U.S. Physical Therapy(USPH)2021-05-09 06:47Financial Data and Key Metrics Changes - The company reported Q1 2021 operating results per share of $0.64, an increase of $0.34 from $0.30 per share in Q1 2020 [21] - Total revenue for Q1 2021 was $112.4 million, slightly down from the previous year, despite having one less business day and 24 fewer clinics open on average [24] - Adjusted EBITDA for Q1 2021 was $15.6 million, up from $8 million in Q1 2020 [23] - Gross profit margin increased to 23.1% in Q1 2021, up 590 basis points from 17.2% in Q1 2020 [30] Business Line Data and Key Metrics Changes - Physical therapy revenues were $102.4 million in Q1 2021, a decline of only 0.5% compared to Q1 2020 [28] - Revenues from the industrial injury prevention business increased by 1.3% to $10 million in Q1 2021 [29] - Average visits per clinic per day were 27.1 in Q1 2021, higher than 26.2 in Q1 2020 and 26.9 in Q1 2019 [25] Market Data and Key Metrics Changes - Patient volumes per clinic per day were 26.1 in January, 25.6 in February, and increased to 29.3 in March 2021, marking a record high [26][22] - The net rate for physical therapy operations was $104.72 in Q1 2021, up 1.6% from $103.11 in Q1 2020 [27] Company Strategy and Development Direction - The company is raising its guidance for the year from a range of $2.40 to $2.52 to a new range of $2.68 to $2.78 per share, driven by better-than-expected performance and strong patient volumes [12] - The company has successfully renegotiated lease contracts and secured positive pricing adjustments with payers, which are expected to benefit future performance [11] - The company continues to pursue acquisitions and partnerships, indicating a strong appetite for growth [16][95] Management's Comments on Operating Environment and Future Outlook - Management noted that while volumes are recovering, COVID-19 still impacts operations, particularly in certain regions [48] - The company expects to see a restoration of normal activities, which will provide a tailwind for growth [49] - Management expressed confidence in the resilience of operations and the potential for increased shareholder value going forward [36] Other Important Information - The company paid back $14.1 million in Medicare advance payments during Q1 2021 and funded an acquisition of $11.7 million [35] - The company has a clean balance sheet with strong cash generation, ending the quarter with approximately $18 million in cash [34] Q&A Session Summary Question: Status of visits per day and COVID impact - Management indicated that visits per day are nearly back to pre-COVID levels, but some population segments are still affected by COVID [45][48] Question: Sustainability of efficiency improvements - Management acknowledged that while some costs will return, many efficiencies gained during the pandemic will be maintained [51][55] Question: Position of the injury prevention business - Management believes there is significant room for growth in the injury prevention business, despite some setbacks during the pandemic [57] Question: Activity level in M&A pipeline - The company reported brisk activity in the M&A pipeline, focusing on partnerships that align with their growth strategy [75][95] Question: Labor costs and filling positions - Management noted mixed experiences in filling positions, with some challenges in front office roles but overall good performance in maintaining staffing levels [96] Question: Renegotiated leases - Management confirmed that approximately $350,000 in overall adjustments have been made through lease renegotiations [132]