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[8-K] Encompass Health Corporation Reports Material Event

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(Moderate)
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(Neutral)
Form Type
8-K
Rhea-AI Filing Summary

Encompass Health Corporation (NYSE: EHC) has published a new Investor Reference Book on June 25, 2025, providing comprehensive insights into the company's operations, strategy, and financial metrics. The document includes details about the company's business outlook, growth strategy, and operational initiatives.

The filing provides important context around non-GAAP financial measures, specifically:

  • Leverage Ratio: Defined as consolidated total debt to Adjusted EBITDA for trailing four quarters
  • Adjusted EBITDA: A key liquidity measure used in credit agreement covenants
  • Adjusted Free Cash Flow: Used to assess debt reduction capacity and development potential

The company emphasizes that noncompliance with financial covenants could trigger immediate debt repayment requirements. The filing includes forward-looking statements addressing potential risks such as infectious disease outbreaks, regulatory changes, staffing challenges, and cybersecurity threats that could impact future performance.

Encompass Health Corporation (NYSE: EHC) ha pubblicato un nuovo Investor Reference Book il 25 giugno 2025, offrendo approfondimenti completi sulle operazioni, la strategia e i dati finanziari della societ脿. Il documento include dettagli relativi alle prospettive aziendali, alla strategia di crescita e alle iniziative operative.

Il documento fornisce un importante contesto riguardo le misure finanziarie non-GAAP, nello specifico:

  • Indice di Leva Finanziaria: definito come il rapporto tra il debito totale consolidato e l'EBITDA rettificato degli ultimi quattro trimestri
  • EBITDA Rettificato: una misura chiave di liquidit脿 utilizzata nei covenant degli accordi di credito
  • Flusso di Cassa Libero Rettificato: utilizzato per valutare la capacit脿 di riduzione del debito e il potenziale di sviluppo

L'azienda sottolinea che la mancata conformit脿 ai covenant finanziari potrebbe comportare l'esigenza immediata di rimborso del debito. Il documento include inoltre dichiarazioni previsionali che affrontano rischi potenziali come epidemie, cambiamenti normativi, problemi di personale e minacce informatiche che potrebbero influenzare le performance future.

Encompass Health Corporation (NYSE: EHC) public贸 un nuevo Investor Reference Book el 25 de junio de 2025, ofreciendo una visi贸n completa sobre las operaciones, estrategia y m茅tricas financieras de la empresa. El documento incluye detalles sobre las perspectivas comerciales, la estrategia de crecimiento y las iniciativas operativas.

El informe proporciona un contexto importante sobre las medidas financieras no-GAAP, espec铆ficamente:

  • Ratio de Apalancamiento: definido como la deuda total consolidada dividida por el EBITDA ajustado de los 煤ltimos cuatro trimestres
  • EBITDA Ajustado: una medida clave de liquidez utilizada en los convenios de los acuerdos de cr茅dito
  • Flujo de Caja Libre Ajustado: usado para evaluar la capacidad de reducci贸n de deuda y el potencial de desarrollo

La empresa enfatiza que el incumplimiento de los convenios financieros podr铆a exigir el pago inmediato de la deuda. El informe incluye declaraciones prospectivas que abordan riesgos potenciales como brotes de enfermedades infecciosas, cambios regulatorios, desaf铆os de personal y amenazas de ciberseguridad que podr铆an afectar el desempe帽o futuro.

Encompass Health Corporation (NYSE: EHC)電� 2025雲� 6鞗� 25鞚� 靸堧鞖� 韴瀽鞛� 彀戈碃靹滊ゼ 氚滍憸頃橃棳 須岇偓鞚� 鞖挫榿, 鞝勲灥 氚� 鞛 歆�響滌棎 雽�頃� 韽磩鞝侅澑 韱奠鞍鞚� 鞝滉车頄堨姷雼堧嫟. 鞚� 氍胳劀鞐愲姅 須岇偓鞚� 靷梾 鞝勲, 靹膘灔 鞝勲灥 氚� 鞖挫榿 鞚措媹靺旐嫲敫岇棎 甏�頃� 靹鸽秬 鞝曤炒臧� 韽暔霅橃柎 鞛堨姷雼堧嫟.

鞚� 鞝滌稖 氍胳劀電� 牍�-GAAP 鞛 歆�響滌棎 雽�頃� 欷戩殧頃� 氚瓣步 鞝曤炒毳� 鞝滉车頃╇媹雼�. 甑泊鞝侅溂搿�:

  • 霠堧矂毽 牍勳湪: 斓滉芳 4攵勱赴 臁办爼 EBITDA 雽�牍� 鞐瓣舶 齑� 攵�毂勲 鞝曥潣霅�
  • 臁办爼 EBITDA: 鞁犾毄 瓿勳暯 鞎届爼鞐愳劀 靷毄霅橂姅 欤检殧 鞙犽彊靹� 歆�響�
  • 臁办爼 鞛愳湢 順勱笀 頋愲: 攵�毂� 臧愳稌 電ル牓 氚� 臧滊皽 鞛犾灛霠� 韽夑皜鞐� 靷毄霅�

須岇偓電� 鞛 鞎届爼 氙胳靾橁皜 歃夑皝鞝侅澑 攵�毂� 靸來櫂 鞖旉惮毳� 齑夒皽頃� 靾� 鞛堨潓鞚� 臧曥“頃╇媹雼�. 鞝滌稖 氍胳劀鞐愲姅 臧愳椉氤� 氚滌儩, 攴滌牅 氤�瓴�, 鞚鸽牓 氍胳牅, 靷澊氩� 氤挫晥 鞙勴槕 霌� 氙鸽灅 鞁れ爜鞐� 鞓來枼鞚� 氙胳範 靾� 鞛堧姅 鞛犾灛鞝� 鞙勴棙鞐� 甏�頃� 氙鸽灅 鞓堨浮 歆勳垹霃� 韽暔霅橃柎 鞛堨姷雼堧嫟.

Encompass Health Corporation (NYSE : EHC) a publi茅 un nouveau Investor Reference Book le 25 juin 2025, offrant des informations compl猫tes sur les op茅rations, la strat茅gie et les indicateurs financiers de la soci茅t茅. Le document d茅taille les perspectives commerciales, la strat茅gie de croissance et les initiatives op茅rationnelles.

Le d茅p么t fournit un contexte important concernant les mesures financi猫res non-GAAP, notamment :

  • Ratio d鈥檈ndettement : d茅fini comme la dette totale consolid茅e rapport茅e 脿 l鈥橢BITDA ajust茅 des quatre derniers trimestres
  • EBITDA ajust茅 : une mesure cl茅 de liquidit茅 utilis茅e dans les clauses des accords de cr茅dit
  • Flux de tr茅sorerie disponible ajust茅 : utilis茅 pour 茅valuer la capacit茅 de r茅duction de la dette et le potentiel de d茅veloppement

La soci茅t茅 souligne que le non-respect des engagements financiers pourrait entra卯ner une exigence imm茅diate de remboursement de la dette. Le document comprend 茅galement des d茅clarations prospectives abordant des risques potentiels tels que les 茅pid茅mies, les changements r茅glementaires, les difficult茅s de recrutement et les menaces de cybers茅curit茅 susceptibles d鈥檌mpacter la performance future.

Encompass Health Corporation (NYSE: EHC) hat am 25. Juni 2025 ein neues Investor Reference Book ver枚ffentlicht, das umfassende Einblicke in die Gesch盲ftst盲tigkeit, Strategie und finanzielle Kennzahlen des Unternehmens bietet. Das Dokument enth盲lt Details zur Gesch盲ftsaussicht, Wachstumsstrategie und operativen Initiativen.

Die Einreichung liefert wichtige Erl盲uterungen zu nicht-GAAP-Finanzkennzahlen, insbesondere:

  • Verschuldungsgrad: Definiert als konsolidierte Gesamtschulden im Verh盲ltnis zum bereinigten EBITDA der letzten vier Quartale
  • Bereinigtes EBITDA: Ein wichtiger Liquidit盲tsindikator, der in Kreditvertragsklauseln verwendet wird
  • Bereinigter Free Cashflow: Wird zur Beurteilung der F盲higkeit zur Schuldenreduzierung und des Entwicklungspotenzials herangezogen

Das Unternehmen betont, dass die Nichteinhaltung der finanziellen Covenants eine sofortige R眉ckzahlung der Schulden ausl枚sen k枚nnte. Das Dokument enth盲lt zudem zukunftsgerichtete Aussagen, die potenzielle Risiken wie Ausbr眉che von Infektionskrankheiten, regulatorische 脛nderungen, Personalengp盲sse und Cybersecurity-Bedrohungen behandeln, die die zuk眉nftige Leistung beeinflussen k枚nnten.

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Encompass Health Corporation (NYSE: EHC) ha pubblicato un nuovo Investor Reference Book il 25 giugno 2025, offrendo approfondimenti completi sulle operazioni, la strategia e i dati finanziari della societ脿. Il documento include dettagli relativi alle prospettive aziendali, alla strategia di crescita e alle iniziative operative.

Il documento fornisce un importante contesto riguardo le misure finanziarie non-GAAP, nello specifico:

  • Indice di Leva Finanziaria: definito come il rapporto tra il debito totale consolidato e l'EBITDA rettificato degli ultimi quattro trimestri
  • EBITDA Rettificato: una misura chiave di liquidit脿 utilizzata nei covenant degli accordi di credito
  • Flusso di Cassa Libero Rettificato: utilizzato per valutare la capacit脿 di riduzione del debito e il potenziale di sviluppo

L'azienda sottolinea che la mancata conformit脿 ai covenant finanziari potrebbe comportare l'esigenza immediata di rimborso del debito. Il documento include inoltre dichiarazioni previsionali che affrontano rischi potenziali come epidemie, cambiamenti normativi, problemi di personale e minacce informatiche che potrebbero influenzare le performance future.

Encompass Health Corporation (NYSE: EHC) public贸 un nuevo Investor Reference Book el 25 de junio de 2025, ofreciendo una visi贸n completa sobre las operaciones, estrategia y m茅tricas financieras de la empresa. El documento incluye detalles sobre las perspectivas comerciales, la estrategia de crecimiento y las iniciativas operativas.

El informe proporciona un contexto importante sobre las medidas financieras no-GAAP, espec铆ficamente:

  • Ratio de Apalancamiento: definido como la deuda total consolidada dividida por el EBITDA ajustado de los 煤ltimos cuatro trimestres
  • EBITDA Ajustado: una medida clave de liquidez utilizada en los convenios de los acuerdos de cr茅dito
  • Flujo de Caja Libre Ajustado: usado para evaluar la capacidad de reducci贸n de deuda y el potencial de desarrollo

La empresa enfatiza que el incumplimiento de los convenios financieros podr铆a exigir el pago inmediato de la deuda. El informe incluye declaraciones prospectivas que abordan riesgos potenciales como brotes de enfermedades infecciosas, cambios regulatorios, desaf铆os de personal y amenazas de ciberseguridad que podr铆an afectar el desempe帽o futuro.

Encompass Health Corporation (NYSE: EHC)電� 2025雲� 6鞗� 25鞚� 靸堧鞖� 韴瀽鞛� 彀戈碃靹滊ゼ 氚滍憸頃橃棳 須岇偓鞚� 鞖挫榿, 鞝勲灥 氚� 鞛 歆�響滌棎 雽�頃� 韽磩鞝侅澑 韱奠鞍鞚� 鞝滉车頄堨姷雼堧嫟. 鞚� 氍胳劀鞐愲姅 須岇偓鞚� 靷梾 鞝勲, 靹膘灔 鞝勲灥 氚� 鞖挫榿 鞚措媹靺旐嫲敫岇棎 甏�頃� 靹鸽秬 鞝曤炒臧� 韽暔霅橃柎 鞛堨姷雼堧嫟.

鞚� 鞝滌稖 氍胳劀電� 牍�-GAAP 鞛 歆�響滌棎 雽�頃� 欷戩殧頃� 氚瓣步 鞝曤炒毳� 鞝滉车頃╇媹雼�. 甑泊鞝侅溂搿�:

  • 霠堧矂毽 牍勳湪: 斓滉芳 4攵勱赴 臁办爼 EBITDA 雽�牍� 鞐瓣舶 齑� 攵�毂勲 鞝曥潣霅�
  • 臁办爼 EBITDA: 鞁犾毄 瓿勳暯 鞎届爼鞐愳劀 靷毄霅橂姅 欤检殧 鞙犽彊靹� 歆�響�
  • 臁办爼 鞛愳湢 順勱笀 頋愲: 攵�毂� 臧愳稌 電ル牓 氚� 臧滊皽 鞛犾灛霠� 韽夑皜鞐� 靷毄霅�

須岇偓電� 鞛 鞎届爼 氙胳靾橁皜 歃夑皝鞝侅澑 攵�毂� 靸來櫂 鞖旉惮毳� 齑夒皽頃� 靾� 鞛堨潓鞚� 臧曥“頃╇媹雼�. 鞝滌稖 氍胳劀鞐愲姅 臧愳椉氤� 氚滌儩, 攴滌牅 氤�瓴�, 鞚鸽牓 氍胳牅, 靷澊氩� 氤挫晥 鞙勴槕 霌� 氙鸽灅 鞁れ爜鞐� 鞓來枼鞚� 氙胳範 靾� 鞛堧姅 鞛犾灛鞝� 鞙勴棙鞐� 甏�頃� 氙鸽灅 鞓堨浮 歆勳垹霃� 韽暔霅橃柎 鞛堨姷雼堧嫟.

Encompass Health Corporation (NYSE : EHC) a publi茅 un nouveau Investor Reference Book le 25 juin 2025, offrant des informations compl猫tes sur les op茅rations, la strat茅gie et les indicateurs financiers de la soci茅t茅. Le document d茅taille les perspectives commerciales, la strat茅gie de croissance et les initiatives op茅rationnelles.

Le d茅p么t fournit un contexte important concernant les mesures financi猫res non-GAAP, notamment :

  • Ratio d鈥檈ndettement : d茅fini comme la dette totale consolid茅e rapport茅e 脿 l鈥橢BITDA ajust茅 des quatre derniers trimestres
  • EBITDA ajust茅 : une mesure cl茅 de liquidit茅 utilis茅e dans les clauses des accords de cr茅dit
  • Flux de tr茅sorerie disponible ajust茅 : utilis茅 pour 茅valuer la capacit茅 de r茅duction de la dette et le potentiel de d茅veloppement

La soci茅t茅 souligne que le non-respect des engagements financiers pourrait entra卯ner une exigence imm茅diate de remboursement de la dette. Le document comprend 茅galement des d茅clarations prospectives abordant des risques potentiels tels que les 茅pid茅mies, les changements r茅glementaires, les difficult茅s de recrutement et les menaces de cybers茅curit茅 susceptibles d鈥檌mpacter la performance future.

Encompass Health Corporation (NYSE: EHC) hat am 25. Juni 2025 ein neues Investor Reference Book ver枚ffentlicht, das umfassende Einblicke in die Gesch盲ftst盲tigkeit, Strategie und finanzielle Kennzahlen des Unternehmens bietet. Das Dokument enth盲lt Details zur Gesch盲ftsaussicht, Wachstumsstrategie und operativen Initiativen.

Die Einreichung liefert wichtige Erl盲uterungen zu nicht-GAAP-Finanzkennzahlen, insbesondere:

  • Verschuldungsgrad: Definiert als konsolidierte Gesamtschulden im Verh盲ltnis zum bereinigten EBITDA der letzten vier Quartale
  • Bereinigtes EBITDA: Ein wichtiger Liquidit盲tsindikator, der in Kreditvertragsklauseln verwendet wird
  • Bereinigter Free Cashflow: Wird zur Beurteilung der F盲higkeit zur Schuldenreduzierung und des Entwicklungspotenzials herangezogen

Das Unternehmen betont, dass die Nichteinhaltung der finanziellen Covenants eine sofortige R眉ckzahlung der Schulden ausl枚sen k枚nnte. Das Dokument enth盲lt zudem zukunftsgerichtete Aussagen, die potenzielle Risiken wie Ausbr眉che von Infektionskrankheiten, regulatorische 脛nderungen, Personalengp盲sse und Cybersecurity-Bedrohungen behandeln, die die zuk眉nftige Leistung beeinflussen k枚nnten.

false000078516100007851612025-06-252025-06-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 25, 2025
Encompass Health Corporation
(Exact name of Registrant as specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
001-1031563-0860407
(Commission File Number)(IRS Employer Identification No.)
9001 Liberty Parkway, Birmingham, Alabama 35242
(Address of Principal Executive Offices, Including Zip Code)
(205) 967-7116
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.     Emerging growth company   ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareEHCNew York Stock Exchange


ITEM 7.01. Regulation FD Disclosure.
On June 25, 2025, Encompass Health Corporation (the “Company” or “Encompass Health”) published an Investor Reference Book, a copy of which is attached to this Current Report on Form 8-K as Exhibit 99.1 and incorporated herein by reference (the “Investor Reference Book”). The Investor Reference Book addresses, among other things, an overview of the Company and its industry, its business outlook, its growth strategy, and its operational initiatives. The Investor Reference Book is available at http://investor.encompasshealth.com by clicking on an available link.
The information contained herein is being furnished pursuant to Item 7.01 of Form 8-K, “Regulation FD Disclosure.” This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The furnishing of this information will not be deemed an admission as to the materiality of any information contained herein.
Note Regarding Presentation of Non-GAAP Financial Measures
The financial data contained in the Investor Reference Book include non-GAAP financial measures, including the Company’s, leverage ratio, Adjusted EBITDA, and adjusted free cash flow.
The leverage ratio referenced therein is defined as the ratio of consolidated total debt to Adjusted EBITDA for the trailing four quarters. The Company believes its leverage ratio and Adjusted EBITDA are measures of its ability to service its debt and its ability to make capital expenditures. Additionally, the leverage ratio is a standard measurement used by investors to gauge the creditworthiness of an institution. The Company’s credit agreement also includes a maximum leverage ratio financial covenant which allows the Company to deduct cash on hand from consolidated total debt. In calculating the leverage ratio under our credit agreement, we are permitted to use pro forma Adjusted EBITDA, the calculation of which includes historical income statement items and pro forma adjustments, subject to certain limitations, resulting from (1) dispositions and repayments or incurrence of debt and (2) investments, acquisitions, mergers, amalgamations, consolidations and other operational changes to the extent such items or effects are not yet reflected in our trailing four-quarter financial statements. The Company reconciles Adjusted EBITDA to net cash provided by operating activities and net income in the Investor Reference Book attached as Exhibit 99.1.
The Company uses Adjusted EBITDA on a consolidated basis as a liquidity measure. The Company believes this financial measure on a consolidated basis is important in analyzing its liquidity because it is the key component of certain material covenants contained within the Company’s credit agreement, which is discussed in more detail in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, “Liquidity and Capital Resources,” and Note 9, Long-term Debt, to the consolidated financial statements included in its Annual Report on Form 10‑K for the year ended December 31, 2024 (the “2024 Form 10‑K”). These covenants are material terms of the credit agreement. Noncompliance with these financial covenants under the credit agreement—its interest coverage ratio and its leverage ratio—could result in the Company’s lenders requiring the Company to immediately repay all amounts borrowed. If the Company anticipated a potential covenant violation, it would seek relief from its lenders, which would have some cost to the Company, and such relief might be on terms less favorable to those in the Company’s existing credit agreement. In addition, if the Company cannot satisfy these financial covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying common stock dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the Company’s assessment of its liquidity.
In general terms, the credit agreement definition of Adjusted EBITDA, therein referred to as “Adjusted Consolidated EBITDA,” allows the Company to add back to consolidated net income interest expense, income taxes, and depreciation and amortization and then add back to consolidated net income (1) all unusual or nonrecurring items reducing consolidated net income (of which only up to $10 million in a year may be cash expenditures), (2) any losses from discontinued operations, (3) non-ordinary course fees, costs and expenses incurred with respect to any litigation or settlement, (4) share-based compensation expense, (5) costs and expenses associated with changes in the fair value of marketable securities, (6) costs and expenses associated with the issuance or prepayment of debt and acquisitions, and (7) any restructuring charges and certain pro-forma cost savings and synergies related to transactions and initiatives, which in the aggregate are not in excess of 25% of Adjusted Consolidated EBITDA. The Company also subtracts from consolidated net income all unusual or nonrecurring items to the extent they increase consolidated net income.
The calculation of Adjusted EBITDA under the credit agreement does not require us to deduct net income attributable to noncontrolling interests or gains on fair value adjustments of hedging and equity instruments, disposal of assets, and development activities. It also does not allow us to add back losses on fair value adjustments of hedging instruments or unusual or nonrecurring cash expenditures in excess of $10 million. These items and amounts, in addition to the items falling within the


credit agreement’s “unusual or nonrecurring” classification, may occur in future periods, but can vary significantly from period to period and may not directly relate to, or be indicative of, the Company's ongoing liquidity or operating performance. Accordingly, the Adjusted EBITDA calculation presented here includes adjustments for them.
Adjusted EBITDA is not a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Therefore, Adjusted EBITDA should not be considered a substitute for net income or cash flows from operating, investing, or financing activities. Because Adjusted EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. Revenues and expenses are measured in accordance with the policies and procedures described in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements accompanying the 2024 Form 10-K.
The Company also uses adjusted free cash flow as an analytical indicator to assess its performance. Management believes the presentation of adjusted free cash flow provides investors an efficient means by which they can evaluate the Company’s capacity to reduce debt, pursue development activities, and return capital to its common stockholders. The calculation of adjusted free cash flow and a reconciliation of net cash provided by operating activities to adjusted free cash flow is included in the Investor Reference Book attached as Exhibit 99.1. This measure is not a defined measure of financial performance under GAAP and should not be considered as an alternative to net cash provided by operating activities. The Company’s definition of adjusted free cash flow is net cash provided by operating activities of continuing operations minus capital expenditures for maintenance, distributions to noncontrolling interests, and certain items deemed to be non-indicative of ongoing operating performance. Common stock dividends are not included in the calculation of adjusted free cash flow. The Company’s definition of adjusted free cash flow is limited and does not represent residual cash flows available for discretionary spending. Because this measure is not determined in accordance with GAAP and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies. See the consolidated statements of cash flows included in the 2024 Form 10-K for the GAAP measures of cash flows from operating, investing, and financing activities.
Forward-Looking Statements
Statements contained in this Form 8-K and the Investor Reference Book attached as Exhibit 99.1 which are not historical facts, such as those relating to the business outlook, growth strategy and pipeline, development costs and timelines, and operational initiatives, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, 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 Encompass Health 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 and involve a number of risks and uncertainties. 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 Encompass Health include, but are not limited to, infectious disease outbreak, including the speed, depth, geographic reach and duration of its spread, which could decrease our patient volumes and revenues and lead to staffing and supply shortages and associated cost increases; the legal, regulatory and administrative developments, including employment and environmental related regulations, that occur at the federal, state and local levels; the demand for Encompass Health’s services, including based on any downturns in the economy, consumer confidence, or the capital markets; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's or its vendors' or partners’ information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information or inability to provide patient care because of system unavailability as well as unforeseen issues, if any, related to integration of acquired systems; Encompass Health'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 Encompass Health'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 and Encompass Health's ability to adapt operations to those changes; Encompass Health's ability to control costs, particularly labor and employee benefit costs, including group medical expenses; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages, which may be worsened by infectious disease outbreaks, and the impact on Encompass Health's labor expenses from potential union activity, staffing shortages, and competitive compensation practices; general conditions in the economy and capital markets, including any instability or uncertainty related to tariffs, trade wars, armed conflicts or acts of terrorism, governmental impasse over approval of the United States federal budget, an increase in the debt ceiling, or an international sovereign debt crisis; any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving Encompass Health, including any matters related to yet undiscovered


issues, if any, in acquired operations; Encompass Health’s ability to realize construction cost and time savings from prefabrication of hospitals; increases in Medicare audit activity, including increased use of sampling and extrapolation, resulting in additional unpaid reimbursement claims and an increase in the backlog of appealed claims denials; competitive pressures in the healthcare industry and Encompass Health's response thereto; changes in the Medicare regulations specific to inpatient rehabilitation, including the review choice demonstration project and the Transforming Episode Accountability Model; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10‑K for the year ended December 31, 2024 and the Company's quarterly report on Form 10-Q for the quarterly period ended March 31, 2025.
ITEM 9.01. Financial Statements and Exhibits.
(d)    Exhibits.
Exhibit NumberDescription
99.1
Encompass Health Corporation Investor Reference Book
104Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
ENCOMPASS HEALTH CORPORATION
By:
/S/   DOUGLAS E. COLTHARP
Name:Douglas E. Coltharp
Title:Executive Vice President and Chief Financial Officer
Dated: June 25, 2025

Source:

FAQ

What did EHC announce in their 8-K filing on June 25, 2025?

EHC announced the publication of their Investor Reference Book, which contains information about the company overview, industry insights, business outlook, growth strategy, and operational initiatives. The document is available on their investor relations website at http://investor.encompasshealth.com.

How does EHC calculate its leverage ratio in their credit agreement?

EHC's leverage ratio is calculated as the ratio of consolidated total debt to Adjusted EBITDA for the trailing four quarters. Under their credit agreement, they can deduct cash on hand from consolidated total debt and use pro forma Adjusted EBITDA, which includes historical income statement items and certain pro forma adjustments from dispositions, debt changes, investments, acquisitions, and other operational changes.

What are the key components of EHC's Adjusted EBITDA calculation?

EHC's Adjusted EBITDA calculation starts with consolidated net income and adds back: 1) interest expense, 2) income taxes, 3) depreciation and amortization, 4) unusual/nonrecurring items (up to $10M in cash expenditures), 5) losses from discontinued operations, 6) litigation-related expenses, 7) share-based compensation, and 8) costs related to debt issuance, acquisitions, and restructuring (capped at 25% of Adjusted EBITDA).

What are the main risk factors EHC disclosed in their 8-K filing?

Key risks disclosed include: 1) infectious disease outbreaks affecting patient volumes and staffing, 2) regulatory and administrative changes, 3) cybersecurity threats and system disruptions, 4) healthcare reimbursement changes, 5) labor challenges including staffing shortages and wage pressures, 6) economic uncertainties, and 7) increased Medicare audit activity.

Who signed the 8-K filing for Encompass Health (EHC)?

The 8-K was signed by Douglas E. Coltharp, who serves as Executive Vice President and Chief Financial Officer of Encompass Health Corporation, on June 25, 2025.
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Encompass Health Corp

NYSE:EHC

EHC Rankings

#1223 Ranked by Market Cap
#1971 Ranked by Dividends

EHC Latest News

Jul 9, 2025
Encompass Health announces date of 2025 second quarter earnings call
Jun 18, 2025
Encompass Health announces preliminary plans to build a 50-bed inpatient rehabilitation hospital in North Las Vegas
May 20, 2025
Rehabilitation Hospital of Fort Myers now open in Florida
May 12, 2025
Encompass Health announces preliminary plans to build a 50-bed inpatient rehabilitation hospital in Apollo Beach, Florida
May 2, 2025
Encompass Health opens request for 2025 research grant applications

EHC Stock Data

11.98B
99.45M
1.32%
97.72%
2.1%
Medical Care Facilities
Services-hospitals
United States
BIRMINGHAM