U.S. Physical Therapy, Inc. (NasdaqGS: USPH), a national operator of outpatient physical therapy clinics, today reported results for the second quarter and six months ended June 30, 2012.
U.S. Physical Therapy’s net income for the six months ended June 30, 2012 increased 7.9% to $9.3 million from $8.6 million for the six months ended June 30, 2011. Diluted earnings per share rose to $.79 for the 2012 period versus $.72 for the 2011 period.
U.S. Physical Therapy’s net income was approximately $4.9 million for the second quarters of 2012 and 2011. Diluted earnings per share were $.41 for both quarters.
Six Months 2012 compared to Six Months 2011
- Net revenues increased 8.5% from $116,653,000 in the first six months of 2011 to $126,541,000 in the first six months of 2012, primarily due to an increase in patient visits of 10.4% from 1,056,000 to 1,166,000. The average net patient revenue per visit for the 2012 period was $105.10 as compared to $104.67 in the comparable 2011 period. The increase in net revenues was offset by a decrease in other revenues of $2,100,000 due to a reduction in revenue from physician services.
- Total clinic operating costs were $93,414,000, or 73.8% of net revenues, in the 2012 period, as compared to $84,601,000, or 72.5% of net revenues, in the 2011 period. Clinic salaries and related costs were 51.7% of net revenues in the recent period versus 52.1% in the 2011 period. Rent, clinic supplies, contract labor and other costs as a percentage of net revenues were 20.1% in the recent period versus 19.4% in the 2011 period. The provision for doubtful accounts as a percentage of net revenues was 1.9% for the 2012 period versus 1.0% in the 2011 period. In the first six months of 2012, the gross margin from the Company’s core physical therapy business increased by $3,678,000 or 12.5% as compared to the first half of 2011 which was partially offset by a $2,603,000 decrease in margin from the physician services business.
- Corporate office costs increased slightly to $12,658,000 in the 2012 period from $12,488,000 in the 2011 period. However, corporate office costs were reduced as a percentage of net revenues to 10.0% in the 2012 period as compared to 10.7% in the 2011 period.
- Operating income for the first six months of 2012 rose to $20,469,000 compared to $19,564,000 in the 2011 six months.
- Interest expense increased to $307,000 in the 2012 period from $182,000 in the 2011 period due to higher average borrowings in the 2012 period.
- Net income attributable to non-controlling interests was $4,799,000 in the 2012 period as compared to $5,142,000 in the year earlier period. The reduction is attributable to the Company’s increased ownership interest in certain of its physical therapy partnerships.
- Provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interests was 39.3% in both the 2012 and 2011 periods.
- Reported net income attributable to common shareholders in the 2012 period was $9,327,000 compared to $8,646,000 in the 2011 period. Diluted earnings per share were $0.79 versus $0.72.
- Same store revenues for de novo and acquired clinics open for one year or more increased 4.6%. Higher same store visits and slightly higher average net rate per visit accounted for the increase.