Exhibit 99.1
U.S. Physical Therapy Reports First Quarter 2005 Results;
Earnings Increase 33% as Compared to First Quarter 2004
HOUSTON--(BUSINESS WIRE)--April 28, 2005--U.S. Physical Therapy,
Inc. (Nasdaq:USPH), a national operator of physical and occupational
therapy outpatient clinics, today reported results for the first
quarter ended March 31, 2005.
U.S. Physical Therapy's reported net earnings for the first
quarter of 2005 were $2.0 million or $0.17 per diluted share.
First Quarter 2005 compared to First Quarter 2004
-- Net revenue rose 9.1% to $30.9 million, from $28.3 million,
due to an 8.1% increase in patient visits from 290,000 to
314,000, combined with a 1.3% increase from $95.49 to $96.76
in net patient revenue per visit.
-- Clinic operating costs decreased to 72.8% of net revenue
compared to 74.3% with a resulting increase in gross margin
from 25.7% to 27.2%.
-- Corporate office cost as a percentage of net revenues rose
from 12.8% in the first quarter 2004 to 13.1%. The largest
component in the increase was for higher accounting fees and
internal costs attributable to Sarbanes Oxley compliance.
-- Net income for the quarter increased 32.7% from $1.5 million
to $2.0 million. Reported earnings were $0.17 per diluted
share for the first quarter 2005 as compared to $0.13 a year
ago.
-- Average visits per day per clinic were 18.4 as compared to
18.7 in the first quarter of last year. These averages include
all of the Company's clinics including those opened during the
periods.
-- Same store visits for clinics open for one year or more
increased 1.2%. The net rate per visit for those clinics also
increased 1.4% resulting in a same store revenue increase of
2.6%.
Chris Reading, Chief Executive Officer, said, "We are pleased with
the Company's first quarter results which generated revenue, margin
and net income improvement. This confirms the effectiveness of the
operating plan we initiated in the fall of 2004. Six clinics were
opened in the first quarter and another three are to be opened this
month. We have been very pleased with the quality of our new partners
and the potential of these facilities. Our management team's primary
focus is to enhance the beneficial aspects of our partnership platform
to produce long term earnings growth."
Larry McAfee, Chief Financial Officer, noted, "During the first
quarter of 2005 we repurchased approximately 240,000 shares of our
common stock at an average cost of $14.90 per share. Since September
2004, the Company has repurchased over 600,000 shares or approximately
5% of its previously outstanding shares. As of March 31, 2005, we had
an additional 200,000 shares available for purchase under the
Company's authorized share repurchase program. Even after using $3.6
million during the first quarter for stock purchases, cash and cash
equivalents totaled $20.9 million, or approximately $1.76 per common
share outstanding, as of March 31, 2005."
U.S. Physical Therapy's management will host a conference call at
10:30 am Eastern Time, 9:30 am Central Time on April 28, 2005 to
discuss the Company's first quarter 2005 results. Interested parties
may participate in the call by dialing 800-938-0653 or 973-321-1100
approximately 10 minutes before the call is scheduled to begin. To
listen to the live call via web-cast, go to the Company's website at
www.usph.com at least 15 minutes early to register, download and
install any necessary audio software. The conference call will be
archived and can be accessed for approximately 90 days at this
website.
Forward-Looking Statements
This press release contains statements that are considered to be
forward-looking within the meaning under Section 21E of the Securities
Exchange Act of 1934. These statements contain forward-looking
information relating to the financial condition, results of
operations, plans, objectives, future performance and business of our
Company. These statements (often using words such as "believes",
"expects", "intends", "plans", "appear", "should" and similar words)
involve risks and uncertainties that could cause actual results to
differ materially from those we project. Included among such
statements are those relating to opening new clinics, availability of
personnel and the reimbursement environment. The forward-looking
statements are based on our current views and assumptions and actual
results could differ materially from those anticipated in such
forward-looking statements as a result of certain risks,
uncertainties, and factors, which include, but are not limited to:
-- revenue and earnings expectations;
-- general economic, business, and regulatory conditions
including federal and state regulations;
-- availability of qualified physical and occupational
therapists;
-- the failure of our clinics to maintain their Medicare
certification status or changes in Medicare guidelines;
-- competitive and/or economic conditions in our markets which
may require us to close certain clinics and thereby incur
closure costs and losses including the possible write-off or
write-down of goodwill;
-- changes in reimbursement rates or methods from third party
payors including government agencies and deductibles and
co-pays owed by patients;
-- maintaining adequate internal controls;
-- availability, terms, and use of capital;
-- future acquisitions; and
-- weather.
Many factors are beyond our control. Given these uncertainties,
you should not place undue reliance on our forward-looking statements.
Please see periodic reports filed with the Securities and Exchange
Commission (the "SEC") for more information on these factors. Our
forward-looking statements represent our estimates and assumptions
only as of the date of this report. Except as required by law, we are
under no obligation to update any forward- looking statement,
regardless of the reason the statement is no longer accurate.
About U.S. Physical Therapy, Inc.
Founded in 1990, U.S. Physical Therapy, Inc. operates 269
outpatient physical and/or occupational therapy clinics in 36 states.
The Company's clinics provide preventative and post-operative care for
a variety of orthopedic-related disorders and sports-related injuries,
treatment for neurologically-related injuries and rehabilitation of
injured workers. In addition to owning and operating clinics, the
Company manages physical therapy facilities for third parties,
including hospitals and physician groups. U.S. Physical Therapy, Inc.
has been named for three consecutive years in Forbes Magazine's Best
200 Small Companies List.
More information about U.S. Physical Therapy, Inc. is available at
www.usph.com. The information included on that website is not
incorporated into this press release.
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
--------------------
2005 2004
---------- ---------
(unaudited)
Net patient revenues $30,352 $27,715
Management contract revenues 503 566
Other revenues 23 17
---------- ---------
Net revenues 30,878 28,298
Clinic operating costs:
Salaries and related costs 15,800 14,619
Rent, clinic supplies and other 6,336 6,002
Provision for doubtful accounts 312 397
---------- ---------
22,448 21,018
Loss on sale or disposal of fixed assets 42 --
Corporate office costs 4,041 3,623
---------- ---------
Operating income 4,347 3,657
Other (income) expense
Interest (income) expense, net (93) 17
Minority interests in subsidiary limited
partnerships 1,187 1,182
---------- ---------
1,094 1,199
Income before income taxes 3,253 2,458
Provision for income taxes 1,224 926
---------- ---------
Net income $2,029 $1,532
========== =========
Basic earnings per common share (Note 1) $0.17 $0.13
========== =========
Diluted earnings per common share (Note 1) $0.17 $0.13
========== =========
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,
-------------------
2005 2004
--------- ---------
(unaudited)
Numerator:
Net income $2,029 $1,532
--------- ---------
Numerator for basic earnings per share 2,029 1,532
Effect of dilutive securities:
Interest on convertible subordinated
notes payable -- 23
--------- ---------
Numerator for diluted earnings per share ---
income available to common stockholders
after assumed conversions $2,029 $1,555
========= =========
Denominator:
Denominator for basic earnings per share ---
weighted-average shares 11,963 11,472
Effect of dilutive securities:
Stock options 145 368
Convertible subordinated notes payable -- 524
--------- ---------
Dilutive potential common shares 145 892
--------- ---------
Denominator for diluted earnings per share ---
adjusted weighted-average shares and
assumed conversions 12,108 12,364
========= =========
Basic earnings per common share $0.17 $0.13
========= =========
Diluted earnings per common share $0.17 $0.13
========= =========
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, December 31,
2005 2004
------------ ------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $20,863 $20,553
Patient accounts receivable, less
allowance for doubtful accounts of
$2,111 and $2,447, respectively 17,964 17,669
Accounts receivable -- other 710 549
Other current assets 1,477 1,835
------------ ------------
Total current assets 41,014 40,606
Fixed assets:
Furniture and equipment 22,668 22,781
Leasehold improvements 13,966 13,912
------------ ------------
36,634 36,693
Less accumulated depreciation and
amortization 23,473 23,043
------------ ------------
13,161 13,650
Goodwill 6,640 6,127
Other assets 1,407 1,225
------------ ------------
$62,222 $61,608
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable -- trade $1,155 $1,181
Accrued expenses 6,523 4,367
Notes payable 70 70
------------ ------------
Total current liabilities 7,748 5,618
Deferred rent 1,421 1,518
Other long-term liabilities 1,024 982
------------ ------------
Total liabilities 10,193 8,118
Minority interests in subsidiary limited
partnerships 3,282 3,311
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, 13,445,242 and
13,436,557 shares issued at March 31,
2005 and December 31, 2004, respectively 134 134
Additional paid-in capital 32,646 32,534
Retained earnings 37,646 35,617
Treasury stock at cost, 1,560,385 and
1,320,503 shares held at March 31,2005 and
December 31, 2004, respectively (21,679) (18,106)
------------ ------------
Total shareholders' equity 48,747 50,179
------------ ------------
$62,222 $61,608
============ ============
U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
March 31,
-------------------
2005 2004
--------- ---------
(unaudited)
Operating activities
Net income $2,029 $1,532
Depreciation and amortization 1,063 905
Minority interest in earnings 1,187 1,182
Provision for doubtful accounts 312 397
Loss on sale or abandonment of fixed assets 42 --
Tax benefit from exercise of options 16 23
Deferred rent (97) --
Deferred income taxes (27) 226
Other - 3
Changes in working capital 1,607 (1,064)
--------- ---------
Net cash provided by operating activities 6,132 3,204
Investing activities
Purchase of fixed assets (629) (591)
Purchase of goodwill, including minority
interest (513) --
Other 13 3
--------- ---------
Net cash used in investing activities (1,129) (588)
Financing activities
Repurchase of common stock (3,573) --
Proceeds from exercise of stock options 96 3
Distributions to minority investors (1,216) (1,002)
--------- ---------
Net cash used in financing activities (4,693) (999)
Change in cash and cash equivalents $310 $1,617
========= =========
Note 2: Certain prior period amounts have been reclassified for
comparison purposes.
CONTACT: U.S. Physical Therapy, Inc., Houston
Larry McAfee, 713-297-7000
or
Chris Reading, 713-297-7000
or
Investors Relations:
DRG&E
Jack Lascar, 713-529-6600