U.S. Physical Therapy Reports Second Quarter 2024 Results
U.S. Physical Therapy (NYSE: USPH) reported strong Q2 2024 results with all-time high quarterly patient volume. Key highlights include:
- Adjusted EBITDA increased to $22.1 million from $21.7 million in Q2 2023
- Operating Results rose to $11.0 million ($0.73 per share) from $10.4 million ($0.76 per share) in Q2 2023
- Total revenue from physical therapy operations grew 8.5% to $143.5 million
- Net rate per patient visit increased 3.0% to $105.05
- Total patient visits increased 5.4% to 1,335,335
- Industrial injury prevention services revenue grew 23.2% to $23.7 million
The company updated its 2024 Adjusted EBITDA guidance to $80.0-$85.0 million, citing increased costs due to a challenging employment environment.
U.S. Physical Therapy (NYSE: USPH) ha riportato risultati solidi per il secondo trimestre del 2024, con un volume di pazienti trimestrale ai massimi storici. I punti salienti includono:
- L'EBITDA rettificato è aumentato a 22,1 milioni di dollari rispetto ai 21,7 milioni di dollari nel secondo trimestre del 2023
- I risultati operativi sono aumentati a 11,0 milioni di dollari (0,73 dollari per azione) rispetto ai 10,4 milioni di dollari (0,76 dollari per azione) nel secondo trimestre del 2023
- I ricavi totali dalle operazioni di terapia fisica sono cresciuti dell'8,5% a 143,5 milioni di dollari
- La tariffa netta per visita del paziente è aumentata del 3,0% a 105,05 dollari
- Il totale delle visite dei pazienti è aumentato del 5,4% a 1.335.335
- I ricavi dai servizi di prevenzione degli infortuni industriali sono cresciuti del 23,2% a 23,7 milioni di dollari
L'azienda ha aggiornato le previsioni di EBITDA rettificato per il 2024 a 80,0-85,0 milioni di dollari, citando un aumento dei costi dovuto a un ambiente lavorativo difficile.
U.S. Physical Therapy (NYSE: USPH) reportó resultados sólidos para el segundo trimestre de 2024, con un volumen de pacientes trimestral en niveles récord. Los aspectos más destacados incluyen:
- El EBITDA ajustado aumentó a 22,1 millones de dólares desde 21,7 millones de dólares en el segundo trimestre de 2023
- Los resultados operativos crecieron a 11,0 millones de dólares (0,73 dólares por acción) desde 10,4 millones de dólares (0,76 dólares por acción) en el segundo trimestre de 2023
- Los ingresos totales de las operaciones de terapia física crecieron un 8,5% hasta 143,5 millones de dólares
- La tarifa neta por visita de paciente aumentó un 3,0% hasta 105,05 dólares
- El total de visitas de pacientes aumentó un 5,4% hasta 1.335.335
- Los ingresos por servicios de prevención de lesiones industriales crecieron un 23,2% hasta 23,7 millones de dólares
La empresa actualizó su guía de EBITDA ajustado para 2024 a 80,0-85,0 millones de dólares, citando un aumento de costos debido a un entorno laboral desafiante.
U.S. Physical Therapy (NYSE: USPH)는 2024년 2분기 결과를 발표했으며, 역대 최고 분기 환자 수를 기록했습니다. 주요 하이라이트는 다음과 같습니다:
- 조정된 EBITDA가 2023년 2분기 2,170만 달러에서 2,210만 달러로 증가했습니다.
- 운영 결과는 2,040만 달러(주당 0.73 달러)에서 2,050만 달러(주당 0.76 달러)로 증가했습니다.
- 물리 치료 운영의 총 수익이 8.5% 증가하여 1억 4,350만 달러에 도달했습니다.
- 환자 방문당 순 요금이 3.0% 증가하여 105.05 달러가 되었습니다.
- 총 환자 방문 수가 5.4% 증가하여 1,335,335명이 되었습니다.
- 산업 재해 예방 서비스의 수익이 23.2% 증가하여 2,370만 달러에 도달했습니다.
회사는 2024년 조정된 EBITDA 가이던스를 8,000만에서 8,500만 달러로 업데이트했으며, 어려운 고용 환경으로 인한 비용 증가를 언급했습니다.
U.S. Physical Therapy (NYSE: USPH) a annoncé de bons résultats pour le deuxième trimestre 2024, avec un volume de patients trimestriel record. Les points clés incluent :
- L'EBITDA ajusté a augmenté à 22,1 millions de dollars contre 21,7 millions de dollars au deuxième trimestre 2023
- Les résultats d'exploitation ont augmenté à 11,0 millions de dollars (0,73 dollar par action) contre 10,4 millions de dollars (0,76 dollar par action) au deuxième trimestre 2023
- Les revenus totaux des opérations de thérapie physique ont augmenté de 8,5 % pour atteindre 143,5 millions de dollars
- Le tarif net par visite de patient a augmenté de 3,0 % pour atteindre 105,05 dollars
- Le nombre total de visites de patients a augmenté de 5,4 % pour atteindre 1.335.335
- Les revenus des services de prévention des blessures industrielles ont augmenté de 23,2 % pour atteindre 23,7 millions de dollars
La société a mis à jour ses prévisions d'EBITDA ajusté pour 2024 à 80,0-85,0 millions de dollars, citant une augmentation des coûts en raison d'un environnement de travail difficile.
U.S. Physical Therapy (NYSE: USPH) hat im zweiten Quartal 2024 starke Ergebnisse mit beispiellosem Patientenvolumen im Quartal gemeldet. Wichtige Highlights umfassen:
- Das bereinigte EBITDA stieg von 21,7 Millionen Dollar im zweiten Quartal 2023 auf 22,1 Millionen Dollar.
- Die Betriebsergebnisse stiegen von 10,4 Millionen Dollar (0,76 Dollar pro Aktie) im zweiten Quartal 2023 auf 11,0 Millionen Dollar (0,73 Dollar pro Aktie).
- Der Gesamterlös aus physiotherapeutischen Operationen wuchs um 8,5 % auf 143,5 Millionen Dollar.
- Der Netto-Betrag pro Patientenbesuch stieg um 3,0 % auf 105,05 Dollar.
- Die Gesamtzahl der Patientenbesuche stieg um 5,4 % auf 1.335.335.
- Die Einnahmen aus Dienstleistungen zur Verhütung von Industriestaus stiegen um 23,2 % auf 23,7 Millionen Dollar.
Das Unternehmen hat seine Prognose für das bereinigte EBITDA 2024 auf 80,0-85,0 Millionen Dollar angehoben und auf gestiegene Kosten aufgrund eines herausfordernden Arbeitsumfelds hingewiesen.
- All-time high quarterly patient volume achieved
- Adjusted EBITDA increased to $22.1 million from $21.7 million year-over-year
- Total revenue from physical therapy operations grew 8.5% to $143.5 million
- Net rate per patient visit increased 3.0% to $105.05
- Total patient visits increased 5.4% to 1,335,335
- Industrial injury prevention services revenue grew 23.2% to $23.7 million
- Operating Results per share decreased to $0.73 from $0.76 year-over-year due to increased shares outstanding
- Gross profit margin from physical therapy operations decreased to 20.1% from 21.3% year-over-year
- Salaries and related costs per visit increased 3.6% to $59.66
- Operating costs per visit increased 4.8% to $84.46
- Challenging employment environment leading to increased costs in salaries and contract labor
Insights
U.S. Physical Therapy's Q2 2024 results show mixed performance. While revenue growth was solid, with an 8.5% increase in physical therapy operations to
The company's focus on increasing reimbursement rates is paying off, with net rate per patient visit up
Despite challenges, USPH maintained its original Adjusted EBITDA guidance of
USPH's Q2 results highlight both opportunities and challenges in the physical therapy sector. The company achieved an all-time high quarterly patient volume, with average daily visits per clinic reaching 30.6, up from 30.4 year-over-year. This growth, coupled with the addition of 25 net new clinics since last year, demonstrates strong demand for physical therapy services.
However, the industry faces significant staffing challenges. USPH reported higher usage of contract therapists and increased costs for new employees, particularly hourly workers. These issues are likely sector-wide and could pressure margins for physical therapy providers in the near term.
The company's industrial injury prevention segment shows promise, with revenue up
USPH's Q2 results underscore the tight labor market conditions affecting the healthcare sector. The company is experiencing higher costs for new employees, particularly hourly workers, reflecting broader wage pressures in the economy. This trend is likely to persist, potentially impacting profitability across the industry.
The increased use of contract therapists in several markets indicates a shortage of permanent staff, which could lead to higher operational costs and potential quality control issues if not managed carefully. USPH's investment in recruiting processes is a necessary step, but it may take time to yield results in this competitive labor environment.
The company's ability to increase its net rate per patient visit by
Reports All-Time High Quarterly Patient Volume
Management Updates Guidance
FINANCIAL HIGHLIGHTS
-
Adjusted EBITDA (1), a non-Generally Accepted Accounting Principles (“GAAP”) measure, was
$22.1 million $21.7 million -
Operating Results (1), a non-GAAP measure, was
$11.0 million $10.4 million $0.73 $0.76 -
Net income attributable to USPH’s shareholders (“USPH Net Income”), a GAAP measure, was
$7.5 million $0.47 -
Total revenue from physical therapy operations for the 2024 Second Quarter increased
$11.2 million 8.5% , to$143.5 million -
Net rate per patient visit for the 2024 Second Quarter increased to
$105.05 $102.03 3.0% , despite the1.8% Medicare rate reduction in effect for the 2024 Second Quarter. Excluding Medicare, the Company’s net rate increased4.5% in the 2024 Second Quarter as compared to the 2023 Second Quarter. The increase in net rate per patient visit reflects the Company’s strategic priority of increasing reimbursement rates through contract negotiations with commercial and other payors as well as growth in workers compensation as a percent of the Company’s overall mix of business. -
Average daily visits per clinic was at an all-time high of 30.6 for the 2024 Second Quarter compared to 30.4 in the comparable prior year quarter. Total patient visits were 1,335,335 in the 2024 Second Quarter, a
5.4% increase from the 2023 Second Quarter. -
Industrial injury prevention (“IIP”) services revenue was
$23.7 million 23.2% as compared to the 2023 Second Quarter, with an increase in gross profit of27.5% over the same periods. - During the 2024 Second Quarter, the Company added seven new clinics and closed five clinics bringing its total clinic count to 681 as of June 30, 2024, as compared to 656 clinics as of June 30, 2023.
-
On April 30, 2024, one of the Company’s primary IIP businesses, Briotix Health Limited Partnership, acquired
100% of an IIP services business for a purchase price of$24.0 million $11.0 million -
The Company’s Board of Directors declared a quarterly dividend of
$0.44 -
Management updated its guidance for Adjusted EBITDA for 2024, returning guidance to its original range of
$80.0 million $85.0 million
| ____________________________ | ||
| (1) | See pages 12 and 13 of this release for the definition and reconciliation of non-GAAP measures, Adjusted EBITDA and Operating Results, to the most directly comparable GAAP measure. | |
MANAGEMENT’S COMMENTS
Chris Reading, Chief Executive Officer, said, “Physical therapy volumes, net rate and injury prevention growth and profitability were all strong for the quarter and a result of our persistent focus in these areas. While our retention has been good with respect to our team members, the new employees who join our team as a result of turnover are coming in at higher rates. This is especially true of our hourly employees who are more sensitive to escalating prices elsewhere. Additionally, we have a higher than anticipated usage of contract therapists in several markets around the country. We have made significant recent and ongoing investments in people and processes on the recruiting side of our efforts with more work to be done -- especially in these more challenging markets. Our teams are working diligently to optimize our ability to address demand while maintaining a close eye on cost and related expense management.”
2024 SECOND QUARTER VERSUS 2023 SECOND QUARTER
Additional supplemental tables of financial and performance metrics are presented on page 14 of this release.
Physical Therapy Operations |
|||||||||||
For the Three Months Ended |
Variance |
||||||||||
June 30, 2024 |
June 30, 2023 |
$ |
% |
||||||||
(In thousands, except percentages) |
|||||||||||
Revenue related to: |
|||||||||||
Mature Clinics (1) |
$ |
129,349 |
$ |
126,057 |
$ |
3,292 |
|
||||
Clinic additions (2) |
|
10,905 |
|
1,910 |
|
8,995 |
* |
(6) |
|||
Clinics sold or closed (3) |
|
17 |
|
1,313 |
|
(1,296) |
* |
(6) |
|||
Net Patient Revenue |
|
140,271 |
|
129,280 |
|
10,991 |
|
||||
Other (4) |
|
3,215 |
|
2,959 |
|
256 |
|
||||
Total |
|
143,486 |
|
132,239 |
|
11,247 |
|
||||
Operating costs (4) |
|
114,703 |
|
104,017 |
|
10,686 |
|
||||
Gross profit |
$ |
28,783 |
$ |
28,222 |
$ |
561 |
|
||||
Financial and operating metrics (not in thousands): |
|||||||||||
Net rate per patient visit (1) |
$ |
105.05 |
$ |
102.03 |
$ |
3.02 |
|
||||
Patient visits (1) |
|
1,335,335 |
|
1,267,140 |
|
68,195 |
|
||||
Average daily visits per clinic (1) |
|
30.6 |
|
30.4 |
|
0.2 |
|
||||
Gross margin |
|
|
|
|
|||||||
Salaries and related costs per visit, clinics (5) |
$ |
59.66 |
$ |
57.59 |
$ |
2.07 |
|
||||
Operating costs per visit, clinics (5) |
$ |
84.46 |
$ |
80.61 |
$ |
3.85 |
|
||||
|
|||||||||||
(1) See Glossary of Terms - Revenue Metrics for definitions. |
|||||||||||
(2) Includes 21 clinics added during the six months ended June 30, 2024 and 46 clinic added during the year ended December 31, 2023. |
|||||||||||
(3) Includes 11 clinics closed during the six months ended June 30, 2024 and 15 clinics closed during the year ended December 31, 2023. |
|||||||||||
(4) Includes revenues and costs from management contracts. |
|||||||||||
(5) Per visit costs excludes management contract costs. |
|||||||||||
(6) Not meaningful. |
|||||||||||
Net revenue from physical therapy operations increased
Operating costs from physical therapy operations increased
Gross profit from physical therapy operations in the 2024 Second Quarter increased
Industrial Injury Prevention Services |
||||||||||
For the Three Months Ended |
Variance |
|||||||||
June 30, 2024 |
June 30, 2023 |
$ |
% |
|||||||
(In thousands, except percentages) |
||||||||||
Net revenue |
$ |
23,704 |
$ |
19,246 |
$ |
4,458 |
|
|||
Operating costs |
|
18,625 |
|
15,261 |
|
3,364 |
|
|||
Gross profit |
$ |
5,079 |
$ |
3,985 |
$ |
1,094 |
|
|||
Gross margin |
|
|
|
|
||||||
IIP revenues increased
Corporate Office and Other Expenses
Corporate office costs were
Operating income was
Interest expense decreased
Interest income from investing excess cash (primarily proceeds from the secondary offering sale of the Company’s stock completed in May 2023) in a high-yield savings account was
The Company revalued contingent and put-right liabilities related to certain acquisitions and recognized a net expense of
The provision for income taxes was
USPH Net Income and Non-GAAP Measures
Net income attributable to non-controlling interest (temporary and permanent) was
USPH Net Income was
Non-GAAP Adjusted EBITDA was
See pages 12 and 13 of this release for the definition and reconciliation of Adjusted EBITDA and Operating Results to the most directly comparable GAAP measure.
SIX MONTHS ENDED JUNE 30, 2024 VERSUS SIX MONTH ENDED JUNE 30, 2023
Total net revenue for the six months ended June 30, 2024 (“2024 Six Months”) increased
Revenues from physical therapy operations increased
Revenues from IIP increased
Corporate office costs were
Operating income was
Other expenses were
The provision for income tax was
USPH Net Income was
Non-GAAP Adjusted EBITDA decreased
See pages 12 and 13 of this release for the definition and reconciliation of Adjusted EBITDA and Operating Results to the most directly comparable GAAP measure.
For additional information on 2024 Six Months results, please refer to the Company’s Quarterly Report on Form 10-Q which is expected to be filed with the Securities and Exchange Commission on August 14, 2024.
BALANCE SHEET AND CASH FLOW
Total cash and cash equivalents were
RECENT ACQUISITIONS
On April 30, 2024, one of the Company’s primary IIP companies, Briotix Health Limited Partnership, acquired
The Company’s strategy is to continue acquiring multi-clinic outpatient physical therapy practices, to develop outpatient physical therapy clinics as satellites in existing partnerships and to continue acquiring companies that provide industrial injury prevention services.
QUARTERLY DIVIDEND
The Company’s Board of Directors declared a quarterly dividend of
MANAGEMENT UPDATES 2024 EARNINGS GUIDANCE
Management returned its guidance for Adjusted EBITDA for 2024 to its original range of
The annual guidance figures will not be updated unless there is a material development that causes management to believe that Adjusted EBITDA will be significantly outside the given range.
CONFERENCE CALL INFORMATION
FORWARD LOOKING STATEMENTS
This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain forward-looking information relating to the financial condition, results of operations, plans, objectives, future performance and business of our Company. These statements (often using words such as “believes”, “expects”, “intends”, “plans”, “appear”, “should” and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we expect. Included among such statements may be those relating to new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to:
- changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
- the impact of future public health crises and epidemics/pandemics, such as was the case with the novel strain of COVID-19 and its variants;
- revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;
- changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients;
- compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply;
- competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets;
- one of our acquisition agreements contains a put right related to a future purchase of a majority interest in a separate company;
- the impact of future vaccinations and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of operations;
- our debt and financial obligations could adversely affect our financial condition, our ability to obtain future financing and our ability to operate our business;
- changes as the result of government enacted national healthcare reform;
- business and regulatory conditions including federal and state regulations;
- governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs;
- revenue and earnings expectations;
- some of our acquisition agreements contain contingent consideration, the value of which may impact future financial results;
- legal actions, which could subject us to increased operating costs and uninsured liabilities;
- general economic conditions, including but not limited to inflationary and recessionary periods;
-
actual or perceived events involving banking volatility or limited liability, defaults or other adverse developments that affect the
U.S. or international financial systems, may result in market wide liquidity problems which could have a material and adverse impact on our available cash and results of operations; - our business depends on hiring, training, and retaining qualified employees;
- availability and cost of qualified physical therapists;
- competitive environment in the industrial injury prevention services business, which could result in the termination or non-renewal of contractual service arrangements and other adverse financial consequences for that service line;
- our ability to identify and complete acquisitions, and the successful integration of the operations of the acquired businesses;
- impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest (minority interests);
- maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;
- a security breach of our or our third-party vendors’ information technology systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act, or may interfere with our ability to file and process claims for payment which could interfere with our collection of revenues from third party payors;
- enforcing our noncompetition covenants;
- maintaining clients for which we perform management, industrial injury prevention related services, and other services, as a breach or termination of those contractual arrangements by such clients could cause operating results to be less than expected;
- maintaining adequate internal controls;
- maintaining necessary insurance coverage;
- availability, terms, and use of capital; and
- weather and other seasonal factors.
Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. For additional information regarding these and other risks and uncertainties, that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024 and any risk factors contained in subsequent quarterly and annual reports we file with the SEC. Our forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
GLOSSARY OF TERMS – REVENUE METRICS
Mature clinics are clinics opened or acquired prior to January 1, 2023, and are still operating as of the balance sheet date.
Net rate per patient visit is net patient revenue related to our physical therapy operations divided by total number of patient visits (defined below) during the periods presented.
Patient visits is the number of unique patient visits during the periods presented.
Average daily visits per clinic is patient visits divided by the number of days in which normal business operations were conducted during the periods presented and further divided by the average number of clinics in operation during the periods presented.
ABOUT U.S. PHYSICAL THERAPY, INC.
Founded in 1990, U.S. Physical Therapy, Inc. currently operates 680 outpatient physical therapy clinics in 42 states. The Company’s clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically related injuries and rehabilitation of injured workers. In addition to owning and operating clinics, the Company manages 41 physical therapy facilities for unaffiliated third parties, including hospitals and physician groups. The Company also has an industrial injury prevention services business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.
More information about U.S. Physical Therapy, Inc. is available at www.usph.com. The information included on that website is not incorporated into this press release.
U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|||||
|
|
|
|
|
|
||||||
Net patient revenue |
$ |
140,271 |
$ |
129,280 |
$ |
271,346 |
$ |
255,861 |
|||
Other revenue |
|
26,919 |
|
22,205 |
|
51,519 |
|
44,133 |
|||
Net revenue |
|
167,190 |
|
151,485 |
|
322,865 |
|
299,994 |
|||
Operating cost: |
|||||||||||
Salaries and related costs |
|
96,334 |
|
86,871 |
|
190,065 |
|
172,911 |
|||
Rent, supplies, contract labor and other |
|
35,277 |
|
30,844 |
|
67,193 |
|
60,944 |
|||
Provision for credit losses |
|
1,717 |
|
1,563 |
|
3,344 |
|
3,075 |
|||
Total operating cost |
|
133,328 |
|
119,278 |
|
260,602 |
|
236,930 |
|||
Gross profit |
|
33,862 |
|
32,207 |
|
62,263 |
|
63,064 |
|||
Corporate office costs |
|
14,249 |
|
12,145 |
|
28,334 |
|
26,004 |
|||
Operating income |
|
19,613 |
|
20,062 |
|
33,929 |
|
37,060 |
|||
Other income (expense): |
|||||||||||
Interest expense, debt and other |
|
(1,980) |
|
(2,633) |
|
(3,948) |
|
(5,193) |
|||
Interest income from investments |
|
1,074 |
|
517 |
|
2,617 |
|
517 |
|||
Change in fair value of contingent earn-out consideration |
|
(4,046) |
|
708 |
|
(3,434) |
|
10 |
|||
Change in revaluation of put-right liability |
|
(223) |
|
(50) |
|
(303) |
|
(199) |
|||
Equity in earnings of unconsolidated affiliate |
|
248 |
|
326 |
|
519 |
|
600 |
|||
Relief Funds |
|
- |
|
- |
|
- |
|
467 |
|||
Other |
|
109 |
|
165 |
|
171 |
|
229 |
|||
Total other income (expense) |
|
(4,818) |
|
(967) |
|
(4,378) |
|
(3,569) |
|||
Income before taxes |
|
14,795 |
|
19,095 |
|
29,551 |
|
33,491 |
|||
Provision for income taxes |
|
3,083 |
|
4,231 |
|
6,222 |
|
7,200 |
|||
Net income |
|
11,712 |
|
14,864 |
|
23,329 |
|
26,291 |
|||
Less: Net income attributable to non-controlling interest: |
|||||||||||
Redeemable non-controlling interest - temporary equity |
|
(3,314) |
|
(2,920) |
|
(5,541) |
|
(5,640) |
|||
Non-controlling interest - permanent equity |
|
(892) |
|
(1,025) |
|
(2,236) |
|
(2,322) |
|||
|
(4,206) |
|
(3,945) |
|
(7,777) |
|
(7,962) |
||||
Net income attributable to USPH shareholders |
$ |
7,506 |
$ |
10,919 |
$ |
15,552 |
$ |
18,329 |
|||
Basic and diluted earnings per share attributable to USPH shareholders (1) |
$ |
0.47 |
$ |
0.64 |
$ |
0.93 |
$ |
1.22 |
|||
Shares used in computation - basic and diluted |
|
15,072 |
|
13,720 |
|
15,044 |
|
13,375 |
|||
Dividends declared per common share |
$ |
0.44 |
$ |
0.43 |
$ |
0.88 |
$ |
0.86 |
|||
(1) See page 13 of this press release for the calculation of basic and diluted earnings per share. |
|||||||||||
U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS) |
|||||||||||
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||
|
June 30, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
|||||||
|
|||||||||||
Net income |
$ |
11,712 |
$ |
14,864 |
$ |
23,329 |
$ |
26,291 |
|||
Other comprehensive (loss) gain: |
|||||||||||
Unrealized (loss) gain on cash flow hedge |
|
(31) |
|
2,881 |
|
1,750 |
|
1,064 |
|||
Tax effect at statutory rate (federal and state) |
|
8 |
|
(736) |
|
(447) |
|
(272) |
|||
Comprehensive income |
$ |
11,689 |
$ |
17,009 |
$ |
24,632 |
$ |
27,083 |
|||
|
|||||||||||
Comprehensive income attributable to non-controlling interest |
|
(4,206) |
|
(3,945) |
|
(7,777) |
|
(7,962) |
|||
Comprehensive income attributable to USPH shareholders |
$ |
7,483 |
$ |
13,064 |
$ |
16,855 |
$ |
19,121 |
|||
|
|
|
|
|
|
|
|
||||
U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) |
|||||
June 30, 2024 |
|
December 31, 2023 |
|||
ASSETS |
(unaudited) |
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
112,911 |
$ |
152,825 |
|
Patient accounts receivable, less provision for credit losses of |
|
54,659 |
|
51,866 |
|
Accounts receivable - other |
|
21,669 |
|
17,854 |
|
Other current assets |
|
12,438 |
|
10,830 |
|
Total current assets |
|
201,677 |
|
233,375 |
|
Fixed assets: |
|||||
Furniture and equipment |
|
65,775 |
|
63,982 |
|
Leasehold improvements |
|
48,730 |
|
46,941 |
|
Fixed assets, gross |
|
114,505 |
|
110,923 |
|
Less accumulated depreciation and amortization |
|
(88,277) |
|
(84,821) |
|
Fixed assets, net |
|
26,228 |
|
26,102 |
|
Operating lease right-of-use assets |
|
105,484 |
|
103,431 |
|
Investment in unconsolidated affiliate |
|
12,243 |
|
12,256 |
|
Goodwill |
|
548,970 |
|
509,571 |
|
Other identifiable intangible assets, net |
|
123,903 |
|
109,682 |
|
Other assets |
|
4,629 |
|
2,821 |
|
Total assets |
$ |
1,023,134 |
$ |
997,238 |
|
|
|||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST |
|||||
Current liabilities: |
|||||
Accounts payable - trade |
$ |
4,100 |
$ |
3,898 |
|
Accrued expenses |
|
58,056 |
|
55,344 |
|
Current portion of operating lease liabilities |
|
35,243 |
|
35,252 |
|
Current portion of term loan and notes payable |
|
9,700 |
|
7,691 |
|
Total current liabilities |
|
107,099 |
|
102,185 |
|
Notes payable, net of current portion |
|
1,511 |
|
1,289 |
|
Term loan, net of current portion and deferred financing costs |
|
134,188 |
|
137,702 |
|
Deferred taxes |
|
26,531 |
|
24,815 |
|
Operating lease liabilities, net of current portion |
|
78,329 |
|
76,653 |
|
Other long-term liabilities |
|
5,507 |
|
2,356 |
|
Total liabilities |
|
353,165 |
|
345,000 |
|
|
|||||
Redeemable non-controlling interest - temporary equity |
|
184,354 |
|
174,828 |
|
|
|||||
Commitments and Contingencies |
|||||
|
|||||
U.S. Physical Therapy, Inc. ("USPH") shareholders’ equity: |
|||||
Preferred stock, |
|
- |
|
- |
|
Common stock, |
|||||
17,291,366 and 17,202,291 shares issued, respectively |
|
172 |
|
172 |
|
Additional paid-in capital |
|
285,462 |
|
281,096 |
|
Accumulated other comprehensive gain |
|
4,084 |
|
2,782 |
|
Retained earnings |
|
226,482 |
|
223,772 |
|
Treasury stock at cost, 2,214,737 shares |
|
(31,628) |
|
(31,628) |
|
Total USPH shareholders’ equity |
|
484,572 |
|
476,194 |
|
Non-controlling interest - permanent equity |
|
1,043 |
|
1,216 |
|
Total USPH shareholders' equity and non-controlling interest - permanent equity |
|
485,615 |
|
477,410 |
|
Total liabilities, redeemable non-controlling interest, |
|||||
USPH shareholders' equity and non-controlling interest - permanent equity |
$ |
1,023,134 |
$ |
997,238 |
|
U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) |
|||||
|
For the Six Months Ended |
||||
|
June 30, 2024 |
|
June 30, 2023 |
||
OPERATING ACTIVITIES |
|
|
|
||
Net income including non-controlling interest |
$ |
23,329 |
|
$ |
26,291 |
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: |
|
||||
Depreciation and amortization |
|
8,609 |
|
|
7,615 |
Provision for credit losses |
|
3,344 |
|
|
3,075 |
Equity-based awards compensation expense |
|
3,916 |
|
|
3,592 |
Amortization of debt issue costs |
|
210 |
|
|
210 |
Change in deferred income taxes |
|
770 |
|
|
1,799 |
Change in revaluation of put-right liability |
|
303 |
|
|
199 |
Change in fair value of contingent earn-out consideration |
|
3,434 |
|
|
(10) |
Equity of earnings in unconsolidated affiliate |
|
(519) |
|
|
(600) |
Loss on sale of fixed assets |
|
51 |
|
|
63 |
Changes in operating assets and liabilities: |
|
||||
Increase in patient accounts receivable |
|
(5,110) |
|
|
(5,341) |
Increase in accounts receivable - other |
|
(2,351) |
|
|
(85) |
(Increase) decrease in other current and long term assets |
|
(1,642) |
|
|
593 |
(Decrease) increase in accounts payable and accrued expenses |
|
(1,481) |
|
|
1,125 |
Increase in other long-term liabilities |
|
548 |
|
|
253 |
Net cash provided by operating activities |
|
33,411 |
|
|
38,779 |
|
|
||||
INVESTING ACTIVITIES |
|
||||
Purchase of fixed assets |
|
(4,174) |
|
|
(4,523) |
Purchase of majority interest in businesses, net of cash acquired |
|
(38,695) |
|
|
(8,040) |
Purchase of redeemable non-controlling interest, temporary equity |
|
(6,230) |
|
|
(7,804) |
Purchase of non controlling interest, permanent equity |
|
(527) |
|
|
(39) |
Proceeds on sale of non-controlling interest, permanent equity |
|
26 |
|
|
- |
Proceeds on sale of partnership interest - redeemable non-controlling interest |
|
69 |
|
|
237 |
Distributions from unconsolidated affiliate |
|
532 |
|
|
502 |
Proceeds on sale of fixed assets |
|
- |
|
|
7 |
Other |
|
244 |
|
|
- |
Net cash used in investing activities |
|
(48,755) |
|
|
(19,660) |
|
|
||||
FINANCING ACTIVITIES |
|
||||
Proceeds from revolving facility |
|
- |
|
|
24,000 |
Proceeds from issuance of common stock pursuant to the secondary public offering, net of issuance costs |
|
- |
|
|
163,655 |
Distributions to non-controlling interest, permanent and temporary equity |
|
(8,318) |
|
|
(8,431) |
Cash dividends paid to shareholders |
|
(13,264) |
|
|
(11,238) |
Principal payments on notes payable |
|
(1,113) |
|
|
(1,086) |
Payments on term loan |
|
(1,875) |
|
|
(1,875) |
Payments on revolving facility |
|
- |
|
|
(55,000) |
Net cash (used in) provided by financing activities |
|
(24,570) |
|
|
110,025 |
|
|
||||
Net (decrease) increase in cash and cash equivalents |
|
(39,914) |
|
|
129,144 |
Cash and cash equivalents - beginning of period |
|
152,825 |
|
|
31,594 |
Cash and cash equivalents - end of period |
$ |
112,911 |
|
$ |
160,738 |
|
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
||||
Cash paid during the period for: |
|
||||
Income taxes |
$ |
4,932 |
|
$ |
1,241 |
Interest paid |
|
3,708 |
|
|
4,011 |
Non-cash investing and financing transactions during the period: |
|
||||
Purchase of interest in businesses - seller financing portion |
|
955 |
|
|
360 |
Deferred payments related to purchase of interest in business |
|
- |
|
|
180 |
Fair market value of initial contingent consideration related to purchase of interest of businesses |
|
2,800 |
|
|
200 |
Offset of notes receivable associated with purchase of redeemable non-controlling interest |
|
75 |
|
|
- |
Notes payable related to purchase of non-controlling interest, temporary equity |
|
22 |
|
|
- |
Notes payable related to purchase of redeemable non-controlling interest, temporary equity |
|
- |
|
|
621 |
Notes receivable related to sale of redeemable non-controlling interest, temporary equity |
|
402 |
|
|
2,687 |
Notes receivable related to the sale of non-controlling interest, permanent equity |
|
243 |
|
|
- |
Dividends paid to USPH shareholders |
$ |
13,264 |
|
$ |
11,238 |
U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
ADJUSTED EBITDA AND OPERATING RESULTS
The following tables provide details of the basic and diluted earnings per share computation and reconcile net income attributable to USPH shareholders calculated in accordance with GAAP to Adjusted EBITDA and Operating Results (non-GAAP measures). Management believes providing Adjusted EBITDA and Operating Results to investors is useful information for comparing the Company's period-to-period results as well as for comparing with other similar businesses since most do not have redeemable instruments and therefore have different equity structures. Management uses Adjusted EBITDA and Operating Results, which eliminate certain items described above that can be subject to volatility and unusual costs, as the principal measures to evaluate and monitor financial performance period over period.
Adjusted EBITDA, a non-GAAP measure, is defined as net income attributable to USPH shareholders before interest income, interest expense, taxes, depreciation, amortization, change in fair value of contingent earn-out consideration, Relief Funds, changes in revaluation of put-right liability, equity-based awards compensation expense, clinic closure costs, other income and related portions for non-controlling interests.
Operating Results, a non-GAAP measure, equals net income attributable to USPH shareholders less, changes in revaluation of a put-right liability, Relief Funds, clinic closure costs, changes in fair value of contingent earn-out consideration, and any allocations to non-controlling interests, all net of taxes. Operating Results per share also excludes the impact of the revaluation of redeemable non-controlling interest and the associated tax impact.
Adjusted EBITDA and Operating Results are not measures of financial performance under GAAP. Adjusted EBITDA and Operating Results should not be considered in isolation or as an alternative to, or substitute for, net income attributable to USPH shareholders presented in the consolidated financial statements.
U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES ADJUSTED EBITDA, OPERATING RESULTS AND EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) |
|||||||||||
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||
(In thousands, except per share data) |
|||||||||||
Adjusted EBITDA (a non-GAAP measure) |
|
|
|
|
|
|
|
||||
Net income attributable to USPH shareholders |
$ |
7,506 |
$ |
10,919 |
$ |
15,552 |
$ |
18,329 |
|||
Adjustments: |
|||||||||||
Provision for income taxes |
|
3,083 |
|
4,231 |
|
6,222 |
|
7,200 |
|||
Depreciation and amortization |
|
4,514 |
|
3,827 |
|
8,609 |
|
7,615 |
|||
Interest expense, debt and other, net |
|
1,980 |
|
2,633 |
|
3,948 |
|
5,193 |
|||
Equity-based awards compensation expense |
|
1,919 |
|
1,786 |
|
3,916 |
|
3,592 |
|||
Interest income from investments |
|
(1,074) |
|
(517) |
|
(2,617) |
|
(517) |
|||
Change in revaluation of put-right liability |
|
223 |
|
50 |
|
303 |
|
199 |
|||
Change in fair value of contingent earn-out consideration |
|
4,046 |
|
(708) |
|
3,434 |
|
(10) |
|||
Relief Funds |
|
- |
|
- |
|
- |
|
(467) |
|||
Closure costs |
|
551 |
|
- |
|
677 |
|
- |
|||
Other income |
|
(109) |
|
(165) |
|
(171) |
|
(229) |
|||
Allocation to non-controlling interests |
|
(515) |
|
(389) |
|
(978) |
|
(761) |
|||
$ |
22,124 |
$ |
21,667 |
$ |
38,895 |
$ |
40,144 |
||||
Operating Results (a non-GAAP measure) |
|||||||||||
Net income attributable to USPH shareholders |
$ |
7,506 |
$ |
10,919 |
$ |
15,552 |
$ |
18,329 |
|||
Adjustments: |
|||||||||||
Change in fair value of contingent earn-out consideration |
|
4,046 |
|
(708) |
|
3,434 |
|
(10) |
|||
Change in revaluation of put-right liability |
|
223 |
|
50 |
|
303 |
|
199 |
|||
Closure costs |
|
551 |
|
- |
|
677 |
|
- |
|||
Relief Funds |
|
- |
|
- |
|
- |
|
(467) |
|||
Allocation to non-controlling interests |
|
(68) |
|
- |
|
(84) |
|
33 |
|||
Tax effect at statutory rate (federal and state) |
|
(1,214) |
|
168 |
|
(1,106) |
|
63 |
|||
$ |
11,044 |
$ |
10,429 |
$ |
18,776 |
$ |
18,147 |
||||
Operating Results per share (a non-GAAP measure) |
$ |
0.73 |
$ |
0.76 |
$ |
1.25 |
$ |
1.36 |
|||
Earnings per share |
|||||||||||
Computation of earnings per share - USPH shareholders: |
|||||||||||
Net income attributable to USPH shareholders |
$ |
7,506 |
$ |
10,919 |
$ |
15,552 |
$ |
18,329 |
|||
Charges to retained earnings: |
|||||||||||
Revaluation of redeemable non-controlling interest |
|
(622) |
|
(2,865) |
|
(2,061) |
|
(2,746) |
|||
Tax effect at statutory rate (federal and state) |
|
159 |
|
732 |
|
527 |
|
700 |
|||
$ |
7,043 |
$ |
8,786 |
$ |
14,018 |
$ |
16,283 |
||||
Earnings per share (basic and diluted) |
$ |
0.47 |
$ |
0.64 |
$ |
0.93 |
$ |
1.22 |
|||
Shares used in computation - basic and diluted |
|
15,072 |
|
13,720 |
|
15,044 |
|
13,375 |
|||
U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL AND PERFORMANCE METRICS
Revenue Metrics |
|||||||||||||||
Number of Clinics |
Net Rate Per Patient Visit (1) |
Patient Visits (1) |
Average Daily Visits Per Clinic (1) |
||||||||||||
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
||||||||
First Quarter |
679 |
647 |
|
|
|
|
1,268,002 |
|
1,227,490 |
29.5 |
29.8 |
||||
Second quarter |
681 |
656 |
|
|
|
|
1,335,335 |
|
1,267,140 |
30.6 |
30.4 |
||||
Third quarter |
672 |
|
|
|
|
|
|
1,242,954 |
|
29.7 |
|||||
Fourth quarter |
671 |
|
|
|
|
|
|
1,267,842 |
|
29.9 |
|||||
Year |
|
|
671 |
|
|
|
|
|
|
|
5,005,426 |
|
|
|
30.0 |
(1) See definition of the metrics above in the Glossary of Terms – Revenue Metrics on page 7. |
|||||||||||||||
Clinic Count Roll Forward |
|||||||
For the Three Months Ended |
For the Six Months Ended |
||||||
June 30, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
||||
Number of clinics, beginning of period |
679 |
647 |
671 |
640 |
|||
Additions (1) |
7 |
13 |
21 |
21 |
|||
Closed or sold |
(5) |
(4) |
(11) |
(5) |
|||
Number of clinics, end of period |
681 |
656 |
681 |
656 |
|||
| (1) Includes clinics added through acquisitions. | |||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813703313/en/
U.S. Physical Therapy, Inc.
Carey Hendrickson, Chief Financial Officer
email: chendrickson@usph.com
Chris Reading, Chief Executive Officer
(713) 297-7000
Three Part Advisors
Joe Noyons
(817) 778-8424
Source: U.S. Physical Therapy, Inc.
FAQ
What was U.S. Physical Therapy's (USPH) Adjusted EBITDA for Q2 2024?
How much did USPH's total revenue from physical therapy operations grow in Q2 2024?
What was the net rate per patient visit for USPH in Q2 2024?
How did USPH's industrial injury prevention services revenue perform in Q2 2024?
What is USPH's updated Adjusted EBITDA guidance for 2024?
