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U.S. Physical Therapy Reports Second Quarter 2022 Results

U.S. Physical Therapy, Inc. ("USPH" or the “Company”) (NYSE: USPH), a national operator of outpatient physical therapy clinics and provider of industrial injury prevention (“IIP”) services, today reported results for the second quarter and six months ended June 30, 2022 (“2022 Second Quarter”).

QUARTER HIGHLIGHTS

  • Operating Results per diluted share, a non-GAAP measure (defined below), was $0.90 per diluted share for the 2022 Second Quarter, the second highest quarterly amount in the Company’s history. For the three months ended June 30, 2021 (“2021 Second Quarter”), Operating Results per diluted share was $0.96, the highest quarterly amount in the Company’s history.
  • Adjusted EBITDA, a non-GAAP measure (defined below), was $21.3 million for the 2022 Second Quarter, a slight decrease from $21.4 million for the 2021 Second Quarter. See pages 14 and 15 for a discussion and reconciliation to results according to GAAP.
  • For the 2022 Second Quarter, USPH’s net income attributable to its shareholders, a Generally Accepted Accounting Principles (“GAAP”) measure, was $11.2 million compared to $12.4 million for the 2021 Second Quarter. GAAP requires the Company to include a charge for the revaluation of its non-controlling interest, net of taxes, in its computation of earnings per diluted share. Earnings per diluted share on a GAAP basis, was $0.87 for the 2022 Second Quarter as compared to $0.82 for the 2021 Second Quarter.
  • Average visits per clinic per day in the 2022 Second Quarter was 29.5, an increase from the first quarter of 2022 of 27.9 and slightly less than the Company-high 30.0 in the 2021 Second Quarter.
  • Total patient visits were 1,145,554 for the 2022 Second Quarter, an increase of 5.7% from 1,084,070 for the 2021 Second Quarter.
  • The net rate per patient visit was $103.18 in the 2022 Second Quarter as compared to $104.46 in the 2021 Second Quarter due to rate reductions implemented by Medicare in 2022.
  • Net patient revenue from physical therapy operations was $118.2 million for the 2022 Second Quarter, an increase of 4.4% from $113.2 million for the 2021 Second Quarter.
  • Industrial injury prevention (“IIP”) services revenue was an all-time high of $19.4 million for the 2022 Second Quarter, representing a 93.7% increase over the 2021 Second Quarter. Excluding $6.8 million of revenue related to the November 2021 IIP acquisition, IIP services revenue increased 25.5% period over period.
  • Total revenue of $140.7 million for the 2022 Second Quarter was 10.8% higher than total revenue of $126.9 million for the 2021 Second Quarter.
  • Physical therapy total operating costs were $81.09 per visit in the 2022 Second Quarter as compared to $76.50 per visit in the 2021 Second Quarter, an increase of 6.0%. Physical therapy salaries and related costs were $58.29 per visit in the 2022 Second Quarter as compared to $55.95 per visit in the Second Quarter 2021, an increase of 4.2%.
  • Total operating cost was 78.1% of total revenue in the 2022 Second Quarter, as compared to 73.0% for the 2021 Second Quarter. Total salaries and related costs were 56.8% of total revenue for the 2022 Second Quarter versus 54.3% for the 2021 Second Quarter.
  • On June 21, 2022, the Company announced the closing of a $325 million, five-year credit facility that includes a $150 million term loan and a $175 million revolver. Based on strong lender support, the credit facility was upsized from its $300 million launch amount. This is an increase and extension of the Company’s previous $150 million credit facility. The Company concurrently announced that it entered into an interest rate swap agreement in May, with a June 30 effective date, to lock the 1-month term SOFR rate on $150 million of its debt at a 5-year swap rate of 2.815%. The total interest rate in any particular period will also include an applicable margin based on the Company’s consolidated leverage ratio.
  • The Company’s Board of Directors declared a quarterly dividend of $0.41 per share payable on September 16, 2022 to shareholders of record on August 18, 2022.
  • Management updated the Company’s guidance to reflect the impact of its recent financing transaction on interest expense as well as inflation in wages and other costs it began experiencing in the 2022 Second Quarter. Management currently expects its Adjusted EBITDA for the full year of 2022 to be in the range of $73.5 million to $75.4 million with Operating Results per share, which reflects the increase in interest expense, to be in the range of $2.65 to $2.75.

Management’s Comments

Chris Reading, Chief Executive Officer, said, “Despite an increasingly difficult operating environment, our team produced the second highest quarterly results in our Company’s history. In the second quarter, we began to feel the impact of rising costs and while we are working hard and making some adjustments to alleviate some of those, we believe our costs will be higher than originally expected for the remainder of the year which has been reflected in our updated guidance numbers. Further, we took the important and necessary step to expand our credit facility which gives us more dry powder to use for acquisitions and other investments. On that front, we have been very active and expect to close a number of deals before year’s end which should be very positive for 2023 and forward.”

Carey Hendrickson, Chief Financial Officer, said, “We are very pleased to have completed the financing transaction in the second quarter, which was important to provide us the capital we need for growth. The related interest rate swap, which fixed the interest rate on $150 million of our debt for five years, provides us certainty in the rising interest rate environment at a rate that we believe is favorable over the five-year period.”

Second Quarter 2022 Compared to Second Quarter 2021

  • Reported total revenue for the 2022 Second Quarter was $140.7 million, an increase of 10.8% as compared to $126.9 million for the 2021 Second Quarter. See table below for a detail of reported total revenue (in thousands):

 

 

Three Months Ended

 

June 30,

June 30,

 

 

 

2022

 

 

2021

 

Revenue related to Mature Clinics

 

$

108,582

 

 

$

110,105

 

Revenue related to 2022 Clinic Additions

 

 

3,117

 

 

 

-

 

Revenue related to 2021 Clinic Additions

 

 

6,191

 

 

 

2,414

 

Revenue from clinics sold or closed in 2022

 

 

306

 

 

 

592

 

Revenue from clinics sold or closed in 2021

 

 

-

 

 

 

127

 

Net patient revenue from physical therapy operations

 

 

118,196

 

 

 

113,238

 

Other revenue

 

 

898

 

 

 

918

 

Revenue from physical therapy operations

 

 

119,094

 

 

 

114,156

 

Revenue from management contracts

 

 

2,125

 

 

 

2,739

 

Revenue from industrial injury prevention services

 

 

19,437

 

 

 

10,033

 

Total Revenue

 

$

140,656

 

 

$

126,928

 

 

 

 

 

 

 

 

 

 

  • Revenue from physical therapy operations increased $4.9 million, or 4.3%, to $119.1 million for the 2022 Second Quarter from $114.2 million for the 2021 Second Quarter. The average net patient revenue per visit was $103.18 for the 2022 Second Quarter as compared to $104.46 for the 2021 Second Quarter. Total patient visits increased 5.7% to 1,145,554 for the 2022 Second Quarter from 1,084,070 for the 2021 Second Quarter.
  • Net patient revenue related to clinics opened or acquired prior to 2021 and still in operation at June 30, 2022 (“Mature Clinics”) decreased $1.5 million, or 1.4%, to $108.6 million for the 2022 Second Quarter compared to $110.1 million for the 2021 Second Quarter, due mostly to the decrease in average net patient revenue per visit. Visits for Mature Clinics (same store) for the 2022 Second Quarter decreased slightly (0.2%) as compared to the 2021 Second Quarter.
  • IIP services revenue increased 93.7% to $19.4 million for the 2022 Second Quarter as compared to $10.0 million for the 2021 Second Quarter. Excluding $6.8 million of revenue related to the IIP acquisition in November 2021, IIP services revenue increased 25.5% in the 2022 Second Quarter as compared to the 2021 Second Quarter.
  • Total operating cost was $109.8 million for the 2022 Second Quarter, or 78.1% of total revenue, as compared to $92.6 million, or 73.0% of total revenue, for the 2021 Second Quarter. Operating cost related to Mature Clinics increased by $4.0 million, or 5.0%, for the 2022 Second Quarter compared to the 2021 Second Quarter. In addition, operating cost related to the industrial injury prevention services business increased by $7.8 million of which $5.7 million related to the Company’s November 2021 IIP acquisition. See table below for a detail of operating cost (in thousands):

 

 

Three Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

Operating cost related to Mature Clinics

 

$

84,216

 

 

$

80,205

 

Operating cost related to 2022 Clinic Additions

 

 

2,692

 

 

 

-

 

Operating cost related to 2021 Clinic Additions

 

 

5,666

 

 

 

2,063

 

Operating cost related to clinics sold or closed in 2022

 

 

324

 

 

 

555

 

Operating cost related to clinics sold or closed in 2021

 

 

-

 

 

 

107

 

Operating cost related to physical therapy operations

 

 

92,898

 

 

 

82,930

 

Operating cost related to management contracts

 

 

1,622

 

 

 

2,203

 

Operating cost related to industrial injury prevention services

 

 

15,315

 

 

 

7,491

 

Total operating cost

 

$

109,835

 

 

$

92,624

 

 

 

 

 

 

 

 

 

 

  • Total salaries and related costs, including all operations, were 56.8% of total revenue for the 2022 Second Quarter versus 54.3% for the 2021 Second Quarter. Rent, supplies, contract labor and other costs as a percentage of total revenue were 20.2% for the 2022 Second Quarter versus 17.6% for the 2021 Second Quarter. The provision for credit losses as a percentage of total revenue were 1.1% for 2022 Second Quarter and 2021 Second Quarter.
  • Gross profit for the 2022 Second Quarter, was $30.8 million, a decrease of $3.5 million, or 10.2%, as compared to $34.3 million for the 2021 Second Quarter. The gross profit percentage was 21.9% of total revenue for the 2022 Second Quarter as compared to 27.0% for the 2021 Second Quarter. The gross profit percentage for the Company’s physical therapy operations was 22.0% for the 2022 Second Quarter as compared to 27.4% for the 2021 Second Quarter. The gross profit percentage on management contracts was 23.7% for the 2022 Second Quarter as compared to 19.6% for the 2021 Second Quarter. The gross profit percentage for industrial injury prevention services was 21.2% for the 2022 Second Quarter as compared to 25.3% for the 2021 Second Quarter. The IIP margin in 2022 has been impacted by the lower margin profile of the Company’s November 2021 IIP acquisition. The table below details the gross profit (in thousands):

 

 

Three Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

 

 

 

 

 

 

 

Physical therapy operations

 

$

26,196

 

 

$

31,226

 

Management contracts

 

 

503

 

 

 

536

 

Industrial injury prevention services

 

 

4,122

 

 

 

2,542

 

Gross profit

 

$

30,821

 

 

$

34,304

 

 

 

 

 

 

 

 

 

 

  • Corporate office costs were $10.7 million for the 2022 Second Quarter compared to $12.1 million for the 2021 Second Quarter. Corporate office costs were 7.6% of total revenue for the 2022 Second Quarter as compared to 9.5% for the 2021 Second Quarter. The decrease was primarily due to lower estimated bonus expense in the 2022 Second Quarter than the 2021 Second Quarter.
  • Operating income for the 2022 Second Quarter was $20.1 million and $22.2 million for 2021 Second Quarter. Operating income as a percentage of total revenue was 14.3% for the 2022 Second Quarter as compared to 17.5% for the 2021 Second Quarter.
  • The loss on revaluation of put-right liability was $617,000. As part of the IIP business acquisition on November 30, 2021, the Company also agreed to the potential future purchase of a separate company under the same ownership that provides physical therapy and rehabilitation services to hospitals and other ancillary providers in a distinct market area. The owners have the right to put this transaction to the Company approximately five years, with such right having a $3.5 million value at June 30,2022, as reflected on the Company’s consolidated balance sheet in Other long-term liabilities. The value of this right will continue to be adjusted in future periods, as appropriate.
  • The provision for income tax was $4.2 million for the 2022 Second Quarter and $4.6 million for the 2021 Second Quarter. The provision for income tax as a percentage of income before taxes less net income attributable to non-controlling interest (effective tax rate) was 27.5% for the 2022 Second Quarter and 26.9% for the 2021 Second Quarter. See table below ($ in thousands):

 

 

Three Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

Income before taxes

 

$

19,495

 

 

$

22,039

 

Less: net income attributable to non-controlling interest:

 

 

 

 

 

 

 

 

Redeemable non-controlling interest - temporary equity

 

 

(2,626

)

 

 

(3,611

)

Non-controlling interest - permanent equity

 

 

(1,435

)

 

 

(1,425

)

 

 

$

(4,061

)

 

$

(5,036

)

Income before taxes less net income attributable to non-controlling interest

 

$

15,434

 

 

$

17,003

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

$

4,239

 

 

$

4,567

 

 

 

 

 

 

 

 

 

 

Percentage

 

 

27.5

%

 

 

26.9

%

 

 

 

 

 

 

 

 

 

  • Net income attributable to redeemable non-controlling interest (temporary equity) was $2.6 million for the 2022 Second Quarter and $3.6 million for the 2021 Second Quarter. Net income attributable to non-controlling interest (permanent equity) was $1.4 million for the 2022 Second Quarter and for the 2021 Second Quarter.
  • For the 2022 Second Quarter, the Company’s net income attributable to its shareholders was $11.2 million as compared to $12.4 million for the 2021 Second Quarter. In accordance with GAAP, the revaluation of redeemable non-controlling interest, net of taxes, is not included in net income but charged directly to retained earnings; however, the charge for this change is included in the earnings per basic and diluted share calculation. Inclusive of the charge for revaluation of non-controlling interest, net of taxes, the amount is $11.4 million, or $0.87 per diluted share, for the 2022 Second Quarter, and $10.5 million, or $0.82 per diluted share, for the 2021 Second Quarter.
  • For the 2022 Second Quarter, the Company’s Operating Results, a non-GAAP measure, was $11.7 million, or $0.90 per diluted share, a decrease of 6.3%, as compared to $12.4 million, or $0.96 per diluted share, for the 2021 Second Quarter. See table on page 15.
  • For the 2022 Second Quarter, the Company’s Adjusted EBITDA, a non-GAAP measure, was $21.3 million, a slight decrease from $21.4 million in the 2021 Second Quarter. See definition, explanation and calculation of Adjusted EBITDA, a non-GAAP measure, in the schedule on pages 14 and 15.

2022 Six Months Compared to 2021 Six Months

  • Reported total revenue for the 2022 Six Months was $272.4 million, an increase of 13.8% as compared to $239.3 million for the 2021 Six Months. See table below for a detail of reported total revenue (in thousands):

 

 

For the Six Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

Revenue related to Mature Clinics

 

$

211,215

 

 

$

208,531

 

Revenue related to 2022 Clinic Additions

 

 

3,312

 

 

 

-

 

Revenue related to 2021 Clinic Additions

 

 

12,346

 

 

 

2,465

 

Revenue from clinics sold or closed in 2022

 

 

861

 

 

 

1,104

 

Revenue from clinics sold or closed in 2021

 

 

-

 

 

 

392

 

Net patient revenue from physical therapy operations

 

 

227,734

 

 

 

212,492

 

Other revenue

 

 

1,770

 

 

 

1,464

 

Revenue from physical therapy operations

 

 

229,504

 

 

 

213,956

 

Revenue - Management contracts

 

 

4,351

 

 

 

5,297

 

Revenue - Industrial injury prevention services

 

 

38,505

 

 

 

20,043

 

Total Revenue

 

$

272,360

 

 

$

239,296

 

 

 

 

 

 

 

 

 

 

  • Revenue from physical therapy operations increased $15.5 million, or 7.3%, to $229.5 million for the 2022 Six Months from $214.0 million for the 2021 Six Months. The average net patient revenue per visit was $103.09 for the 2022 Six Months as compared to $104.58 for the 2021 Six Months. Total patient visits increased 8.7% to 2,209,073 for the 2022 Six Months from 2,031,858 for the 2021 Six Months.
  • Net patient revenue related to clinics opened or acquired prior to 2021 and still in operation at June 30, 2022 (“Mature Clinics”) increased $2.7 million, or 1.3%, to $211.2 million for the 2022 Six Months compared to $208.5 million for the 2021 Six Months. Visits for Mature Clinics (same store) for the 2022 Six Months increased 3.0% as compared to the 2021 Six Months. The increase in visits was partially offset by a reduction in the net patient revenue per visit.
  • IIP services revenue increased 92.1% to $38.5 million for the 2022 Six Months as compared to $20.0 million for the 2021 Six Months. Excluding $13.7 million of revenue related to the IIP acquisition in November 2021, IIP services revenue increased 24.0% in the 2022 Six Months as compared to the 2021 Six Months.
  • Total operating cost was $215.0 million for the 2022 Six Months, or 78.9% of total revenue, as compared to $179.1 million, or 74.8% of total revenue, for the 2021 Six Months. Operating cost related to Mature Clinics increased by $10.1 million for the 2022 Six Months compared to the 2021 Six Months. In addition, operating cost related to the industrial injury prevention services business increased by $15.5 million of which $11.3 million related to the recent IIP acquisition. See table below for a detail of operating cost (in thousands):

 

 

For the Six Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

Operating cost related to Mature Clinics

 

$

166,468

 

 

$

156,321

 

Operating cost related to 2022 Clinic Additions

 

 

3,083

 

 

 

-

 

Operating cost related to 2021 Clinic Additions

 

 

11,466

 

 

 

2,128

 

Operating cost related to clinics sold or closed in 2022

 

 

251

 

 

 

979

 

Operating cost related to clinics sold or closed in 2021

 

 

-

 

 

 

442

 

Operating cost - Physical therapy operations

 

 

181,268

 

 

 

159,870

 

Operating cost - Management contracts

 

 

3,453

 

 

 

4,448

 

Operating cost - Industrial injury prevention services

 

 

30,230

 

 

 

14,778

 

Total operating cost

 

$

214,951

 

 

$

179,096

 

 

 

 

 

 

 

 

 

 

  • Total salaries and related costs, including all operations, were 56.9% of total revenue for the 2022 Six Months versus 55.4% for the 2021 Six Months. Rent, supplies, contract labor and other costs as a percentage of total revenue were 20.9% for the 2022 Six Months versus 18.3% for the 2021 Six Months. The provision for credit losses as a percentage of total revenue was 1.0% for 2022 Six Months and 1.1% for 2021 Six Months.
  • Gross profit for the 2022 Six Months, was $57.4 million, a decrease of $2.8 million, or 4.6%, as compared to $60.2 million for the 2021 Six Months. The gross profit percentage was 21.1% of total revenue for the 2022 Six Months as compared to 25.2% for the 2021 Six Months. The gross profit percentage for the Company’s physical therapy operations was 21.0% for the 2022 Six Months as compared to 25.3% for the 2021 Six Months. The gross profit percentage on management contracts was 20.6% for the 2022 Six Months as compared to 16.0% for the 2021 Six Months. The gross profit percentage for industrial injury prevention services was 21.5% for the 2022 Six Months as compared to 26.3% for the 2021 Six Months. The IIP margin in 2022 has been impacted by the lower margin profile of the Company’s November 2021 IIP acquisition. The table below details the gross profit (in thousands):

 

 

For the Six Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

Physical therapy operations

 

$

48,236

 

 

$

54,086

 

Management contracts

 

 

898

 

 

 

849

 

Industrial injury prevention services

 

 

8,275

 

 

 

5,265

 

Gross profit

 

$

57,409

 

 

$

60,200

 

 

 

 

 

 

 

 

 

 

  • Corporate office costs were $22.3 million for the 2022 Six Months compared to $22.9 million for the 2021 Six Months. Corporate office costs were 8.2% of total revenue for the 2022 Six Months as compared to 9.6% for the 2021 Six Months. The decrease was primarily due to lower estimated bonus expense in the 2022 Six Months than the 2021 Six Months.
  • Operating income for the 2022 Six Months were $35.1 million and $37.3 million for 2021 Six Months. Operating income as a percentage of total revenue was 12.9% for the 2022 Six Months as compared to 15.6% for the 2021 Six Months.
  • The loss on revaluation of the put-right liability was $14,000. As part of the IIP business acquisition on November 30, 2021, the Company also agreed to the potential future purchase of a separate company under the same ownership that provides physical therapy and rehabilitation services to hospitals and other ancillary providers in a distinct market area. The owners have the right to put this transaction to the Company in approximately five years, with such right having a $3.5 million value at June 30, 2022, as reflected on the Company’s consolidated balance sheet in Other long-term liabilities. The value of this right will continue to be adjusted in future periods, as appropriate.
  • The provision for income tax was $7.7 million for the 2022 Six Months and $7.5 million for the 2021 Six Months. The provision for income tax as a percentage of income before taxes less net income attributable to non-controlling interest (effective tax rate) was 27.9% for the 2022 Six Months and 26.7% for the 2021 Six Months. See table below ($ in thousands):

 

 

For the Six Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

Income before taxes

 

$

34,975

 

 

$

36,869

 

Less: net income attributable to non-controlling interest:

 

 

 

 

 

 

 

 

Redeemable non-controlling interest - temporary equity

 

 

(5,183

)

 

 

(6,064

)

Non-controlling interest - permanent equity

 

 

(2,061

)

 

 

(2,685

)

 

 

$

(7,244

)

 

$

(8,749

)

Income before taxes less net income attributable to non-controlling interest

 

$

27,731

 

 

$

28,120

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

$

7,737

 

 

$

7,511

 

Percentage

 

 

27.9

%

 

 

26.7

%

 

 

 

 

 

 

 

 

 

  • Net income attributable to redeemable non-controlling interest (temporary equity) was $5.2 million for the 2022 Six Months and $6.1 million for the 2021 Six Months. Net income attributable to non-controlling interest (permanent equity) was $2.1 million for the 2022 Six Months and $2.7 million for the 2021 Six Months.
  • For the 2022 Six Months, the Company’s net income attributable to its shareholders was $20.0 million for the 2022 Six Months and $20.6 million for 2021 Six Months. Inclusive of the charge for revaluation of non-controlling interest, net of taxes, the amount is $20.0 million, or $1.55 per diluted share, for the 2022 Six Months, and $13.3 million, or $1.03 per diluted share, for the 2021 Six Months. See table on page 15.

  • For the 2022 Six Months, the Company’s Operating Results, a non-GAAP measure, was $20.0 million, or $1.54 per diluted share, a decrease of 3.0%, as compared to $20.6 million, or $1.60 per diluted share, for the 2021 Second Quarter. See table on page 15.
  • For the 2022 Six Months, the Company’s Adjusted EBITDA, a non-GAAP measure, was $38.8 million, an increase of 5.5% from $36.8 million in the 2021 Six Months. See definition, explanation and calculation of Adjusted EBITDA, a non-GAAP measure, in the schedule on pages 14 and 15.

Other Comprehensive Income

Concurrently with the amended credit facility, the Company entered into an interest rate swap agreement in May 2022, which has a $150 million notional value, a maturity date of June 30, 2027 and was effective on June 30, 2022. Beginning in July 2022, the Company pays a fixed rate of interest of 2.815% based on 1-month SOFR. The total interest rate in any period will also include an applicable margin based on the Company’s consolidated leverage ratio. Currently, the Company’s interest rate including the applicable margin is 4.665%. Unrealized gains and losses related to the fair value of the interest rate swap are recorded to accumulated other comprehensive income (loss), net of tax. The fair value of the interest rate swap at June 30, 2022, was $0.5 million, which has been included within current liabilities in the accompanying Consolidated Balance Sheet. The impact of the interest rate swap on the accompanying Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 was an unrealized loss of $0.4 million, net of tax.

Quarterly Dividend

The Board of Directors declared a quarterly dividend of $0.41 per share payable on September 16, 2022, to shareholders of record on August 18, 2022.

Management Revises 2022 Guidance

Management currently expects the Company’s Adjusted EBITDA for the full year of 2022 to be in the range of $73.5 million to $75.4 million and for its Operating Results to be in the range of $34.4 million to $35.8 million, or $2.65 to $2.75 per share. The change in guidance is primarily attributable to two factors:

  • Increases in the Company’s interest expense due to rising interest rates in the U.S. and the Company’s financing transaction completed in the second quarter of 2022. The Company has $150 million of fixed debt which is currently expected to generate interest at a fixed rate of 4.665% for the remainder of the year.
  • The impact of inflation on the Company’s wages and other costs which elevated during the second quarter and are expected to continue through the remainder of the year.

Please note that the earnings guidance represents projected results from existing operations and excludes future acquisitions. The annual guidance figures will not be updated unless there is a material development that causes management to believe that results will be significantly outside the given ranges.

Second Quarter 2022 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 August 4, 2022, to discuss results for the Company's 2022 Second Quarter and Six months ended June 30, 2022. Interested parties may participate in the call by dialing 1-800-459-5346 or 203-518-9544 and entering reservation number USPHQ22022 approximately 10 minutes before the call is scheduled to begin. To listen to the live call via webcast, 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 November 5, 2022, 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:

  • the multiple effects of the impact of public health crises and epidemics/pandemics, such as the novel strain of COVID-19 and its variants, for which the total financial magnitude cannot be currently estimated;
  • changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
  • revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;
  • changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients;
  • 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;
  • 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;
  • the impact of COVID-19 related vaccination and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of operations;
  • changes as the result of government enacted national healthcare reform;
  • business and regulatory conditions including federal and state regulations;
  • governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs;
  • revenue and earnings expectations;
  • legal actions, which could subject us to increased operating costs and uninsured liabilities;
  • general economic conditions, including but not limited to inflationary and recessionary periods;
  • availability and cost of qualified physical therapists;
  • personnel productivity and retaining key personnel;
  • competitive environment in the industrial injury prevention services business, which could result in the termination or nonrenewal of contractual service arrangements and other adverse financial consequences for that service line;
  • acquisitions, and the successful integration of the operations of the acquired businesses;
  • impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest (minority interests);
  • maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;
  • a security breach of our or our third party vendors’ information technology systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act;
  • maintaining clients for which we perform management and other services, as a breach or termination of those contractual arrangements by such clients could cause operating results to be less than expected;
  • maintaining adequate internal controls;
  • maintaining necessary insurance coverage;
  • availability, terms, and use of capital; and
  • weather and other seasonal factors.

In addition to the above, see Risk Factors in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021 and the additional risk factor below:

Our debt and financial obligations could adversely affect our financial condition, our ability to obtain future financing, and our ability to operate our business.

We have outstanding debt obligations that could adversely affect our financial condition and limit our ability to successfully implement our business strategy. Furthermore, from time to time, we may need additional financing to support our business and pursue our business strategy, including strategic acquisitions. Our ability to obtain additional financing, if and when required, will depend on investor demand, our operating performance, the condition of the capital markets, and other factors. We cannot assure that additional financing will be available to us on favorable terms when required, or at all.

Our loan agreements contain certain restrictions and requirements that among other things:

  • require us to maintain a quarterly fixed charge coverage ratio and minimum working capital ratio;
  • limit our ability to obtain additional financing in the future for working capital, capital expenditures and acquisitions, to fund growth or for general corporate purposes;
  • limit our future ability to refinance our indebtedness on terms acceptable to us or at all;
  • limit our flexibility in planning for or reacting to changes in our business and market conditions or in funding our strategic growth plan; and
  • impose on us financial and operational restrictions.

Our ability to meet our debt service obligations will depend on our future performance, which will be affected by the other risk factors described in our Annual Report on Form 10-K filed on March 1, 2022. If we do not generate enough cash flow to pay our debt service obligations, we may be required to refinance all or part of our existing debt, sell our assets, borrow more money or raise equity. There is no guarantee that we will be able to take any of these actions on a timely basis, on terms satisfactory to us, or at all.

If we fail to satisfy our debt service obligations or the other restrictions and requirements in our loan agreements, we could be in default. Unless cured or waived, a default would permit lenders to accelerate the maturity of the debt under the credit agreement and to foreclose upon the collateral securing the debt.

Our outstanding loans bear interest at variable rates. In response to the variable rates, we entered into entered into an interest rate swap agreement. See above for further discussion of this swap agreement.

Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. Please see the other sections of this report and our other periodic reports filed with the Securities and Exchange Commission (the “SEC”) for more information on these factors. Our forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement, regardless of the reason the statement may no longer be accurate.

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 608 outpatient physical therapy clinics in 39 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 33 physical therapy facilities for unaffiliated third parties, including hospitals and physician groups. The Company also has an industrial injury prevention services business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.

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 INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(unaudited)

 

 

 

Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

 

June 30,

2022

 

 

June 30,

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net patient revenue

 

$

118,196

 

 

$

113,238

 

 

$

227,734

 

 

$

212,492

 

Other revenue

 

 

22,460

 

 

 

13,690

 

 

 

44,626

 

 

 

26,804

 

Net revenue

 

 

140,656

 

 

 

126,928

 

 

 

272,360

 

 

 

239,296

 

Operating cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and related costs

 

 

79,939

 

 

 

68,866

 

 

 

155,088

 

 

 

132,681

 

Rent, supplies, contract labor and other

 

 

28,345

 

 

 

22,394

 

 

 

57,007

 

 

 

43,851

 

Provision for credit losses

 

 

1,551

 

 

 

1,364

 

 

 

2,856

 

 

 

2,564

 

Total operating cost

 

 

109,835

 

 

 

92,624

 

 

 

214,951

 

 

 

179,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

30,821

 

 

 

34,304

 

 

 

57,409

 

 

 

60,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate office costs

 

 

10,741

 

 

 

12,074

 

 

 

22,297

 

 

 

22,948

 

Operating income

 

 

20,080

 

 

 

22,230

 

 

 

35,112

 

 

 

37,252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliate

 

 

340

 

 

 

-

 

 

 

679

 

 

 

-

 

Other and interest income

 

 

679

 

 

 

46

 

 

 

725

 

 

 

100

 

Change in revaluation of put-right liability

 

 

(617

)

 

 

-

 

 

 

(14

)

 

 

-

 

Interest expense - debt and other, net

 

 

(987

)

 

 

(237

)

 

 

(1,527

)

 

 

(483

)

Total other income and expense

 

 

(585

)

 

 

(191

)

 

 

(137

)

 

 

(383

)

Income before taxes

 

 

19,495

 

 

 

22,039

 

 

 

34,975

 

 

 

36,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

4,239

 

 

 

4,567

 

 

 

7,737

 

 

 

7,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

15,256

 

 

 

17,472

 

 

 

27,238

 

 

 

29,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: net income attributable to non-controlling interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable non-controlling interest - temporary equity

 

 

(2,626

)

 

 

(3,611

)

 

 

(5,183

)

 

 

(6,064

)

Non-controlling interest - permanent equity

 

 

(1,435

)

 

 

(1,425

)

 

 

(2,061

)

 

 

(2,685

)

 

 

 

(4,061

)

 

 

(5,036

)

 

 

(7,244

)

 

 

(8,749

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to USPH shareholders

 

$

11,195

 

 

$

12,436

 

 

$

19,994

 

 

$

20,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share attributable to USPH shareholders

 

$

0.87

 

 

$

0.82

 

 

$

1.55

 

 

$

1.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computation - basic and diluted

 

 

12,998

 

 

 

12,902

 

 

 

12,968

 

 

 

12,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.41

 

 

$

0.35

 

 

$

0.82

 

 

$

0.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(unaudited)

 

 

 

Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

 

June 30,

2022

 

 

June 30,

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

15,256

 

 

$

17,472

 

 

$

27,238

 

 

$

29,358

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on cash flow hedge

 

 

(531

)

 

 

-

 

 

 

(531

)

 

 

-

 

Tax effect at statutory rate (federal and state) of 25.55%

 

 

136

 

 

 

-

 

 

 

136

 

 

 

-

 

Comprehensive income

 

$

14,725

 

 

$

17,472

 

 

$

26,707

 

 

$

29,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interest

 

 

(4,061

)

 

 

(5,036

)

 

 

(7,244

)

 

 

(8,749

)

Comprehensive income attributable to USPH shareholders

 

$

10,664

 

 

$

12,436

 

 

$

19,463

 

 

$

20,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

 

 

 

 

 

June 30,

2022

 

 

December 31,

2021

 

ASSETS

 

(unaudited)

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

48,572

 

 

$

28,567

 

Patient accounts receivable, less allowance for credit losses of $2,948 and $2,768, respectively

 

 

50,549

 

 

 

46,272

 

Accounts receivable - other

 

 

18,915

 

 

 

16,144

 

Other current assets

 

 

3,810

 

 

 

4,183

 

Total current assets

 

 

121,846

 

 

 

95,166

 

Fixed assets:

 

 

 

 

 

 

 

 

Furniture and equipment

 

 

60,379

 

 

 

58,743

 

Leasehold improvements

 

 

41,038

 

 

 

39,194

 

Fixed assets, gross

 

 

101,417

 

 

 

97,937

 

Less accumulated depreciation and amortization

 

 

77,188

 

 

 

74,958

 

Fixed assets, net

 

 

24,229

 

 

 

22,979

 

Operating lease right-of-use assets

 

 

101,274

 

 

 

96,427

 

Investment in unconsolidated affiliate

 

 

12,346

 

 

 

12,215

 

Goodwill

 

 

442,761

 

 

 

434,679

 

Other identifiable intangible assets, net

 

 

92,655

 

 

 

86,382

 

Other assets

 

 

1,333

 

 

 

1,578

 

Total assets

 

$

796,444

 

 

$

749,426

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable - trade

 

$

3,793

 

 

$

3,268

 

Accounts payable - due to seller of acquired business

 

 

3,203

 

 

 

3,203

 

Accrued expenses

 

 

41,246

 

 

 

45,705

 

Current portion of operating lease liabilities

 

 

32,083

 

 

 

30,475

 

Current portion of term loan and notes payable

 

 

4,780

 

 

 

830

 

Total current liabilities

 

 

85,105

 

 

 

83,481

 

Notes payable, net of current portion

 

 

4,258

 

 

 

3,587

 

Revolving line of credit

 

 

-

 

 

 

114,000

 

Term Loan, net of current portion and deferred financing costs

 

 

144,631

 

 

 

-

 

Deferred taxes

 

 

19,483

 

 

 

14,385

 

Operating lease liabilities, net of current portion

 

 

77,776

 

 

 

74,185

 

Other long-term liabilities

 

 

4,858

 

 

 

7,345

 

Total liabilities

 

 

336,111

 

 

 

296,983

 

 

 

 

 

 

 

 

 

 

Redeemable non-controlling interest - temporary equity

 

 

151,400

 

 

 

155,262

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

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,

 

 

 

 

 

 

 

 

15,218,982 and 15,126,160 shares issued, respectively

 

 

152

 

 

 

151

 

Additional paid-in capital

 

 

106,801

 

 

 

102,688

 

Accumulated other comprehensive loss

 

 

(395

)

 

 

-

 

Retained earnings

 

 

232,247

 

 

 

224,395

 

Treasury stock at cost, 2,214,737 shares

 

 

(31,628

)

 

 

(31,628

)

Total USPH shareholders’ equity

 

 

307,177

 

 

 

295,606

 

Non-controlling interest - permanent equity

 

 

1,756

 

 

 

1,575

 

Total USPH shareholders' equity and non-controlling interest - permanent equity

 

 

308,933

 

 

 

297,181

 

Total liabilities, redeemable non-controlling interest,

 

 

 

 

 

 

 

 

USPH shareholders' equity and non-controlling interest - permanent equity

 

$

796,444

 

 

$

749,426

 

 

 

 

 

 

 

 

 

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(unaudited)

 

 

 

Six Months Ended

 

 

 

June 30,

2022

 

 

June 30,

2021

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income including non-controlling interest and earnings from unconsolidated affiliates, net

 

$

27,238

 

 

$

29,358

 

Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,298

 

 

 

5,484

 

Provision for credit losses

 

 

2,856

 

 

 

2,564

 

Equity-based awards compensation expense

 

 

3,660

 

 

 

3,405

 

Deferred income taxes

 

 

4,307

 

 

 

3,160

 

Loss on revaluation of put-right liability

 

 

14

 

 

 

-

 

(Gain) loss on sale of clinics and fixed assets

 

 

(614

)

 

 

106

 

Earnings in unconsolidated affiliate

 

 

(679

)

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Increase in patient accounts receivable

 

 

(7,459

)

 

 

(5,325

)

(Increase) decrease in accounts receivable - other

 

 

(2,862

)

 

 

129

 

(Increase) decrease in other assets

 

 

230

 

 

 

(255

)

Decrease in accounts payable and accrued expenses

 

 

(3,891

)

 

 

(3,672

)

(Decrease) increase in other long-term liabilities

 

 

(2,587

)

 

 

602

 

Net cash provided by operating activities

 

 

27,511

 

 

 

35,556

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of fixed assets

 

 

(4,569

)

 

 

(3,301

)

Purchase of majority interest in businesses, net of cash acquired

 

 

(11,799

)

 

 

(20,402

)

Purchase of redeemable non-controlling interest, temporary equity

 

 

(8,648

)

 

 

(9,536

)

Purchase of non-controlling interest, permanent equity

 

 

(156

)

 

 

-

 

Proceeds on sales of partnership interest, clinics and fixed assets

 

 

740

 

 

 

(168

)

Distributions from unconsolidated affiliate

 

 

548

 

 

 

-

 

Proceeds on sales of redeemable non-controlling interest-temporary

 

 

344

 

 

 

32

 

Net cash used in investing activities

 

 

(23,540

)

 

 

(33,375

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Distributions to non-controlling interest, permanent and temporary equity

 

 

(7,202

)

 

 

(9,398

)

Cash dividends paid to shareholders

 

 

(10,659

)

 

 

(9,028

)

Proceeds from revolving line of credit

 

 

61,000

 

 

 

128,000

 

Proceeds from term loan

 

 

150,000

 

 

 

-

 

Payments on revolving line of credit

 

 

(175,000

)

 

 

(106,000

)

Principal payments on notes payable

 

 

(338

)

 

 

(4,207

)

(Payment) receipt of Medicare Accelerated and Advance Funds

 

 

-

 

 

 

(14,054

)

Payment of deferred financing costs

 

 

(1,779

)

 

 

-

 

Other

 

 

12

 

 

 

7

 

Net cash used in financing activities

 

 

16,034

 

 

 

(14,680

)

Net decrease in cash and cash equivalents

 

 

20,005

 

 

 

(12,499

)

Cash and cash equivalents - beginning of period

 

 

28,567

 

 

 

32,918

 

Cash and cash equivalents - end of period

 

$

48,572

 

 

$

20,419

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Income taxes

 

$

4,524

 

 

$

6,967

 

Interest paid

 

$

1,319

 

 

$

741

 

Non-cash investing and financing transactions during the period:

 

 

 

 

 

 

 

 

Purchase of businesses - seller financing portion

 

$

374

 

 

$

550

 

Purchase of businesses - contingent consideration

 

$

-

 

 

$

1,000

 

Notes payable related to purchase of redeemable non-controlling interest, temporary equity

 

$

948

 

 

$

-

 

Notes payable due to purchase of non-controlling interest, permanent equity

 

$

296

 

 

$

-

 

Notes receivable related to sale of partnership interest

 

$

-

 

 

$

287

 

Notes receivable related to sale of partnership interest - redeemable non-controlling interest

 

$

1,476

 

 

$

-

 

 

 

 

 

 

 

 

 

 

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, a non-GAAP measure, equals net income attributable to USPH shareholders per the consolidated statements of income less the change in the revaluation of the put-right liability. In accordance with GAAP, the revaluation of redeemable non-controlling interest, net of tax, is included in the earnings per basic and diluted share calculation, although it is not included in net income but charged directly to retained earnings.

Adjusted EBITDA is defined as net income attributable to USPH shareholders before interest income, interest expense, taxes, depreciation, amortization, gain on revaluation of put-right liability, equity-based awards compensation expense and related portion for non-controlling interests. 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.

Management uses Operating Results and Adjusted EBITDA, which eliminates certain items described above that can be subject to volatility and unusual costs, as one the principal measures to evaluate and monitor financial performance period over period. Management believes that Operating Results and Adjusted EBITDA 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 redeemable instruments and therefore have different equity structures.

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.

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

OPERATING RESULTS AND ADJUSTED EBITDA

2022 PERIODS COMPARED TO 2021 PERIODS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

 

2021

*

 

 

2022

 

 

 

2021

*

Computation of earnings per share - USPH shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to USPH shareholders

 

$

11,195

 

 

$

12,436

 

 

$

19,994

 

 

$

20,609

 

Credit (charges) to retained earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revaluation of redeemable non-controlling interest

 

 

210

 

 

 

(2,549

)

 

 

57

 

 

 

(9,819

)

Tax effect at statutory rate (federal and state) of 25.55%

 

 

(54

)

 

 

651

 

 

 

(15

)

 

 

2,508

 

 

 

$

11,351

 

 

$

10,538

 

 

$

20,036

 

 

$

13,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (basic and diluted)

 

$

0.87

 

 

$

0.82

 

 

$

1.55

 

 

$

1.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in revaluation of put-right liability

 

 

617

 

 

 

-

 

 

 

14

 

 

 

-

 

Revaluation of redeemable non-controlling interest

 

 

(210

)

 

 

2,549

 

 

 

(57

)

 

 

9,819

 

Tax effect at statutory rate (federal and state)

 

 

(104

)

 

 

(651

)

 

 

11

 

 

 

(2,508

)

Operating Results (a non-GAAP measure)

 

$

11,654

 

 

$

12,436

 

 

$

20,004

 

 

$

20,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted Operating Results per share (a non-GAAP measure)

 

$

0.90

 

 

$

0.96

 

 

$

1.54

 

 

$

1.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computation - basic and diluted

 

 

12,998

 

 

 

12,902

 

 

 

12,968

 

 

 

12,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to USPH shareholders

 

$

11,195

 

 

$

12,436

 

 

$

19,994

 

 

$

20,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

3,474

 

 

 

2,803

 

 

 

7,298

 

 

 

5,484

 

Other and interest income

 

 

(679

)

 

 

(46

)

 

 

(725

)

 

 

(100

)

Change in revaluation of put-right liability

 

 

617

 

 

 

-

 

 

 

14

 

 

 

 

 

Interest expense - debt and other, net

 

 

987

 

 

 

236

 

 

 

1,527

 

 

 

483

 

Provision for income taxes

 

 

4,239

 

 

 

4,567

 

 

 

7,737

 

 

 

7,511

 

Equity-based awards compensation expense

 

 

1,814

 

 

 

1,754

 

 

 

3,660

 

 

 

3,405

 

Allocation to non-controlling interests

 

 

(300

)

 

 

(305

)

 

 

(697

)

 

 

(602

)

Adjusted EBITDA (a non-GAAP measure)

 

$

21,347

 

 

$

21,445

 

 

$

38,808

 

 

$

36,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Revised to conform to current year presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

RECAP OF PHYSICAL THERAPY OPERATIONS

CLINIC COUNT

 

Date

 

Number of Clinics

 

 

 

March 31, 2021

 

564

June 30, 2021

 

575

September 30, 2021

 

579

December 31, 2021

 

591

 

 

 

March 31, 2022

 

601

June 30, 2022

 

608

 

 

 

 

Contacts

U.S. Physical Therapy, Inc.

Carey Hendrickson, Chief Financial Officer

email: chendrickson@usph.com

Chris Reading, Chief Executive Officer

(713) 297-7000

Three Part Advisors

Joe Noyons

(817) 778-8424

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