The chart below shows how USPH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, USPH sees a +3.45% change in stock price 10 days leading up to the earnings, and a -0.44% change 10 days following the report. On the earnings day itself, the stock moves by -3.44%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Patient Visit Surge: 1. Record Patient Visits: U.S. Physical Therapy reported a 6% increase in patient visits in Q3 2024, achieving an all-time high of 30.1 visits per clinic per day for any third quarter.
Q3 Revenue Increase: 2. Revenue Growth: The company generated $142.2 million in revenue for Q3 2024, marking a 9.3% increase compared to the same quarter last year.
Adjusted EBITDA Growth: 3. Adjusted EBITDA Increase: Adjusted EBITDA rose to $21.1 million in Q3 2024, reflecting a 13.4% increase from $18.6 million in the prior year.
Injury Prevention Revenue Growth: 4. Injury Prevention Business Expansion: Revenue from the injury prevention business grew approximately 30% year-over-year, with operating profit up over 27% in the same period.
Net Rate Increase: 5. Improved Net Rate: The net rate per visit increased to $105.65 in Q3 2024, a 3.2% rise from the previous year, despite a 1.8% Medicare rate reduction.
Negative
Operating Cost Increase: 1. Increased Operating Costs: Operating costs for physical therapy rose to $119.2 million, including $3.4 million in closure costs, reflecting an 8.2% increase from the previous year, driven by the addition of 21 more clinics.
Increasing Salary Expenses: 2. Rising Salary Costs: Salary-related costs per visit increased by 3.5% year-over-year, reaching $62.47, which adds pressure to overall profitability amid rising operational expenses.
Clinic Closures Impact Revenue: 3. Clinic Closures: The company closed 32 clinics during the quarter, indicating a strategic retreat from underperforming markets, which may impact future revenue generation.
Cash Reserves Concerns: 4. Limited Cash Reserves: Following the Metro acquisition, available cash dropped to approximately $15 million, raising concerns about liquidity and the ability to fund future growth initiatives without drawing on credit facilities.
Volume Growth Challenges: 5. Stagnant Volume Growth: Despite record high visit volumes, growth was only about 2.5% year-over-year, suggesting potential challenges in maintaining momentum in patient demand amidst staffing constraints.
U.S. Physical Therapy, Inc. (USPH) Q3 2024 Earnings Call Transcript
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