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Healthsouth 8-K Shows FY 2015 EPS $2.13-$2.19

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"HealthSouth Corporation (the "Company") will hold an investor meeting in New York City on June 10, 2015. Representatives of the Company will make presentations beginning at 8:30 a.m. ET and ending at noon ET at the Pierre Hotel using the slides attached to this Current Report on Form 8-K as Exhibit 99.1 (the "Investor Day Slides"). The Investor Day Slides address, among other things, an overview of the Company and its industry, a historical perspective of the Company, the Company's business outlook, the Company's financial and operational metrics and initiatives, and the Company's value proposition. The investor day presentations will be webcast live and the Investor Day Slides will be available at http://investor.healthsouth.com by clicking on an available link.
The Company will share its preliminary observations and considerations on the quarter and six months ending June 30, 2015 during the investor day presentations. These preliminary observations and considerations include the following:

The Company expects to report solid volume growth for the second quarter of 2015, including discharges from its recently closed acquisition of Cardinal Hill Rehabilitation Hospital in Lexington, Kentucky and its joint venture with Memorial Health in Savannah, Georgia.

Based on the Supplemental Security Income, or "SSI," ratios recently published by the Centers for Medicare and Medicaid Services ("CMS") for fiscal year 2013, the Company expects Adjusted EBITDA in the second quarter of 2015 to be negatively impacted by approximately $4 million to $5 million reflecting retroactive adjustments for full-year 2013, full-year 2014, and year-to-date 2015. CMS periodically retroactively updates SSI ratios that are used to determine adjustments to Medicare payment rates for low-income patients.
The Company reiterates as of the date hereof its Adjusted EBITDA guidance range of $670 million to $680 million and its earnings per share from continuing operations attributable to HealthSouth guidance range of $2.13 to $2.19 for full-year 2015, as previously reported in the press release furnished as an exhibit to the Current Report on Form 8-K dated April 30, 2015 and during the Company's earnings conference call held on May 1, 2015. Other guidance considerations for April 1, 2015 through December 31, 2015 are included on pages 43 and 44 of the Investor Day Slides. Specifically, the Company's home health and hospice segment remains on track to contribute approximately $72 million of Adjusted EBITDA after noncontrolling interest, excluding HealthSouth's legacy 25 home health agencies.
The Company uses "same-store" comparisons to explain the changes in certain performance metrics and line items within its financial statements. Same-store comparisons are calculated based on hospitals open throughout both the full current periods and throughout the full prior periods presented. These comparisons include the financial results of market consolidation transactions in existing markets, as it is difficult to determine, with precision, the incremental impact of these transactions on the Company's results of operations.
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."

 

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