Company: EHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000785161-25-000052
Chunk: 22

Company: Encompass Health Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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 income tax expense87.3 72.4 Change in assets and liabilities11.4 13.4 Cash used in operating activities of discontinued operations1.9 2.7 Asset impairment impact on noncontrolling interests— (7.3)Change in fair market value of equity securities(1.0)0.1 Other0.1 0.1 Adjusted EBITDA$632.2 $544.8 

Reconciliation of Net Income to Adjusted EBITDA

Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Net income$184.9 $146.5 $381.4 $285.3 Loss from discontinued operations, net of tax, attributable to Encompass Health0.9 1.2 1.4 2.5 Net income attributable to noncontrolling interests included in continuing operations(42.8)(32.4)(87.8)(58.7)Provision for income tax expense 51.0 38.3 92.6 76.6 Interest expense and amortization of debt discounts and fees30.4 34.3 62.2 69.5 Loss (gain) on disposal or impairment of assets0.3 (3.0)0.5 10.7 Depreciation and amortization79.9 72.9 159.1 143.2 Stock-based compensation14.3 13.6 23.8 22.9 Change in fair market value of equity securities(0.3)0.4 (1.0)0.1 Asset impairment impact on noncontrolling interests— — — (7.3)Adjusted EBITDA$318.6 $271.8 $632.2 $544.8 

For additional information see the “Results of Operations” section of this Item.

33

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements, see Note 1, Basis of Presentation, to our condensed consolidated financial statements included under Part I, Item 1, Financial Statements (Unaudited), of this report.

Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, an evaluation was carried out by our management, including our chief executive officer and chief financial officer, of the effectiveness of our