Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 83

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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, excluding impairments6.2 5.8 Equity in net income of nonconsolidated affiliates3.5 2.8 Net income attributable to noncontrolling interests in continuing operations(135.9)(97.6)Amortization of debt-related items(7.2)(7.3)Distributions from nonconsolidated affiliates(1.4)(3.1)Current portion of income tax expense134.3 110.5 Change in assets and liabilities9.6 (19.1)Cash used in operating activities of discontinued operations2.5 3.7 Asset impairment impact on noncontrolling interests— (7.3)Change in fair market value of marketable securities(2.1)(2.7)Other0.2 — Adjusted EBITDA$932.3 $814.1 

33

Reconciliation of Net Income to Adjusted EBITDA

Three Months Ended September 30,Nine Months Ended September 30, 2025202420252024Net income$174.6 $147.1 $556.0 $432.4 Loss from discontinued operations, net of tax, attributable to Encompass Health0.4 0.7 1.8 3.2 Net income attributable to noncontrolling interests included in continuing operations(48.1)(38.9)(135.9)(97.6)Provision for income tax expense44.9 36.0 137.5 112.6 Interest expense and amortization of debt discounts and fees30.8 34.9 93.0 104.4 Depreciation and amortization82.4 78.4 241.5 221.6 Loss on early extinguishment of debt— 0.4 — 0.4 Loss on disposal or impairment of assets1.9 0.6 2.4 11.3 Stock-based compensation14.3 12.9 38.1 35.8 Asset impairment impact on noncontrolling interests— — — (7.3)Change in fair market value of marketable securities(1.1)(2.8)(2.1)(2.7)Adjusted EBITDA$300.1 $269.3 $932.3 $814.1 

For additional information see the “Results of Operations” section of