U.S. Physical Therapy, Inc. (NasdaqGS: USPH), a national operator of outpatient physical therapy clinics, today reported results for the second quarter and six months ended June 30, 2010.
“The Company's net free cash flow remains strong. During the second quarter, notes and bank borrowings were reduced by approximately $7.8 million down to $4.3 million. USPH's cash less debt, or net cash, at June 30th was $2.8 million.”
U.S. Physical Therapy's net income for the quarter ended June 30, 2010 increased approximately 23% to $4.5 million from $3.6 million in the second quarter of 2009. Diluted earnings per share rose to $.38 from $.31.
Net income for the six months ended June 30, 2010 increased approximately 20% to $7.6 million as compared to $6.4 million for the first six months of 2009. Diluted earnings per share increased to $.64 from $.54.
Second Quarter 2010 compared to Second Quarter 2009
- Net revenue increased 4.5% from $51,787,000 in the second quarter of 2009 to $54,103,000 in the second quarter of 2010, due to an increase in average net patient revenue per visit of $1.91, or 1.9%, from $103.21 to $105.12 and an increase of 2.1% in patient visits from 487,000 to 497,000.
- Gross margin increased to 28.7% for the 2010 second quarter as compared to 27.7% in the 2009 second quarter. Total clinic operating costs were $38,602,000, or 71.3% of net revenue in the second quarter of 2010, as compared to $37,429,000, or 72.3% of net revenue, in the 2009 period. Clinic salaries and related costs were the same for both quarters at 51.0% of net revenue. Rent, clinic supplies, contract labor and other costs as a percentage of net revenue were 18.9% for the 2010 period versus 19.5% for the 2009 comparable period. The provision for doubtful accounts was 1.4% of net revenue in the second quarter of 2010 as compared to 1.7% in the 2009 second quarter.
- Corporate office costs were $5,511,000, or 10.2% of net revenue, in the second quarter of 2010 versus $5,871,000, or 11.3% of net revenue, in the 2009 quarter.
- Operating income increased in the second quarter of 2010 by 17.7% to $9,990,000 from $8,487,000 for the 2009 second quarter. The operating income margin percentage of 18.5% for the second quarter of 2010 compares to 16.4% for the second quarter 2009.
- Provision for income taxes as a percentage of income before taxes less net income attributable to non-controlling interests was 39.3% for both quarters.
- Net income attributable to common shareholders in the second quarter of 2010 rose 22.9% to $4,451,000 from $3,622,000 in the second quarter of 2009. Diluted earnings per share increased to $.38 from $.31.
- Same store revenues for de novo and acquired clinics open for one year or more declined by less than a percent. Average net rate per visit increased by 1.6% while same store visits decreased by 2.4%.
- The Company ended the second quarter of 2010 with 369 clinics. During the period, the Company opened seven start-up de novo clinics and closed five clinics.
Six Months 2010 compared to Six Months 2009