US Physical Therapy Inc. (NYSE:USPH) Q1 2015 Earnings Conference Call - Final Transcript
May 07, 2015 • 10:30 am ET
Good morning. My name is Andrea, and I will be your conference operator today. At this time, I would like to welcome everyone to the US Physical Therapy Q1 2015 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to Mr. Chris Reading, President and Chief Executive Officer. Please go ahead, sir.
Thank you very much. Good morning everyone and welcome to US Physical Therapy's first quarter 2015 earnings call. With me here in Houston, Larry McAfee, our Executive Vice President and Chief Financial Officer; Glenn McDowell, our Chief Operating Officer; Rick Binstein, Vice President and General Counsel; John Bates, our Vice President and Controller.
Before we begin today's call, John will cover a brief disclosure statement. John if you would?
Thanks, Chris. This presentation contains forward-looking statements which involve certain risks and uncertainties. And these forward-looking statements are based on the company's current views and assumptions and the company's actual results can vary materially from those anticipated. Please see the company's filings with the Securities and Exchange Commission for more information.
Thanks, John. Despite a strong start to the year from a referral perspective we certainly were impacted very significantly these first three months by weather in many parts of the country, including the Northeast, Midwest and even the southern areas were particularly hit hard causing patients and not be able to get in all of their therapy due to the extreme conditions. As indicated in the release, we believe we lost approximately 20,000 patient visits in this January through March period. Looking at the prior quarter, ending the year 2014, which was quite a strong quarter for us, our costs remained nearly equivalent, actually slightly less than the quarter despite continued clinic growth and won nine clinic acquisitions.
I feel like we did a solid job during the period with cost control. In the current quarter period we have seen some modest improvement thus far on a net rate per visit up from the prior quarter as well as the prior year. I believe this is due to several factors, including the exceptional growth to some of our larger, highly profitable partnerships, the excellent job our teams are doing across the board with collections and management, and our continued focus on our work comp related programs. The weather impacted volume and caused our margins to drop. However as expected as volume returned, which it has that margins will rebound. Corporate office costs as a percent of revenue was a little under 10%, while we added some key leadership and service related positions in several departments to accommodate our continued growth into our system, maintaining a high level of service and responsiveness to our partners across the country.
Despite the weather-related visit losses, we still had a very respectable same-store volume and revenue improvement, and increases of 3.8% and 4.2% respectively. Last week we announced closing on a very nice acquisition. I am personally very excited about. The team there is excellent and the opportunity