Investors interested in Medical - Outpatient and Home Healthcare stocks are likely familiar with Elanco Animal Health Incorporated (ELAN) and U.S. Physical Therapy (USPH) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that ta ...

US Physical Therapy (USPH) FY Conference June 11, 2025 10:45 AM ET Speaker0 Okay. We're gonna go ahead and get started with the next presentation. off, thank you everyone for being here today. My name is Joe Noyans. I'm with Three Part Advisors. Up next, we have one of our investor relations clients, US Physical Therapy. US Physical Therapy is traded on the New York Stock Exchange under the symbol USPH. They're operating in 44 states across The US with nearly 800 locations. Also, they're a leader in in PT, ...

Investors in U.S. Physical Therapy, Inc. (USPH) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 20, 2025 $105 Call  had some of the highest implied volatility of all equity options today. What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

Business Segments and Operations - The company operates through two reportable business segments: physical therapy and industrial injury prevention services, with a focus on orthopedic-related disorders and sports injuries [158]. - As of March 31, 2025, the company owned or managed a total of 736 clinics, an increase from 679 clinics as of March 31, 2024, reflecting a net addition of 57 clinics [164]. - The company managed 37 clinics owned by third parties as of March 31, 2025, bringing the total owned/managed clinics to 773 [164]. - The company plans to continue acquiring outpatient physical therapy practices and expand its industrial injury prevention services [165]. - The company completed several acquisitions, including a 65% interest in 3 clinics in February 2025 and a 75% interest in 8 clinics in November 2024 [161]. - The company acquired an outpatient home care therapy practice through its 50% owned subsidiary, generating approximately $2.1 million in annual revenue [166]. Financial Performance - Net revenue for the 2025 First Quarter increased by $28.1 million, or 18.1%, to $183.8 million compared to $155.7 million in the 2024 First Quarter [176]. - Net patient revenue rose to $152.5 million, representing an increase of 16.4% from $131.1 million in the prior year [175]. - Operating income was $19.6 million for the 2025 First Quarter, an increase from $14.9 million in the 2024 First Quarter [211]. - Net income attributable to USPH shareholders was $9.9 million, a 23.0% increase from $8.0 million in the 2024 First Quarter [179]. - Earnings per share for the 2025 First Quarter was $0.80, compared to $0.46 in the 2024 First Quarter [181]. - Adjusted EBITDA for the 2025 First Quarter was $19.5 million, an increase of 16.5% from $16.8 million in the prior year [193]. Revenue and Cost Analysis - Operating costs increased by $25.4 million, or 20.0%, to $152.7 million, driven by the addition of 53 net clinics and an increase in patient visits [176]. - Gross profit for the 2025 First Quarter was $31.1 million, or 16.9% of net revenue, down from 18.2% in the previous year [178]. - The net rate per patient visit increased to $105.66, up $2.29 from $103.37 in the 2024 First Quarter, despite a 2.9% Medicare rate reduction [177]. - Industrial Injury Prevention (IIP) revenue increased by $6.1 million, or 28.8%, to $27.4 million for the 2025 First Quarter compared to $21.3 million for the 2024 First Quarter [208]. - Operating costs increased by $20.6 million, or 18.6%, to $130.9 million in the 2025 First Quarter, primarily due to the addition of 53 net new clinics [202]. - Gross profit from physical therapy operations was $25.5 million with a gross profit margin of 16.3% in the 2025 First Quarter, compared to $24.1 million and a margin of 17.9% in the 2024 First Quarter [207]. Cash Flow and Financing - Total cash and cash equivalents were $39.2 million as of March 31, 2025, down from $132.3 million at March 31, 2024 [220]. - Cash used by operating activities was $4.7 million for the 2025 First Quarter, compared to $4.4 million provided by operating activities for the 2024 First Quarter [226]. - Cash used in investing activities for Q1 2025 totaled $6.6 million, primarily for business interests and fixed asset purchases [227]. - Cash provided by financing activities for Q1 2025 was $9.1 million, mainly from $17.0 million in proceeds from the Revolving Facility [228]. - As of March 31, 2025, $135.9 million was outstanding on the Term Facility, with an interest rate of 4.9% for Q1 2025 [237]. Interest Rates and Debt - The company has a $150 million Term Facility with quarterly amortization and a maturity date of June 17, 2027 [234]. - The interest rate swap agreement has a notional value of $150 million, with a fixed rate of 2.815% [238]. - A 1% change in interest rates would yield an additional $0.1 million in interest expense on seller notes and $0.3 million on Credit Facilities due to the interest rate swap [252]. - The company was in compliance with all covenants in the Credit Agreement as of March 31, 2025 [235]. Employee and Operational Considerations - The company emphasizes the importance of hiring and retaining qualified employees, which is critical for its operations [160]. Dividends - The company declared a quarterly dividend of $0.45 per share, payable on June 13, 2025, to shareholders of record on May 23, 2025 [165]. Medicare Reimbursement - The Medicare reimbursement for therapy services decreased by approximately 2.9% for 2025 compared to the rates in effect for most of 2024, following a 1.8% reduction for the balance of 2024 [169]. - The company faced a 3.5% decrease in Medicare payments for therapy services from January 1 to March 8, 2024, which was later minimized to a 1.8% reduction [169].

Core Viewpoint - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, but down from $0.51 per share a year ago, indicating a mixed performance in earnings [1] Financial Performance - The company achieved revenues of $183.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.60% and showing an increase from $155.68 million year-over-year [2] - Over the last four quarters, U.S. Physical Therapy has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - U.S. Physical Therapy shares have declined approximately 19.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $189.46 million, and for the current fiscal year, it is $2.63 on revenues of $752.89 million [7] - The estimate revisions trend for U.S. Physical Therapy is mixed, which may change following the recent earnings report [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which U.S. Physical Therapy belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

US Physical Therapy (USPH) Q1 2025 Earnings Call May 08, 2025 10:30 AM ET Company Participants Christopher Reading - Chairman & CEOJason Curtis - SVP - Finance & AccountingCarey Hendrickson - Chief Financial OfficerBenjamin Rossi - Equity Research AssociateEric Williams - President & COOJared Haase - Equity Research AssociateConstantine Davides - Managing DirectorMichael Petusky - Managing Director Conference Call Participants Joanna Gajuk - Equity Research AnalystBrian Tanquilut - Equity Research Analyst - ...

US Physical Therapy (USPH) Q1 2025 Earnings Call May 08, 2025 10:30 AM ET Speaker0 everyone, and thank you for standing by. Welcome to the U. S. Physical Therapy First Quarter twenty twenty five Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I'd now like to turn the call over to Chris Redding, Chairman and CEO. Please go ahead, sir. Speaker1 ...

Core Viewpoint - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.46 per share, and showing a decline from $0.51 per share a year ago, indicating a -10.87% earnings surprise [1] Financial Performance - The company posted revenues of $183.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.60%, compared to $155.68 million in the same quarter last year [2] - Over the last four quarters, U.S. Physical Therapy has exceeded consensus revenue estimates four times [2] Stock Performance - U.S. Physical Therapy shares have declined approximately 19.3% since the beginning of the year, while the S&P 500 has decreased by -4.7% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $189.46 million, and for the current fiscal year, it is $2.63 on revenues of $752.89 million [7] - The estimate revisions trend for U.S. Physical Therapy is mixed, which may change following the recent earnings report [6] Industry Context - The Medical - Outpatient and Home Healthcare industry is currently in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Adjusted EBITDA for Q1 2025 was $19.5 million, a 16.5% increase from $16.8 million in Q1 2024[19] - Net income attributable to USPH's shareholders for Q1 2025 was $9.9 million, compared to $8.0 million in Q1 2024, with earnings per share rising to $0.80 from $0.46[18] - Operating income for Q1 2025 was $19.6 million, a 31.6% increase from $14.9 million in Q1 2024[13] - The company reported a net income of $13.5 million for the first quarter of 2025, compared to $11.6 million in the same quarter of 2024, representing a 15.9% increase[33] - Comprehensive income attributable to USPH shareholders for the first quarter of 2025 was $8.9 million, down from $9.4 million in the same quarter of 2024[34] - Net income including non-controlling interest for the three months ended March 31, 2025, was $13,468 thousand, compared to $11,617 thousand for the same period in 2024, reflecting a year-over-year increase of 15.9%[38] - Adjusted EBITDA for the first quarter of 2025 was $19,539 thousand, up from $16,771 thousand in the first quarter of 2024, indicating a growth of 10.5%[45] - Basic and diluted earnings per share attributable to USPH shareholders increased to $0.80 for the first quarter of 2025, compared to $0.46 in the same quarter of 2024[33] - Earnings per share (basic and diluted) for the first quarter of 2025 were $0.80, compared to $0.46 in the first quarter of 2024, reflecting a significant increase of 73.9%[45] Revenue and Patient Metrics - Total revenue from physical therapy operations increased by $22.0 million, or 16.4%, to $156.4 million in Q1 2025[8] - Net patient revenue for the three months ended March 31, 2025, was $152.5 million, up 16.4% from $131.1 million for the same period in 2024[33] - Average daily patient visits per clinic reached an all-time high of 31.4 in Q1 2025, up from 29.5 in Q1 2024, with total patient visits increasing by 13.9%[2] - The number of clinic visits increased to 1,443,805 in Q1 2025, compared to 1,268,002 in Q1 2024, representing a growth of approximately 13.8%[51] - The average net rate per visit rose to $105.66 in Q1 2025, up from $103.37 in Q1 2024, indicating an increase of 2.2%[51] Clinic Operations - The company added 14 clinics and closed 7 clinics, bringing the total clinic count to 773 as of March 31, 2025[2] - The company operated 736 clinics as of March 31, 2025, an increase from 679 clinics a year earlier, reflecting a growth of 8.4%[52] - The company managed a total of 773 clinics (owned and managed) as of March 31, 2025, compared to 720 clinics a year prior, marking a 7.4% increase[53] - The company added 14 new clinics in Q1 2025, maintaining a steady growth trajectory[52] - The company closed or sold 7 clinics in Q1 2025, compared to 6 in Q1 2024, indicating ongoing adjustments in its clinic portfolio[52] Costs and Expenses - Corporate office costs increased to $16.2 million in Q1 2025 from $14.1 million in Q1 2024, but improved as a ratio to net revenue to 8.8%[12] - Total operating costs for the first quarter of 2025 were $152.7 million, an increase from $127.3 million in the same quarter of 2024[33] - Salaries and related costs per visit decreased slightly to $63.58 in Q1 2025 from $63.53 in Q1 2024[48] - Operating costs per visit also saw a minor reduction, from $89.33 in Q1 2024 to $89.28 in Q1 2025[48] - The company incurred clinic closure costs of $242 thousand in Q1 2025, associated with the closure of 7 clinics, compared to $126 thousand for 6 clinics in Q1 2024[45] Cash and Assets - Total cash and cash equivalents decreased to $39.2 million as of March 31, 2025, from $41.4 million as of December 31, 2024, and $132.3 million as of March 31, 2024[20] - Cash and cash equivalents decreased to $39,183 thousand at the end of March 2025, down from $41,362 thousand at the beginning of the period, a decline of 5.3%[38] - Total assets increased to $1,179,687 thousand as of March 31, 2025, up from $1,167,467 thousand at December 31, 2024, representing a growth of 1.9%[36] - The total current liabilities increased to $123,795 thousand as of March 31, 2025, from $116,283 thousand at December 31, 2024, marking a rise of 6.3%[36] - The company’s total liabilities reached $420,679 thousand as of March 31, 2025, an increase from $408,421 thousand at December 31, 2024, representing a growth of 3.2%[36] Dividends and Acquisitions - The company declared a quarterly dividend of $0.45 per share, payable on June 13, 2025[3] - The company declared a quarterly dividend of $0.45 per share, an increase from $0.44 per share in the previous year[24] - The company acquired a 65% equity interest in a three-clinic practice generating $4.3 million in annual revenue[21] - An outpatient home care physical and speech therapy practice was acquired, generating approximately $2.1 million in annual revenue[22] Future Outlook - The company aims to continue acquiring multi-clinic outpatient physical therapy practices and develop outpatient clinics as satellites in existing partnerships[23] - Future outlook includes continued expansion and management of clinics, with a focus on enhancing operational efficiency and profitability[48]

Core Insights - The U.S. outpatient physical and occupational therapy centers industry is valued at $53 billion and is characterized by high fragmentation, with the top 50 competitors accounting for only 29% of total revenues, indicating potential for consolidation [2][3] - Moderate growth is anticipated, driven by factors such as a stable reimbursement environment, outpatient efficiencies, an alternative to opioid therapy, and increasing demand due to an aging population [2][4] Industry Overview - The industry primarily consists of small to medium regional providers, with an average annual revenue of $871,000 [3] - There is a notable increase in mergers and acquisitions (M&A) activity from both strategic buyers and private equity investors [3] - Physical therapists operate in various settings, including hospitals, private practices, outpatient clinics, homes, schools, sports facilities, workplaces, and nursing homes [3] Market Characteristics - The report includes an analysis of industry characteristics, national receipts, growth forecasts from 2007 to 2030, and the impact of the COVID-19 pandemic on operations and revenues [4] - Key industry trends include diversification, technological advancements, consolidation potential, and increased patient engagement tools [8] Financial Metrics - The report provides extensive operating ratios, including metrics such as the number of facilities, receipts, annual payroll, and average receipts per facility from 2002 to 2022 [8] - A sample profit and loss statement for an average physical therapy center in 2024 is included, along with gross profit margins for U.S. Physical Therapy from 2007 to 2023 [8] Growth Forecasts - The analysis projects industry size and growth from 2007 to 2030, with specific forecasts for 2025 and 2030 [13] - Factors influencing demand include the aging population, obesity rates, and the supply of therapists [13] Competitor Analysis - In-depth profiles of key competitors such as U.S. Physical Therapy, ATI Physical Therapy, Select Medical, and others are provided, detailing their operations and financial performance [4][18]