Rehabilitation giant HealthSouth Corp., Birmingham, Ala., said its earnings were just below budget projections despite higher-than-expected restructuring charges. During a business update conference call with investors, the company reported earnings of $643.6 million on revenue of $3.8 billion for 2004 compared with projected earnings of $650 million on forecasted revenue of $3.95 billion. HealthSouth, which is in the process of auditing past financial records because of accounting fraud at the company, said it hopes to have restated figures for 2000 to 2003 completed when it releases 2005 first-quarter financials in June. The company said charges for restating its books, complying with the Sarbanes-Oxley Act and paying financial crisis-management advisers were $194.8 million, but the company had budgeted for $93 million. HealthSouth has not updated the number of facilities it operates, but in December 2004 the company said it owned or operated 1,380 post-acute facilities. -- by Joseph Mantone
HealthSouth earnings nearly meet projections
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