Houston, TX – U.S. Physical Therapy, Inc. (“USPH” or the “Company”) (NYSE: USPH), a national operator of outpatient physical therapy clinics, recently reported results for the second quarter and six months ended June 30, 2018.
For the quarter ended June 30, 2018, USPH’s Operating Results increased 24.4% to $9.2 million, or $0.73 per diluted share, as compared to $7.4 million, or $0.59 per diluted share, in the second quarter of 2017. For the six months ended June 30, 2018, USPH’s Operating Results increased 17.3% to $16.4 million, or $1.29 per diluted share, as compared to $14.0 million, or $1.11 per diluted share, in the first six months of 2017. Operating Results, a non-generally accepted accounting principles (“non-GAAP”) measure, for the 2018 second quarter and first six months results equal net income attributable to USPH shareholders. For the 2017 second quarter and first six months, Operating Results is defined as net income attributable to USPH shareholders prior to charge for interest expense – mandatorily redeemable non-controlling interests – change in redemption value and charge for cost related to restatement of financials – legal and accounting, both charges net of tax.
For the quarter ended June 30, 2018, USPH’s net income attributable to its shareholders, in accordance with generally accepted accounting principles (“GAAP”), was $9.2 million as compared to $4.9 million for the second quarter of 2017. Earnings per diluted share of $0.48 in the second quarter of 2018 compares to $0.39 per diluted share for the 2017 second quarter. For the six months ended June 30, 2018, USPH’s net income attributable to its shareholders, in accordance with generally accepted accounting principles (“GAAP”), was $16.4 million as compared to $9.8 million for the comparable period of 2017. Earnings per diluted share of $0.74 in the 2018 first six months compares to $0.78 per diluted share for the 2017 first six months. For both periods of 2018, in accordance with current accounting guidance, the revaluation of redeemable non-controlling interest, net of tax, is not included in net income but rather charged directly to retained earnings, but is included in the earnings per basic and diluted share calculation. See the schedule on page 13 for a computation of diluted earnings per share and a reconciliation of net income attributable to USPH shareholders to Operating Results.
Management’s Comments
Chris Reading, Chief Executive Officer, said, “Last year we embarked on making a number of changes in order to create the kind of results we are producing in 2018. I am proud of our partners and their staffs, our regional operations teams and our Houston-based support groups for working together to move market share, get a handle on cost, and to continue our daily focus to make a difference in the lives of our patients. While we have more work to do and continued opportunity to improve, I am encouraged by our performance to date. Additionally and importantly, our industrial injury prevention business has grown significantly over the past year, both organically and through the recent acquisition.”
Larry McAfee, Chief Financial Officer, noted, “The gross margin for the Company’s industrial injury prevention business more than doubled growing from $.7 million in the second quarter of 2017 to $1.5 million in the comparable 2018 period. The gross margin percentage grew from 15.0% to 24.4%.”
Click here for the complete results release: U.S. Physical Therapy Q2 and Six Months 2018 Operating Results (PDF)