U.S. Physical Therapy(USPH)2021-08-08 16:20Financial Data and Key Metrics Changes - The company reported operating results per share of $0.96 for Q2 2021, a record high, which is $0.57 higher than $0.39 in Q2 2020 without relief funds and $0.15 or 18.5% higher than $0.81 in Q2 2019 [13][7][12] - Adjusted EBITDA reached $21.8 million, a record high, which is $2.8 million or 14.5% higher than $19 million in Q2 2020 and $10.7 million or 97.1% higher than Q2 2020 excluding relief funds [15][16] - Revenues for Q2 2021 were $126.9 million, a record high, which is $43.1 million higher than Q2 2020 and $0.6 million or 0.4% higher than Q2 2019 [16][17] Business Line Data and Key Metrics Changes - Physical therapy revenues were $113.2 million in Q2 2021, an increase of 56.7% from $72.3 million in Q2 2020, and only slightly less than $113.4 million in Q2 2019 despite having 21 fewer clinics open on average [18][19] - Revenues for the industrial injury prevention business were $10 million in Q2 2021, a 3.9% increase over Q2 2020 revenues of $9.7 million [19] Market Data and Key Metrics Changes - The net rate for physical therapy operations was $104.46 in Q2 2021, consistent with $104.72 in Q1 2021, showing resilience despite a 3.5% Medicare rate adjustment [18] - Medicare accounted for 31% of the payer mix, while workers' compensation was about 10.5% [78] Company Strategy and Development Direction - The company announced an acquisition of an 8-clinic practice, indicating a focus on growth and expansion in sports medicine-related services [8] - The management expressed confidence in the ability to continue strong performance and raised the full-year 2021 guidance range for the second time this year [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the physical therapy sector is gaining increased attention, emphasizing the importance of personal patient care [9] - The company is focused on overcoming challenges such as reimbursement and staffing while maintaining a commitment to quality care [10] Other Important Information - The company increased its quarterly dividend from $0.35 to $0.38 per share, reflecting confidence in financial performance [8] - The balance sheet remains strong with $38 million drawn on a $125 million revolving credit facility and $20.4 million in cash as of June 30, 2021 [25] Q&A Session Summary Question: Can you share insights on the strong rebound in patient volumes? - Management indicated that while there is no significant pent-up demand, the return of sports and recreational activities is expected to help maintain strong volumes [32] Question: How are you managing costs and efficiency post-COVID? - Management acknowledged improved efficiency and indicated that while there may be salary pressures, they expect to maintain margin improvements [38] Question: What is the outlook for 2022 reimbursement rates? - Management noted a proposed 3.5% reduction in reimbursement rates and emphasized the importance of advocating for the value of physical therapy [53] Question: Have patient volumes been affected by the Delta variant? - Management confirmed that there has been no degradation in patient volumes in Texas despite the Delta variant [56] Question: What is the current status of the industrial injury prevention business? - Management reported ongoing discussions and a focus on rebuilding the sales pipeline, with expectations for growth in the future [61]