Full Press Release Details
Physical Therapy Reports Third Quarter and First Nine Months 2015 Results
Declares $0.15 Per Share Quarterly Dividend
HOUSTON--(BUSINESS WIRE)--November 5, 2015--U.S. Physical Therapy, Inc.
(NYSE: USPH), a national operator of outpatient physical therapy
clinics, today reported results for the quarter and nine 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") increased 11.5% to $5.8 million for the third
quarter of 2015 as compared to $5.2 million in the third quarter of
2014. Diluted earnings per share from operating results were $0.47 in
the recent quarter as compared to $0.43 in the comparable 2014 period.
U.S. Physical Therapy's operating results for the first nine months of
2015 were $16.3 million, an increase of 2.6% as compared to $15.9
million in the first nine months of 2014. Diluted earnings per share
from operating results were $1.32 in the first nine months of 2015 and
$1.30 in the comparable 2014 period.
Third Quarter 2015 Compared to Third Quarter 2014
Net revenues increased 8.1% from $77.7 million in the third quarter of
2014 to $84.0 million in the third quarter of 2015, due to an increase
in total patient visits of 8.7% from 719,300 to 782,100 offset by a
decrease in the average net revenue per visit to $105.04 for the 2015
third quarter from $105.92 for the 2014 third quarter. Net revenues
for new clinics opened or acquired in the past 12 months was $5.4
Total clinic operating costs were $65.2 million, or 77.5% of net
revenues, in the third quarter of 2015, as compared to $59.0 million,
or 75.9% of net revenues, in the 2014 period. The increase was
primarily attributable to $5.1 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
55.4% of net revenues in the recent quarter versus 53.8% in the 2014
period. Included in salaries and related costs in the 2015 quarter is
$230,000 of compensation and severance costs for employee terminations
as part of the Company's previously announced cost-cutting plan. Rent,
clinic supplies, contract labor and other costs as a percentage of net
revenues were 20.7% for both periods. The provision for doubtful
accounts as a percentage of net revenues was 1.3% in 2015 period and
1.4% in the 2014 period.
The gross margin for the third quarter of 2015 was $18.9 million or
22.5%, as compared to $18.8 million or 24.1% in the 2014 period.
Corporate office costs were $6.9 million in the third quarter of 2015
as compared to $7.5 million in the 2014 third quarter. Corporate
office costs were 8.2% of net revenues in the 2015 third quarter
compared to 9.6% of net revenues in the 2014 period.
Operating income for the recent quarter was $11.9 million compared to
$11.3 million in the 2014 third quarter.
Interest expense was $0.3 million in the third quarter of 2015 and
$0.2 million in the third quarter of 2014.
The provision for income taxes for the 2015 period was $3.7 million
and for the 2014 period $3.6 million. The provision for income taxes
as a percentage of income before taxes less net income attributable to
non-controlling interest was 38.6% in the 2015 third quarter and 41.0%
in the 2014 third quarter. The 2015 third quarter includes an
adjustment of the 2015 expected annual tax rate to 39.5% from 40.0%
based on an analysis of the 2015 results inclusive of non-deductible
Net income attributable to non-controlling interests was $2.2 million
The operating results for the three months ended September 30, 2015
was $5.8 million and $5.2 million in the 2014 period. Diluted earnings
per share from operating results were $0.47 in the 2015 period and
$0.43 in the 2014 period.
Same store visits increased 3.3% for de novo and acquired clinics open
for one year or more and same store revenue increased 2.5% as the
average net rate per visit decreased by $0.84.
Nine Months 2015 Compared to Nine Months 2014
Net revenues increased 8.4% from $225.7 million in the first nine
months of 2014 to $244.6 million in the first nine month of 2015, due
to an increase in total patient visits of 9.1% from 2,081,900 to
2,271,900 offset by a decrease in the average net revenue per visit to
$105.38 for the current period of 2015 from $106.18 for the 2014
period. Net revenues from new clinics opened or acquired in the past
12 months was $10.3 million.
Total clinic operating costs were $187.7 million, or 76.8% of net
revenues, in the first nine months of 2015, as compared to $168.5
million, or 74.6% of net revenues, in the 2014 period. The increase
includes $9.6 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 54.8% of net revenues in
the first nine months versus 53.1% in the 2014 period. Included in
salaries and related costs in the 2015 period is $230,000 of
compensation and severance costs for employee terminations as part of
the Company's previously announced cost-cutting plan. Rent, clinic
supplies, contract labor and other costs as a percentage of net
revenues were 20.6% in the recent period versus 20.2% in the 2014
period. The provision for doubtful accounts as a percentage of net
revenues was 1.3% in the 2015 period and 1.4% in the 2014 period.
The gross margin for the first nine months of 2015 was $56.9 million
or 23.2%, as compared to $57.2 million or 25.4% in the 2014 period.
Corporate office costs were $22.2 million in the first nine months of
2015 and in the 2014 period. Corporate office costs were 9.1% of net
revenues in the 2015 first nine months as compared to 9.8% of net
revenues in the 2014 period.
Operating income for the first nine months of 2015 was $34.7 million
compared to $35.0 million in the 2014 first nine months.
Interest expense was $0.8 million in both periods.
The provision for income taxes for the 2015 period was $10.6 million
and for the 2014 period was $11.0 million. The provision for income
taxes as a percentage of income before taxes less net income
attributable to non-controlling interest was 39.5% in the 2015 first
nine months and 41.0% in the 2014 first nine months.
Net income attributable to non-controlling interests was $7.0 million
in the nine months of 2015 as compared to $7.3 million in the year