Encompass Health Corporation filed a current report with the SEC on November 6, 2026, disclosing storm-related damage suffered by one of its hospitals in Florida and furnishing an accompanying press release under Regulation FD.

Key Highlights

  • Storm damage disclosed: Encompass Health reported that one of its Florida hospitals sustained recent storm-related damage, according to the filing.
  • Press release furnished: A press release regarding the damage was attached as Exhibit 99.1 and incorporated by reference into the report.
  • Non-GAAP measures included: The press release contains adjusted earnings per share and Adjusted EBITDA, both of which are non-GAAP financial measures.
  • Credit agreement covenants: The filing states that Adjusted EBITDA is "the key component of certain material covenants" in the company's credit agreement, including an interest coverage ratio and a leverage ratio.
  • Covenant risk noted: The filing states that noncompliance with financial covenants "could result in the Company's lenders requiring the Company to immediately repay all amounts borrowed."
  • Exchange listing: Common Stock, par value $0.01 per share, trades on NYSE:EHC.

Encompass Health Reports Storm Impact at Florida Facility and Outlines Non-GAAP Financial Context

Encompass Health Corporation, a healthcare company headquartered at 9001 Liberty Parkway, Birmingham, Alabama, operates inpatient rehabilitation hospitals across the United States. On November 6, 2026, the company furnished a press release disclosing storm-related damage at one of its Florida hospitals. The report was filed under Item 7.01, Regulation FD Disclosure, and the filing states that the information "shall not be deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934." The filing also notes that "the furnishing of this information will not be deemed an admission as to the materiality of any information contained herein."

The press release attached as Exhibit 99.1 includes non-GAAP financial measures: adjusted earnings per share from continuing operations and Adjusted EBITDA. The company describes adjusted earnings per share as excluding items such as government and class action settlements, professional fees, mark-to-market adjustments for stock appreciation rights, loss on early extinguishment of debt, and certain other items it considers "non-indicative of its ongoing operating performance." The filing cautions that "adjusted earnings per share should not be considered as a measure of financial performance under generally accepted accounting principles."

Regarding Adjusted EBITDA, the filing describes it as a liquidity measure that is central to covenants in the company's credit agreement. The credit agreement definition, referred to therein as "Adjusted Consolidated EBITDA," permits the company to add back interest expense, income taxes, depreciation and amortization, and certain other items to consolidated net income, subject to specified limits. Among those limits, unusual or nonrecurring cash expenditures added back are capped at $10 million per year, and restructuring-related pro-forma adjustments may not in aggregate exceed 25% of Adjusted Consolidated EBITDA. The filing further notes that the company "does not produce interim financial statements in accordance with GAAP at the subsidiary level," making any individual hospital's Adjusted EBITDA contribution an estimate only.

What Was Disclosed

Encompass Health filed a current report on November 6, 2026, disclosing storm-related damage at a Florida hospital and furnishing a press release containing non-GAAP financial measures, including adjusted earnings per share and Adjusted EBITDA, alongside an explanation of credit agreement covenant implications.