Exhibit 99.1
U.S. Physical Therapy Announces First Quarter 2004 Results
HOUSTON--(BUSINESS WIRE)--April 29, 2004--U.S. Physical Therapy,
Inc. (NasdaqNM:USPH), a national operator of physical and occupational
therapy outpatient clinics, today reported results for the first
quarter ended March 31, 2004.
First Quarter 2004 compared to First Quarter 2003
-- Net revenues rose 13.2 percent to $28.3 million, from $25.0
million, due to a 9 percent increase in patient visits to
290,000 from 266,000 combined with a 3.6 percent increase from
$92.21 to $95.49 in net patient revenue per visit.
-- Earnings were $0.13 per diluted share for the first quarter
2004 as compared to $0.15 for the same prior year period. Net
income for the first quarter 2004 was $1.5 million versus $1.8
million for the same period last year.
-- Clinic operating costs increased to 74.2 percent of net
revenues compared to 71 percent as average visits per day per
clinic were 18.7 this quarter as compared to 20.5 in the first
quarter last year.
-- Corporate office cost as a percentage of net revenue was 12.8
percent for the first quarter 2004 compared to 12.7 percent
for the same prior year period.
-- Same store visits for all clinics open for one year or more
were up approximately 1 percent. The net rate per visit for
those clinics increased approximately 3 percent such that same
store revenues increased 4 percent.
Roy Spradlin, U.S. Physical Therapy's Chief Executive Officer,
stated, "Expected standards have been reinforced with our clinics and
a facilities ranking system has been put in place utilizing key
metrics. Average daily visits per clinic, which had declined over
several quarters, appears to have bottomed out and was flat in the
first quarter as compared to the fourth quarter. Patient cancellation
and no show rates have been reduced. We have seen a positive response
to several new marketing programs designed to increase referrals and
patient visits. This year, from January to March, we experienced a 17%
increase in average daily visits as compared to an 8% increase in the
comparable three month period in 2003. We must maintain this
momentum."
Mr. Spradlin went on to say that "Corporate cost as a percentage
of revenue declined in the first quarter to 12.8% of revenue from
13.6% in the fourth quarter. There is still work to be done on getting
clinic operating costs down, which will be a significant focus of our
management team. A staff-to-volume plan is being implemented. Also we
expect 8 to 12 new clinic openings in the second quarter and continue
to project 45 to 50 new facilities for the year."
Larry McAfee, Chief Financial Officer, noted "Cash and investments
grew in the first quarter by 10 percent from year end 2003 and as of
March 31, 2004 stood at $18.4 million or approximately $1.50 per
diluted share. Our current cash balance plus cash flow from operations
should be more than sufficient to fund all new clinic development this
year."
U.S. Physical Therapy's management will host a conference call at
10:30 am Eastern Time, 9:30 am Central Time on Thursday, April 29th to
discuss the Company's first quarter 2004 results. Interested parties
may participate in the call by dialing 888-694-4676 or 973-935-8511
approximately 10 minutes before the call is scheduled to begin. To
listen to the live call via web-cast, go to the Company's website at
www.usph.com at least 15 minutes early to register, download and
install any necessary audio software. The conference call will also be
archived and can be accessed for approximately 90 days after the
conference call at this website.
Forward-Looking Statements
This press release contains forward-looking statements (often
using words such as "believes," "expects," "intends," "plans,"
"appear," "should" and similar words), which involve numerous risks
and uncertainties. Included among such statements are those relating
to opening of new clinics, availability of personnel and reimbursement
environment. The forward-looking statements are based on the Company's
current views and assumptions and the Company's actual results could
differ materially from those anticipated in such forward-looking
statements as a result of certain risks, uncertainties, and factors,
which include, but are not limited to:
-- revenue and earnings expectations;
-- general economic, business, and regulatory conditions;
-- competition;
-- federal and state regulations;
-- acquisitions;
-- reimbursement rates from third party payors and deductibles
and co-pays by patients;
-- availability, terms, and use of capital;
-- availability of qualified physical and occupational
therapists; and
-- weather.
Given these uncertainties, you should not place undue reliance on
our forward-looking statements. Please see our other periodic reports
filed with the Securities and Exchange Commission for more information
on these factors. Management undertakes no obligation to update any
forward-looking statement, whether as the result of actual results,
changes in assumptions, new information, future events, or otherwise.
About U.S. Physical Therapy, Inc.
Founded in 1990, U.S. Physical Therapy, Inc. operates 244
outpatient physical and occupational therapy clinics in 35 states and
manages five physical therapy facilities for third parties. The
Company's clinics provide post-operative care for a variety of
orthopedic-related disorders and sports-related injuries, treatment
for neurologically-related injuries, rehabilitation of injured workers
and preventative care. Named for three consecutive years in Forbes
Magazine's Best 200 Small Companies List, U.S. Physical Therapy is
included on the Russell 2000 and Russell 3000 Indexes.
More information about U.S. Physical Therapy, Inc. is available at
www.usph.com. The information included on that website is not
incorporated into this press release.
(See Attached Tables)
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
------------------------------
2004 2003
-------------- ---------------
(unaudited)
Net patient revenues $27,715 $24,483
Management contract revenues 566 477
Other revenues 36 46
-------------- ---------------
Net revenues 28,317 25,006
Clinic operating costs:
Salaries and related costs 14,619 12,274
Rent, clinic supplies and other 6,002 5,141
Provision for doubtful accounts 397 338
-------------- ---------------
21,018 17,753
Corporate office costs 3,623 3,178
-------------- ---------------
Operating income 3,676 4,075
Interest expense 36 46
Minority interests in subsidiary limited
partnerships 1,182 1,145
-------------- ---------------
Income before income taxes 2,458 2,884
Provision for income taxes 926 1,097
-------------- ---------------
Net income $1,532 $1,787
============== ===============
Basic earnings per common share
(Note 1) $0.13 $0.16
============== ===============
Diluted earnings per common share
(Note 1) $0.13 $0.15
============== ===============
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED EARNINGS PER SHARE
(In thousands, except per share data)
Note 1: The following table sets forth the computation of basic and
diluted earnings per share:
Three Months Ended
March 31,
------------------------------
2004 2003
-------------- ---------------
(unaudited)
Numerator:
Net income $1,532 $1,787
-------------- ---------------
Numerator for basic earnings per share 1,532 1,787
Effect of dilutive securities:
Interest on convertible subordinated
notes payable 23 31
-------------- ---------------
Numerator for diluted earnings per
share --- income available to common
stockholders after assumed
conversions $1,555 $1,818
============== ===============
Denominator:
Denominator for basic earnings per
share --- weighted-average shares 11,472 10,907
Effect of dilutive securities:
Stock options 368 824
Convertible subordinated notes payable 524 700
-------------- ---------------
Dilutive potential common shares 892 1,524
-------------- ---------------
Denominator for diluted earnings per
share --- adjusted weighted-average
shares and assumed conversions 12,364 12,431
============== ===============
Basic earnings per common share $0.13 $0.16
============== ===============
Diluted earnings per common share $0.13 $0.15
============== ===============
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, December 31,
2004 2003
-------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $18,439 $16,822
Patient accounts receivable, less
allowance for doubtful accounts of
$3,339 and $3,456, respectively 15,790 14,135
Accounts receivable -- other 356 266
Other current assets 1,546 1,802
-------------- ---------------
Total current assets 36,131 33,025
Fixed assets:
Furniture and equipment 20,990 20,598
Leasehold improvements 10,900 10,760
-------------- ---------------
31,890 31,358
Less accumulated depreciation and
amortization 20,402 19,550
-------------- ---------------
11,488 11,808
Goodwill, net of amortization of $335 5,685 5,685
Other assets, net of amortization of
$432 2,011 1,955
-------------- ---------------
$55,315 $52,473
============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable -- trade $631 $498
Accrued expenses 3,429 2,549
Notes payable 37 39
Convertible subordinated notes payable 1,666 2,333
-------------- ---------------
Total current liabilities 5,763 5,419
Notes payable -- long-term portion 83 83
Other long-term liabilities 439 346
-------------- ---------------
Total liabilities 6,285 5,848
Minority interests in subsidiary limited
partnerships 3,458 3,278
Commitments and contingencies
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,
12,443,514 and 12,242,577 shares
issued at March 31, 2004 and
December 31, 2003, respectively 124 122
Additional paid-in capital 27,499 26,808
Retained earnings 30,471 28,939
Treasury stock at cost, 947,100
shares held at March 31, 2004 and
December 31, 2003 (12,522) (12,522)
-------------- ---------------
Total shareholders' equity 45,572 43,347
-------------- ---------------
$55,315 $52,473
============== ===============
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31,
------------------------------
2004 2003
-------------- ---------------
Operating activities
Net income $1,532 $1,787
Depreciation and amortization 905 841
Minority interest in earnings 1,182 1,145
Provision for doubtful accounts 397 338
Tax benefit from exercise of options 23 171
Deferred income taxes 226 --
Other 3 (34)
Changes in working capital (1,064) 288
-------------- ---------------
Net cash provided by operating
activities 3,204 4,536
Investing activities
Purchase of fixed assets (591) (1,470)
Other 3 129
-------------- ---------------
Net cash used in investing
activities (588) (1,341)
Financing activities
Payment of notes payable -- (1)
Repurchase of common stock -- (20)
Proceeds from exercise of stock
options 3 202
Distributions to minority investors (1,002) (852)
-------------- ---------------
Net cash used in financing
activities (999) (671)
Change in cash and cash
equivalents $1,617 $2,524
============== ===============
Note 2: Certain prior period amounts have been reclassified for
comparison purposes.
CONTACT: U.S. Physical Therapy, Inc., Houston
Roy W. Spradlin or Larry McAfee, 713-297-7000
or
Investors Relations:
DRG&E
Jack Lascar, 713-529-6600