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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Information [Abstract]  
Segment Information
15. Segment Information

The Company’s reportable segments include the physical therapy operations segment and the IIP segment. Also included in the physical therapy operations segment are revenues from management contract services and other services which include services the Company provides on-site, such as athletic trainers for schools.

Physical Therapy Operations



The physical therapy operations segment primarily operates through subsidiary clinic partnerships (“Clinic Partnerships”), in which the Company generally owns a 1% general partnership interest in all the Clinic Partnerships. The Company’s limited partnership interests generally range from 65% to 75% (the range is 10% - 99%) in the Clinic Partnerships. The managing therapist of each clinic owns, directly or indirectly, the remaining limited partnership interest in most of the clinics (hereinafter referred to as “Clinic Partnerships”). Some of the Clinic Partnerships serve as management services organizations which manage and provide staffing and a variety of administrative services to physical therapy provider entities in which the Company does not have an ownership interest. These Clinic Partnerships similarly are owned collectively by the Company and one or more physical therapists who are involved in the management of the operations. To a lesser extent, the Company operates some clinics, through wholly-owned subsidiaries (hereinafter referred to as “Wholly-Owned Facilities”).


The Company continues to seek to attract for employment physical therapists who have established relationships with physicians and other referral sources, by offering these therapists a competitive salary and incentives based on the profitability of the clinic that they manage. For multi-site clinic practices in which a controlling interest is acquired by the Company, the prior owners typically continue on as employees to manage the clinic operations, retain a non-controlling ownership interest in the clinics and receive a competitive salary for managing the clinic operations. In addition, the Company has developed satellite clinic facilities as part of existing Clinic Partnerships and Wholly-Owned Facilities, with the result that a substantial number of Clinic Partnerships and Wholly-Owned Facilities operate more than one clinic location.



Clinic Partnerships

For non-acquired Clinic Partnerships, the earnings and liabilities attributable to the non-controlling interests, typically owned by the managing therapist, directly or indirectly, are recorded within the balance sheets and income statements as non-controlling interest—permanent equity. For acquired Clinic Partnerships with redeemable non-controlling interests, the earnings attributable to the redeemable non-controlling interests are recorded within the consolidated balance sheets and income statements as redeemable non-controlling interest—temporary equity.



Wholly-Owned Facilities

For Wholly-Owned Facilities with profit sharing arrangements, an appropriate accrual is recorded for the amount of profit sharing due the clinic partners/directors. The amount is expensed as compensation and included in clinic operating costs—salaries and related costs. The respective liability is included in current liabilities—accrued expenses on the consolidated balance sheets.



Industrial Injury Prevention Services

Services provided in the IIP segment include onsite injury prevention and rehabilitation, performance optimization, post offer employment testing, functional capacity evaluations, and ergonomic assessments. The majority of these services are contracted with and paid for directly by employers, including a number of Fortune 500 companies. Other clients include large insurers and their contractors. The Company performs these services through Industrial Sports Medicine Professionals, consisting primarily of specialized certified athletic trainers.

Segment Financials


The Company, including its chief operating decision maker, the Chief Executive Officer, uses gross profit in its budget-to-actual, forecasting, and other analytical processes to assess segment performance and allocate resources. The Company has provided additional information regarding its reportable segments which contributes to the understanding of the Company and provides useful information.


    For the Year Ended
  
 
December 31, 2024
    
December 31, 2023
    
December 31, 2022
  
   
(In thousands)
 
Net revenue:
                  
Physical therapy operations
  
$
574,433
    
$
526,548
    
$
476,092
  
Industrial injury prevention services
    
96,912
      
78,254
      
77,052
  
Total Company
  
$
671,345
    
$
604,802
    
$
553,144
  
                         
 Operating Costs:                        
 Salaries and related costs:
                        
 Physical therapy operations
   $ 337,466     $ 302,765     $ 272,360  
 Industrial injury prevention services
     61,928       50,625       46,831  
 Total salaries and related costs
   $ 399,394     $ 353,390     $ 319,191  
 Rent supplies, contract labor and other:
                        
 Physical therapy operations
   $ 105,019     $ 97,873     $ 88,523  
 Industrial injury prevention services
     13,891       10,723       13,847  
 Total rent, supplies, contract labor and other
   $ 118,910     $ 108,596     $ 102,370  
 Depreciation and amortization:
                        
 Physical therapy operations
   $ 16,741     $ 14,542     $ 13,563  
 Industrial injury prevention services
     1,112    
418    
376  
 Total depreciation and amortization
   $ 17,853     $ 14,960     $ 13,939  
 Provision for credit losses:
                        
 Physical therapy operations
   $ 6,904     $ 6,129     $ 5,517  
 Industrial injury prevention services
     8       43       31  
 Total provision for credit losses
   $ 6,912     $ 6,172     $ 5,548  
 Clinic closure costs:
                        
 Physical therapy operations
   $ 4,355     $ 175     $ 72  
 Industrial injury prevention services
     -       -       -  
 Total clinic closure costs
   $ 4,355     $ 175     $ 72  
 Total Company   $ 547,424     $ 483,293     $ 441,120  
                         
Gross profit:
                        
Physical therapy operations
  
$
103,948
    
$
105,064
    
$
96,057
  
Industrial injury prevention services
    
19,973
      
16,445
      
15,967
  
Total Company
  
$
123,921
    
$
121,509
    
$
112,024
  
 
                        
Impairment of goodwill and other intangible assets
                        
 Industrial injury prevention services
   $ -     $
 17,495     $
9,112  
 Total impairment of goodwill and other intangible assets
   $ -     $ 17,495     $ 9,112  
                         
Impairment of assets held for sale                        
Physical therapy operations
   $ 2,418     $ -     $ -  
Total impairment of assets held for sale
   $ 2,418     $ -     $ -  
                         
Unallocated amounts
                        
Corporate office costs
   $
58,290     $
51,953     $
46,111  
Interest expense, debt and other
     8,015       9,303       5,779  
Interest income from investments
     (3,941 )     (3,774 )     -  
Change in fair value of contingent earn-out consideration
     219       1,550       (2,520 )
Change in revaluation of put-right liability
     82       (2,582 )     5  
Equity in earnings of unconsolidated affiliate
     (1,014 )     (955 )     (1,175 )
Relief Funds
     -       (467 )     -  
Other
     (357 )     (390 )     (859 )
Total unallocated amounts
   $ 61,294     $ 54,638     $ 47,341  
Income before taxes
   $ 60,209     $ 49,376     $ 55,571  
                         
 Assets:                        
 Goodwill:
                        
 Physical therapy operations
   $ 595,519     $ 437,413     $ 408,705  
 Industrial injury prevention services
     71,633       72,158       85,396  
 Total goodwill
   $ 667,152     $ 509,571     $ 494,101  
 All other assets:
                        
 Physical therapy operations
    
452,905
    
$
398,272
    
$
263,131
  
 Industrial injury prevention services
    
47,410
      
89,395
      
100,922
  
 Total all other assets
     500,315       487,667       364,053  
Total Assets
  
$
1,167,467
    
$
997,238
    
$
858,154