U.S. Physical Therapy(USPH)2024-11-08 21:01Financial Performance - U.S. Physical Therapy reported a net income of $6.6 million for the third quarter of 2024[96]. - Earnings per share for Q3 2024 was $0.39, down from $0.51 in Q3 2023, reflecting a charge of $2.5 million related to the closure of 32 clinics[97]. - Net income for the first nine months of 2024 was $22.2 million, compared to $27.6 million in the same period of 2023, with earnings per share decreasing from $1.72 to $1.32[97]. - Adjusted EBITDA for Q3 2024 was $21.1 million, up from $18.6 million in Q3 2023, indicating a positive trend in operational performance[102]. - Operating results per share for Q3 2024 increased to $0.69 from $0.62 in Q3 2023, demonstrating improved efficiency[102]. - USPH net income for Q3 2024 was $6,628,000, a decline of 28.4% from $9,254,000 in Q3 2023[105]. - Total net revenue for the 2024 Nine Months increased by $40.9 million, or 9.1%, to $490.9 million from $450.0 million for the 2023 Nine Months[117]. - Gross profit for the 2024 Nine Months was $91.4 million, or 18.6% of net revenue, compared to $91.0 million, or 20.2% of net revenue, for the 2023 Nine Months[117]. Operational Metrics - The company managed a total of 700 clinics as of September 30, 2024, including 39 clinics managed under third-party contracts[93]. - The average daily visits per clinic for the third quarter of 2024 were not specified, but the company reported a total of 681 clinics at the beginning of the period[92]. - Average daily visits per clinic increased to 30.1 in Q3 2024, up from 29.7 in Q3 2023[107]. - Total patient visits increased by 74,097, or 6.0%, to 1,317,051 in the 2024 Third Quarter from 1,242,954 in the 2023 Third Quarter[108]. - Patient visits increased by 182,804, or 4.9%, to 3,920,388 in the 2024 Nine Months from 3,737,584 in the 2023 Nine Months[120]. Revenue and Costs - Net patient revenue for Q3 2024 was $139,146,000, an increase of 9.4% compared to $127,243,000 in Q3 2023[105]. - Total operating costs for Q3 2024 were $138,902,000, up 13.8% from $122,078,000 in Q3 2023[105]. - Operating costs for Physical Therapy Operations in Q3 2024 were $119,207,000, an increase of 11.4% from $107,016,000 in Q3 2023[106]. - Operating costs rose by $40.5 million, or 11.3%, to $399.5 million from $359.0 million over the same periods[117]. - Operating costs per visit increased to $86.32 for the 2024 Nine Months from $82.35 for the 2023 Nine Months[121]. Acquisitions and Growth Strategy - The company completed the acquisition of a 50% interest in MSO Metro, LLC for approximately $76.5 million, funded primarily by cash on hand[93]. - The company acquired 100% of an IIP business on October 31, 2023, and a 55% equity interest in an ergonomics software business[90]. - The company aims to continue acquiring outpatient physical therapy practices and expand its IIP sector[93]. - The company completed several acquisitions in 2023, including clinics with varying ownership percentages, contributing to its growth strategy[91]. - On August 31, 2024, the company acquired a 70% equity interest in an eight-clinic practice for approximately $2.0 million, with a maximum contingent consideration of $3.6 million[140]. - The company acquired 100% of Briotix Health Limited Partnership for approximately $24.0 million on April 30, 2024, with a contingent consideration valued at $2.4 million as of September 30, 2024[140]. Financial Position and Cash Flow - Total cash and cash equivalents were $117.0 million as of September 30, 2024, down from $152.8 million as of December 31, 2023[132]. - Cash provided by operating activities was $55.5 million for the nine months ended September 30, 2024, compared to $55.1 million in the same period of 2023[135]. - Cash used in investing activities totaled $54.6 million, primarily for the purchase of interests in businesses and fixed assets[135]. - Cash used in financing activities was $36.8 million, which included $19.9 million in cash dividends paid to shareholders[135]. Tax and Interest Expenses - The provision for income taxes was $2.6 million in the 2024 Third Quarter compared to $3.6 million during the 2023 Third Quarter[114]. - Interest expense decreased to $6.0 million for the nine months ended September 30, 2024, from $7.3 million in the prior year, due to lower outstanding borrowings[127]. - Interest expense decreased by $0.1 million to $2.0 million for the 2024 Third Quarter compared to $2.1 million in the 2023 Third Quarter[114]. Future Outlook - The company plans to continue evaluating its operational strategies and market expansion opportunities to enhance future performance[102]. - The company plans to continue developing new clinics and making acquisitions, funded through cash and financing[133].