This is the Tagline, edited under "Misc Content"
HEALTHSOUTH Corporation
For the year ended December 31, 2001, HEALTHSOUTH's revenues were $4.380 billion, compared to $4.195 billion for 2000. Income before unusual and non-recurring items for 2001 was $326.1 million, compared to net income of $278.5 million for 2000. The comparable income per share (assuming dilution) for 2001 was $.82, a 15.5% increase compared to net income per share (assuming dilution) of $.71 for 2000.
"Our fourth quarter results reflect a strong finish to a very successful year," said Richard M. Scrushy, Chairman of the Board and Chief Executive Officer of HEALTHSOUTH. "The fundamentals of our business showed continued improvement, as same-store volume growth ranged from 6.5% to 13% in our outpatient lines of business compared to the fourth quarter of 2000. Pricing trends were also strong on both a sequential quarter and year-over-year basis, contributing to an increase in our EBITDA margin to 28.2%. Looking ahead, our early experience under the new inpatient rehabilitation prospective payment system is confirming our expectations for the positive impact that PPS will have on our business. In addition, during the fourth quarter, we held the groundbreaking on our new HEALTHSOUTH Medical Center in Birmingham, which will be a state-of-the-art, wireless, digital facility that we believe will represent a major new advance in the way healthcare is delivered. We are proud of our performance last year, and we are committed to strategic growth, continued innovation and strong financial performance in 2002."
Unusual and non-recurring items reduced net income by $20.7 million in the fourth quarter. These items consisted of an $11.4 million net loss on the sale of the company's United Kingdom diagnostic centers and four non-strategic rehabilitation hospitals and a $9.3 million loss on the sale of certain properties in a sale-leaseback transaction, in each case net of income taxes. Net income for the year was also reduced by unusual and non-recurring items in the second quarter, which were discussed in that quarter's earnings announcement and which aggregated approximately $103 million, net of income taxes. Management believes that income and income per share excluding such unusual and non-recurring items provide a clearer picture of the company's operational performance than net income and earnings per share standing alone.
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 fourth quarter results at 9:00 a.m. Central Time on Tuesday, March 12. 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 15 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, 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.
Summary Operating Results
(unaudited; in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenues $1,115,152 $1,077,001 $4,380,477 $4,195,115
Net income $67,898 $76,888 $202,387 $278,465
Weighted average common
shares outstanding 391,446 386,226 389,717 385,666
Weighted average common
shares outstanding -
assuming dilution 399,940 395,356 399,227 391,016
Net income per common share $0.17 $0.20 $0.52 $0.72
Net income per common
share - assuming dilution $0.17 $0.19 $0.51 $ 0.71
ADJUSTMENT TO EXCLUDE
UNUSUAL AND NON-RECURRING
EXPENSES IN 2001
Net income $67,898 $76,888 $202,387 $278,465
Unusual and non-recurring
expenses, net of
minority interests $34,244 -- $199,150 --
Income tax benefit
of unusual and
non-recurring expenses ($13,527) -- ($75,405) --
Income excluding
effects of unusual and
non-recurring expenses $88,615 $76,888 $326,132 $278,465
Weighted average common
shares outstanding -
assuming dilution 415,442 395,356 414,729 391,016
Income per common
share excluding
effects of unusual and
non-recurring expenses -
assuming dilution $0.22 $0.19 $0.82 $.071
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income
(UNAUDITED - In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenues $1,115,152 $1,077,001 $4,380,477 $4,195,115
Operating unit expenses 731,542 710,037 2,905,043 2,816,363
Corporate general and
administrative expenses 44,380 40,893 167,206 148,023
Provision for doubtful
accounts 24,649 25,555 107,871 98,037
Depreciation and
amortization 95,039 91,746 375,270 360,847
Impairment of unamortized
loan fee costs -- -- 6,475 --
Loss on sale of assets 34,244 -- 174,127 --
Interest expense 52,519 59,715 218,100 221,595
Interest income (1,607) (1,770) (7,349) (9,104)
980,766 926,176 3,946,743 3,635,761
Income before income taxes
and minority interests 134,386 150,825 433,734 559,354
Provision for income taxes 46,274 50,199 139,467 181,808
Income before minority
interests 88,112 100,626 294,267 377,546
Minority interests (20,214) (23,738) (91,880) (99,081)
Net income $67,898 $76,888 $202,387 $278,465
Weighted average common
shares outstanding 391,446 386,226 389,717 385,666
Net income per common share $0.17 $0.20 $0.52 $0.72
Weighted average common
shares outstanding -
assuming dilution 399,940 395,356 399,227 391,016
Net income per common share -
assuming dilution $0.17 $0.19 $0.51 $0.71
Add-back to income for diluted
earnings per share:
Interest and amortization on
convertible debt * -- -- -- --
* * * *
* The effect of these securities was antidilutive during these periods.
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income Before Unusual and Non-Recurring Items
(UNAUDITED - In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenues $1,115,152 $1,077,001 $4,380,477 $4,195,115
Operating unit expenses 731,542 710,037 2,905,043 2,816,363
Corporate general and
administrative expenses 44,380 40,893 158,958 148,023
Provision for doubtful
accounts 24,649 25,555 97,571 98,037
Depreciation and amortization 95,039 91,746 375,270 360,847
Impairment of unamortized
loan fee costs -- -- -- --
Loss on sale of assets -- -- -- --
Interest expense 52,519 59,715 218,100 221,595
Interest income (1,607) (1,770) (7,349) (9,104)
946,522 926,176 3,747,593 3,635,761
Income before income taxes
and minority interests 168,630 150,825 632,884 559,354
Provision for income taxes 59,801 50,199 214,872 181,808
Income before minority
interests 108,829 100,626 418,012 377,546
Minority interests (20,214) (23,738) (91,880) (99,081)
Net income $88,615 $76,888 $326,132 $278,465
Weighted average common
shares outstanding 391,446 386,226 389,717 385,666
Net income per common share $0.23 $0.20 $0.84 $0.72
Weighted average common
shares outstanding -
assuming dilution 415,442 395,356 414,729 391,016
Net income per common share
- assuming dilution $0.22 $0.19 $0.82 $0.71
Add-back to income for
diluted earnings per share:
Interest and amortization
on convertible debt * $3,112 -- $12,448 --
* *
* The effect of these securities was antidilutive during these periods.
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income Before Unusual and Non-Recurring Items
Three Months Ended December 31, 2001
(UNAUDITED - In thousands, except per share amounts)
Three Months
Ended
December 31,
2001
Three Months Less Unusual Before
Ended and Unusual and
December 31, Non-Recurring Non-Recurring
2001 Items Items
Revenues $1,115,152 $1,115,152
Operating unit expenses 731,542 731,542
Corporate general and
administrative --
expenses 44,380 44,380
Provision for doubtful accounts 24,649 24,649
Depreciation and amortization 95,039 95,039
Impairment of unamortized loan
fee costs --
Loss on sale of assets 34,244 34,244 (1) --
Interest expense 52,519 52,519
Interest income (1,607) (1,607)
980,766 34,244 946,522
Income before income taxes and
minority interests 134,386 (34,244) 168,630
Provision for income taxes 46,274 (13,527) 59,801
Income before minority interests 88,112 (20,717) 108,829
Minority interests (20,214) (20,214)
Net income $67,898 $(20,717) $88,615
Weighted average common shares
outstanding 391,446 391,446
Net income per common share $0.17 $0.23
Weighted average common shares
outstanding - assuming dilution 399,940 415,442
Net income per common share -
assuming dilution $0.17 $0.22
Add-back to income for diluted
earnings per share:
Interest and amortization on
convertible debt * -- $3,112
*
* The effect of these securities was antidilutive
(1) Loss related to the sale of certain facilities.
HEALTHSOUTH Corporation and Subsidiaries
Consolidated Statements of Income Before Unusual and Non-Recurring Items
Twelve Months Ended December 31, 2001
(UNAUDITED - In thousands, except per share amounts)
Twelve
Months Ended
December 31,
2001
Before
Twelve Less Unusual Unusual and
Months Ended and Non-
December 31, Non-Recurring Recurring
2001 Items Items
Revenues $4,380,477 $4,380,477
Operating unit expenses 2,905,043 2,905,043
Corporate general and
administrative --
expenses 167,206 8,248 (1) 158,958
Provision for doubtful accounts 107,871 10,300 (3) 97,571
Depreciation and amortization 375,270 375,270
Impairment of unamortized loan fee
costs 6,475 6,475 (2) --
Loss on sale of assets 174,127 174,127 (3) --
Interest expense 218,100 218,100
Interest income (7,349) (7,349)
3,946,743 199,150 3,747,593
Income before income taxes and
minority interests 433,734 (199,150) 632,884
Provision for income taxes 139,467 (75,405) 214,872
Income before minority interests 294,267 (123,745) 418,012
Minority interests (91,880) (91,880)
Net income $202,387 $(123,745) $326,132
Weighted average common shares
outstanding 389,717 389,717
Net income per common share $0.52 $0.84
Weighted average common shares
outstanding - assuming dilution 399,227 414,729
Net income per common share -
assuming dilution $0.51 $0.82
Add-back to income for diluted
earnings per share:
Interest and amortization on
convertible debt * -- $12,448
* *
* 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)
2000 2,212,042 2,266,260 2,195,908 2,271,269 8,945,479
2001 2,198,772 2,249,908 2,243,112 2,391,459 9,083,251
Inpatient Division Total Patient Days:
2000 647,575 643,441 668,451 650,987 2,610,454
2001 653,434 661,635 659,515 658,441 2,633,025
Medical Center Division Total Patient Days:
(Revised to Exclude Richmond Medical Center)
2000 24,390 22,283 24,355 24,000 95,028
2001 29,271 24,243 24,238 22,766 100,518
Surgery Center Division Total Cases:
2000 217,505 220,593 212,647 219,321 870,066
2001 219,777 225,512 211,570 221,594 878,453
Diagnostic Division Total Procedures:
2000 213,505 221,052 242,647 250,621 927,825
2001 268,645 274,623 275,908 275,191 1,094,367
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/