U.S. Physical Therapy, Inc. · NYSE:USPH
U.S. Physical Therapy — Investor Presentation (May 2016)
25 slides from U.S. Physical Therapy's investor presentation, May 5, 2016
Slide 1: Investor Presentation May 5, 2016
INVESTOR PRESENTATION May 5, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, which involve numerous risks and uncertainties. Included are statements relating to opening of new clinics, availability of personnel and reimbursement environment. The forward-looking statements are based on the Compa
Slide 3: Investment Highlights
Investment Highlights • 512 outpatient physical and occupational therapy clinics Established across 42 states Company • 4th largest owner/operator of clinics • Only publicly-traded, pure play provider • US rehab market > $15B in annual revenue Attractive Market • Highly fragmented; No company with >
Slide 4: National Footprint
National Footprint 512 Clinics in 42 States as of March 31, 2016
Slide 5: Growth Strategy
Growth Strategy Drive organic growth through de novo PT/OT clinic openings, utilize true partnership model Maximize profits of existing facilities by growing patient volume; realize efficiencies through higher clinical productivity Augment organic growth through strategic acquisitions 5
Slide 6: Large and Growing Market Opportunity
Large and Growing Market Opportunity • $15B+ U.S. rehab market with 3-4% projected annual growth • Favorable demographics – physically active, aging and obese population segments • Healthcare delivery shifting towards lower cost, high quality outpatient providers “Demand for physical therapy is proj
Slide 7: Competitive Landscape
Competitive Landscape • Highly fragmented U.S. outpatient rehab market with ~16,000 clinics • No company with >10% market share • USPh ranks third nationally – Select Medical/Physio 1621 Clinics – ATI 600 Clinics – USPh 512 Clinics Note: Owned Clinics 7
Slide 8: Focused Business Model
Focused Business Model • Specialize in trauma, sports, work-related and pre and post surgical cases • Partner with experienced physical therapists – Drive volume via referrals – Augment sales with marketing reps • Historical focus on organic growth via lower cost de novo (start-up) clinics • Strateg
Slide 9: USPH Partnership Advantages
USPH Partnership Advantages Less Administrative More Resources Access to Capital for Accounting Development of Additional HR Burden Clinics Real Estate No Personal Financial Risk Construction Unlimited Earnings Potential Purchasing Full Benefit Package Marketing Ongoing Guidanc
Slide 10: Video Placeholder
Video Placeholder 10 10
Slide 11: New Clinics / Brands 2015
New Clinics / Brands 2015 Physical Theropy: NORTH LAKE Physical Therapy and Rehabilitation OWA et ‘te HIGHLANDS DE YACKSONCLINICS(BY physical therapy Dausexr y THERAPY Physical Therapy Solutions fetion—— 110 ADVANCE PHYSICAL THERAPY REHABILITATION Physical Therapy Momentum Physical Therapy of & Spor
Slide 12: Acquisition Strategy
Acquisition Strategy • Completed 23 clinic group acquisitions since 2005 • Range in size from 3 to 52 clinics • Acquisition criteria: Owner therapists continue to operate clinics and retain significant equity interest Immediately accretive to earnings Further de novo growth opportunities 12
Slide 13: Executive Management
Executive Management • Chris Reading – Chief Executive Officer – Joined USPh as COO in November 2003 – Promoted to CEO and Board in November 2004 – Previously Senior Vice President of Operations with HealthSouth, managed over 200 facilities including OP, ASC, DX Imaging and rehab hospital operations
Slide 14: Diversified Payor Mix
Diversified Payor Mix Percentage of 2016 Net Patient Revenue (Through March 31, 2016) 7% 17% Private Insurance & Managed Care Medicare & Medicaid 51% Workers Comp Other 25% 14
Slide 15: Worker's Comp Push
Worker’s Comp Push • Both internally and through acquisition, USPh has expanded its industrially focused worker’s comp business. • Grown to approximately 20% of Company’s patient revenue • Treat, educate, assess and prevent work related injuries • National approach with local care delivery, 1-800-ce
Slide 16: Strong Cash Flow and Balance Sheet
Strong Cash Flow and Balance Sheet • Both de novo clinics and acquisitions financed primarily through free cash flow • USPH trailing twelve months ended March 2016 adjusted EBITDA of $52.8 million; an increase of 12.9% (1) from the preceding twelve months (1) Adjusted EBITDA is defined as earnings b
Slide 17: Dividend
Dividend • In 2011 initiated quarterly dividend • Increased dividend in 2012, 2013, 2014, 2015 and 2016 • Paid special dividend in December 2012 • Increased dividend in March 2016 by 13% • Dividends do not impact ability to continue to grow internally through de novo clinic development and externall
Slide 18: Average Annual Rate of Return to Shareholders 29.4% Per Year
Average Annual Rate of Return to Shareholders 29.4% Per Year * Current Management Team joined Company in Fall of 2003 and took over in late 2004. Total Cumulative Return through December 31, 2015 including dividends is $44.03. Total Cumlative Return Percentage is 360.6%. Average Annual Return - 29.4
Slide 19: Year Results
Year Results* December 31, 2014 December 31, 2015 Revenue $ 305.1 M $ 331.3 M 8.6% Gross Margin $ 76.2 M $ 78.4 M 2.9% Operating Income $ 45.8 M $ 47.3 M 3.3% Net Income $ 20.9 M $ 22.3 M 6.8% EPS $ 1.71 $ 1.80 5.3% Adjusted EBITDA* $ 46.3 M $ 50.3 M 8.7% *Adjusted EBITDA is defined as earnings befo
Slide 20: First Quarter Results
First Quarter Results Q1 Q1 2015 2016 Revenue $ 77.2 M $ 86.9 M 12.5% Gross Margin $ 16.8 M $ 20.5 M 21.7% Operating Income $ 9.2 M $ 11.5 M 25.1% Net Income $ 4.2 M $ 5.3 M 27.9% EPS $ .34 $ .43 26.5% Adjusted EBITDA $ 10.0M $ 12.5 M 24.6% Adjusted EBITDA is defined as earnings before interest, tax
Slide 21: Summary
Summary Only publicly-traded, pure play operator of rehab clinics Proven business model, driven by organic growth and acquisitions Significant scale with national footprint Large and growing market/favorable demographics Strong cash flow and balance sheet 21
Slide 22: Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA(1) Twelve Months Ended From Continuing Operations December 31 (amounts in 000’s) 2015 2014 Net revenues $ 331,302 $ 305,074 Net Income attributable to U.S. Physical Therapy 22,279 20,853 Depreciation & amortization 7,952 6,740 Interest,
Slide 23: Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA Three Months Ended March 31 (amounts in 000’s) 2016 2015 Net revenues $ 86,908 $ 77,241 Net Income attributable to U.S. Physical Therapy 5,328 4,166 Depreciation & amortization 2,092 1,807 Interest, net (income) / expense 288 257 Equity
Slide 24: Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA Trailing Twelve Months Ended March 31 (amounts in 000’s) 2016 2015 Net revenues $ 340,969 $ 312,548 Net Income attributable to U.S. Physical Therapy 23,441 20,791 Depreciation & amortization 8,237 7,160 Interest, net (income) / expense
Slide 25: NYSE: USPH
USP/ US. PhYSICAL THERAPY, INC. NYSE: USPH
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