HealthSouth Declares Dividend on Common Stock and on 6.5% Series A Convertible Perpetual Preferred Stock

HealthSouth Declares Dividend on Common Stock and on 6.5% Series A Convertible
                          Perpetual Preferred Stock

PR Newswire

BIRMINGHAM, Ala., May 1, 2014

BIRMINGHAM, Ala., May 1, 2014 /PRNewswire/ -- HealthSouth Corporation (NYSE:
HLS) today announced that its board of directors has declared a quarterly cash
dividend on its common stock of $0.18 per share and a quarterly cash dividend
of $16.25 per share on its 6.5% Series A Convertible Perpetual Preferred
Stock, each payable on July 15, 2014, to holders of record on July 1, 2014.

The 6.5% Series A Convertible Perpetual Preferred Stock is convertible, at the
option of the holder, at any time into shares of common stock at a conversion
rate of 33.3222 shares of common stock per share of preferred stock and also
includes antidilutive protection that provides for an increase in the number
of shares of common stock issuable upon conversion resulting from common stock
dividends after a de minimis threshold. The payment in July of an $0.18 per
share dividend on HealthSouth's common stock likely will not trigger the
antidilutive adjustment because such amount would likely result in a de
minimis adjustment of less than 1% under the terms of the preferred stock.
Subsequent declaration and payment of dividends on HealthSouth common stock
will likely require an adjustment. 

In addition, the Company's 2.0% Convertible Senior Subordinated Notes are
convertible at the option of the holder, at any time prior to the close of
business on the business day immediately preceding December 1, 2043 into
shares of common stock at a conversion rate of 25.4896 shares of common stock
per $1,000 principal and include antidilutive protection that provides for an
increase in the number of shares of common stock issuable upon conversion
resulting from common stock dividends after a de minimis threshold. The
payment in July of an $0.18 per share dividend on HealthSouth's common stock
likely will not trigger the antidilutive adjustment because such amount would
likely result in a de minimis adjustment of less than 1% under the terms of
these notes. Subsequent declaration and payment of dividends on HealthSouth
common stock will likely require an adjustment. 

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, cardiac and pulmonary conditions,
brain and spinal cord injuries, complex orthopedic conditions, and
amputations. HealthSouth can be found on the Web at www.healthsouth.com.

Forward-Looking Statements
Statements contained in this press release which are not historical facts,
such as the dividend payment plans and related antidilution adjustment
prospects, 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,
HealthSouth's business strategy, its financial plans, its future financial
performance, or its projected business results. 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, general conditions in the economy and capital markets; changes in the
market price of HealthSouth's common stock; and other factors which may be
identified from time to time in HealthSouth's SEC filings and other public
announcements, including HealthSouth's Annual Report on Form 10-K for the year
ended December 31, 2013 and Form 10-Q for the quarter ended March 31, 2014.

Media Contact
Casey Lassiter, 205-410-2777

Investor Relations Contact
Mary Ann Arico, 205-969-6175
maryann.arico@healthsouth.com

SOURCE HealthSouth Corporation

Website: http://www.healthsouth.com
 
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