Full Press Release Details
Physical Therapy Reports Second Quarter and Six Months 2013 Results
Declares Quarterly Dividend
HOUSTON--(BUSINESS WIRE)--August 8, 2013--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, 2013.
U.S. Physical Therapy's net income for the three months ended June 30,
2013 was $4.9 million and diluted earnings per share were $0.41.
U.S. Physical Therapy's net income for the six months ended June 30,
2013 was $8.6 million and diluted earnings per share were $0.72.
Second Quarter 2013 compared to Second Quarter 2012
Net revenues increased 5.1% from $63,959,000 in the second quarter of
2012 to $67,224,000 in the second quarter of 2013, due to an increase
in visits from 587,000 to 614,000 and an increase in the average net
patient revenue per visit to $106.30 from $105.65 in the comparable
Total clinic operating costs were $49,918,000, or 74.3% of net
revenues, in the second quarter of 2013, as compared to $46,965,000,
or 73.4% of net revenues, in the 2012 period. The increase was
primarily attributable to $3,288,000 in operating costs of new clinics
opened or acquired in the past 12 months offset by a reduction in
operating costs of $335,000 for those clinics opened or acquired prior
to the past 12 months. Clinic salaries and related costs were 53.3% of
net revenues in the recent quarter versus 51.1% in the 2012 period.
Rent, clinic supplies, contract labor and other costs as a percentage
of net revenues were 19.2% for the recent quarter versus 20.3% in the
2012 period. The provision for doubtful accounts as a percentage of
net revenues was 1.8% for the 2013 period versus 2.0% in the 2012
The gross margin dollars for the second quarter of 2013 increased by
$312,000; however, the gross margin percentage decreased to 25.7% for
the 2013 quarter, compared to 26.6% for the comparable 2012 quarter.
Gross margin percentage decreased due to a lower average number of
patient visits per clinic per day in the 2013 quarter compared to the
2012 quarter and a larger negative gross margin incurred in physician
services in the 2013 quarter compared to the 2012 quarter.
Corporate office costs were $6,622,000 in the second quarter of 2013
as compared to $6,396,000 in the 2012 second quarter. Corporate office
costs were 9.9% of net revenues in the 2013 period versus 10.0% in 2012.
Operating income for the second quarter of 2013 was $10,684,000
compared to $10,598,000 in the 2012 second quarter.
Interest expense was $130,000 in the second quarter of 2013 versus
$145,000 in the second quarter of 2012.
Net income attributable to non-controlling interests was $2,460,000 in
the recent quarter as compared to $2,465,000 in the year earlier
The provision for income taxes as a percentage of income before taxes
less net income attributable to non-controlling interests was 39.3% in
Net income for the three months ended June 30, 2013 was $4,914,000
compared to $4,849,000 for the three months ended June 30, 2012.
Diluted earnings per share were $0.41 for both periods.
Same store revenues for de novo and acquired clinics open for one year
or more decreased slightly. The net rate per visit and visits for de
novo and acquired clinics open for one year or more remained
Six Months 2013 compared to Six Months 2012
Net revenues increased 3.0% from $126,541,000 in the first six months
of 2012 to $130,322,000 in the first six months of 2013, due to an
increase in visits from 1,166,000 to 1,192,000 and an increase in the
average net patient revenue per visit to $106.37 from $105.10 in the
comparable 2012 period.
Total clinic operating costs were $98,358,000, or 75.5% of net
revenues, in the first six months of 2013, as compared to $93,414,000,
or 73.8% of net revenues, in the 2012 period. The increase was
primarily attributable to $4,878,000 in operating costs of new clinics
opened or acquired in the past 12 months and a slight increase in
operating costs of $66,000 for those clinics opened or acquired prior
to the past 12 months. Clinic salaries and related costs were 53.9% of
net revenues in the recent six months versus 51.7% in the 2012 period.
Rent, clinic supplies, contract labor and other costs as a percentage
of net revenues were 19.8% for the recent six months versus 20.1% in
the 2012 period. The provision for doubtful accounts as a percentage
of net revenues was 1.8% for the 2013 period versus 1.9% in the 2012
Gross margin for the first six months of 2013 was $31,964,000, or
24.5%, compared to $33,127,000, or 26.2%, for the comparable 2012
period. Gross margin decreased due to a lower average number of
patient visits per clinic per day in the 2013 period compared to the
2012 period and a negative gross margin incurred in physician services
Corporate office costs were $13,129,000 in the first six months of
2013 as compared to $12,658,000 in the 2012 first six months.
Corporate office costs were 10.1% of net revenues in the 2013 period
versus 10.0% in 2012.
Operating income for the first six months of 2013 was $18,835,000
compared to $20,469,000 in the 2012 first six months.
Interest expense was $265,000 in the first six months of 2013 versus
$307,000 in the first six months of 2012.
Net income attributable to non-controlling interests was $4,348,000 in
the first six months of 2013 as compared to $4,799,000 in the year
The provision for income taxes as a percentage of income before taxes
less net income attributable to non-controlling interests was 39.3% in
Net income for the six months ended June 30, 2013 was $8,635,000
compared to $9,327,000 for the six months ended June 30, 2012. Diluted
earnings per share were $0.72 for the 2013 period compared to $0.79
for the 2012 period.
Same store revenues for de novo and acquired clinics open for one year
or more were flat. While the net rate per visit increased 1.3%, visits
for de novo and acquired clinics open for one year or more decreased
by 1.8%. Same store revenues and visits were adjusted to reflect the
same number of days in each period as the 2013 period included 127
days of operations while the 2012 period included 128 days. Patient
visits for the first six months of 2013 would have been higher were it
not for the effects of severe weather and the flu in the first quarter
Chris Reading, Chief Executive Officer, said, "For the quarter our team
made solid progress from the first quarter although we have more work to