HealthSouth says may avoid bankruptcy with projected $4.1 billion in net revenue

By Carlise Newman

Chicago, July 7 - HealthSouth Corp. said Monday it has a good chance of avoiding bankruptcy.

In a presentation to employees, HealthSouth said it is expecting net revenue of $4.1 billion and free cash flow of $328 million over the next 12 months

The Birmingham, Ala.-based provider of rehabilitation care, outpatient surgery and diagnostic imaging services said it has a strong liquidity position. As of June 27 consolidated book cash was $345 million "and growing" with projected cash as of Aug. 31 of $500 million. HealthSouth also said it has positive cash flow from operations, has executed annualized cost savings of $80 million, generated non-core asset sale proceeds of $70 million and is current on all operating payables, generally with normal payment terms.

HealthSouth also said it should generate EBITDA of $650 million for the year to June 30, 2004 and the company's divisions are "solid and profitable," according to a Securities and Exchange Commission filing documenting the presentation.

HealthSouth said as of July 1 its total bond and bank debt was $3.3 billion and its total net debt was $2.9 billion. HealthSouth, which failed to repay a bond that matured in April after its credit line was frozen due to allegations of accounting fraud, is continuing its moratorium on repaying interest and principal on the debt.

HealthSouth also said it retained Credit Suisse First Boston to help with its restructuring.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.