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U.S. Physical Therapy Reports Significantly Higher First Quarter Earnings

Stocks in this article: USPH

Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. Please see our 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 press release. Except as required by law, we are under no obligation to update any forward-looking statement, regardless of the reason the statement is no longer accurate.

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 414 clinics in 42 states. The Company's clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, non-surgical treatment of osteoarthritis, treatment for neurologically-related injuries and rehabilitation of injured workers. In addition to owning and operating clinics, the Company manages 15 physical therapy facilities for third parties, including hospitals and physician groups.

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 NET INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
 
Three Months Ended March 31,
2012 2011
 
 
Net patient revenues $ 60,499 $ 53,872
Other revenues   2,083     2,869  
Net revenues 62,582 56,741
 
Clinic operating costs:
Salaries and related costs 32,799 29,639
Rent, clinic supplies, contract labor and other 12,484 11,295
Provision for doubtful accounts 1,117 624
Closure costs   49     20  
Total clinic operating costs 46,449 41,578
 
Corporate office costs   6,262     6,481  
 
Operating income 9,871 8,682
 
Interest and other income, net 2 2
Interest expense   (162 )   (73 )
 
Income before taxes 9,711 8,611
Provision for income taxes   2,899     2,426  
 
Net income including noncontrolling interests 6,812 6,185
Less: net income attributable to noncontrolling interests   (2,334 )   (2,439 )
Net income attributable to common shareholders $ 4,478   $ 3,746  
 
Earnings per share attributable to common shareholders:
Basic $ 0.38   $ 0.32  
 
Diluted $ 0.38   $ 0.31  
 
Shares used in computation:
Basic   11,726     11,718  
 
Diluted   11,838     11,945  
 
Dividends declared per common share $ 0.09   $ 0.08  

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

   
CONSOLIDATED EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
 
Three Months Ended
March 31,
2012 2011
Numerator:
Net income attributable to common shareholders $ 4,478 $ 3,746
 
Denominator:

Denominator for basic earnings per share - weighted-average shares

11,726 11,718

Effect of dilutive securities - Stock options

112 227

Denominator for diluted earnings per share - adjusted weighted-average shares

11,838 11,945
 
Earnings per share attributable to common shareholders:
Basic $ 0.38 $ 0.32
 
Diluted $ 0.38 $ 0.31

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

   
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
 
March 31, December 31,
2012 2011
(unaudited)
ASSETS
 
Current assets:
Cash $ 10,440 $ 9,983

Patient accounts receivable, less allowance for doubtfulaccounts of $1,892 and $2,154, respectively

29,456 28,333

Accounts receivable - other, less allowance for doubtfulaccounts of $186 and $883, respectively

1,979 1,614
Other current assets   5,248     5,737  
Total current assets 47,123 45,667
 
Fixed assets:
Furniture and equipment 35,491 35,103
Leasehold improvements   19,987     20,385  
55,478 55,488
Less accumulated depreciation and amortization   42,556     42,299  
12,922 13,189
Goodwill 93,797 92,750
Other intangible assets, net 9,515 9,603
Other assets   1,079     2,043  
$ 164,436   $ 163,252  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Accounts payable - trade $ 1,377 $ 1,809
Accrued expenses 10,656 14,082
Current portion of notes payable   483     433  
Total current liabilities 12,516 16,324
Notes payable 334 284
Revolving line of credit 24,200 23,500
Deferred rent 946 941
Other long-term liabilities   605     623  
Total liabilities 38,601 41,672
 
Commitments and contingencies
 
Shareholders' equity:
U. S. Physical Therapy, Inc. 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,13,980,577 and 13,919,588 shares issued, respectively

140 139
Additional paid-in capital 36,563 36,133
Retained earnings 105,825 102,405
Treasury stock at cost, 2,214,737 shares   (31,628 )   (31,628 )
Total U. S. Physical Therapy, Inc. shareholders' equity 110,900 107,049
Noncontrolling interests   14,935     14,531  
Total equity   125,835     121,580  
$ 164,436   $ 163,252  

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

   
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(unaudited)
 
Three Months Ended March 31,
2012 2011
 
OPERATING ACTIVITIES
Net income including noncontrolling interests $ 6,812 $ 6,185

Adjustments to reconcile net income including noncontrolling intereststo net cash provided by operating activities:

Depreciation and amortization 1,334 1,330
Provision for doubtful accounts 1,117 624
Equity-based awards compensation expense 547 444
Loss on sale or abandonment of assets, net 58 56
Deferred income tax 1,610 365
Other - (374 )
Changes in operating assets and liabilities:
Increase in patient accounts receivable (2,179 ) (3,774 )
Increase in accounts receivable - other (426 ) (409 )
Decrease in other assets 38 355
(Decrease) increase in accounts payable and accrued expenses (3,728 ) 685
(Decrease) increase in other liabilities   (12 )   208  
Net cash provided by operating activities 5,171 5,695
 
INVESTING ACTIVITIES
Purchase of fixed assets (896 ) (860 )
Purchase of businesses, net of cash acquired (1,090 ) -
Acquisitions of noncontrolling interests (565 ) (15 )
Net proceeds on sale of fixed assets and business   6     3  
Net cash used in investing activities (2,545 ) (872 )
 
FINANCING ACTIVITIES
Distributions to noncontrolling interests (1,919 ) (1,989 )
Cash dividends to shareholders (1,058 ) (943 )
Proceeds from revolving line of credit 8,400 4,000
Payments on revolving line of credit (7,700 ) (4,700 )
Payment of notes payable - (100 )
Excess tax benefit from stock options exercised 58 395
Other   50     1  
Net cash used in financing activities (2,169 ) (3,336 )
 
Net increase in cash 457 1,487
Cash - beginning of period   9,983     9,179  
Cash - end of period $ 10,440   $ 10,666  
 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Income taxes $ 576 $ 615
Interest $ 283 $ 93
Non-cash investing and financing transactions during the period:
Purchase of business - seller financing portion $ 100 $ -

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
RECAP OF CLINIC DEVELOPMENT ACTIVITY
         
Number
of
Opened Acquired Sold Closed Clinics
 
At December 31, 2009 368
 
First Quarter 2010, March 31, 2010 1 5 (5) (2) 367
Second Quarter 2010, June 30, 2010 7 - - (5) 369
Third Quarter 2010, September 30, 2010 5 - - (2) 372
Fourth Quarter 2010, December 31, 2010 6 20 - (6) 392
Year Ended, December 31, 2010 19 25 (5) (15) 392
 
First Quarter 2011, March 31, 2011 6 - - (1) 397
Second Quarter 2011, June 30, 2011 2 - - (1) 398
Third Quarter 2011, September 30, 2011 8 20 - (6) 420
Fourth Quarter 2011, December 31, 2011 5 - - (9) 416
Year Ended, December 31, 2011 21 20 - (17) 416
 
First Quarter 2012, March 31, 2012 2 2 - (6) 414




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