U.S. Physical Therapy, Inc (USPT) announced its financial results for the third quarter ended September 30, 2022. Earnings, adjusted for non-recurring gains, came to $0.58 per share, beating the Zacks Consensus Estimate of $0.55 per share. Despite the impact labor and inflation-related headwinds had on some financial metrics (net income and adjusted EBITDA), USPT still managed to report strong revenues and improved performance indicators, such as patient visits. USPT also remained active throughout the quarter with several acquisitions announced and completed. The Houston, Texas-based company reported:
- 10.9% increase in total revenue from $125.9 million in Q3:21 to $139.6 million in Q3:22.
- 3.9% increase in net patient revenue from physical therapy operations from 112.3 million in Q3:21 to $116.7 million in Q3:22
- 4% decrease in net income from $10 million in Q3:21 to $9.6 million (4.8% of net revenue) in Q3:22.
- Earnings per diluted share, on a GAAP basis, was $0.72 for the Q3:22, as compared to $0.66 for Q3:21
- 13.4% decrease in adjusted EBITDA from $19.6 million in Q3:21 to $17 million in Q3:22
- 2.8% increase in total patient visits from 1,091,329 in Q3:21 to 1,122,070 in Q3:22.
- The net rate per patient visit was $104.01 in Q3:22, a $1.08 per visit increase from $102.93 in the 2021 Third Quarter and an $0.83 per visit increase from $103.18 for the three months ended June 30, 2022
- U.S. Physical Therapy completed two acquisitions during Q3:22 and announced an additional acquisition that closed subsequent to the end of the third quarter.
Here are some notable quotes from USPT Management:
- “While our third quarter results were impacted by higher labor and other inflation-driven costs, volumes have remained solid, and I am encouraged by some early progress with respect to payer contract negotiations. On the development front, we are very excited to continue to add exceptional practices to our partner-centric portfolio of companies. Our industrial injury prevention business has almost doubled from the same period a year ago and our organic growth in that business has been considerable this year as well.” – Chris Reading, CEO of USPT
- “The cost mitigation efforts we began early in the third quarter are ongoing; however, we expect elevated costs to continue to impact our near-term results. With solid volumes and rates, we expect our full year results to be within our previous guidance ranges for operating results and adjusted EBITDA, but most likely on the low end of our ranges.” – Carey Hendrickson, CFO of USPT
- “We continue to push the reduction of administrative burden. We’re working to ensure that we have an adequate supply of therapists to serve the growing needs of our aging population, replacing unnecessary and excessive pharmaceutical and other more expensive interventions with proven, functionally restoring care.” – Chris Reading
- “The challenges at the moment center around making adjustments to deal with the current inflationary environment, including in our labor costs. And while we are taking steps to making progress and mitigating some of those challenges, we need more time to completely impact [inaudible] a number of key areas, including … in our net rate.” – Chris Reading
