☒ | 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) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $.01 par value | USPH | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
Item 1. | 3 | |
3 | ||
4 | ||
5 | ||
Item 2. | ||
Item 3. | 46 | |
Item 4. | ||
PART II—OTHER INFORMATION | ||
Item 1. | 47 | |
Item 6. | ||
49 | ||
Certifications |
ITEM 1. | FINANCIAL STATEMENTS. |
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
ASSETS | (unaudited) | (unaudited) | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 20,419 | $ | 32,918 | $ | 48,572 | $ | 28,567 | ||||||||
Patient accounts receivable, less allowance for credit losses of $2,435 and $2,008, respectively | 45,144 | 41,906 | ||||||||||||||
Patient accounts receivable, less allowance for credit losses of $2,948 and $2,768, respectively | 50,549 | 46,272 | ||||||||||||||
Accounts receivable - other | 9,025 | 9,039 | 18,915 | 16,144 | ||||||||||||
Other current assets | 5,111 | 3,773 | 3,810 | 4,183 | ||||||||||||
Total current assets | 79,699 | 87,636 | 121,846 | 95,166 | ||||||||||||
Fixed assets: | ||||||||||||||||
Furniture and equipment | 57,538 | 55,426 | 60,379 | 58,743 | ||||||||||||
Leasehold improvements | 35,986 | 35,320 | 41,038 | 39,194 | ||||||||||||
Fixed assets, gross | 93,524 | 90,746 | 101,417 | 97,937 | ||||||||||||
Less accumulated depreciation and amortization | 71,964 | 69,081 | 77,188 | 74,958 | ||||||||||||
Fixed assets, net | 21,560 | 21,665 | 24,229 | 22,979 | ||||||||||||
Operating lease right-of-use assets | 87,090 | 81,595 | 101,274 | 96,427 | ||||||||||||
Investment in unconsolidated affiliate | 12,346 | 12,215 | ||||||||||||||
Goodwill | 373,887 | 345,646 | 442,761 | 434,679 | ||||||||||||
Other identifiable intangible assets, net | 59,216 | 56,280 | 92,655 | 86,382 | ||||||||||||
Other assets | 1,506 | 1,539 | 1,333 | 1,578 | ||||||||||||
Total assets | $ | 622,958 | $ | 594,361 | $ | 796,444 | $ | 749,426 | ||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTERESTS | ||||||||||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable - trade | $ | 1,782 | $ | 1,335 | $ | 3,793 | $ | 3,268 | ||||||||
Accounts payable - due to seller of acquired business | 3,203 | 3,203 | ||||||||||||||
Accrued expenses | 44,720 | 59,746 | 41,246 | 45,705 | ||||||||||||
Current portion of operating lease liabilities | 27,860 | 27,512 | 32,083 | 30,475 | ||||||||||||
Current portion of notes payable | 1,017 | 4,899 | ||||||||||||||
Current portion of term loan and notes payable | 4,780 | 830 | ||||||||||||||
Total current liabilities | 75,379 | 93,492 | 85,105 | 83,481 | ||||||||||||
Notes payable, net of current portion | 821 | 596 | 4,258 | 3,587 | ||||||||||||
Revolving line of credit | 38,000 | 16,000 | 0 | 114,000 | ||||||||||||
Term Loan, net of current portion and deferred financing costs | 144,631 | 0 | ||||||||||||||
Deferred taxes | 8,281 | 7,779 | 19,483 | 14,385 | ||||||||||||
Operating lease liabilities, net of current portion | 66,887 | 61,985 | 77,776 | 74,185 | ||||||||||||
Other long-term liabilities | 5,442 | 4,539 | 4,858 | 7,345 | ||||||||||||
Total liabilities | 194,810 | 184,391 | 336,111 | 296,983 | ||||||||||||
Redeemable non-controlling interests - temporary equity | 143,337 | 132,340 | ||||||||||||||
Redeemable non-controlling interest - temporary equity | 151,400 | 155,262 | ||||||||||||||
Commitments and Contingencies | 0 | 0 | ||||||||||||||
U.S. Physical Therapy, Inc. (“USPH”) shareholders’ equity: | ||||||||||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized, 0 shares issued and outstanding | 0 | 0 | 0 | 0 | ||||||||||||
Common stock, $0.01 par value, 20,000,000 shares authorized, 15,121,669 and 15,066,282 shares issued, respectively | 151 | 151 | ||||||||||||||
Common stock, $0.01 par value, 20,000,000 shares authorized, 15,218,982 and 15,126,160 shares issued, respectively | 152 | 151 | ||||||||||||||
Additional paid-in capital | 99,039 | 95,622 | 106,801 | 102,688 | ||||||||||||
Accumulated other comprehensive loss | (395 | ) | 0 | |||||||||||||
Retained earnings | 216,286 | 212,015 | 232,247 | 224,395 | ||||||||||||
Treasury stock at cost, 2,214,737 shares | (31,628 | ) | (31,628 | ) | (31,628 | ) | (31,628 | ) | ||||||||
Total USPH shareholders’ equity | 283,848 | 276,160 | 307,177 | 295,606 | ||||||||||||
Non-controlling interests - permanent equity | 963 | 1,470 | ||||||||||||||
Total USPH shareholders’ equity and non-controlling interests - permanent equity | 284,811 | 277,630 | ||||||||||||||
Total liabilities, redeemable non-controlling interests, | ||||||||||||||||
USPH shareholders’ equity and non-controlling interests - permanent equity | $ | 622,958 | $ | 594,361 | ||||||||||||
Non-controlling interest - permanent equity | 1,756 | 1,575 | ||||||||||||||
Total USPH shareholders’ equity and non-controlling interest - permanent equity | 308,933 | 297,181 | ||||||||||||||
Total liabilities, redeemable non-controlling interest, | ||||||||||||||||
USPH shareholders’ equity and non-controlling interest - permanent equity | $ | 796,444 | $ | 749,426 |
Three Months Ended | For the Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30,2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | June 30,2022 | June 30, 2021 | |||||||||||||||||||||||||
Net patient revenues | $ | 113,238 | $ | 72,279 | $ | 212,492 | $ | 172,405 | ||||||||||||||||||||||||
Other revenues | 13,690 | 11,578 | 26,804 | 24,169 | ||||||||||||||||||||||||||||
Net revenues | 126,928 | 83,857 | 239,296 | 196,574 | ||||||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Net patient revenue | $ | 118,196 | $ | 113,238 | $ | 227,734 | $ | 212,492 | ||||||||||||||||||||||||
Other revenue | 22,460 | 13,690 | 44,626 | 26,804 | ||||||||||||||||||||||||||||
Net revenue | 140,656 | 126,928 | 272,360 | 239,296 | ||||||||||||||||||||||||||||
Operating cost: | ||||||||||||||||||||||||||||||||
Salaries and related costs | 68,866 | 43,429 | 132,681 | 112,433 | 79,939 | 68,866 | 155,088 | 132,681 | ||||||||||||||||||||||||
Rent, supplies, contract labor and other | 22,416 | 20,311 | 43,836 | 43,220 | 28,345 | 22,394 | 57,007 | 43,851 | ||||||||||||||||||||||||
Provision for credit losses | 1,364 | 739 | 2,564 | 2,100 | 1,551 | 1,364 | 2,856 | 2,564 | ||||||||||||||||||||||||
Closure costs - lease and other | (22 | ) | 94 | 15 | 1,987 | |||||||||||||||||||||||||||
Closure costs - derecognition of goodwill | 0 | 0 | 0 | 1,859 | ||||||||||||||||||||||||||||
Total operating costs | 92,624 | 64,573 | 179,096 | 161,599 | ||||||||||||||||||||||||||||
Total operating cost | 109,835 | 92,624 | 214,951 | 179,096 | ||||||||||||||||||||||||||||
Gross profit | 34,304 | 19,284 | 60,200 | 34,975 | 30,821 | 34,304 | 57,409 | 60,200 | ||||||||||||||||||||||||
Corporate office costs | 12,074 | 9,022 | 22,948 | 20,699 | 10,741 | 12,074 | 22,297 | 22,948 | ||||||||||||||||||||||||
Operating income | 22,230 | 10,262 | 37,252 | 14,276 | 20,080 | 22,230 | 35,112 | 37,252 | ||||||||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||||||||||
Relief Funds | 0 | 7,959 | 0 | 7,959 | ||||||||||||||||||||||||||||
Gain on sale of partnership interest and clinics | 0 | 1,073 | 0 | 1,073 | ||||||||||||||||||||||||||||
Other income and expense | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliate | 340 | 0 | 679 | 0 | ||||||||||||||||||||||||||||
Interest and other income, net | 46 | 4 | 100 | 47 | 679 | 46 | 725 | 100 | ||||||||||||||||||||||||
Loss on revaluation of put-right liability | (617 | ) | 0 | (14 | ) | 0 | ||||||||||||||||||||||||||
Interest expense - debt and other | (237 | ) | (653 | ) | (483 | ) | (1,080 | ) | (987 | ) | (237 | ) | (1,527 | ) | (483 | ) | ||||||||||||||||
Total other income and expense | (191 | ) | 8,383 | (383 | ) | 7,999 | (585 | ) | (191 | ) | (137 | ) | (383 | ) | ||||||||||||||||||
Income before taxes | 22,039 | 18,645 | 36,869 | 22,275 | 19,495 | 22,039 | 34,975 | 36,869 | ||||||||||||||||||||||||
Provision for income taxes | 4,567 | 3,882 | 7,511 | 4,174 | 4,239 | 4,567 | 7,737 | 7,511 | ||||||||||||||||||||||||
Net income | $ | 17,472 | $ | 14,763 | $ | 29,358 | $ | 18,101 | 15,256 | 17,472 | 27,238 | 29,358 | ||||||||||||||||||||
Less: net income attributable to non-controlling interests: | ||||||||||||||||||||||||||||||||
Redeemable non-controlling interests - temporary equity | (3,611 | ) | (2,996 | ) | (6,064 | ) | (4,792 | ) | ||||||||||||||||||||||||
Non-controlling interests - permanent equity | (1,425 | ) | (1,535 | ) | (2,685 | ) | (2,061 | ) | ||||||||||||||||||||||||
Less: net income attributable to non-controlling interest: | ||||||||||||||||||||||||||||||||
Redeemable non-controlling interest - temporary equity | (2,626 | ) | (3,611 | ) | (5,183 | ) | (6,064 | ) | ||||||||||||||||||||||||
Non-controlling interest - permanent equity | (1,435 | ) | (1,425 | ) | (2,061 | ) | (2,685 | ) | ||||||||||||||||||||||||
$ | (5,036 | ) | $ | (4,531 | ) | $ | (8,749 | ) | $ | (6,853 | ) | (4,061 | ) | (5,036 | ) | (7,244 | ) | (8,749 | ) | |||||||||||||
Net income attributable to USPH shareholders | $ | 12,436 | $ | 10,232 | $ | 20,609 | $ | 11,248 | $ | 11,195 | $ | 12,436 | $ | 19,994 | $ | 20,609 | ||||||||||||||||
Basic and diluted earnings per share attributable to USPH shareholders | $ | 0.82 | $ | 0.99 | $ | 1.03 | $ | 1.19 | $ | 0.87 | $ | 0.82 | $ | 1.55 | $ | 1.03 | ||||||||||||||||
Shares used in computation - basic and diluted | 12,902 | 12,843 | 12,886 | 12,820 | 12,998 | 12,902 | 12,968 | 12,886 | ||||||||||||||||||||||||
Dividends declared per common share | $ | 0.35 | $ | 0 | $ | 0.70 | $ | 0.32 | $ | 0.41 | $ | 0.35 | $ | 0.82 | $ | 0.70 |
Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Net income | $ | 15,256 | $ | 17,472 | $ | 27,238 | $ | 29,358 | ||||||||
Other comprehensive loss | ||||||||||||||||
Unrealized loss on cash flow hedge | (531 | ) | 0 | (531 | ) | 0 | ||||||||||
Tax effect at statutory rate (federal and state) of 25.55% | 136 | 0 | 136 | 0 | ||||||||||||
Comprehensive income | $ | 14,861 | $ | 17,472 | $ | 26,843 | $ | 29,358 | ||||||||
Comprehensive income attributable to non-controlling interest | (4,061 | ) | (5,036 | ) | (7,244 | ) | (8,749 | ) | ||||||||
Comprehensive income attributable to USPH shareholders | $ | 10,800 | $ | 12,436 | $ | 19,599 | $ | 20,609 |
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income including non-controlling interests | $ | 29,358 | $ | 18,101 | ||||||||||||
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities: | ||||||||||||||||
Net income including non-controlling interest and earnings from unconsolidated affiliates, net | $ | 27,238 | $ | 29,358 | ||||||||||||
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 5,484 | 5,333 | 7,298 | 5,484 | ||||||||||||
Provision for credit losses | 2,564 | 2,100 | 2,856 | 2,564 | ||||||||||||
Equity-based awards compensation expense | 3,405 | 3,389 | 3,660 | 3,405 | ||||||||||||
Deferred income taxes | 3,160 | (1,737 | ) | 4,307 | 3,160 | |||||||||||
Loss on sale of fixed assets | 106 | 429 | ||||||||||||||
Gain on sale of partnership interest | 0 | (1,073 | ) | |||||||||||||
Derecognition (write-off) of goodwill - closed clinics | 0 | 1,859 | ||||||||||||||
Loss on revaluation of put-right liability | 14 | 0 | ||||||||||||||
(Gain) loss on sale of clinics and fixed assets | (614 | ) | 106 | |||||||||||||
Earnings in unconsolidated affiliate | (679 | ) | 0 | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
(Increase) decrease in patient accounts receivable | (5,325 | ) | 8,880 | |||||||||||||
Decrease in accounts receivable - other | 129 | 283 | ||||||||||||||
Increase in patient accounts receivable | (7,459 | ) | (5,325 | ) | ||||||||||||
(Increase) decrease in accounts receivable - other | (2,862 | ) | 129 | |||||||||||||
(Increase) decrease in other assets | (255 | ) | 5,969 | 230 | (255 | ) | ||||||||||
(Decrease) increase in accounts payable and accrued expenses | (3,672 | ) | 4,478 | |||||||||||||
Increase in other long-term liabilities | 602 | 345 | ||||||||||||||
Decrease in accounts payable and accrued expenses | (3,891 | ) | (3,672 | ) | ||||||||||||
(Decrease) increase in other long-term liabilities | (2,587 | ) | 602 | |||||||||||||
Net cash provided by operating activities | 35,556 | 48,356 | 27,511 | 35,556 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Purchase of fixed assets | (3,301 | ) | (4,628 | ) | (4,569 | ) | (3,301 | ) | ||||||||
Purchase of majority interest in businesses, net of cash acquired | (20,402 | ) | (11,633 | ) | (11,799 | ) | (20,402 | ) | ||||||||
Purchase of redeemable non-controlling interest, temporary equity | (9,536 | ) | (2,388 | ) | (8,648 | ) | (9,536 | ) | ||||||||
Purchase of non-controlling interest, permanent equity | 0 | (144 | ) | (156 | ) | 0 | ||||||||||
Proceeds on sale of redeemable non-controlling interest, temporary equity | 32 | 19 | ||||||||||||||
Proceeds on sales of partnership interest, clinics and fixed assets | (168 | ) | 695 | 740 | (168 | ) | ||||||||||
Distributions from unconsolidated affiliate | 548 | 0 | ||||||||||||||
Proceeds on sales of redeemable non-controlling interest-temporary | 344 | 32 | ||||||||||||||
Net cash used in investing activities | (33,375 | ) | (18,079 | ) | (23,540 | ) | (33,375 | ) | ||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Distributions to non-controlling interests, permanent and temporary equity | (9,398 | ) | (5,707 | ) | ||||||||||||
Distributions to non-controlling interest, permanent and temporary equity | (7,202 | ) | (9,398 | ) | ||||||||||||
Cash dividends paid to shareholders | (9,028 | ) | (4,110 | ) | (10,659 | ) | (9,028 | ) | ||||||||
Proceeds from revolving line of credit | 128,000 | 99,000 | 61,000 | 128,000 | ||||||||||||
Proceeds from term loan | 150,000 | 0 | ||||||||||||||
Payments on revolving line of credit | (106,000 | ) | (112,000 | ) | (175,000 | ) | (106,000 | ) | ||||||||
Principal payments on notes payable | (4,207 | ) | (314 | ) | (338 | ) | (4,207 | ) | ||||||||
(Payment) receipt of Medicare Accelerated and Advance Funds | (14,054 | ) | 12,861 | 0 | (14,054 | ) | ||||||||||
Payment of deferred financing costs | (1,779 | ) | 0 | |||||||||||||
Other | 7 | 0 | 12 | 7 | ||||||||||||
Net cash used in financing activities | (14,680 | ) | (10,270 | ) | 16,034 | (14,680 | ) | |||||||||
Net (decrease) increase in cash and cash equivalents | (12,499 | ) | 20,007 | |||||||||||||
Net decrease in cash and cash equivalents | 20,005 | (12,499 | ) | |||||||||||||
Cash and cash equivalents - beginning of period | 32,918 | 23,548 | 28,567 | 32,918 | ||||||||||||
Cash and cash equivalents - end of period | $ | 20,419 | $ | 43,555 | $ | 48,572 | $ | 20,419 | ||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Income taxes | $ | 6,967 | $ | 57 | $ | 4,524 | $ | 6,967 | ||||||||
Interest | $ | 741 | $ | 944 | ||||||||||||
Interest paid | $ | 1,319 | $ | 741 | ||||||||||||
Non-cash investing and financing transactions during the period: | ||||||||||||||||
Purchase of businesses - seller financing portion | $ | 550 | $ | 300 | $ | 374 | $ | 550 | ||||||||
Purchase of businesses - payable | $ | 1,000 | $ | 0 | ||||||||||||
Purchase of redeemable non-controlling interest - notes payable | $ | 0 | $ | 137 | ||||||||||||
Purchase of businesses - contingent consideration | $ | 0 | $ | 1,000 | ||||||||||||
Notes payable related to purchase of redeemable non-controlling interest, temporary equity | $ | 948 | $ | 0 | ||||||||||||
Notes payable due to purchase of non-controlling interest, permanent equity | $ | 0 | $ | 699 | $ | 296 | $ | 0 | ||||||||
Note receivables related to sale of partnership interest | $ | 287 | $ | 386 | ||||||||||||
Notes receivable related to sale of partnership interest | $ | 0 | $ | 287 | ||||||||||||
Notes receivable related to sale of partnership interest - redeemable non-controlling interest | $ | 1,476 | $ | 0 |
U.S.Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | |||||||||||||||||||||||||||||||
For the three months ended June 30, 2021 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||
Balance March 31, 2021 | 15,111 | $ | 151 | $ | 97,286 | $ | 210,375 | (2,215 | ) | $ | (31,628 | ) | $ | 276,184 | $ | 1,057 | $ | 277,241 | ||||||||||||||||||
Issuance of restricted stock, net of cancellations | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | 0 | 0 | 0 | (1,897 | ) | - | 0 | (1,897 | ) | 0 | (1,897 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 1,754 | 0 | - | 0 | 1,754 | 0 | 1,754 | |||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (4,514 | ) | - | 0 | (4,514 | ) | 0 | (4,514 | ) | ||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (1,510 | ) | (1,510 | ) | |||||||||||||||||||||||||
Other | - | 0 | (1 | ) | (114 | ) | - | 0 | (115 | ) | (9 | ) | (124 | ) | ||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 1,425 | 1,425 | |||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 12,436 | - | 0 | 12,436 | 0 | 12,436 | |||||||||||||||||||||||||||
Balance June 30, 2021 | 15,121 | $ | 151 | $ | 99,039 | $ | 216,286 | (2,215 | ) | $ | (31,628 | ) | $ | 283,848 | $ | 963 | $ | 284,811 |
U.S.Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||
For the three months ended June 30, 2022 | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance March 31, 2022 | $ | 15,206 | 151 | $ | 105,205 | 0 | $ | 227,243 | (2,215 | ) | $ | (31,628 | ) | $ | 300,971 | $ | 1,245 | $ | 302,216 | |||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 13 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | 0 | 0 | 0 | 0 | 116 | 0 | 0 | 116 | 0 | 116 | ||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 1,814 | 0 | 0 | - | 0 | 1,814 | 0 | 1,814 | ||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | 0 | 1 | 0 | 0 | - | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||
Purchase of partnership interests - non-controlling interest | - | 0 | (219 | ) | 0 | 0 | - | 0 | (219 | ) | 239 | 20 | ||||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | 0 | 0 | 0 | (5,332 | ) | - | 0 | (5,332 | ) | 0 | (5,332 | ) | |||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | 0 | - | 0 | 0 | (1,163 | ) | (1,163 | ) | ||||||||||||||||||||||||||||
Deferred taxes related to redeeemable non-controlling interest - temporary equity | - | 0 | 0 | 0 | (1,486 | ) | - | 0 | (1,486 | ) | 0 | (1,486 | ) | |||||||||||||||||||||||||||
Other | - | 0 | 0 | 0 | 511 | - | 0 | 511 | 0 | 511 | ||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | 0 | - | 0 | 0 | 1,435 | 1,435 | ||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 0 | 11,195 | - | 0 | 11,195 | 0 | 11,195 | ||||||||||||||||||||||||||||||
Other comprehensive loss | - | 0 | 0 | (395 | ) | 0 | - | 0 | (395 | ) | 0 | (395 | ) | |||||||||||||||||||||||||||
Balance June 30, 2022 | 15,219 | 152 | $ | 106,801 | $ | (395 | ) | $ | 232,247 | (2,215 | ) | $ | (31,628 | ) | $ | 307,177 | $ | 1,756 | $ | 308,933 |
U.S.Physical Therapy, Inc. | U.S.Physical Therapy, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2021 | Shares | Amount | Paid-In Capital | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | 15,065 | $ | 151 | $ | 95,622 | $ | 212,015 | (2,215 | ) | $ | (31,628 | ) | $ | 276,160 | $ | 1,470 | $ | 277,630 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2022 | Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Shares | Amount | Total Shareholders’ Equity | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2021 | $ | 15,126 | 151 | (2,215 | ) | $ | (31,628 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 56 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 93 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | 0 | 0 | (7,310 | ) | - | 0 | (7,310 | ) | 0 | (7,310 | ) | - | 0 | 0 | 0 | 3 | - | 0 | 3 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 3,403 | 0 | - | 0 | 3,403 | 0 | 3,403 | - | 0 | 3,660 | 0 | 0 | - | 0 | 3,660 | 0 | 3,660 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (9,028 | ) | - | 0 | (9,028 | ) | 0 | (9,028 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | 0 | 707 | 0 | 0 | - | 0 | 707 | 0 | 707 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of partnership interests - non-controlling interest | - | 0 | (265 | ) | 0 | 0 | - | 0 | (265 | ) | (95 | ) | (360 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | 0 | 0 | 0 | (10,659 | ) | - | 0 | (10,659 | ) | 0 | (10,659 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (3,182 | ) | (3,182 | ) | - | 0 | 0 | 0 | 0 | - | 0 | 0 | (2,471 | ) | (2,471 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Short swing profit settlement | - | 0 | 13 | 0 | - | 0 | 13 | 0 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes related to redeeemable non-controlling interest - temporary equity | - | 0 | 0 | 0 | (1,486 | ) | - | 0 | (1,486 | ) | 0 | (1,486 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 0 | 1 | 0 | - | 0 | 1 | (10 | ) | (9 | ) | - | 0 | 11 | 0 | 0 | - | 0 | 11 | 686 | 697 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 2,685 | 2,685 | - | 0 | 0 | 0 | 0 | - | 0 | 0 | 2,061 | 2,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 20,609 | - | 0 | 20,609 | 0 | 20,609 | - | 0 | 0 | 0 | 19,994 | - | 0 | 19,994 | 0 | 19,994 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2021 | 15,121 | $ | 151 | $ | 99,039 | $ | 216,286 | (2,215 | ) | $ | (31,628 | ) | $ | 283,848 | $ | 963 | $ | 284,811 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | 0 | 0 | (395 | ) | 0 | - | 0 | (395 | ) | 0 | (395 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2022 | 15,219 | 152 | $ | 106,801 | $ | (395 | ) | $ | 232,247 | (2,215 | ) | $ | (31,628 | ) | $ | 307,177 | $ | 1,756 | $ | 308,933 |
U.S.Physical Therapy, Inc. | U.S.Physical Therapy, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2021 | Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Shares | Amount | Total Shareholders’ Equity | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 31, 2021 | 15,111 | 151 | (2,215 | ) | $ | (31,628 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | 0 | 0 | 0 | 2,466 | 0 | 0 | 2,466 | 0 | 2,466 | 0 | 0 | 0 | 0 | (1,897 | ) | 0 | 0 | (1,897 | ) | 0 | (1,897 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 1,502 | 0 | - | 0 | 1,502 | 0 | 1,502 | - | 0 | 1,754 | 0 | 0 | - | 0 | 1,754 | 0 | 1,754 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | 0 | (4,514 | ) | - | 0 | (4,514 | ) | 0 | (4,514 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (1,313 | ) | (1,313 | ) | - | 0 | 0 | 0 | 0 | - | 0 | 0 | (1,510 | ) | (1,510 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 0 | 0 | (10 | ) | - | 0 | (10 | ) | (28 | ) | (38 | ) | - | 0 | (1 | ) | 0 | (114 | ) | - | 0 | (115 | ) | (9 | ) | (124 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 1,535 | 1,535 | - | 0 | 0 | 0 | 0 | - | 0 | 0 | 1,425 | 1,425 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 10,232 | - | 0 | 10,232 | 0 | 10,232 | - | 0 | 0 | 0 | 12,436 | - | 0 | 12,436 | 0 | 12,436 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2020 | 15,058 | $ | 151 | $ | 91,258 | $ | 195,473 | (2,215 | ) | $ | (31,628 | ) | $ | 255,254 | $ | 1,434 | $ | 256,688 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2021 | 15,121 | 151 | $ | 99,039 | $ | 0 | $ | 216,286 | (2,215 | ) | $ | (31,628 | ) | $ | 283,848 | $ | 963 | $ | 284,811 |
U.S.Physical Therapy, Inc. | U.S.Physical Therapy, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2021 | Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Shares | Amount | Total Shareholders’ Equity | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | 15,065 | 151 | (2,215 | ) | $ | (31,628 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 69 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 56 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | - | 0 | 0 | 4,036 | - | 0 | 4,036 | 0 | 4,036 | - | 0 | 0 | 0 | (7,310 | ) | - | 0 | (7,310 | ) | 0 | (7,310 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 3,389 | 0 | - | 0 | 3,389 | 0 | 3,389 | - | 0 | 3,403 | 0 | 0 | - | 0 | 3,403 | 0 | 3,403 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | 0 | 486 | 0 | - | 0 | 486 | 0 | 486 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (4,110 | ) | - | 0 | (4,110 | ) | 0 | (4,110 | ) | - | 0 | 0 | 0 | (9,028 | ) | - | 0 | (9,028 | ) | 0 | (9,028 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (2,043 | ) | (2,043 | ) | - | 0 | 0 | 0 | 0 | - | 0 | 0 | (3,182 | ) | (3,182 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Short swing profit settlement | - | 0 | 13 | 0 | 0 | - | 0 | 13 | 0 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 0 | 0 | (53 | ) | - | 0 | (53 | ) | (28 | ) | (81 | ) | - | 0 | 1 | 0 | 0 | - | 0 | 1 | (10 | ) | (9 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 2,061 | 2,061 | - | 0 | 0 | 0 | 0 | - | 0 | 0 | 2,685 | 2,685 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 11,248 | - | 0 | 11,248 | 0 | 11,248 | - | 0 | 0 | 0 | 20,609 | - | 0 | 20,609 | 0 | 20,609 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2020 | 15,058 | $ | 151 | $ | 91,258 | $ | 195,473 | (2,215 | ) | $ | (31,628 | ) | $ | 255,254 | $ | 1,434 | $ | 256,688 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 30, 2021 | 15,121 | 151 | $ | 99,039 | $ | 0 | $ | 216,286 | (2,215 | ) | $ | (31,628 | ) | $ | 283,848 | $ | 963 | $ | 284,811 |
1. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
Acquisition | Date | Acquired | Clinics | |||||||
March 2022 Acquisition | March 31, 2022 | 70 | % | 6 | ||||||
December 2021 Acquisition | December 31, 2021 | 75 | % | 3 | ||||||
November 2021 Acquisition | November 30, 2021 | 70 | % | 0 | IIPS* | |||||
September 2021 Acquisition | September 30, 2021 | 100 | % | 0 | IIPS* | |||||
June 2021 Acquisition | June 30, 2021 | 65 | % | 8 | ||||||
March 2021 Acquisition | March 31, 2021 | 70 | % | 6 |
* | Industrial injury prevention services business |
Physical Therapy Operations | ||||
Cash paid, net of cash acquired | $ | 11,799 | ||
Seller notes | 374 | |||
Contingent payments | 100 | |||
Total consideration | $ | 12,273 | ||
Estimated fair value of net tangible assets acquired: | ||||
Total current assets | $ | 466 | ||
Total non-current assets | 2,655 | |||
Total liabilities | (2,664 | ) | ||
Net tangible assets acquired | 457 | |||
Customer and referral relationships | 3,742 | |||
Non-compete agreements | 247 | |||
Tradenames | 659 | |||
Goodwill | 12,114 | |||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | (4,946 | ) | ||
$ | 12,273 |
Physical Therapy | ||||||||||||
IIPS* | Operations | Total | ||||||||||
Cash paid, net of cash acquired | $ | 63,193 | $ | 23,544 | $ | 86,737 | ||||||
Seller notes | 1,250 | 800 | 2,050 | |||||||||
Contingent payments | 2,520 | 837 | 3,357 | |||||||||
Other payable | 0 | 1,000 | 1,000 | |||||||||
Seller put right | 3,522 | 0 | 3,522 | |||||||||
Total consideration | $ | 70,485 | $ | 26,181 | $ | 96,666 | ||||||
Estimated fair value of net tangible assets acquired: | ||||||||||||
Total current assets | $ | 5,588 | $ | 1,891 | $ | 7,479 | ||||||
Total non-current assets | 12,620 | 7,014 | 19,634 | |||||||||
Total liabilities | (4,842 | ) | (8,399 | ) | (13,241 | ) | ||||||
Net tangible assets acquired | $ | 13,366 | $ | 506 | $ | 13,872 | ||||||
Customer and referral relationships | 21,127 | 7,969 | 29,096 | |||||||||
Non-compete agreements | 500 | 415 | 915 | |||||||||
Tradenames | 5,141 | 2,144 | 7,285 | |||||||||
Goodwill | 58,257 | 27,103 | 85,360 | |||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | (27,906 | ) | (11,956 | ) | (39,862 | ) | ||||||
$ | 70,485 | $ | 26,181 | $ | 96,666 |
* | Industrial injusry prevention services |
Cash paid, net of cash acquired | $ | 20,401 | ||
Seller note | 550 | |||
Payable | 1,000 | |||
Total consideration | $ | 21,951 | ||
Estimated fair value of net tangible assets acquired: | ||||
Total current assets | $ | 476 | ||
Total non-current assets | 505 | |||
Total liabilities | (1,159 | ) | ||
Net tangible assets acquired | $ | (178 | ) | |
Referral relationships | 3,249 | |||
Non-compete | 495 | |||
Tradename | 1,290 | |||
Goodwill | 27,814 | |||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | (10,719 | ) | ||
$ | 21,951 |
Cash paid, net of cash acquired | $ | 23,912 | ||
Seller note | 1,121 | |||
Total consideration | $ | 25,033 | ||
Estimated fair value of net tangible assets acquired: | ||||
Total current assets | $ | 1,271 | ||
Total non-current assets | 196 | |||
Total liabilities | (555 | ) | ||
Net tangible assets acquired | $ | 912 | ||
Referral relationships | 4,497 | |||
Non-compete | 522 | |||
Tradename | 1,557 | |||
Goodwill | 28,843 | |||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | (11,298 | ) | ||
$ | 25,033 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Net patient revenues | $ | 113,238 | $ | 72,279 | $ | 212,492 | $ | 172,405 | ||||||||
Management contract revenues | 2,739 | 1,592 | 5,297 | 3,740 | ||||||||||||
Other revenues | 918 | 328 | 1,464 | 895 | ||||||||||||
Physical therapy operations | $ | 116,895 | $ | 74,199 | $ | 219,253 | $ | 177,040 | ||||||||
Industrial injury prevention services revenues | 10,033 | 9,658 | 20,043 | 19,534 | ||||||||||||
$ | 126,928 | $ | 83,857 | $ | 239,296 | $ | 196,574 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Net patient revenue | $ | 118,196 | $ | 113,238 | $ | 227,734 | $ | 212,492 | ||||||||
Other revenue | 898 | 918 | 1,770 | 1,464 | ||||||||||||
Physical therapy operations | $ | 119,094 | $ | 114,156 | $ | 229,504 | $ | 213,956 | ||||||||
Management contract revenue | 2,125 | 2,739 | 4,351 | 5,297 | ||||||||||||
Industrial injury prevention services revenue | 19,437 | 10,033 | 38,505 | 20,043 | ||||||||||||
$ | 140,656 | $ | 126,928 | $ | 272,360 | $ | 239,296 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||||||
Net income attributable to USPH shareholders | $ | 12,436 | $ | 10,232 | $ | 20,609 | $ | 11,248 | ||||||||
(Charges) credit to retained earnings: | ||||||||||||||||
Revaluation of redeemable non-controlling interest | (2,549 | ) | 3,344 | (9,819 | ) | 5,473 | ||||||||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively | 651 | (878 | ) | 2,508 | (1,437 | ) | ||||||||||
$ | 10,538 | $ | 12,698 | $ | 13,298 | $ | 15,284 | |||||||||
Earnings per share (basic and diluted) | $ | 0.82 | $ | 0.99 | $ | 1.03 | $ | 1.19 | ||||||||
Shares used in computation: | ||||||||||||||||
Basic and diluted earnings per share - weighted-average shares | 12,902 | 12,843 | 12,886 | 12,820 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||||||
Net income attributable to USPH shareholders | $ | 11,195 | $ | 12,436 | $ | 19,994 | $ | 20,609 | ||||||||
(Charges) credit to retained earnings: | ||||||||||||||||
Revaluation of redeemable non-controlling interest | 210 | (2,549 | ) | 57 | (9,819 | ) | ||||||||||
Tax effect at statutory rate (federal and state) of 25.55% | (54 | ) | 651 | (15 | ) | 2,508 | ||||||||||
$ | 11,351 | $ | 10,538 | $ | 20,036 | $ | 13,298 | |||||||||
Earnings per share (basic and diluted) | $ | 0.87 | $ | 0.82 | $ | 1.55 | $ | 1.03 | ||||||||
Shares used in computation: | ||||||||||||||||
Basic and diluted earnings per share - weighted-average shares | 12,998 | 12,902 | 12,968 | 12,886 |
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 a defined |
1. | Put Right |
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. |
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. |
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 |
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. |
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. |
4. | The Purchase Price for the initial equity interest purchased by the Company is, in almost all cases, 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 or 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. |
1. | Prior to the acquisition, the Progressive Subsidiaries were owned by a legal entity (“Progressive Parent”) controlled by its individual owners (the “Progressive Selling Shareholders”), who work in and manage the Progressive business. |
2. | In conjunction with the acquisition, the Selling Shareholders caused the Progressive Parent to transfer its ownership of the Progressive Subsidiaries into a newly-formed limited liability company (“Progressive NewCo”), in exchange for one hundred percent (100%) of the membership interests in NewCo. Therefore, in this step, NewCo became wholly-owned by the Selling Shareholders. |
3. | The Company entered into an agreement (the “Progressive Purchase Agreement”) to acquire from the Selling Shareholders a majority of the membership interest in NewCo. The consideration for the acquisition is primarily payable in the form of cash at closing, a relatively small portion paid in cash after the closing contingent on certain performance criteria, and a small note in lieu of an escrow (the “Progressive Purchase Price”). |
4. | The Company and the Selling Shareholders also executed an operating agreement (the “Progressive Operating Agreement”) for NewCo that sets forth the rights and obligations of the members of NewCo. |
5. | As noted above, the Company did not purchase 100% of the membership interests in NewCo and the Selling Shareholders retained a portion of the membership interest in NewCo (“Progressive Selling Shareholders’ Interest”). |
6. | The Company and the Selling Shareholders executed a non-compete agreement (the “Progressive Non-Compete Agreement”) which restricts the Selling Shareholders from competing for a specified period of time (the “Progressive Non-Compete Term”). |
7. | The Non-Compete Term commences as of the date of the Acquisition and expires on the later of: |
a. | Two years after the date a Selling Shareholder no longer is involved in the management of NewCo or |
b. | Seven years from the date of the acquisition. |
8. | The Non-Compete Agreement applies to the entire United States. |
9. | The Put Right (as defined below) and the Call Right (as defined below) do not have an expiration date. |
1. | Put Right |
a. | Each of the Selling Shareholders has the right to sell 30% of their respective residual interests on each of the 4th and 5th anniversaries of the acquisition closing, and then 10% on each of the 6th and 7th anniversaries |
b. | In the event that any Selling Shareholder terminates his management relationship with NewCo for any reason on or after the seventh anniversary of the Closing Date, the Selling Shareholder has the Put Right, and upon the exercise of the Put Right, the Selling Shareholder’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 ceases to perform management services on behalf of NewCo, the Company thereafter shall have an irrevocable right to purchase from such Selling Shareholder his Interest, in each case 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. |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||
Beginning balance | $ | 138,924 | $ | 140,498 | $ | 132,340 | $ | 137,750 | $ | 158,008 | $ | 138,924 | $ | 155,262 | $ | 132,340 | ||||||||||||||||
Operating results allocated to redeemable non-controlling interest partners | 3,611 | 2,996 | 6,064 | 4,792 | 2,626 | 3,611 | 5,183 | 6,064 | ||||||||||||||||||||||||
Distributions to redeemable non-controlling interest partners | (2,622 | ) | (2,054 | ) | (6,216 | ) | (3,665 | ) | (2,328 | ) | (2,622 | ) | (4,731 | ) | (6,216 | ) | ||||||||||||||||
Changes in the fair value of redeemable non-controlling interest | 2,549 | (3,344 | ) | 9,819 | (5,473 | ) | (210 | ) | 2,549 | (57 | ) | 9,819 | ||||||||||||||||||||
Purchases of redeemable non-controlling interest | (4,707 | ) | (1,372 | ) | (9,536 | ) | (3,224 | ) | (7,138 | ) | (4,707 | ) | (9,596 | ) | (9,536 | ) | ||||||||||||||||
Acquired interest | 5,556 | 0 | 10,719 | 6,471 | 0 | 5,556 | 4,946 | 10,719 | ||||||||||||||||||||||||
Sales of redeemable non-controlling interest - temporary equity | 0 | 564 | 319 | 564 | 2,187 | 0 | 2,187 | 319 | ||||||||||||||||||||||||
Notes receivable related to sales of redeemable non-controlling interest - temporary equity | 0 | (545 | ) | (287 | ) | (545 | ) | (1,843 | ) | 0 | (1,843 | ) | (287 | ) | ||||||||||||||||||
Adjustments in notes receivable related to the the sales of redeemable non-controlling interest - temporary equity | 26 | (15 | ) | 115 | 58 | 98 | 26 | 49 | 115 | |||||||||||||||||||||||
Ending balance | $ | 143,337 | $ | 136,728 | $ | 143,337 | $ | 136,728 | $ | 151,400 | $ | 143,337 | $ | 151,400 | $ | 143,337 |
June 30, 2021 | June 30, 2020 | |||||||
Contractual time period has lapsed but holder's employment has not been terminated | $ | 73,915 | $ | 72,815 | ||||
Contractual time period has not lapsed and holder's employment has not been terminated | 69,422 | 63,913 | ||||||
Holder's employment has terminated and contractual time period has expired | 0 | 0 | ||||||
Holder's employment has terminated and contractual time period has not expired | 0 | 0 | ||||||
$ | 143,337 | $ | 136,728 |
Six Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Contractual time period has lapsed but holder’s employment has not terminated | $ | 73,204 | $ | 73,915 | ||||
Contractual time period has not lapsed and holder’s employment has not terminated | 78,196 | 69,422 | ||||||
Holder’s employment has terminated and contractual time period has expired | 0 | 0 | ||||||
Holder’s employment has terminated and contractual time period has not expired | 0 | 0 | ||||||
$ | 151,400 | $ | 143,337 |
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
Beginning balance | $ | 345,646 | $ | 317,676 | $ | 434,679 | $ | 345,646 | ||||||||
Goodwill acquired | 27,814 | 28,540 | 12,114 | 89,746 | ||||||||||||
Goodwill derecognition (write-off) related to closed clinics | 0 | (1,859 | ) | |||||||||||||
Goodwill adjustments for purchase price allocation of businesses acquired in prior year | 427 | 1,289 | (4,032 | ) | (713 | ) | ||||||||||
Ending balance | $ | 373,887 | $ | 345,646 | $ | 442,761 | $ | 434,679 |
June 30, 2021 | December 31, 2020 | |||||||
Tradenames | $ | 32,836 | $ | 32,317 | ||||
Referral relationships, net of accumulated amortization of $16,082 and $14,522, respectively | 24,707 | 22,119 | ||||||
Non-compete agreements, net of accumulated amortization of $6,170 and $5,993, respectively | 1,673 | 1,844 | ||||||
$ | 59,216 | $ | 56,280 |
June 30, 2022 | December 31, 2021 | |||||||
Tradenames | $ | 39,838 | $ | 38,790 | ||||
Customer and referral relationships, net of accumulated amortization of $20,772 and $17,762, respectively | 51,047 | 45,643 | ||||||
Non-compete agreements, net of accumulated amortization of $6,717 and $6,450, respectively | 1,770 | 1,949 | ||||||
$ | 92,655 | $ | 86,382 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||
Referral relationships | $ | 778 | $ | 836 | $ | 1,561 | $ | 1,449 | ||||||||||||||||||||||||
Customer and referral relationships | $ | 1,339 | $ | 778 | $ | 3,011 | $ | 1,561 | ||||||||||||||||||||||||
Non-compete agreements | 138 | 87 | 177 | 264 | 120 | 138 | 267 | 177 | ||||||||||||||||||||||||
$ | 916 | $ | 923 | $ | 1,738 | $ | 1,713 | $ | 1,459 | $ | 916 | $ | 3,278 | $ | 1,738 |
Referral Relationships | Non-Compete Agreements | ||||||
Years | Annual Amount | Years | Annual Amount | ||||
Ending December 31, | Ending December 31, | ||||||
2021 (excluding the six months ended June 30, 2021) | $ | 1,626 | 2021 (excluding the six months ended June 30, 2021) | $ | 281 | ||
2022 | $ | 3,203 | 2022 | $ | 406 | ||
2023 | $ | 3,096 | 2023 | $ | 336 | ||
2024 | $ | 2,932 | 2024 | $ | 279 | ||
2025 | $ | 2,788 | 2025 | $ | 213 | ||
Thereafter | $ | 11,062 | Thereafter | $ | 158 |
Customer and Referral Relationships | Non-Compete Agreements | ||||||||||
Years | Annual Amount | Years | Annual Amount | ||||||||
Ending December 31, | Ending December 31, | ||||||||||
2022 (excluding the six months ended June 30, 2022) | $ | 2,745 | 2022 (excluding the six months ended June 30, 2022) | $ | 267 | ||||||
2023 | $ | 5,393 | 2023 | $ | 477 | ||||||
2024 | $ | 5,228 | 2024 | $ | 421 | ||||||
2025 | $ | 5,084 | 2025 | $ | 355 | ||||||
2026 | $ | 4,616 | 2026 | $ | 216 | ||||||
Thereafter | $ | 27,981 | Thereafter | $ | 34 |
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
Salaries and related costs | $ | 24,378 | $ | 24,646 | $ | 19,524 | $ | 23,569 | ||||||||
Credit balances due to patients and payors | 5,638 | 5,756 | 7,875 | 6,649 | ||||||||||||
Group health insurance claims | 2,316 | 2,113 | 2,038 | 1,984 | ||||||||||||
Closure costs | 844 | 1,333 | 285 | 498 | ||||||||||||
Federal income taxes payable | 4,547 | 5,715 | ||||||||||||||
MAAPP funds payable | 0 | 14,054 | ||||||||||||||
Deferred employer payroll taxes - CARES ACT | 4,547 | 4,170 | ||||||||||||||
Federal taxes payable | 1,754 | 2,716 | ||||||||||||||
Contingent payments related to acquisition | 1,000 | 1,000 | ||||||||||||||
Settlement of a legal matter | 0 | 2,750 | ||||||||||||||
Other | 2,450 | 1,959 | 8,770 | 6,539 | ||||||||||||
Total | $ | 44,720 | $ | 59,746 | $ | 41,246 | $ | 45,705 |
June 30, 2021 | December 31, 2020 | |||||||
Credit Agreement average effective interest rate of 2.6% for both June 30, 2021 and December 31, 2020, (inclusive of unused fee) | $ | 38,000 | $ | 16,000 | ||||
Various notes payable with $1,017 plus accrued interest due in the next year, interest accrues in the range of 3.25% through 5.50% per annum | 1,838 | 5,495 | ||||||
$ | 39,838 | $ | 21,495 | |||||
Less current portion | (1,017 | ) | (4,899 | ) | ||||
Long term portion | $ | 38,821 | $ | 16,596 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||
Principal Amount | Unamortized discount and debt issuance cost | Net Debt | Principal Amount | Unamortized discount and debt issuance cost | Net Debt | |||||||||||||||||||
Revolving Facilitiy | $ | 0 | $ | 0 | $ | 0 | $ | 114,000 | $ | 0 | $ | 114,000 | ||||||||||||
Term Facility | 150,000 | 2,027 | 147,973 | 0 | 0 | 0 | ||||||||||||||||||
Other Debt | 5,696 | 0 | 5,696 | 4,417 | 0 | 4,417 | ||||||||||||||||||
Total Debt | $ | 155,696 | $ | 2,027 | $ | 153,669 | $ | 118,417 | $ | 0 | $ | 118,417 | ||||||||||||
Less: Current portion of long-term debt | 5,188 | 408 | $ | 4,780 | 830 | 0 | 830 | |||||||||||||||||
Total long-term debt, net of current portion | $ | 150,508 | $ | 1,619 | $ | 148,889 | $ | 117,587 | $ | 0 | $ | 117,587 |
1) | Revolving Facility: $175 million, five-year, revolving credit facility (“Revolving Facility”), which includes a $12 million sublimit for the issuance of standby letters of credit and a $15 million sublimit for swingline loans (each, a “Swingline Loan”). |
2) | Term Facility: $150 million term loan facility (the “Term Facility”). The Term Facility amortizes in quarterly installments of: (a) 0.625% in each of the firsttwo years, (b) 1.250% in the third and fourth year, and (c) 1.875% in the fifth year of the Credit Agreement. The remaining outstanding principal balance of all term loans is due on the maturity date. |
During the twelve months ended June 30, 2022 | $ | 1,017 | ||
During the twelve months ended June 30, 2023 | 821 | |||
During the twelve months ended June 30, 2026 | 38,000 | |||
$ | 39,838 |
Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Unrealized loss on cash flow hedge | (531 | ) | 0 | (531 | ) | 0 | ||||||||||
Tax effect at statutory rate (federal and state) of 25.55% | 136 | 0 | 136 | 0 | ||||||||||||
Other Comprehensive loss | $ | (395 | ) | $ | 0 | $ | (395 | ) | $ | 0 |
June 30, 2022 | June 30, 2021 | |||||||
Interest rate swap | $ | (531 | ) | $ | 0 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||
Operating lease cost | $ | 7,895 | $ | 7,815 | $ | 15,624 | $ | 15,627 | $ | 8,700 | $ | 7,895 | $ | 17,104 | $ | 15,624 | ||||||||||||||||
Short-term lease cost | 361 | 215 | 729 | 509 | 259 | 361 | 580 | 729 | ||||||||||||||||||||||||
Variable lease cost | 1,628 | 1,514 | 3,239 | 3,046 | 1,994 | 1,628 | 3,926 | 3,239 | ||||||||||||||||||||||||
Total lease cost * | $ | 9,884 | $ | 9,544 | $ | 19,592 | $ | 19,182 | $ | 10,953 | $ | 9,884 | $ | 21,610 | $ | 19,592 |
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities (in thousands) | $ | 8,258 | $ | 6,555 | $ | 16,370 | $ | 14,345 | $ | 8,940 | $ | 8,258 | $ | 17,557 | $ | 16,370 | ||||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands) | $ | 12,976 | $ | 7,535 | $ | 20,873 | $ | 19,075 | $ | 15,595 | $ | 12,976 | $ | 21,606 | $ | 20,873 |
Fiscal Year | Amount | Amount | ||||||
2021 (excluding the six months ended June 30, 2021) | $ | 15,765 | ||||||
2022 | 28,048 | |||||||
2022 (excluding the six months ended June 30, 2022) | $ | 17,829 | ||||||
2023 | 22,301 | 31,725 | ||||||
2024 | 15,724 | 25,292 | ||||||
2025 | 9,460 | 18,060 | ||||||
2026 and therafter | 9,374 | |||||||
2026 | 11,613 | |||||||
2027 and therafter | 11,135 | |||||||
Total lease payments | $ | 100,672 | $ | 115,654 | ||||
Less: imputed interest | 5,925 | 5,795 | ||||||
Total operating lease liabilities | $ | 94,747 | $ | 109,859 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | |||||||||||||
Weighted-average remaining lease term - Operating leases | 4.11 Years | 4.21 Years | 4.11 Years | 4.21 Years | ||||||||||||
Weighted-average discount rate - Operating leases | 3.0 | % | 3.2 | % | 3.0 | % | 3.2 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Weighted-average remaining lease term - Operating leases | 4.19 Years | 4.11 Years | 4.19 Years | 4.11 Years | ||||||||||||
Weighted-average discount rate - Operating leases | 2.48 | % | 3.0 | % | 2.48 | % | 3.0 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||
Net operating revenue: | ||||||||||||||||||||||||||||||||
Physical therapy operations | $ | 116,895 | $ | 74,199 | $ | 219,253 | $ | 177,040 | $ | 121,219 | $ | 116,895 | $ | 233,855 | $ | 219,253 | ||||||||||||||||
Industrial injury prevention services | 10,033 | 9,658 | 20,043 | 19,534 | 19,437 | 10,033 | 38,505 | 20,043 | ||||||||||||||||||||||||
Total Company | $ | 126,928 | $ | 83,857 | $ | 239,296 | $ | 196,574 | $ | 140,656 | $ | 126,928 | $ | 272,360 | $ | 239,296 | ||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||||||||
Physical therapy operations (excluding closure costs) | $ | 31,739 | $ | 16,199 | $ | 54,950 | $ | 33,978 | ||||||||||||||||||||||||
Physical therapy operations | $ | 26,698 | $ | 31,761 | $ | 49,135 | $ | 54,935 | ||||||||||||||||||||||||
Industrial injury prevention services | 2,543 | 3,179 | 5,265 | 4,843 | 4,123 | 2,543 | 8,274 | 5,265 | ||||||||||||||||||||||||
$ | 34,282 | $ | 19,378 | $ | 60,215 | $ | 38,821 | |||||||||||||||||||||||||
Physical therapy operations - closure costs | (22 | ) | 94 | 15 | 3,846 | |||||||||||||||||||||||||||
Gross profit | $ | 34,304 | $ | 19,284 | $ | 60,200 | $ | 34,975 | $ | 30,821 | $ | 34,304 | $ | 57,409 | $ | 60,200 | ||||||||||||||||
Total Assets: | ||||||||||||||||||||||||||||||||
Physical therapy operations | $ | 578,985 | $ | 534,238 | $ | 414,172 | $ | 545,449 | ||||||||||||||||||||||||
Industrial injury prevention services | 43,973 | 50,780 | 382,272 | 203,977 | ||||||||||||||||||||||||||||
Total Company | $ | 622,958 | $ | 585,018 | $ | 796,444 | $ | 749,426 |
Acquisition | Date | Acquired | Clinics | |||
March 2022 Acquisition | March 31, 2022 | 70% | 6 | |||
December 2021 Acquisition | December 31, 2021 | 75% | 3 | |||
November 2021 Acquisition | November 30, 2021 | 70% | IIPS* | |||
September 2021 Acquisition | September 30, 2021 | 100% | IIPS* | |||
June 2021 Acquisition | June 30, 2021 | 65% | 8 | |||
March 2021 Acquisition | March 31, 2021 | 70% | 6 |
Three Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 11,195 | $ | 12,436 | ||||
Credit (charges) to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | 210 | (2,549 | ) | |||||
Tax effect at statutory rate (federal and state) of 25.55% | (54 | ) | 651 | |||||
$ | 11,351 | $ | 10,538 | |||||
Earnings per share (basic and diluted) | $ | 0.87 | $ | 0.82 | ||||
Adjustments: | ||||||||
Change in revaluation of put-right liability | 617 | - | ||||||
Revaluation of redeemable non-controlling interest | (210 | ) | 2,549 | |||||
Tax effect at statutory rate (federal and state) | (104 | ) | (651 | ) | ||||
Operating Results (a non-GAAP measure) | $ | 11,654 | $ | 12,436 | ||||
Basic and diluted Operating Results per share (a non-GAAP measure) | $ | 0.90 | $ | 0.96 | ||||
Shares used in computation - basic and diluted | 12,998 | 12,902 |
Three Months Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||
Net income attributable to USPH shareholders | $ | 12,436 | $ | 10,232 | $ | 14,620 | ||||||
Credit (charges) to retained earnings: | ||||||||||||
Revaluation of redeemable non-controlling interest | (2,549 | ) | 3,344 | (5,169 | ) | |||||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively | 651 | (878 | ) | 1,356 | ||||||||
$ | 10,538 | $ | 12,698 | $ | 10,807 | |||||||
Earnings per share (basic and diluted) | $ | 0.82 | $ | 0.99 | $ | 0.85 | ||||||
Adjustments: | ||||||||||||
Closure costs | (22 | ) | 94 | - | ||||||||
Expenses related to CFO transition | - | - | - | |||||||||
Gain on sale of partnership interest and clinics | - | (1,073 | ) | (5,823 | ) | |||||||
Relief Funds | - | (7,958 | ) | - | ||||||||
Allocation to non-controlling interest | - | 1,900 | - | |||||||||
Revaluation of redeemable non-controlling interest | 2,549 | (3,344 | ) | 5,169 | ||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively | (651 | ) | 2,725 | 172 | ||||||||
Operating Results (excluding Relief Funds) | $ | 12,414 | $ | 5,042 | $ | 10,325 | ||||||
Relief Funds | - | 7,958 | - | |||||||||
Allocation to non-controlling interest | - | (1,900 | ) | - | ||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively | - | (1,590 | ) | - | ||||||||
Operating Results (including Relief Funds) | $ | 12,414 | $ | 9,510 | $ | 10,325 | ||||||
Basic and diluted Operating Results (without Relief Funds) per share | $ | 0.96 | $ | 0.39 | $ | 0.81 | ||||||
Basic and diluted Operating Results (including Relief Funds) per share | $ | 0.96 | $ | 0.74 | $ | 0.81 | ||||||
Shares used in computation - basic and diluted | 12,902 | 12,843 | 12,767 |
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 19,994 | $ | 20,609 | ||||
Credit (charges) to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | 57 | (9,819 | ) | |||||
Tax effect at statutory rate (federal and state) of 25.55% | (15 | ) | 2,508 | |||||
$ | 20,036 | $ | 13,298 | |||||
Earnings per share (basic and diluted) | $ | 1.55 | $ | 1.03 | ||||
Adjustments: | ||||||||
Change in revaluation of put-right liability | 14 | - | ||||||
Revaluation of redeemable non-controlling interest | (57 | ) | 9,819 | |||||
Tax effect at statutory rate (federal and state) | 11 | (2,508 | ) | |||||
Operating Results (a non-GAAP measure) | $ | 20,004 | $ | 20,609 | ||||
Basic and diluted Operating Results per share (a non-GAAP measure) | $ | 1.54 | $ | 1.60 | ||||
Shares used in computation - basic and diluted | 12,968 | 12,886 |
Six Months Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||
Net income attributable to USPH shareholders | $ | 20,609 | $ | 11,248 | $ | 23,063 | ||||||
Credit (charges) to retained earnings: | ||||||||||||
Revaluation of redeemable non-controlling interest | (9,819 | ) | 5,473 | (9,830 | ) | |||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively | 2,508 | (1,437 | ) | 2,580 | ||||||||
$ | 13,298 | $ | 15,284 | $ | 15,813 | |||||||
Earnings per share (basic and diluted) | $ | 1.03 | $ | 1.19 | $ | 1.24 | ||||||
Adjustments: | ||||||||||||
Closure costs | 15 | 3,846 | - | |||||||||
Expenses related to CFO transition | - | 133 | - | |||||||||
Gain on sale of partnership interest and clinics | - | (1,073 | ) | (5,823 | ) | |||||||
Relief Funds | - | (7,958 | ) | - | ||||||||
Allocation to non-controlling interest | - | 1,900 | - | |||||||||
Revaluation of redeemable non-controlling interest | 9,819 | (5,473 | ) | 9,830 | ||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively | (2,508 | ) | 2,264 | (1,052 | ) | |||||||
Operating Results (excluding Relief Funds) | $ | 20,624 | $ | 8,923 | $ | 18,768 | ||||||
Relief Funds | - | 7,958 | - | |||||||||
Allocation to non-controlling interest | - | (1,900 | ) | - | ||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively | - | (1,590 | ) | - | ||||||||
Operating Results (including Relief Funds) | $ | 20,624 | $ | 13,391 | $ | 18,768 | ||||||
Basic and diluted Operating Results (without Relief Funds) per share | $ | 1.60 | $ | 0.70 | $ | 1.47 | ||||||
Basic and diluted Operating Results (including Relief Funds) per share | $ | 1.60 | $ | 1.04 | $ | 1.47 | ||||||
Shares used in computation - basic and diluted | 12,886 | 12,820 | 12,738 |
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Net operating revenues: | ||||||||||||||||
Net operating revenue: | ||||||||||||||||
Physical therapy operations | $ | 116,895 | $ | 74,199 | $ | 121,219 | $ | 116,895 | ||||||||
Industrial injury prevention services | 10,033 | 9,658 | 19,437 | 10,033 | ||||||||||||
Total Company | $ | 126,928 | $ | 83,857 | $ | 140,656 | $ | 126,928 | ||||||||
Gross profit: | ||||||||||||||||
Physical therapy operations (excluding closure costs) | $ | 31,739 | $ | 16,199 | ||||||||||||
Physical therapy operations | $ | 26,698 | $ | 31,761 | ||||||||||||
Industrial injury prevention services | 2,543 | 3,179 | 4,123 | 2,543 | ||||||||||||
$ | 34,282 | $ | 19,378 | |||||||||||||
Physical therapy operations - closure costs | (22 | ) | 94 | |||||||||||||
Gross profit | $ | 34,304 | $ | 19,284 | $ | 30,821 | $ | 34,304 | ||||||||
Total Assets: | ||||||||||||||||
Physical therapy operations | $ | 578,888 | $ | 534,238 | $ | 414,172 | $ | 545,449 | ||||||||
Industrial injury prevention services | 44,070 | 50,780 | 382,272 | 203,977 | ||||||||||||
Total Company | $ | 622,958 | $ | 585,018 | $ | 796,444 | $ | 749,426 |
Three Months Ended | ||||||||
June 30, 2021 | June 30, 2020 | |||||||
Revenue related to Mature Clinics | $ | 105,223 | $ | 69,567 | ||||
Revenue related to 2021 Clinic Additions | 2,458 | - | ||||||
Revenue related to 2020 Clinic Additions | 5,531 | 1,952 | ||||||
Revenue from clinics sold or closed in 2021 | 24 | 102 | ||||||
Revenue from clinics sold or closed in 2020 | 2 | 658 | ||||||
Net patient revenue from physical therapy operations. | 113,238 | 72,279 | ||||||
Other revenue | 918 | 328 | ||||||
Physical therapy operations | $ | 114,156 | $ | 72,607 | ||||
Management contract revenue | 2,739 | 1,592 | ||||||
Industrial injury prevention services | 10,033 | 9,658 | ||||||
Total Revenue | $ | 126,928 | $ | 83,857 |
Three Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Revenue related to Mature Clinics | $ | 108,582 | $ | 110,105 | ||||
Revenue related to 2022 Clinic Additions | 3,117 | - | ||||||
Revenue related to 2021 Clinic Additions | 6,191 | 2,414 | ||||||
Revenue from clinics sold or closed in 2022 | 306 | 592 | ||||||
Revenue from clinics sold or closed in 2021 | - | 127 | ||||||
Net patient revenue from physical therapy operations | 118,196 | 113,238 | ||||||
Other revenue | 898 | 918 | ||||||
Revenue from physical therapy operations | 119,094 | 114,156 | ||||||
Revenue - Management contracts | 2,125 | 2,739 | ||||||
Revenue - Industrial injury prevention services | 19,437 | 10,033 | ||||||
Total Revenue | $ | 140,656 | $ | 126,928 |
Three Months Ended | ||||||||
June 30, 2021 | June 30, 2020 | |||||||
Operating costs related to Mature Clinics | $ | 75,988 | $ | 53,767 | ||||
Operating costs related to 2021 Clinic Additions | 2,019 | - | ||||||
Operating costs related to 2020 Clinic Additions | 4,934 | 1,513 | ||||||
Operating costs related to clinics sold or closed in 2021 | (2 | ) | 132 | |||||
Operating costs related to clinics sold or closed in 2020 | 14 | 1,425 | ||||||
Physical therapy operations | $ | 82,953 | $ | 56,837 | ||||
Physical therapy management contracts | 2,202 | 1,163 | ||||||
Industrial injury prevention services | 7,491 | 6,479 | ||||||
$ | 92,646 | $ | 64,479 |
Three Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Operating cost related to Mature Clinics | $ | 84,216 | $ | 80,205 | ||||
Operating cost related to 2022 Clinic Additions | 2,692 | - | ||||||
Operating cost related to 2021 Clinic Additions | 5,996 | 2,063 | ||||||
Operating cost related to clinics sold or closed in 2022 | 324 | 555 | ||||||
Operating cost related to clinics sold or closed in 2021 | - | 107 | ||||||
Operating cost related to physical therapy operations | 92,898 | 82,930 | ||||||
Operating cost related to management contracts | 1,622 | 2,203 | ||||||
Operating cost related to industrial injury prevention services | 15,315 | 7,491 | ||||||
Total operating cost | $ | 109,835 | $ | 92,624 |
Three Months Ended | Three Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | |||||||||||||
Gross profit, excluding closure costs: | ||||||||||||||||
Physical therapy operations | $ | 31,203 | $ | 15,770 | $ | 26,196 | $ | 31,226 | ||||||||
Management contracts | 536 | 429 | 503 | 536 | ||||||||||||
Industrial injury prevention services | 2,543 | 3,179 | 4,122 | 2,542 | ||||||||||||
Gross profit, excluding closure costs | $ | 34,282 | $ | 19,378 | ||||||||||||
Physical therapy operations - closure costs | (22 | ) | 94 | |||||||||||||
Gross profit | $ | 34,304 | $ | 19,284 | $ | 30,821 | $ | 34,304 |
Three Months Ended | ||||||||
June 30, 2021 | June 30, 2020 | |||||||
Income before taxes | $ | 22,039 | $ | 18,645 | ||||
Less: net income attributable to non-controlling interests: | ||||||||
Redeemable non-controlling interests - temporary equity | (3,611 | ) | (2,996 | ) | ||||
Non-controlling interests - permanent equity | (1,425 | ) | (1,535 | ) | ||||
$ | (5,036 | ) | $ | (4,531 | ) | |||
Income before taxes less net income attributable to non-controlling interests | $ | 17,003 | $ | 14,114 | ||||
Provision for income taxes | $ | 4,567 | $ | 3,882 | ||||
Effective tax rate | 26.9 | % | 27.5 | % | ||||
Three Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Income before taxes | $ | 19,495 | $ | 22,039 | ||||
Less: net income attributable to non-controlling interest: | ||||||||
Redeemable non-controlling interest - temporary equity | (2,626 | ) | (3,611 | ) | ||||
Non-controlling interest - permanent equity | (1,435 | ) | (1,425 | ) | ||||
$ | (4,061 | ) | $ | (5,036 | ) | |||
Income before taxes less net income attributable to non-controlling interest | $ | 15,434 | $ | 17,003 | ||||
Provision for income taxes | $ | 4,239 | $ | 4,567 | ||||
Percentage | 27.5 | % | 26.9 | % |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Net operating revenues: | ||||||||||||||||
Net operating revenue: | ||||||||||||||||
Physical therapy operations | $ | 219,253 | $ | 177,040 | $ | 233,855 | $ | 219,253 | ||||||||
Industrial injury prevention services | 20,043 | 19,534 | 38,505 | 20,043 | ||||||||||||
Total Company | $ | 239,296 | $ | 196,574 | $ | 272,360 | $ | 239,296 | ||||||||
Gross profit: | ||||||||||||||||
Physical therapy operations (excluding closure costs) | $ | 54,950 | $ | 33,978 | ||||||||||||
Physical therapy operations | $ | 49,135 | $ | 54,935 | ||||||||||||
Industrial injury prevention services | 5,265 | 4,843 | 8,274 | 5,265 | ||||||||||||
$ | 60,215 | $ | 38,821 | |||||||||||||
Physical therapy operations - closure costs | 15 | 3,846 | ||||||||||||||
Gross profit | $ | 60,200 | $ | 34,975 | $ | 57,409 | $ | 60,200 | ||||||||
Total Assets: | ||||||||||||||||
Physical therapy operations | $ | 578,985 | $ | 534,238 | $ | 414,172 | $ | 545,449 | ||||||||
Industrial injury prevention services | 43,973 | 50,780 | 382,272 | 203,977 | ||||||||||||
Total Company | $ | 622,958 | $ | 585,018 | $ | 796,444 | $ | 749,426 |
For the Six Months Ended | ||||||||
June 30, 2021 | June 30, 2020 | |||||||
Revenue related to Mature Clinics | $ | 199,068 | $ | 165,277 | ||||
Revenue related to 2021 Clinic Additions | 2,549 | - | ||||||
Revenue related to 2020 Clinic Additions | 10,732 | 2,930 | ||||||
Revenue from clinics sold or closed in 2021 | 141 | 333 | ||||||
Revenue from clinics sold or closed in 2020 | 2 | 3,865 | ||||||
Net patient revenue from physical therapy operations. | $ | 212,492 | $ | 172,405 | ||||
Other revenue | 1,464 | 895 | ||||||
Physical therapy operations | $ | 213,956 | $ | 173,300 | ||||
Management contract revenue | 5,297 | 3,740 | ||||||
Industrial injury prevention services | 20,043 | 19,534 | ||||||
Total Revenue | $ | 239,296 | $ | 196,574 |
For the Six Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Revenue related to Mature Clinics | $ | 211,215 | $ | 208,531 | ||||
Revenue related to 2022 Clinic Additions | 3,312 | - | ||||||
Revenue related to 2021 Clinic Additions | 12,346 | 2,465 | ||||||
Revenue from clinics sold or closed in 2022 | 861 | 1,104 | ||||||
Revenue from clinics sold or closed in 2021 | - | 392 | ||||||
Net patient revenue from physical therapy operations | 227,734 | 212,492 | ||||||
Other revenue | 1,770 | 1,464 | ||||||
Revenue from physical therapy operations | 229,504 | 213,956 | ||||||
Revenue - Management contracts | 4,351 | 5,297 | ||||||
Revenue - Industrial injury prevention services | 38,505 | 20,043 | ||||||
Total Revenue | $ | 272,360 | $ | 239,296 |
For the Six Months Ended | ||||||||
June 30, 2021 | June 30, 2020 | |||||||
Operating costs related to Mature Clinics | $ | 147,975 | $ | 132,591 | ||||
Operating costs related to 2021 Clinic Additions | 2,161 | - | ||||||
Operating costs related to 2020 Clinic Additions | 9,569 | 2,272 | ||||||
Operating costs related to clinics sold or closed in 2021 | 154 | 395 | ||||||
Operating costs related to clinics sold or closed in 2020 | (4 | ) | 4,829 | |||||
Physical therapy operations | $ | 159,855 | $ | 140,087 | ||||
Physical therapy management contracts | 4,448 | 2,975 | ||||||
Industrial injury prevention services | 14,778 | 14,691 | ||||||
$ | 179,081 | $ | 157,753 |
Six Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Operating cost related to Mature Clinics | $ | 166,468 | $ | 156,321 | ||||
Operating cost related to 2022 Clinic Additions | 3,083 | - | ||||||
Operating cost related to 2021 Clinic Additions | 11,466 | 2,128 | ||||||
Operating cost related to clinics sold or closed in 2022 | 251 | 979 | ||||||
Operating cost related to clinics sold or closed in 2021 | - | 442 | ||||||
Operating cost related to physical therapy operations | 181,268 | 159,870 | ||||||
Operating cost related to management contracts | 3,453 | 4,448 | ||||||
Operating cost related to industrial injury prevention services | 30,230 | 14,778 | ||||||
Total operating cost | $ | 214,951 | $ | 179,096 |
For the Six Months Ended | Six Months Ended | |||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2022 | June 30, 2021 | |||||||||||||
Gross profit, excluding closure costs: | ||||||||||||||||
Physical therapy operations | $ | 54,101 | $ | 33,213 | $ | 48,236 | $ | 54,086 | ||||||||
Management contracts | 849 | 765 | 898 | 849 | ||||||||||||
Industrial injury prevention services | 5,265 | 4,843 | 8,275 | 5,265 | ||||||||||||
Gross profit, excluding closure costs | $ | 60,215 | $ | 38,821 | ||||||||||||
Physical therapy operations - closure costs | 15 | 3,846 | ||||||||||||||
Gross profit | $ | 60,200 | $ | 34,975 | $ | 57,409 | $ | 60,200 |
Six Months Ended | ||||||||
June 30, 2021 | June 30, 2020 | |||||||
Income before taxes | $ | 36,869 | $ | 22,275 | ||||
Less: net income attributable to non-controlling interests: | ||||||||
Redeemable non-controlling interests - temporary equity | (6,064 | ) | (4,792 | ) | ||||
Non-controlling interests - permanent equity | (2,685 | ) | (2,061 | ) | ||||
$ | (8,749 | ) | $ | (6,853 | ) | |||
Income before taxes less net income attributable to non-controlling interests | $ | 28,120 | $ | 15,422 | ||||
Provision for income taxes | $ | 7,511 | $ | 4,174 | ||||
Effective tax rate | 26.7 | % | 27.1 | % |
Six Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Income before taxes | $ | 34,975 | $ | 36,869 | ||||
Less: net income attributable to non-controlling interest: | ||||||||
Redeemable non-controlling interest - temporary equity | (5,183 | ) | (6,064 | ) | ||||
Non-controlling interest - permanent equity | (2,061 | ) | (2,685 | ) | ||||
$ | (7,244 | ) | $ | (8,749 | ) | |||
Income before taxes less net income attributable to non-controlling interest | $ | 27,731 | $ | 28,120 | ||||
Provision for income taxes | $ | 7,737 | $ | 7,511 | ||||
Percentage | 27.9 | % | 26.7 | % |
1) | Revolving Facility: $175 million, five-year, revolving credit facility (“Revolving Facility”), which includes a $12 million sublimit for the issuance of standby letters of credit and a $15 million sublimit for swingline loans (each, a “Swingline Loan”). |
2) | Term Facility: $150 million term loan facility (the “Term Facility”). The Term Facility amortizes in quarterly installments of: (a) 0.625% in each of the first two years, (b) 1.250% in the third and fourth year, and (c) 1.875% in the fifth year of the Credit Agreement. The remaining outstanding principal balance of all term loans is due on the maturity date. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4. | CONTROLS AND PROCEDURES. |
(a) | Evaluation of Disclosure Controls and Procedures |
(b) | Changes in Internal Control over Financial Reporting |
ITEM 1. | LEGAL PROCEEDINGS. |
ITEM 1A. | RISK FACTORS. |
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. | |
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 Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith |
U.S. PHYSICAL THERAPY, INC. | ||
Date: August | By: | /s/ CAREY HENDRICKSON |
Carey Hendrickson | ||
Chief Financial Officer | ||
( | ||