Declares Quarterly Dividend
U.S. Physical Therapy, Inc. ("USPH" or the “Company”) (NYSE: USPH), a
national operator of outpatient physical therapy clinics, today reported
results for the first quarter ended March 31, 2019.
For the first quarter ended March 31, 2019, USPH’s Operating Results
increased 18.6% to $8.4 million, or $0.66 per diluted share, as compared
to $7.1 million, or $0.56 per diluted share, in the first quarter of
2018. Operating Results per share, a non-GAAP measure, equals net income
attributable to USPH shareholders per the consolidated statement of net
income, and excludes the impact of the revaluation of redeemable
non-controlling interest, net of tax, to calculate earnings per share.
For the first quarter ended March 31, 2019, USPH’s net income
attributable to its shareholders was $8.4 million as compared to $7.1
million in the first quarter of 2018. Inclusive of the charge for
revaluation of non-controlling interest, net of tax, used to compute
diluted earnings per share, in accordance with GAAP, in the recent
quarter, the amount is $5.0 million, or $0.39 per share, as compared to
$3.4 million, or $0.27 per share for the first quarter of 2018. In
accordance with current accounting guidance, the revaluation of
redeemable non-controlling interest, net of tax, is not included in net
income but charged directly to retained earnings and is included in the
earnings per basic and diluted share calculation. See the schedule on
page 10 for a computation of diluted earnings per share.
First Quarter 2019 Compared to First Quarter
2018
-
Net revenues increased $7.9 million, or 7.3%, from $108.3 million in
the first quarter of 2018, to $116.2 million in the first quarter of
2019, due to an increase in net patient revenues from physical therapy
operations and an increase in the revenue from the industrial injury
prevention business. Both increases are due to internal growth and
acquisitions. The first quarter of 2019 had 63 business days versus 64
in the first quarter of 2018.
-
Net patient revenues from physical therapy operations increased
approximately $6.1 million, or 6.1%, to $106.7 million in the first
quarter of 2019 from $100.6 million in the first quarter of 2018 due
to an increase in total patient visits of 4.7% from 956,000 to
1,001,500 and an increase in the average net patient revenue per visit
to $106.49 from $105.15. Of the $6.1 million increase in net patient
revenues, $3.3 million related to an increase in business of clinics
opened or acquired prior to April 1, 2018 (“Mature Clinics”) and $2.8
million related to clinics opened or acquired after March 31, 2018
(“New Clinics”). Revenue from physical therapy management contracts
was $2.1 million for the first quarter of 2019 and $2.2 million for
the comparable 2018 period.
-
Revenue from the industrial injury prevention business increased 42.2%
to $6.9 million in the first quarter of 2019 compared to $4.9 million
in the first quarter 2018 due to internal growth and an April 2018
acquisition. Other miscellaneous revenue was $0.5 million in the first
quarter of 2019 and $0.7 million in the first quarter of 2018.
-
Total operating costs were $89.5 million, or 77.0% of net revenues, in
the first quarter of 2019 as compared to $85.1 million, or 78.6% of
net revenues, in the first quarter of 2018. The $4.4 million increase
was attributable to $1.9 million in operating costs related to Mature
Clinics, an increase of $1.4 million related to New Clinics, an
increase of $1.3 million related to the industrial injury prevention
business and a reduction in management contracts costs of $0.2
million. Total salaries and related costs, including physical therapy
operations and the industrial injury prevention business, were 57.0%
of net revenues in the recent quarter versus 57.5% in the first
quarter of 2018. Rent, supplies, contract labor and other costs as a
percentage of net revenues were 19.0% in the first quarter of 2019
versus 20.1% in the first quarter of 2018. The provision for doubtful
accounts as a percentage of net revenue was 1.0% for both periods.
-
The gross profit for the first quarter of 2019 grew by 15.1% or $3.5
million to $26.7 million, as compared to $23.2 million in the first
quarter of 2018. The gross profit percentage increased by 160 basis
points to 23.0% of net revenue in the recent period as compared to
21.4% in the first quarter 2018. The gross profit percentage for the
Company’s physical therapy clinics increased by 120 basis points to
23.1% in the recent quarter as compared to 21.9% in the first quarter
of 2018. The gross profit percentage on physical therapy management
contracts increased by 470 basis points to 18.5% in the 2019 first
quarter as compared to 13.8% in the 2018 first quarter. The gross
profit percentage for the industrial injury prevention business
increased by 650 basis points to 22.3% in the recent quarter as
compared to 15.8% in the 2018 period.
-
Corporate office costs were $11.3 million in the first quarter of 2019
compared to $10.2 million in the first quarter of 2018. Corporate
office costs were 9.7% of net revenues for the first quarter of 2019
quarter as compared to 9.4% for the first quarter of 2018.
-
Operating income for the first quarter of 2019 increased 18.2% to
$15.4 million as compared to $13.1 million in the first quarter of
2018. Operating income as a percentage of net revenue increased by 130
basis points from 12.0% in the 2018 period to 13.3% in the recent
quarter.
-
Interest expense – debt and other was $358,000 in the first quarter of
2019 and $553,000 in first quarter of 2018 due to lower borrowings
under the Company’s revolving credit line.
-
The provision for income tax for the first quarter of 2019 was $2.7
million and $2.5 million in the 2018 first quarter. The provision for
income tax as a percentage of income before taxes less net income
attributable to non-controlling interest was 24.3% for the first
quarter of 2019 and 25.8% for the first quarter of 2018.
-
Net income attributable to non-controlling interests (permanent
equity) was $1.5 million in the first quarter of 2019 and $1.2 million
in the first quarter of 2018. Net income attributable to redeemable
non-controlling interests (temporary equity) was $2.4 million in the
first quarter of 2019 and $1.7 million in the first quarter of 2018.
-
Same store revenues for de novo and acquired clinics open for one year
or more increased 4.7% in the most recent quarter. Visits increased
3.6% for de novo and acquired clinics open for one year or more while
the same store net rate increased 1.0%.
Other Financial Measures
For the first quarter of 2019 the Company's Adjusted EBITDA increased by
11.7% to $15.6 million from $14.0 million in the first quarter of 2018.
Adjusted EBITDA as a percentage of net revenue increased by 50 basis
points from 12.9% to 13.4%. See definition and explanation of Adjusted
EBITDA in the schedule on pages 9 and 10.
Management’s Comments
Chris Reading, Chief Executive Officer, said, “Despite a historically
long and difficult winter our dedicated team of partners, clinicians and
support staff got us started off on the right foot for 2019. Cost
control coupled with good volume helped to create some meaningful margin
improvement in all aspects of our business. With our recently announced
industrial injury prevention acquisition coupled with continued
opportunity, internally and externally, we look forward to a good year
ahead.”
Larry McAfee, Chief Financial Officer, noted, “Strong net cash flow in
the quarter enabled the Company to reduce credit line borrowings by
approximately 24% to $29,000,000, the lowest since 2013.”
U.S. Physical Therapy Declares Quarterly
Dividend
The second quarterly dividend for 2019 of $0.27 per share will be paid
on June 14, 2019 to shareholders of record as of May 17, 2019. U.S.
Physical Therapy began paying quarterly dividends in 2011 and has
increased the dividend amount every year since.
Operating Leases – Right-to-Use Assets and
Lease Liability
The Company implemented the new lease accounting standard beginning
January 1, 2019. On March 31, 2019, the adoption resulted in $77.9
million of right-to-use assets and $82.6 million of operating lease
liabilities, of which $26.7 million was classified as a current
liability, in the consolidated balance sheet. For a detailed discussion
of the new lease accounting standard refer to the Company’s Annual
Report on Form 10-K filed with the SEC on March 18, 2019.
First Quarter 2019 Conference Call
U.S. Physical Therapy's Management will host a conference call at 10:30
a.m. Eastern Time, 9:30 a.m. Central Time, on May 2, 2019 to discuss the
Company's Quarter Ended March 31, 2019 results. Interested parties may
participate in the call by dialing 1-888-335-5539 or 973-582-2857 and
entering reservation number 7918419 approximately 10 minutes before the
call is scheduled to begin. To listen to the live call via web-cast, go
to the Company's website at www.usph.com
at least 15 minutes early to register, download and install any
necessary audio software. The conference call will be archived and can
be accessed until August 2, 2019 at U.S. Physical Therapy’s website.
Forward-Looking Statements
This press release contains statements that are considered to be
forward-looking within the meaning under Section 21E of the Securities
Exchange Act of 1934, as amended. These statements contain
forward-looking information relating to the financial condition, results
of operations, plans, objectives, future performance and business of our
Company. These statements (often using words such as “believes”,
“expects”, “intends”, “plans”, “appear”, “should” and similar words)
involve risks and uncertainties that could cause actual results to
differ materially from those we expect. Included among such statements
may be those relating to new clinics, availability of personnel and the
reimbursement environment. The forward-looking statements are based on
our current views and assumptions and actual results could differ
materially from those anticipated in such forward-looking statements as
a result of certain risks, uncertainties, and factors, which include,
but are not limited to:
-
changes as the result of government enacted national healthcare reform;
-
changes in Medicare rules and guidelines and reimbursement or failure
of our clinics to maintain their Medicare certification status;
-
revenue we receive from Medicare and Medicaid being subject to
potential retroactive reduction;
-
business and regulatory conditions including federal and state
regulations;
-
governmental and other third party payor inspections, reviews,
investigations and audits;
-
compliance with federal and state laws and regulations relating to the
privacy of individually identifiable patient information, and
associated fines and penalties for failure to comply;
-
changes in reimbursement rates or payment methods from third party
payors including government agencies and deductibles and co-pays owed
by patients;
-
revenue and earnings expectations;
-
legal actions, which could subject us to increased operating costs and
uninsured liabilities;
-
general economic conditions;
-
availability and cost of qualified physical therapists;
-
personnel productivity and retaining key personnel;
-
competitive, economic or reimbursement conditions in our markets which
may require us to reorganize or close certain clinics and thereby
incur losses and/or closure costs including the possible write-down or
write-off of goodwill and other intangible assets;
-
acquisitions, purchase of non-controlling interests (minority
interests) and the successful integration of the operations of the
acquired businesses;
-
maintaining our information technology systems with adequate
safeguards to protect against cyber-attacks;
-
maintaining adequate internal controls;
-
maintaining necessary insurance coverage;
-
availability, terms, and use of capital; and
-
weather and other seasonal factors.
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 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 590 outpatient
physical therapy clinics in 41 states. The Company's clinics provide
preventative and post-operative care for a variety of orthopedic-related
disorders and sports-related injuries, treatment for
neurologically-related injuries and rehabilitation of injured workers.
In addition to owning and operating clinics, the Company manages 28
physical therapy facilities for unaffiliated third parties, including
hospitals and physician groups. The Company also has an industrial
injury prevention business which provides onsite services for clients’
employees including injury prevention, rehabilitation, ergonomic
assessments and performance optimization.
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.
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U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
March 31, 2019
|
|
|
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Net patient revenues
|
|
|
|
$
|
106,650
|
|
|
|
|
$
|
100,552
|
|
Other revenues
|
|
|
|
|
9,581
|
|
|
|
|
|
7,790
|
|
Net revenues
|
|
|
|
|
116,231
|
|
|
|
|
|
108,342
|
|
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and related costs
|
|
|
|
|
66,267
|
|
|
|
|
|
62,279
|
|
Rent, supplies, contract labor and other
|
|
|
|
|
22,044
|
|
|
|
|
|
21,776
|
|
Provision for doubtful accounts
|
|
|
|
|
1,206
|
|
|
|
|
|
1,061
|
|
Closure costs
|
|
|
|
|
(4
|
)
|
|
|
|
|
12
|
|
Total operating costs
|
|
|
|
|
89,513
|
|
|
|
|
|
85,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
26,718
|
|
|
|
|
|
23,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate office costs
|
|
|
|
|
11,293
|
|
|
|
|
|
10,163
|
|
Operating income
|
|
|
|
|
15,425
|
|
|
|
|
|
13,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income, net
|
|
|
|
|
16
|
|
|
|
|
|
32
|
|
Interest expense - debt and other
|
|
|
|
|
(358
|
)
|
|
|
|
|
(553
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
|
|
15,083
|
|
|
|
|
|
12,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
2,708
|
|
|
|
|
|
2,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
12,375
|
|
|
|
|
|
10,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income attributable to non-controlling interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests - permanent equity
|
|
|
|
|
(1,537
|
)
|
|
|
|
|
(1,201
|
)
|
Redeemable non-controlling interests - temporary equity
|
|
|
|
|
(2,395
|
)
|
|
|
|
|
(1,736
|
)
|
|
|
|
|
|
(3,932
|
)
|
|
|
|
|
(2,937
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to USPH shareholders
|
|
|
|
$
|
8,443
|
|
|
|
|
$
|
7,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share attributable to USPH
shareholders
|
|
|
|
$
|
0.39
|
|
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computation - basic and diluted
|
|
|
|
|
12,707
|
|
|
|
|
|
12,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
|
$
|
0.27
|
|
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
|
|
|
December 31, 2018
|
|
ASSETS
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
20,238
|
|
|
|
|
$
|
23,368
|
|
Patient accounts receivable, less allowance for doubtful accounts of
$2,692 and $2,672, respectively
|
|
|
|
|
48,443
|
|
|
|
|
|
44,751
|
|
Accounts receivable - other
|
|
|
|
|
7,237
|
|
|
|
|
|
6,742
|
|
Other current assets
|
|
|
|
|
5,238
|
|
|
|
|
|
4,353
|
|
Total current assets
|
|
|
|
|
81,156
|
|
|
|
|
|
79,214
|
|
Fixed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and equipment
|
|
|
|
|
53,267
|
|
|
|
|
|
52,611
|
|
Leasehold improvements
|
|
|
|
|
33,089
|
|
|
|
|
|
31,712
|
|
Fixed assets, gross
|
|
|
|
|
86,356
|
|
|
|
|
|
84,323
|
|
Less accumulated depreciation and amortization
|
|
|
|
|
65,197
|
|
|
|
|
|
64,154
|
|
Fixed assets, net
|
|
|
|
|
21,159
|
|
|
|
|
|
20,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease right-of-use assets
|
|
|
|
|
77,870
|
|
|
|
|
|
-
|
|
Goodwill
|
|
|
|
|
293,338
|
|
|
|
|
|
293,525
|
|
Other identifiable intangible assets, net
|
|
|
|
|
48,125
|
|
|
|
|
|
48,828
|
|
Other assets
|
|
|
|
|
1,439
|
|
|
|
|
|
1,430
|
|
Total assets
|
|
|
|
$
|
523,087
|
|
|
|
|
$
|
443,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, USPH
SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTERESTS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable - trade
|
|
|
|
$
|
1,894
|
|
|
|
|
$
|
2,019
|
|
Accrued expenses
|
|
|
|
|
39,237
|
|
|
|
|
|
38,493
|
|
Current portion of operating lease liabilities
|
|
|
|
|
26,733
|
|
|
|
|
|
-
|
|
Current portion of notes payable
|
|
|
|
|
1,066
|
|
|
|
|
|
1,434
|
|
Total current liabilities
|
|
|
|
|
68,930
|
|
|
|
|
|
41,946
|
|
Notes payable, net of current portion
|
|
|
|
|
516
|
|
|
|
|
|
402
|
|
Revolving line of credit
|
|
|
|
|
29,000
|
|
|
|
|
|
38,000
|
|
Deferred taxes
|
|
|
|
|
9,872
|
|
|
|
|
|
9,012
|
|
Deferred rent
|
|
|
|
|
-
|
|
|
|
|
|
2,159
|
|
Operating lease liabilities, net of current portion
|
|
|
|
|
55,834
|
|
|
|
|
|
-
|
|
Other long-term liabilities
|
|
|
|
|
566
|
|
|
|
|
|
829
|
|
Total liabilities
|
|
|
|
|
164,718
|
|
|
|
|
|
92,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable non-controlling interests
|
|
|
|
|
137,196
|
|
|
|
|
|
133,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Physical Therapy, Inc. ("USPH") 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,
14,975,829 and 14,899,233 shares issued, respectively
|
|
|
|
|
149
|
|
|
|
|
|
149
|
|
Additional paid-in capital
|
|
|
|
|
82,295
|
|
|
|
|
|
80,028
|
|
Retained earnings
|
|
|
|
|
168,952
|
|
|
|
|
|
167,396
|
|
Treasury stock at cost, 2,214,737 shares
|
|
|
|
|
(31,628
|
)
|
|
|
|
|
(31,628
|
)
|
Total USPH shareholders’ equity
|
|
|
|
|
219,768
|
|
|
|
|
|
215,945
|
|
Non-controlling interests
|
|
|
|
|
1,405
|
|
|
|
|
|
930
|
|
Total USPH shareholders' equity and non-controlling interests
|
|
|
|
|
221,173
|
|
|
|
|
|
216,875
|
|
Total liabilities, redeemable non-controlling interests, USPH
shareholders' equity and non-controlling interests
|
|
|
|
$
|
523,087
|
|
|
|
|
$
|
443,166
|
|
|
|
|
|
|
|
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31, 2019
|
|
|
|
|
March 31, 2018
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net income including non-controlling interests
|
|
|
|
$
|
12,375
|
|
|
|
|
$
|
10,054
|
|
Adjustments to reconcile net income including non-controlling
interests to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
2,400
|
|
|
|
|
|
2,468
|
|
Provision for doubtful accounts
|
|
|
|
|
1,206
|
|
|
|
|
|
1,061
|
|
Equity-based awards compensation expense
|
|
|
|
|
1,728
|
|
|
|
|
|
1,381
|
|
Deferred income taxes
|
|
|
|
|
2,118
|
|
|
|
|
|
(1,162
|
)
|
Other
|
|
|
|
|
12
|
|
|
|
|
|
54
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in patient accounts receivable
|
|
|
|
|
(4,898
|
)
|
|
|
|
|
(2,782
|
)
|
Increase in accounts receivable - other
|
|
|
|
|
(495
|
)
|
|
|
|
|
(849
|
)
|
Increase in other assets
|
|
|
|
|
(894
|
)
|
|
|
|
|
(1,238
|
)
|
Increase in accounts payable and accrued expenses
|
|
|
|
|
274
|
|
|
|
|
|
7,389
|
|
Decrease in other liabilities
|
|
|
|
|
(263
|
)
|
|
|
|
|
(845
|
)
|
Net cash provided by operating activities
|
|
|
|
|
13,563
|
|
|
|
|
|
15,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of fixed assets
|
|
|
|
|
(2,497
|
)
|
|
|
|
|
(1,404
|
)
|
Purchase of redeemable non-controlling interest, temporary equity
|
|
|
|
|
(2,053
|
)
|
|
|
|
|
(761
|
)
|
Purchase of non-controlling interest, permanent equity
|
|
|
|
|
(139
|
)
|
|
|
|
|
(246
|
)
|
Proceeds on sale of fixed assets
|
|
|
|
|
60
|
|
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
|
|
(4,629
|
)
|
|
|
|
|
(2,411
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to non-controlling interests, permanent and temporary
equity
|
|
|
|
|
(2,576
|
)
|
|
|
|
|
(2,208
|
)
|
Proceeds from revolving line of credit
|
|
|
|
|
19,000
|
|
|
|
|
|
19,000
|
|
Payments on revolving line of credit
|
|
|
|
|
(28,000
|
)
|
|
|
|
|
(31,000
|
)
|
Payments to settle mandatorily redeemable non-controlling interests
|
|
|
|
|
-
|
|
|
|
|
|
(265
|
)
|
Principal payments on notes payable
|
|
|
|
|
(482
|
)
|
|
|
|
|
(823
|
)
|
Other
|
|
|
|
|
(5
|
)
|
|
|
|
|
56
|
|
Net cash used in financing activities
|
|
|
|
|
(12,063
|
)
|
|
|
|
|
(15,240
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
|
|
|
(3,129
|
)
|
|
|
|
|
(2,120
|
)
|
Cash and cash equivalents - beginning of period
|
|
|
|
|
23,368
|
|
|
|
|
|
21,933
|
|
Cash and cash equivalents - end of period
|
|
|
|
$
|
20,239
|
|
|
|
|
$
|
19,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
$
|
313
|
|
|
|
|
$
|
2,941
|
|
Interest
|
|
|
|
$
|
343
|
|
|
|
|
$
|
526
|
|
Non-cash investing and financing transactions during the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of business - seller financing portion
|
|
|
|
$
|
228
|
|
|
|
|
$
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
OPERATING RESULTS AND ADJUSTED EBITDA
(IN THOUSANDS,
EXCEPT PER SHARE DATA)
(unaudited)
The following tables provide detail of the diluted earnings per share
computation and reconcile net income attributable to USPH shareholders
calculated in accordance with GAAP to Operating Results and Adjusted
EBITDA. Management believes providing Operating Results and Adjusted
EBITDA to investors is useful information for comparing the Company's
period-to-period results.
Operating Results (as defined below), a non-generally accepted
accounting principles (“non-GAAP”) measure, equals net income
attributable to USPH shareholders. In accordance with current accounting
guidance, the revaluation of redeemable non-controlling interest, net of
tax, is not included in net income but charged directly to retained
earnings and is included in the earnings per basic and diluted share
calculation.
Management uses Operating Results, which eliminates the non-current cash
item related to the revaluation of redeemable non-controlling interest
that can be subject to volatility and unusual costs, as one of the
principal measures to evaluate and monitor financial performance period
over period. Management believes that Operating Results is useful
information for investors to use in comparing the Company's
period-to-period results as well as for comparing with other similar
businesses since most do not have mandatorily redeemable instruments and
therefore have different liability and equity structures.
Adjusted EBITDA is defined as net income attributable to USPH
shareholders before interest income, interest expense – debt and other,
taxes, depreciation, amortization and equity-based awards compensation
expense. Management believes reporting Adjusted EBITDA is useful
information for investors in comparing the Company’s period-to-period
results as well as comparing with similar businesses which report
adjusted EBITDA as defined by their company.
Operating Results and Adjusted EBITDA are not measures of financial
performance under GAAP. Adjusted EBITDA and Operating Results should not
be considered in isolation or as an alternative to, or substitute for,
net income attributable to USPH shareholders presented in the
consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
Computation of earnings per share - USPH shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to USPH shareholders
|
|
|
|
$
|
8,443
|
|
|
|
|
$
|
7,117
|
|
Charges to retained earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of redeemable non-controlling interest
|
|
|
|
$
|
(4,661
|
)
|
|
|
|
$
|
(5,081
|
)
|
Tax effect at statutory rate (federal and state) of 26.25%
|
|
|
|
|
1,224
|
|
|
|
|
|
1,334
|
|
|
|
|
|
$
|
5,006
|
|
|
|
|
$
|
3,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted per share
|
|
|
|
$
|
0.39
|
|
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of redeemable non-controlling interest
|
|
|
|
|
4,661
|
|
|
|
|
|
5,081
|
|
Tax effect at statutory rate (federal and state) of 26.25% and
39.25%, respectively
|
|
|
|
|
(1,224
|
)
|
|
|
|
|
(1,334
|
)
|
Operating results
|
|
|
|
$
|
8,443
|
|
|
|
|
$
|
7,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted operating results per share
|
|
|
|
$
|
0.66
|
|
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computation - basic and diluted
|
|
|
|
|
12,707
|
|
|
|
|
|
12,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to USPH shareholders
|
|
|
|
$
|
8,443
|
|
|
|
|
$
|
7,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
2,375
|
|
|
|
|
|
2,468
|
|
Interest income
|
|
|
|
|
(16
|
)
|
|
|
|
|
(32
|
)
|
Interest expense - debt and other
|
|
|
|
|
358
|
|
|
|
|
|
553
|
|
Provision for income taxes
|
|
|
|
|
2,708
|
|
|
|
|
|
2,476
|
|
Equity-based awards compensation expense
|
|
|
|
|
1,728
|
|
|
|
|
|
1,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
15,596
|
|
|
|
|
$
|
13,963
|
|
|
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
RECAP OF CLINIC COUNT
|
|
|
Date
|
Number of Clinics
|
|
|
March 31, 2018
|
580
|
June 30, 2018
|
581
|
September 30, 2018
|
588
|
December 31, 2018
|
591
|
|
|
March 31, 2019
|
590
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190502005050/en/
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