.

Encompass released its earnings report one day after announcing a definitive agreement to purchase Frontier Home Health and Hospice assets across five states.

Related: Encompass Health Agrees to Make Big Home Health and Hospice Acquisition

Notably, Encompass' cash flows provided by operating activities totaled $158.5 million, a 441% year-over-year increase.

C-suite perspective:

"We're off to an encouraging start in 2021," Mark Tarr, CEO of Encompass, said in a statement. "Our first quarter performance was characterized by promising volume trends that are contributing to solid revenue and EBITDA growth. We are increasing our 2021 guidance to reflect our strong performance and the extension of the suspension of sequestration."

As Tarr remarked, the company raised its guidance for 2021.

Net operating revenues are now projected in a range between $5.06 billion to $5.23 billion, adjusted EBITDA is projected between $1 billion to $1.03 billion, and adjusted earnings per share are projected between $3.94 to $4.16.

For complete financial information, review Encompass Health's filing with the Securities and Exchange Commission.