Full Press Release Details
Physical Therapy Reports First Quarter 2014 Results
Declares Quarterly Dividend
HOUSTON--(BUSINESS WIRE)--May 8, 2014--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,
Despite unusually bad weather in the first quarter of 2014, U.S.
Physical Therapy's net income attributable to common shareholders from
continuing operations increased by 9.8% to over $4.2 million as compared
to approximately $3.9 million in the first quarter of 2013. Diluted
earnings per share from continuing operations rose to $.35 in the recent
quarter as compared to $.32 in the comparable 2013 period. The Company
previously announced in early March, 2014 that the adverse weather
prevalent in many parts of the country in January and February had
resulted in more than 10,000 patient visits having been cancelled with
an estimated earnings impact of $.04 per share.
First Quarter 2014 Compared to First Quarter 2013 from Continuing
Net revenues increased 11.2% from $62.8 million in the first quarter
of 2013 to $69.8 in the first quarter of 2014, due to an increase in
patient visits of 11.5% from 577,600 to 643,900 offset by a slight
decrease in the average net revenue per visit to $106.23 from $106.36.
Total clinic operating costs were $53.1 million, or 76.1% of net
revenues, in the first quarter of 2014, as compared to $47.9 million,
or 76.3% of net revenues, in the 2013 period. The increase was
attributable to $6.6 million in operating costs of new clinics opened
or acquired in the past 12 months offset by a reduction in operating
costs of $1.4 million for those clinics opened or acquired prior to
the past 12 months. Total clinic salaries and related costs, including
that from new clinics, were 54.4% of net revenues in the recent
quarter versus 54.3% in the 2013 period. Rent, clinic supplies,
contract labor and other costs as a percentage of net revenues were
20.4% for the recent quarter versus 20.3% in the 2013 period. The
provision for doubtful accounts as a percentage of net revenues was
1.4% for the 2014 period and 1.7% in the 2013 period.
The gross margin for the first quarter of 2014 increased by 12.1% to
$16.6 million from $14.8 million in the first quarter of 2013. The
gross margin percentage was 23.9% for the 2014 quarter as compared to
23.7% for the comparable 2013 period.
Corporate office costs were $7.1 million in the first quarter of 2014
as compared to $6.4 million in the 2013 first quarter. Corporate
office costs were 10.2% of net revenues in both periods.
Operating income for the recent quarter increased by 12.8% to $9.5
million compared to $8.4 million in the 2013 first quarter.
Interest expense was $0.3 million in the first quarter of 2014 versus
$0.1 million in the first quarter of last year. The increase in
interest expense is due to a higher average outstanding balance on the
Company's line of credit as the result of acquisitions.
The provision for income taxes for the 2014 period was $2.9 million
and for the 2013 period $2.5 million. The provision for income taxes
as a percentage of income before taxes less net income attributable to
non-controlling interest was 41.0% in the 2014 first quarter and 38.9%
in the 2013 first quarter.
Net income attributable to non-controlling interests, inclusive of
discontinued operations, was $2.1 million in the recent quarter as
compared to $1.9 million in the year earlier period.
Net income attributable to common shareholders for the three months
ended March 31, 2014 was $4.2 million compared to $3.9 million for the
three months ended March 31, 2013. Diluted earnings per share from
continuing operations were $0.35 for the 2014 period and $0.32 for the
Same store visits increased slightly for de novo and acquired clinics
open for one year or more while revenue decreased 1.7% as the average
net rate per visit decreased by $1.91. In April, 2013, both the
Medicare Multiple Procedure Payment Reduction ("MPPR") and
Sequestration went into effect which reduced the Company's
reimbursement for Medicare patients by approximately 10%.
Larry McAfee, Chief Financial Officer, noted, "The first week of March
we announced that patient visits and earnings had been adversely
affected by the especially poor weather in January and February. At the
same time we also noted that patient referrals year-to-date were ahead
of budget. The combination of improving weather and the strong referral
backlog resulted in a significant improvement in patient visits in the
Chris Reading, Chief Executive Officer, said, "Despite the incredibly
challenging weather for the first few months of this year, I am very
pleased at our team's persistence and perseverance as they have
continuously strived to produce a good result for our patients as well
as our shareholders. Integration of the acquisitions completed last year
is going very well and we are excited about the talent we have added
through these deals including our newest acquisition announced just last
week. Lastly I am encouraged by our improving expense management which
has been a key focus for us and where we have continued room to improve
U.S. Physical Therapy Declares Quarterly Dividend
The second quarterly dividend of 2014 for $.12 per share will be paid on
June 6 to shareholders of record as of May 20.
First Quarter 2014 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 8, 2014 to
discuss the Company's Quarter Ended March 31, 2014 results. Interested
parties may participate in the call by dialing 1-888-335-5539 or
973-582-2857 and enter reservation number 26703696 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 August 7, 2014.
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",