Company: EHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000785161-25-000052
Chunk: 81

Company: Encompass Health Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 81
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 Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. Revenues and expenses are measured in accordance with the policies and procedures described in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements accompanying the 2024 Form 10‑K.

Our Adjusted EBITDA was as follows (in millions):

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

 Six Months Ended June 30, 20252024Net cash provided by operating activities$558.8 $456.2 Interest expense and amortization of debt discounts and fees62.2 69.5 Gain on sale of investments, excluding impairments3.2 1.2 Equity in net income of nonconsolidated affiliates2.3 2.1 Net income attributable to noncontrolling interests in continuing operations(87.8)(58.7)Amortization of debt-related items(4.8)(4.9)Distributions from nonconsolidated affiliates(1.4)(2.0)Current portion of 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