Company: EHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000785161-25-000052
Chunk: 15

Company: Encompass Health Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 15
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ovenants. Based on Adjusted EBITDA for the trailing four quarters and the interest rate in effect under our credit agreement during the three-month period ended June 30, 2025, if we had drawn on the first day and maintained the maximum amount of outstanding draws under our revolving credit facility for that entire period, we would still be in compliance with the maximum leverage ratio and minimum interest coverage ratio requirements.

We do not face near-term refinancing risk, as the amounts outstanding under our credit agreement do not mature until 2027, and except for approximately $100 million of our 2025 Notes, our bonds all mature in 2028 and beyond. See Note 5, Long-term Debt, to the accompanying condensed consolidated financial statements, for additional information related to our debt. Also, see the “Contractual Obligations” section below for information related to our contractual obligations as of June 30, 2025.

See the “Results of Operations” section above for information related to our estimated cash tax savings in 2025 resulting from the OBBBA. For a discussion of risks and uncertainties facing us see Item 1A, Risk Factors, under Part II, Other Information, of this report and Item 1A, Risk Factors, of the 2024 Form 10‑K.

Sources and Uses of Cash 

The following table shows the cash flows provided by or used in operating, investing, and financing activities (in millions):

 Six Months Ended June 30, 20252024Net cash provided by operating activities$558.8 $456.2 Net cash used in investing activities(323.9)(288.1)Net cash used in financing activities(220.6)(90.2)Increase in cash, cash equivalents, and restricted cash$14.3 $77.9 

Operating activities. The increase in Net cash provided by operating activities for the six months ended June 30, 2025 compared to the same period of 2024 primarily resulted from an increase in Net income which was driven by growth in Net operating revenues.

Investing activities. The increase in Net cash used in investing activities during the six months ended June 30, 2025 compared to the same period of 2024 primarily resulted from increased Purchases of property, equipment, and intangible assets.

Financing activities. The increase in Net cash used in financing activities during the six months ended June 30, 2025 compared to the same period of 2024 primarily resulted from