This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

U.S. Physical Therapy Reports 2011 Results, Increases Dividend And Provides 2012 Earnings Guidance

Stocks in this article: USPH

U.S. Physical Therapy, Inc. (NasdaqGS: USPH), a national operator of outpatient physical therapy clinics, today reported results for the fourth quarter and year ended December 31, 2011.

Adjusted net income for the year ended December 31, 2011 increased 11.7% to $16.2 million from $14.5 million in 2010. Adjusted net income per diluted share rose to $1.35 from $1.22. The 2011 result was adjusted for a gain of $4.8 million related to a purchase price settlement of an outpatient physical therapy group. Comparatively, the 2010 result was adjusted for a positive adjustment in the income tax provision of $0.8 million and a gain from the sale of a five clinic joint venture of approximately $0.4 million. Reported net income for the year ended December 31, 2011 was $21.0 million, or $1.75 per diluted share, versus $15.6 million, or $1.32 per diluted share, for 2010. See the table on page 8 of this release for a reconciliation of reported net income to adjusted net income.

Adjusted net income for the quarter ended December 31, 2011 increased 2.7% to $3.4 million from $3.3 million in the fourth quarter of 2010. Adjusted net income per diluted share was $0.29 for the 2011 period and $0.28 for the 2010 period. The result for the quarter ended December 31, 2011 was adjusted for the gain of $4.8 million, discussed above, and the result for the 2010 comparable period was adjusted for the positive adjustment, mentioned above, in the income tax provision. Reported net income for the quarter ended December 31, 2011 was $8.2 million, or $0.69 per diluted share, versus $4.2 million, or $0.35 per diluted share, for the 2010 period. See the table on page 8 of this release for a reconciliation of reported net income to adjusted net income.

Year 2011 compared to Year 2010

  • Net revenues increased 12.2% from $211,233,000 in 2010 to $237,006,000 in 2011, due to an increase in patient visits of 12.3% from 1,927,000 to 2,164,000, offset by a decrease in average net patient revenue per visit of $1.20 from $105.92 to $104.72. Other revenues included a $2.5 million increase in physician services revenue between the years.
  • Total clinic operating costs were $176,357,000, or 74.4% of net revenues, in 2011, as compared to $155,220,000, or 73.5% of net revenues, in 2010. Clinic salaries and related costs were 52.8% of net revenues in 2011 versus 52.5% in 2010. Rent, clinic supplies, contract labor and other costs as a percentage of net revenues were 20.0% in 2011 versus 19.4% in 2010. The provision for doubtful accounts was 1.6% of net revenues in 2011 and 1.5% in 2010.
  • Corporate office costs were $24,718,000 in 2011 versus $22,823,000 in 2010. Corporate office costs were reduced to 10.4% of net revenues in 2011 as compared to 10.8% in 2010.
  • Operating income increased in 2011 to $35,931,000 from $33,190,000 in 2010.
  • In 2011, interest and other income included a pretax gain of $5.4 million related to a purchase price settlement of an outpatient physical therapy group acquired in 2010. As required by accounting standards, this amount was recorded as a gain rather than as a reduction of goodwill. In 2010, other income included a pre-tax gain of $578,000 from the sale of a five clinic joint venture.
  • Interest expense increased to $496,000 in 2011 from $236,000 in 2010. The increase is attributable to higher average borrowings in 2011.
  • Net income attributable to non-controlling interests was $8,809,000 in 2011 as compared to $9,055,000 in 2010. The reduction is attributable to the Company’s increased ownership interest in certain physical therapy partnerships.
  • Provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interests was 34.6% in 2011 and 36.1% in 2010. For the 2011 period, $3.8 million of the $5.4 million gain discussed above was non-taxable. For the 2010 period, the income tax provision included a positive adjustment of $814,000 as a result of the reconciliation process of the historical book income tax provision to the various state and federal returns filed.
  • Reported net income attributable to common shareholders in 2011 increased 34.1% to $20,974,000 from $15,645,000 in 2010. Diluted earnings per share increased to $1.75 from $1.32. Included in the 2011 results is a gain of $4.8 million, net of tax effect, or $0.40 per diluted share, related to a purchase price settlement of an outpatient physical therapy group acquired in 2010. Included in the 2010 results was a positive adjustment in the income tax provision of $0.8 million, or $0.07 per diluted share, and a $351,000 after-tax gain or $0.03 in earnings per diluted share from a five clinic joint venture sale. Excluding those items, diluted earnings per share would have been $1.35 in 2011 as compared to $1.22 in 2010.
  • Same store revenues for de novo and acquired clinics open for one year or more increased by 1.7%. The average net rate per visit increased slightly while same store visits increased by 1.5%. This was the Company’s first annual increase in same store visits since the onset of the recession in 2008. Revenues and visit percentages were adjusted to reflect equivalent days of operations between periods.
  • During 2011, the Company opened or acquired 41 clinics and closed 17 clinics, ending the period with 416 clinics.




1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs