Full Press Release Details
Physical Therapy Reports Third Quarter Results
HOUSTON--(BUSINESS WIRE)--November 6, 2014--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, 2014.
U.S. Physical Therapy's net income attributable to common shareholders
from continuing operations for the third quarter of 2014 increased by
12.0% to $5.2 million as compared to approximately $4.7 million in the
third quarter of 2013. Diluted earnings per share from continuing
operations rose to $.43 in the recent quarter as compared to $.38 in the
comparable 2013 period.
U.S. Physical Therapy's net income attributable to common shareholders
from continuing operations for the first nine months of 2014 increased
by 16.8% to $15.9 million as compared to approximately $13.6 million in
the first nine months of 2013. Diluted earnings per share from
continuing operations rose to $1.30 in the recent period as compared to
$1.12 in the comparable 2013 period.
Third Quarter 2014 Compared to Third Quarter 2013 from Continuing
Net revenues increased 18.1% from $65.8 million in the third quarter
of 2013 to $77.7 million in the third quarter of 2014, due to an
increase in patient visits of 17.6% from 611,400 to 719,300 and an
increase in the average net revenue per visit to $105.92 from $105.27.
Total clinic operating costs were $59.0 million, or 75.9% of net
revenues, in the third quarter of 2014, as compared to $49.7 million,
or 75.5% of net revenues, in the 2013 period. Total clinic salaries
and related costs, including that from new clinics, were 53.8% of net
revenues in the recent quarter versus 54.3% in the 2013 period. Rent,
clinic supplies, contract labor and other costs as a percentage of net
revenues were 20.7% for the recent quarter versus 19.6% in the 2013
period. The provision for doubtful accounts as a percentage of net
revenues was 1.4% for the 2014 period and 1.7% in the 2013 period.
The gross margin for the third quarter of 2014 increased by 16.2% to
$18.7 million from $16.1 million in the third quarter of 2013. The
gross margin percentage was 24.1% for the 2014 period versus 24.5% in
Corporate office costs were $7.4 million in the third quarter of 2014
as compared to $6.2 million in the 2013 third quarter. Corporate
office costs as a percentage of net revenues were 9.6% for the period
2014 and 9.5% in the 2013 period.
Operating income for the recent quarter increased by 13.9% to $11.3
million compared to $9.9 million in the 2013 third quarter.
Interest expense was $0.2 million in the third quarter of 2014 versus
$0.1 million in the third 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 $3.6 million
and for the 2013 period $3.0 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 third quarter and 39.0%
in the 2013 third quarter.
Net income attributable to non-controlling interests, inclusive of
discontinued operations, was $2.2 million in the recent quarter as
compared to $2.0 million in the year earlier period.
Net income attributable to common shareholders for the three months
ended September 30, 2014 was $5.2 million compared to $4.7 million for
the three months ended September 30, 2013. Diluted earnings per share
from continuing operations were $.43 for the 2014 period and $.38 for
Same store visits increased 4.9% for de novo and acquired clinics open
for one year or more and same store revenue increased 4.5% as the
average net rate per visit decreased by $.42.
First Nine Months 2014 Compared to First Nine Months 2013 from
Continuing Operations
Net revenues increased 15.5% from $195.5 million in the first nine
months of 2013 to $225.7 million in the first nine months of 2014, due
to an increase in patient visits of 15.5% from 1,802,900 to 2,081,900
and a slight increase in the average net revenue per visit to $106.18
for the current period from $105.96 for the comparable 2013 period.
Total clinic operating costs were $168.5 million, or 74.6% of net
revenues, in the first nine months of 2014, as compared to $146.9
million, or 75.2% of net revenues, in the 2013 period. Total clinic
salaries and related costs were 53.1% of net revenues in the first
nine months of 2014 versus 53.9% in the 2013 period. Rent, clinic
supplies, contract labor and other costs as a percentage of net
revenues were 20.2% 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 1.7% in the 2013 period.
The gross margin for the first nine months of 2014 increased by 17.8%
to $57.2 million from $48.6 million in the first nine months of 2013.
The gross margin percentage was 25.4% for the 2014 first nine months
as compared to 24.8% for the comparable 2013 period.
Corporate office costs were $22.2 million in the first nine months of
2014 as compared to $19.2 million in the 2013 first nine months.
Corporate office costs were 9.8% of net revenues in both periods.
Operating income for the first nine months of 2014 increased by 19.1%
to $35.0 million compared to $29.4 million in the 2013 first nine
Interest expense was $0.8 million in the first nine months of 2014
versus $0.4 million in the first nine 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 $11.0 million
and for the 2013 period $8.8 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 nine months and
38.9% in the 2013 first nine months.
Net income attributable to non-controlling interests, inclusive of
discontinued operations, was $7.3 million in the first nine months of
2014 as compared to $6.4 million in the year earlier period.
Net income attributable to common shareholders for the nine months
ended September 30, 2014 was $15.9 million compared to $13.6 million
for the nine months ended September 30, 2013. Diluted earnings per
share from continuing operations were $1.30 for the 2014 period and
$1.12 for the 2013 period.