Company: EHC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000785161-25-000021
Chunk: 47

Company: Encompass Health Corp
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 consolidated financial statements accompanying the 2024 Form 10‑K. All revenues for our services are generated through external customers. See Note 1, Basis of Presentation, “Net Operating Revenues,” for the disaggregation of our revenues. Our chief operating decision maker (“CODM”) is the chief executive officer. Our CODM evaluates the performance and allocates resources based on adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”). Our CODM primarily considers forecast-to-budget variances and current year actuals to prior year actuals variances to assess performance and to help inform operating decisions, including allocating resources.Selected financial information, including significant segment expenses, for our reportable segment is as follows (in millions):Three Months Ended March 31,20252024Net operating revenues$1,455.4 $1,316.0 Less:Salaries and benefits762.3 711.6 Other operating expenses217.3 190.2 Supplies62.2 58.5 Occupancy costs14.9 14.0 General and administrative expenses43.3 38.9 Net income attributable to noncontrolling interests45.0 33.6 Other segment items(1)(3.2)(3.8)Adjusted EBITDA$313.6 $273.0 (1)Includes interest income, investment gain or loss, and equity in net income of nonconsolidated affiliates.Segment reconciliation (in millions):Three Months Ended March 31,20252024Adjusted EBITDA$313.6 $273.0 Stock-based compensation(9.5)(9.3)Depreciation and amortization(79.2)(70.3)Loss on disposal or impairment of assets(0.2)(13.7)Interest expense and amortization of debt discounts and fees(31.8)(35.2)Net income attributable to noncontrolling interests45.0 26.3 Change in fair market value of equity securities0.7 0.3 Asset impairment impact on noncontrolling interests— 7.3 Income from continuing operations before income tax expense$238.6 $178.4 

14

Encompass Health Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements

Additional detail regarding the revenues of our operating segment by service line follows (in millions):Three Months Ended March 31,20252024Net operating revenues:Inpatient