U.S. Physical Therapy Announces First Quarter 2017 Select Preliminary Operating and Financial Results
10 May 2017 - 10:00PM
Business Wire
U.S. Physical Therapy, Inc. ("USPH") (NYSE: USPH) is a national
operator of outpatient physical therapy clinics. The Company today
reported select operating and financial results for the first
quarter ended March 31, 2017. The below financial information is
preliminary and unaudited, and subject to adjustment based on the
Company’s final review.
First Quarter 2017 Compared to First
Quarter 2016 - Select Preliminary Operating and Financial
Results
- Total net revenues increased 12.3% from
$86.9 million in the 2016 period to $97.6 million in the 2017
period, primarily due to a 10.1% increase in net patient revenues
from the physical therapy operations, higher revenues from
management contracts due to an increase in the number of facilities
managed by the Company and one month of revenues from the workforce
performance solutions business acquired in March 2017.
- Net patient revenues from physical
therapy operations increased approximately $8.6 million to $93.7
million in the 2017 period from $85.0 million in the 2016 period
due to an increase in total patient visits of 10.3% from 808,000 to
892,000 partially offset by a $0.18 decrease in average net patient
revenue per visit to $105.04 from $105.22. Revenues from management
contracts and other, excluding the workforce performance solutions
business, was $2.4 million.
- The revenues from the recently acquired
workforce performance solutions business was $1.5 million for the
month of March 2017.
- Average physical therapy patient visits
per day per clinic increased to 25.2 in the first quarter of 2017
from 24.7 in the 2016 period.
- Same store revenues and visits
increased slightly for de novo and acquired clinics open for one
year or more. The same store net rate per visit was flat.
Other Financial and Operational
Information
- On January 3, 2017, the Company
acquired a 70% interest in a physical therapy practice that owns
and operates 17 clinics and manages an additional 8 clinics.
- Effective March 1, 2017, the Company
acquired a 55% interest in a leading provider of workforce
performance solutions. Services provided include onsite injury
prevention and rehabilitation, performance optimization and
ergonomic assessments.
- The aggregate consideration paid for
the two acquisitions was $18.0 million of which $17.1 million was
paid in cash and $0.9 million in notes payable.
- As of March 31, 2017 total patient
accounts receivable were $43.2 million, net of $1.9 million of
allowance for doubtful accounts.
- The average age of the Company’s
accounts receivables was 39 days at March 31, 2017.
- Borrowings under the Company’s amended
credit agreement totaled $58.0 million at March 31, 2017.
- Notes payable to selling shareholders
as of March 31, 2017 were $6.0 million.
- As of March 31, 2017, the Company’s
cash balance was $25.2 million.
- As of the end of the first quarter of
2017, net debt (third party debt minus cash) was $38.8
million.
Management’s Comments
Chris Reading, Chief Executive Officer, said, “Business revenues
and patient volume remains strong. Development activities, both de
novo and acquisition related, are very healthy. Additionally, we
have added to our team and resources recently to further strengthen
our development related activities. While we continue to move
our Company’s operations forward, we are also working diligently to
complete the steps necessary to become current in our filings with
the Securities and Exchange Commission. Thank you, our
shareholders, for your continued support.”
Accounting Correction for Redeemable
Non-Controlling Interests and Restatement of Prior Period Financial
Statements
As previously disclosed on March 17, 2017, the Company filed a
Form 12b-25, Notification of Late Filing, with the Securities and
Exchange Commission (“SEC”) regarding the delayed filing of the
Annual Report on Form 10-K for the fiscal year ended December 31,
2016 (the “2016 Form 10-K”) due to management’s need for additional
time to complete its review of the appropriate accounting treatment
for redeemable non-controlling interests of its acquired
partnerships. On March 31, 2017, the Company further announced that
it was working to be in a position to file its 2016 Form 10-K with
the SEC as soon as possible in April 2017. On April 28, 2017, the
Company disclosed that it did not meet its target of filing the
2016 Form 10-K in April 2017 and continues to work diligently to
complete the preparation of its consolidated financial statements
in order to file both its 2016 Form 10-K and its Quarterly Report
on Form 10-Q for the quarter ended March 31, 2017 as soon as is
possible.
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 risk that the review for the
correction in accounting method for redeemable non-controlling
interests could result in the determination that the effect of the
matters under review are materially greater or lesser than the
Company currently believes;
- the risk that the correction in the
accounting method for redeemable non-controlling interests could
adversely affect the Company’s ability to make timely filings with
the Securities and Exchange Commission;
- the risk of damage to the Company’s
business and reputation arising from the correction in accounting
method for redeemable non-controlling interests, and potential
claims or proceedings relating to such matters;
- changes as the result of government
enacted national healthcare reform;
- changes in Medicare guidelines and
reimbursement or failure of our clinics to maintain their Medicare
certification status;
- revenues 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 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;
- possible legal actions; which could
subject us to increased operating costs and uninsured
liabilities;
- changes in reimbursement rates or
payment methods from third party payors including government
agencies and deductibles and co-pays owed by patients;
- revenues and earnings
expectations;
- general economic conditions;
- availability and cost of qualified
physical and occupational therapists;
- personnel productivity and retaining
personnel;
- competitive, economic or reimbursement
conditions in our markets which may require us to reorganize or
close certain operations 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 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 applicable.
About U.S. Physical Therapy,
Inc.
Founded in 1990, U.S. Physical Therapy, Inc. operates 557
outpatient physical and occupational therapy 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, treatment for neurologically-related injuries and
rehabilitation of injured workers. Besides owning and operating
clinics, the Company manages 30 physical therapy facilities for
third parties, including hospitals and physician groups. The
Company also 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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version on businesswire.com: http://www.businesswire.com/news/home/20170510005284/en/
U.S. Physical Therapy, Inc.Larry McAfee, (713) 297-7000Chief
Financial OfficerorChris Reading, (713) 297-7000Chief Executive
OfficerorThree Part AdvisorsJoe Noyons, (817) 778-8424
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