US Physical Therapy Inc. Q2 2010 Earnings Call Transcript

US Physical Therapy Inc. (USPH)

Q2 2010 Earnings Call

August 05, 2010 10:00 am ET

Executives

Jon Bates - VP, Controller

Chris Reading - CEO

Larry McAfee - CFO

Analysts

Larry Solow - CJS Securities

Alex Gait - Castle Peak Asset Management

Mitra Ramgopal - Sidoti & Company

Brian Tanquilut - Jefferies & Company

Presentation

Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Second Quarter 2010 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions). Thank you.

I would now like to turn the conference over to Mr. Chris Reading, President and CEO. Sir, you may begin your conference.

Chris Reading

Thank you very much. Good morning everyone before we start today I would just let you know who is with me in Houston Larry McAfee, our Executive Vice President, Chief Financial Officer; Jon Bates, our Vice President and Controller. Absent today is going Glenn McDowell, our Chief Operating Officer. Glenn is on a very deserved vacation. Somewhere outside to reach of cell phones and so what happened he had chance to take some deserved time off and he will be back next week. Any questions normally for Glenn we will prepare to cover here as well.

Before we start I would like to ask Jon to read a brief disclosure statement and then we will begin.

Jon Bates

Thanks, Chris. This presentation contains forward-looking statements, which involve certain risks and uncertainties. And these forward-looking statements are based on the company’s current views and assumptions and the company’s actual results can vary materially from those anticipated. Please see the company’s filings with the Securities and Exchange Commission for more information.

Chris Reading

Thanks, Jon. For those of you who that are normally on our call, I’m going to handle the call a little bit differently today than normal and go out straight and just talk to you for a little bit today. Then I will ask Glenn to cover the permanent financial details, really want to try to talk and explain what we are as a company, what we are doing and why we are able to achieve some of the results that we have able to achieve this quarter in this year.

I also want to tell little bit of a story along the way and highlight some of our partnerships. Right in the call earlier this week with our audit committee to clear the press release in the 10-Q and I think I opened the call by saying that we had a pretty solid quarter at which point I think it probably expanded a couple of people over the call on the team because really we had an outstanding quarter.

We always look to try to make it as perfect as we can be and that’s what we should stride for and knowing that we are probably not going to get there one of those areas we have continued work to do always in the same-store area that would have probably made this about as close to a perfect quarter as we could have gotten but it was truly an excellent quarter force we are very happy with the progress we have made since last year and remember last year was a great year for us.

Second quarter last year was a record quarter and we moved ahead from where we were second quarter of last year, I think at $0.31 on reported basis up significantly over 20% to $0.38 this quarter.

I want to mention a number of our partnerships and really when we talk about the company what we are about and why are we able to do some of these things and what's really still a very challenging environment. I saw some jobless numbers today which were up again, our market hasn’t responded too well early this morning, some of those statistics, but when we are out in the communities and it still feels difficult, unemployment is still higher, the employments high. We have been able to do some things and to navigate internally here with the help of our very talented made up of excellent partners around the country, needs in our business people, they are clinicians who dedicated to the care of their patients, they are dedicated to the communities they live and work in, they are clinicians at heart.

A number on the call today I am sure but most are in the clinic today seeing patients, doing what they do best and what they love to do and that's making a difference in lives of our patients. I think we've done that very, very well. We endeavor here in Houston and with our support team around the country to provide resources to them. So that they can focus on what they love to do and that's drive business and make a difference with their patients and recruit new staffs so that we can handle the growth and drive more growth.

I want to point out a number of our partnerships around the country. They have just done an outstanding job and one of thing is that continued tough market. We have partnership in Michigan and places like Plymouth and Saginaw and in around Detroit which is our view one of the toughest hit areas in the country that are putting out some outstanding year-over-year numbers.

They have found a way to continue to grow even in a difficult market, and I think that's really what it's about and that’s what I think underscores where we are as a company. We are not always going to put up a perfect quarter. But we are going to try and we are going to work very hard to figure out away how to overcome some of the challenges that are going to continue to be out there in this healthcare market right now and we are going to figure out away how to get a good, solid win under our belt. And our partners work very hard to do that, places like Florida and Maine. We have partnerships that have been around for more than 10 years in Dallas, multimillion partnerships that year-over-year find a way to make it happen and grow.

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