Houston, TX – U.S. Physical Therapy, Inc. (NYSE: USPH) recently reported results for the first quarter ended March 31, 2015. U.S. Physical Therapy’s net income attributable to common shareholders prior to revaluation of redeemable non-controlling interests, net of tax (“operating results”) was $4.2 million for the first quarter of 2015 and for the first quarter of 2014. Diluted earnings per share from operating results were $.34 in the recent quarter as compared to $.35 in the comparable 2014 period. As noted in the Company’s press release on March 5, the unusually severe winter weather prevalent in many parts of the country during the first quarter adversely impacted operations. Management estimates that more than 20,000 patient visits were cancelled with an earnings impact of $.07 to $.09 per share.
First Quarter 2015 Compared to First Quarter 2014
- Net revenues increased 10.7% from $69.8 million in the first quarter of 2014 to $77.2 million in the first quarter of 2015, due to an increase in total patient visits of 10.7% from 643,900 to 712,900 and a slight increase in the average net revenue per visit to $106.34 from $106.23. Net revenues from new clinics opened or acquired in the past 12 months was $6.2 million.
- Total clinic operating costs were $60.4 million, or 78.2% of net revenues, in the first quarter of 2015, as compared to $53.1 million, or 76.1% of net revenues, in the 2014 period. The increase was primarily attributable to $5.5 million in operating costs of new clinics opened or acquired in the past 12 months. Total clinic salaries and related costs, including those from new clinics, were 55.7% of net revenues in the recent quarter versus 54.4% in the 2014 period. Rent, clinic supplies, contract labor and other costs as a percentage of net revenues were 21.1% for the recent quarter versus 20.4% in the 2014 period. The provision for doubtful accounts as a percentage of net revenues was 1.3% for the 2015 period and 1.4% in the 2014 period.
- The gross margin for the first quarter of 2015 was $16.8 million or 21.8%, as compared to $16.6 million or 23.9% for the 2014 quarter.
- Corporate office costs were $7.7 million in the first quarter of 2015 compared to $7.1 million in the 2014 first quarter. Corporate office costs were 9.9% of net revenues for the 2015 quarter compared to 10.2% of net revenues for the 2014 quarter.
- Operating income for the recent quarter was $9.2 million compared to $9.5 million in the 2014 first quarter.
- Interest expense was $0.3 million in the first quarter of 2015 and 2014.
- The provision for income taxes for the 2015 period was $2.8 million and for the 2014 period $2.9 million. The provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interest was 40.0% in the 2015 first quarter and 41.0% in the 2014 first quarter.
- Net income attributable to non-controlling interests was $2.0 million in the recent quarter as compared to $2.1 million in the year earlier period.
- Operating results attributable to common shareholders for the three months ended March 31, 2015 and 2014 was consistent at $4.2 million for each period. Diluted earnings per share from operating results were $0.34 for the 2015 period and $0.35 for the 2014 period.
- Same store visits increased 3.8% for de novo and acquired clinics open for one year or more and same store revenue increased 4.2% as the average net rate per visit increased by $.40.
Chris Reading, Chief Executive Officer, said, “This was undoubtedly a difficult quarter from a weather perspective yet there were a number of bright spots including solid same store visit growth, strong referral volume and a couple of acquisitions closed in the early part of this year. I continue to have great confidence in our team and in our collective ability to execute on our plan for 2015.”
Larry McAfee, Chief Financial Officer, noted, “By mid-March, after the winter storms subsided, the Company’s average daily patient visits rose significantly such that we ended the first quarter at a solid run rate. Absent the severe weather, patient visits in the first quarter would have been higher as same store patient referrals increased a strong 4.6%.”
U.S. Physical Therapy Declares Quarterly Dividend
The second quarterly dividend of 2015 for $.15 per share will be paid on June 5 to shareholders of record as of May 18.
The complete results release is available here: U.S. Physical Therapy First Quarter 2015 Results (PDF)
Source: US Physical Therapy