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U.S. Physical Therapy Reports Second Quarter And Six Months Results

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 419 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 June 30, Six Months Ended June 30,
2012 2011 2012 2011
 
 
Net patient revenues $ 62,052 $ 56,678 $ 122,551 $ 110,550
Other revenues   1,907     3,234     3,990     6,103  
Net revenues 63,959 59,912 126,541 116,653
 
Clinic operating costs:
Salaries and related costs 32,671 31,120 65,470 60,759
Rent, clinic supplies, contract labor and other 12,992 11,388 25,476 22,683
Provision for doubtful accounts 1,280 504 2,397 1,128
Closure costs   22     11     71     31  
Total clinic operating costs   46,965     43,023     93,414     84,601  
 
Gross margin 16,994 16,889 33,127 32,052
 
Corporate office costs   6,396     6,007     12,658     12,488  
 
Operating income 10,598 10,882 20,469 19,564
 
Interest and other income, net 1 2 3 4
Interest expense   (145 )   (109 )   (307 )   (182 )
 
Income before taxes 10,454 10,775 20,165 19,386
Provision for income taxes   3,140     3,172     6,039     5,598  
 
Net income including noncontrolling interests 7,314 7,603 14,126 13,788
Less: net income attributable to noncontrolling interests   (2,465 )   (2,703 )   (4,799 )   (5,142 )
Net income attributable to common shareholders $ 4,849   $ 4,900   $ 9,327   $ 8,646  
 
Earnings per share attributable to common shareholders:
Basic $ 0.41   $ 0.42   $ 0.79   $ 0.73  
 
Diluted $ 0.41   $ 0.41   $ 0.79   $ 0.72  
 
Shares used in computation:
Basic   11,781     11,807     11,754     11,767  
 
Diluted   11,903     11,999     11,872     11,978  
 
Dividends declared per common share $ 0.09   $ 0.08   $ 0.18   $ 0.16  

 

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

                                       
DETAIL OF GROSS MARGIN
(IN THOUSANDS)
(unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
 
Gross margin - physical therapy services $ 17,139 $ 15,508 $ 33,106 $ 29,428
Gross margin - physician services   (145 )   1,381   21   2,624
Gross margin $ 16,994   $ 16,889 $ 33,127 $ 32,052

 

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

                                     
CONSOLIDATED EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
 
Three Months Ended Six Months Ended
June 30, June 30,
2012 2011 2012 2011
Numerator:
Net income attributable to common shareholders $ 4,849 $ 4,900 $ 9,327 $ 8,646
 
Denominator:
Denominator for basic earnings per share -
weighted-average shares 11,781 11,807 11,754 11,767
Effect of dilutive securities -
Stock options   122   192   118   211
Denominator for diluted earnings per share -
adjusted weighted-average shares   11,903   11,999   11,872   11,978
 
Earnings per share attributable to common shareholders:
Basic $ 0.41 $ 0.42 $ 0.79 $ 0.73
 
Diluted $ 0.41 $ 0.41 $ 0.79 $ 0.72

 

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

                   
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
 
June 30, December 31,
2012 2011
(unaudited)
ASSETS
 
Current assets:
Cash $ 8,811 $ 9,983
Patient accounts receivable, less allowance for doubtful
accounts of $1,930 and $2,154, respectively 28,768 28,333
Accounts receivable - other, less allowance for doubtful
accounts of $408 and $883, respectively 1,737 1,614
Other current assets   5,328     5,737  
Total current assets 44,644 45,667
 
Fixed assets:
Furniture and equipment 35,230 35,103
Leasehold improvements   20,407     20,385  
55,637 55,488
Less accumulated depreciation and amortization   42,747     42,299  
12,890 13,189
Goodwill 99,141 92,750
Other intangible assets, net 12,522 9,603
Other assets   1,435     2,043  
$ 170,632   $ 163,252  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities:
Accounts payable - trade $ 1,399 $ 1,809
Accrued expenses 14,200 14,082
Current portion of notes payable   609     433  
Total current liabilities 16,208 16,324
Notes payable 275 284
Revolving line of credit 20,000 23,500
Deferred rent 930 941
Other long-term liabilities   653     623  
Total liabilities 38,066 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,
14,014,966 and 13,919,588 shares issued, respectively 140 139
Additional paid-in capital 37,209 36,133
Retained earnings 109,615 102,405
Treasury stock at cost, 2,214,737 shares   (31,628 )   (31,628 )

Total U.S. Physical Therapy, Inc. shareholders' equity

115,336 107,049
Noncontrolling interests   17,230     14,531  
Total equity   132,566     121,580  
$ 170,632   $ 163,252  

 

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(unaudited)

   
Six Months Ended June 30,
2012 2011
 
OPERATING ACTIVITIES
Net income including noncontrolling interests $ 14,126 $ 13,788
Adjustments to reconcile net income including noncontrolling interests
to net cash provided by operating activities:
Depreciation and amortization 2,646 2,752
Provision for doubtful accounts 2,397 1,128
Equity-based awards compensation expense 1,043 963
Loss on sale or abandonment of assets, net 83 75
Deferred income tax 1,046 950
Other - (591 )
Changes in operating assets and liabilities:
Increase in patient accounts receivable (1,613 ) (3,728 )
Increase in accounts receivable - other (400 ) (1,112 )
Decrease (increase) in other assets 301 (1,251 )
Decrease in accounts payable and accrued expenses (693 ) (548 )
Increase in other liabilities   31     415  
Net cash provided by operating activities 18,967 12,841
 
INVESTING ACTIVITIES
Purchase of fixed assets (1,943 ) (1,484 )
Purchase of businesses, net of cash acquired (7,180 ) -
Acquisitions of noncontrolling interests (965 ) (15,885 )
Sale of noncontrolling interests 239 -
Net proceeds on sale of fixed assets and business   28     4  
Net cash used in investing activities (9,821 ) (17,365 )
 
FINANCING ACTIVITIES
Distributions to noncontrolling interests (4,751 ) (4,597 )
Cash dividends to shareholders (2,117 ) (1,890 )
Proceeds from revolving line of credit 32,400 42,300
Payments on revolving line of credit (35,900 ) (32,000 )
Payment of notes payable (184 ) (100 )
Excess tax benefit from stock options exercised 184 622
Other   50     2  
Net cash (used in) provided by financing activities (10,318 ) 4,337
 
Net decrease in cash (1,172 ) (187 )
Cash - beginning of period   9,983     9,179  
Cash - end of period $ 8,811   $ 8,992  
 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Income taxes $ 3,886 $ 3,367
Interest $ 422 $ 188
Non-cash investing and financing transactions during the period:
Purchase of business - seller financing portion $ 350 $ -
Acquisition of noncontrolling interest - seller financing portion $ - $ 367

           
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECAP OF CLINIC DEVELOPMENT ACTIVITY
 
Number
of
Opened Acquired Sold Closed Clinics
 
At December 31, 2010 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
Second Quarter 2012, June 30, 2012 3 7 - (5 ) 419
Six Months Ended, June 30, 2012 5 9 - (11 ) 419




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