HEALTHSOUTH Corp. (HLS, Financial) filed Quarterly Report for the period ended 2012-09-30.
Healthsouth Corp has a market cap of $2.13 billion; its shares were traded at around $22.84 with a P/E ratio of 15.3 and P/S ratio of 1.1. Healthsouth Corp had an annual average earning growth of 2.5% over the past 5 years.
Our consolidated Net operating revenues consist primarily of revenues derived from patient care services. Net operating revenues also include other revenues generated from management and administrative fees and other nonpatient care services. These other revenues approximated 1.5% and 1.6% of consolidated Net operating revenues for the three months ended September 30, 2012 and 2011, respectively, and 1.5% and 1.8% of consolidated Net operating revenues for the nine months ended September 30, 2012 and 2011, respectively. See below for discussion of state provider taxes included in other revenues during the three and nine months ended September 30, 2011.
Net patient revenue from our hospitals was 8.7% higher for the three months ended September 30, 2012 than the three months ended September 30, 2011. This increase was attributable to a 4.2% increase in patient discharges and a 4.4% increase in net patient revenue per discharge. Discharge growth was comprised of 2.5% growth from new stores and a 1.7% increase in same-store discharges. Approximately 130 basis points of discharge growth from new stores resulted from the consolidation of St. Vincent Rehabilitation Hospital beginning in the third quarter of 2012, as described above. Discharge growth in the third quarter of 2012 was unfavorably impacted by the timing of patient discharges from the last week of September into the first week of October. We experienced a modest increase in the length of stay of our September patient population which we have seen normalize in October. Because we recognize revenue on a per diem basis, much of the revenue associated with the carryover patients was recognized in September even though the discharges occurred in October. Net patient revenue per discharge in the third quarter of 2012 compared to the same period of 2011 was favorably impacted by the aforementioned increase in length of stay and also benefited from pricing adjustments from Medicare (as discussed above) and managed care payors, higher average acuity for the patients served, and a higher percentage of Medicare patients (as shown in the above payor mix table).
Net patient revenue from our hospitals was 7.8% higher for the nine months ended September 30, 2012 than the nine months ended September 30, 2011 due to the same reasons discussed above for the quarter-over-quarter increase. Patient discharges increased 4.4% during the nine months ended September 30, 2012 compared to the same period of 2011. Discharge growth was enhanced during the nine months ended September 30, 2012 compared to the same period of 2011 by the additional day in February due to leap year as well as a 40 basis point increase in discharges resulting from our consolidation of St. Vincent Rehabilitation Hospital beginning in the third quarter of 2012, as described above. Same-store discharges were 2.9% higher period over period for the nine months.
Operating activities. Net cash provided by operating activities increased during the nine months ended September 30, 2012 compared to the same period of 2011 due primarily to increased Net operating revenues, improved operating leverage, and a decrease in interest expense. Net cash provided by operating activities for the nine months ended September 30, 2011 included the use of $26.9 million related to the premium associated with the redemption of our 10.75% Senior Notes and a $15.8 million decrease in the liability associated with Refunds due patients and other third-party payors. The decrease in this liability primarily related to a settlement discussed in Note 21, Settlements, to the 2011 Form 10-K.
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Healthsouth Corp has a market cap of $2.13 billion; its shares were traded at around $22.84 with a P/E ratio of 15.3 and P/S ratio of 1.1. Healthsouth Corp had an annual average earning growth of 2.5% over the past 5 years.
Highlight of Business Operations:
In the three months ended September 30, 2012, discharge growth of 4.2% coupled with a 4.4% increase in net patient revenue per discharge generated 8.7% growth in net patient revenue from our hospitals compared to the same period of 2011. Discharge growth was comprised of 2.5% growth from new stores and a 1.7% increase in same-store discharges. Approximately 130 basis points of discharge growth from new stores resulted from the consolidation of St. Vincent Rehabilitation Hospital beginning in the third quarter of 2012, as described above. This revenue growth combined with improved operating leverage and labor productivity to result in a $15.3 million, or 19.3%, increase in operating earnings (as defined in Note 23, Quarterly Data (Unaudited), to the consolidated financial statements accompanying the 2011 Form 10-K) in the third quarter of 2012 compared to the same quarter of 2011. In the nine months ended September 30, 2012, discharge growth of 4.4% coupled with a 3.3% increase in net patient revenue per discharge generated 7.8% growth in net patient revenue from our hospitals compared to the same period of 2011. Our discharge growth included a 2.9% increase in same-store discharges during the first nine months of 2012 compared to the same period of 2011. This revenue growth combined with improved operating leverage and labor productivity to result in a $23.9 million, or 9.2%, increase in operating earnings in the first nine months of 2012 compared to the same period of 2011. Net cash provided by operating activities was $302.2 million for the nine months ended September 30, 2012 compared to $213.2 million for the same period of 2011. Net cash provided by operating activities increased for the nine months ended September 30, 2012 compared to the same period of 2011 due primarily to increased Net operating revenues, improved operating leverage, and a decrease in interest expense. See the "Results of Operations" and "Liquidity and Capital Resources—Sources and Uses of Cash" sections of this Item.Our consolidated Net operating revenues consist primarily of revenues derived from patient care services. Net operating revenues also include other revenues generated from management and administrative fees and other nonpatient care services. These other revenues approximated 1.5% and 1.6% of consolidated Net operating revenues for the three months ended September 30, 2012 and 2011, respectively, and 1.5% and 1.8% of consolidated Net operating revenues for the nine months ended September 30, 2012 and 2011, respectively. See below for discussion of state provider taxes included in other revenues during the three and nine months ended September 30, 2011.
Net patient revenue from our hospitals was 8.7% higher for the three months ended September 30, 2012 than the three months ended September 30, 2011. This increase was attributable to a 4.2% increase in patient discharges and a 4.4% increase in net patient revenue per discharge. Discharge growth was comprised of 2.5% growth from new stores and a 1.7% increase in same-store discharges. Approximately 130 basis points of discharge growth from new stores resulted from the consolidation of St. Vincent Rehabilitation Hospital beginning in the third quarter of 2012, as described above. Discharge growth in the third quarter of 2012 was unfavorably impacted by the timing of patient discharges from the last week of September into the first week of October. We experienced a modest increase in the length of stay of our September patient population which we have seen normalize in October. Because we recognize revenue on a per diem basis, much of the revenue associated with the carryover patients was recognized in September even though the discharges occurred in October. Net patient revenue per discharge in the third quarter of 2012 compared to the same period of 2011 was favorably impacted by the aforementioned increase in length of stay and also benefited from pricing adjustments from Medicare (as discussed above) and managed care payors, higher average acuity for the patients served, and a higher percentage of Medicare patients (as shown in the above payor mix table).
Net patient revenue from our hospitals was 7.8% higher for the nine months ended September 30, 2012 than the nine months ended September 30, 2011 due to the same reasons discussed above for the quarter-over-quarter increase. Patient discharges increased 4.4% during the nine months ended September 30, 2012 compared to the same period of 2011. Discharge growth was enhanced during the nine months ended September 30, 2012 compared to the same period of 2011 by the additional day in February due to leap year as well as a 40 basis point increase in discharges resulting from our consolidation of St. Vincent Rehabilitation Hospital beginning in the third quarter of 2012, as described above. Same-store discharges were 2.9% higher period over period for the nine months.
Operating activities. Net cash provided by operating activities increased during the nine months ended September 30, 2012 compared to the same period of 2011 due primarily to increased Net operating revenues, improved operating leverage, and a decrease in interest expense. Net cash provided by operating activities for the nine months ended September 30, 2011 included the use of $26.9 million related to the premium associated with the redemption of our 10.75% Senior Notes and a $15.8 million decrease in the liability associated with Refunds due patients and other third-party payors. The decrease in this liability primarily related to a settlement discussed in Note 21, Settlements, to the 2011 Form 10-K.
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