Dublin, May 02, 2025 (GLOBE NEWSWIRE) -- The "U.S. Physical Therapy Clinics: An Industry Analysis" report from Marketdata LLC has been added to ResearchAndMarkets.com's offering. This analysis examines the $53 billion outpatient physical and occupational therapy centers industry. Speech therapy and audiologists are also included. The physical therapy business is highly fragmented, with the 50 largest competitors capturing only 29% of the revenues, which makes it ripe for consolidation. Moderate growth is f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-11151 U.S. PHYSICAL THERAPY, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) (STATE OR OTHER JURISDICTION OF INCORPORATION ...

Financial Data and Key Metrics Changes - In Q4 2024, adjusted EBITDA was $21.8 million, up from $19 million in the prior year, with an adjusted EBITDA margin of 15.2% for both Q4 2024 and Q4 2023 [24][26] - Total revenue for Q4 2024 grew over 32%, with full-year revenue increasing nearly 24% to approximately $97 million [18][29] - The net rate per visit in Q4 2024 was $104.73, a $1.05 increase from the previous year, despite a 1.8% Medicare rate reduction [26][27] Business Line Data and Key Metrics Changes - Physical therapy revenues in Q4 2024 were $153.8 million, a 14.2% increase from the previous year, driven by higher net rates and a 3.1% increase in visits at mature clinics [29][30] - The injury prevention (IIP) segment saw net revenues up 32.1% in Q4 2024, with IIP income up 15.6% year-over-year [31] - The physical therapy margin was 17.9% in Q4 2024, down from 19.5% in Q4 2023, while the IIP margin was 18.5% [30][31] Market Data and Key Metrics Changes - The average daily visits per clinic reached a record high of 31.7% in Q4 2024, benefiting from the closure of underperforming clinics [25] - Workers' compensation mix was at 10% in Q4 2024, slightly down from the previous quarter, but overall revenue from workers' comp increased 19.5% quarter-over-quarter [132] Company Strategy and Development Direction - The company completed seven acquisitions in 2024 and added approximately seventy clinics in Q4 alone, indicating a strong focus on growth through acquisitions [15][16] - The company is piloting AI-driven note systems and virtual staffing technology to improve clinician efficiency and reduce overhead costs [14][30] - The entry into the New York market through the Metro PT acquisition is expected to provide significant growth opportunities [120] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in hiring sufficient therapists due to a competitive environment but noted improvements in recruitment efforts [13][55] - The company expects continued growth in EBITDA for 2025, despite a 2.9% Medicare rate reduction impacting revenue [37] - Management expressed optimism about emerging from a challenging period in the industry stronger than before, with a focus on enhancing reimbursement rates and cash collections [19][28] Other Important Information - The company has a strong balance sheet with $140.6 million in debt and a $175 million revolving credit facility, with only $11 million drawn [35] - The board increased the quarterly dividend rate from $0.45 per share, effective with the first quarter dividend [36] Q&A Session Summary Question: Growth assumptions in guidance considering Medicare rate cut - Management indicated that the closure of underperforming clinics would positively impact 2025, and they expect to continue growing rates despite the Medicare reduction [47][48] Question: Dynamics of recruiting and retention - Management noted improvements in recruitment and retention, with more applicants than in previous years, but acknowledged the competitive nature of the market [53][55] Question: Volume outlook for 2025 - Management expects volume growth in mature clinics to be in the 2-3% range, with ongoing efforts to address staffing challenges [60][61] Question: Impact of technology initiatives on costs - Management anticipates that virtualization and AI-driven note systems will help reduce costs and improve efficiency, though specific impacts are still to be determined [144][146] Question: Experience with Metro and New York market opportunities - Management expressed optimism about growth opportunities in New York and the potential for expanding services, including home-based therapy [120][122] Question: Workers' compensation growth drivers - Management highlighted increased relationships and training as key factors driving growth in the workers' compensation segment, with a focus on expanding agreements [128][131]

Core Viewpoint - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.74 per share, representing an earnings surprise of -12.16% [1][2] Financial Performance - The company posted revenues of $180.45 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 4.33%, compared to $154.8 million in the same quarter last year [2] - Over the last four quarters, U.S. Physical Therapy has surpassed consensus revenue estimates four times, but has only exceeded EPS estimates once [2] Stock Performance - U.S. Physical Therapy shares have declined approximately 0.7% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $171.75 million, and for the current fiscal year, it is $2.93 on revenues of $730.44 million [7] - The estimate revisions trend for U.S. Physical Therapy is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which U.S. Physical Therapy belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - U.S. Physical Therapy reported a net income of $6.6 million for the third quarter of 2024[96]. - Earnings per share for Q3 2024 was $0.39, down from $0.51 in Q3 2023, reflecting a charge of $2.5 million related to the closure of 32 clinics[97]. - Net income for the first nine months of 2024 was $22.2 million, compared to $27.6 million in the same period of 2023, with earnings per share decreasing from $1.72 to $1.32[97]. - Adjusted EBITDA for Q3 2024 was $21.1 million, up from $18.6 million in Q3 2023, indicating a positive trend in operational performance[102]. - Operating results per share for Q3 2024 increased to $0.69 from $0.62 in Q3 2023, demonstrating improved efficiency[102]. - USPH net income for Q3 2024 was $6,628,000, a decline of 28.4% from $9,254,000 in Q3 2023[105]. - Total net revenue for the 2024 Nine Months increased by $40.9 million, or 9.1%, to $490.9 million from $450.0 million for the 2023 Nine Months[117]. - Gross profit for the 2024 Nine Months was $91.4 million, or 18.6% of net revenue, compared to $91.0 million, or 20.2% of net revenue, for the 2023 Nine Months[117]. Operational Metrics - The company managed a total of 700 clinics as of September 30, 2024, including 39 clinics managed under third-party contracts[93]. - The average daily visits per clinic for the third quarter of 2024 were not specified, but the company reported a total of 681 clinics at the beginning of the period[92]. - Average daily visits per clinic increased to 30.1 in Q3 2024, up from 29.7 in Q3 2023[107]. - Total patient visits increased by 74,097, or 6.0%, to 1,317,051 in the 2024 Third Quarter from 1,242,954 in the 2023 Third Quarter[108]. - Patient visits increased by 182,804, or 4.9%, to 3,920,388 in the 2024 Nine Months from 3,737,584 in the 2023 Nine Months[120]. Revenue and Costs - Net patient revenue for Q3 2024 was $139,146,000, an increase of 9.4% compared to $127,243,000 in Q3 2023[105]. - Total operating costs for Q3 2024 were $138,902,000, up 13.8% from $122,078,000 in Q3 2023[105]. - Operating costs for Physical Therapy Operations in Q3 2024 were $119,207,000, an increase of 11.4% from $107,016,000 in Q3 2023[106]. - Operating costs rose by $40.5 million, or 11.3%, to $399.5 million from $359.0 million over the same periods[117]. - Operating costs per visit increased to $86.32 for the 2024 Nine Months from $82.35 for the 2023 Nine Months[121]. Acquisitions and Growth Strategy - The company completed the acquisition of a 50% interest in MSO Metro, LLC for approximately $76.5 million, funded primarily by cash on hand[93]. - The company acquired 100% of an IIP business on October 31, 2023, and a 55% equity interest in an ergonomics software business[90]. - The company aims to continue acquiring outpatient physical therapy practices and expand its IIP sector[93]. - The company completed several acquisitions in 2023, including clinics with varying ownership percentages, contributing to its growth strategy[91]. - On August 31, 2024, the company acquired a 70% equity interest in an eight-clinic practice for approximately $2.0 million, with a maximum contingent consideration of $3.6 million[140]. - The company acquired 100% of Briotix Health Limited Partnership for approximately $24.0 million on April 30, 2024, with a contingent consideration valued at $2.4 million as of September 30, 2024[140]. Financial Position and Cash Flow - Total cash and cash equivalents were $117.0 million as of September 30, 2024, down from $152.8 million as of December 31, 2023[132]. - Cash provided by operating activities was $55.5 million for the nine months ended September 30, 2024, compared to $55.1 million in the same period of 2023[135]. - Cash used in investing activities totaled $54.6 million, primarily for the purchase of interests in businesses and fixed assets[135]. - Cash used in financing activities was $36.8 million, which included $19.9 million in cash dividends paid to shareholders[135]. Tax and Interest Expenses - The provision for income taxes was $2.6 million in the 2024 Third Quarter compared to $3.6 million during the 2023 Third Quarter[114]. - Interest expense decreased to $6.0 million for the nine months ended September 30, 2024, from $7.3 million in the prior year, due to lower outstanding borrowings[127]. - Interest expense decreased by $0.1 million to $2.0 million for the 2024 Third Quarter compared to $2.1 million in the 2023 Third Quarter[114]. Future Outlook - The company plans to continue evaluating its operational strategies and market expansion opportunities to enhance future performance[102]. - The company plans to continue developing new clinics and making acquisitions, funded through cash and financing[133].

Financial Data and Key Metrics Changes - Patient visits increased by 6% in Q3 2024, reaching an all-time high of 30.1 visits per clinic per day [7][8] - Revenue grew by 9.3% to $142.2 million for Q3 2024, with adjusted EBITDA up 13.4% [8][28] - Net rate increased to $105.65 per visit, up from $102.37 in the prior year, marking a 3.2% increase [25][30] - Operating results were $10.4 million, a 12.4% increase over Q3 2023, with adjusted EBITDA margin at 15.5% [28][29] Business Line Data and Key Metrics Changes - The injury prevention business saw revenue growth of approximately 30% compared to Q3 last year, with operating profit up over 27% [12][35] - Physical therapy revenues were $142.7 million, an increase of $12.2 million or 9.3% from the previous year [32] - Physical therapy operating costs were $119.2 million, including $3.4 million in closure costs related to 32 clinics closed during the quarter [33] Market Data and Key Metrics Changes - Workers' compensation revenue increased as a percentage of total revenue, moving from 9.6% in Q3 2023 to 10.4% in Q3 2024 [31] - The payer mix for Q3 2024 was 47% commercial, 33% Medicare, and 10.4% workers' compensation, with Medicaid at approximately 3.5% [75] Company Strategy and Development Direction - The company is focusing on optimizing its portfolio by closing underperforming facilities and investing in high-potential markets [9][10] - The recent acquisition of Metro Physical Therapy is expected to be a significant growth engine, with plans for further integration and expansion [40][49] - The company aims to maximize cash collections and improve revenue cycle management as part of its strategic priorities [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges from Medicare rate pressures and inflation but expressed optimism about future growth driven by strategic initiatives [8][39] - The company expects EBITDA to remain within the previously provided range of $80 million to $85 million, with strong volume trends continuing into Q4 [39][38] - Management highlighted the importance of maintaining a disciplined approach to acquisitions and resource allocation [20][46] Other Important Information - The company closed 32 clinics during the quarter to improve operational metrics and focus on growth initiatives [27] - The balance sheet remains strong, with $140.6 million in debt and a cash balance of $117 million, of which approximately $90 million is available for acquisitions [37][38] Q&A Session Summary Question: Impact of exiting markets and labor initiatives - Management indicated that the flow-through impact of recent changes will be more significant next year, allowing the operations team to focus on growth opportunities [43][44] Question: Consolidation of Metro acquisition - The Metro acquisition is expected to be fully consolidated into the company's metrics, enhancing overall performance [47][48] Question: Guidance for EBITDA and Metro acquisition impact - Management confirmed that the Metro acquisition was included in the EBITDA guidance range of $80 million to $85 million [51][52] Question: Future of workers' compensation revenue - Management expressed optimism about the growth of workers' compensation revenue, noting a significant year-over-year increase [61][62] Question: Pricing and Medicare rate outlook - Management discussed the potential for continued rate increases on the commercial side, despite ongoing Medicare rate pressures [65][70] Question: Payer mix and injury prevention business growth - The injury prevention business is experiencing growth due to both new business and deeper engagement with existing customers [76][78] Question: Political landscape and Medicare reimbursement - Management acknowledged the uncertainty in predicting future Medicare reimbursement changes but expressed hope for a more favorable outcome [85][88]

U.S. Physical Therapy (USPH) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.47%. A quarter ago, it was expected that this physician staffing services company would post earnings of $0.81 per share when it actually produced earnings of $0.73, delivering a surprise of -9.88%.Over the ...

Financial Performance - Net income attributable to shareholders for Q2 2024 was $7.5 million, down from $10.9 million in Q2 2023, representing a decrease of approximately 31.1%[97] - Earnings per share for Q2 2024 was $0.47, compared to $0.64 in Q2 2023, reflecting a decline of about 26.6%[98] - For the first six months of 2024, net income attributable to shareholders was $15.6 million, down from $18.3 million in the same period of 2023, a decrease of approximately 14.8%[97] - Earnings per share for the first six months of 2024 was $0.93, compared to $1.22 for the same period in 2023, a decline of about 23.9%[98] - The company reported a net income of $11.7 million for Q2 2024, down from $14.9 million in Q2 2023, reflecting a decline of 21.2%[102] Revenue and Growth - Total net revenue for Q2 2024 increased by $15.7 million, or 10.4%, to $167.2 million from $151.5 million in Q2 2023[102] - Net revenue from physical therapy operations increased by $11.2 million, or 8.5%, to $143.5 million for the 2024 Second Quarter compared to $132.2 million for the 2023 Second Quarter[105] - Total net revenue for the 2024 Six Months increased by $22.9 million, or 7.6%, to $322.9 million compared to $300.0 million for the 2023 Six Months[114] - Net patient revenue rose by $15.5 million, or 6.1%, to $271.3 million from $255.9 million in the previous year[114] - Revenues from physical therapy operations increased by $16.5 million, or 6.3%, to $277.9 million, driven by an increase in patient visits and new clinics[115] Operating Costs and Profitability - Operating costs for Q2 2024 rose by $14.1 million, or 11.8%, totaling $133.3 million compared to $119.3 million in Q2 2023[102] - Total operating cost as a percentage of total net revenue was 79.7% for Q2 2024, compared to 78.7% for Q2 2023[102] - Operating costs increased by $23.7 million, or 10.0%, to $260.6 million, resulting in total operating costs as a percentage of net revenue rising to 80.7% from 79.0%[114] - Gross profit decreased by $0.8 million, or 1.3%, to $62.3 million, with a gross profit margin of 19.3% compared to 21.0% in the prior year[114] - Salaries and related costs increased by $13.0 million, or 8.7%, to $161.2 million, with salaries per visit rising to $60.52 from $58.35[118] Clinic Operations - The company completed acquisitions of clinic practices and IIP businesses, increasing the number of clinics from 679 at the beginning of Q2 2024 to 681 by the end of the period[92] - The number of clinics closed or sold in the first six months of 2024 was 11, compared to 5 in the same period of 2023[92] - The company aims to continue acquiring outpatient physical therapy practices and expand its IIP sector[93] - Total patient visits increased by 68,195, or 5.4%, to 1,335,335 in the 2024 Second Quarter from 1,267,140 in the 2023 Second Quarter[105] - Total patient visits increased by 108,707, or 4.4%, to 2,603,337 in the 2024 Six Months from 2,494,630 in the 2023 Six Months[115] EBITDA and Operating Results - Adjusted EBITDA for Q2 2024 was $22.1 million, up from $21.7 million in Q2 2023, representing a year-over-year increase of 1.8%[100] - Operating Results for Q2 2024 were $11.0 million, compared to $10.4 million in Q2 2023, reflecting a growth of 5.8%[101] - For the first six months of 2024, Adjusted EBITDA was $38.9 million, compared to $40.1 million in the same period of 2023[101] Tax and Interest Expenses - The provision for income taxes was $3.1 million in the 2024 Second Quarter compared to $4.2 million during the 2023 Second Quarter[112] - The effective income tax rate was 29.1% for the 2024 Second Quarter compared to 27.9% for the 2023 Second Quarter[112] - Interest expense decreased by $0.7 million to $2.0 million for the 2024 Second Quarter compared to $2.6 million in the 2023 Second Quarter[110] - Interest expense decreased by $1.20 million to $3.90 million due to a lower outstanding balance on the revolving facility[121] Cash Flow and Investments - Net cash provided by operating activities was $33.41 million, a decrease from $38.78 million in the previous year[125] - Cash used in investing activities totaled $48.76 million, primarily for the purchase of interests in businesses and fixed assets[125] - Cash used in financing activities was $24.57 million, mainly due to $13.30 million in cash dividends paid to shareholders[126] - As of June 30, 2024, total cash and cash equivalents were $112.90 million, down from $152.80 million as of December 31, 2023[123] Debt and Interest Rate Management - The company entered into an interest rate swap agreement with a notional value of $150 million, effective June 30, 2022, with a maturity date of June 30, 2027, generating $1.8 million in interest savings for the six months ended June 30, 2024[129] - The outstanding balance on notes payable related to acquisitions was $4.1 million as of June 30, 2024, with varying due dates and interest rates ranging from 3.5% to 8.5% per annum[130] - The company's total indebtedness as of June 30, 2024, included $4.1 million in seller notes and $142.5 million in a term note related to the Credit Agreement[134] - The Revolving Facility had no balance as of June 30, 2024, and is subject to fluctuating interest rates[134] - A 1% change in the interest rate would yield no additional interest expense on the facility due to the interest rate swap arrangement[134]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $22.1 million for Q2 2024, down from $23.6 million in the prior year, resulting in an adjusted EBITDA margin of 16.4%, compared to 17.7% in Q2 2023 [13] - Operating results increased to $11 million in Q2 2024, up by $600,000 from Q2 2023, although per share results slightly decreased from $0.76 to $0.73 due to an increase in shares from a secondary offering [14] - The net rate for the quarter was $105.05 per visit, a 3% increase from the same quarter last year, despite a 1.8% reduction in Medicare rates [15] Business Line Data and Key Metrics Changes - Physical therapy revenues reached $143.5 million in Q2 2024, an increase of 8.5% from the previous year, driven by 25 more clinics and increased visits at mature clinics [16] - The injury prevention (IIP) business saw net revenues grow by 23.2%, with income up 27.4%, and margins improved from 20.7% to 21.4% [18] - Operating costs for physical therapy were $114.7 million, a 10.3% increase year-over-year, attributed to higher salaries and contract labor costs [17] Market Data and Key Metrics Changes - Workers' compensation revenue increased from 9.6% of the revenue mix in Q2 2023 to 10.1% in Q2 2024, indicating a strategic focus on this higher-paying segment [16] - The company experienced a record high in average visits per clinic per day, with April reaching 31.2 visits, contributing to a total of over 108,000 additional visits compared to the same period last year [5][6] Company Strategy and Development Direction - The company is focused on increasing reimbursement rates through contract negotiations and expanding its workers' compensation business, which is a high priority for 2024 and beyond [15][16] - There are ongoing efforts to integrate recent acquisitions and enhance partnerships in injury prevention, with expectations for continued growth in this area [7][11] - The company is also investing in recruiting initiatives to address labor shortages and improve staffing efficiency [9][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges related to labor costs, with therapists' average incentives increasing by 4% and front office personnel by 5% due to inflation and labor scarcity [8] - Despite these challenges, management remains optimistic about patient volume growth and expects to make further progress on net rates throughout the year [20] - The company is actively engaging with industry groups to address ongoing Medicare rate cuts and is hopeful for future improvements in reimbursement policies [30][32] Other Important Information - The company has a strong balance sheet with $142.5 million in debt at a favorable interest rate of 4.7%, and $90 million in excess cash available for growth initiatives [19] - The company updated its full-year EBITDA guidance to a range of $80 million to $85 million, reflecting adjustments in labor cost expectations [20] Q&A Session Summary Question: Labor challenges and volume growth - Management indicated that while labor challenges exist, they have not significantly impacted volume growth, and they are working on strategies to improve the labor situation [21][22] Question: Year-to-date volume trends - Management acknowledged that year-to-date volumes are flat, but they believe there is potential for growth if staffing issues are resolved [27][28] Question: Medicare rate proposals - Management discussed ongoing efforts to lobby for better Medicare reimbursement rates and the impact of previous cuts on operations [30][32] Question: Impact of Hurricane Beryl - The company reported a loss of approximately 2,600 visits due to Hurricane Beryl, but overall July performance remained consistent with expectations [34] Question: Automation initiatives - Management confirmed that there are still opportunities for automation at the front desk, although integration issues with the EMR vendor have slowed progress [52][53]

Core Viewpoint - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.73 per share, missing the Zacks Consensus Estimate of $0.81 per share, and showing a decrease from $0.76 per share a year ago, indicating a -9.88% earnings surprise [1] Financial Performance - The company posted revenues of $167.19 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.12%, compared to $151.49 million in the same quarter last year [2] - Over the last four quarters, U.S. Physical Therapy has exceeded consensus revenue estimates four times [2] Stock Performance - U.S. Physical Therapy shares have declined approximately 6% since the beginning of the year, while the S&P 500 has gained 12.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $161.43 million, and for the current fiscal year, it is $2.84 on revenues of $644.51 million [7] - The estimate revisions trend for U.S. Physical Therapy is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which U.S. Physical Therapy belongs, is currently ranked in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]