☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
NEVADA | 76-0364866 | |
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) | (I.R.S. EMPLOYER IDENTIFICATION NO.) |
1300 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 300, HOUSTON, TEXAS | 77042 | |
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) | (ZIP CODE) |
Large accelerated filer | ☑ | Accelerated filer | ||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $.01 par value | USPH | New York Stock Exchange |
Item 1. | 3 | ||
3 | |||
4 | |||
5 | |||
6 | |||
8 | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II—OTHER INFORMATION | |||
Item 1. | 48 | ||
Item 6. | 50 | ||
Certifications |
June 30, 2020 | December 31, 2019 | |||||||||||||||
ASSETS | June 30, 2019 (unaudited) | December 31, 2018 | (unaudited) | |||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 34,859 | $ | 23,368 | $ | 43,555 | $ | 23,548 | ||||||||
Patient accounts receivable, less allowance for doubtful accounts of $2,666 and $2,672, respectively | 44,923 | 44,751 | ||||||||||||||
Patient accounts receivable, less allowance for doubtful accounts of $2,470 and $2,698, respectively | 36,029 | 46,228 | ||||||||||||||
Accounts receivable - other | 10,724 | 6,742 | 9,983 | 9,823 | ||||||||||||
Receivable, net - sale and purchase of partnership interests | 9,401 | - | ||||||||||||||
Other current assets | 7,102 | 4,353 | 2,572 | 5,787 | ||||||||||||
Total current assets | 107,009 | 79,214 | 92,139 | 85,386 | ||||||||||||
Fixed assets: | ||||||||||||||||
Furniture and equipment | 52,831 | 52,611 | 55,914 | 54,942 | ||||||||||||
Leasehold improvements | 31,020 | 31,712 | 33,631 | 33,247 | ||||||||||||
Fixed assets, gross | 83,851 | 84,323 | 89,545 | 88,189 | ||||||||||||
Less accumulated depreciation and amortization | 63,829 | 64,154 | 67,011 | 66,099 | ||||||||||||
Fixed assets, net | 20,022 | 20,169 | 22,534 | 22,090 | ||||||||||||
Operating lease right-of-use assets | 74,930 | - | 82,965 | 81,586 | ||||||||||||
Goodwill | 303,549 | 293,525 | 330,894 | 317,676 | ||||||||||||
Other identifiable intangible assets, net | 50,055 | 48,828 | 54,895 | 52,588 | ||||||||||||
Other assets | 1,445 | 1,430 | 1,591 | 1,519 | ||||||||||||
Total assets | $ | 557,010 | $ | 443,166 | $ | 585,018 | $ | 560,845 | ||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTERESTS | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable - trade | $ | 2,426 | $ | 2,019 | $ | 1,802 | $ | 2,494 | ||||||||
Accrued expenses | 31,346 | 38,493 | 51,325 | 30,855 | ||||||||||||
Current portion of operating lease liabilities | 22,558 | - | 29,591 | 26,486 | ||||||||||||
Current portion of notes payable | 690 | 1,434 | 4,635 | 728 | ||||||||||||
Total current liabilities | 57,020 | 41,946 | 87,353 | 60,563 | ||||||||||||
Notes payable, net of current portion | 4,316 | 402 | 685 | 4,361 | ||||||||||||
Revolving line of credit | 62,000 | 38,000 | 33,000 | 46,000 | ||||||||||||
Deferred taxes | 12,284 | 9,012 | 8,930 | 10,071 | ||||||||||||
Deferred rent | - | 2,159 | ||||||||||||||
Operating lease liabilities, net of current portion | 56,711 | - | 61,242 | 60,258 | ||||||||||||
Other long-term liabilities | 566 | 829 | 392 | 141 | ||||||||||||
Total liabilities | 192,897 | 92,348 | 191,602 | 181,394 | ||||||||||||
Redeemable non-controlling interests | 133,366 | 133,943 | ||||||||||||||
Redeemable non-controlling interests - temporary equity | 136,728 | 137,750 | ||||||||||||||
U.S. Physical Therapy, Inc. (“USPH”) shareholders’ equity: | ||||||||||||||||
Preferred stock, $.01 par value, 500,000 shares authorized, no shares issued and outstanding | - | - | ||||||||||||||
Common stock, $.01 par value, 20,000,000 shares authorized, 14,989,350 and 14,899,233 shares issued, respectively | 149 | 149 | ||||||||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized, 0 shares issued and outstanding | - | - | ||||||||||||||
Common stock, $0.01 par value, 20,000,000 shares authorized, 15,057,859 and 14,989,337 shares issued, respectively | 151 | 150 | ||||||||||||||
Additional paid-in capital | 84,125 | 80,028 | 91,258 | 87,383 | ||||||||||||
Retained earnings | 176,610 | 167,396 | 195,473 | 184,352 | ||||||||||||
Treasury stock at cost, 2,214,737 shares | (31,628 | ) | (31,628 | ) | (31,628 | ) | (31,628 | ) | ||||||||
Total USPH shareholders’ equity | 229,256 | 215,945 | 255,254 | 240,257 | ||||||||||||
Non-controlling interests | 1,491 | 930 | ||||||||||||||
Non-controlling interests- permanent equity | 1,434 | 1,444 | ||||||||||||||
Total USPH shareholders’ equity and non-controlling interests | 230,747 | 216,875 | 256,688 | 241,701 | ||||||||||||
Total liabilities, redeemable non-controlling interests, USPH shareholders’ equity and non-controlling interests | $ | 557,010 | $ | 443,166 | $ | 585,018 | $ | 560,845 |
Three Months Ended | Six Months Ended | For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | June 30, 2020 | June 30, 2019 | June 30,2020 | June 30, 2019 | |||||||||||||||||||||||||
Net patient revenues | $ | 113,363 | $ | 105,989 | $ | 220,013 | $ | 206,541 | $ | 72,279 | $ | 113,363 | $ | 172,405 | $ | 220,013 | ||||||||||||||||
Other revenues | 13,010 | 9,109 | 22,591 | 16,899 | 11,578 | 13,010 | 24,169 | 22,591 | ||||||||||||||||||||||||
Net revenues | 126,373 | 115,098 | 242,604 | 223,440 | 83,857 | 126,373 | 196,574 | 242,604 | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Salaries and related costs | 70,669 | 64,607 | 136,936 | 126,886 | 43,429 | 70,669 | 112,433 | 136,936 | ||||||||||||||||||||||||
Rent, supplies, contract labor and other | 23,026 | 22,168 | 45,070 | 43,944 | 20,311 | 23,026 | 43,220 | 45,070 | ||||||||||||||||||||||||
Provision for doubtful accounts | 1,240 | 1,151 | 2,446 | 2,212 | 739 | 1,240 | 2,100 | 2,446 | ||||||||||||||||||||||||
Closure costs | 13 | 18 | 9 | 30 | ||||||||||||||||||||||||||||
Closure costs - lease and other | 94 | 13 | 1,987 | 9 | ||||||||||||||||||||||||||||
Closure costs - write-off of goodwill | - | - | 1,859 | - | ||||||||||||||||||||||||||||
Total operating costs | 94,948 | 87,944 | 184,461 | 173,072 | 64,573 | 94,948 | 161,599 | 184,461 | ||||||||||||||||||||||||
Gross profit | 31,425 | 27,154 | 58,143 | 50,368 | 19,284 | 31,425 | 34,975 | 58,143 | ||||||||||||||||||||||||
Corporate office costs | 11,527 | 10,128 | 22,820 | 20,291 | 9,022 | 11,527 | 20,699 | 22,820 | ||||||||||||||||||||||||
Operating income | 19,898 | 17,026 | 35,323 | 30,077 | 10,262 | 19,898 | 14,276 | 35,323 | ||||||||||||||||||||||||
Other income and expense | ||||||||||||||||||||||||||||||||
Gain on sale of partnership interest | 5,823 | - | 5,823 | - | ||||||||||||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||||||||
Relief Funds | 7,959 | - | 7,959 | - | ||||||||||||||||||||||||||||
Gain on sale of partnership interest and clinics | 1,073 | 5,823 | 1,073 | 5,823 | ||||||||||||||||||||||||||||
Interest and other income, net | 4 | 22 | 20 | 54 | 4 | 4 | 47 | 20 | ||||||||||||||||||||||||
Interest expense | (607 | ) | (545 | ) | (965 | ) | (1,098 | ) | ||||||||||||||||||||||||
Interest expense - debt and other | (653 | ) | (607 | ) | (1,080 | ) | (965 | ) | ||||||||||||||||||||||||
Total other income and expense | 8,383 | 5,220 | 7,999 | 4,878 | ||||||||||||||||||||||||||||
Income before taxes | 25,118 | 16,503 | 40,201 | 29,033 | 18,645 | 25,118 | 22,275 | 40,201 | ||||||||||||||||||||||||
Provision for income taxes | 5,318 | 3,267 | 8,026 | 5,743 | 3,882 | 5,318 | 4,174 | 8,026 | ||||||||||||||||||||||||
Net income | 19,800 | 13,236 | 32,175 | 23,290 | 14,763 | 19,800 | 18,101 | 32,175 | ||||||||||||||||||||||||
Less: net income attributable to non-controlling interests: | ||||||||||||||||||||||||||||||||
Non-controlling interests - permanent equity | (1,802 | ) | (1,380 | ) | (3,339 | ) | (2,581 | ) | (1,535 | ) | (1,802 | ) | (2,061 | ) | (3,339 | ) | ||||||||||||||||
Redeemable non-controlling interests - temporary equity | (3,378 | ) | (2,610 | ) | (5,773 | ) | (4,346 | ) | (2,996 | ) | (3,378 | ) | (4,792 | ) | (5,773 | ) | ||||||||||||||||
(5,180 | ) | (3,990 | ) | (9,112 | ) | (6,927 | ) | (4,531 | ) | (5,180 | ) | (6,853 | ) | (9,112 | ) | |||||||||||||||||
Net income attributable to USPH shareholders | $ | 14,620 | $ | 9,246 | $ | 23,063 | $ | 16,363 | $ | 10,232 | $ | 14,620 | $ | 11,248 | $ | 23,063 | ||||||||||||||||
Basic and diluted earnings per share attributable to USPH shareholders | $ | 0.85 | $ | 0.48 | $ | 1.24 | $ | 0.74 | $ | 0.99 | $ | 0.85 | $ | 1.19 | $ | 1.24 | ||||||||||||||||
Shares used in computation - basic and diluted | 12,767 | 12,677 | 12,738 | 12,647 | 12,843 | 12,767 | 12,820 | 12,738 | ||||||||||||||||||||||||
Dividends declared per common share | $ | 0.27 | $ | 0.23 | $ | 0.54 | $ | 0.46 | $ | - | $ | 0.27 | $ | 0.32 | $ | 0.54 |
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2020 | June 30, 2019 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income including non-controlling interests | $ | 32,175 | $ | 23,290 | $ | 18,101 | $ | 32,175 | ||||||||
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 4,958 | 4,866 | 5,333 | 4,958 | ||||||||||||
Provision for doubtful accounts | 2,446 | 2,212 | 2,100 | 2,446 | ||||||||||||
Equity-based awards compensation expense | 3,558 | 2,937 | 3,389 | 3,558 | ||||||||||||
Deferred income taxes | 5,421 | (1,736 | ) | (1,737 | ) | 5,421 | ||||||||||
Loss on sale of fixed assets | 429 | - | ||||||||||||||
Gain on sale of partnership interest, net of tax | (4,294 | ) | - | (1,073 | ) | (5,514 | ) | |||||||||
Write-off of goodwill - closed clinics | 1,859 | - | ||||||||||||||
Other | 21 | 94 | - | 21 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Increase in patient accounts receivable | (4,956 | ) | (2,141 | ) | ||||||||||||
Increase in accounts receivable - other | (2,468 | ) | (2,934 | ) | ||||||||||||
Increase in other assets | (2,759 | ) | (140 | ) | ||||||||||||
(Decrease) increase in accounts payable and accrued expenses | (4,780 | ) | 4,845 | |||||||||||||
Decrease in other liabilities | (701 | ) | (672 | ) | ||||||||||||
Decrease (increase) in patient accounts receivable | 8,880 | (4,956 | ) | |||||||||||||
Decrease(increase) in accounts receivable - other | 283 | (2,468 | ) | |||||||||||||
Decrease (increase) in other assets | 5,969 | (2,759 | ) | |||||||||||||
Increase (decrease) in accounts payable and accrued expenses | 4,478 | (3,560 | ) | |||||||||||||
Increase (decrease) in other liabilities | 345 | (701 | ) | |||||||||||||
Net cash provided by operating activities | 28,621 | 30,621 | 48,356 | 28,621 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Purchase of fixed assets | (4,876 | ) | (3,270 | ) | (4,628 | ) | (4,876 | ) | ||||||||
Purchase of business | (18,239 | ) | (9,118 | ) | ||||||||||||
Purchase of majority interest in businesses, net of cash acquired | (11,633 | ) | (18,239 | ) | ||||||||||||
Purchase of redeemable non-controlling interest, temporary equity | (2,053 | ) | - | (2,388 | ) | (2,053 | ) | |||||||||
Purchase of non-controlling interest, permanent equity | (138 | ) | (245 | ) | (144 | ) | (138 | ) | ||||||||
Proceeds on sale of redeemable non-controlling interest, temporary equity | 19 | - | ||||||||||||||
Proceeds on sales of partnership interest and clinics | 674 | - | ||||||||||||||
Proceeds on sale of fixed assets | 65 | 1 | 21 | 65 | ||||||||||||
Net cash used in investing activities | (25,241 | ) | (12,632 | ) | (18,079 | ) | (25,241 | ) | ||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Distributions to non-controlling interests, permanent and temporary equity | (7,934 | ) | (6,735 | ) | (5,707 | ) | (7,934 | ) | ||||||||
Cash dividends paid to shareholders | (6,891 | ) | (5,828 | ) | (4,110 | ) | (6,891 | ) | ||||||||
Proceeds from revolving line of credit | 80,000 | 55,000 | 99,000 | 80,000 | ||||||||||||
Payments on revolving line of credit | (56,000 | ) | (53,000 | ) | (112,000 | ) | (56,000 | ) | ||||||||
Payments to settle mandatorily redeemable non-controlling interests | - | (265 | ) | |||||||||||||
Principal payments on notes payable | (1,057 | ) | (1,898 | ) | (314 | ) | (1,057 | ) | ||||||||
Medicare Accelerated and Advance Payment Funds | 12,861 | - | ||||||||||||||
Other | (7 | ) | (48 | ) | - | (7 | ) | |||||||||
Net cash provided by (used in) financing activities | 8,111 | (12,774 | ) | (10,270 | ) | 8,111 | ||||||||||
Net increase in cash and cash equivalents | 11,491 | 5,215 | 20,007 | 11,491 | ||||||||||||
Cash and cash equivalents - beginning of period | 23,368 | 21,933 | 23,548 | 23,368 | ||||||||||||
Cash and cash equivalents - end of period | $ | 34,859 | $ | 27,148 | $ | 43,555 | $ | 34,859 | ||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Income taxes | $ | 4,339 | $ | 7,483 | $ | 57 | $ | 4,339 | ||||||||
Interest | $ | 902 | $ | 1,106 | $ | 944 | $ | 902 | ||||||||
Non-cash investing and financing transactions during the period: | ||||||||||||||||
Purchase of business - seller financing portion | $ | 4,000 | $ | 550 | ||||||||||||
Purchase of businesses - seller financing portion | $ | 300 | $ | 4,000 | ||||||||||||
Purchase of business - payable to common shareholders of acquired business | $ | 502 | $ | - | $ | - | $ | 502 | ||||||||
Receivable related to sale of partnership interest | $ | 11,601 | $ | - | ||||||||||||
Purchase of redeemable non-controlling interest - notes payable | $ | 137 | $ | - | ||||||||||||
Payable due to purchase of redeemable non-controlling interest | $ | 699 | $ | - | ||||||||||||
Receivables related to sale of partnership interest | $ | - | $ | 11,601 | ||||||||||||
Notes receivables related to sale of partnership interest | $ | 386 | $ | 2,780 | ||||||||||||
Payable related to purchase of partnership interest - settlement of redeemable non-controlling interest | $ | 2,200 | $ | - | $ | - | $ | 2,200 | ||||||||
Notes receivable related to sale of partnership interest - redeemable non-controlling interest | $ | 2,780 | $ | - |
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||
For the three months ended June 30, 2019 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||
Balance March 31, 2019 | 14,976 | $ | 149 | $ | 82,295 | $ | 168,952 | (2,215 | ) | $ | (31,628 | ) | $ | 219,768 | $ | 1,405 | $ | 221,173 | ||||||||||||||||||
Issuance of restricted stock, net of cancellations | 13 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | - | - | (3,813 | ) | - | - | (3,813 | ) | - | (3,813 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 1,830 | - | - | - | 1,830 | - | 1,830 | |||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | (3,446 | ) | - | - | (3,446 | ) | - | (3,446 | ) | ||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | - | - | 298 | - | - | 298 | - | 298 | |||||||||||||||||||||||||||
Other | - | - | - | (1 | ) | - | - | (1 | ) | 1 | - | |||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | (1,717 | ) | (1,717 | ) | |||||||||||||||||||||||||
Net income attributable to non-controlling interests - permanent equity | - | - | - | - | - | - | - | 1,802 | 1,802 | |||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | 14,620 | - | - | 14,620 | - | 14,620 | |||||||||||||||||||||||||||
Balance June 30, 2019 | 14,989 | 149 | 84,125 | 176,610 | (2,215 | ) | (31,628 | ) | $ | 229,256 | 1,491 | 230,747 |
U.S.Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||
For the three months ended June 30, 2020 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||
Balance March 31, 2020 | 15,059 | $ | 151 | $ | 89,756 | $ | 182,785 | (2,215 | ) | $ | (31,628 | ) | $ | 241,064 | $ | 1,240 | $ | 242,304 | ||||||||||||||||||
Issuance of restricted stock, net of cancellations | (1 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | - | - | 2,466 | - | - | 2,466 | - | 2,466 | |||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 1,502 | - | - | - | 1,502 | - | 1,502 | |||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | (1,313 | ) | (1,313 | ) | |||||||||||||||||||||||||
Other | - | - | - | (10 | ) | - | - | (10 | ) | (28 | ) | (38 | ) | |||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | - | - | - | - | - | - | 1,535 | 1,535 | |||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | 10,232 | - | - | 10,232 | - | 10,232 | |||||||||||||||||||||||||||
Balance June 30, 2020 | 15,058 | $ | 151 | $ | 91,258 | $ | 195,473 | (2,215 | ) | $ | (31,628 | ) | $ | 255,254 | $ | 1,434 | $ | 256,688 |
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | U.S.Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2019 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 14,899 | $ | 149 | $ | 80,028 | $ | 167,396 | (2,215 | ) | $ | (31,628 | ) | $ | 215,945 | $ | 930 | $ | 216,875 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2020 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | 14,989 | $ | 150 | $ | 87,383 | $ | 184,352 | (2,215 | ) | $ | (31,628 | ) | $ | 240,257 | $ | 1,444 | $ | 241,701 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 90 | - | - | - | - | - | - | - | - | 69 | 1 | - | - | - | - | 1 | - | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | - | - | (7,250 | ) | - | - | (7,250 | ) | - | (7,250 | ) | - | - | - | 4,036 | - | - | 4,036 | - | 4,036 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 3,558 | - | - | - | 3,558 | - | 3,558 | - | - | 3,389 | - | - | - | 3,389 | - | 3,389 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | - | 636 | - | - | - | 636 | - | 636 | - | - | 486 | - | - | - | 486 | - | 486 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | (97 | ) | - | - | - | (97 | ) | (7 | ) | (104 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | (6,891 | ) | - | - | (6,891 | ) | - | (6,891 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | - | - | 298 | - | - | 298 | - | 298 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | - | - | (4,110 | ) | - | - | (4,110 | ) | - | (4,110 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | (2,043 | ) | (2,043 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | - | - | (6 | ) | - | - | (6 | ) | - | (6 | ) | - | - | - | (53 | ) | - | - | (53 | ) | (28 | ) | (81 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | (2,771 | ) | (2,771 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests - permanent equity | - | - | - | - | - | - | 3,339 | 3,339 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | - | - | - | - | - | - | 2,061 | 2,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | 23,063 | - | - | 23,063 | - | 23,063 | - | - | - | 11,248 | - | - | 11,248 | - | 11,248 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2019 | 14,989 | 149 | 84,125 | 176,610 | (2,215 | ) | (31,628 | ) | $ | 229,256 | 1,491 | 230,747 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2020 | 15,058 | $ | 151 | $ | 91,258 | $ | 195,473 | (2,215 | ) | $ | (31,628 | ) | $ | 255,254 | $ | 1,434 | $ | 256,688 |
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||
For the three months ended June 30, 2018 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||
Balance March 31, 2018 | 14,885 | $ | 149 | $ | 75,543 | $ | 162,907 | (2,215 | ) | $ | (31,628 | ) | $ | 206,971 | $ | 1,514 | $ | 208,485 | ||||||||||||||||||
Issuance of restricted stock, net of cancellation | 15 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | - | - | (3,204 | ) | - | - | (3,204 | ) | - | (3,204 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 1,556 | - | - | - | 1,556 | - | 1,556 | |||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | (2,914 | ) | - | - | (2,914 | ) | - | (2,914 | ) | ||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | (1,807 | ) | (1,807 | ) | |||||||||||||||||||||||||
Other | - | - | - | (44 | ) | - | - | (44 | ) | 50 | 6 | |||||||||||||||||||||||||
Net income attributable to non-controlling interests - permanent equity | - | - | - | - | - | - | 1,380 | 1,380 | ||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | 9,246 | - | - | 9,246 | - | 9,246 | |||||||||||||||||||||||||||
Balance June 30, 2018 | 14,900 | 149 | 77,099 | 165,991 | (2,215 | ) | (31,628 | ) | $ | 211,611 | 1,137 | 212,748 |
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||
For the six months ended June 30, 2018 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||
Balance December 31, 2017 | 14,809 | $ | 148 | $ | 73,940 | $ | 162,406 | (2,215 | ) | $ | (31,628 | ) | $ | 204,866 | $ | 1,204 | $ | 206,070 | ||||||||||||||||||
Issuance of restricted stock, net of cancellation | 91 | 1 | - | - | - | - | 1 | - | 1 | |||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | - | - | (6,951 | ) | - | - | (6,951 | ) | - | (6,951 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 2,937 | - | - | - | 2,937 | - | 2,937 | |||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | - | 373 | - | - | - | 373 | - | 373 | |||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | (151 | ) | - | - | - | (151 | ) | (42 | ) | (193 | ) | |||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | (5,828 | ) | - | - | (5,828 | ) | - | (5,828 | ) | ||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | (2,656 | ) | (2,656 | ) | |||||||||||||||||||||||||
Other | - | - | - | 1 | - | - | 1 | 50 | 51 | |||||||||||||||||||||||||||
Net income attributable to non-controlling interests - permanent equity | - | - | - | - | - | - | 2,581 | 2,581 | ||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | 16,363 | - | - | 16,363 | - | 16,363 | |||||||||||||||||||||||||||
Balance June 30, 2018 | 14,900 | 149 | 77,099 | 165,991 | (2,215 | ) | (31,628 | ) | $ | 211,611 | 1,137 | 212,748 |
U.S.Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||
For the three months ended June 30, 2019 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||
Balance March 31, 2019 | 14,976 | $ | 149 | $ | 82,295 | $ | 168,952 | (2,215 | ) | $ | (31,628 | ) | $ | 219,768 | $ | 1,405 | $ | 221,173 | ||||||||||||||||||
Issuance of restricted stock, net of cancellations | 13 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | - | - | (3,813 | ) | - | - | (3,813 | ) | - | (3,813 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 1,830 | - | - | - | 1,830 | - | 1,830 | |||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | (3,446 | ) | - | - | (3,446 | ) | - | (3,446 | ) | ||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | - | - | 298 | - | - | 298 | - | 298 | |||||||||||||||||||||||||||
Other | - | - | - | (1 | ) | - | - | (1 | ) | 1 | - | |||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | (1,717 | ) | (1,717 | ) | |||||||||||||||||||||||||
Net income attributable to non-controlling interests - permanent equity | - | - | - | - | - | - | - | 1,802 | 1,802 | |||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | 14,620 | - | - | 14,620 | - | 14,620 | |||||||||||||||||||||||||||
Balance June 30, 2019 | 14,989 | $ | 149 | $ | 84,125 | $ | 176,610 | (2,215 | ) | $ | (31,628 | ) | $ | 229,256 | $ | 1,491 | $ | 230,747 |
U.S.Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||
For the six months ended June 30, 2019 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||
Balance December 31, 2018 | 14,899 | $ | 149 | $ | 80,028 | $ | 167,396 | (2,215 | ) | $ | (31,628 | ) | $ | 215,945 | $ | 930 | $ | 216,875 | ||||||||||||||||||
Issuance of restricted stock, net of cancellations | 90 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | - | - | (7,250 | ) | - | - | (7,250 | ) | - | (7,250 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 3,558 | - | - | - | 3,558 | - | 3,558 | |||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | - | 636 | - | - | - | 636 | - | 636 | |||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | (97 | ) | - | - | - | (97 | ) | (7 | ) | (104 | ) | |||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | (6,891 | ) | - | - | (6,891 | ) | - | (6,891 | ) | ||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | - | - | 298 | - | - | 298 | - | 298 | |||||||||||||||||||||||||||
Other | - | - | - | (6 | ) | - | - | (6 | ) | - | (6 | ) | ||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | (2,771 | ) | (2,771 | ) | |||||||||||||||||||||||||
Net income attributable to non-controlling interests - permanent equity | - | - | - | - | - | - | 3,339 | 3,339 | ||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | 23,063 | - | - | 23,063 | - | 23,063 | |||||||||||||||||||||||||||
Balance June 30, 2019 | 14,989 | $ | 149 | $ | 84,125 | $ | 176,610 | (2,215 | ) | $ | (31,628 | ) | $ | 229,256 | $ | 1,491 | $ | 230,747 |
• | The CARES Act allowed for qualified healthcare providers to receive advanced payments under the existing Medicare Accelerated and Advance Payments Program (“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 fromCenters for Medicare & Medicaid Services (“CMS”) in April 2020. The Company recorded these payments of $12.8 million as a liability until all performance obligations have been met as the payments were made on behalf of patients before services were provided. Currently, MAAPP funds received will be applied to future Medicare billings commencing in August 2020, with all such remaining amounts required to be repaid by November 2020. Beginning November 2020, any unpaid balance will begin accruing interest. |
Cash paid, net of cash acquired | $ | 18,239 | ||
Payable to shareholders of seller | 502 | |||
Seller note | 4,000 | |||
Total consideration | $ | 22,741 | ||
Estimated fair value of net tangible assets acquired: | ||||
Total current assets | $ | 1,588 | ||
Total non-current assets | 38 | |||
Total liabilities | (477 | ) | ||
Net tangible assets acquired | $ | 1,149 | ||
Referral relationships | 1,500 | |||
Non-compete | 590 | |||
Tradename | 2,500 | |||
Goodwill | 17,002 | |||
$ | 22,741 |
Physical Therapy Operations | ||||||||
Cash paid, net of cash acquired | $ | 16,367 | $ | 11,633 | ||||
Seller notes | 950 | |||||||
Seller note | 300 | |||||||
Total consideration | $ | 17,317 | $ | 11,933 | ||||
Estimated fair value of net tangible assets acquired: | ||||||||
Total current assets | $ | 1,691 | $ | 778 | ||||
Total non-current assets | 305 | 400 | ||||||
Total liabilities | (524 | ) | (469 | ) | ||||
Net tangible assets acquired | $ | 1,472 | $ | 709 | ||||
Referral relationships | 2,294 | 1,600 | ||||||
Non-compete | 328 | 750 | ||||||
Tradename | 1,297 | 1,500 | ||||||
Goodwill | 20,071 | 13,845 | ||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | (8,145 | ) | (6,471 | ) | ||||
$ | 17,317 | $ | 11,933 |
IIPS* | Physical Therapy Operations | Total | ||||||||||
Cash paid, net of cash acquired | $ | 18,427 | $ | 12,170 | $ | 30,597 | ||||||
Payable to shareholders of seller | $ | 486 | $ | - | 486 | |||||||
Seller note | 4,000 | 300 | 4,300 | |||||||||
Total consideration | $ | 22,913 | $ | 12,470 | $ | 35,383 | ||||||
Estimated fair value of net tangible assets acquired: | ||||||||||||
Total current assets | $ | 1,641 | $ | 693 | $ | 2,334 | ||||||
Total non-current assets | 878 | 3,019 | 3,897 | |||||||||
Total liabilities | (2,979 | ) | (2,816 | ) | (5,795 | ) | ||||||
Net tangible assets acquired | $ | (460 | ) | $ | 896 | $ | 436 | |||||
Referral relationships | 3,400 | 2,600 | 6,000 | |||||||||
Non-compete | 250 | 270 | 520 | |||||||||
Tradename | 1,300 | 740 | 2,040 | |||||||||
Goodwill | 18,423 | 14,193 | 32,616 | |||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | - | (6,229 | ) | (6,229 | ) | |||||||
$ | 22,913 | $ | 12,470 | $ | 35,383 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||
Net patient revenues | $ | 113,363 | $ | 105,989 | $ | 220,013 | $ | 206,541 | $ | 72,279 | $ | 113,363 | $ | 172,405 | $ | 220,013 | ||||||||||||||||
Management contract revenues | 2,215 | 2,160 | 4,360 | 4,397 | 1,592 | 2,215 | 3,740 | 4,360 | ||||||||||||||||||||||||
Other revenues | 328 | 507 | 895 | 1,043 | ||||||||||||||||||||||||||||
Physical therapy operations | $ | 74,199 | $ | 116,085 | $ | 177,040 | $ | 225,416 | ||||||||||||||||||||||||
Industrial injury prevention services revenues | 10,288 | 6,274 | 17,188 | 11,126 | 9,658 | 10,288 | 19,534 | 17,188 | ||||||||||||||||||||||||
Other revenues | 507 | 675 | 1,043 | 1,376 | ||||||||||||||||||||||||||||
$ | 126,373 | $ | 115,098 | $ | 242,604 | $ | 223,440 | $ | 83,857 | $ | 126,373 | $ | 196,574 | $ | 242,604 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | $ | 14,620 | $ | 9,246 | $ | 23,063 | $ | 16,363 | $ | 10,232 | $ | 14,620 | $ | 11,248 | $ | 23,063 | ||||||||||||||||
Charges to retained earnings: | ||||||||||||||||||||||||||||||||
Credit (charges) to retained earnings: | ||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest | (5,169 | ) | (4,344 | ) | (9,830 | ) | (9,425 | ) | 3,344 | (5,169 | ) | 5,473 | (9,830 | ) | ||||||||||||||||||
Tax effect at statutory rate (federal and state) of 26.25% | 1,356 | 1,140 | 2,580 | 2,474 | (878 | ) | 1,356 | (1,437 | ) | 2,580 | ||||||||||||||||||||||
$ | 10,807 | $ | 6,042 | $ | 15,813 | $ | 9,412 | $ | 12,698 | $ | 10,807 | $ | 15,284 | $ | 15,813 | |||||||||||||||||
Earnings per share (basic and diluted) | $ | 0.85 | $ | 0.48 | $ | 1.24 | $ | 0.74 | $ | 0.99 | $ | 0.85 | $ | 1.19 | $ | 1.24 | ||||||||||||||||
Shares used in computation: | ||||||||||||||||||||||||||||||||
Basic and diluted earnings per share - weighted-average shares | 12,767 | 12,677 | 12,738 | 12,647 | 12,843 | 12,767 | 12,820 | 12,738 |
1. | Prior to the Acquisition, the Therapy Practice exists as a separate legal entity (the “Seller Entity”). The Seller Entity is owned by one or more individuals (the “Selling Shareholders”) most of whom are physical therapists that work in the Therapy Practice and provide physical therapy services to patients. |
2. | In conjunction with the Acquisition, the Seller Entity contributes the Therapy Practice into a newly-formed limited partnership (“NewCo”), in exchange for one hundred percent (100%) of the limited and general partnership interests in NewCo. Therefore, in this step, NewCo becomes a wholly-owned subsidiary of the Seller Entity. |
3. | The Company enters into an agreement (the “Purchase Agreement”) to acquire from the Seller Entity a majority (ranges from 50% to 90%) of the limited partnership interest and in all cases 100% of the general partnership interest in NewCo. The Company does not purchase 100% of the limited partnership interest because the Selling Shareholders, through the Seller Entity, want to maintain an ownership percentage. The consideration for the Acquisition is primarily payable in the form of cash at closing and a small, two-year note in lieu of an escrow (the “Purchase Price”). The Purchase Agreement does not contain any future earn-out or other contingent consideration that is payable to the Seller Entity or the Selling Shareholders. |
4. | The Company and the Seller Entity also execute a partnership agreement (the “Partnership Agreement”) for NewCo that sets forth the rights and obligations of the limited and general partners of NewCo. After the Acquisition, the Company is the general partner of NewCo. |
5. | As noted above, the Company does not purchase 100% of the limited partnership interests in NewCo and the Seller Entity retains a portion of the limited partnership interest in NewCo (“Seller Entity Interest”). |
6. | In most cases, some or all of the Selling Shareholders enter into an employment agreement (the “Employment Agreement”) with NewCo with an initial term that ranges from three to five years (the “Employment Term”), with automatic one-year renewals, unless employment is terminated prior to the end of the Employment Term. As a result, a Selling Shareholder becomes an employee (“Employed Selling Shareholder”) of NewCo. The employment of an Employed Selling Shareholder can be terminated by the Employed Selling Shareholder or NewCo, with or without cause, at any time. In a few situations, a Selling Shareholder does not become employed by NewCo and is not involved with NewCo following the closing; in those situations, such Selling Shareholders sell their entire ownership interest in the Seller Entity as of the closing of the Acquisition. |
7. | The compensation of each Employed Selling Shareholder is specified in the Employment Agreement and is customary and commensurate with his or her responsibilities based on other employees in similar capacities within NewCo, the Company and the industry. |
8. | The Company and the Selling Shareholder (including both Employed Selling Shareholders and Selling Shareholders not employed by NewCo) execute a non-compete agreement (the “Non-Compete Agreement”) which restricts the Selling Shareholder from engaging in competing business activities for a specified period of time (the “Non-Compete Term”). A Non-Compete Agreement is executed with the Selling Shareholders in all cases. That is, even if the Selling Shareholder does not become an Employed Selling Shareholder, the Selling Shareholder is restricted from engaging in a competing business during the Non-Compete Term. |
9. | The Non-Compete Term commences as of the date of the Acquisition and expires on the later of : |
a. | Two years after the date an Employed Selling Shareholders’ employment is terminated (if the Selling Shareholder becomes an Employed Selling Shareholder) or |
b. | Five to six years from the date of the Acquisition, as defined in the Non-Compete Agreement, regardless of whether the Selling Shareholder is employed by NewCo. |
10. | The Non-Compete Agreement applies to a restricted region which is defined as a 15-mile radius from the Therapy Practice. That is, an Employed Selling Shareholder is permitted to engage in competing businesses or activities outside the 15-mile radius (after such Employed Selling Shareholder no longer is employed by NewCo) and a Selling Shareholder who is not employed by NewCo immediately is permitted to engage in the competing business or activities outside the 15-mile radius. |
1. | Put Right |
a. | In the event that any Selling Shareholder’s employment is terminated under certain circumstances prior to a specified date (the “Specified Date”), the Seller Entity thereafter may have an irrevocable right to cause the Company to purchase from Seller Entity the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest at the purchase price described in “3” below. |
b. | In the event that any Selling Shareholder is not employed by NewCo as of the Specified Date and the Company has not exercised its Call Right with respect to the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest, Seller Entity thereafter shall have the Put Right to cause the Company to purchase from Seller Entity the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest at the purchase price described in “3” below. |
c. | In the event that any Selling Shareholder’s employment with NewCo is terminated for any reason on or after the Specified Date, the Seller Entity shall have the Put Right, and upon the exercise of the Put Right, the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest shall be redeemed by the Company at the purchase price described in “3” below. |
2. | Call Right |
a. | If any Selling Shareholder’s employment by NewCo is terminated prior to the Specified Date, the Company thereafter shall have an irrevocable right to purchase from Seller Entity the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest, in each case at the purchase price described in “3” below. |
b. | In the event that any Selling Shareholder’s employment with NewCo is terminated for any reason on or after Specified Date, the Company shall have the Call Right, and upon the exercise of the Call Right, the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest shall be redeemed by the Company at the purchase price described in “3” below. |
3. | For the Put Right and the Call Right, the purchase price is derived from a formula based on a specified multiple of NewCo’s trailing twelve months of earnings before interest, taxes, depreciation, amortization, and the Company’s internal management fee, plus an Allocable Percentage of any undistributed earnings of NewCo (the “Redemption Amount”). NewCo’s earnings are distributed monthly based on available cash within NewCo; therefore, the undistributed earnings amount is small, if any. |
4. | The Purchase Price for the initial equity interest purchased by the Company is also based on the same specified multiple of the trailing twelve-month earnings that is used in the Put Right and the Call Right noted above. |
5. | The Put Right and the Call Right do not have an expiration date, and the Seller Entity Interest is not required to be purchased by the Company or sold by the Seller Entity unless either the Put Right and the Call Right is exercised. |
6. | The Put Right and the Call Right never apply to Selling Shareholders who do not become employed by NewCo, since the Company requires that such Selling Shareholders sell their entire ownership interest in the Seller Entity at the closing of the Acquisition. |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||
Beginning balance | $ | 137,196 | $ | 108,085 | $ | 133,943 | $ | 102,572 | $ | 140,498 | $ | 137,196 | $ | 137,750 | $ | 133,943 | ||||||||||||||||
Operating results allocated to redeemable non-controlling interest partners | 3,378 | 2,610 | 5,773 | 4,346 | 2,996 | 3,378 | 4,792 | 5,773 | ||||||||||||||||||||||||
Distributions to redeemable non-controlling interest partners | (3,641 | ) | (2,720 | ) | (5,163 | ) | (4,079 | ) | (2,054 | ) | (3,641 | ) | (3,665 | ) | (5,163 | ) | ||||||||||||||||
Changes in the fair value of redeemable non-controlling interest | 5,169 | 4,344 | 9,830 | 9,425 | (3,344 | ) | 5,169 | (5,473 | ) | 9,830 | ||||||||||||||||||||||
Purchases of redeemable non-controlling interest | (2,604 | ) | 4,863 | (4,885 | ) | 4,863 | (1,372 | ) | (2,604 | ) | (3,224 | ) | (4,885 | ) | ||||||||||||||||||
Reduction of non-controlling interest due to sale of USPh partnership interest | (6,132 | ) | - | (6,132 | ) | |||||||||||||||||||||||||||
Acquired interest | - | - | 6,471 | - | ||||||||||||||||||||||||||||
Reduction of non-controlling interest due to sale of USPH partnership interest | - | (6,132 | ) | - | (6,132 | ) | ||||||||||||||||||||||||||
Sales of redeemable non-controlling interest - temporary equity | 2,870 | - | 2,870 | - | 564 | 2,870 | 564 | 2,870 | ||||||||||||||||||||||||
Notes receivable related to sales of redeemable non-controlling interest - temporary equity | (2,870 | ) | - | (2,870 | ) | - | (545 | ) | (2,870 | ) | (545 | ) | (2,870 | ) | ||||||||||||||||||
Other | - | (155 | ) | - | (100 | ) | ||||||||||||||||||||||||||
Adjustments in notes receivable related to the the sales of redeemable non-controlling interest - temporary equity | (15 | ) | - | 58 | - | |||||||||||||||||||||||||||
Ending balance | $ | 133,366 | $ | 117,027 | $ | 133,366 | $ | 117,027 | $ | 136,728 | $ | 133,366 | $ | 136,728 | $ | 133,366 |
June 30, 2019 | June 30, 2018 | |||||||
Contractual time period has lapsed but holder’s employment has not been terminated | $ | 52,937 | $ | 34,144 | ||||
Contractual time period has not lapsed and holder’s employment has not been terminated | 80,429 | 82,883 | ||||||
Holder’s employment has terminated and contractual time period has expired | - | - | ||||||
Holder’s employment has terminated and contractual time period has not expired | - | - | ||||||
$ | 133,366 | $ | 117,027 |
June 30, 2020 | June 30, 2019 | |||||||
Contractual time period has lapsed but holder's employment has not been terminated | $ | 72,815 | $ | 52,937 | ||||
Contractual time period has not lapsed and holder's employment has not been terminated | 63,913 | 80,429 | ||||||
Holder's employment has terminated and contractual time period has expired | - | - | ||||||
Holder's employment has terminated and contractual time period has not expired | - | - | ||||||
$ | 136,728 | $ | 133,366 |
Six Months Ended | Year Ended | |||||||||||||||
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||
Beginning balance | $ | 293,525 | $ | 271,338 | $ | 317,676 | $ | 293,525 | ||||||||
Goodwill acquired | 17,002 | 19,778 | 13,845 | 31,330 | ||||||||||||
Goodwill related to partnership interest sold | (7,325 | ) | - | - | (7,325 | ) | ||||||||||
Goodwill write-off related to closed clinics | (1,859 | ) | - | |||||||||||||
Goodwill adjustments for purchase price allocation of businesses acquired in prior year | 347 | 2,409 | 1,232 | 146 | ||||||||||||
Ending balance | $ | 303,549 | $ | 293,525 | $ | 330,894 | $ | 317,676 |
June 30, 2019 | December 31, 2018 | |||||||
Tradenames | $ | 30,756 | $ | 30,256 | ||||
Referral relationships, net of accumulated amortization of $10,121 and $$9,370, respectively | 17,428 | 16,895 | ||||||
Non-compete agreements, net of accumulated amortization of $4,730 and $4,716, respectively | 1,871 | 1,677 | ||||||
$ | 50,055 | $ | 48,828 |
June 30, 2020 | December 31, 2019 | |||||||
Tradenames | $ | 31,490 | $ | 32,049 | ||||
Referral relationships, net of accumulated amortization of $13,126 and $11,677, respectively | 21,517 | 18,367 | ||||||
Non-compete agreements, net of accumulated amortization of $5,687 and $5,424, respectively | 1,888 | 2,172 | ||||||
$ | 54,895 | $ | 52,588 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||
Referral relationships | $ | 581 | $ | 559 | $ | 1,114 | $ | 1,079 | $ | 836 | $ | 581 | $ | 1,449 | $ | 1,114 | ||||||||||||||||
Non-compete agreements | 169 | 91 | 338 | 288 | 87 | 169 | 264 | 338 | ||||||||||||||||||||||||
$ | 750 | $ | 650 | $ | 1,452 | $ | 1,367 | $ | 923 | $ | 750 | $ | 1,713 | $ | 1,452 |
Referral Relationships | Referral Relationships | Non-Compete Agreements | Referral Relationships | Non-Compete Agreements | |||||||||||||||
Years | Annual Amount | Years | Annual Amount | Annual Amount | Years | Annual Amount | |||||||||||||
Ending December 31, | Ending December 31, | Ending December 31, | |||||||||||||||||
2019 | $ | 2,232 | 2019 | $ | 685 | ||||||||||||||
2020 | $ | 2,235 | 2020 | $ | 507 | ||||||||||||||
2020 (excluding the six months ended June 30, 2020) | $ | 1,369 | 2020 (excluding the six months ended June 30, 2020) | $ | 300 | ||||||||||||||
2021 | $ | 2,235 | 2021 | $ | 429 | $ | 2,737 | 2021 | $ | 552 | |||||||||
2022 | $ | 2,187 | 2022 | $ | 252 | $ | 2,689 | 2022 | $ | 375 | |||||||||
2023 | $ | 2,080 | 2023 | $ | 183 | $ | 2,581 | 2023 | $ | 305 | |||||||||
2024 | $ | 1,914 | 2024 | $ | 125 | $ | 2,417 | 2024 | $ | 250 | |||||||||
Thereafter | $ | 5,659 | Thereafter | $ | 28 | $ | 9,724 | Thereafter | $ | 193 |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||
Salaries and related costs | $ | 18,815 | $ | 21,726 | $ | 16,809 | $ | 19,340 | ||||||||
Credit balances due to patients and payors | 5,195 | 7,293 | 6,871 | 4,303 | ||||||||||||
Group health insurance claims | 3,083 | 3,124 | 2,180 | 2,277 | ||||||||||||
Closure costs | 1,987 | 116 | ||||||||||||||
Federal income taxes payable | 4,637 | - | ||||||||||||||
MAAPP funds payable | 12,861 | - | ||||||||||||||
Deferred employer payroll taxes - CARES ACT | 2,155 | - | ||||||||||||||
Other | 4,253 | 6,350 | 3,825 | 4,819 | ||||||||||||
Total | $ | 31,346 | $ | 38,493 | $ | 51,325 | $ | 30,855 |
June 30, 2019 | December 31, 2018 | June 30, 2020 | December 31, 2019 | |||||||||||||
Credit Agreement average effective interest rate of 3.96% inclusive of unused fee | $ | 62,000 | $ | 38,000 | ||||||||||||
Various notes payable with $690 plus accrued interest due in the next year, interest accrues in the range of 3.75% through 5.50% per annum | 5,006 | 1,836 | ||||||||||||||
Credit Agreement average effective interest rate of 2.3% inclusive of unused fee | $ | 33,000 | $ | 46,000 | ||||||||||||
Various notes payable with $4,635 plus accrued interest due in the next year, interest accrues in the range of 3.25% through 5.50% per annum | 5,320 | 5,089 | ||||||||||||||
$ | 67,006 | $ | 39,836 | $ | 38,320 | $ | 51,089 | |||||||||
Less current portion | (690 | ) | (1,434 | ) | (4,635 | ) | (728 | ) | ||||||||
Long term portion | $ | 66,316 | $ | 38,402 | $ | 33,685 | $ | 50,361 |
During the twelve months ended June 30, 2020 | $ | 690 | ||||||
During the twelve months ended June 30, 2021 | 4,316 | $ | 4,635 | |||||
During the twelve months ended June 30, 2022 | 62,000 | 33,642 | ||||||
During the twelve months ended June 30, 2023 | 43 | |||||||
$ | 67,006 | $ | 38,320 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Operating lease cost | $ | 7,708 | $ | 15,295 | $ | 7,815 | $ | 7,708 | $ | 15,627 | $ | 15,295 | ||||||||||||
Short-term lease cost | 297 | 668 | 215 | 297 | 509 | 668 | ||||||||||||||||||
Variable lease cost | 1,547 | 3,128 | 1,514 | 1,547 | 3,046 | 3,128 | ||||||||||||||||||
Total lease cost * | $ | 9,552 | $ | 19,091 | $ | 9,544 | $ | 9,552 | $ | 19,182 | $ | 19,091 |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 7,686 | $ | 15,392 | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities * | $ | 8,629 | $ | 98,514 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities (in thousands) | $ | 6,555 | $ | 7,686 | $ | 14,345 | $ | 15,392 | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands) * | $ | 7,535 | $ | 8,629 | $ | 19,075 | $ | 98,514 |
Fiscal Year | Amount | Amount | ||||||
2019 (excluding the six months ended June, 30, 2019) | $ | 14,035 | ||||||
2020 | 24,589 | |||||||
2020 (excluding the six months ended June 30, 2020) | $ | 15,568 | ||||||
2021 | 18,542 | 26,363 | ||||||
2022 | 12,375 | 20,565 | ||||||
2023 | 7,906 | 14,968 | ||||||
2024 and thereafter | 8,321 | |||||||
2024 | 9,439 | |||||||
2025 and therafter | 10,288 | |||||||
Total lease payments | $ | 85,768 | $ | 97,191 | ||||
Less: imputed interest | (6,499 | ) | 6,359 | |||||
Total operating lease liabilities | $ | 79,269 | $ | 90,832 |
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | |||||||
Weighted-average remaining lease term - Operating leases | 4.21 Years | 4.21 Years | ||||||
Weighted-average discount rate - Operating leases | 3.2 | % | 3.2 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net operating revenues: | ||||||||||||||||
Physical therapy operations | $ | 74,199 | $ | 116,085 | $ | 177,040 | $ | 225,416 | ||||||||
Industrial injury prevention services | 9,658 | 10,288 | 19,534 | 17,188 | ||||||||||||
Total Company | $ | 83,857 | $ | 126,373 | $ | 196,574 | $ | 242,604 | ||||||||
Gross profit: | ||||||||||||||||
Physical therapy operations (excluding closure costs) | $ | 16,199 | $ | 28,433 | $ | 33,978 | $ | 53,610 | ||||||||
Industrial injury prevention services | 3,179 | 3,005 | 4,843 | 4,542 | ||||||||||||
$ | 19,378 | $ | 31,438 | $ | 38,821 | $ | 58,152 | |||||||||
Physical therapy operations - closure costs | 94 | 13 | 3,846 | 9 | ||||||||||||
Gross profit | $ | 19,284 | $ | 31,425 | $ | 34,975 | $ | 58,143 | ||||||||
Total assets: | ||||||||||||||||
Physical therapy operations | $ | 534,238 | $ | 512,657 | ||||||||||||
Industrial injury prevention services | 50,780 | 48,188 | ||||||||||||||
Total Company | $ | 585,018 | $ | 560,845 |
Item 2. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||
Number of clinics, at the end of period | 564 | 581 | 564 | 581 | ||||||||||||
Working Days | 64 | 64 | 127 | 128 | ||||||||||||
Average visits per day per clinic | 28.0 | 26.9 | 27.3 | 26.3 | ||||||||||||
Total patient visits | 1,057,878 | 998,403 | 2,059,388 | 1,954,640 | ||||||||||||
Net patient revenue per visit | $ | 107.16 | $ | 106.16 | $ | 106.83 | $ | 105.67 |
Three Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 14,620 | $ | 9,246 | ||||
Charges to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | (5,169 | ) | (4,344 | ) | ||||
Tax effect at statutory rate (federal and state) of 26.25% | 1,356 | 1,140 | ||||||
$ | 10,807 | $ | 6,042 | |||||
Earnings per share (basic and diluted) | $ | 0.85 | $ | 0.48 | ||||
Adjustments: | ||||||||
Gain on sale of partnership interest | (5,823 | ) | - | |||||
Revaluation of redeemable non-controlling interest | 5,169 | 4,344 | ||||||
Tax effect at statutory rate (federal and state) of 26.25% | 172 | (1,140 | ) | |||||
Operating Results | $ | 10,325 | $ | 9,246 | ||||
Basic and diluted Operating Results per share | $ | 0.81 | $ | 0.73 | ||||
Shares used in computation - basic and diluted | 12,767 | 12,677 |
Three Months Ended | ||||||||
June 30, 2019 | June 30, 2018 | |||||||
Income before taxes | $ | 25,118 | $ | 16,503 | ||||
Less: net income attributable to non-controlling interests: | ||||||||
Non-controlling interests - permanent equity | (1,802 | ) | (1,380 | ) | ||||
Redeemable non-controlling interests - temporary equity | (3,378 | ) | (2,610 | ) | ||||
$ | (5,180 | ) | $ | (3,990 | ) | |||
Income before taxes less net income attributable to non-controlling interests | 19,938 | 12,513 | ||||||
Provision for income taxes | 5,318 | 3,267 | ||||||
Percentage | 26.7 | % | 26.1 | % |
Six Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 23,063 | $ | 16,363 | ||||
Charges to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | (9,830 | ) | (9,425 | ) | ||||
Tax effect at statutory rate (federal and state) of 26.25% | 2,580 | 2,474 | ||||||
$ | 15,813 | $ | 9,412 | |||||
Earnings per share (basic and diluted) | $ | 1.24 | $ | 0.74 | ||||
Adjustments: | ||||||||
Gain on sale of partnership interest | (5,823 | ) | - | |||||
Revaluation of redeemable non-controlling interest | 9,830 | 9,425 | ||||||
Tax effect at statutory rate (federal and state) of 26.25% | (1,052 | ) | (2,474 | ) | ||||
Operating Results | $ | 18,768 | $ | 16,363 | ||||
Basic and diluted Operating Results per share | $ | 1.47 | $ | 1.29 | ||||
Shares used in computation - basic and diluted | 12,738 | 12,647 |
Three Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 10,232 | $ | 14,620 | ||||
Credit (charges) to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | 3,344 | (5,169 | ) | |||||
Tax effect at statutory rate (federal and state) of 26.25% | (878 | ) | 1,356 | |||||
$ | 12,698 | $ | 10,807 | |||||
Earnings per share (basic and diluted) | $ | 0.99 | $ | 0.85 | ||||
Adjustments: | ||||||||
Charges incurred for CFO search | - | - | ||||||
Closure costs | 94 | - | ||||||
Gain on sale of partnership interest and clinics | (1,073 | ) | (5,823 | ) | ||||
Receipts from the CARES Act Provider Relief Fund ("Relief Fund") | (7,958 | ) | - | |||||
Allocation to non-controlling interest | 1,900 | - | ||||||
Revaluation of redeemable non-controlling interest | (3,344 | ) | 5,169 | |||||
Tax effect at statutory rate (federal and state) of 26.25% | 2,725 | 172 | ||||||
Operating Results (without receipts from Relief Fund) | $ | 5,042 | $ | 10,325 | ||||
Receipts from Relief Fund | 7,958 | - | ||||||
Tax effect at statutory rate (federal and state) of 26.25% | (2,089 | ) | - | |||||
Operating Results (including receipts from Relief Fund) | $ | 10,911 | $ | 10,325 | ||||
Basic and diluted Operating Results (without receipts from Relief Fund) per share | $ | 0.39 | $ | 0.81 | ||||
Basic and diluted Operating Results (including receipts from Relief Fund) per share | $ | 0.85 | $ | 0.81 | ||||
Shares used in computation - basic and diluted | 12,843 | 12,767 |
Three Months Ended | ||||||||
June 30, 2020 | June 30, 2019 | |||||||
(in thousands) | ||||||||
Net operating revenues: | ||||||||
Physical therapy operations | $ | 74,199 | $ | 116,085 | ||||
Industrial injury prevention services | 9,658 | 10,288 | ||||||
Total Company | $ | 83,857 | $ | 126,373 | ||||
Gross profit: | ||||||||
Physical therapy operations (excluding closure costs) | $ | 16,199 | $ | 28,433 | ||||
Industrial injury prevention services | 3,179 | 3,005 | ||||||
$ | 19,378 | $ | 31,438 | |||||
Physical therapy operations - closure costs | 94 | 13 | ||||||
Gross profit | $ | 19,284 | $ | 31,425 |
Three Months Ended | ||||||||
June 30, 2020 | June 30, 2019 | |||||||
(in thousands) | ||||||||
Reported net revenues | $ | 83,857 | $ | 126,373 | ||||
2019 sold clinics | - | (6,552 | ) | |||||
2020 sold clinics | (112 | ) | (1,039 | ) | ||||
$ | 83,745 | $ | 118,782 |
Six Months Ended | Three Months Ended | |||||||||||||||
June 30, 2019 | June 30, 2018 | June 30, 2020 | June 30, 2019 | |||||||||||||
Income before taxes | $ | 40,201 | $ | 29,033 | $ | 18,645 | $ | 25,118 | ||||||||
Less: net income attributable to non-controlling interests: | ||||||||||||||||
Non-controlling interests - permanent equity | (3,339 | ) | (2,581 | ) | (1,535 | ) | (1,802 | ) | ||||||||
Redeemable non-controlling interests - temporary equity | (5,773 | ) | (4,346 | ) | (2,996 | ) | (3,378 | ) | ||||||||
$ | (9,112 | ) | $ | (6,927 | ) | $ | (4,531 | ) | $ | (5,180 | ) | |||||
Income before taxes less net income attributable to non-controlling interests | 31,089 | 22,106 | $ | 14,114 | $ | 19,938 | ||||||||||
Provision for income taxes | 8,026 | 5,743 | $ | 3,882 | $ | 5,318 | ||||||||||
Percentage | 25.8 | % | 26.0 | % | 27.5 | % | 26.7 | % |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 11,248 | $ | 23,063 | ||||
Credit (charges) to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | 5,473 | (9,830 | ) | |||||
Tax effect at statutory rate (federal and state) of 26.25% | (1,437 | ) | 2,580 | |||||
$ | 15,284 | $ | 15,813 | |||||
Earnings per share (basic and diluted) | $ | 1.19 | $ | 1.24 | ||||
Adjustments: | ||||||||
Charges incurred for CFO search | 133 | - | ||||||
Closure costs | 3,846 | - | ||||||
Gain on sale of partnership interest and clinics | (1,073 | ) | (5,823 | ) | ||||
Receipts from the CARES Act Provider Relief Fund ("Relief Fund") | (7,958 | ) | - | |||||
Allocation to non-controlling interest | 1,900 | - | ||||||
Revaluation of redeemable non-controlling interest | (5,473 | ) | 9,830 | |||||
Tax effect at statutory rate (federal and state) of 26.25% | 2,264 | (1,052 | ) | |||||
Operating Results (without receipts from Relief Fund) | $ | 8,923 | $ | 18,768 | ||||
Receipts from Relief Fund | 7,958 | - | ||||||
Tax effect at statutory rate (federal and state) of 26.25% | (2,089 | ) | - | |||||
Operating Results (including receipts from Relief Fund) | $ | 14,792 | $ | 18,768 | ||||
Basic and diluted Operating Results (without receipts from Relief Fund) per share | $ | 0.70 | $ | 1.47 | ||||
Basic and diluted Operating Results (including receipts from Relief Fund) per share | $ | 1.15 | $ | 1.47 | ||||
Shares used in computation - basic and diluted | 12,820 | 12,738 |
Six Months Ended | ||||||||
June 30, 2020 | June 30, 2019 | |||||||
(in thousands) | ||||||||
Net operating revenues: | ||||||||
Physical therapy operations | $ | 177,040 | $ | 225,416 | ||||
Industrial injury prevention services | 19,534 | 17,188 | ||||||
Total Company | $ | 196,574 | $ | 242,604 | ||||
Gross profit: | ||||||||
Physical therapy operations (excluding closure costs) | $ | 33,978 | $ | 53,610 | ||||
Industrial injury prevention services | 4,843 | 4,542 | ||||||
$ | 38,821 | $ | 58,152 | |||||
Physical therapy operations - closure costs | 3,846 | 9 | ||||||
Gross profit | $ | 34,975 | $ | 58,143 | ||||
Total Assets: | ||||||||
Physical therapy operations | $ | 534,238 | $ | 512,657 | ||||
Industrial injury prevention services | 50,780 | 48,188 | ||||||
Total Company | $ | 585,018 | $ | 560,845 |
Six Months Ended | ||||||||
June 30, 2020 | June 30, 2019 | |||||||
(in thousands) | ||||||||
Reported net revenues | $ | 196,574 | $ | 242,604 | ||||
2019 sold clinics | - | (12,237 | ) | |||||
2020 sold clinics | (949 | ) | (1,997 | ) | ||||
$ | 195,625 | $ | 228,370 |
Six Months Ended | ||||||||
June 30, 2020 | June 30, 2019 | |||||||
Income before taxes | $ | 22,275 | $ | 40,201 | ||||
Less: net income attributable to non-controlling interests: | ||||||||
Non-controlling interests - permanent equity | (2,061 | ) | (3,339 | ) | ||||
Redeemable non-controlling interests - temporary equity | (4,792 | ) | (5,773 | ) | ||||
$ | (6,853 | ) | $ | (9,112 | ) | |||
Income before taxes less net income attributable to non-controlling interests | $ | 15,422 | $ | 31,089 | ||||
Provision for income taxes | $ | 4,174 | $ | 8,026 | ||||
Percentage | 27.1 | % | 25.8 | % |
ITEM 4. |
(a) | Evaluation of Disclosure Controls and Procedures |
(b) | Changes in Internal Control Over Financial Reporting |
ITEM 1A. | RISK FACTORS. |
ITEM 6. |
Exhibit Number | Description | |
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. | |
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. | |
Rule 13a-14(a)/15d-14(a) Certification of Corporate Controller. | |
Certification Pursuant to 18 U.S.C 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith |
U.S. PHYSICAL THERAPY, INC. | ||
Date: August 7, 2020 | By: | /s/ LAWRANCE W. MCAFEE |
Lawrance W. McAfee | ||
Chief Financial Officer | ||
(duly authorized officer and principal financial and accounting officer) | ||
By: | /s/ JON C. BATES | |
Jon C. Bates | ||
Vice President/Corporate Controller |