This is the Tagline, edited under "Misc Content"
HEALTHSOUTH Corporation
"We showed strong operational performance in the first quarter of 2002," said Richard M. Scrushy, Chairman of the Board and Chief Executive Officer of HEALTHSOUTH. "Our first wave of inpatient rehabilitation facilities moved into the new inpatient rehabilitation prospective payment system beginning January 1, and just as we had projected, PPS had a positive impact on our bottom line. We have spent years preparing for this change, lowering our costs and increasing our efficiencies, and our initial PPS payments have continued to come in on target with our preliminary estimates. In addition, we saw strong same-store volume growth in all of our ambulatory lines and in our inpatient rehabilitation facilities. We are especially pleased to report the seventh consecutive quarter of increases in same-store volume in our surgery centers. Given these positive trends, we are actively pursuing additional strategic growth and development opportunities across our product lines. After a very successful 2001, the first quarter has positioned us well to move forward to a new level in 2002."
On January 1, 2002, HEALTHSOUTH adopted Financial Accounting Standards Board Statement No. 142, which requires the periodic testing of goodwill for impairment rather than a monthly amortization of goodwill. The results for the 2002 quarter reflect the adoption of this new policy. Had the policy been in effect in 2001, reported net income would have increased by $11.7 million, or $.03 per share (assuming dilution), in the first quarter of 2001.
HEALTHSOUTH is the nation's largest provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, with approximately 1,900 locations in all 50 states, the United Kingdom, Australia, Puerto Rico and Canada. HEALTHSOUTH can be found on the Web at http://www.healthsouth.com/ .
HEALTHSOUTH will hold a conference call to discuss its first quarter results at 9:00 a.m. Central Time on Thursday, May 2. Simultaneously with the conference call, a webcast of the call will be available to interested parties at http://www.healthsouth.com/ via an Internet link under the "Investor Relations" section. A replay of the call will be available at the same Internet site address for 30 days following the call.
Statements contained in this press release which are not historical facts are forward-looking statements. Without limiting the generality of the preceding statement, all statements in this press release concerning or relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, HEALTHSOUTH, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of HEALTHSOUTH's senior management based upon current information, involve a number of risks and uncertainties and are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. HEALTHSOUTH's actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including those identified in this press release and in the public filings made by HEALTHSOUTH with the Securities and Exchange Commission, including HEALTHSOUTH's Annual Report on Form 10-K for the year ended December 31, 2001 and its Quarterly Reports on Form 10-Q, and forward- looking statements contained in this press release or in other public statements of HEALTHSOUTH or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
Summary Operating Results
(unaudited; in thousands, except per share data)
Three Months Ended
March 31,
2002 2001
Revenues $ 1,129,775 $ 1,090,462
Net income $107,749 $75,311
Weighted average common shares outstanding 391,863 388,143
Weighted average common shares and common
equivalent shares outstanding
-- assuming dilution 414,670 398,546
Net income per common share $0.27 $0.19
Net income per common share
-- assuming dilution $0.27 $0.19
Additional Financial Details Follow
HEALTHSOUTH Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED - In Thousands, Except for Per Share Data)
Three Months Ended
March 31,
2002 2001
Revenues $1,129,775 $1,090,462
Operating unit expenses 736,401 736,045
Corporate general and administrative expenses 39,966 32,654
Provision for doubtful accounts 24,995 24,383
Depreciation and amortization 77,582 91,219
Interest expense 48,043 59,420
Interest income (1,063) (2,721)
925,924 941,000
Income before income taxes
and minority interests 203,851 149,462
Provision for income taxes 68,167 49,170
Income before minority interests 135,684 100,292
Minority interests (27,935) (24,981)
Net Income $107,749 $75,311
Weighted average common shares outstanding 391,863 388,143
Net income per common share $0.27 $0.19
Weighted average common shares
outstanding -- assuming dilution 414,670 398,456
Net income per common share --
assuming dilution $0.27 $0.19
Add-back to income for diluted earnings per share:
Interest and amortization on convertible debt $3,130 ---
*
*The effect of these securities was antidilutive during this period.
HEALTHSOUTH Corporation
Quarterly Statistics (Unaudited)
For Period Ending March 31, 2002
1Q 2002 1Q 2001
Outpatient Rehab (Revised to Exclude Occupational Medicine)
Total Visits: 2,373,406 2,198,772
Total Volume Growth (Y/Y): 7.9%
Same Store Volume Growth (Y/Y): 7.9%
Average Revenue per Visit: $99 $96
Facility Count: 1,419 1,417
Surgery Centers
Total Cases: 227,785 219,777
Total Volume Growth (Y/Y): 3.6%
Same Store Volume Growth (Y/Y): 6.5%
Average Revenue per Case: $1,117 $1,117
Facility Count: 208 219
Diagnostic Imaging
Total Scans: 265,173 268,645
Total Volume Growth (Y/Y): -1.3%
Same Store Volume Growth (Y/Y): 4.1%
Average Revenue per Scan: $313 $320
Facility Count: 134 142
Inpatient Rehab (1)
Total Discharges: 29,017 27,665
Total Volume Growth (Y/Y): 4.9%
Same Store Volume Growth (Y/Y): 4.4%
Average Revenue per Discharge: $16,152 $15,120
Facility Count: 117 124
Medical Centers (Revised to Exclude Richmond Medical Center)
Total Days: 24,507 29,271
Total Volume Growth (Y/Y): -16.3%
Same Store Volume Growth (Y/Y): -16.3%
Average Revenue per Day: $2,902 $2,418
Facility Count: 4 4
(1) Effective with the first quarter of 2002, HEALTHSOUTH is reporting
inpatient rehab discharges rather than patient days, in order to
better reflect the discharge-based Medicare reimbursement under the
inpatient rehabilitation Prospective Payment System.
For more information, contact Richard M. Scrushy, Chairman & CEO, or
Tadd McVay, Executive Vice President and Treasurer, at 205-967-7116
SOURCE: HEALTHSOUTH Corporation
Contact: Richard M. Scrushy, Chairman & CEO, or Tadd McVay, Executive
Vice President and Treasurer, both of HEALTHSOUTH Corporation,
+1-205-967-7116
Website: http://www.healthsouth.com/