Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the U.S. Physical Therapy Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

I'd like to turn the call over to Chris Reading, President and CEO. sir. ahead, go Please

Christopher Reading

Eric Good General Quarter welcome, me XXXX Carey Vice Executive Finance Financial line sir. Co-COO; of Reeve, Physical Binstein, President Jake Rick on to Martinez, Therapy's include our Officer; Chief our Second Earnings President Hendrickson, Accounting. and morning, you, Graham everyone, our and and Vice U.S. the Williams Counsel; Thank and Call. Senior With our

statement. to a provide the color cover a little disclosure need I Before quarter, brief on we

So take Jake, could if please. you that,

Jake Martinez

Chris, contains and statements the information. more involve uncertainties. and see assumptions. may which These views Please company's on anticipated. results The the current Securities this Exchange based vary filings forward-looking Commission presentation those the certain materially company's actual for forward-looking risks statements company's from and are with

Christopher Reading

Jake. Thanks,

teams, to marketing all activities door, of life-changing well as and that allowing effect I'm families to by So it we development we'll then keep and the financials detail. quickly to level, to every team, all leadership drive into digital our kind in hard to can whom are our to them through uplift marketing my parts partners, turn care, high a sales work directors of go day start going and more this thanking want to morning, our at our sports and support return operations working over patients support those Carey to as commentary I communities.

proud X possible and provide ever provide patient as demand been our X front a -- the individual our result be XX.X. record visits you point XXX than this care months, normally not that Quarter outcomes, continue the March per X for more seasonally you care, to to to our XXXX at slowest across of our despite challenges company. first XX.X line point for that month in at greater past is and at In would This for the continue quarters therapists delivered were quarter a the best of that patient highest market single has not visits first momentum. ever these partnerships. day. point in year, history and Many we the able gave continue connection per if I'm our to before caregivers. of that, say pleased X us dedication quarter than per the of labor excellent

overall volume XX.X% per In some May we've record months up even and in day novo quarter clinic fact, additions, at for more and both it visits average. in per the on We and de at acquired volume turned QX quarter second our added XX.X% good the involvement X both produced April and through for new overall very clinics during year year you end XX in know, we average staff novo overall get fully as earlier, penetration. a until XX We've speed with mostly de of ago. clinics which, this July and total since community

they highly grow new of years much serving families. and for These course, more patients productive many continue years the facilities, to and to come, in will become

grew volume strong in X.X% and XXXX. same-store comparative This facility against quarter, our mature the quarter

our has up equation, the the X.X% country side positive in significant light months. general an X-plus inflation cost the especially the on past every for of overall. scarcity played same-store Also corner Our very these not labor is us. for of general and year improvement, issue is very of

year. at per salary in in third the cost that, a costs of accelerate spite total row as the now declined we've well related visit and X In quarter quickly peaking as of visit to XXXX inflation seen per quarter began as last

to across our costs, make. say focused are of that real new long possible streamline not which so solutions multifaceted to efforts which making very where is some to yet, progress is and team with more we operations have Our we're out and address progress to main done innovate partnerships,

In of have on year extremely the the assistance this we and at X% is licensed the to phase this increases than fill we a to out, have which sequester hired continue that further quarter. us the on have increased seen X% relief area of same where and and to we past small where demand and been. a tighter with time, labor impacted very reduction we've rate historically progress more make opportunity where percentage improve. Medicare This volume commercial over to contracts, in is year work demand that we dynamics over rate we What payer high multifaceted basis, rig approach was this normal area number strong continue has PT absorbing the

the with a demand by negative greater impact in further combination on touched visits Medicare assistant percentage resulted creates with reduction of in a a net That PTA high PT a has reimbursement XX% rate. being reduction our

we provide but everything across scheduling issue sure any So that be to to front staff we're to middle retrain better a directed patient ensure clinical resources in our push of and all sure get we exceptional clinically have our to providing doing to optimize large-scale paid scheduling care. to the and make elevate desk our platform care, that is to leadership this that that fully of possible optimal for not only

office rate. some for may XXXX which early in been We to and with dealing through diluted resulted the net a late services with bit addressable our front coupled inefficiencies which believe XXXX a has flow high this turnover have heightened a awareness, demand

significant our Drew completed proceeds remaining end Given ensure the are have of us necessary very further company. adjustments. pay we interest cost with proven on the focused achieving. to highest debt the yet, further off very the to where already be not May, directly to secondary to grow We're aligns a successful Other results effort positives the at quarter. nature at make for offering we the hard but the which incredible of working that a level that becomes company are we we rate our there invest has this low care paid to provide, all-hands-on-deck our allowing partner-centric very that an

and to us and as while believe add we therapy areas and adjacent see new We our can explore in are new other service offerings will also doing you further currently partners injury experience we we as well busy business strengthen physical business just in continue states, our that, prevention services.

year the much front, to the On be we IP unfolding this seems expected. way

companies a move as increases for recession a discussed relationships We in levels major have pull of them. seen we pending in and seen back fearful tenured of from across our defensive quarter, longest of spend some last some engagement we've prior and spend

we of and have new business efficiency new exciting able the I'm back majority now X our ago. looking our we're for Counteracting opportunities. time with than programs greater cross-sell of together partnerships with that, happy teams that replacing pull done expand great less a IP Both say months that we're to job are to staff were where working much vast to hard

well with We our dry over and explore opportunities and acquisition-based reinvigorated powder the that continue do to coming will runway as quarters that provide as expect to years. us balance sheet

close those feel Finally, made I has of friends as as ride I exhilarating come. many with working so to been here with be partners a of across around fun talented want I of We've well. lives been extremely alongside country. as say better and team as way work the huge to office and the group It's the our and patients, do members as lives millions thanking more difference glad of many end I and home company. anniversary now things many life our XXth and partnerships the good of well my me to our that with proud amazing an that been to committed I'm who've support my comments on in colleagues my in I made staff think much started dear a many result the the by we and

And we're done. not

to always has chapters to way tackle improving As treating the very have we for more been treatment it's consistently to we it inventions, first entirety positioned day should and early riskier provide we and be XX the the and you've not the my things continue sense heard, costly the better That and career, much been therapists deliver address. the that clinician. have versus fight challenges energy including the for drive of the for we And -- rules been for has to way work as [indiscernible] of that reimbursement make often that increase the life to and regulations choice every so access options. on

important should goals. to fight those therapy be alongside work we are towards other need treatment concludes dialed we us prepared rightful We of option physical my as companies place these that believe work continuum. the within APTQI. health get prevention you in into for are I you for care of continue listening for the constant we fight please us who care enduring equivalent musculoskeletal with from to and And comments. will That first doing disease, primary

would in if you So cover financials Carey? Carey, more the detail.

Carey Hendrickson

Great. everyone. had in a had percentage you, therapy year-over-year growth continuing EBITDA. revenue, income good operating and quarter trend Chris, volumes. our company's respects. our physical an cost operating and our high Thank excellent salaries margin our and visit We second growth in per growth all-time total in had on many basis. had and physical operating We We therapy We total adjusted downward in strong morning, patient in

equity offering that significant capital we future capital successful for our And Chris initiatives. equity The with million. immediately proceeds deployment The million income rate based point as for leverage providing used million at the which expense X.X%, prior high-yield revolving $XXX in $XXX offering makes a in at the lowered proceeds provided approximately accretive and million us invested leaving the time in of of the to in shares. We interest a of savings our noted, term growth loan addition, completed million to account issuance resulting a leverage proceeds on further issuance this on $XX offering the rate those structure, our strengthened decrease about at grid. savings the debt variable the with credit at of a outstanding X.X on was facility interest point They down our XX net into pay X.X net We've the our basis ratio, the and on shares. even that acquisitions. $XXX million cash also approximately

million EBITDA return the when over into second XXXX. was substantially increase quarter highest of the million deploy proceeds acquisitions. of quarterly reported net And an $XX.X will the those increase we history our of and of on which EBITDA second adjusted $XX.X $X.X the we course, in We in quarter amount the reported second for million them

Our operating results, the higher expense, quarter of which includes the in was share second interest $X.XX per impact XXXX. of

$XX.X in million quarter second quarter the in from gross of to total the quarter Our in of quarter million year X.X% the total of and company growing $XXX.X company $XX.X in second last the second million increased million from 'XX 'XX. to revenues our second increased second last the in $X.X $XXX.X profit of year million quarter

second our in higher is than per XX.X%, any we in month Chris in remarks, April our visits XX.X% XX.X%, the the the clinic taken that history, which in per for to highest our highest As the and both related noted normal summer day clinic quarter decline vacations average per history. volume June for is a were of was had and XX.X%, day in volumes any last was quarter his company's which May year. average the seasonal June at visits and per in in months

the year. $XXX.XX approximately was quarter our in the net last Medicare X.X% second down compared our net and compensation 'XX, which with while was rate net visits Our decrease of of was both rate second quarter for commercial X.X%. workers' associated of increased visits net rate a The X%, to of the $XXX.XX rate in

primarily at we was second the of the X% last with the in Medicare As reduction year a as rate CMS the the of decrease beginning this mentioned, X% included Chris year. the due on was effect noted effective sequestration from relief of rate release rates. that and Medicare Coupled quarter to

serve earnings at Advantage our about talked patients. reimburses a than we've couple on that's the us subset costs contracts Medicare last our what rate our it we've either terminated of calls, As to less that of renegotiated or

in are now effect, second also in this of associated most work June we in rates XXXX. begin so the terminations the impact of to renegotiated half were July showing The effective of and expect in up the

or and million The prior and of which second was at the revenue an $XX versus of quarter increase were increase we're renegotiations our also to our to focus continue the in necessary Physical X.X% the visits noted, and clinics rates. of commercial same-store adjustments year. up revenues XXXX was for patient other We X.X% XXXX. Therapy adjust second Chris as on contracts quarter the million net X.X% making $XXX.X of

Our in physical second year. quarter basis, therapy a $XX.XX were And quarter, visit third our a prior per last an of costs after over our total therapy per $XX.XX see X.X% third the consecutive of quarter operating of to the in operating second quarter the of costs On were physical increase visit pleased of were operating year. per compared visit cost XX% million, peaking the quarter was year. the the $XXX.X to the in decrease which prior decreased we second for

Our costs declined visit total in 'XX declined $XX.XX first in second further and of then $XX.X the of the fourth quarter and quarter. of operating in to the per $XX.XX decreased quarter the quarter were to third to They XXXX $XX.XX in XXXX. again

down and also From in year, decreased second visit Our versus X.X% cost in in X visit XXXX. quarter, salaries quarter down and to the quarters. consecutive to fourth of then visit to quarter year in quarter of the first second this of $XX.XX the prior per for third down $XX.XX the declined $XX.XX per the the and 'XX, quarter related they've $XX.XX per in

Physical the XX.X% first third of of quarter for 'XX improved consecutive to of quarter, second this ended third margin in Our the quarter the increasing quarter in quarter in also fourth year XX.X% XX% XXXX. from the XX% and in the Therapy

metrics. progression with of seen all those the pleased that Really in we've

$X revenues $XX.X our operating million 'XX. second the XX.X% million, quarter quarter, IIP second is Our And second and of IIP quarter income the were the year in prior and were our expenses at with of was IIT the with down IIP business 'XX. margin which from even million in slightly $XX.X of

over of the the second was was Our in million year. million interest the year, an $X.X prior this of expense second quarter of quarter which increase $X.X

since Of higher in in interest versus during last a course, is year we that of quarter year last to quarter year. also the our the interest debt-related or second higher expense acquisitions this the increase second and closed of rate due

position. balance Our sheet an remains excellent in

SOFR We with that have term of our loan X.X%. term including a place on rate $XXX the term favorable net was X.X% the earlier, the market, loan And fixes X-year margin in down based million that rate rate on today's the in very second leverage points $XXX quarter, to of moved offering. our applicable below and agreement rate. as a on Fed a XX current ratio, the million in rate all-in X-month debt at $XXX funds swap secondary it's million noted after I that And basis that X.XX%

in quarter to of $XXX,XXX the saved expense alone, In of savings first the XXXX to second swap the agreement million months. over related XX cumulative us swap $X.X date with interest the

of of revolving million some addition $XX offering drawn the loan, also paid facility net that the In on the equity that credit proceeds. to have term $XXX with million had down approximately the completion to course, prior that we we of

-- no there's so nothing And the on there's revolver. drawn

quarter this that, of adjusted the year, million had results the we year to a X%. back to results year. The continue all at stakeholders solid our the our rate call with confidence in provided And of half Borrowings in north to the just first on and at give us Chris. EBITDA the million. closing, guidance hard the strength $XX work I'll of through we'll In range beginning best very XX, we're produce for continued $XX to of of turn the X the second variable May a of April possible we've

Christopher Reading

that. go line ahead for up Carey. Operator, Thanks, I appreciate and questions. let's

Operator

Brian Instructions]. Tanquilut first with to And [Operator go Jefferies. we'll

Brian Tanquilut

some these I productivity on KPIs, whether points, with It do looks well. there and of shared clinic mean think it those question. runway as some deliver the to I that drive But key very the cost care do the those about productivity right? ask it's per metrics like clinic, I'll visit you're of the based this us all of you much cost left metrics? to is the and of executing like the sounds think how guess, morning, I Carey

Christopher Reading

it's Yes, good question. a

mean patients not X can we We've of productivity, number wouldn't clinician ago. years there's just out X, individual Individual there. room X, probably productivity, we but a the that call got of So individual through clinic much an as throughput, get lot it clinic. being as I I elasticity had

we of of We've hours mean not our I adjust markets lot clinic lot expand basis, a clinics clinics We think Fridays. Saturdays. to our our got of per can on clinics, open say most hours. capacity on number to are have closed to our constantly A continue our early increase. on certain I a that that this, in

And of to we in we've think to be factor. that is, going had fact quarter, at I in caused in limiting had this got turnover bit where the a the particularly be not with that scheduling front room a a this the to as 'XX, valid disappointment we really from move that's desk. rate So had to perspective. scarcity that we as granular have we and extremely certainly be This the need a we issue that not us as little

by we encouraged services I were other out they addressable areas think, the think very, actually conjunction our with detailed it's, going not of and that is that training, I'm will in of clinical the couple forward. some I that just the and team, a on holding operations on help top team that, us very as group fact

progress, So been out, but that -- pointed a on. hand, we in you for on areas the all one made have we've quarter, the better as little of focused

do. We make we'll there. to progress know what I think

Brian Tanquilut

the I maybe contracts? to, our portfolio And it. X% within above, you to on X% the And without positive commercial would rate, think as second rate have, one, stuff. you number how about that of some say, left Got the net be percentages, mean maybe side by number offset Medicare the rate growth increase right? of is to of much the being drive contracts rate mentioned number. a then maybe obviously, we opportunity trend going since But push

Christopher Reading

We have contract configured as we any more know I don't partnerships. to if just us further. a you so Carey, to do contracts got in comment lot But of than XXX our because negotiation companies across many happen do of want left we've to

Carey Hendrickson

agree. No, I

the the and them. lots with rate progress make constant for a It's to big mean success. takes I -- -- We're payers longer we're in focus I'd have are up We of success these having Brian. just us, we're say having good get contracts. ones that negotiations

And we're at it work day. to so continuing every

Christopher Reading

Brian, been increases have but some of to on that these contracts getting are yet we even we're one now, annual sequential you've completed come increases the already.

Carey Hendrickson

to working We're step build in part. most the X-year increases for Yes.

have each the know along. be year rate to we'll year. as increases contractual So going We those to less touch we're getting goes

that's move to... So the

Brian Tanquilut

players. than know what for But sheet obviously the obviously, know more appetite opportunities I like? of raise, that been availability? the up does I question mean more bunch now, guys like given lot on me, the big your today you're the balance you side for has your flexibility. are platforms. Last sitting capital right space popping capital look look competition did your of either I dominated bunch or market does market on a probably the smaller Chris. by what a And PE-backed of I a scaled rather deals of in mean, terms is

Christopher Reading

Yes.

the still opportunity think strong. is I

have PE-backed many a of more significant the think this peak of think, were operators these right said decidedly we're reality been extent, or deals kind a because the companies to of individual in what to missed lot either that seeing have where is interest year. certain I and particularly high I increases this rate the flat point as leverage done number is themselves a the gotten think now have year, I

of and XXXX things the not we're at this when said height Having 'XX or a I little anymore even think hot still mean really, there's were in I we're that, the in early remarks busy. timing market. really

done. ready longer. bigger PT, on things happened opportunities and to a But has and occasions get prevention. that's then go for things couple taking still bit. partner in in just something this at year. And Now those just sometimes, we're of the It's deals push we're a little injury looking and bit We'll little too not a us, but

but to always It's it's to be get So going going lumpy, good been we're things done. lumpy.

Operator

of next America. our Gajuk take Bank Joanna question We'll from with

Joanna Gajuk

So this can terms I in of if increases, just rate up commercial follow there.

guess rate right experiencing Are So suggesting now. you accelerate increase that that next negotiate as the incremental additional the kind X% you year? of I into could contracts actually

Carey Hendrickson

timing Joanna, as rates the like over commercial it's to it's and of just ones hard expect of increase, continue of get time. far I the it's M&A, of it's increase going the to timing certainly to kind say. which rate lumpy, that to those. those as you on depend We're working at it hard

Christopher Reading

go additional These builds previous. years one contracts what we've they last on every and done on for and

Carey Hendrickson

Yes.

also we just increases ones have for that we on too, step the -- in As we built mentioned, renegotiated.

to us forward. continue we go So as those should help

So there I lot at a many because think -- rates I mean, of I feel commercial done be there's to contracts. are work always so

to do, So continue -- a of to think work continue we've I got we go made are, those grow good see forward. progress, got know good rates I going and we we make to we've should as progress. and to we've bit but we're still

Christopher Reading

there, price the X% you portfolio, increases. we're Or just increase. X% say X% when the double-digit seeing, not in increase that the not touching cases, We're Carey, X% yes. some or whole And increases to

Carey Hendrickson

renegotiate, to a terminated That's right. but of can we of as increase contracts remarks, on we I still that XX% a we're of some also progress because getting And the increases in got in. other say working X% it's ones impact my over period And over those and well. mentioned are Medicare as a one. those year in also that there and are on X%, XX% We're for times, focus those we're to contracts lot like well. other a And those X-year X% number can us we've Advantage that built I period, making we've X-year

Medicare portion Medicare is overall. Because becoming our visits of bigger Advantage a

that what least We hands CMS can CMS at And can address address address extent, those and so Medicare to we and we relate rates. they down, we've to certain contracts how but can't Advantage -- somewhat. a those got

Joanna Gajuk

Okay.

the just you of like you book contract, commercial, period, accumulate X/X over obviously a like X-year have you the kind going are to negotiating slowing another time then it's because so book. kind you're have say on of X/X, of a over you your So X-year so the through a renegotiated and

So to eventually, more on in going all going effective the what's this now contracts it's only contract. of be on X/X versus of

on last that sense the business. comment So makes and this on the MA part of

So it's Medicare is a small think to your to there because way a is but I portion, -- know point, . the

how I either that kind to was So the of -- renegotiate or these that the a you're how how portion -- big reset guess, trying of of portion kind about that to and still drop business think is portion that contracts? already

Carey Hendrickson

commercial Medical within advantage the Advantage. So Medicare,

right as Medicare So Medicare It's our bucket. around total I -- advantage say I'd now, to the of XX% a mean XX% it's grown percentage.

from it XX% all about at visits, Medicare in of it this that's XXs year the where to last it's look time. at up XX% you if was and the So upper

say So get Advantage. to push that too. there's still early that, to Medicare been on piece, people I'd a innings we're

really that contracts we relates some identifying to are We've not of they're they're -- not work it as know suitable. not done these some just good

And so terminated those. we've

same of from of on off it are XXX% kinds A -- be to nice we're sizable up situation. that We've where right of could increases on we're from made in but well, making. seeing. of going the to them increases paid those those be those to are we're identified and because others bumping progress the really the double-digit Again, Medicare address. still are that XX% are and primary ones contracts that times, may bat we've some or it XX% got those those we've lot So as they XX% XX%,

Joanna Gajuk

the That's guess, good pricing on the to I comp. piece, workers' hear. last And

know of rates terms spend -- kind to any of right? mix? so that what's that's pre-COVID bucket, And there XX% speak, the of and highest the maybe update because your in on all the client I there? kind are to the done you -- work bringing the guess payers, I different pandemic, And of to guess was I do of So the now kind what So in mix back being you the of some front? was

Carey Hendrickson

Yes.

going our I'm are mix go sorry, for ahead. you say to So Eric, -- something?

Eric Williams

weigh we're side. work This where Yes. is Williams headed I the was going Eric in in. to on terms of comp

started in with last years a quarter work we comp the putting the we built lot relationships actually efforts us back of of to individual for the second of ago. year the some rebuild So who networks brought program yes, in

last And year, seen straight uptick an still the the opportunity. this saw the where course was in the lot in quarter third we this volume highest second volume, saw a of quarter QX actually is of we've of quarters. in The X we over volume

feel in our additional So mix was network drive XX% we now, here QX higher percentage a signed some continue play of it terms ability of just number year. of this a of new we as in agreements and right of here optimistic beginning contracts in the our year. to under We've to this got

Carey Hendrickson

is as you would has just pretty know, notable I volume because, increase And comp the as of significantly. increasing percent our a been mix, for really say workers'

pace a greater at increasing that they're overall increase. is So our than

which of And that's comp they in were closer XX% workers' Joanna, overall. or else, maybe workers' then in X% comp was quarter the kind about as there's So the about is first good. is just to address just so. quarter. is quarter. the about everything X% mix part that's the is and X.X% second is in -- Medicare XX% mix To the XX%, of and commercial XX%, Medicaid second

Joanna Gajuk

Great.

guess pricing the last and outlook I into And so helpful, squeeze year. if X next may, I on just

was that it, in, which X.XX% So the XXXX cut. than all worse for, America proposal calls call would finalized, be rate

and lessen your proposal? Congress, I your to that trying visibility on guess, much that And stepping what's take here. in there? So is again how cut being And work, what's to

Christopher Reading

out came does the middle rule as it to proposed that end July does of Obviously, year. every

in early companies individual we're comments, very lobby of So in Washington in are full leadership I prepared in delivery active APTQI, mentioned partner, that putting APTQI our who member all process. our a all Again, group my it's changes this few in over short court December come just necessary is a when the a out on and press. unfortunately, overall. in now companies, We are finalized get to runway and gate immediately years we difficult of

but We hopeful greatest that so reductions you lot to probably more early. effort care to regard. for -- health we value sell think going physical without than we'll to it's yet. past, in from misplaced ball picking directionally work significant massive is which on on more I'm summer, not function know make much they're don't I'm and going And to these that as do. very people we're work injuries in have But therapy, and I the returning got a give we've because surgeries, a the in in the crystal progress. it's not

Operator

the from Solow with take Larry next We'll CJS Securities. question

Lawrence Solow

you the little from right? tailwind, My question going But pricing. the the some I and to I just back -- already, these scheduling answered misalignments to from the guidance fixing least to, see, of but a your terms at Medicare it have agreement didn't in you of was the does term, up it feel to half just you guess, of spoke that of just like, like a guess, on just feels go topic on some that away bit walking shorter

in to our year, for you slowly is to at asking fair guide half not back could the up a again, work low say? this the way pricing, So of as on that back it perhaps half. it but Is least watermark do the

Carey Hendrickson

the talked there's believe done. yes, rate do things the already Yes. think addressable work about to related out, on today, based move and potential that we it's the things that we've we've to We

Lawrence Solow

multiplier I a a of And than gets lot that say on only whatever, majority X% to a or like X% But than increase still of moving you're probably or XX% it by but fair your or So maybe of the much, haven't haven't or effect. divided multi-yield price that thing, [indiscernible], more probably through not obviously, contracts worked mid-single you're is changed. you time a right? that just lot so right? getting contracts, but touched or digits have you more gas not that sort getting whatever, much many and so So the negotiation of that more you

Carey Hendrickson

We've Yes, do. that's lot to right. more That's not got even a close.

Lawrence Solow

Okay.

first at Obviously, both anything on Okay. in we trends you rate the just sort was saw up the average year. on actually continue quarters. of -- which you of think any look there thoughts in Do really of the to X% or incorporated first kind in what that? back of but I quarter, those to volume. half, volume Great. good, is And expect X%, half a back like half really half we more terms the this Is historical strong or

Christopher Reading

back to the forward, part the look really to have that say, I mean year, scarcity didn't and in I have front year, year we things. probably other the last of we all last you acute June didn't we the of of last the would if in, question became

that address we the second so year, all And the year because that actually, so staffing -- this a we volume have in the comps, tight. of actually. just half first are of tougher the might was we're couldn't half completed We in part just had 'XX ago

And adjustments. staffing's made ago, can included lot but easy not year tell feels a better so I we right a than you, it now,

Our done weaker half part, comp we just the of has numbers volume strong, can but the has year. be a our because bit those I'm a some so continued of team in to good and is same-store in really little job hoping second expand

Carey Hendrickson

February, -- comment and the volumes such quarter that like Yes. big say The would I experienced was particularly. was first never weakness it we've January that because -- we jump a just in

the go was jump bit And half are growth I strong -- clinic half a wouldn't of the in little a are second back really we nice mature it so comps But the mentioned, like year. as not the that quite first as expect as back into in Chris get year. quarter. the of X% to the the

Lawrence Solow

Got at what this beginning you position of said, last you. probably terms anywhere staffing. like And back to year -- in your the you of obviously, better half

Okay.

question, last Just here. Carey, while you're

visit guys. actually per down despite rapid and overall which basis you've hung really years to Just overall been cost on you or good margin a job really steady done really the commendable you a costs we last pretty few in that has in price mentioned inflation pressure, and

it's Or clinics of up. on if salary still pricing? just just acquired a more me basis, and Can come just the margins, I on driving revenue percentage your Is a -- a what's you of function kind a that? look year-over-year to as that how of explain of

Carey Hendrickson

Yes. those It's -- impact, there's double looking of rate. volume a at impact the at you're when a looking combo impact because you're percentages, right? There's and there's of

that -- costs what revenue revenue I you're when those is that. how impacts and at as really think of percent a that is so And influences the looking rate

Christopher Reading

it well It's the agree a think It's It's driver. still you. driven I of that pressure on rate. pressure I done we've pretty the Yes, with with off. that reflective

Carey Hendrickson

on best Yes, at believe why visit to those at costs metric is and looking the basis. for a per that's look we

Lawrence Solow

That's you that all. I color. why appreciate that, do understand totally

Operator

our Larew William from next with Matt take Blair. We'll question

Madeline Mollman

It's for Madeline Matt. Mollman

Just customers putting segment. you -- this about them some I pushing to contracts the was pause or on that slightly down mentioned on them. it delaying back one and know or you talked some quarter, contracts

With restart the seen customers for discussions reengaging, contracts, macro that environment wanting at starting to to beginning improve these -- all? you have

Christopher Reading

with No. to I'm know we've not said not. the they're don't that coming year think on this they we that, still the heavily partnerships, have close weighted as and I further Having diversified same across were What those and of they're now business. influenced. kind where a think tech side certain concerned before. good their business going a it's to client customers few of is our I I people base. of still both lot if are tech contracts added we today, -- tell I know things that lot, customers, and that, heavily were and honestly you, outlook

we've meaningful But seen if to it. speak might Eric, don't yet. are reversals my any knowledge, know big and to I that you

Eric Williams

agree would that. I No, with

Chris. have But that distribution And on you hurt other tech customers year. done the up retail and diversify side mean the of businesses think was business sector I that We've portfolios. hard. and IIP end I away tail got automotive the fall really we last to seen job the sector summed saw perfect, trying that a side of nice their actually a increased.

not I opportunity but XXXX. growth basis, macro near there's as was think a going here as it things robust on think stabilized. forward, I have in And for So

Madeline Mollman

for you then more growth I think little can muted range expect Great. the year, past bit I first about X again, XXXX? a in talk a that XX% XXXX. what last IIP, the is was be? quarters long-term of on to segment for year, And know you this same-store the growth

just grow expect time. that So segment can what to over we

Christopher Reading

and extraordinary. has growth haven't long, had Look, IIP the been all we that

now, different make sectors, parts many politics interest that or or aren't the many and and mentioned, between to the we're as times. the it and recover cold across moving at as So for right and all they at me, hot decisions because different things a has in CFOs rate environment economy the get CEOs different uniform Eric country fed rates influence.

of expect ahead All being be that be PT to and positive business other very relatively we So we growth as equal. go to through stable this us grow can forward. our acquisition. macro things demonstrated and We've

just at that have to country. rate us, expand, able that take enough numerous that. do those speaking, But clients around particularly have growth to are Our be operations generally clients with point are to because not most clients, clear going very, topics sticky. They this positioned I don't the stick I'm a very

Operator

At back no for in will turn additional we this have time, call Chris closing further queue. the Reading to or any I questions remarks.

Christopher Reading

are next got and week. today and We we that, Yes. come attention Carey and But morning after meetings lot. week, of back Thanks, a appreciate we've up your next covered air. and for come rest for we'll board time everyone. We know the and available this I week

follow-up if and please give call, us have great So any or a day. any you have questions necessary, a

Operator

Call. Physical Conference Thank Quarter you all. This XXXX concludes the Earnings U.S. Second Therapy

wonderful and have disconnect may You your line at day. a time, this

U.S. Physical Therapy (USPH) 9 Aug 232023 Q2 Earnings call transcript