Full Press Release Details
Physical Therapy Reports First Quarter 2013 Results
Acquisition, Quarterly Dividend, and Earnings Guidance
HOUSTON--(BUSINESS WIRE)--May 9, 2013--U.S. Physical Therapy, Inc.
(NYSE: USPH), a national operator of outpatient physical therapy
clinics, today reported results for the first quarter ended March 31,
U.S. Physical Therapy's net income for the three months ended March 31,
2013 was $3.7 million compared to $4.5 million for the three months
ended March 31, 2012. Diluted earnings per share were $0.31 for the 2013
period versus $0.38 for the 2012 period. As per the Company's March 7,
2013, press release, although patient referrals in the first quarter
were as planned, the volume of patient visits was significantly impacted
by severe weather and the flu, particularly in January and February in
the East and Midwest. In the latter part of February and throughout
March, as the weather improved, the average number of patient visits per
clinic per day rebounded.
First Quarter 2013 compared to First Quarter 2012
Net revenues increased slightly from $62,582,000 in the first quarter
of 2012 to $63,098,000 in the first quarter of 2013, primarily due to
an increase in the average net patient revenue per visit to $106.43
from $104.55 in the comparable 2012 period. As described above, due to
severe weather and flu, total patient visits declined slightly to
578,000 for the 2013 period as compared to 579,000 for the 2012 period.
Total clinic operating costs were $48,440,000, or 76.8% of net
revenues, in the first quarter of 2013, as compared to $46,449,000, or
74.2% of net revenues, in the 2012 period. The increase was primarily
attributable to $2,819,000 in operating costs of new clinics opened or
acquired in the past 12 months offset by a reduction in operating
costs of $828,000 for those clinics opened or acquired prior to the
past 12 months. Clinic salaries and related costs were 54.5% of net
revenues in the recent quarter versus 52.4% in the 2012 period. Rent,
clinic supplies, contract labor and other costs as a percentage of net
revenues were 20.5% for the recent quarter versus 19.9% in the 2012
period. The provision for doubtful accounts as a percentage of net
revenues was 1.7% for the 2013 period versus 1.8% in the 2012 period.
Corporate office costs were $6,507,000 in the first quarter of 2013 as
compared to $6,262,000 in the 2012 first quarter. Corporate office
cost was 10.3% of net revenues in the 2013 period versus 10.0% in 2012.
Operating income for the first quarter of 2013 was $8,151,000 compared
to $9,871,000 in the 2012 first quarter.
Interest expense was $135,000 in the first quarter of 2013 versus
$162,000 in the first quarter of 2012.
Net income attributable to non-controlling interests was $1,888,000 in
the recent quarter as compared to $2,334,000 in the year earlier
The provision for income taxes as a percentage of income before taxes
less net income attributable to non-controlling interests was 39.3% in
Net income for the three months ended March 31, 2013 was $3.7 million
compared to $4.5 million for the three months ended March 31, 2012.
Diluted earnings per share were $0.31 for the 2013 period versus $0.38
for the 2012 period.
Same store revenues for de novo and acquired clinics open for one year
or more remained relatively flat. While the net rate per visit
increased 1.4%, visits for de novo and acquired clinics open for one
year or more decreased by 1.7%. Same store revenues and visits were
adjusted to reflect the same number of days in each period as the 2013
quarter included 63 days of operations while the 2012 quarter included
64 days. Patient visits for the first quarter of 2013 would have been
higher were it not for the effects of severe weather and the flu.
Larry McAfee, Chief Financial Officer, noted, "Because of the multiple
storm systems that battered the East and Midwest earlier this year and a
worse than normal flu season patient volumes were off in January and
February. The Company's average patient visits per day per clinic
improved from 20.1 in January to 22.1 in March. With the increased
patient volume, monthly earnings rose from approximately 7 cents per
share in January to about 14 cents in March."
Chris Reading, Chief Executive Officer, said, "After a rough start,
thanks to the focused efforts of our partners and our dedicated team,
the Company's operations improved significantly by the end of the
quarter. Additionally, we have been able to complete two nice
acquisitions so far in 2013 and expect a continued active development
program the balance of the year."
Second Physical Therapy Group Acquisition of 2013
On April 30, 2013, the Company acquired a 50% interest in a five clinic
physical therapy practice. The group sees more than 35,000 patient
visits per year with annual revenue of approximately $4.2 million.
U.S. Physical Therapy Declares Quarterly Dividend
The second quarterly dividend of 2013 for $.10 per share will be paid on
June 7 to shareholders of record as of May 17.
Management Earnings Guidance
U.S. Physical Therapy's management expects the Company's earnings for
the year 2013 to be in the range of $18.1 million to $18.8 million in
net income and $1.51 to $1.56 in diluted earnings per share. This
guidance range represents projected earnings from existing operations
and excludes future potential acquisitions. The Company does not provide
quarterly earnings guidance. The annual guidance figures will not be
updated unless there is a material development that causes management to
believe that earnings will be significantly outside the given range.
First Quarter 2013 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, May 9, 2013 to
discuss the Company's Quarter Ended March 31, 2013 results. Interested
parties may participate in the call by dialing 1-888-335-5539 or
973-582-2857 and enter reservation number 31738362 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
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. These statements contain forward-looking