This is the Tagline, edited under "Misc Content"
BIRMINGHAM, Ala., July 25, 2013 /PRNewswire/ -- HealthSouth Corporation (NYSE: HLS), the nation's largest owner and operator of inpatient rehabilitation hospitals, today reported its results of operations for the second quarter ended June 30, 2013.
"We are very pleased with the results of the second quarter," said Jay Grinney, President and Chief Executive Officer of HealthSouth. "Net operating revenues grew 5.8% quarter over quarter on strong demand for our services while disciplined expense management resulted in a 7.5% increase in Adjusted EBITDA despite sequestration headwinds. We also continued to grow our portfolio of industry-leading hospitals with the opening of new hospitals in Littleton, Colorado and Stuart, Florida; the latter is a joint venture with Martin Health System. Importantly, our board of directors approved the initiation of a quarterly cash dividend. This action underscores our confidence in the sustainability of our business model and growth agenda while rewarding existing shareholders and providing an incentive for new shareholders to own our stock."
Second Quarter Results
"Our Company's ability to grow Adjusted EBITDA by 7.5% in the quarter in spite of sequestration is further evidence of the strength of our business model," said Doug Coltharp, Executive Vice President and Chief Financial Officer of HealthSouth. "Further, we continue to translate a high percentage of Adjusted EBITDA into adjusted free cash flow, enhancing our flexibility to pursue an array of shareholder value creating strategies."
Initiation of Quarterly Cash Dividend on Common Stock
On July 25, 2013, the Company's board of directors approved the initiation of a quarterly cash dividend on its common stock of $0.18 per share, representing $0.72 per share annually. The first quarterly dividend has been declared and will be payable on or about October 15, 2013 to stockholders of record as of the close of business on October 1, 2013. The Company expects quarterly dividends to be paid in January, April, July, and October. However, the actual declaration of any future cash dividends, and the establishment of record and payment dates, will be subject to final approval by the Company's board of directors each quarter after consideration of various factors, including the Company's capital position and the best interests of its stockholders. Cash dividends are expected to be funded using cash flows from operations, cash on hand, and availability under the Company's revolving credit facility.
2013 Guidance
Based on its results for the first half of 2013, including the impact of the income tax benefit discussed above, the Company is:
Earnings Conference Call and Webcast
The Company will host an investor conference call at 9:00 a.m. Eastern Time on Friday, July 26, 2013 to discuss its results for the second quarter of 2013. For reference during the call, the Company will post certain supplemental slides at http://investor.healthsouth.com.
The conference call may be accessed by dialing 877-587-6761 and giving the pass code 97040207. International callers should dial 706-679-1635 and give the same pass code. Please call approximately ten minutes before the start of the call to ensure you are connected. The conference call will also be webcast live and will be available at http://investor.healthsouth.com by clicking on an available link.
A replay of the conference call will be available, beginning approximately two hours after the completion of the conference call, from July 26, 2013 until August 9, 2013. To access the replay, please dial 855-859-2056. International callers should dial 404-537-3406. The webcast will also be archived for replay purposes after the live broadcast at http://investor.healthsouth.com.
About HealthSouth
HealthSouth is the nation's largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated and discharged, revenues, and number of hospitals. Operating in 28 states across the country and in Puerto Rico, HealthSouth serves patients through its network of inpatient rehabilitation hospitals, outpatient rehabilitation satellite clinics, and home health agencies. HealthSouth's hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, orthopedic, cardiac and pulmonary conditions, brain and spinal cord injuries, and amputations. HealthSouth can be found on the Web at www.healthsouth.com.
Other Information
The information in this press release is summarized and should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 (the "June 2013 Form 10-Q"), when filed, as well as the Company's Current Report on Form 8-K filed on July 25, 2013. In addition, the Company will post supplemental slides today on its website at http://investor.healthsouth.com for reference during its July 26, 2013 earnings call.
When filed, the June 2013 Form 10-Q can be found on the Company's website at http://investor.healthsouth.com and the SEC's website at www.sec.gov.
HealthSouth Corporation and Subsidiaries | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
2013 |
2012 |
2013 |
2012 | ||||||||||||
(In Millions, Except Per Share Data) | |||||||||||||||
Net operating revenues |
$ |
564.5 |
$ |
533.4 |
$ |
1,137.1 |
$ |
1,072.0 | |||||||
Less: Provision for doubtful accounts |
(7.0) |
(6.5) |
(14.4) |
(12.8) | |||||||||||
Net operating revenues less provision for doubtful accounts |
557.5 |
526.9 |
1,122.7 |
1,059.2 | |||||||||||
Operating expenses: |
|||||||||||||||
Salaries and benefits |
273.6 |
257.4 |
548.2 |
518.4 | |||||||||||
Other operating expenses |
81.0 |
75.0 |
159.1 |
148.8 | |||||||||||
Occupancy costs |
11.9 |
12.3 |
24.1 |
24.8 | |||||||||||
Supplies |
26.6 |
25.9 |
52.8 |
52.4 | |||||||||||
General and administrative expenses |
29.5 |
28.0 |
59.7 |
58.0 | |||||||||||
Depreciation and amortization |
23.1 |
20.0 |
45.2 |
39.5 | |||||||||||
Government, class action, and related settlements |
(2.0) |
— |
(2.0) |
— | |||||||||||
Professional fees—accounting, tax, and legal |
2.2 |
5.5 |
3.6 |
9.1 | |||||||||||
Total operating expenses |
445.9 |
424.1 |
890.7 |
851.0 | |||||||||||
Interest expense and amortization of debt discounts and fees |
24.4 |
23.0 |
48.6 |
46.3 | |||||||||||
Other income |
(1.9) |
(0.4) |
(2.6) |
(1.3) | |||||||||||
Equity in net income of nonconsolidated affiliates |
(3.3) |
(3.1) |
(6.2) |
(6.4) | |||||||||||
Income from continuing operations before income tax (benefit) expense |
92.4 |
83.3 |
192.2 |
169.6 | |||||||||||
Provision for income tax (benefit) expense |
(86.5) |
26.9 |
(53.0) |
56.0 | |||||||||||
Income from continuing operations |
178.9 |
56.4 |
245.2 |
113.6 | |||||||||||
Income (loss) from discontinued operations, net of tax |
0.1 |
3.5 |
(0.3) |
3.1 | |||||||||||
Net income |
179.0 |
59.9 |
244.9 |
116.7 | |||||||||||
Less: Net income attributable to noncontrolling interests |
(13.8) |
(13.2) |
(28.4) |
(25.8) | |||||||||||
Net income attributable to HealthSouth |
165.2 |
46.7 |
216.5 |
90.9 | |||||||||||
Less: Convertible perpetual preferred stock dividends |
(5.8) |
(6.0) |
(11.5) |
(12.4) | |||||||||||
Less: Repurchase of convertible perpetual preferred stock |
— |
(0.3) |
— |
(0.8) | |||||||||||
Net income attributable to HealthSouth common shareholders |
$ |
159.4 |
$ |
40.4 |
$ |
205.0 |
$ |
77.7 | |||||||
Weighted average common shares outstanding: |
|||||||||||||||
Basic |
86.1 |
94.6 |
90.0 |
94.5 | |||||||||||
Diluted |
99.8 |
108.0 |
103.4 |
108.3 | |||||||||||
Earnings per common share: |
|||||||||||||||
Basic earnings per share attributable to HealthSouth common shareholders: |
|||||||||||||||
Continuing operations |
$ |
1.85 |
$ |
0.39 |
$ |
2.28 |
$ |
0.79 | |||||||
Discontinued operations |
— |
0.04 |
— |
0.03 | |||||||||||
Net income |
$ |
1.85 |
$ |
0.43 |
$ |
2.28 |
$ |
0.82 | |||||||
Diluted earnings per share attributable to HealthSouth common shareholders: |
|||||||||||||||
Continuing operations |
$ |
1.66 |
$ |
0.39 |
$ |
2.09 |
$ |
0.79 | |||||||
Discontinued operations |
— |
0.04 |
— |
0.03 | |||||||||||
Net income |
$ |
1.66 |
$ |
0.43 |
$ |
2.09 |
$ |
0.82 | |||||||
Amounts attributable to HealthSouth common shareholders: |
|||||||||||||||
Income from continuing operations |
$ |
165.1 |
$ |
43.2 |
$ |
216.8 |
$ |
87.8 | |||||||
Income (loss) from discontinued operations, net of tax |
0.1 |
3.5 |
(0.3) |
3.1 | |||||||||||
Net income attributable to HealthSouth |
$ |
165.2 |
$ |
46.7 |
$ |
216.5 |
$ |
90.9 |
HealthSouth Corporation and Subsidiaries | ||||||
June 30, |
December 31, | |||||
(In Millions) | ||||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
68.7 |
$ |
132.8 | ||
Accounts receivable, net of allowance for doubtful |
273.7 |
249.3 | ||||
Deferred income tax assets |
137.5 |
137.5 | ||||
Other current assets |
111.6 |
117.2 | ||||
Total current assets |
591.5 |
636.8 | ||||
Property and equipment, net |
793.3 |
748.0 | ||||
Goodwill |
457.2 |
437.3 | ||||
Intangible assets, net |
86.8 |
73.2 | ||||
Deferred income tax assets |
444.8 |
393.5 | ||||
Other long-term assets |
138.1 |
135.4 | ||||
Total assets |
$ |
2,511.7 |
$ |
2,424.2 | ||
Liabilities and Shareholders' Equity |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
57.3 |
$ |
45.3 | ||
Accrued expenses and other current liabilities |
254.3 |
255.6 | ||||
Total current liabilities |
311.6 |
300.9 | ||||
Long-term debt, net of current portion |
1,319.7 |
1,239.9 | ||||
Other long-term liabilities |
131.4 |
130.5 | ||||
1,762.7 |
1,671.3 | |||||
Commitments and contingencies |
||||||
Convertible perpetual preferred stock |
342.2 |
342.2 | ||||
Redeemable noncontrolling interests |
14.1 |
7.2 | ||||
Shareholders' equity: |
||||||
HealthSouth shareholders' equity |
274.8 |
291.0 | ||||
Noncontrolling interests |
117.9 |
112.5 | ||||
Total shareholders' equity |
392.7 |
403.5 | ||||
Total liabilities and shareholders' equity |
$ |
2,511.7 |
$ |
2,424.2 |
HealthSouth Corporation and Subsidiaries | ||||||
Six Months Ended June 30, | ||||||
2013 |
2012 | |||||
(In Millions) | ||||||
Cash flows from operating activities: |
||||||
Net income |
$ |
244.9 |
$ |
116.7 | ||
Loss (income) from discontinued operations |
0.3 |
(3.1) | ||||
Adjustments to reconcile net income to net cash provided |
||||||
Provision for doubtful accounts |
14.4 |
12.8 | ||||
Depreciation and amortization |
45.2 |
39.5 | ||||
Equity in net income of nonconsolidated affiliates |
(6.2) |
(6.4) | ||||
Distributions from nonconsolidated affiliates |
5.0 |
5.5 | ||||
Stock-based compensation |
12.8 |
12.0 | ||||
Deferred tax (benefit) expense |
(53.5) |
51.7 | ||||
Other |
0.3 |
3.0 | ||||
Increase in assets— |
||||||
Accounts receivable |
(38.8) |
(35.7) | ||||
Other assets |
(0.7) |
(7.0) | ||||
Increase (decrease) in liabilities— |
||||||
Accounts payable |
9.5 |
10.3 | ||||
Other liabilities |
(6.2) |
(6.0) | ||||
Net cash (used in) provided by operating activities of |
(0.2) |
1.7 | ||||
Total adjustments |
(18.4) |
81.4 | ||||
Net cash provided by operating activities |
226.8 |
195.0 |
HealthSouth Corporation and Subsidiaries | ||||||
Six Months Ended June 30, | ||||||
2013 |
2012 | |||||
(In Millions) | ||||||
Cash flows from investing activities: |
||||||
Purchases of property and equipment |
(69.0) |
(82.8) | ||||
Capitalized software costs |
(11.9) |
(11.6) | ||||
Acquisition of business, net of cash acquired |
(28.9) |
(2.1) | ||||
Proceeds from sale of restricted investments |
10.3 |
0.2 | ||||
Purchase of restricted investments |
(5.4) |
(4.4) | ||||
Net change in restricted cash |
4.7 |
4.6 | ||||
Other |
(1.2) |
0.1 | ||||
Net cash provided by investing activities of discontinued operations |
— |
7.7 | ||||
Net cash used in investing activities |
(101.4) |
(88.3) | ||||
Cash flows from financing activities: |
||||||
Principal payments on debt, including pre-payments |
(0.7) |
(4.7) | ||||
Principal borrowings on notes |
11.4 |
— | ||||
Borrowings on revolving credit facility |
132.0 |
40.0 | ||||
Payments on revolving credit facility |
(59.0) |
(50.0) | ||||
Principal payments under capital lease obligations |
(6.7) |
(5.7) | ||||
Repurchase of common stock, including fees and expenses |
(234.1) |
— | ||||
Repurchase of convertible perpetual preferred stock |
— |
(46.0) | ||||
Dividends paid on convertible perpetual preferred stock |
(11.5) |
(13.1) | ||||
Distributions paid to noncontrolling interests of consolidated affiliates |
(23.9) |
(24.0) | ||||
Contributions from consolidated affiliates |
— |
7.9 | ||||
Other |
3.0 |
(0.1) | ||||
Net cash used in financing activities |
(189.5) |
(95.7) | ||||
(Decrease) increase in cash and cash equivalents |
(64.1) |
11.0 | ||||
Cash and cash equivalents at beginning of period |
132.8 |
30.1 | ||||
Cash and cash equivalents at end of period |
$ |
68.7 |
$ |
41.1 | ||
HealthSouth Corporation and Subsidiaries |
||||||||
QTD |
||||||||
Q2 2013 |
Q2 2012 |
|||||||
(In Millions, Except Per Share Data) |
||||||||
Adjusted EBITDA |
$ |
134.5 |
$ |
125.1 |
||||
Interest expense and amortization of debt discounts and fees |
(24.4) |
(23.0) |
||||||
Depreciation and amortization |
(23.1) |
(20.0) |
||||||
Stock-based compensation expense |
(6.5) |
(5.9) |
||||||
Noncash loss on disposal of assets |
(1.7) |
(0.6) |
||||||
78.8 |
75.6 |
|||||||
Certain nonrecurring expenses: |
||||||||
Government, class action and related settlements |
2.0 |
— |
||||||
Professional fees—accounting, tax, and legal |
(2.2) |
(5.5) |
||||||
Pre-tax income |
78.6 |
70.1 |
||||||
Income tax benefit (expense) (1) |
86.5 |
(2) |
(26.9) |
|||||
Income from continuing operations (3) |
$ |
165.1 |
$ |
43.2 |
||||
Basic shares |
86.1 |
94.6 |
||||||
Diluted shares |
99.8 |
108.0 |
||||||
Basic earnings per share (3) |
$ |
1.85 |
$ |
0.39 |
||||
Diluted earnings per share (3) |
$ |
1.66 |
$ |
0.39 |
(4) |
(1) Current income tax (benefit) expense for the three months ended June 30, 2013 and 2012 was ($1.3) million and $2.2 million, respectively.
(2) Includes an approximate $115 million, or $1.15 per diluted share, benefit related to the Company's settlement with the IRS related to the previous restatement of its 2000 and 2001 financial statements, as well as certain other tax matters, through December 31, 2008.
(3) Income from continuing operations attributable to HealthSouth
(4) For the second quarter of 2012, adding back the dividends for the Company's convertible perpetual preferred stock to income from continuing operations causes a per share increase when calculating diluted earnings per share resulting in an antidilutive per share amount. Therefore, basic and diluted earnings per share are the same. A computation of basic and diluted earnings per share can be found in Note 9, Earnings per Common Share, to the condensed consolidated financial statements included in Part I, Item 1, Financial Statements (Unaudited), of the Form 10-Q for the quarterly period ended June 30, 2013, when filed.
HealthSouth Corporation and Subsidiaries |
||||||||
YTD |
||||||||
Q2 2013 |
Q2 2012 |
|||||||
(In Millions, Except Per Share Data) |
||||||||
Adjusted EBITDA |
$ |
273.8 |
$ |
252.1 |
||||
Interest expense and amortization of debt discounts and fees |
(48.6) |
(46.3) |
||||||
Depreciation and amortization |
(45.2) |
(39.5) |
||||||
Stock-based compensation expense |
(12.8) |
(12.0) |
||||||
Noncash loss on disposal of assets |
(1.8) |
(1.4) |
||||||
165.4 |
152.9 |
|||||||
Certain nonrecurring expenses: |
||||||||
Government, class action and related settlements |
2.0 |
— |
||||||
Professional fees—accounting, tax, and legal |
(3.6) |
(9.1) |
||||||
Pre-tax income |
163.8 |
143.8 |
||||||
Income tax benefit (expense) (1) |
53.0 |
(2) |
(56.0) |
|||||
Income from continuing operations (3) |
$ |
216.8 |
$ |
87.8 |
||||
Basic shares |
90.0 |
94.5 |
||||||
Diluted shares |
103.4 |
108.3 |
||||||
Basic earnings per share (3) |
$ |
2.28 |
$ |
0.79 |
||||
Diluted earnings per share (3) |
$ |
2.09 |
$ |
0.79 |
(4) |
(1) Current income tax expense for the six months ended June 30, 2013 and 2012 was $0.5 million and $4.3 million, respectively.
(2) Includes an approximate $115 million, or $1.11 per diluted share, benefit related to the Company's settlement with the IRS related to the previous restatement of its 2000 and 2001 financial statements, as well as certain other tax matters, through December 31, 2008.
(3) Income from continuing operations attributable to HealthSouth
(4) For the six months ended June 30, 2012, adding back the dividends for the Company's convertible perpetual preferred stock to income from continuing operations causes a per share increase when calculating diluted earnings per share resulting in an antidilutive per share amount. Therefore, basic and diluted earnings per share are the same. A computation of basic and diluted earnings per share can be found in Note 9, Earnings per Common Share, to the condensed consolidated financial statements included in Part I, Item 1, Financial Statements (Unaudited), of the Form 10-Q for the quarterly period ended June 30, 2013, when filed.
HealthSouth Corporation and Subsidiaries | ||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||
2013 |
2012 |
2013 |
2012 | |||||||||||
(In Millions) | ||||||||||||||
Net income |
$ |
179.0 |
$ |
59.9 |
$ |
244.9 |
$ |
116.7 | ||||||
(Income) loss from discontinued operations, net of tax, attributable to HealthSouth |
(0.1) |
(3.5) |
0.3 |
(3.1) | ||||||||||
Provision for income tax (benefit) expense |
(86.5) |
26.9 |
(53.0) |
56.0 | ||||||||||
Interest expense and amortization of debt discounts and fees |
24.4 |
23.0 |
48.6 |
46.3 | ||||||||||
Professional fees—accounting, tax, and legal |
2.2 |
5.5 |
3.6 |
9.1 | ||||||||||
Government, class action, and related settlements |
(2.0) |
— |
(2.0) |
— | ||||||||||
Net noncash loss on disposal of assets |
1.7 |
0.6 |
1.8 |
1.4 | ||||||||||
Depreciation and amortization |
23.1 |
20.0 |
45.2 |
39.5 | ||||||||||
Stock-based compensation expense |
6.5 |
5.9 |
12.8 |
12.0 | ||||||||||
Net income attributable to noncontrolling interests |
(13.8) |
(13.2) |
(28.4) |
(25.8) | ||||||||||
Adjusted EBITDA |
$ |
134.5 |
$ |
125.1 |
$ |
273.8 |
$ |
252.1 |
HealthSouth Corporation and Subsidiaries | |||||||||||||||||||
Three Months |
Six Months |
Year Ended | |||||||||||||||||
2013 |
2012 |
2013 |
2012 |
2012 | |||||||||||||||
(In Millions) | |||||||||||||||||||
Net cash provided by operating activities |
$ |
105.4 |
$ |
114.0 |
$ |
226.8 |
$ |
195.0 |
$ |
411.5 | |||||||||
Impact of discontinued operations |
(0.5) |
(1.3) |
0.2 |
(1.7) |
(2.0) | ||||||||||||||
Net cash provided by operating activities of continuing operations |
104.9 |
112.7 |
227.0 |
193.3 |
409.5 | ||||||||||||||
Capital expenditures for maintenance |
(16.8) |
(31.0) |
(35.7) |
(50.1) |
(83.0) | ||||||||||||||
Dividends paid on convertible perpetual preferred stock |
(5.8) |
(6.3) |
(11.5) |
(13.1) |
(24.6) | ||||||||||||||
Distributions paid to noncontrolling interests of consolidated affiliates |
(10.7) |
(10.9) |
(23.9) |
(24.0) |
(49.3) | ||||||||||||||
Nonrecurring items: |
|||||||||||||||||||
Premium paid on redemption of bonds |
— |
— |
— |
— |
1.9 | ||||||||||||||
Cash paid for: |
|||||||||||||||||||
Professional fees—accounting, tax, and legal |
2.2 |
5.5 |
3.6 |
9.1 |
16.1 | ||||||||||||||
Government, class action, and related settlements |
(1.3) |
— |
(1.3) |
— |
(2.6) | ||||||||||||||
Adjusted free cash flow |
$ |
72.5 |
$ |
70.0 |
$ |
158.2 |
$ |
115.2 |
$ |
268.0 |
For the three months ended June 30, 2013, net cash used in investing activities was $53.5 million and resulted primarily from capital expenditures and acquisition activity. Net cash used in financing activities during the three months ended June 30, 2013 was $63.3 million and resulted primarily from net debt payments, distributions paid to noncontrolling interests of consolidated affiliates, and dividends paid on the Company's convertible perpetual preferred stock.
For the three months ended June 30, 2012, net cash used in investing activities was $55.4 million and resulted primarily from capital expenditures. Net cash used in financing activities during the three months ended June 30, 2012 was $61.8 million and resulted primarily from net debt payments, the repurchase of 21,645 shares of the Company's convertible perpetual preferred stock, distributions paid to noncontrolling interests of consolidated affiliates, and dividends paid on the Company's convertible perpetual preferred stock offset by capital contributions from consolidated affiliates.
For the six months ended June 30, 2013, net cash used in investing activities was $101.4 million and resulted primarily from capital expenditures and acquisition activity. Net cash used in financing activities during the six months ended June 30, 2013 was $189.5 million and resulted primarily from repurchases of common stock as part of the tender offer completed in the first quarter of 2013.
For the six months ended June 30, 2012, net cash used in investing activities was $88.3 million and resulted primarily from capital expenditures. Net cash used in financing activities during the six months ended June 30, 2012 was $95.7 million and resulted primarily from the repurchase of 46,645 shares of the Company's convertible perpetual preferred stock, net debt payments, distributions paid to noncontrolling interests of consolidated affiliates, and dividends paid on the Company's convertible perpetual preferred stock offset by capital contributions from consolidated affiliates.
For the year ended December 31, 2012, net cash used in investing activities was $178.8 million and resulted primarily from capital expenditures. Net cash used in financing activities during the year ended December 31, 2012 was $130.0 million and resulted primarily from distributions paid to noncontrolling interests of consolidated affiliates, repurchases of 46,645 shares of the Company's convertible perpetual preferred stock, dividends paid on the Company's convertible perpetual preferred stock, and net principal payments on debt offset by capital contributions from consolidated affiliates.
HealthSouth Corporation and Subsidiaries
Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as the dividend payment plans and the financial guidance, 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. All such estimates, projections, and forward-looking information speak only as of the date hereof, and HealthSouth undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information, involve a number of risks and uncertainties, and relate to, among other things, future events, HealthSouth's plan to repurchase its debt or equity securities, dividend strategies, effective income tax rates, HealthSouth's business strategy, its financial plans, its future financial performance, or its projected business results or model, or its projected capital expenditures, or its leverage ratio. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by HealthSouth include, but are not limited to, any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving HealthSouth, including its pending HHS-OIG investigations; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of HealthSouth's information systems; significant changes in HealthSouth's management team; HealthSouth's ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures consistent with its growth strategy; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for HealthSouth's services by governmental or private payors; changes in the regulation of the healthcare industry at either or both of the federal and state levels, including as part of national healthcare reform and deficit reduction; competitive pressures in the healthcare industry and HealthSouth's response thereto; HealthSouth's ability to obtain and retain favorable arrangements with third-party payors; HealthSouth's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on HealthSouth's labor expenses from potential union activity and staffing shortages; general conditions in the economy and capital markets; the increase in the costs of defending and insuring against alleged professional liability claims and HealthSouth's ability to predict the estimated costs related to such claims; and other factors which may be identified from time to time in HealthSouth's SEC filings and other public announcements, including HealthSouth's Form 10‑K for the year ended December 31, 2012 and Form 10-Q for the quarters ended March 31, 2013, and June 30, 2013, when filed.
Media Contact
Casey Lassiter, 205-410-2777
casey.lassiter@healthsouth.com
Investor Relations Contact
Mary Ann Arico, 205-969-6175
maryann.arico@healthsouth.com
SOURCE HealthSouth Corporation