Company Declares $0.20 Per Share Quarterly
Dividend
U.S. Physical Therapy, Inc. ("USPH" or the “Company”) (NYSE:
USPH), a national operator of outpatient physical therapy clinics,
today reported results for the second quarter and six months ended
June 30, 2017.
For the quarter ended June 30, 2017, USPH’s net income
attributable to common shareholders prior to interest expense –
mandatorily redeemable non-controlling interests – change in
redemption value and costs related to restatement of financials,
both net of tax (“operating results”), a non-generally accepted
accounting principles (“non-GAAP”) measure, was $7.4 million as
compared to $7.2 million in the comparable 2016 period. Diluted
earnings per share from operating results was $0.59 in the 2017
period, a record quarter, as compared to $0.57 in the 2016 period.
For the six months ended June 30, 2017, operating results was $14.0
million as compared to $13.0 million in the comparable 2016 period.
Diluted earnings per share from operating results was $1.11 in the
2017 six month period as compared to $1.04 in the 2016 six month
period.
For the quarter ended June 30, 2017, USPH’s net income
attributable to its shareholders, in accordance with generally
accepted accounting principles (“GAAP”), was $4.9 million, or $0.39
per diluted share, as compared to $6.0 million, or $0.48 per
diluted share, for the 2016 period. For the six months ended June
30, 2017, USPH’s net income attributable to its shareholders, in
accordance with GAAP, was $9.8 million, or $0.78 per diluted share,
as compared to $10.5 million, or $0.84 per diluted share, for the
2016 six month period. See schedule on page 11 for a reconciliation
of net income attributable to USPH shareholders to operating
results.
Second Quarter 2017 Compared to Second
Quarter 2016
- Net revenues increased $13.9 million or
15.3% from $90.4 million in the second quarter of 2016 to $104.3
million in the second quarter of 2017, primarily due to a 10.0%
increase in net patient revenues from the physical therapy
operations and a full quarter of revenues from the workforce
performance solutions business acquired in March 2017.
- Net patient revenues from physical
therapy operations increased approximately $9.3 million to $97.7
million in the 2017 period from $88.4 million in the 2016 period
due to an increase in total patient visits of 10.0% from 840,000 to
923,700 plus an increase in average net patient revenue per visit
to $105.73 from $105.27. Of the $9.3 million increase, $7.7 million
related to clinics opened or acquired in the past 12 months. For
the 2017 and the 2016 periods, revenues from management contracts
was $1.6 million for each period. The revenues from the recently
acquired workforce performance solutions business was $4.4 million
for the second quarter 2017. Other revenue was $0.6 million for the
2017 period and $0.4 million for the 2016 period.
- Total clinic operating costs were $79.7
million, or 76.5% of net revenues, in the second quarter of 2017 as
compared to $67.4 million, or 74.5% of net revenues, in the 2016
period. The increase was attributable to $6.7 million in operating
costs related to new clinics opened or acquired in the past 12
months, $3.7 million related to the addition of the workforce
performance solutions business and $1.9 million related to clinics
opened or acquired prior to July 1, 2016. Total clinic salaries and
related costs, including those from new clinics, were 56.4% of net
revenues in the recent quarter 2017 versus 54.0% for the 2016
comparable period. Rent, clinic supplies, contract labor and other
costs as a percentage of net revenues were 19.2% for recent quarter
versus 19.4% for the 2016 period. The provision for doubtful
accounts as a percentage of net revenues was 0.9% for the second
quarter of 2017 as compared to 1.1% in the 2016 period.
- The gross margin for the second quarter
of 2017 was $24.5 million, or 23.5% of revenue, as compared to
$23.0 million, or 25.5% of revenue, for the 2016 quarter. The gross
margin for the Company’s physical therapy clinics was 24.2% in the
recent quarter as compared to 25.6% a year earlier. The gross
margin on management contracts was 7.4% in the second quarter of
2017 as compared to 22.5% in the comparable period of 2016. The
gross margin for the recently acquired workforce performance
solutions business was 15.0%.
- Corporate office costs were $8.9
million in the second quarter of 2017 compared to $8.0 million in
the 2016 second quarter. Corporate office costs were 8.5% of net
revenues for the 2017 quarter compared to 8.9% of net revenues for
the 2016 period.
- Operating income for the recent quarter
increased 4.3% to $15.7 million as compared to $15.0 million in the
second quarter 2016.
- Interest expense – mandatorily
redeemable non-controlling interest – change in redemption value
increased to $3.9 million in the second quarter 2017 from $1.9
million in the 2016 second quarter. The change in redemption value
for acquired partnerships is based on the redemption amount (which
is derived from a formula based on a specified multiple times the
underlying business’ trailing twelve months of earnings before
interest, taxes, depreciation, amortization and our internal
management fee) at the end of the reporting period compared to the
end of the previous period. This change is directly related to an
increase in the profitability and underlying value of the Company’s
partnerships.
- Interest expense – mandatorily
redeemable non-controlling interest – earnings allocable, which
represent the portion of earnings allocable to the holders of
mandatorily redeemable non-controlling interest, increased to $1.8
million in the 2017 second quarter from $1.3 million in the 2016
period.
- Interest expense – debt and other was
$0.5 million in the second quarter 2017 and $0.3 million in the
2016 period.
- The provision for income taxes for the
2017 second quarter was $3.1 million and for the 2016 second
quarter was $3.8 million. The provision for income taxes as a
percentage of income before taxes less net income attributable to
non-controlling interest was 38.4% in the 2017 second quarter and
38.7% in the 2016 second quarter. Included in both the second
quarter of 2017 and the second quarter of 2016 was an excess tax
benefit of $0.1 million related to accounting for stock
compensation.
- Net income attributable to
non-controlling interests was $1.4 million in the 2017 second
quarter as compared to $1.7 million in the 2016 second
quarter.
- Operating results, a non-GAAP measure,
attributable to common shareholders for the three months ended June
30, 2017 rose 3.4% to $7.4 million as compared to $7.2 million for
the 2016 period. Diluted earnings per share from operating results
were $0.59 for the 2017 period and $0.57 for the 2016 period. For
the quarter ended June 30, 2017, USPH’s net income attributable to
its shareholders, in accordance with GAAP, was $4.9 million, or
$0.39 per diluted share, as compared to $6.0 million, or $0.48 per
diluted share, for the 2016 period. See schedule on page 11 for a
reconciliation of net income attributable to USPH shareholders to
operating results.
- Same store revenues increased 3.5%.
Visits increased 2.6% for de novo and acquired clinics open for one
year or more and the same store net rate increased by approximately
1%.
First Six Months 2017 Compared to First
Six Months 2016
- Net revenues increased 13.8% from
$177.3 million in the first six months of 2016 to $201.8 million in
the first six months of 2017, primarily due to an increase in total
patient visits of 10.1% from 1,648,300 to 1,815,300, higher
revenues from management contracts due to an increase in the number
of facilities managed by the Company and revenues from the
workforce performance solutions business acquired in March
2017.
- Net patient revenues from physical
therapy operations increased approximately $17.8 million to $191.3
million in the 2017 period from $173.5 million in the 2016 period
due to an increase in total patient visits of 10.1% from 1,648,300
to 1,815,254 and an increase in average net patient revenue per
visit to $105.39 from $105.25. Of the $17.8 million increase, $14.5
million related to clinics opened or acquired in the past 12
months. For the first six months of 2017, revenues from management
contracts were $3.5 million as compared to $2.9 million for the
2016 first six months. The revenues from the recently acquired
workforce performance solutions business were $5.9 million for the
four months of operations in 2017. Other revenue was $1.1 million
for the first six months of 2017 and $0.9 million for the first six
months of 2016.
- Total clinic operating costs were
$156.5 million, or 77.6% of net revenues, in the first six months
of 2017 as compared to $133.8 million, or 75.4% of net revenues, in
the 2016 first six months. The increase was primarily attributable
to $12.8 million in operating costs related to new clinics opened
or acquired in the past 12 months, an additional $2.7 million
related to a full six months of activity in 2017 for clinics opened
or acquired in the first six months of 2016 and $5.0 million
related to the addition of the workforce performance solutions
business. Total clinic salaries and related costs, including those
from new clinics, were 56.8% of net revenues in the first six
months of 2017 versus 54.5% for the 2016 first six months.
Rent, clinic supplies, contract labor and other costs as a
percentage of net revenues were 19.9% for the first six months of
2017 versus 19.8% for the 2016 comparable period. The provision for
doubtful accounts as a percentage of net revenues was 0.9% for the
first six months of 2017 as compared to 1.2% in the 2016 first six
months.
- The gross margin for the first six
months of 2017 was $45.3 million, or 22.4% of revenue, as compared
to $43.6 million, or 24.6% of revenue, for the 2016 first six
months. The gross margin for the Company’s physical therapy clinics
was 22.9% in the first six months of 2017 as compared to 24.6% a
year earlier. The gross margin on management contracts was 11.3% in
the first half of 2017 as compared to 21.2% in the comparable
period of 2016. The gross margin for the recently acquired
workforce performance solutions business was 14.8%.
- Corporate office costs were $17.4
million in the first six months of 2017 compared to $17.0 million
in the 2016 first six months. Corporate office costs were 8.6% of
net revenues for the 2017 first six months compared to 9.6% of net
revenues for the 2016 first six months.
- Operating income for the 2017 first six
months rose 5.1% to $27.9 million as compared to $26.5 million in
the 2016 first six months.
- Interest expense – mandatorily
redeemable non-controlling interest – change in redemption value
increased to $6.6 million in the first six months of 2017 from $4.1
million in the 2016 first six months. The change in redemption
value for acquired partnerships is based on the redemption amount
(which is derived from a formula based on a specified multiple
times the underlying business’ trailing twelve months of earnings
before interest, taxes, depreciation, amortization and our internal
management fee) at the end of the reporting period compared to the
end of the previous period. This change is directly related to an
increase in the profitability and underlying value of the Company’s
partnerships.
- Interest expense – mandatorily
redeemable non-controlling interest – earnings allocable, which
represent the portion of earnings allocable to the holders of
mandatorily redeemable non-controlling interest, increased to $3.1
million in the 2017 first six months from $2.2 million in the 2016
first six months.
- Interest expense – debt and other was
$0.9 million in the first six months of 2017 and $0.6 million in
the 2016 first six months.
- The provision for income taxes for the
2017 first six months was $4.9 million and for the 2016 first six
months was $6.0 million. The provision for income taxes as a
percentage of income before taxes less net income attributable to
non-controlling interest was 33.4% in the 2017 first six months and
36.3% in the 2016 comparable period. Included in the first six
months of 2017 was an excess tax benefit of $0.9 million related to
accounting for stock compensation as compared to $0.6 million in
the first six months of 2016.
- Net income attributable to
non-controlling interests was $2.7 million in the 2017 first six
months as compared to $3.1 million in the year earlier period.
- Operating results, a non-GAAP measure,
attributable to common shareholders for the first six months of
2017 rose 7.3% to $14.0 million as compared to $13.0 million for
the 2016 period. Diluted earnings per share from operating results
were $1.11 for the 2017 first six months and $1.04 for the 2016
first six months. For the first six months ended June 30, 2017,
USPH’s net income attributable to its shareholders, in accordance
with GAAP, was $9.8 million, or $0.78 per diluted share, as
compared to $10.5 million, or $0.84 per diluted share, for the
earlier period. See schedule on page 11 for a reconciliation of net
income attributable to USPH shareholders to operating results.
- Same store revenues for de novo and
acquired clinics open for one year or more increased 2.8%. Same
store visits increased 2.4% and the net rate increased
slightly.
Other Financial Measures
For the second quarter of 2017 the Company's Adjusted EBITDA
grew by 3.7% to $15.9 million from $15.4 million in the 2016
period. For the first six months of 2017, the Company's Adjusted
EBITDA grew by 5.2% to $29.3 million from $27.8 million in the 2016
period. See definition and explanation of Adjusted EBITDA on page
11 and schedule on page 12.
Management’s Comments
Chris Reading, Chief Executive Officer, said, “The second
quarter of 2017 was a record quarter for operating results.
Highlights for the period include strengthening visit volume
coupled with excellent results from our recently acquired workforce
performance solutions business along with our recent physical
therapy acquisitions. Our net rate per visit rose modestly and
other elements of the business remain strong. Development in
general, both internal and through acquisition, has been very good.
The results of our facility-level cost control initiative, which
started in the second quarter, should be demonstrated as we go
forward. Cost control is one of our principal areas of focus
right now as we recognize that this is an area where we have
continued work to do.”
U.S. Physical Therapy Declares
Quarterly Dividend
The third quarterly dividend of 2017 for $0.20 per share will be
paid on September 8, 2017 to shareholders of record as of August
21, 2017.
Second Quarter 2017 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,
August 3, 2017 to discuss the Company's Quarter and Six Months
Ended June 30, 2017 results. Interested parties may participate in
the call by dialing 1-888-335-5539 or 973-582-2857 and entering
reservation number 59439916 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 November 3, 2017.
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:
- cost, risks and uncertainties
associated with the Company’s recent restatement of its prior
financial statements due to the correction of its accounting
methodology for redeemable non-controlling partnership interests,
and including any pending and future claims or proceedings relating
to such matters;
- changes as the result of government
enacted national healthcare reform;
- changes in Medicare rules and
guidelines and reimbursement or failure of our clinics to maintain
their Medicare certification status;
- revenue we receive from Medicare and
Medicaid being subject to potential retroactive reduction;
- business and regulatory conditions
including federal and state regulations;
- governmental and other third party
payor inspections, reviews, 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;
- legal actions; which could subject us
to increased operating costs and uninsured liabilities;
- changes in reimbursement rates or
payment methods from third party payors including government
agencies and deductibles and co-pays owed by patients;
- revenue and earnings expectations;
- general economic conditions;
- availability and cost of qualified
physical therapists;
- personnel productivity and retaining
key personnel;
- competitive, economic or reimbursement
conditions in our markets which may require us to reorganize or
close certain clinics 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;
- maintaining necessary insurance
coverage;
- our ability to design and maintain
effective internal control over financial reporting and remediate
the material weakness in internal control over financial reporting
related to our accounting for redeemable non-controlling
partnership interests;
- 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 567
outpatient physical therapy clinics in 41 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 27 physical therapy facilities for unaffiliated
third parties, including hospitals and physician groups. The
Company also provides onsite services for clients’ employees
including injury prevention, rehabilitation, ergonomic assessments
and performance optimization.
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)
Three Months Ended Six Months Ended June 30, 2017 June 30, 2016
June 30, 2017 June 30, 2016 (as restated) (as restated) Net patient
revenues $ 97,657 $ 88,433 $ 191,311 $ 173,482 Other revenues
6,594 1,997 10,505
3,856 Net revenues 104,251 90,430 201,816 177,338 Clinic
operating costs: Salaries and related costs 58,779 48,837 114,606
96,641 Rent, clinic supplies, contract labor and other 20,033
17,546 40,120 35,053 Provision for doubtful accounts 888 956 1,786
2,045 Closure costs 17 32 23
45 Total clinic operating costs 79,717
67,371 156,535 133,784
Gross margin 24,534 23,059 45,281 43,554
Corporate office costs 8,856 8,026
17,403 17,030 Operating income 15,678
15,033 27,878 26,524 Interest and other income, net 23 21 47
41 Interest expense: Mandatorily redeemable non-controlling
interests - change in redemption value (3,923 ) (1,931 ) (6,592 )
(4,122 ) Mandatorily redeemable non-controlling interests -
earnings allocable (1,787 ) (1,330 ) (3,081 ) (2,217 ) Debt and
other (516 ) (320 ) (931 ) (628 ) Total
interest expense (6,226 ) (3,581 ) (10,604 ) (6,967 ) Income
before taxes 9,475 11,473 17,321 19,598 Provision for income
taxes 3,085 3,802 4,897
5,974 Net income 6,390 7,671 12,424 13,624
Less: net income attributable to non-controlling interests
(1,449 ) (1,659 ) (2,667 ) (3,124 )
Net income attributable to USPH shareholders $ 4,941
$ 6,012 $ 9,757 $ 10,500 Basic and
diluted earnings per share attributable to USPH shareholders $ 0.39
$ 0.48 $ 0.78 $ 0.84 Shares used
in computation - basic 12,579 12,511
12,553 12,480 Shares used in
computation - diluted 12,579 12,511
12,553 12,480 Dividends declared
per common share $ 0.20 $ 0.17 $ 0.40 $ 0.34
U.S. PHYSICAL THERAPY, INC.
AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA) June 30, 2017
December 31, 2016 ASSETS (unaudited) Current assets: Cash and cash
equivalents $ 20,242 $ 20,047 Patient accounts receivable, less
allowance for doubtful accounts of $1,859 and $1,792, respectively
46,770 38,840 Accounts receivable - other 5,662 2,649 Other current
assets 6,932 4,428 Total current assets
79,606 65,964 Fixed assets: Furniture and equipment 50,644 48,426
Leasehold improvements 27,729 26,765
Fixed assets, gross 78,373 75,191 Less accumulated depreciation and
amortization 58,200 56,018 Fixed
assets, net 20,173 19,173 Goodwill 267,957 226,806 Other
identifiable intangible assets, net 48,321 38,060 Other assets
1,268 1,228 Total assets $ 417,325
$ 351,231 LIABILITIES, REDEEMABLE
NON-CONTROLLING INTERESTS, USPH SHAREHOLDERS’ EQUITY AND
NON-CONTROLLING INTERESTS Current liabilities: Accounts payable -
trade $ 1,613 $ 1,634 Accrued expenses 31,235 21,756 Current
portion of notes payable 2,345 1,227
Total current liabilities 35,193 24,617 Notes payable, net of
current portion 4,351 4,596 Revolving line of credit 69,000 46,000
Mandatorily redeemable non-controlling interests 83,643 69,190
Deferred taxes 15,443 15,736 Deferred rent 1,789 1,575 Other
long-term liabilities - 829 Total
liabilities 209,419 162,543 Redeemable non-controlling
interests 11,940 - Commitments and contingencies U.S.
Physical Therapy, Inc. ("USPH") 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, 14,792,744 and 14,732,699 shares issued, respectively
147 147 Additional paid-in capital 71,197 68,687 Retained earnings
155,068 150,342 Treasury stock at cost, 2,214,737 shares
(31,628 ) (31,628 ) Total USPH shareholders’ equity 194,784
187,548 Non-controlling interests 1,182 1,140
Total USPH shareholders' equity and non-controlling
interests 195,966 188,688 Total
liabilities, redeemable non-controlling interests, USPH
shareholders' equity and non-controlling interests $ 417,325
$ 351,231
U.S. PHYSICAL
THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF CASH FLOWS (IN THOUSANDS, EXCEPT PER SHARE
DATA) Six Months Ended June 30,
2017 June 30, 2016 OPERATING ACTIVITIES (as
restated) Net income including non-controlling interests $ 12,424 $
13,624 Adjustments to reconcile net income including
non-controlling interests to net cash provided by operating
activities: Depreciation and amortization 4,789 4,158 Provision for
doubtful accounts 1,786 2,045 Loss on sale of fixed assets 65 -
Excess tax benefit from equity-based awards 2,345 2,484 Deferred
income tax (985 ) 2,503 Changes in operating assets and
liabilities: Increase in patient accounts receivable (4,006 )
(2,449 ) (Increase) decrease in accounts receivable - other (3,406
) 53 Increase in other assets (2,342 ) (2,443 ) Increase in
accounts payable and accrued expenses 5,043 6,603 Increase in
mandatorily redeemable non-controlling interests 6,401 4,028
Increase in other liabilities 77 447
Net cash provided by operating activities 22,191 31,053
INVESTING ACTIVITIES Purchase of fixed assets (3,245 )
(3,453 ) Purchase of businesses, net of cash acquired (33,665 )
(12,958 ) Acquisitions of non-controlling interests - (250 )
Proceeds on sale of fixed assets, net 62 42
Net cash used in investing activities (36,848 ) (16,619 )
FINANCING ACTIVITIES Distributions to non-controlling
interests (2,665 ) (2,893 ) Cash dividends paid to shareholders
(2,516 ) (4,254 ) Proceeds from revolving line of credit 49,000
93,000 Payments on revolving line of credit (26,000 ) (94,500 )
Payments to settle mandatorily redeemable non-controlling interests
(2,230 ) (1,136 ) Principal payments on notes payable (777 ) (533 )
Tax benefit from equity-based awards - 556 Other 40
1 Net cash used in financing activities 14,852 (9,759
) Net increase in cash and cash equivalents 195 4,675 Cash
and cash equivalents - beginning of period 20,047
15,778 Cash and cash equivalents - end of period $
20,242 $ 20,453
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION Cash paid during the period for: Income
taxes $ 7,516 $ 5,513 Interest $ 104 $ 512 Non-cash investing and
financing transactions during the period: Purchase of business -
seller financing portion $ 1,650 $ 500 Acquisition of
non-controlling interest - seller financing portion $ - $ 388
Payment to settle redeemable non-controlling interest - financing
portion $ - $ 126 Sale of non-controlling interests $ - $ (148 )
U. S. PHYSICAL THERAPY, INC. AND
SUBSIDIARIES
OPERATING RESULTS AND ADJUSTED
EBITDA(IN THOUSANDS, EXCEPT PER SHARE DATA)
The following tables reconcile net income attributable to USPH
shareholders calculated in accordance with GAAP to operating
results and Adjusted EBITDA. Management believes providing
operating results and Adjusted EBITDA to investors is useful
information for comparing the Company's period-to-period
results.
Operating results is defined as USPH’s net income attributable
to common shareholders prior to interest expense – mandatorily
redeemable non-controlling interests – change in redemption value
and costs related to the restatement of financial statements, both
net of tax. Management uses operating results, which eliminates
this current non-cash item that can be subject to volatility and
unusual costs, as one of the principal measures to evaluate and
monitor financial performance period over period. Management
believes that operating results is useful information for investors
to use in comparing the Company's period-to-period results as well
as for comparing with other similar businesses since most do not
have mandatorily redeemable instruments and therefore have
different liability and equity structures.
Adjusted EBITDA is defined as earnings before interest income,
interest expense – mandatorily redeemable non-controlling interests
– change in redemption value, interest expense – debt and other,
taxes, depreciation, amortization and equity-based awards
compensation expense. Management believes reporting Adjusted EBITDA
is useful information for investors in comparing the Company’s
period-to-period results as well as comparing with similar
businesses which report adjusted EBITDA as defined by their
company.
Operating results and Adjusted EBITDA are not measures of
financial performance under GAAP. Adjusted EBITDA and Adjusted Net
Income should not be considered in isolation or as an alternative
to, or substitute for, net income attributable to USPH shareholders
presented in the consolidated financial statements.
Three Months Ended
June 30, Six Months Ended June 30, 2017
2016 2017 2016 (as restated) (as restated) Net
income attributable to USPH shareholders $ 4,941 $ 6,012 $ 9,757 $
10,500 Adjustments: Interest expense MRNCI * - change in
redemption value 3,923 1,931 6,592 4,122 Costs related to
restatement of financials - legal and accounting 177 - 312 - Tax
effect at statutory rate (federal and state) of 39.25%
(1,609 ) (758 ) (2,710 ) (1,618 ) Operating
results $ 7,432 $ 7,185 $ 13,951 $ 13,004
Basic and diluted net income attributable to USPH
shareholders per share $ 0.39 $ 0.48 $ 0.78 $
0.84 Basic and diluted operating results per share $
0.59 $ 0.57 $ 1.11 $ 1.04 Shares
used in computation: Basic and diluted 12,579
12,511 12,553 12,480
Three Months Ended June 30, Six Months Ended June
30, 2017 2016 2017 2016 (as
restated) (as restated) Net income attributable to USPH
shareholders $ 4,941 $ 6,012 $ 9,757 $ 10,500 Adjustments:
Depreciation and amortization 2,433 2,067 4,789 4,158 Interest
income (23 ) (21 ) (47 ) (41 ) Interest expense MRNCI * - change in
redemption value 3,923 1,931 6,592 4,122 Interest expense - debt
and other 516 320 931 628 Provision for income taxes 3,085 3,802
4,897 5,974 Equity-based awards compensation expense 1,065
1,263 2,345 2,484
Adjusted EBITDA $ 15,940 $ 15,374 $ 29,264
$ 27,825 * Mandatorily redeemable
non-controlling interest
U.S. PHYSICAL THERAPY, INC. AND
SUBSIDIARIESRECAP OF CLINIC COUNT
March 31, 2016 512 June 30, 2016
516 September 30, 2016 524 December 31, 2016 540
March 31, 2017 558 June 30, 2017 566
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version on businesswire.com: http://www.businesswire.com/news/home/20170803005157/en/
U.S. Physical Therapy, Inc.Larry McAfee, (713) 297-7000Chief
Financial OfficerorChris Reading, (713) 297-7000Chief Executive
OfficerorThree Part AdvisorsJoe Noyons, (817) 778-8424
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