![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
US Physical Therapy Inc | NYSE:USPH | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 94.48 | 0 | 01:00:00 |
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
NEVADA
|
76-0364866
|
|
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION)
|
(I.R.S. EMPLOYER IDENTIFICATION NO.)
|
1300 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 300, HOUSTON, TEXAS
|
77042
|
|
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
|
(ZIP CODE)
|
Large accelerated filer
|
☑
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐ (Do not check if a smaller reporting company)
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.01 par value
|
USPH
|
New York Stock Exchange
|
|
||
Item 1.
|
3
|
|
|
|
|
|
3
|
|
|
|
|
|
4
|
|
|
|
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
|
7
|
|
|
|
|
Item 2.
|
29
|
|
|
|
|
Item 3.
|
46
|
|
|
|
|
Item 4.
|
46
|
|
|
|
|
PART II—OTHER INFORMATION
|
|
|
|
||
Item 1.
|
47
|
|
|
|
|
Item 6.
|
48
|
|
|
|
|
|
49
|
|
|
|
|
|
Certifications
|
|
ITEM 1. |
FINANCIAL STATEMENTS.
|
|
June 30, 2021
|
December 31, 2020
|
||||||
ASSETS
|
(unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
20,419
|
$
|
32,918
|
||||
Patient accounts receivable, less allowance for credit losses of $2,435 and $2,008, respectively
|
45,144
|
41,906
|
||||||
Accounts receivable - other
|
9,025
|
9,039
|
||||||
Other current assets
|
5,111
|
3,773
|
||||||
Total current assets
|
79,699
|
87,636
|
||||||
Fixed assets:
|
||||||||
Furniture and equipment
|
57,538
|
55,426
|
||||||
Leasehold improvements
|
35,986
|
35,320
|
||||||
Fixed assets, gross
|
93,524
|
90,746
|
||||||
Less accumulated depreciation and amortization
|
71,964
|
69,081
|
||||||
Fixed assets, net
|
21,560
|
21,665
|
||||||
Operating lease right-of-use assets
|
87,090
|
81,595
|
||||||
Goodwill
|
373,887
|
345,646
|
||||||
Other identifiable intangible assets, net
|
59,216
|
56,280
|
||||||
Other assets
|
1,506
|
1,539
|
||||||
Total assets
|
$
|
622,958
|
$
|
594,361
|
||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, USPH SHAREHOLDERS’ EQUITY
AND NON-CONTROLLING INTERESTS
|
||||||||
Current liabilities:
|
||||||||
Accounts payable - trade
|
$
|
1,782
|
$
|
1,335
|
||||
Accrued expenses
|
44,720
|
59,746
|
||||||
Current portion of operating lease liabilities
|
27,860
|
27,512
|
||||||
Current portion of notes payable
|
1,017
|
4,899
|
||||||
Total current liabilities
|
75,379
|
93,492
|
||||||
Notes payable, net of current portion
|
821
|
596
|
||||||
Revolving line of credit
|
38,000
|
16,000
|
||||||
Deferred taxes
|
8,281
|
7,779
|
||||||
Operating lease liabilities, net of current portion
|
66,887
|
61,985
|
||||||
Other long-term liabilities
|
5,442
|
4,539
|
||||||
Total liabilities
|
194,810
|
184,391
|
||||||
Redeemable non-controlling interests - temporary equity
|
143,337
|
132,340
|
||||||
Commitments and Contingencies
|
|
|
||||||
U.S. Physical Therapy, Inc. (“USPH”) shareholders’ equity:
|
||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized, no shares issued and outstanding
|
-
|
-
|
||||||
Common stock, $0.01 par value, 20,000,000 shares authorized, 15,121,669 and 15,066,282 shares issued, respectively
|
151
|
151
|
||||||
Additional paid-in capital
|
99,039
|
95,622
|
||||||
Retained earnings
|
216,286
|
212,015
|
||||||
Treasury stock at cost, 2,214,737 shares
|
(31,628
|
)
|
(31,628
|
)
|
||||
Total USPH shareholders’ equity
|
283,848
|
276,160
|
||||||
Non-controlling interests - permanent equity
|
963
|
1,470
|
||||||
Total USPH shareholders’ equity and non-controlling interests - permanent equity
|
284,811
|
277,630
|
||||||
Total liabilities, redeemable non-controlling interests,
|
||||||||
USPH shareholders’ equity and non-controlling interests - permanent equity
|
$
|
622,958
|
$
|
594,361
|
|
Three Months Ended
|
For the Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30,2021
|
June 30, 2020
|
|||||||||||||
Net patient revenues
|
$
|
113,238
|
$
|
72,279
|
$
|
212,492
|
$
|
172,405
|
||||||||
Other revenues
|
13,690
|
11,578
|
26,804
|
24,169
|
||||||||||||
Net revenues
|
126,928
|
83,857
|
239,296
|
196,574
|
||||||||||||
Operating costs:
|
||||||||||||||||
Salaries and related costs
|
68,866
|
43,429
|
132,681
|
112,433
|
||||||||||||
Rent, supplies, contract labor and other
|
22,416
|
20,311
|
43,836
|
43,220
|
||||||||||||
Provision for credit losses
|
1,364
|
739
|
2,564
|
2,100
|
||||||||||||
Closure costs - lease and other
|
(22
|
)
|
94
|
15
|
1,987
|
|||||||||||
Closure costs - derecognition of goodwill
|
-
|
-
|
-
|
1,859
|
||||||||||||
Total operating costs
|
92,624
|
64,573
|
179,096
|
161,599
|
||||||||||||
Gross profit
|
34,304
|
19,284
|
60,200
|
34,975
|
||||||||||||
Corporate office costs
|
12,074
|
9,022
|
22,948
|
20,699
|
||||||||||||
Operating income
|
22,230
|
10,262
|
37,252
|
14,276
|
||||||||||||
Other income and expense:
|
||||||||||||||||
Relief Funds
|
-
|
7,959
|
-
|
7,959
|
||||||||||||
Gain on sale of partnership interest and clinics
|
-
|
1,073
|
-
|
1,073
|
||||||||||||
Interest and other income, net
|
46
|
4
|
100
|
47
|
||||||||||||
Interest expense - debt and other
|
(237
|
)
|
(653
|
)
|
(483
|
)
|
(1,080
|
)
|
||||||||
Total other income and expense
|
(191
|
)
|
8,383
|
(383
|
)
|
7,999
|
||||||||||
Income before taxes
|
22,039
|
18,645
|
36,869
|
22,275
|
||||||||||||
Provision for income taxes
|
4,567
|
3,882
|
7,511
|
4,174
|
||||||||||||
Net income
|
$
|
17,472
|
$
|
14,763
|
$
|
29,358
|
$
|
18,101
|
||||||||
Less: net income attributable to non-controlling interests:
|
||||||||||||||||
Redeemable non-controlling interests - temporary equity
|
(3,611
|
)
|
(2,996
|
)
|
(6,064
|
)
|
(4,792
|
)
|
||||||||
Non-controlling interests - permanent equity
|
(1,425
|
)
|
(1,535
|
)
|
(2,685
|
)
|
(2,061
|
)
|
||||||||
$
|
(5,036
|
)
|
$
|
(4,531
|
)
|
$
|
(8,749
|
)
|
$
|
(6,853
|
)
|
|||||
Net income attributable to USPH shareholders
|
$
|
12,436
|
$
|
10,232
|
$
|
20,609
|
$
|
11,248
|
||||||||
Basic and diluted earnings per share attributable to USPH shareholders
|
$
|
0.82
|
$
|
0.99
|
$
|
1.03
|
$
|
1.19
|
||||||||
Shares used in computation - basic and diluted
|
12,902
|
12,843
|
12,886
|
12,820
|
||||||||||||
Dividends declared per common share
|
$
|
0.35
|
$
|
-
|
$
|
0.70
|
$
|
0.32
|
|
Six Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
OPERATING ACTIVITIES
|
||||||||
Net income including non-controlling interests
|
$
|
29,358
|
$
|
18,101
|
||||
Adjustments to reconcile net income including non-controlling interests to net cash provided by
operating activities:
|
||||||||
Depreciation and amortization
|
5,484
|
5,333
|
||||||
Provision for credit losses
|
2,564
|
2,100
|
||||||
Equity-based awards compensation expense
|
3,405
|
3,389
|
||||||
Deferred income taxes
|
3,160
|
(1,737
|
)
|
|||||
Loss on sale of fixed assets
|
106
|
429
|
||||||
Gain on sale of partnership interest
|
-
|
(1,073
|
)
|
|||||
Derecognition (write-off) of goodwill - closed clinics
|
-
|
1,859
|
||||||
Changes in operating assets and liabilities:
|
||||||||
(Increase) decrease in patient accounts receivable
|
(5,325
|
)
|
8,880
|
|||||
Decrease in accounts receivable - other
|
129
|
283
|
||||||
(Increase) decrease in other assets
|
(255
|
)
|
5,969
|
|||||
(Decrease) increase in accounts payable and accrued expenses
|
(3,672
|
)
|
4,478
|
|||||
Increase in other long-term liabilities
|
602
|
345
|
||||||
Net cash provided by operating activities
|
35,556
|
48,356
|
||||||
INVESTING ACTIVITIES
|
||||||||
Purchase of fixed assets
|
(3,301
|
)
|
(4,628
|
)
|
||||
Purchase of majority interest in businesses, net of cash acquired
|
(20,402
|
)
|
(11,633
|
)
|
||||
Purchase of redeemable non-controlling interest, temporary equity
|
(9,536
|
)
|
(2,388
|
)
|
||||
Purchase of non-controlling interest, permanent equity
|
-
|
(144
|
)
|
|||||
Proceeds on sale of redeemable non-controlling interest, temporary equity
|
32
|
19
|
||||||
Proceeds on sales of partnership interest, clinics and fixed assets
|
(168
|
)
|
695
|
|||||
Net cash used in investing activities
|
(33,375
|
)
|
(18,079
|
)
|
||||
FINANCING ACTIVITIES
|
||||||||
Distributions to non-controlling interests, permanent and temporary equity
|
(9,398
|
)
|
(5,707
|
)
|
||||
Cash dividends paid to shareholders
|
(9,028
|
)
|
(4,110
|
)
|
||||
Proceeds from revolving line of credit
|
128,000
|
99,000
|
||||||
Payments on revolving line of credit
|
(106,000
|
)
|
(112,000
|
)
|
||||
Principal payments on notes payable
|
(4,207
|
)
|
(314
|
)
|
||||
(Payment) receipt of Medicare Accelerated and Advance Funds
|
(14,054
|
)
|
12,861
|
|||||
Other
|
7
|
-
|
||||||
Net cash used in financing activities
|
(14,680
|
)
|
(10,270
|
)
|
||||
Net (decrease) increase in cash and cash equivalents
|
(12,499
|
)
|
20,007
|
|||||
Cash and cash equivalents - beginning of period
|
32,918
|
23,548
|
||||||
Cash and cash equivalents - end of period
|
$
|
20,419
|
$
|
43,555
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Cash paid during the period for:
|
||||||||
Income taxes
|
$
|
6,967
|
$
|
57
|
||||
Interest
|
$
|
741
|
$
|
944
|
||||
Non-cash investing and financing transactions during the period:
|
||||||||
Purchase of businesses - seller financing portion
|
$
|
550
|
$
|
300
|
||||
Purchase of businesses - payable
|
$
|
1,000
|
$
|
-
|
||||
Purchase of redeemable non-controlling interest - notes payable
|
$
|
-
|
$
|
137
|
||||
Notes payable due to purchase of non-controlling interest, permanent equity
|
$
|
-
|
$
|
699
|
||||
Note receivables related to sale of partnership interest
|
$
|
287
|
$
|
386
|
U.S.Physical Therapy, Inc.
|
||||||||||||||||||||||||||||||||||||
|
Common Stock
|
Additional
|
Retained
|
Treasury Stock
|
Total Shareholders’
|
Non-Controlling
|
||||||||||||||||||||||||||||||
For the three months ended June 30, 2021
|
Shares
|
Amount
|
Paid-In Capital
|
Earnings
|
Shares
|
Amount
|
Equity
|
Interests
|
Total
|
|||||||||||||||||||||||||||
Balance March 31, 2021
|
15,111
|
$
|
151
|
$
|
97,286
|
$
|
210,375
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
276,184
|
$
|
1,057
|
$
|
277,241
|
||||||||||||||||||
Issuance of restricted stock, net of cancellations
|
10
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax
|
-
|
-
|
-
|
(1,897
|
)
|
-
|
-
|
(1,897
|
)
|
-
|
(1,897
|
)
|
||||||||||||||||||||||||
Compensation expense - equity-based awards
|
-
|
-
|
1,754
|
-
|
-
|
-
|
1,754
|
-
|
1,754
|
|||||||||||||||||||||||||||
Dividends paid to USPT shareholders
|
-
|
-
|
-
|
(4,514
|
)
|
-
|
-
|
(4,514
|
)
|
-
|
(4,514
|
)
|
||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,510
|
)
|
(1,510
|
)
|
|||||||||||||||||||||||||
Other
|
-
|
-
|
(1
|
)
|
(114
|
)
|
-
|
-
|
(115
|
)
|
(9
|
)
|
(124
|
)
|
||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,425
|
1,425
|
|||||||||||||||||||||||||||
Net income attributable to USPH shareholders
|
-
|
-
|
-
|
12,436
|
-
|
-
|
12,436
|
-
|
12,436
|
|||||||||||||||||||||||||||
Balance June 30, 2021
|
15,121
|
$
|
151
|
$
|
99,039
|
$
|
216,286
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
283,848
|
$
|
963
|
$
|
284,811
|
U.S.Physical Therapy, Inc.
|
||||||||||||||||||||||||||||||||||||
|
Common Stock
|
Additional
|
Retained
|
Treasury Stock
|
Total Shareholders’
|
Non-Controlling
|
||||||||||||||||||||||||||||||
For the six months ended June 30, 2021
|
Shares
|
Amount
|
Paid-In Capital
|
Earnings
|
Shares
|
Amount
|
Equity
|
Interests
|
Total
|
|||||||||||||||||||||||||||
Balance December 31, 2020
|
15,065
|
$
|
151
|
$
|
95,622
|
$
|
212,015
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
276,160
|
$
|
1,470
|
$
|
277,630
|
||||||||||||||||||
Issuance of restricted stock, net of cancellations
|
56
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax
|
-
|
-
|
-
|
(7,310
|
)
|
-
|
-
|
(7,310
|
)
|
-
|
(7,310
|
)
|
||||||||||||||||||||||||
Compensation expense - equity-based awards
|
-
|
-
|
3,403
|
-
|
-
|
-
|
3,403
|
-
|
3,403
|
|||||||||||||||||||||||||||
Dividends paid to USPT shareholders
|
-
|
-
|
-
|
(9,028
|
)
|
-
|
-
|
(9,028
|
)
|
-
|
(9,028
|
)
|
||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,182
|
)
|
(3,182
|
)
|
|||||||||||||||||||||||||
Short swing profit settlement
|
-
|
-
|
13
|
-
|
-
|
-
|
13
|
-
|
13
|
|||||||||||||||||||||||||||
Other
|
-
|
-
|
1
|
-
|
-
|
-
|
1
|
(10
|
)
|
(9
|
)
|
|||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,685
|
2,685
|
|||||||||||||||||||||||||||
Net income attributable to USPH shareholders
|
-
|
-
|
-
|
20,609
|
-
|
-
|
20,609
|
-
|
20,609
|
|||||||||||||||||||||||||||
Balance June 30, 2021
|
15,121
|
$
|
151
|
$
|
99,039
|
$
|
216,286
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
283,848
|
$
|
963
|
$
|
284,811
|
U.S.Physical Therapy, Inc.
|
||||||||||||||||||||||||||||||||||||
|
Common Stock
|
Additional
|
Retained
|
Treasury Stock
|
Total Shareholders’
|
Non-Controlling
|
||||||||||||||||||||||||||||||
For the three months ended June 30, 2020
|
Shares
|
Amount
|
Paid-In Capital
|
Earnings
|
Shares
|
Amount
|
Equity
|
Interests
|
Total
|
|||||||||||||||||||||||||||
Balance March 31, 2020
|
15,059
|
$
|
151
|
$
|
89,756
|
$
|
182,785
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
241,064
|
$
|
1,240
|
$
|
242,304
|
||||||||||||||||||
Issuance of restricted stock, net of cancellations
|
(1
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax
|
-
|
-
|
-
|
2,466
|
-
|
-
|
2,466
|
-
|
2,466
|
|||||||||||||||||||||||||||
Compensation expense - equity-based awards
|
-
|
-
|
1,502
|
-
|
-
|
-
|
1,502
|
-
|
1,502
|
|||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,313
|
)
|
(1,313
|
)
|
|||||||||||||||||||||||||
Other
|
-
|
-
|
-
|
(10
|
)
|
-
|
-
|
(10
|
)
|
(28
|
)
|
(38
|
)
|
|||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,535
|
1,535
|
|||||||||||||||||||||||||||
Net income attributable to USPH shareholders
|
-
|
-
|
-
|
10,232
|
-
|
-
|
10,232
|
-
|
10,232
|
|||||||||||||||||||||||||||
Balance June 30, 2020
|
15,058
|
$
|
151
|
$
|
91,258
|
$
|
195,473
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
255,254
|
$
|
1,434
|
$
|
256,688
|
U.S.Physical Therapy, Inc.
|
||||||||||||||||||||||||||||||||||||
|
Common Stock
|
Additional
|
Retained
|
Treasury Stock
|
Total Shareholders’
|
Non-Controlling
|
||||||||||||||||||||||||||||||
For the six months ended June 30, 2020
|
Shares
|
Amount
|
Paid-In Capital
|
Earnings
|
Shares
|
Amount
|
Equity
|
Interests
|
Total
|
|||||||||||||||||||||||||||
Balance December 31, 2019
|
14,989
|
$
|
150
|
$
|
87,383
|
$
|
184,352
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
240,257
|
$
|
1,444
|
$
|
241,701
|
||||||||||||||||||
Issuance of restricted stock, net of cancellations
|
69
|
1
|
-
|
-
|
-
|
-
|
1
|
-
|
1
|
|||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax
|
-
|
-
|
-
|
4,036
|
-
|
-
|
4,036
|
-
|
4,036
|
|||||||||||||||||||||||||||
Compensation expense - equity-based awards
|
-
|
-
|
3,389
|
-
|
-
|
-
|
3,389
|
-
|
3,389
|
|||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans
|
-
|
-
|
486
|
-
|
-
|
-
|
486
|
-
|
486
|
|||||||||||||||||||||||||||
Dividends paid to USPT shareholders
|
-
|
-
|
-
|
(4,110
|
)
|
-
|
-
|
(4,110
|
)
|
-
|
(4,110
|
)
|
||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,043
|
)
|
(2,043
|
)
|
|||||||||||||||||||||||||
Other
|
-
|
-
|
-
|
(53
|
)
|
-
|
-
|
(53
|
)
|
(28
|
)
|
(81
|
)
|
|||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,061
|
2,061
|
|||||||||||||||||||||||||||
Net income attributable to USPH shareholders
|
-
|
-
|
-
|
11,248
|
-
|
-
|
11,248
|
-
|
11,248
|
|||||||||||||||||||||||||||
Balance June 30, 2020
|
15,058
|
$
|
151
|
$
|
91,258
|
$
|
195,473
|
(2,215
|
)
|
$
|
(31,628
|
)
|
$
|
255,254
|
$
|
1,434
|
$
|
256,688
|
• |
The CARES Act allowed for qualified healthcare providers to receive advanced payments under the existing Medicare Accelerated and Advance Payment Program (“MAAPP Funds”) during the COVID-19 pandemic. Under this program, healthcare providers could choose to receive advanced payments for future Medicare services provided. The Company applied for and received approval from Centers for Medicare & Medicaid Services (“CMS”) in April 2020. The Company recorded these payments as a liability; however, during the first quarter of 2021, the Company repaid the MAAPP Funds of $14.1 million rather than applying them to future services performed.
|
• |
The Company elected to defer depositing the employer’s share of Social Security taxes for payments due from March 27, 2020 through December 31, 2020, interest-free and penalty-free. As of June 30, 2021 included in accrued liabilities is $4.1 million and in other long-term liabilities is $4.2 million related to these deferred payments.
|
• |
The CARES Act provided additional waivers, reimbursement, grants and other funds to assist health care providers during the COVID-19 pandemic, including $100.0 billion in appropriations for the Public Health and Social Services Emergency Fund, also referred to as the Provider Relief Fund, to be used for preventing, preparing, and responding to the coronavirus, and for reimbursing eligible health care providers for lost revenues and health care related expenses that are attributable to COVID-19. In 2020, the Company’s consolidated subsidiaries received approximately $13.5 million in payments under the CARES Act (“Relief Funds”). In accordance with GAAP, these payments were recorded as Other income – Relief Funds. These funds are not required to be repaid upon attestation and compliance with certain terms and conditions, which could change materially based on evolving grant compliance provisions and guidance provided by the U.S. Department of Health and Human Services. Currently, the Company can attest to and comply with the terms and conditions. The Company will continue to monitor the evolving guidelines and may record adjustments as additional information is released. There were no Relief Funds received in the six months ended June 30, 2021.
|
Cash paid, net of cash acquired
|
$
|
20,401
|
||
Seller note
|
550
|
|||
Payable
|
1,000
|
|||
Total consideration
|
$
|
21,951
|
||
Estimated fair value of net tangible assets acquired:
|
||||
Total current assets
|
$
|
476
|
||
Total non-current assets
|
505
|
|||
Total liabilities
|
(1,159
|
)
|
||
Net tangible assets acquired
|
$
|
(178
|
)
|
|
Referral relationships
|
3,249
|
|||
Non-compete
|
495
|
|||
Tradename
|
1,290
|
|||
Goodwill
|
27,814
|
|||
Fair value of non-controlling interest (classified as redeemable non-controlling interests)
|
(10,719
|
)
|
||
$
|
21,951
|
Cash paid, net of cash acquired
|
$
|
23,912
|
||
Seller note
|
1,121
|
|||
Total consideration
|
$
|
25,033
|
||
Estimated fair value of net tangible assets acquired:
|
||||
Total current assets
|
$
|
1,271
|
||
Total non-current assets
|
196
|
|||
Total liabilities
|
(555
|
)
|
||
Net tangible assets acquired
|
$
|
912
|
||
Referral relationships
|
4,497
|
|||
Non-compete
|
522
|
|||
Tradename
|
1,557
|
|||
Goodwill
|
28,843
|
|||
Fair value of non-controlling interest (classified as redeemable non-controlling interests)
|
(11,298
|
)
|
||
$
|
25,033
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
|||||||||||||
Net patient revenues
|
$
|
113,238
|
$
|
72,279
|
$
|
212,492
|
$
|
172,405
|
||||||||
Management contract revenues
|
2,739
|
1,592
|
5,297
|
3,740
|
||||||||||||
Other revenues
|
918
|
328
|
1,464
|
895
|
||||||||||||
Physical therapy operations
|
$
|
116,895
|
$
|
74,199
|
$
|
219,253
|
$
|
177,040
|
||||||||
Industrial injury prevention services revenues
|
10,033
|
9,658
|
20,043
|
19,534
|
||||||||||||
$
|
126,928
|
$
|
83,857
|
$
|
239,296
|
$
|
196,574
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
|||||||||||||
Computation of earnings per share - USPH shareholders:
|
||||||||||||||||
Net income attributable to USPH shareholders
|
$
|
12,436
|
$
|
10,232
|
$
|
20,609
|
$
|
11,248
|
||||||||
(Charges) credit to retained earnings:
|
||||||||||||||||
Revaluation of redeemable non-controlling interest
|
(2,549
|
)
|
3,344
|
(9,819
|
)
|
5,473
|
||||||||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively
|
651
|
(878
|
)
|
2,508
|
(1,437
|
)
|
||||||||||
$
|
10,538
|
$
|
12,698
|
$
|
13,298
|
$
|
15,284
|
|||||||||
Earnings per share (basic and diluted)
|
$
|
0.82
|
$
|
0.99
|
$
|
1.03
|
$
|
1.19
|
||||||||
Shares used in computation:
|
||||||||||||||||
Basic and diluted earnings per share - weighted-average shares
|
12,902
|
12,843
|
12,886
|
12,820
|
1. |
Prior to the Acquisition, the Therapy Practice exists as a separate legal entity (the “Seller Entity”). The Seller Entity is owned by one or more individuals (the “Selling Shareholders”) most of whom are physical therapists that work in the Therapy Practice and provide physical therapy services to patients.
|
2. |
In conjunction with the Acquisition, the Seller Entity contributes the Therapy Practice into a newly-formed limited partnership (“NewCo”), in exchange for one hundred percent (100%) of the limited and general partnership interests in NewCo. Therefore, in this step, NewCo becomes a wholly-owned subsidiary of the Seller Entity.
|
3. |
The Company enters into an agreement (the “Purchase Agreement”) to acquire from the Seller Entity a majority (ranges from 50% to 90%) of the limited partnership interest and in all cases 100% of the general partnership interest in NewCo. The Company does not purchase 100% of the limited partnership interest because the Selling Shareholders, through the Seller Entity, want to maintain an ownership percentage. The consideration for the Acquisition is primarily payable in the form of cash at closing and a small, two-year note in lieu of an escrow (the “Purchase Price”). The Purchase Agreement does not contain any future earn-out or other contingent consideration that is payable to the Seller Entity or the Selling Shareholders.
|
4. |
The Company and the Seller Entity also execute a partnership agreement (the “Partnership Agreement”) for NewCo that sets forth the rights and obligations of the limited and general partners of NewCo. After the Acquisition, the Company is the general partner of NewCo.
|
5. |
As noted above, the Company does not purchase 100% of the limited partnership interests in NewCo and the Seller Entity retains a portion of the limited partnership interest in NewCo (“Seller Entity Interest”).
|
6. |
In most cases, some or all of the Selling Shareholders enter into an employment agreement (the “Employment Agreement”) with NewCo with an initial term that ranges from three to five years (the “Employment Term”), with automatic one-year renewals, unless employment is terminated prior to the end of the Employment Term. As a result, a Selling Shareholder becomes an employee (“Employed Selling Shareholder”) of NewCo. The employment of an Employed Selling Shareholder can be terminated by the Employed Selling Shareholder or NewCo, with or without cause, at any time. In a few situations, a Selling Shareholder does not become employed by NewCo and is not involved with NewCo following the closing; in those situations, such Selling Shareholders sell their entire ownership interest in the Seller Entity as of the closing of the Acquisition.
|
7. |
The compensation of each Employed Selling Shareholder is specified in the Employment Agreement and is customary and commensurate with his or her responsibilities based on other employees in similar capacities within NewCo, the Company and the industry.
|
8. |
The Company and the Selling Shareholder (including both Employed Selling Shareholders and Selling Shareholders not employed by NewCo) execute a non-compete agreement (the “Non-Compete Agreement”) which restricts the Selling Shareholder from engaging in competing business activities for a specified period of time (the “Non-Compete Term”). A Non-Compete Agreement is executed with the Selling Shareholders in all cases. That is, even if the Selling Shareholder does not become an Employed Selling Shareholder, the Selling Shareholder is restricted from engaging in a competing business during the Non-Compete Term.
|
9. |
The Non-Compete Term commences as of the date of the Acquisition and expires on the later of :
|
a. |
Two years after the date an Employed Selling Shareholders’ employment is terminated (if the Selling Shareholder becomes an Employed Selling Shareholder) or
|
b. |
Five to six years from the date of the Acquisition, as defined in the Non-Compete Agreement, regardless of whether the Selling Shareholder is employed by NewCo.
|
10. |
The Non-Compete Agreement applies to a restricted region which is defined as a 15-mile radius from the Therapy Practice. That is, an Employed Selling Shareholder is permitted to engage in competing businesses or activities outside the 15-mile radius (after such Employed Selling Shareholder no longer is employed by NewCo) and a Selling Shareholder who is not employed by NewCo immediately is permitted to engage in the competing business or activities outside the 15-mile radius.
|
1. |
Put Right
|
a. |
In the event that any Selling Shareholder’s employment is terminated under certain circumstances prior to a specified date (the “Specified Date”), the Seller Entity thereafter may have an irrevocable right to cause the Company to purchase from Seller Entity the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest at the purchase price described in “3” below.
|
b. |
In the event that any Selling Shareholder is not employed by NewCo as of the Specified Date and the Company has not exercised its Call Right with respect to the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest, Seller Entity thereafter shall have the Put Right to cause the Company to purchase from Seller Entity the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest at the purchase price described in “3” below.
|
c. |
In the event that any Selling Shareholder’s employment with NewCo is terminated for any reason on or after the Specified Date, the Seller Entity shall have the Put Right, and upon the exercise of the Put Right, the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest shall be redeemed by the Company at the purchase price described in “3” below.
|
2. |
Call Right
|
a. |
If any Selling Shareholder’s employment by NewCo is terminated prior to the Specified Date, the Company thereafter shall have an irrevocable right to purchase from Seller Entity the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest, in each case at the purchase price described in “3” below.
|
b. |
In the event that any Selling Shareholder’s employment with NewCo is terminated for any reason on or after Specified Date, the Company shall have the Call Right, and upon the exercise of the Call Right, the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest shall be redeemed by the Company at the purchase price described in “3” below.
|
3. |
For the Put Right and the Call Right, the purchase price is derived from a formula based on a specified multiple of NewCo’s trailing twelve months of earnings before interest, taxes, depreciation, amortization, and the Company’s internal management fee, plus an Allocable Percentage of any undistributed earnings of NewCo (the “Redemption Amount”). NewCo’s earnings are distributed monthly based on available cash within NewCo.; Therefore, the undistributed earnings amount is small, if any.
|
4. |
The Purchase Price for the initial equity interest purchased by the Company is, in almost all cases, also based on the same specified multiple of the trailing twelve-month earnings that is used in the Put Right and the Call Right noted above.
|
5. |
The Put Right and the Call Right do not have an expiration date, and the Seller Entity Interest is not required to be purchased by the Company or sold by the Seller Entity unless either the Put Right or the Call Right is exercised.
|
6. |
The Put Right and the Call Right never apply to Selling Shareholders who do not become employed by NewCo, since the Company requires that such Selling Shareholders sell their entire ownership interest in the Seller Entity at the closing of the Acquisition.
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
|||||||||||||
Beginning balance
|
$
|
138,924
|
$
|
140,498
|
$
|
132,340
|
$
|
137,750
|
||||||||
Operating results allocated to redeemable non-controlling interest partners
|
3,611
|
2,996
|
6,064
|
4,792
|
||||||||||||
Distributions to redeemable non-controlling interest partners
|
(2,622
|
)
|
(2,054
|
)
|
(6,216
|
)
|
(3,665
|
)
|
||||||||
Changes in the fair value of redeemable non-controlling interest
|
2,549
|
(3,344
|
)
|
9,819
|
(5,473
|
)
|
||||||||||
Purchases of redeemable non-controlling interest
|
(4,707
|
)
|
(1,372
|
)
|
(9,536
|
)
|
(3,224
|
)
|
||||||||
Acquired interest
|
5,556
|
-
|
10,719
|
6,471
|
||||||||||||
Sales of redeemable non-controlling interest - temporary equity
|
-
|
564
|
319
|
564
|
||||||||||||
Notes receivable related to sales of redeemable non-controlling interest - temporary equity
|
-
|
(545
|
)
|
(287
|
)
|
(545
|
)
|
|||||||||
Adjustments in notes receivable related to the the sales of redeemable non-controlling interest - temporary equity
|
26
|
(15
|
)
|
115
|
58
|
|||||||||||
Ending balance
|
$
|
143,337
|
$
|
136,728
|
$
|
143,337
|
$
|
136,728
|
|
June 30, 2021
|
June 30, 2020
|
||||||
Contractual time period has lapsed but holder's employment has not been terminated
|
$
|
73,915
|
$
|
72,815
|
||||
Contractual time period has not lapsed and holder's employment has not been terminated
|
69,422
|
63,913
|
||||||
Holder's employment has terminated and contractual time period has expired
|
-
|
-
|
||||||
Holder's employment has terminated and contractual time period has not expired
|
-
|
-
|
||||||
$
|
143,337
|
$
|
136,728
|
|
Six Months Ended
|
Year Ended
|
||||||
June 30, 2021
|
December 31, 2020
|
|||||||
Beginning balance
|
$
|
345,646
|
$
|
317,676
|
||||
Goodwill acquired
|
27,814
|
28,540
|
||||||
Goodwill derecognition (write-off) related to closed clinics
|
-
|
(1,859
|
)
|
|||||
Goodwill adjustments for purchase price allocation of businesses acquired in prior year
|
427
|
1,289
|
||||||
Ending balance
|
$
|
373,887
|
$
|
345,646
|
|
June 30, 2021
|
December 31, 2020
|
||||||
Tradenames
|
$
|
32,836
|
$
|
32,317
|
||||
Referral relationships, net of accumulated amortization of $16,082 and $14,522, respectively
|
24,707
|
22,119
|
||||||
Non-compete agreements, net of accumulated amortization of $6,170 and $5,993, respectively
|
1,673
|
1,844
|
||||||
$
|
59,216
|
$
|
56,280
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
|||||||||||||
Referral relationships
|
$
|
778
|
$
|
836
|
$
|
1,561
|
$
|
1,449
|
||||||||
Non-compete agreements
|
138
|
87
|
177
|
264
|
||||||||||||
$
|
916
|
$
|
923
|
$
|
1,738
|
$
|
1,713
|
Referral Relationships
|
Non-Compete Agreements
|
||||||
Years
|
Annual Amount
|
Years
|
Annual Amount
|
||||
Ending December 31,
|
Ending December 31,
|
||||||
2021 (excluding the six months ended June 30, 2021)
|
$
|
1,626
|
2021 (excluding the six months ended June 30, 2021)
|
$
|
281
|
||
2022
|
$
|
3,203
|
2022
|
$
|
406
|
||
2023
|
$
|
3,096
|
2023
|
$
|
336
|
||
2024
|
$
|
2,932
|
2024
|
$
|
279
|
||
2025
|
$
|
2,788
|
2025
|
$
|
213
|
||
Thereafter
|
$
|
11,062
|
Thereafter
|
$
|
158
|
|
June 30, 2021
|
December 31, 2020
|
||||||
Salaries and related costs
|
$
|
24,378
|
$
|
24,646
|
||||
Credit balances due to patients and payors
|
5,638
|
5,756
|
||||||
Group health insurance claims
|
2,316
|
2,113
|
||||||
Closure costs
|
844
|
1,333
|
||||||
Federal income taxes payable
|
4,547
|
5,715
|
||||||
MAAPP funds payable
|
-
|
14,054
|
||||||
Deferred employer payroll taxes - CARES ACT
|
4,547
|
4,170
|
||||||
Other
|
2,450
|
1,959
|
||||||
Total
|
$
|
44,720
|
$
|
59,746
|
|
June 30, 2021
|
December 31, 2020
|
||||||
Credit Agreement average effective interest rate of 2.6% for both June 30, 2021 and December 31, 2020, (inclusive of unused fee)
|
$
|
38,000
|
$
|
16,000
|
||||
Various notes payable with $1,017 plus accrued interest due in the next year, interest accrues in the range of 3.25% through 5.50% per annum
|
1,838
|
5,495
|
||||||
$
|
39,838
|
$
|
21,495
|
|||||
Less current portion
|
(1,017
|
)
|
(4,899
|
)
|
||||
Long term portion
|
$
|
38,821
|
$
|
16,596
|
During the twelve months ended June 30, 2022
|
$
|
1,017
|
||
During the twelve months ended June 30, 2023
|
821
|
|||
During the twelve months ended June 30, 2026
|
38,000
|
|||
$
|
39,838
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
|||||||||||||
Operating lease cost
|
$
|
7,895
|
$
|
7,815
|
$
|
15,624
|
$
|
15,627
|
||||||||
Short-term lease cost
|
361
|
215
|
729
|
509
|
||||||||||||
Variable lease cost
|
1,628
|
1,514
|
3,239
|
3,046
|
||||||||||||
Total lease cost *
|
$
|
9,884
|
$
|
9,544
|
$
|
19,592
|
$
|
19,182
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
|||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities (in thousands)
|
$
|
8,258
|
$
|
6,555
|
$
|
16,370
|
$
|
14,345
|
||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands)
|
$
|
12,976
|
$
|
7,535
|
$
|
20,873
|
$
|
19,075
|
Fiscal Year
|
Amount
|
|||
2021 (excluding the six months ended June 30, 2021)
|
$
|
15,765
|
||
2022
|
28,048
|
|||
2023
|
22,301
|
|||
2024
|
15,724
|
|||
2025
|
9,460
|
|||
2026 and therafter
|
9,374
|
|||
Total lease payments
|
$
|
100,672
|
||
Less: imputed interest
|
5,925
|
|||
Total operating lease liabilities
|
$
|
94,747
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2021
|
June 30, 2020
|
June 30, 2021
|
June 30, 2020
|
|||||||||||||
Weighted-average remaining lease term - Operating leases
|
4.11 Years
|
4.21 Years
|
4.11 Years
|
4.21 Years
|
||||||||||||
Weighted-average discount rate - Operating leases
|
3.0
|
%
|
3.2
|
%
|
3.0
|
%
|
3.2
|
%
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Net operating revenues:
|
||||||||||||||||
Physical therapy operations
|
$
|
116,895
|
$
|
74,199
|
$
|
219,253
|
$
|
177,040
|
||||||||
Industrial injury prevention services
|
10,033
|
9,658
|
20,043
|
19,534
|
||||||||||||
Total Company
|
$
|
126,928
|
$
|
83,857
|
$
|
239,296
|
$
|
196,574
|
||||||||
|
||||||||||||||||
Gross profit:
|
||||||||||||||||
Physical therapy operations (excluding closure costs)
|
$
|
31,739
|
$
|
16,199
|
$
|
54,950
|
$
|
33,978
|
||||||||
Industrial injury prevention services
|
2,543
|
3,179
|
5,265
|
4,843
|
||||||||||||
|
$
|
34,282
|
$
|
19,378
|
$
|
60,215
|
$
|
38,821
|
||||||||
Physical therapy operations - closure costs
|
(22
|
)
|
94
|
15
|
3,846
|
|||||||||||
Gross profit
|
$
|
34,304
|
$
|
19,284
|
$
|
60,200
|
$
|
34,975
|
||||||||
|
||||||||||||||||
Total Assets:
|
||||||||||||||||
Physical therapy operations
|
$
|
578,985
|
$
|
534,238
|
||||||||||||
Industrial injury prevention services
|
43,973
|
50,780
|
||||||||||||||
Total Company
|
$
|
622,958
|
$
|
585,018
|
Item 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
• |
The CARES Act allowed for qualified healthcare providers to receive advanced payments under the Medicare Accelerated and Advance Payment Program (“MAAPP Funds”) during the COVID-19 pandemic. Under this program, healthcare providers could choose to receive advanced payments for future Medicare services provided. We applied for and received approval from Centers for Medicare & Medicaid Services (“CMS”) in April 2020. We recorded the $14.1 million in advance payments received as a liability. During the 2021 First Quarter, we repaid the MAAPP Funds of $14.1 million rather than applying them to future services performed.
|
• |
We elected to defer depositing the employer’s share of Social Security taxes for payments due from March 27, 2020 through December 31, 2020, interest-free and penalty-free. As of June 30, 2021, included in each of accrued liabilities was $4.1 million and in other long-term liabilities is $4.2 million related to these deferred payments.
|
• |
The CARES Act provided additional waivers, reimbursement, grants and other funds to assist health care providers during the COVID-19 pandemic, including $100.0 billion in appropriations for the Public Health and Social Services Emergency Fund, also referred to as the Provider Relief Fund, to be used for preventing, preparing, and responding to the coronavirus, and for reimbursing eligible health care providers for lost revenues and health care related expenses that are attributable to COVID-19. Through December 31, 2020, our consolidated subsidiaries received approximately $13.5 million of payments under the CARES Act (“Relief Funds”). Under the our accounting policy, these payments have been recorded as Other income – Relief Funds. These funds are not required to be repaid upon attestation and compliance with certain terms and conditions, which could change materially based on evolving grant compliance provisions and guidance provided by the U.S. Department of Health and Human Services. Currently, we can attest and comply with the terms and conditions. We will continue to monitor the evolving guidelines and may record adjustments as additional information is released. There were no Relief Funds received in the six months ended June 30, 2021.
|
|
Three Months Ended June 30,
|
|||||||||||
2021
|
2020
|
2019
|
||||||||||
Computation of earnings per share - USPH shareholders:
|
||||||||||||
Net income attributable to USPH shareholders
|
$
|
12,436
|
$
|
10,232
|
$
|
14,620
|
||||||
Credit (charges) to retained earnings:
|
||||||||||||
Revaluation of redeemable non-controlling interest
|
(2,549
|
)
|
3,344
|
(5,169
|
)
|
|||||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively
|
651
|
(878
|
)
|
1,356
|
||||||||
$
|
10,538
|
$
|
12,698
|
$
|
10,807
|
|||||||
Earnings per share (basic and diluted)
|
$
|
0.82
|
$
|
0.99
|
$
|
0.85
|
||||||
Adjustments:
|
||||||||||||
Closure costs
|
(22
|
)
|
94
|
-
|
||||||||
Expenses related to CFO transition
|
-
|
-
|
-
|
|||||||||
Gain on sale of partnership interest and clinics
|
-
|
(1,073
|
)
|
(5,823
|
)
|
|||||||
Relief Funds
|
-
|
(7,958
|
)
|
-
|
||||||||
Allocation to non-controlling interest
|
-
|
1,900
|
-
|
|||||||||
Revaluation of redeemable non-controlling interest
|
2,549
|
(3,344
|
)
|
5,169
|
||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively
|
(651
|
)
|
2,725
|
172
|
||||||||
Operating Results (excluding Relief Funds)
|
$
|
12,414
|
$
|
5,042
|
$
|
10,325
|
||||||
Relief Funds
|
-
|
7,958
|
-
|
|||||||||
Allocation to non-controlling interest
|
-
|
(1,900
|
)
|
-
|
||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively
|
-
|
(1,590
|
)
|
-
|
||||||||
Operating Results (including Relief Funds)
|
$
|
12,414
|
$
|
9,510
|
$
|
10,325
|
||||||
Basic and diluted Operating Results (without Relief Funds) per share
|
$
|
0.96
|
$
|
0.39
|
$
|
0.81
|
||||||
Basic and diluted Operating Results (including Relief Funds) per share
|
$
|
0.96
|
$
|
0.74
|
$
|
0.81
|
||||||
Shares used in computation - basic and diluted
|
12,902
|
12,843
|
12,767
|
|
Six Months Ended June 30,
|
|||||||||||
2021
|
2020
|
2019
|
||||||||||
Computation of earnings per share - USPH shareholders:
|
||||||||||||
Net income attributable to USPH shareholders
|
$
|
20,609
|
$
|
11,248
|
$
|
23,063
|
||||||
Credit (charges) to retained earnings:
|
||||||||||||
Revaluation of redeemable non-controlling interest
|
(9,819
|
)
|
5,473
|
(9,830
|
)
|
|||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively
|
2,508
|
(1,437
|
)
|
2,580
|
||||||||
$
|
13,298
|
$
|
15,284
|
$
|
15,813
|
|||||||
Earnings per share (basic and diluted)
|
$
|
1.03
|
$
|
1.19
|
$
|
1.24
|
||||||
Adjustments:
|
||||||||||||
Closure costs
|
15
|
3,846
|
-
|
|||||||||
Expenses related to CFO transition
|
-
|
133
|
-
|
|||||||||
Gain on sale of partnership interest and clinics
|
-
|
(1,073
|
)
|
(5,823
|
)
|
|||||||
Relief Funds
|
-
|
(7,958
|
)
|
-
|
||||||||
Allocation to non-controlling interest
|
-
|
1,900
|
-
|
|||||||||
Revaluation of redeemable non-controlling interest
|
9,819
|
(5,473
|
)
|
9,830
|
||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively
|
(2,508
|
)
|
2,264
|
(1,052
|
)
|
|||||||
Operating Results (excluding Relief Funds)
|
$
|
20,624
|
$
|
8,923
|
$
|
18,768
|
||||||
Relief Funds
|
-
|
7,958
|
-
|
|||||||||
Allocation to non-controlling interest
|
-
|
(1,900
|
)
|
-
|
||||||||
Tax effect at statutory rate (federal and state) of 25.55%, 26.25% and 26.25%, respectively
|
-
|
(1,590
|
)
|
-
|
||||||||
Operating Results (including Relief Funds)
|
$
|
20,624
|
$
|
13,391
|
$
|
18,768
|
||||||
Basic and diluted Operating Results (without Relief Funds) per share
|
$
|
1.60
|
$
|
0.70
|
$
|
1.47
|
||||||
Basic and diluted Operating Results (including Relief Funds) per share
|
$
|
1.60
|
$
|
1.04
|
$
|
1.47
|
||||||
Shares used in computation - basic and diluted
|
12,886
|
12,820
|
12,738
|
|
Three Months Ended June 30,
|
|||||||
2021
|
2020
|
|||||||
Net operating revenues:
|
||||||||
Physical therapy operations
|
$
|
116,895
|
$
|
74,199
|
||||
Industrial injury prevention services
|
10,033
|
9,658
|
||||||
Total Company
|
$
|
126,928
|
$
|
83,857
|
||||
Gross profit:
|
||||||||
Physical therapy operations (excluding closure costs)
|
$
|
31,739
|
$
|
16,199
|
||||
Industrial injury prevention services
|
2,543
|
3,179
|
||||||
$
|
34,282
|
$
|
19,378
|
|||||
Physical therapy operations - closure costs
|
(22
|
)
|
94
|
|||||
Gross profit
|
$
|
34,304
|
$
|
19,284
|
||||
Total Assets:
|
||||||||
Physical therapy operations
|
$
|
578,888
|
$
|
534,238
|
||||
Industrial injury prevention services
|
44,070
|
50,780
|
||||||
Total Company
|
$
|
622,958
|
$
|
585,018
|
|
Three Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Revenue related to Mature Clinics
|
$
|
105,223
|
$
|
69,567
|
||||
Revenue related to 2021 Clinic Additions
|
2,458
|
-
|
||||||
Revenue related to 2020 Clinic Additions
|
5,531
|
1,952
|
||||||
Revenue from clinics sold or closed in 2021
|
24
|
102
|
||||||
Revenue from clinics sold or closed in 2020
|
2
|
658
|
||||||
Net patient revenue from physical therapy operations.
|
113,238
|
72,279
|
||||||
Other revenue
|
918
|
328
|
||||||
Physical therapy operations
|
$
|
114,156
|
$
|
72,607
|
||||
Management contract revenue
|
2,739
|
1,592
|
||||||
Industrial injury prevention services
|
10,033
|
9,658
|
||||||
Total Revenue
|
$
|
126,928
|
$
|
83,857
|
|
Three Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Operating costs related to Mature Clinics
|
$
|
75,988
|
$
|
53,767
|
||||
Operating costs related to 2021 Clinic Additions
|
2,019
|
-
|
||||||
Operating costs related to 2020 Clinic Additions
|
4,934
|
1,513
|
||||||
Operating costs related to clinics sold or closed in 2021
|
(2
|
)
|
132
|
|||||
Operating costs related to clinics sold or closed in 2020
|
14
|
1,425
|
||||||
Physical therapy operations
|
$
|
82,953
|
$
|
56,837
|
||||
Physical therapy management contracts
|
2,202
|
1,163
|
||||||
Industrial injury prevention services
|
7,491
|
6,479
|
||||||
$
|
92,646
|
$
|
64,479
|
|
Three Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Gross profit, excluding closure costs:
|
||||||||
Physical therapy operations
|
$
|
31,203
|
$
|
15,770
|
||||
Management contracts
|
536
|
429
|
||||||
Industrial injury prevention services
|
2,543
|
3,179
|
||||||
Gross profit, excluding closure costs
|
$
|
34,282
|
$
|
19,378
|
||||
Physical therapy operations - closure costs
|
(22
|
)
|
94
|
|||||
Gross profit
|
$
|
34,304
|
$
|
19,284
|
|
Three Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Income before taxes
|
$
|
22,039
|
$
|
18,645
|
||||
Less: net income attributable to non-controlling interests:
|
||||||||
Redeemable non-controlling interests - temporary equity
|
(3,611
|
)
|
(2,996
|
)
|
||||
Non-controlling interests - permanent equity
|
(1,425
|
)
|
(1,535
|
)
|
||||
$
|
(5,036
|
)
|
$
|
(4,531
|
)
|
|||
Income before taxes less net income attributable to non-controlling interests
|
$
|
17,003
|
$
|
14,114
|
||||
Provision for income taxes
|
$
|
4,567
|
$
|
3,882
|
||||
Effective tax rate
|
26.9
|
%
|
27.5
|
%
|
||||
|
Six Months Ended June 30,
|
|||||||
2021
|
2020
|
|||||||
Net operating revenues:
|
||||||||
Physical therapy operations
|
$
|
219,253
|
$
|
177,040
|
||||
Industrial injury prevention services
|
20,043
|
19,534
|
||||||
Total Company
|
$
|
239,296
|
$
|
196,574
|
||||
Gross profit:
|
||||||||
Physical therapy operations (excluding closure costs)
|
$
|
54,950
|
$
|
33,978
|
||||
Industrial injury prevention services
|
5,265
|
4,843
|
||||||
$
|
60,215
|
$
|
38,821
|
|||||
Physical therapy operations - closure costs
|
15
|
3,846
|
||||||
Gross profit
|
$
|
60,200
|
$
|
34,975
|
||||
Total Assets:
|
||||||||
Physical therapy operations
|
$
|
578,985
|
$
|
534,238
|
||||
Industrial injury prevention services
|
43,973
|
50,780
|
||||||
Total Company
|
$
|
622,958
|
$
|
585,018
|
|
For the Six Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Revenue related to Mature Clinics
|
$
|
199,068
|
$
|
165,277
|
||||
Revenue related to 2021 Clinic Additions
|
2,549
|
-
|
||||||
Revenue related to 2020 Clinic Additions
|
10,732
|
2,930
|
||||||
Revenue from clinics sold or closed in 2021
|
141
|
333
|
||||||
Revenue from clinics sold or closed in 2020
|
2
|
3,865
|
||||||
Net patient revenue from physical therapy operations.
|
$
|
212,492
|
$
|
172,405
|
||||
Other revenue
|
1,464
|
895
|
||||||
Physical therapy operations
|
$
|
213,956
|
$
|
173,300
|
||||
Management contract revenue
|
5,297
|
3,740
|
||||||
Industrial injury prevention services
|
20,043
|
19,534
|
||||||
Total Revenue
|
$
|
239,296
|
$
|
196,574
|
|
For the Six Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Operating costs related to Mature Clinics
|
$
|
147,975
|
$
|
132,591
|
||||
Operating costs related to 2021 Clinic Additions
|
2,161
|
-
|
||||||
Operating costs related to 2020 Clinic Additions
|
9,569
|
2,272
|
||||||
Operating costs related to clinics sold or closed in 2021
|
154
|
395
|
||||||
Operating costs related to clinics sold or closed in 2020
|
(4
|
)
|
4,829
|
|||||
Physical therapy operations
|
$
|
159,855
|
$
|
140,087
|
||||
Physical therapy management contracts
|
4,448
|
2,975
|
||||||
Industrial injury prevention services
|
14,778
|
14,691
|
||||||
$
|
179,081
|
$
|
157,753
|
|
For the Six Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Gross profit, excluding closure costs:
|
||||||||
Physical therapy operations
|
$
|
54,101
|
$
|
33,213
|
||||
Management contracts
|
849
|
765
|
||||||
Industrial injury prevention services
|
5,265
|
4,843
|
||||||
Gross profit, excluding closure costs
|
$
|
60,215
|
$
|
38,821
|
||||
Physical therapy operations - closure costs
|
15
|
3,846
|
||||||
Gross profit
|
$
|
60,200
|
$
|
34,975
|
|
Six Months Ended
|
|||||||
June 30, 2021
|
June 30, 2020
|
|||||||
Income before taxes
|
$
|
36,869
|
$
|
22,275
|
||||
Less: net income attributable to non-controlling interests:
|
||||||||
Redeemable non-controlling interests - temporary equity
|
(6,064
|
)
|
(4,792
|
)
|
||||
Non-controlling interests - permanent equity
|
(2,685
|
)
|
(2,061
|
)
|
||||
$
|
(8,749
|
)
|
$
|
(6,853
|
)
|
|||
Income before taxes less net income attributable to non-controlling interests
|
$
|
28,120
|
$
|
15,422
|
||||
Provision for income taxes
|
$
|
7,511
|
$
|
4,174
|
||||
Effective tax rate
|
26.7
|
%
|
27.1
|
%
|
• |
the multiple effects of the impact of public health crises and epidemics/pandemics, such as the novel strain of COVID-19, for which the financial magnitude cannot be currently estimated;
|
• |
changes as the result of government enacted national healthcare reform;
|
• |
changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
|
• |
revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;
|
• |
business and regulatory conditions including federal and state regulations;
|
• |
governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs;
|
• |
compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply;
|
• |
changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients;
|
• |
revenue and earnings expectations;
|
• |
legal actions, which could subject us to increased operating costs and uninsured liabilities;
|
• |
general economic conditions;
|
• |
availability and cost of qualified physical therapists;
|
• |
personnel productivity and retaining key personnel;
|
• |
competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets;
|
• |
competitive environment in the industrial injury prevention business, which could result in the termination or non-renewal of contractual service arrangements and other adverse financial consequences for that service line;
|
• |
acquisitions, and the successful integration of the operations of the acquired businesses;
|
• |
impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non controlling interests (minority interests);
|
• |
maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;
|
• |
a security breach of our or our third party vendors’ information technology systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act;
|
• |
maintaining adequate internal controls;
|
• |
maintaining necessary insurance coverage;
|
• |
availability, terms, and use of capital; and
|
• |
weather and other seasonal factors.
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
ITEM 4. |
CONTROLS AND PROCEDURES.
|
(a) |
Evaluation of Disclosure Controls and Procedures
|
(b) |
Changes in Internal Control over Financial Reporting
|
ITEM 1. |
LEGAL PROCEEDINGS.
|
ITEM 6. |
EXHIBITS.
|
* |
Filed herewith
|
U.S. PHYSICAL THERAPY, INC.
|
||
Date: August 9, 2021
|
By:
|
/s/ CAREY HENDRICKSON
|
Carey Hendrickson
|
||
Chief Financial Officer
|
||
(principal financial and accounting officer)
|
||
By:
|
/s/ JON C. BATES
|
|
Jon C. Bates
|
||
Vice President/Corporate Controller
|
1 Year US Physical Therapy Chart |
1 Month US Physical Therapy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions