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Segment Information
 9 Months Ended
Sep. 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
     Nine Months Ended
  

 
September 30, 2025
    
September 30, 2024
     September 30, 2025     September 30, 2024  

  (In thousands)     (In thousands)  
Net revenue:                        
Physical therapy operations
   $ 168,110     $ 142,714     $ 492,810     $ 420,625  
Industrial injury prevention services
     29,022       25,319       85,454       70,273  
Total Company
   $ 197,132     $ 168,033     $ 578,264     $ 490,898  
 
                                
Operating Costs:
                                
Salaries and related costs:
                                
Physical therapy operations
   $ 98,237     $ 84,160     $ 287,489     $ 245,387  
Industrial injury prevention services
     18,382       15,675       54,167       44,513  
Total salaries and related costs
   $ 116,619     $ 99,835     $ 341,656     $ 289,900  
Rent supplies, contract labor and other:
                                
Physical therapy operations
   $ 32,026     $ 26,047     $ 91,939     $ 78,022  
Industrial injury prevention services
     4,089       3,709       12,147       10,082  
Total rent, supplies, contract labor and other
   $ 36,115     $ 29,756     $ 104,086     $ 88,104  
Depreciation and amortization:                                
Physical therapy operations   $ 4,665     $ 3,355     $ 14,383     $ 10,213  
Industrial injury prevention services     830       803       2,393       2,113  
Total depreciation and amortization
   $ 5,495     $ 4,158     $ 16,776     $ 12,326  
Provision for credit losses:
                                
Physical therapy operations
   $ 2,031     $ 1,721     $ 5,853     $ 5,065  
Industrial injury prevention services
     42       -       63       -  
Total provision for credit losses
   $ 2,073     $ 1,721     $ 5,916     $ 5,065  
(Gain) loss on clinic closures - lease and other:
                               
Physical therapy operations
  $ (42 )   $ 3,432     $
 269     $ 4,109  
Industrial injury prevention services
    -
       -
       -       -  
Total clinic closure costs
  $ (42 )   $ 3,432     $
 269     $ 4,109  
Total Company
   $ 160,260     $ 138,902     $ 468,703     $ 399,504  

                               
Gross profit:
                                
Physical therapy operations
   $ 31,193     $ 23,999     $ 92,877     $ 77,829  
Industrial injury prevention services
     5,679       5,132       16,684       13,565  
Total Company
   $ 36,872     $ 29,131     $ 109,561     $ 91,394  
                                 
Unallocated amounts                                
Corporate office costs   $ 17,414     $ 14,385     $ 51,135     $ 42,719  
Interest expense, debt and other     2,408       2,018       7,109       5,966  
Interest income from investments     (33 )     (1,018 )     (85 )     (3,635 )
(Gain) loss on change in fair value of contingent earn-out consideration     (5,872 )     1,899       (11,484 )     5,332  
Change in revaluation of put-right liability     663       (168 )     1,406       136  
Equity in earnings of unconsolidated affiliate     (361 )     (231 )     (1,155 )     (750 )
Loss on sale of a partnership     -       -       123       -  
Other  
(222 )     (90 )  
(344 )     (261 )
Total unallocated amounts   $ 13,997     $ 16,795     $ 46,705     $ 49,507  
Income before taxes   $ 22,875     $ 12,336     $ 62,856     $ 41,887  


 
September 30, 2025
    
December 31, 2024
  
Assets:
            
Goodwill:
           
Physical therapy operations
   $ 602,460     $ 579,046  
Industrial injury prevention services
     87,952       88,106  
Total goodwill   $
690,412     $
667,152  
All other assets:                
Physical therapy operations     427,491     $
415,039  
Industrial injury prevention services     78,367       85,276  
Total all other assets     505,858       500,315  
Total Assets
   $ 1,196,270     $ 1,167,467  

Amortization of certain intangible assets was reallocated between the physical therapy operations and IIP segments. Prior year amounts were reallocated to conform with current year presentation.