U.S. Physical Therapy Reports First Quarter 2021 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 services, today reported results for the first quarter ended March 31, 2021 (“2021 First Quarter”).
HIGHLIGHTS
-
Operating Results (defined below) per share was
$0.64 for the 2021 First Quarter, an increase of$0.34 from Operating Results per share of$0.30 in the first quarter ended March 31, 2020 (“2020 First Quarter”). -
Adjusted EBITDA (defined below) was
$15.6 million in the 2021 First Quarter, an increase of$7.6 million from Adjusted EBITDA of$8.0 million in the 2020 First Quarter. - Average visits per clinic per day was 27.1 in the 2021 First Quarter, up from 26.2 in the 2020 First Quarter.
-
The net rate per patient visit increased
$1.61 per visit to$104.72 in the 2021 First Quarter compared to$103.11 in the 2020 First Quarter. -
Net patient revenues was
$99.2 million in the 2021 First Quarter, a slight decrease from$100.1 million in the 2020 First Quarter, a result of having one less business day in the 2021 First Quarter than in the 2020 First Quarter and 24 fewer clinics open on average in the 2021 First Quarter. -
Total revenue was consistent between the 2021 and 2020 First Quarters at approximately
$112.0 million . -
Total operating costs (excluding closure costs) decreased by
$6.8 million to$86.4 million in the 2021 First Quarter compared to$93.3 million in the 2020 First Quarter. -
March 2021 was the strongest month in the Company’s history with record highs in visits per clinic per day (29.3), physical therapy revenue (
$40.3 million ), total revenue ($43.9 million ) and Operating Income ($8.6 million ). -
The Company acquired
70% of the equity interest in a five-clinic physical therapy practice in the 2021 First Quarter. -
The Company’s Board of Directors reinstated dividends in the 2021 First Quarter, declaring a dividend of
$0.35 per share in March 2021, which was paid on April 9, 2021. The Company announced today that its Board of Directors has declared a dividend of the same amount for the second quarter of 2021. -
Management increased its range of earnings guidance for 2021 to Operating Results per share of
$2.68 t o$2.78 from the previous range of$2.40 t o$2.52 due to better than expected performance in the 2021 First Quarter, the impact of the acquisition closed in the 2021 First Quarter, and the extension of2% sequestration relief on Medicare payments through December 31, 2021 (previously scheduled to end on March 31, 2021).
SUMMARY OF FIRST QUARTER RESULTS
For the 2021 First Quarter, USPH’s Operating Results was
For the 2021 First Quarter, USPH’s net income attributable to its shareholders was
As previously disclosed in a series of filings with the SEC and further described in detail in our Quarterly Reports on Form 10-Q for the first three quarters of 2020 and our Annual Report on Form 10-K, the Company’s results were negatively impacted by the effects of the COVID-19 pandemic in the 2020 First Quarter, especially in March 2020. Physical therapy patient volumes per day per clinic for the 2021 First Quarter were 27.1, which is at or near pre-pandemic levels, compared to 26.2 in the 2020 First Quarter. The Company’s industrial injury prevention business has been less affected by the pandemic.
First Quarter 2021 Compared to First Quarter 2020
-
Reported net revenues in the 2021 First Quarter was
$112.4 million as compared to$112.7 million in the 2020 First Quarter. See table below for a detail of reported net revenues (in thousands):
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
||
Revenues: |
|
|
|
|
|
|
||
Net patient revenues |
|
$ |
99,254 |
|
|
$ |
100,126 |
|
Management contract revenue |
|
|
2,559 |
|
|
|
2,149 |
|
Other patient revenues |
|
|
546 |
|
|
|
566 |
|
Physical therapy operations |
|
|
102,359 |
|
|
|
102,841 |
|
Industrial injury prevention services |
|
|
10,009 |
|
|
|
9,876 |
|
|
|
$ |
112,368 |
|
|
$ |
112,717 |
|
-
Net patient revenues from physical therapy operations decreased
$0.9 million , or0.9% , to$99.2 million in 2021 First Quarter from$100.1 million in 2020 First Quarter. Included in net patient revenues are revenues related to clinics sold or closed in 2021 and 2020 of$0.1 million in 2021 First Quarter and$3.5 million in 2020 First Quarter. During 2021 First Quarter, the Company sold its interest in 2 clinics and closed 1 clinic. During the full year of 2020, the Company sold its interest in 14 clinics and closed 34 clinics. For comparison purposes, adjusted for revenue from the clinics sold or closed, net patient revenues from physical therapy operations was approximately$99.1 million in First Quarter 2021, inclusive of$5.3 million related to clinics opened or acquired in the 2021 First Quarter (“2021 Clinic Additions”) and 2020 year (“2020 Clinic Additions”), together referred to as Clinic Additions, and$96.6 million in First Quarter 2020. Net patient revenues related to clinics opened or acquired prior to 2020 and still in operations at March 31, 2021 (“Mature Clinics) decreased$1.8 million in the 2021 First Quarter compared to the 2020 First Quarter. See table below for a detail of net patient revenues from physical therapy operations (in thousands):
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
||
Revenue related to Mature Clinics |
|
$ |
93,820 |
|
|
$ |
95,639 |
|
Revenue related to 2021 Clinic Additions |
|
|
91 |
|
|
|
- |
|
Revenue related to 2020 Clinic Additions |
|
|
5,201 |
|
|
|
978 |
|
Revenue from clinics sold or closed in 2021 |
|
|
116 |
|
|
|
231 |
|
Revenue from clinics sold or closed in 2020 |
|
|
26 |
|
|
|
3,278 |
|
|
|
$ |
99,254 |
|
|
$ |
100,126 |
|
-
The average net patient revenue per visit was
$104.72 for the 2021 First Quarter as compared to$103.11 for the 2020 First Quarter, including all clinics operational during such periods. Total patient visits were 947,788 in the 2021 First Quarter and 971,023 for the 2020 First Quarter.
-
Revenue from physical therapy management contracts was
$2.6 million for the 2021 First Quarter as compared to$2.1 million in the 2020 First Quarter.
-
Revenue from the industrial injury prevention business was
$10.0 million in the 2021 First Quarter as compared to$9.9 million in the 2020 First Quarter.
-
Other miscellaneous revenue was
$0.5 million in the 2021 First Quarter and$0.6 million in the 2020 First Quarter. Other miscellaneous revenue includes a variety of services, including athletic trainers provided for schools and athletic events.
-
Total operating costs, excluding closure costs, were
$86.4 million in the 2021 First Quarter, or76.9% of net revenues, a reduction of 590 basis points as compared to$93.3 million in the 2020 First Quarter, or82.8% of net revenues. Included in operating costs for the 2021 First Quarter was$4.8 million related to Clinic Additions, of which$4.6 million is associated with 2020 Clinic Additions. Operating costs for Mature Clinics decreased by$6.9 million in the 2021 First Quarter compared to the 2020 First Quarter. In addition, operating costs related to the industrial injury prevention business decreased by$0.9 million . See table below for a detail of operating costs, excluding closure costs (in thousands):
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
||
Operating costs related to Mature Clinics |
|
$ |
71,971 |
|
|
$ |
78,824 |
|
Operating costs related to 2021 Clinic Additions |
|
|
156 |
|
|
|
- |
|
Operating costs related to 2020 Clinic Additions |
|
|
4,638 |
|
|
|
759 |
|
Operating costs related to clinics sold or closed in 2021 |
|
|
156 |
|
|
|
263 |
|
Operating costs related to clinics sold or closed in 2020 |
|
|
(18 |
) |
|
|
3,404 |
|
Physical therapy management contracts |
|
|
2,245 |
|
|
|
1,812 |
|
Physical therapy operations |
|
|
79,148 |
|
|
|
85,062 |
|
Industrial injury prevention services |
|
|
7,287 |
|
|
|
8,212 |
|
|
|
$ |
86,435 |
|
|
$ |
93,274 |
|
-
Total salaries and related costs, including physical therapy operations and the industrial injury prevention business, were
56.8% of net revenues in the 2021 First Quarter versus61.2% in the 2020 First Quarter. Rent, supplies, contract labor and other costs as a percentage of net revenues were19.1% in the 2021 First Quarter versus20.3% in the 2020 First Quarter. The provision for credit losses as a percentage of net revenue was1.1% in the 2021 First Quarter and1.2% in the 2020 First Quarter.
-
Gross profit for the 2021 First Quarter, excluding closure costs, was
$25.9 million , an increase of$6.5 million , or approximately33.4% , as compared to$19.4 million in the 2020 First Quarter. The gross profit percentage, excluding closure costs, was23.1% of net revenue in the 2021 First Quarter, an increase of 590 basis points as compared to17.2% in the 2020 First Quarter. The gross profit percentage for the Company’s physical therapy clinics, excluding closure costs, was22.9% in the 2021 First Quarter, an improvement of 560 basis points as compared to17.3% in the 2020 First Quarter. The gross profit percentage on physical therapy management contracts was12.3% in the 2021 First Quarter, a decrease of 340 basis points as compared to15.7% in the 2020 First Quarter. During the quarter, the physical therapy management contracts business had a charge to provision for credit losses of$0.1 million . The gross profit percentage for the industrial injury prevention business was27.2% in the 2021 First Quarter, an improvement of 1040 basis points as compared to16.8% in the 2020 First Quarter. The table below details the gross profit, excluding closure costs (in thousands):
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
||
Gross profit, excluding closure costs: |
|
|
|
|
|
|
||
Physical therapy clinics |
|
$ |
22,897 |
|
|
$ |
17,442 |
|
Management contracts |
|
|
314 |
|
|
|
337 |
|
Industrial injury prevention services |
|
|
2,722 |
|
|
|
1,664 |
|
Gross profit, excluding closure costs |
|
$ |
25,933 |
|
|
$ |
19,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical therapy operations - closure costs |
|
|
37 |
|
|
|
3,752 |
|
Gross profit |
|
$ |
25,896 |
|
|
$ |
15,691 |
|
-
Corporate office costs were
$10.9 million in the 2021 First Quarter compared to$11.7 million in the 2020 First Quarter. Corporate office costs were9.7% of net revenues for the 2021 First Quarter as compared to10.4% for the 2020 First Quarter.
-
Operating income for the 2021 First Quarter was
$15.0 million , an increase of$11.0 million , or274.2% , as compared to$4.0 million for the 2020 First Quarter. Operating income as a percentage of net revenue increased by 980 basis points from3.6% in the 2020 period to13.4% in 2021. The 2020 First Quarter included$3.8 million related to clinic closures.
-
Interest expense was
$246,000 in the 2021 First Quarter and$427,000 in the 2020 First Quarter due to reduced borrowings under the Company’s revolving credit line.
-
The provision for income tax was
$2.9 million for the 2021 First Quarter and$0.3 million for the 2020 First Quarter. The provision for income tax as a percentage of income before taxes less net income attributable to non-controlling interest (effective tax rate) was26.5% for the 2021 First Quarter and22.3% for the 2020 First Quarter. See table below ($ in thousands):
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
||
|
|
|
|
|
|
|
||
Income before taxes |
|
$ |
14,830 |
|
|
$ |
3,630 |
|
|
|
|
|
|
|
|
|
|
Less: net income attributable to non-controlling interests: |
|
|
|
|
|
|
|
|
Redeemable non-controlling interests - temporary equity |
|
|
(2,453 |
) |
|
|
(1,796 |
) |
Non-controlling interests - permanent equity |
|
|
(1,260 |
) |
|
|
(526 |
) |
|
|
$ |
(3,713 |
) |
|
$ |
(2,322 |
) |
|
|
|
|
|
|
|
|
|
Income before taxes less net income attributable to non-controlling interests |
|
$ |
11,117 |
|
|
$ |
1,308 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
$ |
2,944 |
|
|
$ |
292 |
|
|
|
|
|
|
|
|
|
|
Percentage |
|
|
26.5 |
% |
|
|
22.3 |
% |
|
|
|
|
|
|
|
|
|
-
Net income attributable to redeemable non-controlling interests (temporary equity) was
$2.5 million in the 2021 First Quarter and$1.8 million in the 2020 First Quarter. Net income attributable to non-controlling interests (permanent equity) was$1.3 million in the 2021 First Quarter and$0.5 million in the 2020 First Quarter.
Medicare Accelerated and Advance Payment Program (“MAAPP Funds”)
In response to the COVID-19 pandemic, the federal government approved the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act allowed for qualified healthcare providers to receive advanced payments under the MAAPP Funds during the COVID-19 pandemic. Under this program, healthcare providers could choose to receive advanced payments for future Medicare services provided. The Company applied for and received approval from Centers for Medicare & Medicaid Services (“CMS”) in April 2020. The Company recorded the
Relief Funds
On March 27, 2020, the CARES Act was enacted. The CARES Act provided additional waivers, reimbursement, grants and other funds to assist health care providers during the COVID-19 pandemic, including
Through December 31, 2020, the Company’s consolidated subsidiaries received approximately
Other Financial Measures
For the 2021 First Quarter, the Company's Adjusted EBITDA was
Acquisition in First Quarter 2021
As previously reported, the Company acquired a
Quarterly Dividend
On May 3, 2021, the Company’s Board of Directors declared a dividend of
Renewal of Credit Agreement
As previously reported, on January 29, 2021, the Company completed the renewal of its bank credit facility, extending the maturity date from November 30, 2021 to November 30, 2025. The commitment under the facility remains at
Management Revises 2021 Earnings Guidance
Management currently expects the Company’s Operating Results for 2021 to be in the range of
This earnings range is based on an estimated annual effective tax rate of approximately
Management’s Comments
Chris Reading, Chief Executive Officer, said, “I am very pleased by the way our team has navigated and responded throughout the entirety of this ever-evolving pandemic period. We were able to finish this quarter in very strong fashion and we look forward to making continued progress and getting more good things done. I want to especially thank our clinicians who have endured more than a year of frequent adjustments in order to keep our people and our patients safe. They continue to do an excellent job which is evidenced at least in part by how our patient volume has grown throughout this period and now exceeds pre-Covid levels.”
Carey Hendrickson, Chief Financial Officer, said, “Our balance sheet remains in an excellent position. With continued strong cash generation in the first quarter, our line of credit balance was unchanged from the beginning to the end of the quarter and we maintained an overall net cash position at quarter-end, even with the
First Quarter 2021 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 6, 2021 to discuss results for the Company's 2021 First Quarter. Interested parties may participate in the call by dialing 1-888-335-5539 or 973-582-2857 and entering reservation number 8072368 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 6, 2021 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 (coronavirus) which the financial magnitude cannot be currently estimated;
- 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 and/or enrollment status, including the Medicare reimbursement reductions;
- revenue we receive from Medicare and Medicaid being subject to potential retroactive reductions;
- 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;
- 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 changes in the 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;
- competitive environment in the industrial injury prevention business, which could result in the termination or non-renewal of contractual service arrangements and other adverse financial consequences for that service line;
- 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;
- 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 adequate internal controls;
- maintaining necessary insurance coverage;
- availability, terms, and use of capital; and
- weather and other seasonal factors.
See Risk Factors in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.
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 564 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 40 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 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 |
|
|||||
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
||
Net patient revenues |
|
$ |
99,254 |
|
|
$ |
100,126 |
|
Other revenues |
|
|
13,114 |
|
|
|
12,591 |
|
Net revenues |
|
|
112,368 |
|
|
|
112,717 |
|
Operating costs: |
|
|
|
|
|
|
|
|
Salaries and related costs |
|
|
63,815 |
|
|
|
69,004 |
|
Rent, supplies, contract labor and other |
|
|
21,420 |
|
|
|
22,909 |
|
Provision for credit losses |
|
|
1,200 |
|
|
|
1,361 |
|
Closure costs - lease and other |
|
|
37 |
|
|
|
1,893 |
|
Closure costs - derecognition of goodwill |
|
|
- |
|
|
|
1,859 |
|
Total operating costs |
|
|
86,472 |
|
|
|
97,026 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
25,896 |
|
|
|
15,691 |
|
|
|
|
|
|
|
|
|
|
Corporate office costs |
|
|
10,874 |
|
|
|
11,677 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
15,022 |
|
|
|
4,014 |
|
|
|
|
|
|
|
|
|
|
Other income and expense |
|
|
|
|
|
|
|
|
Interest and other income, net |
|
|
54 |
|
|
|
43 |
|
Interest expense - debt and other |
|
|
(246 |
) |
|
|
(427 |
) |
Total other income and expense |
|
|
(192 |
) |
|
|
(384 |
) |
|
|
|
|
|
|
|
|
|
Income before taxes |
|
|
14,830 |
|
|
|
3,630 |
|
Provision for income taxes |
|
|
2,944 |
|
|
|
292 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
11,886 |
|
|
|
3,338 |
|
|
|
|
|
|
|
|
|
|
Less: net income attributable to non-controlling interests: |
|
|
|
|
|
|
|
|
Redeemable non-controlling interests - temporary equity |
|
|
(2,453 |
) |
|
|
(1,796 |
) |
Non-controlling interests - permanent equity |
|
|
(1,260 |
) |
|
|
(526 |
) |
|
|
|
(3,713 |
) |
|
|
(2,322 |
) |
|
|
|
|
|
|
|
|
|
Net income attributable to USPH shareholders |
|
$ |
8,173 |
|
|
$ |
1,016 |
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share attributable to USPH shareholders |
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
Shares used in computation - basic and diluted |
|
|
12,870 |
|
|
|
12,796 |
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
0.35 |
|
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS, EXCEPT PER SHARE DATA) (unaudited) |
||||||||
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
||
ASSETS |
(unaudited) |
|||||||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
17,937 |
|
|
$ |
32,918 |
|
Patient accounts receivable, less allowance for credit losses of |
|
|
45,394 |
|
|
|
41,906 |
|
Accounts receivable - other |
|
|
8,621 |
|
|
|
9,039 |
|
Other current assets |
|
|
3,846 |
|
|
|
3,773 |
|
Total current assets |
|
|
75,798 |
|
|
|
87,636 |
|
Fixed assets: |
|
|
|
|
|
|
|
|
Furniture and equipment |
|
|
56,754 |
|
|
|
55,426 |
|
Leasehold improvements |
|
|
35,492 |
|
|
|
35,320 |
|
Fixed assets, gross |
|
|
92,246 |
|
|
|
90,746 |
|
Less accumulated depreciation and amortization |
|
|
70,485 |
|
|
|
69,081 |
|
Fixed assets, net |
|
|
21,761 |
|
|
|
21,665 |
|
Operating lease right-of-use assets |
|
|
81,553 |
|
|
|
81,595 |
|
Goodwill |
|
|
360,176 |
|
|
|
345,646 |
|
Other identifiable intangible assets, net |
|
|
57,593 |
|
|
|
56,280 |
|
Other assets |
|
|
1,509 |
|
|
|
1,539 |
|
Total assets |
|
$ |
598,390 |
|
|
$ |
594,361 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTERESTS |
||||||||
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable - trade |
|
$ |
1,955 |
|
|
$ |
1,335 |
|
Accounts payable - purchase of non-controlling interest |
|
|
4,828 |
|
|
|
- |
|
Accrued expenses |
|
|
51,671 |
|
|
|
59,746 |
|
Current portion of operating lease liabilities |
|
|
27,292 |
|
|
|
27,512 |
|
Current portion of notes payable |
|
|
5,079 |
|
|
|
4,899 |
|
Total current liabilities |
|
|
90,825 |
|
|
|
93,492 |
|
Notes payable, net of current portion |
|
|
571 |
|
|
|
596 |
|
Revolving line of credit |
|
|
16,000 |
|
|
|
16,000 |
|
Deferred taxes |
|
|
8,212 |
|
|
|
7,779 |
|
Operating lease liabilities, net of current portion |
|
|
62,068 |
|
|
|
61,985 |
|
Other long-term liabilities |
|
|
4,549 |
|
|
|
4,539 |
|
Total liabilities |
|
|
182,225 |
|
|
|
184,391 |
|
|
|
|
|
|
|
|
|
|
Redeemable non-controlling interests - temporary equity |
|
|
138,924 |
|
|
|
132,340 |
|
|
|
|
|
|
|
|
|
|
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, |
|
|||||||
15,111,309 and 15,066,282 shares issued, respectively |
|
|
151 |
|
|
|
151 |
|
Additional paid-in capital |
|
|
97,286 |
|
|
|
95,622 |
|
Retained earnings |
|
|
210,375 |
|
|
|
212,015 |
|
Treasury stock at cost, 2,214,737 shares |
|
|
(31,628 |
) |
|
|
(31,628 |
) |
Total USPH shareholders’ equity |
|
|
276,184 |
|
|
|
276,160 |
|
Non-controlling interests - permanent equity |
|
|
1,057 |
|
|
|
1,470 |
|
Total USPH shareholders' equity and non-controlling interests - permanent equity |
|
|
277,241 |
|
|
|
277,630 |
|
Total liabilities, redeemable non-controlling interests, |
|
|||||||
USPH shareholders' equity and non-controlling interests - permanent equity |
|
$ |
598,390 |
|
|
$ |
594,361 |
|
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS, EXCEPT PER SHARE DATA) (unaudited) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
March 31, 2021 |
|
|
March 31, 2020 |
|
||
OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net income including non-controlling interests |
|
$ |
11,886 |
|
|
$ |
3,338 |
|
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,681 |
|
|
|
2,607 |
|
Provision for credit losses |
|
|
1,200 |
|
|
|
1,361 |
|
Equity-based awards compensation expense |
|
|
1,651 |
|
|
|
1,886 |
|
Deferred income taxes |
|
|
2,181 |
|
|
|
(1,369 |
) |
Gain on sale of partnership interest |
|
|
96 |
|
|
|
- |
|
Derecognition (write-off) of goodwill - closed clinics |
|
|
- |
|
|
|
1,859 |
|
Other |
|
|
- |
|
|
|
129 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
(Increase) decrease in patient accounts receivable |
|
|
(4,688 |
) |
|
|
3,209 |
|
Decrease (increase) in accounts receivable - other |
|
|
220 |
|
|
|
(1,752 |
) |
Decrease in other assets |
|
|
221 |
|
|
|
2,846 |
|
Increase in accounts payable and accrued expenses |
|
|
3,969 |
|
|
|
2,027 |
|
Increase in other long-term liabilities |
|
|
(1,743 |
) |
|
|
239 |
|
Net cash provided by operating activities |
|
|
17,674 |
|
|
|
16,380 |
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchase of fixed assets |
|
|
(1,608 |
) |
|
|
(2,754 |
) |
Purchase of majority interest in businesses, net of cash acquired |
|
|
(11,747 |
) |
|
|
(11,633 |
) |
Purchase of redeemable non-controlling interest - temporary equity |
|
|
- |
|
|
|
(1,852 |
) |
Proceeds on sales of partnership interest and clinics |
|
|
152 |
|
|
|
316 |
|
Net cash used in investing activities |
|
|
(13,203 |
) |
|
|
(15,923 |
) |
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Distributions to non-controlling interests, permanent and temporary equity |
|
|
(5,265 |
) |
|
|
(2,341 |
) |
Proceeds from revolving line of credit |
|
|
60,000 |
|
|
|
88,000 |
|
Payments on revolving line of credit |
|
|
(60,000 |
) |
|
|
(20,000 |
) |
Principal payments on notes payable |
|
|
(145 |
) |
|
|
(114 |
) |
Payment of Medicare Accelerated and Advance Funds |
|
|
(14,054 |
) |
|
|
- |
|
Other |
|
|
12 |
|
|
|
1 |
|
Net cash (used in) provided by financing activities |
|
|
(19,452 |
) |
|
|
65,546 |
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(14,981 |
) |
|
|
66,003 |
|
Cash and cash equivalents - beginning of period |
|
|
32,918 |
|
|
|
23,548 |
|
Cash and cash equivalents - end of period |
|
$ |
17,937 |
|
|
$ |
89,551 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
| ||||||
