U.S. Physical Therapy(USPH)2024-05-08 18:13Financial Data and Key Metrics Changes - Revenue for Q1 2024 grew by 9.8%, resulting in a gross profit increase of over 15% [6] - Adjusted EBITDA for Q1 2024 was 18.5 million in the prior year, impacted by a 1.3 million from adverse weather [7] - Operating results per share were 0.59 in Q1 2023, affected by a secondary offering completed in May 2023 [7] - The net rate for Q1 2024 was 0.25 despite the Medicare rate reduction [84] Business Line Data and Key Metrics Changes - Physical therapy revenues reached 110.4 million, an 8.1% increase year-over-year, also due to the additional clinics [8] - The physical therapy margin was 17.9% in Q1 2024, improving to 20.6% for February and March combined [17] Market Data and Key Metrics Changes - Non-Medicare rates improved by 2.8% year-over-year in Q1 2024, and by 5% since Q1 2022 [14] - Workers' compensation revenue increased from 9.3% of total revenue in Q1 2023 to 10% in Q1 2024, reflecting both volume and rate growth [16][72] Company Strategy and Development Direction - The company is focused on increasing reimbursement rates through contract negotiations and expanding its workers' compensation business [84] - Recent acquisitions are expected to broaden exposure to various industries, enhancing sales traction and cross-selling opportunities [14] - The company raised its EBITDA guidance for the full year of 2024 to a range of 87.5 million, reflecting confidence in operational performance [9] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for services despite a challenging start to the year due to adverse weather [13] - The company is optimistic about continued volume growth, with record levels of visits per clinic per day in February, March, and April [13][84] - Management emphasized the importance of staffing as a gating factor for capturing additional volume, with turnover rates at their lowest in years [23][88] Other Important Information - The company has approximately 40 million into acquisitions so far this year [9] - The balance sheet remains strong, with $143 million in debt at a favorable interest rate of 4.7% [40] Q&A Session Summary Question: What is driving the better volume in April? - Management attributed the improved volume to strong clinician performance and effective outreach efforts, noting that staffing remains a challenge [23] Question: Can you provide insight into the revenue growth? - The growth is driven by both adding new clients and expanding services within existing partnerships, particularly in the injury prevention sector [68] Question: What is the outlook for Medicare reimbursement? - Management expressed uncertainty about future Medicare changes but highlighted ongoing efforts to advocate for better reimbursement rates [60] Question: What is the status of M&A activity? - The company is actively pursuing tuck-in acquisitions at reasonable prices and expects to continue strong organic growth [61] Question: How is the company managing staffing challenges? - Management noted improvements in staffing and retention, with a new leader in the recruiting department expected to enhance efforts [88]