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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
Segment Information
12. 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 25% - 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 to 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. IIP services are performed through Industrial Sports Medicine Professionals with specialized training related to the musculoskeletal system.

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.


  
Three Months Ended
     Six Months Ended
  

 
June 30, 2025
    
June 30, 2024
     June 30, 2025     June 30, 2024  

  (In thousands)     (In thousands)  
Net revenue:                        
Physical therapy operations
   $ 168,292     $ 143,486     $ 324,700     $ 277,911  
Industrial injury prevention services
     29,052       23,704       56,432       44,954  
Total Company
   $ 197,344     $ 167,190     $ 381,132     $ 322,865  
 
                                
Operating Costs:
                                
Salaries and related costs:
                                
Physical therapy operations
   $ 95,668     $ 81,452     $ 189,241     $ 161,226  
Industrial injury prevention services
     18,120       14,882       35,796       28,839  
Total salaries and related costs
   $ 113,788     $ 96,334     $ 225,037     $ 190,065  
Rent supplies, contract labor and other:
                                
Physical therapy operations
   $ 29,826     $ 26,824     $ 59,925     $ 51,977  
Industrial injury prevention services
     4,301       3,511       8,046       6,342  
Total rent, supplies, contract labor and other
   $ 34,127     $ 30,335     $ 67,971     $ 58,319  
Depreciation and amortization:                                
Physical therapy operations   $
5,516     $
 4,067     $
10,701     $
 7,840  
Industrial injury prevention services     225       232       580       357  
Total depreciation and amortization
   $
 5,741     $
4,299     $
11,281     $
 8,197  
Provision for credit losses:
                                
Physical therapy operations
   $ 1,980     $ 1,717     $ 3,821     $ 3,344  
Industrial injury prevention services
     15       -       22       -  
Total provision for credit losses
   $ 1,995     $ 1,717     $ 3,843     $ 3,344  
Clinic closure costs:
                               
Physical therapy operations
  $ 69     $ 643       311     $ 677  
Industrial injury prevention services
    -
       -
       -       -  
Total clinic closure costs
  $ 69     $ 643       311     $ 677  
Total Company
   $ 155,720     $ 133,328     $ 308,443     $ 260,602  

                               
Gross profit:
                                
Physical therapy operations
   $ 35,233     $ 28,783     $ 60,701     $ 52,847  
Industrial injury prevention services
     6,391       5,079       11,988       9,416  
Total Company
   $ 41,624     $ 33,862     $ 72,689     $ 62,263  
                                 
Unallocated amounts                                
Corporate office costs   $
17,476     $
14,249     $
33,721     $
 28,334  
Interest expense, debt and other     2,422       1,980       4,701       3,948  
Interest income from investments     (28 )     (1,074 )     (52 )     (2,617 )
(Gain) loss on change in fair value of contingent earn-out consideration     (790 )     4,046       (5,612 )     3,434  
Change in revaluation of put-right liability     339       223       743       303  
Equity in earnings of unconsolidated affiliate     (401 )     (248 )     (794 )     (519 )
Loss on sale of a partnership     -       -       123       -  
Other   $
(47 )  
(109 )   $
 (122 )  
(171 )
Total unallocated amounts   $
 18,971     $
19,067     $ 32,708     $
32,712  
Income before taxes   $
 22,653     $
 14,795     $
39,981     $
 29,551  


 
June 30, 2025
    
December 31, 2024
  
Assets:
            
Goodwill:
           
Physical therapy operations
   $ 589,643     $ 579,046  
Industrial injury prevention services
     87,952       88,106  
Total goodwill   $
677,595     $
667,152  
All other assets:                
Physical therapy operations     420,754     $
415,039  
Industrial injury prevention services     81,251       85,276  
Total all other assets     502,005       500,315  
Total Assets
   $ 1,179,600     $ 1,167,467