|
•
|
Adjusted EBITDA (1), a non-Generally Accepted Accounting Principles (“GAAP”) measure, was $81.8 million for the year ended
December 31, 2024 (“2024 Year”), an increase of $3.9 million, from $77.9 million for the year ended December 31, 2023 (“2023 Year”).
|
|
•
|
Operating Results (1), a non-GAAP measure, was $36.9 million for the 2024 Year, an increase of $0.5 million, from $36.4
million in the 2023 Year. On a per share basis, Operating Results were $2.45 in the 2024 Year compared to $2.57 in the 2023 Year due to the increase in the number of shares outstanding associated with the Company’s secondary offering
completed in May 2023. In addition, the 2024 Year includes a $1.0 million true-up of income tax expense recorded during the three months ended December 31, 2024 (“2024 Fourth Quarter”).
|
|
•
|
Net income attributable to USPH’s shareholders (“USPH Net Income”), a GAAP measure, was $31.4 million for the 2024 Year compared to
$28.2 million for the 2023 Year. For the 2024 Year, USPH Net Income included a charge of $4.4 million (prior to allocation of the related minority interest and income taxes) related to the closure of 45 underperforming clinics, a non-cash
charge of $2.4 million (prior to allocation of income taxes) related to the impairment of assets held for sale and a $1.0 million true-up of income tax expense. For the 2023 Year, USPH Net Income included a charge of $17.5 million (prior
to the allocation of minority interest and income taxes) related to the impairment of goodwill and other intangible assets.
|
|
•
|
In accordance with GAAP, the revaluation of noncontrolling interest, net of taxes, is not included in net income but is charged
directly to retained earnings; however, this change is included in the computation of earnings per share. Earnings per share, was $1.84 for the 2024 Year compared to $1.28 for the 2023 Year.
|
|
U.S. Physical Therapy Press Release
|
Page 2
|
|
February 26, 2025
|
|
|
•
|
Non-GAAP Adjusted EBITDA (1) for the 2024 Fourth Quarter was $21.8 million compared to $19.0 million for the fourth quarter
ended December 31, 2023 (“2023 Fourth Quarter”).
|
|
•
|
Non-GAAP Operating Results (1) for the 2024 Fourth Quarter was $7.8 million, or $0.51 per share, compared to $8.9 million,
or $0.59 per share, for the 2023 Fourth Quarter. The 2024 Fourth Quarter includes a $1.0 million true-up of income tax expense.
|
|
•
|
USPH Net Income was $9.2 million for the 2024 Fourth Quarter compared to $0.7 million for the 2023 Fourth Quarter. For the 2024 Fourth
Quarter, USPH Net Income included a charge of $0.2 million (prior to allocation of the related minority interest and income taxes) related to the closure of underperforming clinics, a non-cash charge of $2.4 million (prior to allocation of
income taxes) related to the impairment of assets held for sale and a $1.0 million true-up of income tax expense. For the 2023 Fourth Quarter, USPH Net Income included a charge of $17.5 million (prior to the allocation of minority interest
and income taxes) related to the impairment of goodwill and other intangible assets.
|
|
•
|
In accordance with GAAP, the revaluation of redeemable non-controlling interest, net of taxes, is not included in net income but is
charged directly to retained earnings; however, this change is included in the computation of earnings per share. Earnings per share for the 2024 Fourth Quarter was $0.52 compared to net loss per share of $0.38 for the 2023 Fourth Quarter.
|
|
•
|
Total revenue from physical therapy operations for the 2024 Fourth Quarter increased $19.2 million, or 14.2%, to $153.8 million.
|
|
•
|
Net rate per patient visit for the 2024 Fourth Quarter increased to $104.73 from $103.68 for the 2023 Fourth Quarter, an increase of
1.0%, despite the 1.8% Medicare rate reduction which went into effect at the beginning of 2024 and the impact of acquisitions added during the quarter with net rates below the Company’s average net rate. The increase in net rate per patient
visit reflects the Company’s strategic priority of increasing reimbursement rates through contract negotiations with commercial and other payors.
|
|
•
|
Average daily patient visits per clinic was 31.7 for the 2024 Fourth Quarter, a record-high for a quarter in the Company’s history,
compared to 29.9 in the comparable prior year quarter. Total patient visits were 1,432,801 in the 2024 Fourth Quarter, a 13.0% increase from the 2023 Fourth Quarter.
|
|
•
|
Industrial injury prevention services (“IIP”) revenue was $26.6 million for the 2024 Fourth Quarter, an increase of 32.1% as compared to
the 2023 Fourth Quarter. IIP gross profit was $4.9 million in the 2024 Fourth Quarter, an increase of $0.7 million, or 15.6%, from $4.3 million in the 2023 Fourth Quarter.
|
|
•
|
During the 2024 Fourth Quarter, the Company added 70 clinics (through acquisition or denovos) and closed 2 clinics bringing its total
owned and/or managed clinic count to 768 as of December 31, 2024, compared to 714 as of December 31, 2023.
|
|
•
|
On October 31, 2024, the Company acquired a 50% equity interest in a management services organization that provides management and
administrative services to 50 physical therapy clinics with the original owners retaining a 50% equity interest. Through its managed therapy providers, the acquired company currently generates approximately $64.0 million in annual revenue
and approximately $12.0 million in annual EBITDA on a consolidated basis.
|
|
•
|
On November 30, 2024, the Company acquired a 75% equity interest in an eight-clinic practice with the practice owners retaining a 25%
equity interest. The business currently generates $6.5 million in annual revenues and 43,000 annual visits.
|
|
•
|
The Company’s Board of Directors raised the Company’s quarterly dividend rate from $0.44 per share to $0.45 per share, effective
immediately, and declared a quarterly dividend for the first quarter of 2025 at the higher rate. The dividend will be payable on April 11, 2025, to shareholders of record on March 14, 2025.
|
|
•
|
Management currently expects the Company’s Adjusted EBITDA for 2025 to be in the range of $88 million to $93 million. See “Management
Provides 2025 Guidance” below for more information.
|
|
(1)
|
These are Non-GAAP Measures. See pages 13 to 15 of this release for the definition and
reconciliation of Non-GAAP Adjusted EBITDA, Non-GAAP Operating Results and other Non-GAAP measures to the most directly comparable GAAP measure.
|
|
U.S. Physical Therapy Press Release
|
Page 3
|
|
February 26, 2025
|
|
|
Three Months Ended
|
Variance
|
|||||||||||||||||||
|
December 31, 2024
|
December 31, 2023
|
$
|
%
|
|||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||
|
Revenue related to:
|
||||||||||||||||||||
|
Mature Clinics (1)
|
$
|
126,129
|
$
|
122,235
|
$
|
3,894
|
3.2
|
%
|
||||||||||||
|
Clinic additions (2)
|
23,931
|
6,526
|
17,405
|
*
|
(6) |
|
|
|||||||||||||
|
Clinics sold or closed (3)
|
-
|
2,691
|
(2,691
|
)
|
*
|
(6) |
|
|
||||||||||||
|
Net patient revenue
|
150,060
|
131,452
|
18,608
|
14.2
|
%
|
|||||||||||||||
|
Other (4)
|
3,747
|
3,177
|
570
|
17.9
|
%
|
|||||||||||||||
|
Total
|
153,807
|
134,629
|
19,178
|
14.2
|
%
|
|||||||||||||||
|
Operating costs (4)
|
126,214
|
108,380
|
17,834
|
16.5
|
%
|
|||||||||||||||
|
Gross profit
|
$
|
27,593
|
$
|
26,249
|
$
|
1,344
|
5.1
|
%
|
||||||||||||
|
Financial and operating metrics (not in thousands):
|
||||||||||||||||||||
|
Net rate per patient visit (1)
|
$
|
104.73
|
$
|
103.68
|
$
|
1.05
|
1.0
|
%
|
||||||||||||
|
Patient visits (1)
|
1,432,801
|
1,267,842
|
164,959
|
13.0
|
%
|
|||||||||||||||
|
Average daily visits per clinic (1)
|
31.7
|
29.9
|
1.8
|
6.0
|
%
|
|||||||||||||||
|
Gross margin
|
17.9
|
%
|
19.5
|
%
|
||||||||||||||||
|
Salaries and related costs per visit, clinics (5)
|
$
|
63.00
|
$
|
59.72
|
$
|
3.28
|
5.5
|
%
|
||||||||||||
|
Operating costs per visit, clinics (5)
|
$
|
86.72
|
$
|
84.09
|
$
|
2.63
|
3.1
|
%
|
||||||||||||
|
|
||||||||||||||||||||
|
(1) See Glossary of Terms - Revenue Metrics for definition.
|
||||||||||||||||||||
|
(2) Includes 103 and 46 clinics added during the years ended December 31, 2024 and 2023, respectively.
|
||||||||||||||||||||
|
(3) Includes 45 and 15 clinics closed during the years ended December 31, 2024 and 2023, respectively.
|
||||||||||||||||||||
|
(4) Includes revenues and costs from management contracts.
|
||||||||||||||||||||
|
(5) Excludes costs from management contracts.
|
||||||||||||||||||||
|
(6) Not meaningful.
|
||||||||||||||||||||
|
U.S. Physical Therapy Press Release
|
Page 4
|
|
February 26, 2025
|
|
|
Three Months Ended
|
Variance
|
|||||||||||||||
|
December 31, 2024
|
December 31, 2023
|
$
|
%
|
|||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||
|
Net revenue
|
$
|
26,639
|
$
|
20,172
|
$
|
6,467
|
32.1
|
%
|
||||||||
|
Operating costs
|
21,705
|
15,905
|
5,800
|
36.5
|
%
|
|||||||||||
|
Gross profit
|
$
|
4,934
|
$
|
4,267
|
$
|
667
|
15.6
|
%
|
||||||||
|
Gross margin
|
18.5
|
%
|
21.2
|
%
|
||||||||||||
|
(1)
|
These are Non-GAAP Measures. See pages 13 to 15 of this release for the definition and
reconciliation of Non-GAAP Adjusted EBITDA, Non-GAAP Operating Results and other Non-GAAP measures to the most directly comparable GAAP measure.
|
|
(1)
|
These are Non-GAAP Measures. See pages 13 to 15 of this release for the definition and
reconciliation of Non-GAAP Adjusted EBITDA, Non-GAAP Operating Results and other Non-GAAP measures to the most directly comparable GAAP measure.
|
|
U.S. Physical Therapy Press Release
|
Page 5
|
|
February 26, 2025
|
|
|
(1)
|
These are Non-GAAP Measures. See pages 13 to 15 of this release for the definition and
reconciliation of Non-GAAP Adjusted EBITDA, Non-GAAP Operating Results and other Non-GAAP measures to the most directly comparable GAAP measure.
|
| |
Page 6
|
|
February 26, 2025
|
|
|
■
|
the full-year contribution from acquisitions completed in 2024
|
|
■
|
the full-year impact of rate negotiations in commercial and other payor categories completed during 2024
|
|
■
|
the partial-year impact of rate negotiations in commercial and other payor categories expected to be completed during 2025
|
|
■
|
volume increases at the Company’s existing clinics, and
|
|
■
|
continued double-digit growth in the Company’s industrial injury prevention business.
|
|
U.S. Physical Therapy Press Release
|
Page 7
|
|
February 26, 2025
|
| • |
changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
|
| • |
revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;
|
| • |
changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by
patients;
|
| • |
private third-party payors for our services may adopt payment policies that could limit our future revenue and profitability;
|
| • |
compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and
penalties for failure to comply;
|
| • |
compliance with state laws and regulations relating to the corporate practice of medicine and fee splitting, and associated fines and penalties for failure to
comply ;
|
| • |
competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or
closure costs including the possible write-down or write-off of goodwill and other intangible assets;
|
| • |
the impact of future public health crises and epidemics/pandemics, such as was the case with the novel strain of COVID-19 and its variants;
|
| • |
certain of our acquisition agreements contain put-rights related to a future purchase of significant equity interests in our subsidiaries or in a separate
company;
|
| • |
the impact of future vaccinations and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue,
costs and the results of operations;
|
| • |
our debt and financial obligations could adversely affect our financial condition, our ability to obtain future financing and our ability to operate our
business;
|
| • |
changes as the result of government enacted national healthcare reform;
|
| • |
the ability to control variable interest entities for which we do not have a direct ownership;
|
| • |
business and regulatory conditions including federal and state regulations;
|
| • |
governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased
costs;
|
| • |
revenue and earnings expectations;
|
| • |
contingent consideration provisions in certain our acquisition agreements, the value of which may impact future financial results;
|
| • |
legal actions, which could subject us to increased operating costs and uninsured liabilities;
|
| • |
general economic conditions, including but not limited to inflationary and recessionary periods;
|
| • |
actual or perceived events involving banking volatility or limited liability, defaults or other adverse developments that affect the U.S or the international
financial systems, may result in market wide liquidity problems which could have a material and adverse impact on our available cash and results of operations;
|
| • |
our business depends on hiring, training, and retaining qualified employees;
|
| • |
availability and cost of qualified physical therapists;
|
| • |
competitive environment in the industrial injury prevention services business, which could result in the termination or non-renewal of contractual service
arrangements and other adverse financial consequences for that service line;
|
| • |
our ability to identify and complete acquisitions, and the successful integration of the operations of the acquired businesses;
|
| • |
impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest
(minority interests);
|
| • |
maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;
|
| • |
a security breach of our or our third party vendors’ information technology systems may subject us to potential legal action and reputational harm and may
result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act;
|
| • |
maintaining clients for which we perform management, industrial injury prevention related services, and other services, as a breach or termination of those
contractual arrangements by such clients could cause operating results to be less than expected.
|
| • |
maintaining adequate internal controls;
|
| • |
maintaining necessary insurance coverage;
|
| • |
availability, terms, and use of capital; and
|
| • |
weather and other seasonal factors.
|
|
U.S. Physical Therapy Press Release
|
Page 8
|
|
February 26, 2025
|
|
U.S. Physical Therapy Press Release
|
Page 9
|
|
February 26, 2025
|
|
Three Months Ended
|
For the Year Ended
|
|||||||||||||||
|
December 31, 2024
|
December 31, 2023
|
December 31, 2024
|
December 31, 2023
|
|||||||||||||
|
Net patient revenue
|
$
|
150,060
|
$
|
131,452
|
$
|
560,553
|
$
|
514,556
|
||||||||
|
Other revenue
|
30,387
|
23,349
|
110,792
|
90,246
|
||||||||||||
|
Net revenue
|
180,447
|
154,801
|
671,345
|
604,802
|
||||||||||||
|
Operating cost:
|
||||||||||||||||
|
Salaries and related costs
|
109,494
|
90,633
|
399,394
|
353,390
|
||||||||||||
|
Rent, supplies, contract labor and other
|
30,863
|
28,139
|
118,910
|
108,596
|
||||||||||||
|
Depreciation and amortization
|
5,470
|
3,927
|
17,853
|
14,960
|
||||||||||||
|
Provision for credit losses
|
1,847
|
1,572
|
6,912
|
6,172
|
||||||||||||
|
Clinic closure costs - lease and other
|
246
|
14
|
4,355
|
175
|
||||||||||||
|
Total operating cost
|
147,920
|
124,285
|
547,424
|
483,293
|
||||||||||||
|
Gross profit
|
32,527
|
30,516
|
123,921
|
121,509
|
||||||||||||
|
Corporate office costs
|
15,571
|
13,901
|
58,290
|
51,953
|
||||||||||||
|
Impairment of goodwill and other intangible assets
|
-
|
17,495
|
-
|
17,495
|
||||||||||||
|
Impairment of assets held for sale
|
2,418
|
-
|
2,418
|
-
|
||||||||||||
|
Operating income (loss)
|
14,538
|
(880
|
)
|
63,213
|
52,061
|
|||||||||||
|
Other (expense) income
|
||||||||||||||||
|
Interest expense, debt and other
|
(2,049
|
)
|
(2,010
|
)
|
(8,015
|
)
|
(9,303
|
)
|
||||||||
|
Interest income from investments
|
306
|
1,583
|
3,941
|
3,774
|
||||||||||||
|
Change in fair value of contingent earn-out consideration
|
5,113
|
(1,747
|
)
|
(219
|
)
|
(1,550
|
)
|
|||||||||
|
Change in revaluation of put-right liability
|
54
|
2,926
|
(82
|
)
|
2,582
|
|||||||||||
|
Equity in earnings of unconsolidated affiliate
|
264
|
149
|
1,014
|
955
|
||||||||||||
|
Relief Funds
|
-
|
-
|
-
|
467
|
||||||||||||
|
Other
|
96
|
85
|
357
|
390
|
||||||||||||
|
Total other (expense) income
|
3,784
|
986
|
(3,004
|
)
|
(2,685
|
)
|
||||||||||
|
Income before taxes
|
18,322
|
106
|
60,209
|
49,376
|
||||||||||||
|
Provision for income taxes
|
5,828
|
1,399
|
14,609
|
12,156
|
||||||||||||
|
Net income (loss)
|
12,494
|
(1,293
|
)
|
45,600
|
37,220
|
|||||||||||
|
Less: Net (income) loss attributable to non-controlling interest:
|
||||||||||||||||
|
Redeemable non-controlling interest - temporary equity
|
(2,505
|
)
|
3,190
|
(10,044
|
)
|
(4,426
|
)
|
|||||||||
|
Non-controlling interest - permanent equity
|
(745
|
)
|
(1,241
|
)
|
(4,132
|
)
|
(4,555
|
)
|
||||||||
|
(3,250
|
)
|
1,949
|
(14,176
|
)
|
(8,981
|
)
|
||||||||||
|
Net income attributable to USPH shareholders
|
$
|
9,244
|
$
|
656
|
$
|
31,424
|
$
|
28,239
|
||||||||
|
Basic and diluted earnings (loss) per share attributable to USPH shareholders (1)
|
$
|
0.52
|
$
|
(0.38
|
)
|
$
|
1.84
|
$
|
1.28
|
|||||||
|
Shares used in computation - basic and diluted
|
15,089
|
14,987
|
15,064
|
14,188
|
||||||||||||
|
Dividends declared per common share
|
$
|
0.44
|
$
|
0.43
|
$
|
1.76
|
$
|
1.72
|
||||||||
|
U.S. Physical Therapy Press Release
|
Page 10
|
|
February 26, 2025
|
|
Three Months Ended
|
For the Year Ended
|
|||||||||||||||
|
December 31, 2024
|
December 31, 2023
|
December 31, 2024
|
December 31, 2023
|
|||||||||||||
|
Net income (loss)
|
$
|
12,494
|
$
|
(1,293
|
)
|
$
|
45,600
|
$
|
37,220
|
|||||||
|
Other comprehensive income (loss)
|
||||||||||||||||
|
Unrealized gain (loss) on cash flow hedge
|
1,960
|
(3,982
|
)
|
23
|
(1,642
|
)
|
||||||||||
|
Tax effect at statutory rate (federal and state)
|
(500
|
)
|
1,017
|
(6
|
)
|
420
|
||||||||||
|
Comprehensive income (loss)
|
$
|
13,954
|
$
|
(4,258
|
)
|
$
|
45,617
|
$
|
35,998
|
|||||||
|
Comprehensive (income) loss attributable to non-controlling interest
|
(3,250
|
)
|
1,949
|
(14,176
|
)
|
(8,981
|
)
|
|||||||||
|
Comprehensive income (loss) attributable to USPH shareholders
|
$
|
10,704
|
$
|
(2,309
|
)
|
$
|
31,441
|
$
|
27,017
|
|||||||
|
U.S. Physical Therapy Press Release
|
Page 11
|
|
February 26, 2025
|
|
December 31, 2024
|
December 31, 2023
|
|||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
41,362
|
$
|
152,825
|
||||
|
Patient accounts receivable, less provision for credit losses of $3,506 and $2,736, respectively
|
59,040
|
51,866
|
||||||
|
Accounts receivable - other
|
26,626
|
17,854
|
||||||
|
Other current assets
|
10,555
|
10,830
|
||||||
|
Total current assets
|
137,583
|
233,375
|
||||||
|
Fixed assets:
|
||||||||
|
Furniture and equipment
|
68,128
|
63,982
|
||||||
|
Leasehold improvements
|
51,105
|
46,941
|
||||||
|
Fixed assets, gross
|
119,233
|
110,923
|
||||||
|
Less accumulated depreciation and amortization
|
(87,093
|
)
|
(84,821
|
)
|
||||
|
Fixed assets, net
|
32,140
|
26,102
|
||||||
|
Operating lease right-of-use assets
|
133,936
|
103,431
|
||||||
|
Investment in unconsolidated affiliate
|
12,190
|
12,256
|
||||||
|
Goodwill
|
667,152
|
509,571
|
||||||
|
Other identifiable intangible assets, net
|
179,311
|
109,682
|
||||||
|
Other assets
|
5,155
|
2,821
|
||||||
|
Total assets
|
$
|
1,167,467
|
$
|
997,238
|
||||
|
|
||||||||
|
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable - trade
|
$
|
5,936
|
$
|
3,898
|
||||
|
Accrued expenses
|
59,513
|
55,344
|
||||||
|
Current portion of operating lease liabilities
|
39,835
|
35,252
|
||||||
|
Current portion of term loan and notes payable
|
10,999
|
7,691
|
||||||
|
Total current liabilities
|
116,283
|
102,185
|
||||||
|
Notes payable, net of current portion
|
903
|
1,289
|
||||||
|
Revolving facility
|
11,000
|
-
|
||||||
|
Term loan, net of current portion and deferred financing costs
|
130,627
|
137,702
|
||||||
|
Deferred taxes
|
29,465
|
24,815
|
||||||
|
Operating lease liabilities, net of current portion
|
101,868
|
76,653
|
||||||
|
Other long-term liabilities
|
18,275
|
2,356
|
||||||
|
Total liabilities
|
408,421
|
345,000
|
||||||
|
|
||||||||
|
Redeemable non-controlling interest - temporary equity
|
269,025
|
174,828
|
||||||
|
|
||||||||
|
Commitments and Contingencies
|
||||||||
|
|
||||||||
|
U.S. Physical Therapy, Inc. ("USPH") shareholders’ equity:
|
||||||||
|
Preferred stock, $.01 par value, 500,000 shares authorized, no shares issued and outstanding
|
-
|
-
|
||||||
|
Common stock, $.01 par value, 20,000,000 shares authorized,
|
||||||||
|
17,309,120 and 17,202,291 shares issued, respectively
|
172
|
172
|
||||||
|
Additional paid-in capital
|
290,321
|
281,096
|
||||||
|
Accumulated other comprehensive gain
|
2,799
|
2,782
|
||||||
|
Retained earnings
|
227,265
|
223,772
|
||||||
|
Treasury stock at cost, 2,214,737 shares
|
(31,628
|
)
|
(31,628
|
)
|
||||
|
Total USPH shareholders’ equity
|
488,929
|
476,194
|
||||||
|
Non-controlling interest - permanent equity
|
1,092
|
1,216
|
||||||
|
Total USPH shareholders' equity and non-controlling interest - permanent equity
|
490,021
|
477,410
|
||||||
|
Total liabilities, redeemable non-controlling interest,
|
||||||||
|
USPH shareholders' equity and non-controlling interest - permanent equity
|
$
|
1,167,467
|
$
|
997,238
|
||||
|
|
||||||||
|
U.S. Physical Therapy Press Release
|
Page 12
|
|
February 26, 2025
|
|
Year Ended
|
||||||||
|
December 31, 2024
|
December 31, 2023
|
|||||||
|
OPERATING ACTIVITIES
|
||||||||
|
Net income including non-controlling interest
|
$
|
45,600
|
$
|
37,220
|
||||
|
Adjustments to reconcile net income including non-controlling interest to
net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
18,681
|
15,695
|
||||||
|
Provision for credit losses
|
6,912
|
6,172
|
||||||
|
Equity-based awards compensation expense
|
7,823
|
7,236
|
||||||
|
Amortization of debt issue costs
|
422
|
420
|
||||||
|
Change in deferred income taxes
|
5,365
|
4,490
|
||||||
|
Change in revaluation of put-right liability
|
82
|
(2,582
|
)
|
|||||
|
Change in fair value of contingent earn-out consideration
|
219
|
1,550
|
||||||
|
Equity of earnings in unconsolidated affiliate
|
(1,014
|
)
|
(955
|
)
|
||||
|
Loss on sale of clinics and fixed assets
|
836
|
166
|
||||||
|
Impairment of goodwill and other intangible assets
|
- |
17,495
|
||||||
| Impairment of assets held for sale |
2,418 |
- |
||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Increase in patient accounts receivable
|
(5,346
|
)
|
(5,645
|
)
|
||||
|
Increase in accounts receivable - other
|
(6,548
|
)
|
(356
|
)
|
||||
|
Increase in other current and long term assets
|
(818
|
)
|
(197
|
)
|
||||
|
Decrease in accounts payable and accrued expenses
|
1,713
|
15
|
||||||
|
(Increase) decrease in accounts payable and accrued expenses
|
(1,405
|
)
|
1,254
|
|||||
|
Net cash provided by operating activities
|
74,940
|
81,978
|
||||||
|
INVESTING ACTIVITIES
|
||||||||
|
Purchase of fixed assets
|
(9,186
|
)
|
(9,294
|
)
|
||||
|
Purchase of majority interest in businesses, net of cash acquired
|
(133,087
|
)
|
(26,582
|
)
|
||||
|
Purchase of redeemable non-controlling interest, temporary equity
|
(8,052
|
)
|
(10,986
|
)
|
||||
|
Purchase of non controlling interest, permanent equity
|
(1,004
|
)
|
(281
|
)
|
||||
|
Proceeds on sale of non-controlling interest, permanent equity
|
26
|
102
|
||||||
|
Proceeds on sale of partnership interest - redeemable non-controlling interest, temporary equity
|
79
|
875
|
||||||
|
Distributions from unconsolidated affiliate
|
1,080
|
830
|
||||||
|
Other
|
694
|
321
|
||||||
|
Net cash used in investing activities
|
(149,450
|
)
|
(45,015
|
)
|
||||
|
FINANCING ACTIVITIES
|
||||||||
|
Proceeds from issuance of common stock pursuant to the secondary public offering, net of issuance costs
|
-
|
163,646
|
||||||
|
Proceeds from revolving facility
|
19,000
|
24,000
|
||||||
|
Distributions to non-controlling interest, permanent and temporary equity
|
(14,711
|
)
|
(16,100
|
)
|
||||
|
Cash dividends paid to shareholders
|
(26,540
|
)
|
(24,128
|
)
|
||||
|
Payments on revolving facility
|
(8,000
|
)
|
(55,000
|
)
|
||||
|
Principal payments on notes payable
|
(2,952
|
)
|
(4,400
|
)
|
||||
|
Payments on term loan
|
(3,750
|
)
|
(3,750
|
)
|
||||
|
Net cash (used in) provided by financing activities
|
(36,953
|
)
|
84,268
|
|||||
|
Net (decrease) increase in cash and cash equivalents
|
(111,463
|
)
|
121,231
|
|||||
|
Cash and cash equivalents - beginning of period
|
152,825
|
31,594
|
||||||
|
Cash and cash equivalents - end of period
|
$
|
41,362
|
$
|
152,825
|
||||
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
|
Cash paid during the period for:
|
||||||||
|
Income taxes
|
$
|
4,832
|
$
|
4,926
|
||||
|
Interest paid
|
7,209
|
8,655
|
||||||
|
Non-cash investing and financing transactions during the period:
|
||||||||
|
Purchase of businesses - seller financing portion
|
2,060
|
1,815
|
||||||
|
Liabilities assumed associated with a purchase of a business
|
670
|
524
|
||||||
|
Fair market value of initial contingent consideration related to purchase of businesses
|
17,672
|
200
|
||||||
|
Notes payable related to purchase of redeemable non-controlling interest, temporary equity
|
71
|
1,087
|
||||||
|
Notes payable related to the purchase of non-controlling interest, permanent equity
|
-
|
200
|
||||||
|
Notes receivable related to sale of redeemable non-controlling interest
|
1,890
|
4,136
|
||||||
|
Notes receivable related to the sale of non-controlling interest, permanent equity
|
282
|
458
|
||||||
|
Offset to notes receivable associated with purchase of redeemable non-controlling interest
|
726
|
-
|
||||||
|
Issuance of restricted stock related to purchase of business
|
$
|
1,500
|
$
|
-
|
||||
|
U.S. Physical Therapy Press Release
|
Page 13
|
|
February 26, 2025
|
|
U.S. Physical Therapy Press Release
|
Page 14
|
|
February 26, 2025
|
|
|
Three Months Ended
|
For the Year Ended
|
||||||||||||||
|
|
December 31, 2024
|
December 31, 2023
|
December 31, 2024
|
December 31, 2023
|
||||||||||||
|
(In thousands, except per share data)
|
||||||||||||||||
|
Adjusted EBITDA (a non-GAAP measure)
|
||||||||||||||||
|
Net income attributable to USPH shareholders
|
$
|
9,244
|
$
|
656
|
$
|
31,424
|
$
|
28,239
|
||||||||
|
Adjustments:
|
||||||||||||||||
|
Provision for income taxes
|
5,828
|
1,399
|
14,609
|
12,156
|
||||||||||||
|
Depreciation and amortization
|
5,685
|
4,113
|
18,681
|
15,695
|
||||||||||||
|
Interest expense, debt and other, net
|
2,049
|
2,010
|
8,015
|
9,303
|
||||||||||||
|
Interest income from investments
|
(306
|
)
|
(1,583
|
)
|
(3,941
|
)
|
(3,774
|
)
|
||||||||
|
Impairment of goodwill and other intangible assets
|
-
|
17,495
|
-
|
17,495
|
||||||||||||
|
Impairment of assets held for sale
|
2,418
|
-
|
2,418
|
-
|
||||||||||||
|
Equity-based awards compensation expense
|
1,986
|
1,785
|
7,823
|
7,236
|
||||||||||||
|
Change in revaluation of put-right liability
|
(54
|
)
|
(2,926
|
)
|
82
|
(2,582
|
)
|
|||||||||
|
Change in fair value of contingent earn-out consideration
|
(5,113
|
)
|
1,747
|
219
|
1,550
|
|||||||||||
|
Clinic closure costs (1)
|
246
|
14
|
4,355
|
175
|
||||||||||||
|
Business acquisition related costs (2)
|
505
|
-
|
819
|
-
|
||||||||||||
|
Relief Funds
|
-
|
-
|
-
|
(467
|
)
|
|||||||||||
|
Other income
|
(96
|
)
|
(85
|
)
|
(357
|
)
|
(390
|
)
|
||||||||
|
Allocation to non-controlling interests
|
(590
|
)
|
(5,623
|
)
|
(2,379
|
)
|
(6,724
|
)
|
||||||||
|
$
|
21,802
|
$
|
19,002
|
$
|
81,768
|
$
|
77,912
|
|||||||||
|
Operating Results (a non-GAAP measure)
|
||||||||||||||||
|
Net income attributable to USPH shareholders
|
$
|
9,244
|
$
|
656
|
$
|
31,424
|
$
|
28,239
|
||||||||
|
Adjustments:
|
||||||||||||||||
|
Impairment of goodwill and other intangible assets
|
-
|
17,495
|
-
|
17,495
|
||||||||||||
|
Impairment of assets held for sale
|
2,418
|
-
|
2,418
|
-
|
||||||||||||
|
Change in fair value of contingent earn-out consideration
|
(5,113
|
)
|
1,747
|
219
|
1,550
|
|||||||||||
|
Change in revaluation of put-right liability
|
(54
|
)
|
(2,926
|
)
|
82
|
(2,582
|
)
|
|||||||||
|
Clinic closure costs (1)
|
246
|
14
|
4,355
|
175
|
||||||||||||
|
Business acquisition related costs (2)
|
505
|
-
|
819
|
-
|
||||||||||||
|
Relief Funds
|
-
|
-
|
-
|
(467
|
)
|
|||||||||||
|
Allocation to non-controlling interest
|
(8
|
)
|
(5,251
|
)
|
(521
|
)
|
(5,196
|
)
|
||||||||
|
Tax effect at statutory rate (federal and state)
|
513
|
(2,830
|
)
|
(1,884
|
)
|
(2,804
|
)
|
|||||||||
|
$
|
7,751
|
$
|
8,905
|
$
|
36,912
|
$
|
36,410
|
|||||||||
|
Operating Results per share (a non-GAAP measure)
|
$
|
0.51
|
$
|
0.59
|
$
|
2.45
|
$
|
2.57
|
||||||||
|
Earnings per share
|
||||||||||||||||
|
Computation of earnings per share - USPH shareholders:
|
||||||||||||||||
|
Net income attributable to USPH shareholders
|
$
|
9,244
|
$
|
656
|
$
|
31,424
|
$
|
28,239
|
||||||||
|
Charges to retained earnings:
|
||||||||||||||||
|
Revaluation of redeemable non-controlling interest
|
(1,806
|
)
|
(8,577
|
)
|
(4,964
|
)
|
(13,565
|
)
|
||||||||
|
Tax effect at statutory rate (federal and state)
|
462
|
2,191
|
1,268
|
3,466
|
||||||||||||
|
$
|
7,900
|
$
|
(5,730
|
)
|
$
|
27,728
|
$
|
18,140
|
||||||||
|
Earnings per share (basic and diluted)
|
$
|
0.52
|
$
|
(0.38
|
)
|
$
|
1.84
|
$
|
1.28
|
|||||||
|
Shares used in computation - basic and diluted
|
15,089
|
14,987
|
15,064
|
14,188
|
||||||||||||
|
(1) Costs associated with the closure of 2 and 45 clinics during the 2024
Fourth Quarter and 2024 Year, respectively. Closure costs in the 2023 Fourth Quarter and 2023 Year were not material.
|
|
(2) Primarily consists of legal and consulting expenses related to the
acquisition of 50% equity interest in a management services organization that provides management and administrative services to 50 physical therapy clinics.
|
|
U.S. Physical Therapy Press Release
|
Page 15
|
|
February 26, 2025
|
|
Three Months Ended
|
||||||||||||||||
|
December 31, 2024
|
December 31, 2023
|
|||||||||||||||
|
As Reported
(GAAP) |
Closure
Costs (1) |
Non-Cash Impairment (2)
|
As Adjusted
(Non-GAAP) |
As Reported
(GAAP) |
Closure
Costs (1) |
Non-Cash Impairment (2)
|
As Adjusted
(Non-GAAP) |
|||||||||
|
(in thousands, except per share data, and percentages)
|
||||||||||||||||
|
Operating income (loss)
|
$ 14,538
|
$ 246
|
$ 2,418
|
$ 17,202
|
$ (880)
|
$ 14
|
$ 17,495
|
$ 16,629
|
||||||||
|
Provision for taxes
|
5,828
|
(63)
|
(618)
|
5,147
|
1,399
|
(4)
|
(3,129)
|
(1,734)
|
||||||||
|
Minority interest
|
(3,250)
|
24
|
-
|
(3,226)
|
1,949
|
2
|
(5,249)
|
(3,298)
|
||||||||
|
USPH Net Income
|
9,244
|
207
|
1,800
|
11,251
|
656
|
12
|
9,117
|
9,785
|
||||||||
|
Earnings per share
|
$ 0.52
|
$ 0.01
|
$ 0.12
|
$ 0.65
|
$ (0.38)
|
$ 0.00
|
$ 0.61
|
$ 0.23
|
||||||||
|
For the Year Ended
|
||||||||||||||||
|
December 31, 2024
|
December 31, 2023
|
|||||||||||||||
|
As Reported
(GAAP) |
Closure
Costs (1) |
Non-Cash Impairment (2)
|
As Adjusted
(Non-GAAP) |
As Reported
(GAAP) |
Closure
Costs (1) |
Non-Cash Impairment (2)
|
As Adjusted
(Non-GAAP) |
|||||||||
|
(in thousands, except per share data, and percentages)
|
||||||||||||||||
|
Operating costs
|
$ 547,424
|
$ (4,355)
|
$ -
|
$ 543,069
|
$ 483,293
|
$ (175)
|
$ -
|
$ 483,118
|
||||||||
|
Gross profit
|
123,921
|
4,355
|
-
|
128,276
|
121,509
|
175
|
-
|
121,684
|
||||||||
|
Gross margin
|
18.5%
|
*
|
*
|
19.1%
|
20.1%
|
*
|
*
|
20.1%
|
||||||||
|
Operating income
|
63,213
|
4,355
|
2,418
|
69,986
|
52,061
|
175
|
17,495
|
69,731
|
||||||||
|
Provision for taxes
|
14,609
|
(1,113)
|
(618)
|
12,878
|
12,156
|
(45)
|
(3,129)
|
8,982
|
||||||||
|
Minority interest
|
(14,176)
|
492
|
-
|
(13,684)
|
(8,981)
|
20
|
(5,249)
|
(14,210)
|
||||||||
|
USPH Net Income
|
31,424
|
3,734
|
1,800
|
36,958
|
28,239
|
150
|
9,117
|
37,506
|
||||||||
|
Earnings per share
|
$ 1.84
|
$ 0.25
|
$ 0.12
|
$ 2.21
|
$ 1.28
|
$ 0.01
|
$ 0.64
|
$ 1.93
|
||||||||
|
Segment information - Physical Therapy Operations
|
||||||||||||||||
|
Operating costs
|
$ 470,485
|
$ (4,355)
|
$ -
|
$ 466,130
|
$ 421,484
|
$ (175)
|
$ -
|
$ 421,309
|
||||||||
|
Gross profit
|
$ 103,948
|
$ 4,355
|
$ -
|
$ 108,303
|
$ 105,064
|
$ 175
|
-
|
$ 105,239
|
||||||||
|
Gross margin
|
18.1%
|
*
|
*
|
18.9%
|
20.0%
|
*
|
*
|
20.0%
|
||||||||
|
|
||||||||||||||||
|
(1) Costs associated with the closure of 45 clinics during the 2024 Year. Closure costs for the comparable prior year periods were not material. We believe that
presenting this information will allow investors to evaluate the performance of the Company's business more objectively.
(2) A non-cash impairment charge of $2.4 million was recognized during the 2024 Fourth Quarter related to the impairment of assets held for sale, while $17.5 million of
a non-cash impairment charge was recognized during the 2023 Fourth Quarter related to a reporting unit in the Company’s IIP segment.
|
||||||||||||||||
|
* Not meaningful
|
||||||||||||||||
|
U.S. Physical Therapy Press Release
|
Page 16
|
|
February 26, 2025
|
|
Number of
Clinics (2)
|
Net Rate Per
Patient Visit (1)
|
Patient Visits (1)
|
Average Daily Visits
Per Clinic (1)
|
|||||||||||||||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||||||||||||||
|
First Quarter
|
679
|
647
|
$
|
103.37
|
$
|
103.12
|
1,268,002
|
1,227,490
|
29.5
|
29.8
|
||||||||||||||||||||||
|
Second quarter
|
681
|
656
|
$
|
105.05
|
$
|
102.03
|
1,335,335
|
1,267,140
|
30.6
|
30.4
|
||||||||||||||||||||||
|
Third quarter
|
661
|
672
|
$
|
105.65
|
$
|
102.37
|
1,317,051
|
1,242,954
|
30.1
|
29.7
|
||||||||||||||||||||||
|
Fourth quarter
|
729
|
671
|
$
|
104.73
|
$
|
103.68
|
1,432,801
|
1,267,842
|
31.7
|
29.9
|
||||||||||||||||||||||
|
Year
|
729
|
671
|
$
|
104.71
|
$
|
102.80
|
5,353,189
|
5,005,426
|
30.4
|
30.0
|
||||||||||||||||||||||
|
(1)
|
See definition of the metrics above in the Glossary of Terms – Revenue Metrics on page 8.
|
|
(2)
|
The Company also has management contracts whereby it manages clinics owned by third parties. In
addition to the clinic count shown above, as of December 31, 2024, the Company managed 39 clinics through the aforementioned management contracts bringing the total owned/managed clinics to 768. As of December 31, 2023, the Company
managed 43 clinics bringing the total owned/managed clinics to 714.
|
|
For the Three Months Ended
|
For the Year Ended
|
||||||
|
December 31, 2024
|
December 31, 2023
|
December 31, 2024
|
December 31, 2023
|
||||
|
Number of clinics owned or managed, beginning of period
|
661
|
672
|
671
|
640
|
|||
|
Additions (2)
|
70
|
6
|
103
|
46
|
|||
|
Closed or sold
|
(2)
|
(7)
|
(45)
|
(15)
|
|||
|
Number of clinics owned or managed,
end of period
|
729
|
671
|
729
|
671
|
|||
|
(1)
|
The Company also manages clinics owned by third parties through management contracts. In
addition to the clinic count shown above, as of December 31, 2024, the Company managed 39 clinics bringing the total owned/managed clinics to 768. As of December 31, 2023, the Company managed 43 clinics bringing the total
owned/managed clinics to 714.
|
|
(2)
|
Includes clinics added through acquisitions.
|