U.S. Physical Therapy reports Q2 adjusted EPS 73c, consensus 82c

Reports Q2 revenue $143.5M, consensus $162.32M. Chris Reading, Chief Executive Officer, said, “Physical therapy volumes, net rate and injury prevention growth and profitability were all strong for the quarter and a result of our persistent focus in these areas. While our retention has been good with respect to our team members, the new employees who join our team as a result of turnover are coming in at higher rates. This is especially true of our hourly employees who are more sensitive to escalating prices elsewhere. Additionally, we have a higher than anticipated usage of contract therapists in several markets around the country. We have made significant recent and ongoing investments in people and processes on the recruiting side of our efforts with more work to be done — especially in these more challenging markets. Our teams are working diligently to optimize our ability to address demand while maintaining a close eye on cost and related expense management.”