Full Press Release Details
Physical Therapy Reports Second Quarter and First Six Months 2015 Results
Declares $0.15 Per Share Quarterly Dividend
Updated Earnings Guidance for 2015
HOUSTON--(BUSINESS WIRE)--August 6, 2015--U.S. Physical Therapy, Inc.
(NYSE: USPH), a national operator of outpatient physical therapy
clinics, today reported results for the quarter and six months ended
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 $6.3 million for the second quarter of 2015 as
compared to $6.4 million in the second quarter of 2014. Diluted earnings
per share from operating results were $0.51 in the recent quarter as
compared to $0.53 in the comparable 2014 period.
U.S. Physical Therapy's operating results for the first six months of
2015 were $10.5 million as compared to $10.7 million in the first six
months of 2014. Diluted earnings per share from operating results were
$0.85 in the first half of 2015 as compared to $0.87 in the comparable
Second Quarter 2015 Compared to Second Quarter 2014
Net revenues increased 6.5% from $78.2 million in the second quarter
of 2014 to $83.3 million in the second quarter of 2015, due to an
increase in total patient visits of 8.1% from 718,800 to 776,900
offset by a decrease in the average net revenue per visit to $104.85
for the 2015 second quarter from $106.39 for the 2014 second quarter.
Net revenues for new clinics opened or acquired in the past 12 months
Total clinic operating costs were $62.1 million, or 74.6% of net
revenues, in the second quarter of 2015, as compared to $56.4 million,
or 72.1% of net revenues, in the 2014 period. The increase was
primarily attributable to $3.9 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
53.3% of net revenues in the recent quarter versus 51.3% in the 2014
period. Rent, clinic supplies, contract labor and other costs as a
percentage of net revenues were 20.0% for the recent quarter versus
19.4% in the 2014 period. The provision for doubtful accounts as a
percentage of net revenues was 1.3% for both periods.
The gross margin for the second quarter of 2015 was $21.1 million or
25.4%, as compared to $21.8 million or 27.9% for the 2014 period.
Corporate office costs were $7.6 million in the second quarter of 2015
and 2014. Corporate office costs were 9.1% of net revenues for the
2015 second quarter compared to 9.7% of net revenues for the 2014
Operating income for the recent quarter was $13.5 million compared to
$14.2 million in the 2014 second quarter.
Interest expense was $0.2 million in the second quarter of 2015 and
$0.3 million in the second quarter of 2014.
The provision for income taxes for the 2015 period was $4.2 million
and for the 2014 period $4.5 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 second quarter and
41.0% in the 2014 second quarter.
Net income attributable to non-controlling interests was $2.8 million
in the recent quarter as compared to $3.0 million in the year earlier
Net income attributable to common shareholders prior to revaluation of
redeemable non-controlling interests, net of tax for the three months
ended June 30, 2015 was $6.3 million and $6.4 million for the 2014
period. Diluted earnings per share from operating results were $0.51
for the 2015 period and $0.53 for the 2014 period.
Same store visits increased 2.9% for de novo and acquired clinics open
for one year or more and same store revenue increased 1.3% as the
average net rate per visit decreased by $1.60.
First Six Months 2015 Compared to First Six Months 2014
Net revenues increased 8.5% from $148.0 million in the first six
months of 2014 to $160.5 million in the first six month of 2015, due
to an increase in total patient visits of 9.3% from 1,362,600 to
1,489,700 offset by a decrease in the average net revenue per visit to
$105.56 for the first half of 2015 from $106.31 for the 2014 period.
Net revenues from new clinics opened or acquired in the past 12 months
Total clinic operating costs were $122.5 million, or 76.3% of net
revenues, in the first six months of 2015, as compared to $109.5
million, or 74.0% of net revenues, in the 2014 period. The increase
includes $6.4 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 54.5% of net revenues in
the first six months versus 52.7% in the 2014 period. Rent, clinic
supplies, contract labor and other costs as a percentage of net
revenues were 20.6% for the recent period versus 19.9% 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 2014 period.
The gross margin for the first six months of 2015 was $38.0 million or
23.7%, as compared to $38.5 million or 26.0% for the 2014 period.
Corporate office costs were $15.3 million in the first six months of
2015 compared to $14.7 million in the 2014 period. Corporate office
costs were 9.5% of net revenues for the 2015 first six months as
compared to 10.0% of net revenues for the 2014 period.
Operating income for the first six months of 2015 was $22.7 million
compared to $23.7 million in the 2014 first six months.
Interest expense was $0.5 million in the first six months of 2015
versus $0.6 million in the first six months of 2014.
The provision for income taxes for the 2015 period was $7.0 million
and for the 2014 period $7.4 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 six months and
41.0% in the 2014 first six months.
Net income attributable to non-controlling interests was $4.8 million
for the six months of 2015 as compared to $5.1 million in the year
Net income attributable to common shareholders prior to revaluation of
redeemable non-controlling interests, net of tax for the six months
ended June 30, 2015 was $10.5 million compared to $10.7 million for
the six months ended June 30, 2014. Diluted earnings per share from
operating results were $0.85 for the 2015 period and $0.87 for the
Same store visits increased 3.1% for de novo and acquired clinics open
for one year or more and same store revenue increased 2.5%. The