HealthSouth Reports Third Quarter EPS of $.27

HealthSouth Corporation HLS today reported the results of its operations for the quarter ended September 30, 2010.

Third Quarter Results

• Consolidated net operating revenues were $490.7 million for the third quarter of 2010 compared to $470.4 million for the third quarter of 2009, or an increase of 4.3%. This increase was attributable to higher net patient revenue per discharge and a 2.5% increase in patient discharges. Net patient revenue per discharge increased 2.7% quarter over quarter due primarily to the Medicare pricing changes that became effective October 1, 2009. Same store discharges were 0.4% higher quarter over quarter.
• Reported net income per diluted share for the third quarter of 2010 was $0.27 per share compared to $0.12 per diluted share for the third quarter of 2009. Diluted weighted average common shares outstanding increased by 6.0% quarter over quarter due primarily to the five million shares issued on September 30, 2009 in full satisfaction of the Company's obligation to do so under the 2006 securities litigation settlement.
• Adjusted income from continuing operations (see attached supplemental information) per diluted share grew 2.4% from $0.42 per diluted share for the third quarter of 2009 to $0.43 per diluted share for the third quarter of 2010. The Company experienced quarter-over-quarter growth due primarily to increased revenues offset by the increased share count discussed above and expenses outpacing revenues during the ramp up phase at our new or newly acquired hospitals.
• Cash flows provided by operating activities were $269.5 million for the nine months ended September 30, 2010 compared to $362.1 million for the same period of 2009, which included approximately $133 million related to the Company's settlement with UBS and the receipt of income tax refunds related to prior periods. Cash flows provided by operating activities for the nine months ended September 30, 2010 included approximately $12 million of state income tax refunds associated with prior periods.  
• Adjusted Consolidated EBITDA (see attached supplemental information) for the third quarter of 2010 was $100.5 million compared to $95.9 million in the third quarter of 2009, or an increase of 4.8%.