Full Press Release Details
Physical Therapy Reports First Quarter 2015 Results
Declares $.15 Per Share Quarterly Dividend
HOUSTON--(BUSINESS WIRE)--May 7, 2015--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 attributable to common shareholders
prior to revaluation of redeemable non-controlling interests, net of tax
("operating results") was $4.2 million for the first quarter of 2015 and
for the first quarter of 2014. Diluted earnings per share from operating
results were $.34 in the recent quarter as compared to $.35 in the
comparable 2014 period. As noted in the Company's press release on March
5, the unusually severe winter weather prevalent in many parts of the
country during the first quarter adversely impacted operations.
Management estimates that more than 20,000 patient visits were cancelled
with an earnings impact of $.07 to $.09 per share.
First Quarter 2015 Compared to First Quarter 2014
Net revenues increased 10.7% from $69.8 million in the first quarter
of 2014 to $77.2 million in the first quarter of 2015, due to an
increase in total patient visits of 10.7% from 643,900 to 712,900 and
a slight increase in the average net revenue per visit to $106.34 from
$106.23. Net revenues from new clinics opened or acquired in the past
12 months was $6.2 million.
Total clinic operating costs were $60.4 million, or 78.2% of net
revenues, in the first quarter of 2015, as compared to $53.1 million,
or 76.1% of net revenues, in the 2014 period. The increase was
primarily attributable to $5.5 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
55.7% of net revenues in the recent quarter versus 54.4% in the 2014
period. Rent, clinic supplies, contract labor and other costs as a
percentage of net revenues were 21.1% for the recent quarter versus
20.4% in the 2014 period. The provision for doubtful accounts as a
percentage of net revenues was 1.3% for the 2015 period and 1.4% in
The gross margin for the first quarter of 2015 was $16.8 million or
21.8%, as compared to $16.6 million or 23.9% for the 2014 quarter.
Corporate office costs were $7.7 million in the first quarter of 2015
compared to $7.1 million in the 2014 first quarter. Corporate office
costs were 9.9% of net revenues for the 2015 quarter compared to 10.2%
of net revenues for the 2014 quarter.
Operating income for the recent quarter was $9.2 million compared to
$9.5 million in the 2014 first quarter.
Interest expense was $0.3 million in the first quarter of 2015 and
The provision for income taxes for the 2015 period was $2.8 million
and for the 2014 period $2.9 million. The provision for income taxes
as a percentage of income before taxes less net income attributable to
non-controlling interest was 40.0% in the 2015 first quarter and 41.0%
in the 2014 first quarter.
Net income attributable to non-controlling interests was $2.0 million
in the recent quarter as compared to $2.1 million in the year earlier
Operating results attributable to common shareholders for the three
months ended March 31, 2015 and 2014 was consistent at $4.2 million
for each period. Diluted earnings per share from operating results
were $0.34 for the 2015 period and $0.35 for the 2014 period.
Same store visits increased 3.8% for de novo and acquired clinics open
for one year or more and same store revenue increased 4.2% as the
average net rate per visit increased by $.40.
Chris Reading, Chief Executive Officer, said, "This was undoubtedly a
difficult quarter from a weather perspective yet there were a number of
bright spots including solid same store visit growth, strong referral
volume and a couple of acquisitions closed in the early part of this
year. I continue to have great confidence in our team and in our
collective ability to execute on our plan for 2015."
Larry McAfee, Chief Financial Officer, noted, "By mid-March, after the
winter storms subsided, the Company's average daily patient visits rose
significantly such that we ended the first quarter at a solid run rate.
Absent the severe weather, patient visits in the first quarter would
have been higher as same store patient referrals increased a strong
U.S. Physical Therapy Declares Quarterly Dividend
The second quarterly dividend of 2015 for $.15 per share will be paid on
June 5 to shareholders of record as of May 18.
First 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, May 7, 2015 to
discuss the Company's Quarter Ended March 31, 2015 results. Interested
parties may participate in the call by dialing 1-888-335-5539 or
973-582-2857 and entering reservation number 22675485 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, 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