Full Press Release Details
Physical Therapy Reports Third Quarter and Nine Months Results
Declares Quarterly Dividend and Revises Guidance
HOUSTON--(BUSINESS WIRE)--November 7, 2013--U.S. Physical Therapy, Inc.
(NYSE: USPH), a national operator of outpatient physical therapy
clinics, today reported results for the third quarter and nine months
ended September 30, 2013.
U.S. Physical Therapy's net income attributable to common shareholders
from continuing operations for the three months ended September 30, 2013
was $4.7 million and diluted earnings per share from continuing
operations were $0.38.
During the quarter ended September 30, 2013, the Company sold the
remaining piece of its former Physician Services business, which is
treated as a discontinued operation for financial reporting purposes.
The results for the quarter include losses of $4.4 million, which
represents the operational loss of the physician services business and
write-down of its net assets, inclusive of intangible assets, less sale
proceeds net of appropriate reserves. Net income attributable to common
shareholders, inclusive of discontinued operations for the three month
period, was $227,000, or $.02 per diluted share.
Net income from continuing operations attributable to common
shareholders for the nine months ended September 30, 2013 was $13.6
million and diluted earnings per share from continuing operations were
Net income attributable to common shareholders, inclusive of
discontinued operations for the nine month period, was $8.9 million, or
$.73 per diluted share. As further described above the results for the
nine months include $4.7 million in losses from discontinued operations,
which represents the operational loss of the physician services business
and the write-down of its net assets.
Third Quarter 2013 Compared to Third Quarter 2012 from Continuing
Operations (Unless Otherwise Noted)
Net revenues increased 6.0% from $62,102,000 in the third quarter of
2012 to $65,829,000 in the third quarter of 2013, due to an increase
in visits from 575,000 to 611,000 offset by a small decrease in the
average net patient revenue per visit to $105.27 from $105.68 in the
comparable 2012 period.
Total clinic operating costs were $49,701,000, or 75.5% of net
revenues, in the third quarter of 2013, as compared to $46,660,000, or
75.1% of net revenues, in the 2012 period. The increase was primarily
attributable to $4,065,000 in operating costs of new clinics opened or
acquired in the past 12 months offset by a reduction in operating
costs of $1,024,000 for those clinics opened or acquired prior to the
past 12 months. Clinic salaries and related costs were 54.3% of net
revenues in the recent quarter versus 53.2% in the 2012 period. Rent,
clinic supplies, contract labor and other costs as a percentage of net
revenues were 19.6% for the recent quarter versus 19.9% in the 2012
period. The provision for doubtful accounts as a percentage of net
revenues was 1.7% for the 2013 period and 2.0% in the 2012 period.
The gross margin for the third quarter of 2013 increased to
$16,128,000 from $15,442,000 in the third quarter of 2012. The gross
margin percentage was 24.5% for the 2013 quarter as compared to 24.9%
for the comparable 2012 period.
Corporate office costs were $6,224,000 in the third quarter of 2013 as
compared to $5,907,000 in the 2012 third quarter. Corporate office
costs were 9.5% of net revenues in both the 2013 and 2012 periods.
Operating income for the recent quarter was $9,904,000 compared to
$9,535,000 in the 2012 third quarter.
Interest expense was $133,000 in the third quarter of 2013 versus
$142,000 in the third quarter of last 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 attributable to non-controlling interests, inclusive of
discontinued operations, was $2,032,000 in the recent quarter as
compared to $1,735,000 in the year earlier period.
Net income attributable to common shareholders for the three months
ended September 30, 2013 was $4,659,000 compared to $4,622,000 for the
three months ended September 30, 2012. Diluted earnings per share were
$0.38 for both the 2013 and 2012 periods.
Same store revenue for de novo and acquired clinics open for one year
or more decreased 2.0% as and visits decreased by 1% and the average
net rate was down slightly. Same store revenue and visits were
adjusted to reflect the same number of days in each period as the 2013
period included 64 days of operations while the 2012 period included
Nine Months 2013 Compared to Nine Months 2012 from Continuing
Operations (Unless Otherwise Noted)
Net revenues increased 4.4% from $187,270,000 in the first nine months
of 2012 to $195,453,000 in the first nine months of 2013, due to an
increase in visits from 1,740,000 to 1,803,000 and an increase in the
average net patient revenue per visit to $105.96 from $105.23 in the
comparable 2012 period.
Total clinic operating costs were $146,890,000, or 75.2% of net
revenues, in the first nine months of 2013, as compared to
$138,739,000, or 74.1% of net revenues, in the 2012 period. The
increase was primarily attributable to $7,943,000 in operating costs
of new clinics opened or acquired in the past 12 months and a slight
increase in operating costs of $208,000 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 nine months versus
52.3% in the 2012 period. Rent, clinic supplies, contract labor and
other costs as a percentage of net revenues were 19.5% for the recent
nine months versus 19.8% in the 2012 period. The provision for
doubtful accounts as a percentage of net revenues was 1.7% for the
2013 period versus 1.9% in the 2012 period.
Gross margin for the first nine months of 2013 was $48,563,000, or
24.8%, compared to $48,531,000, or 25.9%, for the comparable 2012
Corporate office costs were $19,165,000 in the 2013 nine months period
as compared to $18,426,000 in the 2012 first nine months. Corporate
office costs were 9.8% of net revenues in both the 2013 and 2012
Operating income for the first nine months of 2013 was $29,398,000
compared to $30,105,000 in the 2012 first nine months.
Interest expense was $398,000 in the first nine months of 2013 versus