Full Press Release Details
Physical Therapy Reports Record Results and Raises 2014 Earnings Guidance
HOUSTON--(BUSINESS WIRE)--August 7, 2014--U.S. Physical Therapy, Inc.
(NYSE: USPH), a national operator of outpatient physical therapy
clinics, today reported results for the second quarter and six months
ended June 30, 2014.
U.S. Physical Therapy's net income attributable to common shareholders
from continuing operations for the second quarter of 2014 increased by
26.6% to $6.4 million as compared to approximately $5.1 million in the
second quarter of 2013. Diluted earnings per share from continuing
operations rose to $.53 in the recent quarter as compared to $.42 in the
comparable 2013 period.
U.S. Physical Therapy's net income attributable to common shareholders
from continuing operations for the first six months of 2014 increased by
19.4% to $10.7 million as compared to approximately $8.9 million in the
first six months of 2013. Diluted earnings per share from continuing
operations rose to $.87 in the recent period as compared to $.74 in the
comparable 2013 period.
Second Quarter 2014 Compared to Second Quarter 2013 from
Continuing Operations
Net revenues increased 16.9% from $66.9 million in the second quarter
of 2013 to $78.2 million in the second quarter of 2014, due to an
increase in patient visits of 17.1% from 613,900 to 718,800 and a
slight increase in the average net revenue per visit to $106.39 from
Total clinic operating costs were $56.4 million, or 72.1% of net
revenues, in the second quarter of 2014, as compared to $49.3 million,
or 73.7% of net revenues, in the 2013 period. Total clinic salaries
and related costs, including that from new clinics, were 51.3% of net
revenues in the recent quarter versus 53.1% in the 2013 period. Rent,
clinic supplies, contract labor and other costs as a percentage of net
revenues were 19.4% for the recent quarter versus 18.8% in the 2013
period. The provision for doubtful accounts as a percentage of net
revenues was 1.3% for the 2014 period and 1.8% in the 2013 period.
The gross margin for the second quarter of 2014 increased by 24.2% to
$21.8 million from $17.6 million in the second quarter of 2013. The
gross margin percentage was 27.9% for the 2014 quarter as compared to
26.3% for the comparable 2013 period.
Corporate office costs were $7.6 million in the second quarter of 2014
as compared to $6.5 million in the 2013 second quarter. Corporate
office costs were 9.7% of net revenues in the current period and 9.8%
for the comparable 2013 period.
Operating income for the recent quarter increased by 28.6% to $14.2
million compared to $11.1 million in the 2013 second quarter.
Interest expense was $0.3 million in the second quarter of 2014 versus
$0.1 million in the second 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 $4.5 million
and for the 2013 period $3.3 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 second quarter and
38.8% in the 2013 second quarter.
Net income attributable to non-controlling interests, inclusive of
discontinued operations, was $3.0 million in the recent quarter as
compared to $2.5 million in the year earlier period.
Net income attributable to common shareholders for the three months
ended June 30, 2014 was $6.4 million compared to $5.1 million for the
three months ended June 30, 2013. Diluted earnings per share from
continuing operations were $.53 for the 2014 period and $.42 for the
Same store visits increased 4.6% for de novo and acquired clinics open
for one year or more and same store revenue increased 4.1% as the
average net rate per visit decreased by $.58.
First Six Months 2014 Compared to First Six Months 2013 from
Continuing Operations
Net revenues increased 14.2% from $129.6 million in the first six
months of 2013 to $148.0 million in the first six months of 2014, due
to an increase in patient visits of 14.4% from 1,191,000 to 1,363,000.
The average net revenue per visit remained relatively the same for the
two periods at $106.31 for the current period and $106.30 for the
comparable 2013 period.
Total clinic operating costs were $109.5 million, or 74.0% of net
revenues, in the first six months of 2014, as compared to $97.2
million, or 75.0% of net revenues, in the 2013 period. Total clinic
salaries and related costs were 52.7% of net revenues in the first six
months of 2014 versus 53.7% in the 2013 period. Rent, clinic supplies,
contract labor and other costs as a percentage of net revenues were
19.9% for the recent period versus 19.5% in the 2013 period. The
provision for doubtful accounts as a percentage of net revenues was
1.4% for the 2014 period and 1.8% in the 2013 period.
The gross margin for the first six months of 2014 increased by 18.6%
to $38.5 million from $32.4 million in the first six months of 2013.
The gross margin percentage was 26.0% for the 2014 first six months as
compared to 25.0% for the comparable 2013 period.
Corporate office costs were $14.7 million in the first six months of
2014 as compared to $12.9 million in the 2013 first six months.
Corporate office costs were 10.0% of net revenues in both periods.
Operating income for the first six months of 2014 increased by 21.8%
to $23.7 million compared to $19.5 million in the 2013 first six
Interest expense was $0.6 million in the first six months of 2014
versus $0.3 million in the first six months of last year. 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 the 2014 period was $7.4 million
and for the 2013 period $5.8 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 six months and
38.8% in the 2013 first six months.
Net income attributable to non-controlling interests, inclusive of
discontinued operations, was $5.1 million in the first six months of
2014 as compared to $4.3 million in the year earlier period.
Net income attributable to common shareholders for the six months
ended June 30, 2014 was $10.7 million compared to $8.9 million for the