Full Press Release Details
Physical Therapy Reports Record Earnings
Dividend and Provides 2015 Earnings Guidance
HOUSTON--(BUSINESS WIRE)--March 5, 2015--U.S. Physical Therapy, Inc.
(NYSE: USPH), a national operator of outpatient physical therapy
clinics, today reported results for the fourth quarter and year ended
In the fourth quarter of 2014, U.S. Physical Therapy's net income
attributable to common shareholders from continuing operations prior to
revaluation of redeemable non-controlling interests, net of tax
("operating results") increased by 27.5% to $5.0 million as compared to
approximately $3.9 million in the fourth quarter of 2013. Diluted
earnings per share from operating results rose to $0.41 in the recent
quarter as compared to $0.32 in the comparable 2013 period.
For the year 2014, U.S. Physical Therapy's operating results increased
by 19.2% to $20.9 million as compared to approximately $17.5 million for
the 2013 year. Diluted earnings per share from operating results rose to
$1.71 in 2014 as compared to $1.45 in 2013.
Fourth Quarter 2014 Compared to Fourth Quarter 2013 from
Continuing Operations Unless Otherwise Noted
Net revenues increased 15.7% from $68.6 million in the fourth quarter
of 2013 to $79.4 million in the fourth quarter of 2014, due to an
increase in patient visits of 15.6% from 638,000 to 737,000 and an
increase in the average net revenue per visit of $0.32 to $105.79 from
Total clinic operating costs were $60.5 million, or 76.1% of net
revenues, in the fourth quarter of 2014, as compared to $52.5 million,
or 76.5% of net revenues, in the 2013 period. Of the dollar increase,
$4.3 million was attributable to operating costs of new clinics opened
or acquired in the past 12 months. Total clinic salaries and related
costs, including that from new clinics, were 54.9% of net revenues in
the recent quarter versus 53.2% in the 2013 period. Rent, clinic
supplies, contract labor and other costs as a percentage of net
revenues were reduced to 19.7% for the recent quarter versus 21.5% in
the 2013 period. The provision for doubtful accounts as a percentage
of net revenues was 1.3% for the 2014 period and 1.4% in the 2013
The gross margin for the fourth quarter of 2014 increased by 17.4% to
$18.9 million from $16.1 million in the fourth quarter of 2013. The
gross margin percentage increased to 23.9% for the 2014 period as
compared to 23.5% for the 2013 period.
Corporate office costs were $8.2 million in the fourth quarter of 2014
as compared to $6.8 million in the 2013 fourth quarter. Corporate
office costs as a percentage of net revenues were 10.3% for the 2014
period and 9.9% in the 2013 period.
Operating income for the recent quarter increased by 14.8% to $10.8
million as compared to $9.4 million in the 2013 fourth quarter.
Interest expense was $0.3 million in the fourth quarter of 2014 versus
$0.1 million in the fourth quarter of last year. The increase in
interest expense is due to a higher average debt balance as the result
The provision for income taxes for the 2014 period was $3.2 million
and for the 2013 period $3.4 million. The provision for income taxes
as a percentage of income before taxes less net income attributable to
non-controlling interest was 39.4% in the 2014 fourth quarter and
46.8% in the 2013 period. In the current period, after a
reconciliation of the 2013 federal and state tax returns to our book
provision, we reduced our 2014 tax rate to 40.0% from 41.0% previously
accrued for the first nine months of 2014 and recorded an additional
provision of $0.2 million for 2013.
Net income attributable to non-controlling interests, inclusive of
discontinued operations, was $2.3 million in the recent quarter as
compared to $1.9 million in the period 2013.
Net income attributable to common shareholders for the three months
ended December 31, 2014 increased by 27.5% to $5.0 million compared to
$3.9 million for the three months ended December 31, 2013. Diluted
earnings per share from operating results were $0.41 for the 2014
period and $0.32 for the 2013 period.
Same store visits increased 2.8% for de novo and acquired clinics open
for one year or more while same store revenue increased 2.0% as the
average net rate per visit decreased by $0.81.
Year 2014 Compared to Year 2013 from Continuing Operations Unless
Net revenues increased 15.5% from $264.1 million in 2013 to $305.1
million in 2014, due to an increase in patient visits of 15.5% from
2,441,000 to 2,819,000 and an increase in the average net revenue per
visit to $106.08 for the past year from $105.83 in 2013.
Total clinic operating costs were $228.9 million or 75.0% of net
revenues for 2014, as compared to $199.4 million or 75.5% of net
revenues, for 2013. The dollar increase included $10.2 million in
operating costs of new clinics opened or acquired in 2014. Of the
remaining increase, $18.5 million was from clinics added throughout
2013. Total clinic salaries and related costs were 53.6% of net
revenues in 2014 versus 53.7% in 2013. Rent, clinic supplies, contract
labor and other costs as a percentage of net revenues were 20.1% for
the past year versus 20.0% in 2013. The provision for doubtful
accounts as a percentage of net revenues was 1.3% for 2014 and 1.7% in
The gross margin for 2014 increased by 17.7% to $76.2 million from
$64.7 million in 2013. The gross margin percentage increased to 25.0%
in 2014 as compared to 24.5% in 2013.
Corporate office costs were $30.4 million for 2014 as compared to
$25.9 million for 2013. Corporate office costs were 10.0% of net
revenues for 2014 and 9.8% for 2013.
Operating income increased 18.1% to $45.8 million in 2014 as compared
to $38.8 million in 2013.
Interest expense was $1.1 million in 2014 versus $0.5 million in 2013.
The increase in interest expense is due to a higher average
outstanding debt balance as the result of acquisitions.
The provision for income taxes for 2014 was $14.3 million and for 2013
it was $12.2 million. The provision for income taxes as a percentage
of income before taxes less net income attributable to non-controlling
interest was 40.6% in 2014 and 41.1% in 2013.
Net income attributable to non-controlling interests, inclusive of
discontinued operations, was $9.6 million in 2014 as compared to $8.3
Net income attributable to common shareholders for the year ended
December 31, 2014 increased 19.2% to $20.9 million as compared to