U.S. Physical Therapy sees major jumps in income, revenue

U.S. Physical Therapy, a Houston-based outpatient physical therapy operator, reported net revenue climbed roughly 17% in the second quarter from a year ago, as demand grew and the company's average revenue per patient rose. Net income for April through June soared 30% to $6.4 million from $4.9 million during the same period the prior year.

The publicly traded company, which owns, co-owns and manages clinics for treatment of sports injuries, occupational and neurological injuries and orthopedic patients, said its revenue totaled $78.2 million in the second quarter compared with $66.9 million the same three months the year before. Average revenue per patient increased 14 cents as visits increased by about 17%.

Total expenses increased 14% during the three-month period to $56.4 million from $49.3 million during the second quarter of 2013.

The company has 491 clinics across 42 states, including an acquisition of three clinics announced earlier this month and 13 clinics in which U.S. Physical Therapy acquired a 70% stake in April. U.S. Physical Therapy, as of December, wholly owns one-fifth of its clinics; the rest are jointly owned.

The company reduced its debt during the second quarter despite the $11.2 million April acquisition, Larry McAfee, U.S. Physical Therapy's finance chief, said in a release (PDF) announcing the results.

The company raised its earnings guidance for the year to $20 million to $20.9 million from the previously stated $18.8 million to $19.6 million.

For the six months ended in June, the company's net revenue totaled $148 million, up from $129.6 million during the same period the prior year, a 14% increase. Total expenses increased 12.6% during the same period to $109.5 million, compared with $97.2 million for the first half of 2013.

U.S. Physical Therapy's net income for the six-month period totaled $10.7 million, up 23% from $8.6 million the prior year.

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