U.S. Physical Therapy(USPH)2022-05-08 15:34Financial Data and Key Metrics Changes - The company reported operating results per share of $0.65 for Q1 2022, compared to $0.64 in Q1 2021 [17] - Adjusted EBITDA reached an all-time high of $17.9 million, a 14.2% increase from the previous year [17][22] - Total company revenue grew by 17.2% for the quarter, with Physical Therapy revenue increasing by 10.6% to $110.4 million [12][22] Business Line Data and Key Metrics Changes - Physical Therapy patient volumes per day per clinic reached 27.9, a record high for Q1, up 3% from 27.1 in the previous year [18] - Injury Prevention (IP) revenues increased by 90% to $19.1 million, with a 22.4% increase excluding the recent acquisition [11][22] - Same-store visit growth was reported at 5.9% for the quarter [9][21] Market Data and Key Metrics Changes - The net rate for Physical Therapy operations was $103, down from $104.72 in Q1 2021, reflecting Medicare rate cuts [20] - Total visits increased by almost 116,000 to 1,063,519, a 12.2% increase from the previous year [21] Company Strategy and Development Direction - The company is focused on growth through acquisitions and has opened 12 de novo facilities so far this year [14][30] - Management emphasized the importance of partnerships and the ability to withstand challenges in the healthcare environment [14][32] - The company is actively pursuing negotiations with private insurance providers to improve reimbursement rates [44] Management's Comments on Operating Environment and Future Outlook - Management noted a strong recovery in March following a slow start to the year due to the Omicron variant and winter weather [8] - The company expects to continue growing volumes and is optimistic about future performance despite ongoing challenges [38] - Management highlighted the competitive landscape, indicating potential market share gains from struggling competitors [91] Other Important Information - Operating costs were $105.1 million, representing 79.8% of net revenues, with salaries and related costs slightly up year-over-year [23][24] - The company ended the quarter with $118 million drawn on its revolving credit facility, maintaining a strong balance sheet [30] Q&A Session Summary Question: Volume growth expectations for Q2 and beyond - Management believes they can continue to grow volumes but avoids specific quarter-to-quarter guidance [38] Question: Impact of Medicare rate cuts - Management confirmed that further Medicare rate cuts are expected in Q2 and Q3 [40] Question: Negotiations with private insurance providers - Management is actively working on negotiations with private insurers for better rates, acknowledging the challenges [44] Question: Margin impacts from labor and rent costs - The increase in contract labor costs was attributed to early-year challenges, with expectations for margins to improve in subsequent quarters [47] Question: Growth in the Injury Prevention business - Management indicated that while growth was strong, it was slightly below internal expectations due to industry-specific challenges [76] Question: Competitive environment and market share - Management noted that they have likely gained market share from hospitals and smaller practices during the pandemic [91] Question: Future acquisition strategy - Management is optimistic about ongoing acquisition discussions, seeing both larger and smaller opportunities in the market [75]