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Dec 31, 2020
US Physical Therapy Q4 2020 Earnings Report
USPH reported Q4 2020 results, reinstated dividend, and provided 2021 earnings guidance.
Key Takeaways
U.S. Physical Therapy's Q4 2020 results showed a net revenue of $117.5 million compared to $122.1 million in Q4 2019. Net income attributable to USPH shareholders was $13.0 million, or $0.68 per share, as compared to $7.9 million, or $0.55 per share in Q4 2019. The company reinstated its quarterly dividend and provided 2021 earnings guidance.
Net revenues for Q4 2020 were $117.5 million, compared to $122.1 million for Q4 2019.
Net income attributable to USPH shareholders was $13.0 million, or $0.68 per share, compared to $7.9 million, or $0.55 per share for Q4 2019.
The company's Board of Directors reinstated the quarterly dividend at $0.35 per share.
Management expects the Company’s Operating Results for 2021 to be in the range of $30.9 million to $32.5 million, or $2.40 to $2.52 per share.
US Physical Therapy
US Physical Therapy
Forward Guidance
Management currently expects the Company’s Operating Results for 2021 to be in the range of $30.9 million to $32.5 million, or $2.40 to $2.52 per share.
Positive Outlook
- The team we have can work through and overcome whatever obstacles come our way.
- We also continue to believe that we are well positioned to attract truly excellent partners as we work with grit and strong resolve to grow and scale our Company while we serve those who are entrusted to us with great care.
- The Company’s net cash flow in 2020 was stronger than initially expected and our results improved consistently from May through December, putting our balance sheet in a strong position as we begin 2021.
- We are pleased to reinstate and increase the quarterly dividend
- extend our credit agreement with Bank of America for an additional four years on favorable terms.
Challenges Ahead
- The previously-announced Medicare rate reduction for the full year of 2021 of approximately 3.5%, which is expected to reduce the Company’s 2021 revenue by approximately $4.5 million, or $0.21 per share after non-controlling interest and taxes
- The previously-announced cessation of the 2% sequestration relief applied to all Medicare payments effective April 1, 2021, which is expected to reduce the Company’s 2021 revenue, beginning in the second quarter, by approximately $2.0 million, or $0.10 per share after non-controlling interest and taxes
- Lost revenues related to significant weather-related events in February, primarily in Texas and Tennessee, of approximately $2.8 million, or $0.13 per share after non-controlling interest and taxes
- This earnings range is based on an estimated annual effective tax rate of approximately 27.0%.
- The 2021 earnings guidance range excludes expenses associated with the previously-announced retirement and replacement of one of the Company’s co-Chief Operating Officers.