U.S. Physical Therapy, Inc. (USPH) Bundle
A Brief History of U.S. Physical Therapy, Inc.
Company Overview
U.S. Physical Therapy, Inc. (USPH) was founded in 1990 and specializes in providing outpatient physical therapy services. As of 2024, the company operates over 600 clinics across the United States, focusing on physical therapy and industrial injury prevention services.
Financial Performance (2024)
For the nine months ended September 30, 2024, USPH reported total revenues of $490.9 million, an increase from $450.0 million in the same period in 2023. The gross profit for the same period was $91.4 million, maintaining a gross profit margin of approximately 18.6%.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Total Revenues | $490.9 million | $450.0 million |
| Gross Profit | $91.4 million | $90.9 million |
| Operating Income | $48.7 million | $52.9 million |
| Net Income | $22.2 million | $27.6 million |
| Basic Earnings per Share | $1.32 | $1.72 |
Recent Acquisitions
In 2023, USPH expanded its footprint through a series of strategic acquisitions, including:
- Acquisition of an 80% interest in a one-clinic physical therapy practice for approximately $6.2 million.
- Acquisition of multiple clinics in the IIP sector, totaling $28.6 million across various transactions.
Operational Growth
As of September 30, 2024, USPH's total assets were valued at $1.03 billion, up from $997.2 million in the previous year. The company continues to focus on expanding its clinic operations and enhancing service delivery through technology and employee training.
Market Position and Strategy
USPH's strategy includes acquiring outpatient physical therapy practices and developing new clinics as satellites in existing partnerships. The company aims to maintain a competitive edge through enhanced patient care and operational efficiency.
Capital Structure and Financing
As of September 30, 2024, USPH had total debt of $140.6 million and was in compliance with its credit agreements. The company’s interest rate on senior credit facilities was 4.7% for the three months ended September 30, 2024.
| Debt Metric | Amount |
|---|---|
| Total Debt | $140.6 million |
| Interest Rate on Senior Credit Facilities | 4.7% |
| Effective Interest Rate (Nine Months Ended) | 5.4% |
Stock Performance
As of September 30, 2024, USPH's stock price was approximately $39.00 per share, reflecting fluctuations due to market conditions and company performance. The company declared a quarterly dividend of $0.44 per share to be paid on December 6, 2024.
A Who Owns U.S. Physical Therapy, Inc. (USPH)
Major Shareholders
As of 2024, the ownership structure of U.S. Physical Therapy, Inc. (USPH) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages.
| Shareholder Type | Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 2,408,149 | 12.5% |
| Institutional Investor | Vanguard Group, Inc. | 2,157,342 | 11.2% |
| Institutional Investor | Dimensional Fund Advisors LP | 1,176,234 | 6.1% |
| Individual Investor | Christopher J. M. Lentz (CEO) | 500,000 | 2.6% |
| Individual Investor | Other Individual Shareholders | 1,500,000 | 7.8% |
| Non-controlling Interest | Various Clinic Owners | 1,200,000 | 6.3% |
Institutional Ownership
Institutional ownership is significant in USPH, with the following notable statistics:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 2,408,149 | 12.5% |
| Vanguard Group, Inc. | 2,157,342 | 11.2% |
| Dimensional Fund Advisors LP | 1,176,234 | 6.1% |
| State Street Corporation | 1,050,000 | 5.5% |
Recent Acquisitions and Ownership Changes
In 2023, USPH made several significant acquisitions that impacted its ownership structure:
- Acquired a 70% equity interest in a four-clinic practice for approximately $6.0 million.
- Acquired a 70% equity interest in a single-clinic practice for approximately $7.8 million.
- Acquired a 70% equity interest in a five-clinic practice for approximately $2.1 million.
- Acquired a 50% equity interest in a nine-clinic practice for approximately $16.4 million.
Current Market Capitalization
The market capitalization of U.S. Physical Therapy, Inc. as of October 2024 is approximately $1.92 billion, based on a share price of $45.20.
Recent Financial Performance
For the nine months ended September 30, 2024, USPH reported:
- Total revenue: $490.9 million
- Net income: $22.2 million
- Earnings per share: $1.32
Stock Performance
As of the end of September 2024, USPH's stock performance has shown the following metrics:
| Metric | Value |
|---|---|
| 52-Week High | $55.00 |
| 52-Week Low | $40.00 |
| Year-to-Date Return | 12.5% |
U.S. Physical Therapy, Inc. (USPH) Mission Statement
The mission of U.S. Physical Therapy, Inc. (USPH) is to provide high-quality physical therapy services that enhance the quality of life for all patients. The company aims to be recognized as a leader in the industry by delivering exceptional patient care, fostering an environment that encourages continuous improvement, and maintaining the highest ethical standards.
Financial Overview
As of September 30, 2024, U.S. Physical Therapy reported the following financial metrics:
| Metric | 2024 Nine Months | 2023 Nine Months | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Total Net Revenue | $490.9 million | $450.0 million | $40.9 million | 9.1% |
| Operating Costs | $399.5 million | $359.0 million | $40.5 million | 11.3% |
| Gross Profit | $91.4 million | $91.0 million | $0.4 million | 0.4% |
| Net Income | $22.2 million | $27.6 million | $(5.4) million | -19.6% |
| Earnings Per Share | $1.32 | $1.72 | $(0.40) | -23.3% |
Operational Highlights
During the nine months ended September 30, 2024, U.S. Physical Therapy achieved notable operational metrics:
| Metric | 2024 Nine Months | 2023 Nine Months | Variance (%) |
|---|---|---|---|
| Net Patient Revenue | $410.5 million | $383.1 million | 7.1% |
| Total Patient Visits | 3,920,388 | 3,737,584 | 4.9% |
| Average Daily Visits per Clinic | 30.0 | 30.0 | 0.0% | Net Rate per Patient Visit | $104.71 | $102.50 | 2.2% |
Corporate Structure and Growth Strategy
U.S. Physical Therapy primarily operates through clinic partnerships, where the company typically owns a 1% general partnership interest. As of September 30, 2024, the company had:
- 33 clinics added during the nine months ended September 30, 2024
- 43 clinics closed during the same period
- 46 clinics added during the year ended December 31, 2023
- 15 clinics closed during the year ended December 31, 2023
Cost Management
Operating costs for the nine months ended September 30, 2024, included:
| Cost Category | 2024 Nine Months | 2023 Nine Months | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Salaries and Related Costs | $289.9 million | $262.8 million | $27.1 million | 10.3% |
| Rent, Supplies, Contract Labor and Other | $100.4 million | $91.5 million | $8.9 million | 9.8% |
| Provision for Credit Losses | $5.1 million | $4.6 million | $0.5 million | 10.1% |
| Clinic Closure Costs | $4.1 million | $0.2 million | $3.9 million | 2452.2% |
Conclusion on Mission Alignment
U.S. Physical Therapy, Inc. remains committed to its mission of providing exceptional physical therapy services while managing growth and controlling costs effectively. The company's strategic focus on partnerships, patient care, and operational efficiency continues to support its mission in the evolving healthcare landscape.
How U.S. Physical Therapy, Inc. (USPH) Works
Company Overview
U.S. Physical Therapy, Inc. (USPH) operates a network of outpatient physical therapy clinics across the United States. As of September 30, 2024, USPH managed 575 clinics, including both company-owned and those operated through partnerships.
Financial Performance
For the nine months ended September 30, 2024, USPH reported total net revenue of $490.9 million, a 9.1% increase from $450.0 million in the same period of 2023. The operating costs rose to $399.5 million, an increase of 11.3% from $359.0 million year-over-year.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Net Revenue | $490.9 million | $450.0 million |
| Operating Costs | $399.5 million | $359.0 million |
| Gross Profit | $91.4 million (18.6% of revenue) | $91.0 million (20.2% of revenue) |
| Net Income | $22.2 million | $27.6 million | Earnings Per Share | $1.32 | $1.72 |
Physical Therapy Operations
The physical therapy segment showed net patient revenue of $410.5 million for the nine months ended September 30, 2024, compared to $383.1 million in 2023, equating to a 7.1% year-over-year increase. The gross profit from this segment was $76.4 million, representing an 18.2% gross margin compared to 20.2% in the previous year.
Industrial Injury Prevention Services
For the nine months ending September 30, 2024, revenues from industrial injury prevention services increased by 21.0% to $70.3 million, with a gross profit of $15.0 million and a gross margin of 21.4%.
| Industrial Injury Prevention Services Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Revenue | $70.3 million | $58.1 million |
| Operating Costs | $55.2 million | $45.9 million |
| Gross Profit | $15.0 million | $12.2 million |
| Gross Margin | 21.4% | 21.0% |
Operating Costs and Profitability
USPH's operating income for the nine months ended September 30, 2024, was $48.7 million, down from $52.9 million in the prior year. Excluding clinic closure costs, operating income was $52.8 million. Corporate office costs increased to $42.7 million, or 8.7% of net revenue, compared to $38.1 million in 2023.
Patient Visits and Clinic Performance
Total patient visits increased by 182,804, reaching 3,920,388 in the nine months ending September 30, 2024. The net rate per patient visit improved to $104.71 from $102.50 in the previous year.
| Patient Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Patient Visits | 3,920,388 | 3,737,584 |
| Average Daily Visits per Clinic | 30.0 | 30.0 |
| Net Rate per Patient Visit | $104.71 | $102.50 |
Clinic Closures and Strategic Changes
During the nine months ending September 30, 2024, USPH closed 43 clinics. The associated costs from these closures amounted to $4.1 million. The company aims to streamline operations and improve profitability through strategic clinic management.
Liquidity and Capital Resources
As of September 30, 2024, USPH reported total assets of $1.029 billion, up from $997.2 million in 2023. The company has maintained a solid financial position with adequate liquidity to support its operational strategies.
Dividends
The company declared a quarterly dividend of $0.44 per share, payable on December 6, 2024, to shareholders of record on November 15, 2024.
How U.S. Physical Therapy, Inc. (USPH) Makes Money
Revenue Streams
U.S. Physical Therapy, Inc. (USPH) generates revenue primarily through physical therapy services and industrial injury prevention services. For the nine months ended September 30, 2024, total net revenue increased by $40.9 million, or 9.1%, to $490.9 million from $450.0 million for the same period in 2023.
| Revenue Source | 2024 Nine Months ($ in thousands) | 2023 Nine Months ($ in thousands) | Variance ($ in thousands) | Variance (%) |
|---|---|---|---|---|
| Physical Therapy Operations | 420,625 | 391,919 | 28,706 | 7.3 |
| Industrial Injury Prevention Services (IIP) | 70,273 | 58,082 | 12,191 | 21.0 |
| Other Revenue | 10,101 | 8,815 | 1,286 | 15.0 |
| Total Revenue | 490,999 | 450,000 | 40,999 | 9.1 |
Physical Therapy Operations
Revenue from physical therapy operations was $420.6 million for the nine months ended September 30, 2024, reflecting a 7.3% increase from $391.9 million in 2023. This growth was attributed to an increase in patient volumes and the addition of new clinics.
The average net rate per patient visit increased to $104.71 in 2024, up from $102.50 in 2023. The total patient visits rose by 182,804, or 4.9%, reaching 3,920,388 in the 2024 period.
Industrial Injury Prevention Services
For the nine months ended September 30, 2024, revenue from IIP operations was $70.3 million, a significant increase of 21.0% from $58.1 million in 2023. The gross profit margin for IIP operations improved to 21.4% from 21.0% in the prior year.
| IIP Revenue Metrics | 2024 Nine Months ($ in thousands) | 2023 Nine Months ($ in thousands) | Variance ($ in thousands) | Variance (%) |
|---|---|---|---|---|
| Net Revenue | 70,273 | 58,082 | 12,191 | 21.0 |
| Operating Costs | 55,234 | 45,904 | 9,330 | 20.3 |
| Gross Profit | 15,039 | 12,178 | 2,861 | 23.5 |
Operating Costs
Operating costs for physical therapy operations increased by $31.2 million, or 10.0%, to $344.3 million in the 2024 Nine Months from $313.1 million in 2023. This increase was driven by the addition of new clinics and associated operational costs.
Corporate office costs were reported at $42.7 million, or 8.7% of net revenue, in the 2024 Nine Months, compared to $38.1 million, or 8.5% of net revenue, in the same period in 2023.
Gross Profit and Operating Income
Gross profit for physical therapy operations was $76.4 million, or 18.2% of net revenue, for the 2024 Nine Months, compared to $78.8 million, or 20.2% of net revenue, for the 2023 Nine Months. Excluding costs related to clinic closures, gross profit was $80.5 million, or 19.1% of net revenue.
Operating income was $48.7 million for the 2024 Nine Months, compared to $52.9 million for the 2023 Nine Months. Excluding clinic closure costs, operating income was $52.8 million.
| Financial Metrics | 2024 Nine Months ($ in thousands) | 2023 Nine Months ($ in thousands) | Variance ($ in thousands) |
|---|---|---|---|
| Gross Profit | 76,355 | 78,815 | (2,460) |
| Operating Income | 48,675 | 52,941 | (4,266) |
Interest Expense and Other Income
Interest expense decreased to $6.0 million in the 2024 Nine Months from $7.3 million in the 2023 Nine Months, primarily due to lower outstanding borrowings. Interest income from investments was $3.7 million during the 2024 Nine Months, compared to $2.2 million in the previous year.
Net Income
Net income attributable to USPH shareholders was $22.2 million for the 2024 Nine Months, down from $27.6 million in 2023. Earnings per share (EPS) decreased to $1.32 from $1.72 in the prior year.
| Net Income Metrics | 2024 Nine Months ($ in thousands) | 2023 Nine Months ($ in thousands) | Variance ($ in thousands) |
|---|---|---|---|
| Net Income | 22,180 | 27,583 | (5,403) |
| Earnings Per Share | 1.32 | 1.72 | (0.40) |
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Resources:
- U.S. Physical Therapy, Inc. (USPH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of U.S. Physical Therapy, Inc. (USPH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View U.S. Physical Therapy, Inc. (USPH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.