Company Declares $0.15 Per Share Quarterly
Dividend
U.S. Physical Therapy, Inc. (NYSE: USPH), a national operator of
outpatient physical therapy clinics, today reported results for the
quarter and nine months ended September 30, 2015.
U.S. Physical Therapy’s net income attributable to common
shareholders prior to revaluation of redeemable non-controlling
interests, net of tax (“operating results”) increased 11.5% to $5.8
million for the third quarter of 2015 as compared to $5.2 million
in the third quarter of 2014. Diluted earnings per share from
operating results were $0.47 in the recent quarter as compared to
$0.43 in the comparable 2014 period.
U.S. Physical Therapy’s operating results for the first nine
months of 2015 were $16.3 million, an increase of 2.6% as compared
to $15.9 million in the first nine months of 2014. Diluted earnings
per share from operating results were $1.32 in the first nine
months of 2015 and $1.30 in the comparable 2014 period.
Third Quarter 2015 Compared to Third
Quarter 2014
- Net revenues increased 8.1% from $77.7
million in the third quarter of 2014 to $84.0 million in the third
quarter of 2015, due to an increase in total patient visits of 8.7%
from 719,300 to 782,100 offset by a decrease in the average net
revenue per visit to $105.04 for the 2015 third quarter from
$105.92 for the 2014 third quarter. Net revenues for new clinics
opened or acquired in the past 12 months was $5.4 million.
- Total clinic operating costs were $65.2
million, or 77.5% of net revenues, in the third quarter of 2015, as
compared to $59.0 million, or 75.9% of net revenues, in the 2014
period. The increase was primarily attributable to $5.1 million in
operating costs of new clinics opened or acquired in the past 12
months. Total clinic salaries and related costs, including those
from new clinics, were 55.4% of net revenues in the recent quarter
versus 53.8% in the 2014 period. Included in salaries and related
costs in the 2015 quarter is $230,000 of compensation and severance
costs for employee terminations as part of the Company’s previously
announced cost-cutting plan. Rent, clinic supplies, contract labor
and other costs as a percentage of net revenues were 20.7% for both
periods. The provision for doubtful accounts as a percentage of net
revenues was 1.3% in 2015 period and 1.4% in the 2014 period.
- The gross margin for the third quarter
of 2015 was $18.9 million or 22.5%, as compared to $18.8 million or
24.1% in the 2014 period.
- Corporate office costs were $6.9
million in the third quarter of 2015 as compared to $7.5 million in
the 2014 third quarter. Corporate office costs were 8.2% of net
revenues in the 2015 third quarter compared to 9.6% of net revenues
in the 2014 period.
- Operating income for the recent quarter
was $11.9 million compared to $11.3 million in the 2014 third
quarter.
- Interest expense was $0.3 million in
the third quarter of 2015 and $0.2 million in the third quarter of
2014.
- The provision for income taxes for the
2015 period was $3.7 million and for the 2014 period $3.6 million.
The provision for income taxes as a percentage of income before
taxes less net income attributable to non-controlling interest was
38.6% in the 2015 third quarter and 41.0% in the 2014 third
quarter. The 2015 third quarter includes an adjustment of the 2015
expected annual tax rate to 39.5% from 40.0% based on an analysis
of the 2015 results inclusive of non-deductible tax items.
- Net income attributable to
non-controlling interests was $2.2 million in both periods.
- The operating results for the three
months ended September 30, 2015 was $5.8 million and $5.2 million
in the 2014 period. Diluted earnings per share from operating
results were $0.47 in the 2015 period and $0.43 in the 2014
period.
- Same store visits increased 3.3% for de
novo and acquired clinics open for one year or more and same store
revenue increased 2.5% as the average net rate per visit decreased
by $0.84.
Nine Months 2015 Compared to Nine
Months 2014
- Net revenues increased 8.4% from $225.7
million in the first nine months of 2014 to $244.6 million in the
first nine month of 2015, due to an increase in total patient
visits of 9.1% from 2,081,900 to 2,271,900 offset by a decrease in
the average net revenue per visit to $105.38 for the current period
of 2015 from $106.18 for the 2014 period. Net revenues from new
clinics opened or acquired in the past 12 months was $10.3
million.
- Total clinic operating costs were
$187.7 million, or 76.8% of net revenues, in the first nine months
of 2015, as compared to $168.5 million, or 74.6% of net revenues,
in the 2014 period. The increase includes $9.6 million in operating
costs of new clinics opened or acquired in the past 12 months.
Total clinic salaries and related costs, including those from new
clinics, were 54.8% of net revenues in the first nine months versus
53.1% in the 2014 period. Included in salaries and related costs in
the 2015 period is $230,000 of compensation and severance costs for
employee terminations as part of the Company’s previously announced
cost-cutting plan. Rent, clinic supplies, contract labor and other
costs as a percentage of net revenues were 20.6% in the recent
period versus 20.2% in the 2014 period. The provision for doubtful
accounts as a percentage of net revenues was 1.3% in the 2015
period and 1.4% in the 2014 period.
- The gross margin for the first nine
months of 2015 was $56.9 million or 23.2%, as compared to $57.2
million or 25.4% in the 2014 period.
- Corporate office costs were $22.2
million in the first nine months of 2015 and in the 2014 period.
Corporate office costs were 9.1% of net revenues in the 2015 first
nine months as compared to 9.8% of net revenues in the 2014
period.
- Operating income for the first nine
months of 2015 was $34.7 million compared to $35.0 million in the
2014 first nine months.
- Interest expense was $0.8 million in
both periods.
- The provision for income taxes for the
2015 period was $10.6 million and for the 2014 period was $11.0
million. The provision for income taxes as a percentage of income
before taxes less net income attributable to non-controlling
interest was 39.5% in the 2015 first nine months and 41.0% in the
2014 first nine months.
- Net income attributable to
non-controlling interests was $7.0 million in the nine months of
2015 as compared to $7.3 million in the year earlier period.
- The operating results for the nine
months ended September 30, 2015 was $16.3 million compared to $15.9
million in the nine months ended September 30, 2014. Diluted
earnings per share from operating results were $1.32 in the 2015
and $1.30 in the 2014 period.
- Same store visits increased 4.0% for de
novo and acquired clinics open for one year or more and same store
revenue increased 3.5%. The average net rate per visit decreased by
$0.54.
Chris Reading, Chief Executive Officer, said, “The Company’s
total patient volume remains solid. In the third quarter we worked
to better align staffing levels at some of our partnerships with
their clinics’ average daily patient volumes. Our average net rate
improved in the third quarter from the second quarter. Our newly
acquired partnerships are doing well. Our organic de novo clinic
openings have been strong these past few months and we are on track
for another good development year overall.”
U.S. Physical Therapy Declares
Quarterly Dividend
The fourth quarterly dividend of 2015 for $0.15 per share will
be paid on December 4 to shareholders of record as of November
17.
Third Quarter 2015 Conference
Call
U.S. Physical Therapy's Management will host a conference call
at 10:30 a.m. Eastern Time, 9:30 a.m. Central Time, on Thursday,
November 5, 2015 to discuss the Company’s Quarter Ended September
30, 2015 results. Interested parties may participate in the call by
dialing 1-888-335-5539 or 973-582-2857 and entering reservation
number 54788737 approximately 10 minutes before the call is
scheduled to begin. To listen to the live call via web-cast, go to
the Company's website at www.usph.com at least 15 minutes early to
register, download and install any necessary audio software. The
conference call will be archived and can be accessed until January
5, 2016.
Forward-Looking
Statements
This press release contains statements that are considered to be
forward-looking within the meaning under Section 21E of the
Securities Exchange Act of 1934, as amended. These statements
contain forward-looking information relating to the financial
condition, results of operations, plans, objectives, future
performance and business of our Company. These statements (often
using words such as “believes”, “expects”, “intends”, “plans”,
“appear”, “should” and similar words) involve risks and
uncertainties that could cause actual results to differ materially
from those we expect. Included among such statements may be those
relating to new clinics, availability of personnel and the
reimbursement environment. The forward-looking statements are based
on our current views and assumptions and actual results could
differ materially from those anticipated in such forward-looking
statements as a result of certain risks, uncertainties, and
factors, which include, but are not limited to:
- changes as the result of government
enacted national healthcare reform;
- changes in Medicare guidelines and
reimbursement or failure of our clinics to maintain their Medicare
certification status;
- business and regulatory conditions
including federal and state regulations;
- governmental and other third party
payor investigations and audits;
- compliance with federal and state laws
and regulations relating to the privacy of individually
identifiable patient information, and associated fines and
penalties for failure to comply;
- changes in reimbursement rates or
payment methods from third party payors including government
agencies and deductibles and co-pays owed by patients;
- transition to ICD-10 coding
system;
- revenue and earnings expectations;
- general economic conditions;
- availability and cost of qualified
physical and occupational therapists;
- personnel productivity;
- competitive, economic or reimbursement
conditions in our markets which may require us to reorganize or
close certain operations and thereby incur losses and/or closure
costs including the possible write-down or write-off of goodwill
and other intangible assets;
- acquisitions, purchase of
non-controlling interests (minority interests) and the successful
integration of the operations of the acquired businesses;
- maintaining adequate internal
controls;
- availability, terms, and use of
capital; and
- weather and other seasonal
factors.
Many factors are beyond our control. Given these uncertainties,
you should not place undue reliance on our forward-looking
statements. Please see our periodic reports filed with the
Securities and Exchange Commission for more information on these
factors. Our forward-looking statements represent our estimates and
assumptions only as of the date of this press release. Except as
required by law, we are under no obligation to update any
forward-looking statement, regardless of the reason the statement
is no longer applicable.
About U.S. Physical Therapy,
Inc.
Founded in 1990, U.S. Physical Therapy, Inc. operates 506
outpatient physical and occupational therapy clinics in 42 states.
The Company's clinics provide preventative and post-operative care
for a variety of orthopedic-related disorders and sports-related
injuries, treatment for neurologically-related injuries and
rehabilitation of injured workers. In addition to owning and
operating clinics, the Company manages 20 physical therapy
facilities for third parties, including hospitals and physician
groups.
More information about U.S. Physical Therapy, Inc. is available
at www.usph.com. The information included on that website is not
incorporated into this press release.
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME (IN THOUSANDS,
EXCEPT PER SHARE DATA) (unaudited)
Three Months Ended
September 30, Nine Months Ended September 30,
2015 2014 2015 2014 Net patient
revenues $ 82,154 $ 76,184 $ 239,412 $ 221,051 Other revenues
1,895 1,532 5,166
4,633 Net revenues 84,049 77,716 244,578 225,684 Clinic
operating costs: Salaries and related costs 46,594 41,802 134,044
119,853 Rent, clinic supplies, contract labor and other 17,428
16,117 50,434 45,538 Provision for doubtful accounts 1,067 1,090
3,119 3,094 Closure costs 88 (39 ) 125
(28 ) Total clinic operating costs 65,177
58,970 187,722 168,457
Gross margin 18,872 18,746 56,856 57,227 Corporate office
costs 6,923 7,468 22,173
22,214 Operating income 11,949 11,278 34,683 35,013
Interest and other income, net 24 2 48 3 Interest expense
(255 ) (237 ) (765 ) (822 ) Income before
taxes 11,718 11,043 33,966 34,194 Provision for income taxes
3,654 3,625 10,634 11,033
Net income including non-controlling interests 8,064 7,418
23,332 23,161 Less: net income attributable to non-controlling
interests (2,246 ) (2,202 ) (7,044 )
(7,285 ) Net income attributable to common shareholders $ 5,818
$ 5,216 $ 16,288 $ 15,876 Basic
earnings per share attributable to common shareholders: From
operations prior to revaluation of redeemable non-controlling
interests, net of tax $ 0.47 $ 0.43 $ 1.32 $ 1.30 Charges to
additional paid-in-capital - revaluation of redeemable
non-controlling interests, net of tax - -
(0.03 ) (0.09 ) Basic $ 0.47 $ 0.43
$ 1.29 $ 1.21 Diluted earnings per share
attributable to common shareholders: From operations prior to
revaluation of redeemable non-controlling interests, net of tax $
0.47 $ 0.43 $ 1.32 $ 1.30 Charges to additional paid-in-capital -
revaluation of redeemable non-controlling interests, net of tax
- - (0.03 ) (0.09 )
Diluted $ 0.47 $ 0.43 $ 1.29 $ 1.21
Shares used in computation: Basic 12,421
12,244 12,382 12,201 Diluted
12,421 12,247 12,382
12,208 Dividends declared per common share $
0.15 $ 0.12 $ 0.45 $ 0.36
U.S. PHYSICAL THERAPY, INC. AND
SUBSIDIARIES
CONSOLIDATED EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE
DATA)
(unaudited)
Three Months Ended Nine Months Ended September 30,
2015 September 30, 2014 September 30, 2015
September 30, 2014 Earnings attributable to common
shareholders: From operations prior to revaluation of redeemable
non-controlling interests, net of tax $ 5,818 $ 5,216 $ 16,288 $
15,876 Charges to additional paid-in-capital - revaluation of
redeemable non-controlling interests, net of tax - -
(376 ) (1,086 ) $ 5,818 $ 5,216 $ 15,912 $
14,790 Basic earnings per share attributable to common
shareholders: From operations prior to revaluation of redeemable
non-controlling interests, net of tax $ 0.47 $ 0.43 $ 1.32 $ 1.30
Charges to additional paid-in-capital - revaluation of redeemable
non-controlling interests, net of tax - -
(0.03 ) (0.09 ) $ 0.47 $ 0.43 $ 1.29 $ 1.21
Diluted earnings per share attributable to common shareholders:
From operations prior to revaluation of redeemable non-controlling
interests, net of tax $ 0.47 $ 0.43 $ 1.32 $ 1.30 Charges to
additional paid-in-capital - revaluation of redeemable
non-controlling interests, net of tax - -
(0.03 ) (0.09 ) $ 0.47 $ 0.43 $ 1.29 $ 1.21
Shares used in computation: Basic earnings per share -
weighted-average shares 12,421 12,244 12,382 12,201 Effect of
dilutive securities - stock options - 3 -
7 Denominator for diluted earnings per share -
adjusted weighted-average shares 12,421 12,247
12,382 12,208
U.S. PHYSICAL
THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (IN THOUSANDS, EXCEPT SHARE DATA)
September 30, 2015 December 31,
2014 ASSETS (unaudited) Current assets: Cash and cash
equivalents $ 20,558 $ 14,271 Patient accounts receivable, less
allowance for doubtful accounts of $1,556 and $1,669, respectively
35,106 32,891 Accounts receivable - other, less allowance for
doubtful accounts of $198 and $198, respectively 1,939 1,503 Other
current assets 6,058 6,186 Total
current assets 63,661 54,851 Fixed assets: Furniture and equipment
44,157 42,003 Leasehold improvements 25,006
22,806 69,163 64,809 Less accumulated depreciation and
amortization 52,501 49,045 16,662
15,764 Goodwill 170,849 147,914 Other intangible assets, net 23,798
24,907 Other assets 1,175 1,115 $
276,145 $ 244,551 LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable - trade
$ 1,662 $ 1,782 Accrued expenses 18,287 22,839 Current portion of
notes payable 1,412 883 Total current
liabilities 21,361 25,504 Notes payable 1,679 234 Revolving line of
credit 46,000 34,500 Deferred rent 1,192 991 Other long-term
liabilities 10,769 8,732 Total
liabilities 81,001 69,961 Commitments and contingencies Redeemable
non-controlling interests 9,024 7,376 Shareholders' equity: U. S.
Physical Therapy, Inc. shareholders' equity: Preferred stock, $.01
par value, 500,000 shares authorized, no shares issued and
outstanding
Common stock, $.01 par value, 20,000,000
shares authorized, 14,635,874 and 14,487,346 shares issued,
respectively
146 145 Additional paid-in capital 45,536 43,577 Retained earnings
144,888 134,186 Treasury stock at cost, 2,214,737 shares
(31,628 ) (31,628 ) Total U. S. Physical Therapy, Inc.
shareholders' equity 158,942 146,280 Non-controlling interests
27,178 20,934 Total equity
186,120 167,214 $ 276,145 $ 244,551
U.S. PHYSICAL THERAPY, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS, EXCEPT PER SHARE DATA) (unaudited)
Nine Months Ended September 30,
2015 2014 OPERATING ACTIVITIES
Net income including non-controlling interests $ 23,332 $ 23,161
Adjustments to reconcile net income including non-controlling
interests to net cash provided by operating activities:
Depreciation and amortization 5,656 4,682 Provision for doubtful
accounts 3,119 3,094 Equity-based awards compensation expense 3,368
2,456 Gain on sale or abandonment of assets, net 3 20 Excess tax
benefit from shared-based compensation (816 ) (526 ) Deferred
income tax 3,181 3,888 Write-off of goodwill - closed clinic 180 -
Changes in operating assets and liabilities: Increase in patient
accounts receivable (4,148 ) (4,952 ) Increase in accounts
receivable - other (145 ) (62 ) Increase in other assets (1,485 )
(1,803 ) Decrease in accounts payable and accrued expenses (3,766 )
(1,739 )
Increase in other long term
liabilities
380 607 Net cash provided by operating
activities 28,859 28,826
INVESTING ACTIVITIES Purchase of
fixed assets (4,690 ) (3,912 ) Purchase of businesses, net of cash
acquired (14,434 ) (12,240 ) Acquisitions of non-controlling
interests (2,802 ) (4,998 ) Proceeds on sale of business and fixed
assets, net 71 43 Net cash used in
investing activities (21,855 ) (21,107 )
FINANCING
ACTIVITIES Distributions to non-controlling interests
(including redeemable non-controlling interests) (6,836 ) (7,067 )
Cash dividends to shareholders
(5,586 ) (4,399 ) Proceeds from revolving line of credit 75,000
112,300 Payments on revolving line of credit (63,500 ) (105,800 )
Payment of notes payable (616 ) (575 ) Tax benefit from share-based
compensation 816 526 Other 5 222 Net
cash used in financing activities (717 ) (4,793 ) Net (decrease)
increase in cash and cash equivalents 6,287 2,926 Cash and cash
equivalents - beginning of period 14,271
12,898 Cash - end of period $ 20,558 $ 15,824
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid
during the period for: Income taxes $ 5,659 $ 7,920 Interest $ 616
$ 857 Non-cash investing and financing transactions during the
period: Purchase of non-controlling interest $ 1,240 $ - Purchase
of business - seller financing portion $ 1,350 $ 400 Revaluation of
redeemable non-controlling interests $ 627 $ 1,841
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECAP OF
CLINIC COUNT Number of
Date Clinics March 31, 2014 472 June 30, 2014
486 September 30, 2014 489 December 31, 2014 489 March 31,
2015 494 June 30, 2015 501 September 30, 2015 506
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151105005188/en/
U.S. Physical Therapy, Inc.Larry McAfee, 713-297-7000Chief
Financial OfficerorChris Reading, 713-297-7000Chief Executive
OfficerorWestwicke PartnersBob East, 443-213-0502
US Physical Therapy (NYSE:USPH)
Historical Stock Chart
From Jun 2024 to Jul 2024
US Physical Therapy (NYSE:USPH)
Historical Stock Chart
From Jul 2023 to Jul 2024