Houston, TX -(BusinessWire)- U.S. Physical Therapy, Inc. (NYSE: USPH), a national operator of outpatient physical therapy clinics, recently reported results for the first quarter ended March 31, 2013.
U.S. Physical Therapy’s net income for the three months ended March 31, 2013 was $3.7 million compared to $4.5 million for the three months ended March 31, 2012. Diluted earnings per share were $0.31 for the 2013 period versus $0.38 for the 2012 period. As per the Company’s March 7, 2013, press release, although patient referrals in the first quarter were as planned, the volume of patient visits was significantly impacted by severe weather and the flu, particularly in January and February in the East and Midwest. In the latter part of February and throughout March, as the weather improved, the average number of patient visits per clinic per day rebounded.
First Quarter 2013 compared to First Quarter 2012
- Net revenues increased slightly from $62,582,000 in the first quarter of 2012 to $63,098,000 in the first quarter of 2013, primarily due to an increase in the average net patient revenue per visit to $106.43 from $104.55 in the comparable 2012 period. As described above, due to severe weather and flu, total patient visits declined slightly to 578,000 for the 2013 period as compared to 579,000 for the 2012 period.
- Total clinic operating costs were $48,440,000, or 76.8% of net revenues, in the first quarter of 2013, as compared to $46,449,000, or 74.2% of net revenues, in the 2012 period. The increase was primarily attributable to $2,819,000 in operating costs of new clinics opened or acquired in the past 12 months offset by a reduction in operating costs of $828,000 for those clinics opened or acquired prior to the past 12 months. Clinic salaries and related costs were 54.5% of net revenues in the recent quarter versus 52.4% in the 2012 period. Rent, clinic supplies, contract labor and other costs as a percentage of net revenues were 20.5% 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 versus 1.8% in the 2012 period.
- Corporate office costs were $6,507,000 in the first quarter of 2013 as compared to $6,262,000 in the 2012 first quarter. Corporate office cost was 10.3% of net revenues in the 2013 period versus 10.0% in 2012.
- Operating income for the first quarter of 2013 was $8,151,000 compared to $9,871,000 in the 2012 first quarter.
- Interest expense was $135,000 in the first quarter of 2013 versus $162,000 in the first quarter of 2012.
- Net income attributable to non-controlling interests was $1,888,000 in the recent quarter as compared to $2,334,000 in the year earlier period.
- The provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interests was 39.3% in both periods.
- Net income for the three months ended March 31, 2013 was $3.7 million compared to $4.5 million for the three months ended March 31, 2012. Diluted earnings per share were $0.31 for the 2013 period versus $0.38 for the 2012 period.
- Same store revenues for de novo and acquired clinics open for one year or more remained relatively flat. While the net rate per visit increased 1.4%, visits for de novo and acquired clinics open for one year or more decreased by 1.7%. Same store revenues and visits were adjusted to reflect the same number of days in each period as the 2013 quarter included 63 days of operations while the 2012 quarter included 64 days. Patient visits for the first quarter of 2013 would have been higher were it not for the effects of severe weather and the flu.
Larry McAfee, Chief Financial Officer, noted, “Because of the multiple storm systems that battered the East and Midwest earlier this year and a worse than normal flu season patient volumes were off in January and February. The Company’s average patient visits per day per clinic improved from 20.1 in January to 22.1 in March. With the increased patient volume, monthly earnings rose from approximately 7 cents per share in January to about 14 cents in March.”
Chris Reading, Chief Executive Officer, said, “After a rough start, thanks to the focused efforts of our partners and our dedicated team, the Company’s operations improved significantly by the end of the quarter. Additionally, we have been able to complete two nice acquisitions so far in 2013 and expect a continued active development program the balance of the year.”
Second Physical Therapy Group Acquisition of 2013
On April 30, 2013, the Company acquired a 50% interest in a five clinic physical therapy practice. The group sees more than 35,000 patient visits per year with annual revenue of approximately $4.2 million.
U.S. Physical Therapy Declares Quarterly Dividend
The second quarterly dividend of 2013 for $.10 per share will be paid on June 7 to shareholders of record as of May 17.
Management Earnings Guidance
U.S. Physical Therapy’s management expects the Company’s earnings for the year 2013 to be in the range of $18.1 million to $18.8 million in net income and $1.51 to $1.56 in diluted earnings per share. This guidance range represents projected earnings from existing operations and excludes future potential acquisitions. The Company does not provide quarterly earnings guidance. The annual guidance figures will not be updated unless there is a material development that causes management to believe that earnings will be significantly outside the given range.
The complete earnings release is available here: U.S. Physical Therapy First Quarter 2013 Results (PDF)