This is the Tagline, edited under "Misc Content"
HEALTHSOUTH Corporation
For the six months ended June 30, 2001, HEALTHSOUTH's revenues were $2.189 billion, compared to $2.058 billion for the same period in 2001. Income before unusual and non-recurring items for the 2001 period was $158.4 million, compared to net income of $130.5 million for the 2000 period. The comparable income per share (assuming dilution) for the 2001 period was $.40, compared to earnings per share (assuming dilution) of $.33 for the 2000 period.
Unusual and non-recurring items in the second quarter of 2001 totaled approximately $103 million for the quarter and six months, net of income taxes. Those items included a loss of approximately $84.3 million on the sale of the company's occupational medicine operations, an increase of approximately $6.2 million in bad debt reserves in connection with the sale of its Richmond, Virginia, medical center, approximately $8.2 million paid in settlement of a lawsuit with the U.S. Department of Justice, and approximately $4.0 million relating to the company's early termination of its $400 million secondary credit facility. The company elected to terminate its secondary credit facility because of its confidence that cash from operations and availability under its primary credit facility would provide it with ample flexibility.
"Our second quarter results demonstrate the continued successful execution of our strategic plan," said Richard M. Scrushy, Chairman of the Board and Chief Executive Officer of HEALTHSOUTH. "In a quarter full of milestones, we achieved record quarterly revenues, continued the improvement in our EBITDA margin, and saw same-store volume and pricing increases in all lines of business, while completing the planned divestitures of our occupational medicine business and our Richmond medical center. In addition, our disciplined financial policies allowed us to reduce our indebtedness by $152 million as compared to the end of the first quarter, while our accounts receivable days declined four days from the first quarter. We look forward to continuing our success in the remainder of 2001."
HEALTHSOUTH is the nation's largest provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, with over 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 third quarter results at 9:00 a.m. Central Time on Tuesday, July 31. 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 and also at http://www.streetfusion.com/. A replay of the call will be available at the same Internet site addresses until 5:00 p.m. Central Time on August 15, 2001.
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, 2000 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.
HEALTHSOUTH
Summary Operating Results
(unaudited; in thousands, except per share data)
3 Months Ended 6 Months Ended
June 30, June 30,
2001 2000 2001 2000
Revenues $1,098,989 $ 1,036,322 $ 2,189,451 $2,057,658
Net income $(19,947) $65,213 $55,364 $130,539
Weighted average
common shares
outstanding 388,665 385,404 388,463 385,524
Weighted average
common shares
outstanding -
assuming dilution 388,665 390,376 397,993 389,705
Net income per
common share $(0.05) $ 0.17 $0.14 $0.34
Net income per
common share -
assuming dilution $ (0.05) $ 0.17 $ 0.14 $ 0.33
ADJUSTMENT TO EXCLUDE
UNUSUAL AND
NON-RECURRING
ITEMS IN 2001
Net income $(19,947) $ 65,213 $55,364 $130,539
Unusual and
non-recurring
items, net of
minority interests 164,906 --- 164,906 ---
Income tax benefit
of unusual and
non-recurring items (61,880) --- (61,880) ---
Income excluding
effects of unusual
and non-recurring
items $83,079 $65,213 $158,390 $ 130,539
Weighted average
common shares
outstanding -
assuming dilution 397,500 390,376 397,993 389,705
Income per common
share excluding
effects of unusual
and non-recurring
items -
assuming dilution $0.21 $0.17 $0.40 $0.33
Additional Financial Details Follow
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income
(UNAUDITED - In thousands, except per share amounts)
3 Months Ended June 30, 6 Months Ended June 30,
2001 2000 2001 2000
Revenues $1,098,989 $1,036,322 $2,189,451 $2,057,658
Operating unit expenses 722,705 700,462 1,458,750 1,394,454
Corporate general and
administrative expenses 51,214 35,706 83,868 69,727
Provision for doubtful
accounts 34,858 24,256 59,241 47,512
Depreciation and
amortization 93,223 90,286 184,442 179,941
Impairment of unamortized
loan fee costs 6,475 --- 6,475 ---
Loss on sale of assets 139,883 --- 139,883 ---
Interest expense 55,247 52,059 114,667 101,619
Interest income (1,591) (2,102) (4,312) (4,936)
1,102,014 900,667 2,043,014 1,788,317
Income before income
taxes and minority
interests (3,025) 135,655 146,437 269,341
Provision for income taxes (7,636) 42,577 41,534 85,229
Income before minority
interests 4,611 93,078 104,903 184,112
Minority interests (24,558) (27,865) (49,539) (53,573)
Net income $(19,947) $65,213 $55,364 $130,539
Weighted average common
shares outstanding 388,665 385,404 388,463 385,524
Net income per common share $(0.05) $0.17 $0.14 $0.34
Weighted average common
shares outstanding -
assuming dilution 388,665 390,376 397,993 389,705
Net income per common
share - assuming
dilution: $(0.05) $0.17 $0.14 $0.33
Add-back to income for
diluted earnings per
share:
Interest and
amortization on
convertible debt --- --- --- ---
* * * *
* The effect of these securities was antidilutive.
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income Before Unusual and Non-Recurring Items
(UNAUDITED - In thousands, except per share amounts)
3 Months Ended June 30, 6 Months Ended June 30,
2001 2000 2001 2000
Revenues $1,098,989 $1,036,322 $2,189,451 $2,057,658
Operating unit
expenses 722,705 700,462 1,458,750 1,394,454
Corporate general and
administrative
expenses 42,966 35,706 75,620 69,727
Provision for doubtful
accounts 24,558 24,256 48,941 47,512
Depreciation and
amortization 93,223 90,286 184,442 179,941
Interest expense 55,247 52,059 114,667 101,619
Interest income (1,591) (2,102) (4,312) (4,936)
937,108 900,667 1,878,108 1,788,317
Income before income
taxes and minority
interests 161,881 135,655 311,343 269,341
Provision for income
taxes 54,244 42,577 103,414 85,229
Income before minority
interests 107,637 93,078 207,929 184,112
Minority interests (24,558) (27,865) (49,539) (53,573)
Net income $83,079 $65,213 $158,390 $130,539
Weighted average
common shares
outstanding 388,665 385,404 388,463 385,524
Net income per common
share $0.21 $0.17 $0.41 $0.34
Weighted average
common shares
outstanding -
assuming dilution 397,500 390,376 397,993 389,705
Net income per common
share - assuming
dilution $0.21 $0.17 $0.40 $0.33
Add-back to income for
diluted earnings per
share:
Interest and
amortization on
convertible debt --- --- --- ---
* * * *
* The effect of these securities was antidilutive.
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income
Three Months Ended June 30, 2001
(UNAUDITED - In thousands, except per share amounts)
3 Months
Ended June 30,
2001 Before
Less Unusual Unusual and
3 Months and Non- Non-
Ended June 30, Recurring Recurring
2001 Items Items
Revenues $1,098,989 $1,098,989
Operating unit expenses 722,705 722,705
Corporate general and
administrative expenses 51,214 8,248 (1) 42,966
Provision for doubtful accounts 34,858 10,300 (3) 24,558
Depreciation and amortization 93,223 93,223
Impairment of unamortized loan fee
costs 6,475 6,475 (2) ---
Loss on sale of assets 139,883 139,883 (3) ---
Interest expense 55,247 55,247
Interest income (1,591) (1,591)
1,102,014 164,906 937,108
Income before income taxes and
minority interests (3,025) (164,906) 161,881
Provision for income taxes (7,636) (61,880) 54,244
Income before minority interests 4,611 (103,026) 107,637
Minority interests (24,558) (24,558)
Net income $(19,947) $(103,026) $83,079
Weighted average common shares
outstanding 388,665 388,665
Net income per common share $(0.05) $0.21
Weighted average common shares
outstanding -- assuming
dilution 388,665 397,500
Net income per common share -
assuming dilution $(0.05) $0.21
Add-back to income for diluted
earnings per share:
Interest and amortization on
convertible debt * --- ---
* *
* The effect of these securities was antidilutive
(1) Charge related to settlement agreement with the United States
Department of Justice.
(2) Impairment charge related to the write-off of the unamortized balance
of loan fees on retired debt.
(3) Loss and expenses related to the sale of certain facilities.
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income
Six Months Ended June 30, 2001
(UNAUDITED - In thousands, except per share amounts)
6 Months
Ended
June 30,
2001
Before
Less Unusual Unusual and
6 Months and Non- Non-
Ended Recurring Recurring
June 30,
2001 Items Items
Revenues $2,189,451 $2,189,451
Operating unit expenses 1,458,750 1,458,750
Corporate general and
administrative
expenses 83,868 8,248 (1) 75,620
Provision for doubtful accounts 59,241 10,300 (3) 48,941
Depreciation and amortization 184,442 184,442
Impairment of unamortized loan fee
costs 6,475 6,475 (2) ---
Loss on sale of assets 139,883 139,883 (3) ---
Interest expense 114,667 114,667
Interest income (4,312) (4,312)
2,043,014 164,906 1,878,108
Income before income taxes and
minority interests 146,437 (164,906) 311,343
Provision for income taxes 41,534 (61,880) 103,414
Income before minority interests 104,903 (103,026) 207,929
Minority interests (49,539) (49,539)
Net income $55,364 $(103,026) $158,390
Weighted average common shares
outstanding 388,463 388,463
Net income per common share $0.14 $0.41
Weighted average common shares
outstanding -- assuming
dilution 397,993 397,993
Net income per common share -
assuming dilution $0.14 $0.40
Add-back to income for diluted
earnings per share:
Interest and amortization on
convertible debt * --- ---
* *
* The effect of these securities was antidilutive
(1) Charge related to settlement agreement with the United States
Department of Justice.
(2) Impairment charge related to the write-off of the unamortized balance
of loan fees on retired debt.
(3) Loss related to the sale of certain facilities.
HEALTHSOUTH Corporation
Quarterly Statistics (Unaudited)
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
Outpatient Division Total Visits:
(Revised to Exclude Occupational Medicine Operations)
1999 1,991,523 2,123,275 2,140,242 2,196,678 8,451,718
2000 2,212,042 2,266,260 2,195,908 2,271,269 8,945,479
2001 2,198,772 2,249,908 4,448,680
Inpatient Division Total Patient Days:
1999 614,686 626,262 608,878 621,349 2,471,175
2000 647,575 643,441 668,451 650,987 2,610,454
2001 653,434 661,635 1,315,069
Medical Center Division Total Patient Days:
1999 30,537 30,254 27,837 27,621 116,249
2000 32,288 29,626 30,934 31,470 124,318
2001 37,154 31,158 68,312
Surgery Center Division Total Cases:
1999 215,139 220,699 208,468 218,988 863,294
2000 217,505 220,593 212,647 219,321 870,066
2001 219,777 225,512 445,289
Diagnostic Division Total Procedures:
1999 200,496 205,909 191,493 198,728 796,626
2000 213,505 221,052 242,647 250,621 927,825
2001 268,645 274,623 543,268
For more information, contact Richard M. Scrushy, Chairman & CEO, or Tadd McVay, Senior Vice President and Treasurer, at 205-967-7116
SOURCE: HEALTHSOUTH Corporation
Contact: Richard M. Scrushy, Chairman & CEO, or Tadd McVay, Senior Vice
President and Treasurer both of HEALTHSOUTH, +1-205-967-7116
Website: http://www.healthsouth.com/