Q1 2024 US Physical Therapy Inc Earnings Call Transcript
Key Points
- US Physical Therapy Inc reported a revenue growth of 9.8% and a gross profit increase of over 15% for the quarter.
- Record monthly volumes were achieved in February, March, and April, indicating strong demand for services.
- The company successfully negotiated higher reimbursement rates, achieving a non-Medicare rate improvement of 2.8% from Q1 2023.
- US Physical Therapy Inc's injury prevention business saw a revenue increase of almost 10% and a profit increase of 15.1%.
- The company raised its EBITDA guidance for the full year of 2024 by $2.5 million, reflecting confidence in continued strong performance.
- The company faced significant adverse weather events in January 2024, which negatively impacted the comparison to Q1 2023.
- A Medicare rate reduction of approximately 3.5% at the start of the year negatively affected earnings, although it was later adjusted to 1.8%.
- Salaries and related costs were higher in January due to lower operating leverage from reduced volumes.
- Physical therapy operating costs increased by 8.1% compared to the first quarter of the previous year.
- The company experienced a net closure of six facilities, indicating a need to prune less productive or outdated operations.
Good day, and thank you for standing by. Welcome to the US Physical Therapy First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)
I'd now like to turn the call over to Chris Reading, President and CEO. Please go ahead, sir.
Okay. Thanks, David. Good morning, and welcome, everyone, to our US Physical Therapy First Quarter 2024 Earnings Call. With me on the line this morning include Carey Hendrickson, our CFO; Eric Williams, who is our COO East, and Eric will be assuming a larger role in our company as he takes over as President just a few weeks after our Annual Meeting later this month, so we congratulate him on that; Graham Reeve, our COO West; and Jake Martinez, our Senior Vice President, Finance and Accounting.
Before we begin our prepared remarks, I'll ask Jake to cover a brief disclosure statement.
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