healthsouth corp (HLS) Key Developments
HealthSouth Corp. to Acquire CareSouth Health System, Inc. Agency Operations for USD 170 Million
Sep 1 15
HealthSouth Corp. has entered into a definitive agreement to acquire the home health agency operations of CareSouth Health System Inc. for a cash purchase price of USD 170 million. CareSouth operates a portfolio of 45 home health locations in 7 states.
HealthSouth Announces Executive Changes, Effective Sept. 1, 2015
Aug 12 15
HealthSouth announced that Crissy Buchanan Carlisle has been named Chief Investor Relations Officer effective Sept. 1, 2015, following the retirement of current Chief Investor Relations Officer Mary Ann Arico. Carlisle currently serves as Vice President of Financial Reporting for the company. Carlisle joined HealthSouth in February 2005 as the Director of SEC Reporting and was quickly promoted to Vice President of Financial Reporting in August 2005. She brings more than 20 years of financial advisory and accounting experience to the role of Chief Investor Relations Officer for HealthSouth. Prior to joining HealthSouth, Carlisle served as a director within the corporate recovery division of PricewaterhouseCoopers LLP and additionally as a manager within their audit practice.
HealthSouth Corporation Announces Private Offering of Senior Notes
Aug 4 15
HealthSouth Corporation announced that it intends to offer through a private placement, subject to market and other conditions, $300 million aggregate principal amount of its 5.75% senior notes due 2024. The company will pay interest on the Additional Notes semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2015. The Additional Notes will be jointly and severally guaranteed on a senior unsecured basis by all of the company's existing and future subsidiaries that guarantee borrowings under the Company's credit agreement and other capital markets debt. The company intends to use the net proceeds from this private offering, along with cash on hand and certain borrowings under its senior secured credit facility, to fund the Company's previously announced acquisition of the operations of Reliant Hospital Partners, LLC and affiliated entities and to pay fees and expenses related to the Reliant acquisition, which is expected to close in the fourth quarter of 2015. This private offering, however, is not conditioned upon the completion of the Reliant acquisition, and the Reliant acquisition is subject to conditions that do not include the consummation of this offering.
HealthSouth Corporation Amends the Restatement of Credit Agreement
Jul 30 15
On July 29, 2015, HealthSouth Corporation entered into the fourth amendment to its existing third amended and restated credit agreement, dated August 10, 2012, as supplemented or otherwise modified from time to time. The parties to the Credit Agreement, as amended, are the Company, Barclays Bank PLC, as administrative agent and collateral agent, Citigroup Global Markets Inc., as syndication agent, Bank of America, N.A., Goldman Sachs Lending Partners LLC, and Morgan Stanley Senior Funding Inc., as co-documentation agents, and various other lenders from time to time. The Amendment made changes to the Credit Agreement to: establish, in addition to the existing $600 million revolving credit facilities and $195 million of outstanding term loans, $500 million in new term loan facilities under which amounts may be drawn on or before December 31, 2015; to change the maximum leverage ratio in the financial covenants applicable for the period July 2015 through June 2017 from then until maturity; and to set the maturity date for all revolving credit and term loan facilities to July 29, 2020.
HealthSouth Corp. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Revises Earnings Guidance for the Year 2015
Jul 29 15
HealthSouth Corp. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company's net operating revenues were $764.4 million compared to $604.4 million a year ago. Income from continuing operations before income tax expense was $94.0 million against $130.6 million a year ago. Net income attributable to the company's common shareholders was $42.9 million or $0.45 per diluted share against $81.6 million or $0.85 per diluted share a year ago. Income from continuing operations was $61.8 million or $0.47 per share compared to $94.1 million or $0.81 per share a year ago. Adjusted EBITDA was $169.5 million against $152.7 million a year ago. Adjusted free cash flow was $94.5 million compared to $97.9 million a year ago.
For the six months, the company reported net operating revenues of $1,505.0 million against $1,195.6 million a year ago. Income from continuing operations before income tax expense was $183.6 million against $225.0 million a year ago. Income from continuing operations was $121.1 million or 0.91 per diluted share against $155.7 million or $1.29 per diluted share a year ago. Net income attributable to the company's common shareholders was $83.8 million or $0.89 per diluted share against $126.7 million or $1.33 per diluted share a year ago. Net cash provided by operating activities was $204.9 million compared to $235.1 million a year ago. This decrease primarily resulted from increases in working capital and cash interest expense, as well as transaction costs incurred to date in connection with the Company's pending acquisition of Reliant Hospital Partners, LLC and affiliated entities. Purchases of property and equipment were $46.3 million against $89.5 million a year ago. Adjusted EBITDA was $325.6 million against $296.8 million a year ago. Adjusted free cash flow was $173.9 million against $163.0 million a year ago. Capitalized software costs were $15.2 million against $11.0 million a year ago.
For the year 2015, the company reiterates its adjusted EBITDA guidance of $670 million to $680 million. The company currently expects its adjusted EBITDA to be in the lower end of this range. The company is revising its previously provided earnings per diluted share guidance from a range of $2.13 per share to $2.19 per share to a range of $2.11 per share to $2.17 per share to include approximately $3 million of transaction costs incurred to date related to its pending acquisition of Reliant.