Second Quarter 2012 compared to Second Quarter 2011
- Net revenues increased 6.8% from $59,912,000 in the second quarter of 2011 to $63,959,000 in the second quarter of 2012, primarily due to an increase in patient visits of 8.6% from 541,000 to 587,000. The average net patient revenue per visit for the recent quarter was $105.65 as compared to $104.77 in the comparable 2011 period. The increase in net revenues from the Company’s core physical therapy operations was partially offset by a decrease in other revenues of $1,300,000 due to a reduction in revenue from physician services.
- Total clinic operating costs were $46,965,000, or 73.4% of net revenues, in the second quarter of 2012, as compared to $43,023,000, or 71.8% of net revenues, in the 2011 period. Clinic salaries and related costs were 51.1% of net revenues in the recent quarter versus 51.9% in the 2011 period. Rent, clinic supplies, contract labor and other costs as a percentage of net revenues were 20.3% for the recent quarter versus 19.0% in the 2011 period. The provision for doubtful accounts as a percentage of net revenues was 2.0% for the 2012 period versus 0.8% in the 2011 quarter. In the second quarter of 2012 the gross margin from the Company’s core physical therapy business increased by $1,631,000 or 10.5% as compared to the second quarter of 2011 which was offset by a $1,526,000 decrease in margin from the physician services business.
- Corporate office costs were $6,396,000 in the second quarter of 2012 as compared to $6,007,000 in the 2011 second quarter. Corporate office costs were 10.0% of net revenues in both periods.
- Operating income for the second quarter of 2012 was $10,598,000 compared to $10,882,000 in the 2011 second quarter.
- Interest expense increased to $145,000 in the second quarter of 2012 from $109,000 in the second quarter of 2011 due to higher average borrowings in the 2012 period.
- Net income attributable to non-controlling interests was $2,465,000 in the recent quarter as compared to $2,703,000 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 second quarter of 2012 was $4,849,000 compared to $4,900,000 in the second quarter of 2011. Diluted earnings per share were $0.41 for both periods.
- Same store revenues for de novo and acquired clinics open for one year or more increased 2.8%. Higher same store visits and higher average net rate per visit accounted for the increase.