Declares Quarterly Dividend
U.S. Physical Therapy, Inc. ("USPH" or the “Company”) (NYSE:
USPH), a national operator of outpatient physical therapy clinics
and provider of industrial injury prevention (“IIP”) services,
today reported results for the first quarter ended March 31, 2022
(“2022 First Quarter”).
HIGHLIGHTS
- Operating Results per diluted share, a non-GAAP measure
(defined below), was $0.65 per diluted share for the 2022 First
Quarter as compared to $0.64 for the three months ended March 31,
2021 (“2021 First Quarter”).
- For the 2022 First Quarter, USPH’s net income attributable to
its shareholders, a Generally Accepted Accounting Principles
(“GAAP”) measure, was $8.8 million compared to $8.2 million for the
2021 First Quarter. GAAP requires the Company to include a charge
for the revaluation of its non-controlling interest, net of taxes,
in its computation of earnings per diluted share. Earnings per
diluted share on a GAAP basis, was $0.67 for the 2022 First Quarter
as compared to $0.21 for the 2021 First Quarter.
- Adjusted EBITDA, a non-GAAP measure (defined below), was $17.9
million for the 2022 First Quarter, a 14.2% increase from $15.6
million for the 2021 First Quarter. See pages 10 through 11 for a
discussion and reconciliation to results according to GAAP.
- Average visits per clinic per day in the 2022 First Quarter was
27.9, up from 27.1 in the 2021 First Quarter.
- Total patient visits were 1,063,519 for the 2022 First Quarter,
an increase of 12.2% from 947,788 for the 2021 First Quarter. On a
same store basis, visits increased 5.9% in the 2022 First Quarter
as compared to the 2021 First Quarter.
- The net rate per patient visit was $103.00 in the 2022 First
Quarter as compared to $104.72 in the 2021 First Quarter due to
rate reductions implemented by Medicare in 2022.
- Net patient revenue from physical therapy operations was $109.5
million for the 2022 First Quarter, an increase of 10.4% from $99.3
million for the 2021 First Quarter.
- Industrial injury prevention (“IIP”) services revenue was an
all-time high of $19.1 million for the 2022 First Quarter,
representing a 90.5% increase over the 2021 First Quarter.
Excluding $6.8 million of revenue related to the November 2021 IIP
acquisition, IIP services revenue increased 22.4% period over
period.
- Total revenue of $131.7 million for the 2022 First Quarter was
17.2% higher than total revenue of $112.4 million for the 2021
First Quarter.
- Physical therapy operating costs were $83.09 per visit in the
2022 First Quarter as compared to $81.18 in the 2021 First Quarter,
an increase of 2.4%. On a same store basis, physical therapy
operating costs per visit increased 0.4% to $81.08 in the 2022
First Quarter from $80.78 in the 2021 First Quarter.
- Total operating cost was 79.8% of total revenue in the 2022
First Quarter, as compared to 77.0% for the 2021 First Quarter.
Total salaries and related costs were 57.1% of total revenue for
the 2022 First Quarter versus 56.8% for the 2021 First
Quarter.
- On March 31, 2022, the Company acquired 70.0% of the equity
interest in a six-clinic physical therapy practice in South Central
Pennsylvania (Madden & Gilbert Physical Therapy, LLC). The
business generates more than $7.5 million in annual revenue and has
approximately 71,000 patient visits per year.
- The Company’s Board of Directors declared a quarterly dividend
of $0.41 per share payable on June 14, 2022 to shareholders of
record on May 16, 2022.
SUMMARY OF FIRST QUARTER
RESULTS
For the 2022 First Quarter, the Company’s net income
attributable to its shareholders was $8.8 million as compared to
$8.2 million for the 2021 First Quarter. In accordance with GAAP,
the revaluation of redeemable non-controlling interest, net of
taxes, is not included in net income but charged directly to
retained earnings; however, the charge for this change is included
in the earnings per basic and diluted share calculation. Inclusive
of the charge for revaluation of non-controlling interest, net of
taxes, the amount is $8.7 million, or $0.67 per diluted share, for
the 2022 First Quarter, and $2.8 million, or $0.21 per diluted
share, for the 2021 First Quarter.
For the 2022 First Quarter, the Company’s Operating Results, a
non-GAAP measure, was $8.4 million, or $0.65 per diluted share, an
increase of 2.2%, as compared to $8.2 million, or $0.64 per diluted
share, for the 2021 First Quarter. See table on page 11.
First Quarter 2022 Compared to First
Quarter 2021
- Reported total revenue for the 2022 First Quarter was $131.7
million, an increase of 17.2% as compared to $112.4 million for the
2021 First Quarter. See table below for a detail of reported total
revenue (in thousands):
Three Months Ended
March 31, 2022
March 31, 2021
Revenue related to Mature Clinics
$
102,321
$
98,649
Revenue related to 2022 Clinic
Additions
195
-
Revenue related to 2021 Clinic
Additions
6,823
149
Revenue from clinics sold or closed in
2022
199
190
Revenue from clinics sold or closed in
2021
-
266
Net patient revenue from physical therapy
operations
109,538
99,254
Other revenue
872
546
Revenue from physical therapy
operations
110,410
99,800
Revenue from management contracts
2,226
2,559
Revenue from industrial injury prevention
services
19,068
10,009
Total Revenue
$
131,704
$
112,368
- Revenue from physical therapy operations increased $10.6
million, or 10.6%, to $110.4 million for the 2022 First Quarter
from $99.8 million for the 2021 First Quarter. Net patient revenue
related to clinics opened or acquired prior to 2021 and still in
operation at March 31, 2022 (“Mature Clinics”) increased $3.7
million, or 3.7%, to $102.3 million for the 2022 First Quarter
compared to $98.6 million for the 2021 First Quarter.
- The average net patient revenue per visit was $103.00 for the
2022 First Quarter as compared to $104.72 for the 2021 First
Quarter. Total patient visits increased 12.2% to 1,063,519 for the
2022 First Quarter from 947,788 for the 2021 First Quarter. Visits
for Mature Clinics (same store) for the 2022 First Quarter
increased 5.9% as compared to the 2021 First Quarter.
- Management contract revenue decreased 13.0% to $2.2 million for
the 2022 First Quarter as compared to $2.6 million for the 2021
First Quarter.
- IIP services revenue increased 90.5% to $19.1 million for the
2022 First Quarter as compared to $10.0 million for the 2021 First
Quarter. Excluding $6.8 million of revenue related to the IIP
acquisition in November 2021, IIP services revenue increased 22.4%
in the 2022 First Quarter as compared to the 2021 First
Quarter
- Total operating cost was $105.1 million for the 2022 First
Quarter, or 79.8% of total revenue, as compared to $86.5 million,
or 77.0% of total revenue, for the 2021 First Quarter. Operating
cost related to Mature Clinics increased by $4.8 million for the
2022 First Quarter compared to the 2021 First Quarter. On a per
visit basis, operating cost related to Mature Clinics increased
0.4% from $80.78 in the 2021 First Quarter to $81.08 in the 2022
First Quarter. In addition, operating cost related to the
industrial injury prevention services business increased by $7.6
million of which $5.6 million related to the recent IIP
acquisition. See table below for a detail of operating cost (in
thousands):
Three Months Ended
March 31, 2022
March 31, 2021
Operating cost related to Mature
Clinics
$
81,034
$
76,221
Operating cost related to 2022 Clinic
Additions
840
-
Operating cost related to 2021 Clinic
Additions
6,209
136
Operating cost related to clinics sold or
closed in 2022
286
249
Operating cost related to clinics sold or
closed in 2021
-
334
Operating cost related to physical therapy
operations
88,369
76,940
Operating cost related to management
contracts
1,831
2,245
Operating cost related to industrial
injury prevention services
14,916
7,287
Total operating cost
$
105,116
$
86,472
- Total salaries and related costs, including all operations,
were 57.1% of total revenue for the 2022 First Quarter versus 56.8%
for the 2021 First Quarter. Rent, supplies, contract labor and
other costs as a percentage of total revenue were 21.8% for the
2022 First Quarter versus 19.1% for the 2021 First Quarter. The
provision for credit losses as a percentage of total revenue was
1.0% for 2022 First Quarter and 1.1% for 2021 First Quarter.
- Gross profit for the 2022 First Quarter, was $26.6 million, an
increase of $0.7 million, or approximately 2.7%, as compared to
$25.9 million for the 2021 First Quarter. The gross profit
percentage was 20.2% of total revenue for the 2022 First Quarter as
compared to 23.0% for the 2021 First Quarter. The gross profit
percentage for the Company’s physical therapy operations was 20.0%
for the 2022 First Quarter as compared to 22.9% for the 2021 First
Quarter. The gross profit percentage on management contracts was
17.7% for the 2022 First Quarter as compared to 12.3% for the 2021
First Quarter. The gross profit percentage for industrial injury
prevention services was 21.8% for the 2022 First Quarter as
compared to 27.2% for the 2021 First Quarter. The table below
details the gross profit (in thousands):
Three Months Ended
March 31, 2022
March 31, 2021
Physical therapy operations
$
22,041
$
22,860
Management contracts
395
314
Industrial injury prevention services
4,152
2,722
Gross profit
$
26,588
$
25,896
- Corporate office costs were $11.6 million for the 2022 First
Quarter compared to $10.9 million for the 2021 First Quarter.
Corporate office costs were 8.8% of total revenue for the 2022
First Quarter as compared to 9.7% for the 2021 First Quarter.
- Operating income for the 2022 First Quarter and 2021 First
Quarter was $15.0 million. Operating income as a percentage of
total revenue was 11.4% for the 2022 First Quarter as compared to
13.4% for the 2021 First Quarter.
- The gain on revaluation of put-right liability was $603,000. As
part of the IIP business acquisition on November 30, 2021, the
Company also agreed to the potential future purchase of a separate
company under the same ownership that provides physical therapy and
rehabilitation services to hospitals and other ancillary providers
in a distinct market area. The owners have the right to put this
transaction to the Company in approximately five years, with such
right having a $2.9 million value at March 31, 2022, as reflected
on the Company’s consolidated balance sheet in Other long-term
liabilities. The value of this right will continue to be adjusted
in future periods, as appropriate.
- The provision for income tax was $3.5 million for the 2022
First Quarter and $2.9 million for the 2021 First Quarter. The
provision for income tax as a percentage of income before taxes
less net income attributable to non-controlling interest (effective
tax rate) was 28.6% for the 2022 First Quarter and 26.5% for the
2021 First Quarter. See table below ($ in thousands):
Three Months Ended
March 31, 2022
March 31, 2021
Income before taxes
$
15,480
$
14,830
Less: net income attributable to
non-controlling interest:
Redeemable non-controlling interest -
temporary equity
(2,557
)
(2,453
)
Non-controlling interest - permanent
equity
(626
)
(1,260
)
$
(3,183
)
$
(3,713
)
Income before taxes less net income
attributable to non-controlling interest
$
12,297
$
11,117
Provision for income taxes
$
3,498
$
2,944
Percentage
28.4
%
26.5
%
- Net income attributable to redeemable non-controlling interest
(temporary equity) was $2.6 million for the 2022 First Quarter and
$2.5 million for the 2021 First Quarter. Net income attributable to
non-controlling interest (permanent equity) was $0.6 million for
the 2022 First Quarter and $1.3 million for the 2021 First
Quarter.
Other Financial Measures
For the 2022 First Quarter, the Company’s Adjusted EBITDA, a
non-GAAP measure, was $17.9 million, an increase of 14.2% from
$15.6 million in the 2021 First Quarter. See definition,
explanation and calculation of Adjusted EBITDA, a non-GAAP measure,
in the schedule on pages 10 through 11.
Medicare Accelerated and Advance
Payment Program (“MAAPP Funds”)
On March 27, 2020, in response to the COVID-19 pandemic, the
federal government approved the Coronavirus Aid, Relief, and
Economic Security Act (“CARES Act”). The CARES Act provided
waivers, reimbursement, grants and other funds to assist health
care providers during the COVID-19 pandemic, including $100.0
billion in appropriations for the Public Health and Social Services
Emergency Fund, also referred to as the Provider Relief Fund, to be
used for preventing, preparing, and responding to the coronavirus,
and for reimbursing eligible health care providers for lost
revenues and health care related expenses that are attributable to
COVID-19.
The CARES Act allowed for qualified healthcare providers to
receive advanced payments under the MAAPP Funds during the COVID-19
pandemic. Under this program, healthcare providers could choose to
receive advanced payments for future Medicare services provided.
The Company applied for and received approval from Centers for
Medicare & Medicaid Services (“CMS”) in April 2020. The Company
recorded the $14.1 million in advance payments received as a
liability. During the 2021 First Quarter, the Company repaid the
MAAPP Funds of $14.1 million rather than applying them to future
services performed.
Acquisition in First Quarter
2022
On March 31, 2022, the Company acquired a 70% interest in a
six-clinic physical therapy practice in South Central Pennsylvania
– Madden and Gilbert Physical Therapy, LLC. The practice’s owners
retained 30% of the equity interests. The purchase price for the
70% equity interest was approximately $11.5 million. The business
generates more than $7.5 million in annual revenue and has
approximately 71,000 patient visits per year.
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 Board of Directors declared a quarterly dividend of $0.41
per share payable on June 14, 2022, to shareholders of record on
May 16, 2022.
Management’s Comments
Chris Reading, Chief Executive Officer, said, “We finished the
first quarter in strong fashion, despite a slow start, with visits
heavily impacted by Omicron and our highest level ever of
employee-related quarantines. I am very pleased with our same store
volume numbers along with our cost management, with same store
costs up only 0.4% on a per visit basis despite significant pricing
pressure on labor and materials. We made a lot of progress in the
quarter, and I am pleased with where we are as we enter a
traditionally busy season for us. On the acquisition front, we
expect to have another very productive year.”
First Quarter 2022 Conference
Call
U.S. Physical Therapy's management will host a conference call
at 10:30 a.m. Eastern Time, 9:30 a.m. Central Time, on May 5, 2022,
to discuss results for the Company's 2022 First Quarter. Interested
parties may participate in the call by dialing 1-877-830-2598 or
785-424-1062 and entering reservation number USPHQ12022
approximately 10 minutes before the call is scheduled to begin. To
listen to the live call via webcast, go to the Company's website at
www.usph.com at least 15 minutes early to register, download and
install any necessary audio software. The conference call will be
archived and can be accessed until August 5, 2022, at U.S. Physical
Therapy’s website.
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:
- the multiple effects of the impact of public health crises and
epidemics/pandemics, such as the novel strain of COVID-19 and its
variants, for which the total financial magnitude cannot be
currently estimated;
- changes in Medicare rules and guidelines and reimbursement or
failure of our clinics to maintain their Medicare certification
and/or enrollment status;
- 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;
- the impact of COVID-19 related vaccination 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;
- 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;
- legal actions, which could subject us to increased operating
costs and uninsured liabilities;
- general economic conditions;
- availability and cost of qualified physical therapists;
- personnel productivity and retaining key personnel;
- competitive environment in the industrial injury prevention
services business, which could result in the termination or
nonrenewal of contractual service arrangements and other adverse
financial consequences for that service line;
- 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;
- maintaining clients for which we perform management 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.
See Risk Factors in Item 1A of our Annual Report on Form 10-K
for the year ended December 31, 2021.
Many factors are beyond our control. Given these uncertainties,
you should not place undue reliance on our forward-looking
statements. Please see the other sections of this report and our
other periodic reports filed with the Securities and Exchange
Commission (the “SEC”) for more information on these factors. 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,
regardless of the reason the statement may no longer be
accurate.
About U.S. Physical Therapy,
Inc.
Founded in 1990, U.S. Physical Therapy, Inc. operates 601
outpatient physical therapy clinics in 39 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 38 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
CONSOLIDATED STATEMENTS OF
INCOME
(IN THOUSANDS, EXCEPT PER
SHARE DATA)
(unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Net patient revenue
$
109,538
$
99,254
Other revenue
22,166
13,114
Net revenue
131,704
112,368
Operating cost:
Salaries and related costs
75,149
63,815
Rent, supplies, contract labor and
other
28,662
21,457
Provision for credit losses
1,305
1,200
Total operating cost
105,116
86,472
Gross profit
26,588
25,896
Corporate office costs
11,556
10,874
Operating income
15,032
15,022
Other income and expense
Equity in earnings of unconsolidated
affiliate
339
-
Interest and other income, net
46
54
Gain on revaluation of put-right
liability
603
-
Interest expense - debt and other
(540
)
(246
)
Total other income and expense
448
(192
)
Income before taxes
15,480
14,830
Provision for income taxes
3,498
2,944
Net income
11,982
11,886
Less: net income attributable to
non-controlling interest:
Redeemable non-controlling interest -
temporary equity
(2,557
)
(2,453
)
Non-controlling interest - permanent
equity
(626
)
(1,260
)
(3,183
)
(3,713
)
Net income attributable to USPH
shareholders
$
8,799
$
8,173
Basic and diluted earnings per share
attributable to USPH shareholders
$
0.67
$
0.21
Shares used in computation - basic and
diluted
12,937
12,870
Dividends declared per common share
$
0.41
$
0.35
U. S. PHYSICAL THERAPY, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEET
(IN THOUSANDS, EXCEPT PER
SHARE DATA)
March 31, 2022
December 31, 2021
ASSETS
(unaudited)
Current assets:
Cash and cash equivalents
$
24,229
$
28,567
Patient accounts receivable, less
allowance for credit losses of $2,799 and $2,768, respectively
49,335
46,272
Accounts receivable - other
18,239
16,144
Other current assets
4,040
4,183
Total current assets
95,843
95,166
Fixed assets:
Furniture and equipment
60,205
58,743
Leasehold improvements
40,541
39,194
Fixed assets, gross
100,746
97,937
Less accumulated depreciation and
amortization
76,601
74,958
Fixed assets, net
24,145
22,979
Operating lease right-of-use assets
94,243
96,427
Investment in unconsolidated affiliate
12,422
12,215
Goodwill
443,692
434,679
Other identifiable intangible assets,
net
91,546
86,382
Other assets
1,972
1,578
Total assets
$
763,863
$
749,426
LIABILITIES, REDEEMABLE
NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND
NON-CONTROLLING INTEREST
Current liabilities:
Accounts payable - trade
$
3,272
$
3,268
Accounts payable - due to seller of
acquired business
3,203
3,203
Accrued expenses
51,121
45,705
Current portion of operating lease
liabilities
30,625
30,475
Current portion of notes payable
799
830
Total current liabilities
89,020
83,481
Notes payable, net of current portion
4,128
3,587
Revolving line of credit
118,000
114,000
Deferred taxes
16,067
14,385
Operating lease liabilities, net of
current portion
72,162
74,185
Other long-term liabilities
4,262
7,345
Total liabilities
303,639
296,983
Redeemable non-controlling interest -
temporary equity
158,008
155,262
Commitments and Contingencies
U.S. Physical Therapy, Inc. ("USPH")
shareholders’ equity:
Preferred stock, $.01 par value, 500,000
shares authorized, no shares issued and outstanding
-
-
Common stock, $.01 par value, 20,000,000
shares authorized,
15,206,173 and 15,126,160 shares issued,
respectively
151
151
Additional paid-in capital
105,205
102,688
Retained earnings
227,243
224,395
Treasury stock at cost, 2,214,737
shares
(31,628
)
(31,628
)
Total USPH shareholders’ equity
300,971
295,606
Non-controlling interest - permanent
equity
1,245
1,575
Total USPH shareholders' equity and
non-controlling interest - permanent equity
302,216
297,181
Total liabilities, redeemable
non-controlling interest,
USPH shareholders'
equity and non-controlling interest - permanent equity
$
763,863
$
749,426
U. S. PHYSICAL THERAPY, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(IN THOUSANDS, EXCEPT PER
SHARE DATA)
(unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
OPERATING ACTIVITIES
Net income including non-controlling
interest and earnings from unconsolidated affiliates, net
$
11,982
$
11,886
Adjustments to reconcile net income
including non-controlling interest to net cash provided by
operating activities:
Depreciation and amortization
3,824
2,681
Provision for credit losses
1,305
1,200
Equity-based awards compensation
expense
1,846
1,651
Deferred income taxes
2,132
2,181
Gain on revaluation of put-right
liability
(603
)
-
Earnings in unconsolidated affiliate
(339
)
-
Other
93
96
Changes in operating assets and
liabilities:
Increase in patient accounts
receivable
(4,676
)
(4,688
)
(Increase) decrease in accounts receivable
- other
(2,145
)
220
(Increase) decrease in other assets
(735
)
221
Increase in accounts payable and accrued
expenses
1,445
3,969
Decrease in other long-term
liabilities
(2,480
)
(1,743
)
Net cash provided by operating
activities
11,649
17,674
INVESTING ACTIVITIES
Purchase of fixed assets
(2,528
)
(1,608
)
Purchase of majority interest in
businesses, net of cash acquired
(11,242
)
(11,747
)
Purchase of redeemable non-controlling
interest, temporary equity
(2,211
)
Purchase of non-controlling interest,
permanent equity
(99
)
Proceeds on sales of partnership interest,
clinics and fixed assets
4
152
Distributions from unconsolidated
affiliate
132
-
Sales of non-controlling
interest-permanent
-
-
Net cash used in investing activities
(15,944
)
(13,203
)
FINANCING ACTIVITIES
Distributions to non-controlling interest,
permanent and temporary equity
(3,711
)
(5,265
)
Cash dividends paid to shareholders
-
-
Proceeds from revolving line of credit
35,000
60,000
Payments on revolving line of credit
(31,000
)
(60,000
)
Principal payments on notes payable
(332
)
(145
)
(Payment) receipt of Medicare Accelerated
and Advance Funds
-
(14,054
)
Other
-
12
Net cash used in financing activities
(43
)
(19,452
)
Net decrease in cash and cash
equivalents
(4,338
)
(14,981
)
Cash and cash equivalents - beginning of
period
28,567
32,918
Cash and cash equivalents - end of
period
$
24,229
$
17,937
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid during the period for:
Income taxes
$
81
$
62
Interest paid
$
525
$
298
Non-cash investing and financing
transactions during the period:
Purchase of businesses - seller financing
portion
$
300
$
300
Notes payable related to purchase of
redeemable non-controlling interest, temporary equity
$
246
$
4,829
Notes payable due to purchase of
non-controlling interest, permanent equity
$
296
$
-
Notes receivable related to sale of
partnership interest - redeemable non-controlling interest
$
-
$
287
Dividends payable to USPH shareholders
$
5,327
$
4,514
U. S. PHYSICAL THERAPY, INC. AND
SUBSIDIARIES NON-GAAP MEASURES (IN THOUSANDS, EXCEPT
PER SHARE DATA) (unaudited)
The following tables provide detail of the diluted earnings per
share computation and reconcile net income attributable to USPH
shareholders calculated in accordance with GAAP to Operating
Results and Adjusted EBITDA. Management believes providing
Operating Results and Adjusted EBITDA to investors is useful
information for comparing the Company's period-to-period
results.
Operating Results, a non-GAAP measure, equals net income
attributable to USPH shareholders per the consolidated statements
of income less the gain on the revaluation of the put-right
liability. In accordance with GAAP, the revaluation of redeemable
non-controlling interest, net of tax, is included in the earnings
per basic and diluted share calculation, although it is not
included in net income but charged directly to retained
earnings.
Adjusted EBITDA is defined as net income attributable to USPH
shareholders before interest income, interest expense, taxes,
depreciation, amortization, gain on revaluation of put-right
liability and equity-based awards compensation expense. Management
believes reporting Adjusted EBITDA is useful information for
investors in comparing the Company’s period-to-period results as
well as comparing with similar businesses which report adjusted
EBITDA as defined by their company.
Management uses Operating Results and Adjusted EBITDA, which
eliminates certain items described above that can be subject to
volatility and unusual costs, as one the principal measures to
evaluate and monitor financial performance period over period.
Management believes that Operating Results and Adjusted EBITDA is
useful information for investors to use in 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.
Operating Results and Adjusted EBITDA 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
OPERATING RESULTS AND ADJUSTED
EBITDA
2022 PERIODS COMPARED TO 2021
PERIODS
(IN THOUSANDS, EXCEPT PER
SHARE DATA)
(unaudited)
Three Months Ended March
31,
2022
2021
Computation of earnings per share - USPH
shareholders:
Net income attributable to USPH
shareholders
$
8,799
$
8,173
Credit (charges) to retained earnings:
Revaluation of redeemable non-controlling
interest
(153
)
(7,270
)
Tax effect at statutory rate (federal and
state) of 25.55%
39
1,857
$
8,685
$
2,760
Earnings per share (basic and diluted)
$
0.67
$
0.21
Adjustments:
Gain on revaluation of put-right
liability
(603
)
-
Revaluation of redeemable non-controlling
interest
153
7,270
Tax effect at statutory rate (federal and
state)
115
(1,857
)
Operating Results (a non-GAAP measure)
$
8,350
$
8,173
Basic and diluted Operating Results per
share (a non-GAAP measure)
$
0.65
$
0.64
Shares used in computation - basic and
diluted
12,937
12,870
Three Months Ended March
31,
2022
2021
Net income attributable to USPH
shareholders
$
8,799
$
8,173
Adjustments:
Depreciation and amortization
3,824
2,681
Interest income
(46
)
(54
)
Gain on revaluation of put-right
liability
(603
)
-
Interest expense - debt and other
540
247
Provision for income taxes
3,498
2,944
Equity-based awards compensation
expense
1,846
1,651
Adjusted EBITDA (a non-GAAP measure)
$
17,858
$
15,642
U.S. PHYSICAL THERAPY, INC.
AND SUBSIDIARIES
RECAP OF PHYSICAL THERAPY
OPERATIONS
CLINIC COUNT
Date
Number of Clinics
March 31, 2021
564
June 30, 2021
575
September 30, 2021
579
December 31, 2021
591
March 31, 2022
601
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005172/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
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