Core Insights - The article highlights two healthcare facility stocks, Concentra Group Holdings and US Physical Therapy, as strong investment opportunities due to favorable market conditions and demographic trends [1][13]. Concentra Group Holdings - Concentra is the largest outpatient provider of occupational health services in the U.S., with a market cap of $2.65 billion and a network of 11,000 health professionals [1]. - The company serves over 50,000 patients daily and operates more than 540 medical centers, treating 1 in 5 workplace injuries [9]. - Concentra's revenue for 2Q25 was $550.8 million, a 15% year-over-year increase, exceeding forecasts by $13.44 million [10]. - The company focuses on occupational health and workplace injury management, partnering with over 239,000 employers [7][8]. - J.P. Morgan analyst Benjamin Rossi rates Concentra as Overweight with a price target of $31, indicating a potential upside of 50% [12]. US Physical Therapy - US Physical Therapy operates outpatient clinics for physical and occupational therapy, with a market cap of $1.2 billion and over 765 clinics across 44 states [13]. - The company reported revenue of $197.3 million in 2Q25, an 18% year-over-year increase, beating forecasts by $7.45 million [16]. - US Physical Therapy is well-positioned to benefit from demographic trends such as an aging population and increasing obesity rates, driving demand for physical therapy services [17]. - Rossi rates US Physical Therapy as Overweight with a price target of $110, suggesting a potential gain of 34% [17].

Core Viewpoint - Investors are evaluating Astrana Health, Inc. (ASTH) and U.S. Physical Therapy (USPH) to determine which stock offers better value opportunities in the Medical - Outpatient and Home Healthcare sector [1] Valuation Metrics - ASTH has a Zacks Rank of 1 (Strong Buy), while USPH has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for ASTH compared to USPH [3] - ASTH's forward P/E ratio is 23.09, significantly lower than USPH's forward P/E of 31.71, suggesting that ASTH may be undervalued [5] - The PEG ratio for ASTH is 0.78, while USPH's PEG ratio is 4.15, indicating that ASTH has a more favorable earnings growth outlook relative to its price [5] - ASTH's P/B ratio is 2.28, compared to USPH's P/B of 2.5, further supporting the argument that ASTH is a better value option [6] - ASTH has a Value grade of B, while USPH has a Value grade of C, reinforcing the conclusion that ASTH is the preferred choice for value investors [6]

Summary of US Physical Therapy (USPH) FY Conference Call - August 26, 2025 Company Overview - **Company Name**: US Physical Therapy (USPH) - **Industry**: Outpatient orthopedic physical therapy - **Market Presence**: Operates nearly 800 facilities across the United States, with a partner model where the company generally owns about 70% of each partnership [2][4][10] Core Business Model - **Partnership Model**: USPH partners with local brands, allowing owners to retain a meaningful interest while benefiting from USPH's resources for growth [4][5][16] - **Market Fragmentation**: The physical therapy market is highly fragmented, estimated at $40 billion, with no single provider holding more than 10% market share [10][14] - **Reimbursement Strategy**: Focus on states with favorable reimbursement rates to ensure reasonable margins [8][9] Financial Performance - **Growth Despite Challenges**: Despite facing Medicare reimbursement headwinds, USPH has maintained significant growth, reporting an 18% increase in the last quarter [6][38] - **EBITDA Impact**: The company has faced a cumulative EBITDA reduction of $50 million due to reimbursement cuts, with $25 million impacting this year alone [35][37] - **Current EBITDA Guidance**: Updated guidance for EBITDA is between $93 million and $97 million for the year [38] Operational Highlights - **Visit Metrics**: Average visits per clinic per day reached 32.7, indicating strong demand [40] - **Technological Investments**: Implementation of AI-assisted documentation and partial virtualization of front desk operations to enhance efficiency [41] - **Margin Recovery**: Recent quarterly margins were around 21%, with expectations to improve further [42] Growth Opportunities - **Industrial Injury Prevention Business**: Launched in 2017, this segment has grown to over $100 million in revenue and $20 million in EBITDA, with a growth rate of 20-30% [44][48] - **Strategic Acquisitions**: Focus on acquiring larger practices with at least $1 million in EBITDA, enhancing profitability through better reimbursement rates [26][16] Market Dynamics - **Regulatory Challenges**: The company has navigated significant regulatory changes and reimbursement cuts, particularly from Medicare, which have historically impacted physical therapy providers [35][36] - **Competitive Landscape**: USPH differentiates itself from competitors by maintaining a strong balance sheet and avoiding excessive leverage, unlike many private equity-backed firms [31][14] Additional Insights - **Dividend Policy**: USPH has consistently paid dividends since 2012, currently at approximately $0.45 per quarter [51] - **Share Repurchase Plan**: Recently authorized a share repurchase plan due to stock price fluctuations, although this is not the primary focus for capital deployment [53] Conclusion US Physical Therapy is positioned for continued growth in a fragmented market, leveraging its partnership model and operational efficiencies to navigate regulatory challenges and capitalize on emerging opportunities in the physical therapy and industrial injury prevention sectors.

Core Viewpoint - Astrana Health, Inc. (ASTH) is currently positioned as a more attractive investment option compared to U.S. Physical Therapy (USPH) based on various valuation metrics and earnings outlook [1][7]. Valuation Metrics - ASTH has a forward P/E ratio of 20.02, significantly lower than USPH's forward P/E of 33.65 [5]. - The PEG ratio for ASTH is 0.67, indicating a better valuation relative to its expected earnings growth compared to USPH's PEG ratio of 4.40 [5]. - ASTH's P/B ratio stands at 2.11, while USPH has a P/B ratio of 2.65, further suggesting that ASTH is undervalued [6]. Earnings Outlook - ASTH is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a stronger potential for future earnings growth compared to USPH [3][7]. Investment Ratings - ASTH holds a Zacks Rank of 1 (Strong Buy), while USPH has a Zacks Rank of 2 (Buy), reflecting a more favorable investment sentiment towards ASTH [3]. Value Grades - ASTH has received a Value grade of A, whereas USPH has a Value grade of C, indicating that ASTH is perceived as a better value investment [6].

Core Viewpoint - U.S. Physical Therapy (USPH) has shown a significant price increase of 17.5% over the past four weeks, with analysts projecting a mean price target of $109.67, indicating a potential upside of 26.5% from the current price of $86.71 [1] Price Targets and Analyst Consensus - The average price target from six analysts ranges from a low of $98.00 to a high of $124.00, with a standard deviation of $8.91, suggesting a relatively tight clustering of estimates [2] - The lowest estimate indicates a 13% increase, while the highest suggests a 43% upside, highlighting the variability in analyst predictions [2][9] - Analysts' price targets are often viewed with skepticism due to historical inaccuracies in predicting actual stock movements [7][10] Earnings Estimates and Market Sentiment - Analysts are optimistic about USPH's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which have shown a strong correlation with stock price movements [11] - Over the last 30 days, two earnings estimates for USPH have been revised upward, leading to a 4.6% increase in the Zacks Consensus Estimate [12] - USPH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, further supporting its potential upside [13] Conclusion on Price Movement - While the consensus price target may not be a reliable predictor of the magnitude of USPH's gains, the direction indicated by these targets appears to be a useful guide for potential price movement [14]

Financial Performance - Net Income for Q2 2025 was $12.4 million, up from $7.5 million in Q2 2024, with earnings per share increasing to $0.58 from $0.47[206] - For the first six months of 2025, Net Income reached $22.3 million compared to $15.6 million in the same period of 2024, with earnings per share rising to $1.38 from $0.93[208] - Net income attributable to USPH shareholders for Q2 2025 was $12,393,000, a 65.5% increase from $7,506,000 in Q2 2024[210] - Basic and diluted earnings per share increased to $0.58 in Q2 2025 from $0.47 in Q2 2024, representing a 23.4% growth[210] - Total revenue for the first half of 2025 was $46,402,000, compared to $38,895,000 in the first half of 2024, reflecting a 19.4% increase[216] - Total net revenue for the 2025 Second Quarter increased by $30.2 million, or 18.0%, to $197.3 million from $167.2 million for the 2024 Second Quarter[225] - Net patient revenue rose by $23.9 million, or 17.0%, to $164.2 million, while other revenue increased by $6.2 million, or 23.2%, to $33.2 million[225] - Gross profit for the 2025 Second Quarter was $41.6 million, representing 21.1% of net revenue, compared to $33.9 million, or 20.3% of net revenue, for the 2024 Second Quarter[226] - Gross profit from physical therapy operations for the 2025 Six Months was $60.7 million with a gross profit margin of 18.7%, compared to $52.8 million with a gross profit margin of 19.0% for the 2024 Six Months[263] Operational Metrics - The total number of clinics increased to 768 by the end of Q2 2025, up from 720 at the end of 2024, reflecting a net addition of 48 clinics year-to-date[197] - The number of clinics increased to 732 in Q2 2025 from 681 in Q2 2024, indicating a growth of 7.5%[222] - Patient visits in Q2 2025 totaled 1,558,756, a 16.7% increase from 1,335,335 visits in Q2 2024[222] - Average daily visits per clinic per day are calculated based on patient visits, excluding home-care visits, divided by operational days and average clinics[207] - Total patient visits reached 1,558,756 for the 2025 Second Quarter, a 16.7% increase from the 2024 Second Quarter[232] Acquisitions and Expansion - The company completed several acquisitions, including a 65% interest in three clinics in February 2025 and a 75% interest in eight clinics in November 2024[195] - The company aims to continue acquiring multi-clinic outpatient practices and expand its industrial injury prevention services[197] - On April 30, 2025, the company acquired an outpatient home-care practice for approximately $2.3 million, with potential additional contingent consideration of up to $1.8 million[300] - The company acquired a 65% interest in a physical practice for approximately $3.8 million, with a maximum contingent consideration of $1.3 million[302] - The company acquired a 75% equity interest in an eight-clinic practice for approximately $15.9 million, with a note payable of $0.2 million due on December 1, 2026[303] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.45 per share, payable on September 12, 2025[198] - The share repurchase program authorized the buyback of up to $25 million of common stock, effective August 5, 2025[199] Cost and Revenue Management - Operating income increased by $9.4 million, or 60.2%, to $24.9 million for the 2025 Second Quarter compared to $15.6 million for the 2024 Second Quarter[225] - Operating costs increased by $18.4 million, or 16.0%, to $133.1 million for the 2025 Second Quarter, with operating costs as a percentage of net revenue decreasing to 79.1% from 79.9%[235] - Corporate office costs increased to $17.5 million for the 2025 Second Quarter from $14.2 million for the 2024 Second Quarter, representing an increase of 23.2%[242] - Rent, supplies, contract labor, and other costs related to clinics increased to $59.9 million in the 2025 Six Months from $52.5 million in the 2024 Six Months, an increase of $7.4 million, or 14.1%[261] Tax and Interest Expenses - The provision for income taxes was $4.9 million for the 2025 Second Quarter, up from $3.1 million during the 2024 Second Quarter, with effective tax rates of 28.5% and 29.1%, respectively[248] - Interest expense increased by $0.4 million to $2.4 million for the 2025 Second Quarter compared to $2.0 million for the 2024 Second Quarter, reflecting a higher average outstanding balance[245] - Interest expense increased by $0.8 million to $4.7 million for the 2025 Six Months compared to $3.9 million for the 2024 Six Months[268] Cash Flow and Financial Position - Net cash provided by operating activities was $30.2 million for the 2025 Six Months compared to $33.4 million for the 2024 Six Months[282] - Cash used in investing activities for the 2025 Six Months totaled $19.3 million, primarily for the purchase of interests in businesses and non-controlling interests[284] - As of June 30, 2025, total cash and cash equivalents were $34.1 million, down from $112.9 million at June 30, 2024[276] Debt and Interest Rate Management - The company has outstanding notes payable of $1.4 million related to acquisitions, with varying interest rates from 4.5% to 8.5% per annum[299] - The average interest rate for Senior Credit Facilities was 5.1% in Q2 2025, up from 4.7% in Q2 2024[298] - The company entered into an interest rate swap agreement with a notional value of $150 million, effective June 30, 2022, with a maturity date of June 30, 2027, paying a fixed rate of 2.815%[295] - As of June 30, 2025, the fair value of the interest rate swap was $1.6 million, reflecting a decrease of $1.6 million from December 31, 2024, and generated $1.0 million in interest savings for the first half of 2025[297] - A 1% change in interest rates would result in a $0.2 million change in interest expense on the Senior Credit Facilities due to the interest rate swap[310]

Financial Data and Key Metrics Changes - The company achieved a record average of 32.7 visits per clinic per day in Q2 2025, up from 30.6 in Q2 2024, marking a 7% increase [10][21] - Adjusted EBITDA increased to $26.9 million, up $4.7 million from the same quarter last year, with an adjusted EBITDA margin expanding to 17.5% from 16.4% [24][34] - Physical therapy revenues reached $168.3 million, representing a 17.3% increase compared to the prior year [27][28] - Gross profit margin improved to 21.1%, up from 20.1% in Q2 2024 [22][28] Business Line Data and Key Metrics Changes - Injury prevention (IIP) revenues increased by 22.6%, with gross profit rising by 25.8% compared to the prior year [13][29] - The company added over 50 net clinics compared to the prior year period, contributing to the growth in physical therapy visits [14] - Home care visits totaled 28,493 in Q2 2025, marking the first time these visits were reported separately [25] Market Data and Key Metrics Changes - Workers' compensation represented 10.4% of net patient revenues, with visits increasing by 8.4% year over year [27] - The net rate per patient visit was $105.33, slightly up from $105.05 in Q2 2024, despite a 2.9% Medicare rate reduction [26] Company Strategy and Development Direction - The company plans to focus on expanding its injury prevention business and has identified several large contracts in the auto industry [14][18] - The company has initiated a staged rollout of cash-based programs, generating approximately $900,000 in additional revenue [37] - A share repurchase program was authorized, allowing for the repurchase of up to $25 million of shares through December 31, 2026, while acquisitions remain the primary capital allocation priority [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for services, noting solid demand across most markets despite some staffing challenges [41] - The company raised its full-year 2025 adjusted EBITDA guidance to a range of $93 million to $97 million, reflecting strong performance in the first half of the year [34] - Management acknowledged the impact of Medicare cuts, estimating a $25 million hit to profit lines, but remains positive about future reimbursement rate increases [15][72] Other Important Information - The company is implementing a new enterprise-wide financial and human resources system, with associated costs expected to continue through 2026 [30] - The balance sheet remains strong, with $135 million in term loans and a $175 million revolving credit facility [32] Q&A Session Summary Question: How would you characterize demand for your services? - Demand is solid across most markets, but there are challenges in managing costs while meeting demand [41] Question: How do you view capital deployment for de novo builds? - This year is expected to be one of the strongest for de novo builds, with adjustments made to recruiting efforts [43] Question: Can you provide an update on labor management strategies? - A 25% increase in student clinical rotations has been observed, contributing to lower turnover rates [59][61] Question: What is the expected impact of Medicare rate increases? - The company anticipates a 1% to 1.75% increase in Medicare rates, translating to a potential $2 million to $3 million positive impact on revenue [71][72] Question: How is the IIP segment performing? - The IIP segment is performing ahead of expectations, with strong organic growth and continued capital deployment planned [82] Question: What are the dynamics of the home PT business? - The home PT business is new and will be reported separately, with initial results showing promise [25][52]

Company Overview & Highlights U.S. Physical Therapy, Inc. (USPH) reported strong Q2 2025 results with record patient visits, significant financial growth, strategic acquisitions, and an upward revision of full-year guidance [Introduction](index=1&type=section&id=1.1%20Introduction) U.S. Physical Therapy, Inc. (USPH) reported its Second Quarter 2025 results, highlighting record patient visits and an upward revision of its full-year 2025 guidance - U.S. Physical Therapy, Inc. (USPH) reported results for the three and six months ended June 30, 2025, on August 6, 2025[1](index=1&type=chunk) - The company is a national operator of outpatient physical therapy clinics and a provider of industrial injury prevention services[1](index=1&type=chunk) - The report announced **all-time record patient visits** and raised full-year 2025 guidance[1](index=1&type=chunk) [Financial Highlights (Q2 & YTD)](index=1&type=section&id=1.2%20Financial%20Highlights%20(Q2%20%26%20YTD)) USPH demonstrated strong financial performance in Q2 2025, with significant increases across key metrics including Adjusted EBITDA, net income, total revenue, and patient visits, leading to an upward revision of full-year guidance. Strategic acquisitions also contributed to growth | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Adjusted EBITDA (Non-GAAP) | $26.9 million | $22.1 million | $4.7 million | 21.4% | | USPH Net Income (GAAP) | $12.4 million | $7.5 million | $4.9 million | 65.3% | | Earnings Per Share | $0.58 | $0.47 | $0.11 | 23.4% | | Operating Results (Non-GAAP) | $12.4 million | $11.0 million | $1.4 million | 11.8% | | Operating Results Per Share | $0.81 | $0.73 | $0.08 | 10.9% | | Total Revenue (PT Operations) | $168.3 million | $143.5 million | $24.8 million | 17.3% | | Net Rate Per Patient Visit | $105.33 | $105.05 | $0.28 | 0.3% | | Total Patient Visits | 1,558,756 | 1,335,335 | 223,421 | 16.7% | | Average Daily Patient Visits Per Clinic | 32.7 | 30.6 | 2.1 | 6.9% | | IIP Revenue | $29.1 million | $23.7 million | $5.4 million | 22.6% | | IIP Gross Profit | $6.4 million | $5.1 million | $1.3 million | 25.8% | - The Company added **six clinics** and closed four in Q2 2025, bringing its total owned and/or managed clinic count to **768** as of June 30, 2025, up from 722 as of June 30, 2024[2](index=2&type=chunk) - Acquired an **80% equity interest** in an outpatient home-care physical and speech therapy practice on April 30, 2025, generating approximately **$2.1 million in annual revenue**[2](index=2&type=chunk) - Acquired a **60% equity interest** in a three-clinic practice on July 31, 2025, generating **$5.3 million in annual revenue** and approximately **28,000 annual visits**[3](index=3&type=chunk) - Management increased its guidance for Adjusted EBITDA for full-year 2025 to a range of **$93.0 million to $97.0 million**[3](index=3&type=chunk) [Management's Comments](index=3&type=section&id=1.3%20Management's%20Comments) CEO Chris Reading emphasized record patient volumes in the physical therapy business, continued strong growth in industrial injury prevention, and the positive impact of strategic acquisitions, all contributing to the updated earnings guidance - Physical therapy business volumes remain at **record levels**, supported by cost rationalization and improved efficiencies[4](index=4&type=chunk) - The industrial injury prevention business continues its **strong growth path**, both organically and through strategic acquisitions that broaden service offerings and market exposure[4](index=4&type=chunk) - Updated earnings guidance reflects the company's efforts and expected progress[4](index=4&type=chunk) Second Quarter 2025 Financial Performance USPH's Q2 2025 performance saw robust growth in physical therapy and industrial injury prevention, improved operating income, and increased net income, despite rising corporate costs and interest expenses [Physical Therapy Operations (Q2)](index=3&type=section&id=2.1%20Physical%20Therapy%20Operations%20(Q2)) Physical therapy operations experienced robust growth in Q2 2025, with total revenue increasing by 17.3% and gross profit by 22.4%. This growth was driven by an increase in net clinics and a higher net rate per patient visit, despite Medicare rate reductions, leading to an improved adjusted gross profit margin | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Net Patient Revenue (in thousands) | $164,183 | $140,271 | $23,912 | 17.0% | | Other Revenue (in thousands) | $4,109 | $3,215 | $894 | 27.8% | | Total Revenue (in thousands) | $168,292 | $143,486 | $24,806 | 17.3% | | Operating Costs (in thousands) | $133,059 | $114,703 | $18,356 | 16.0% | | Gross Profit (in thousands) | $35,233 | $28,783 | $6,450 | 22.4% | | Net Rate Per Patient Visit | $105.33 | $105.05 | $0.28 | 0.3% | | Patient Visits | 1,558,756 | 1,335,335 | 223,421 | 16.7% | | Average Daily Visits Per Clinic | 32.7 | 30.6 | 2.1 | 6.9% | | Adjusted Gross Profit Margin | 21.1% | 20.1% | - | 1.0 pp | | Salaries and Related Costs Per Visit | $60.08 | $59.66 | $0.42 | 0.7% | | Operating Costs Per Visit | $83.95 | $84.46 | $(0.51) | (0.6)% | - Revenue growth was primarily due to an increase in visits from **51 net clinics** added since the comparable prior year period and an increase in net rate per patient visit, despite an approximate **2.9% Medicare rate reduction**[9](index=9&type=chunk) - Total operating costs per visit decreased by **0.6%** as higher visit volumes did not result in a proportional increase in fixed costs[10](index=10&type=chunk) [Industrial Injury Prevention Services (Q2)](index=5&type=section&id=2.2%20Industrial%20Injury%20Prevention%20Services%20(Q2)) Industrial Injury Prevention (IIP) services demonstrated strong growth in Q2 2025, with net revenue increasing by 22.6% and gross profit by 25.8%, resulting in an improved gross profit margin of 22.0% | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Net Revenue (in thousands) | $29,052 | $23,704 | $5,348 | 22.6% | | Operating Costs (in thousands) | $22,661 | $18,625 | $4,036 | 21.7% | | Gross Profit (in thousands) | $6,391 | $5,079 | $1,312 | 25.8% | | Gross Margin | 22.0% | 21.4% | - | 0.6 pp | - Excluding the IIP acquisition made in April 2024, IIP revenue increased by **18.4%** and gross profit increased by **21.8%** in Q2 2025[13](index=13&type=chunk) [Corporate Office and Other Expenses (Q2)](index=5&type=section&id=2.3%20Corporate%20Office%20and%20Other%20Expenses%20(Q2)) Corporate office costs increased in Q2 2025 due to supporting a larger clinic base, acquisition integration, and new system implementation. Operating income significantly improved, largely driven by a net gain from the revaluation of contingent consideration, while interest income declined due to cash deployment for acquisitions - Corporate office costs increased to **$17.5 million** (8.9% of net revenue) in Q2 2025 from **$14.2 million** (8.5% of net revenue) in Q2 2024, primarily to support clinic growth, acquisition integration, and new financial/HR system implementation[14](index=14&type=chunk) - Recognized a net gain of **$0.8 million** from the revaluation of contingent consideration in Q2 2025, a significant improvement from a net loss of **$4.0 million** in Q2 2024[15](index=15&type=chunk) - Operating income was **$24.9 million** for Q2 2025, compared to **$15.6 million** for Q2 2024[16](index=16&type=chunk) - Interest expense increased by **$0.4 million** to **$2.4 million** in Q2 2025 due to a higher average outstanding balance on the revolving credit facility[17](index=17&type=chunk) - Interest income decreased to **less than $0.1 million** in Q2 2025 from **$1.1 million** in Q2 2024, as cash was deployed to fund acquisitions[18](index=18&type=chunk) - The provision for income taxes was **$4.9 million** in Q2 2025 (effective tax rate **28.5%**) compared to **$3.1 million** in Q2 2024 (effective tax rate **29.1%**)[20](index=20&type=chunk) [USPH Net Income and Non-GAAP Measures (Q2)](index=5&type=section&id=2.4%20USPH%20Net%20Income%20and%20Non-GAAP%20Measures%20(Q2)) USPH Net Income, Adjusted EBITDA, and Operating Results all showed substantial year-over-year growth in Q2 2025, reflecting improved overall profitability and operational efficiency | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Net Income Attributable to Non-Controlling Interest | $5.3 million | $4.2 million | $1.1 million | 26.2% | | USPH Net Income | $12.4 million | $7.5 million | $4.9 million | 65.3% | | Earnings Per Share | $0.58 | $0.47 | $0.11 | 23.4% | | Adjusted EBITDA (Non-GAAP) | $26.9 million | $22.1 million | $4.7 million | 21.4% | | Operating Results (Non-GAAP) | $12.4 million | $11.0 million | $1.4 million | 11.8% | | Operating Results Per Share (Non-GAAP) | $0.81 | $0.73 | $0.08 | 10.9% | Six Months Ended June 30, 2025 Financial Performance For the first six months of 2025, USPH achieved strong revenue and gross profit growth across both physical therapy and industrial injury prevention segments, with improved operating income and net income [Overall Performance (YTD)](index=7&type=section&id=3.1%20Overall%20Performance%20(YTD)) For the first six months of 2025, USPH achieved an 18.0% increase in total net revenue and a 16.7% rise in gross profit, demonstrating strong top-line growth, though the gross profit margin slightly decreased | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | Total Net Revenue (in millions) | $381.1 | $322.9 | $58.3 | 18.0% | | Operating Costs (in millions) | $308.4 | $260.6 | $47.8 | 18.4% | | Gross Profit (in millions) | $72.7 | $62.3 | $10.4 | 16.7% | | Gross Profit Margin | 19.1% | 19.3% | - | (0.2) pp | [Physical Therapy Operations (YTD)](index=7&type=section&id=3.2%20Physical%20Therapy%20Operations%20(YTD)) Physical therapy operations revenue increased by 16.8% year-to-date, driven by volume from new clinics and an improved net rate per patient visit. Gross profit also saw a significant increase of 14.9% | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | Revenue (in millions) | $325.0 | $278.2 | $46.8 | 16.8% | | Net Rate Per Patient Visit | $105.49 | $104.23 | $1.26 | 1.2% | | Gross Profit (in millions) | $60.7 | $52.8 | $7.9 | 14.9% | | Adjusted Gross Profit Margin | 18.8% | - | - | - | - Revenue growth was attributed to increased volume from **51 net new clinics** added since the comparable prior year period and an increase in net rate per patient visit[25](index=25&type=chunk) [Industrial Injury Prevention Services (YTD)](index=7&type=section&id=3.3%20Industrial%20Injury%20Prevention%20Services%20(YTD)) IIP services continued their strong performance year-to-date, with revenue growing by 25.5% and gross profit by 27.3%, resulting in an improved gross profit margin of 21.2% | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | Revenue (in millions) | $56.4 | $44.9 | $11.5 | 25.5% | | Gross Profit (in millions) | $12.0 | $9.4 | $2.6 | 27.3% | | Gross Profit Margin | 21.2% | 20.9% | - | 0.3 pp | - Excluding the April 2024 IIP acquisition, IIP revenue increased by **16.7%** and gross profit by **21.0%** year-to-date[26](index=26&type=chunk) [Corporate Office and Other Expenses (YTD)](index=7&type=section&id=3.4%20Corporate%20Office%20and%20Other%20Expenses%20(YTD)) Corporate office costs increased year-to-date but remained stable as a percentage of net revenue. Operating income saw a substantial increase, partly due to a net gain on contingent consideration revaluation, while other expenses rose due to higher interest costs and lower interest income - Corporate office costs were **$33.7 million** (8.8% of net revenue) in YTD 2025, compared to **$28.3 million** (8.8% of net revenue) in YTD 2024[27](index=27&type=chunk) - Recognized a net gain of **$5.6 million** from the revaluation of contingent consideration in YTD 2025, compared to a net loss of **$3.4 million** in YTD 2024[28](index=28&type=chunk) - Operating income was **$44.6 million** for YTD 2025, compared to **$30.5 million** for YTD 2024[29](index=29&type=chunk) - Other expenses increased to **$4.6 million** in YTD 2025 from **$0.9 million** in YTD 2024, primarily due to higher interest expense from increased borrowings and lower interest income[30](index=30&type=chunk) - The provision for income tax was **$8.8 million** in YTD 2025 (effective tax rate **28.3%**) compared to **$6.2 million** in YTD 2024 (effective tax rate **28.6%**)[31](index=31&type=chunk) [USPH Net Income and Non-GAAP Measures (YTD)](index=7&type=section&id=3.5%20USPH%20Net%20Income%20and%20Non-GAAP%20Measures%20(YTD)) USPH Net Income and non-GAAP measures for the six months ended June 30, 2025, showed solid growth, with USPH Net Income increasing by 43.3% and Adjusted EBITDA by 19.3%, reflecting improved profitability | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | USPH Net Income (in millions) | $22.3 | $15.6 | $6.7 | 43.3% | | Earnings Per Share | $1.38 | $0.93 | $0.45 | 48.4% | | Adjusted EBITDA (Non-GAAP) (in millions) | $46.4 | $38.9 | $7.5 | 19.3% | | Operating Results (Non-GAAP) (in millions) | $19.7 | $18.8 | $0.9 | 4.8% | | Operating Results Per Share (Non-GAAP) | $1.30 | $1.25 | $0.05 | 4.0% | Financial Position and Strategic Activities USPH's financial position reflects cash deployment for strategic acquisitions, increased borrowings, and a new share repurchase program, alongside an upward revision of full-year Adjusted EBITDA guidance and a declared quarterly dividend [Balance Sheet and Cash Flow](index=7&type=section&id=4.1%20Balance%20Sheet%20and%20Cash%20Flow) As of June 30, 2025, USPH's cash and cash equivalents decreased compared to prior periods, reflecting the deployment of cash for strategic acquisitions. Outstanding borrowings increased, while available credit under the revolving facility slightly decreased | Metric (in millions) | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :----- | :------------ | :----------- | :------------ | | Cash and Cash Equivalents | $34.1 | $41.4 | $112.9 | | Outstanding Borrowings | $159.5 | $151.6 | - | | Available Credit | $150.5 | $164.0 | - | [Recent Acquisitions](index=7&type=section&id=4.2%20Recent%20Acquisitions) USPH continues to execute its growth strategy through strategic acquisitions, recently acquiring an outpatient home-care practice and a three-clinic practice, expanding its service offerings and market presence - On April 30, 2025, the Company acquired an **80% equity interest** in an outpatient home-care physical and speech therapy practice, which currently generates approximately **$2.1 million in annual revenue**[36](index=36&type=chunk) - On July 31, 2025, the Company acquired a **60% equity interest** in a three-clinic practice, which currently generates **$5.3 million in annual revenue** and approximately **28,000 annual visits**[37](index=37&type=chunk) - The Company's strategy is to continue acquiring multi-clinic outpatient physical therapy practices, home-care physical and speech therapy practices, developing satellite clinics, and acquiring industrial injury prevention services companies[38](index=38&type=chunk) [2025 Earnings Guidance](index=8&type=section&id=4.3%202025%20Earnings%20Guidance) Management raised its full-year 2025 Adjusted EBITDA guidance to a range of $93.0 million to $97.0 million, reflecting strong year-to-date performance and confidence in continued solid results - Management increased its Adjusted EBITDA guidance for full-year 2025 to a range of **$93.0 million to $97.0 million**[39](index=39&type=chunk) - The guidance update is based on strong year-to-date performance and management's confidence in delivering solid results[39](index=39&type=chunk) - Annual earnings guidance figures will only be updated if there is a material development causing Adjusted EBITDA to be significantly outside the given range[40](index=40&type=chunk) [Quarterly Dividend](index=8&type=section&id=4.4%20Quarterly%20Dividend) The Board of Directors declared a quarterly dividend of $0.45 per share, payable in September 2025 - The Company's Board of Directors declared a quarterly dividend of **$0.45 per share**[41](index=41&type=chunk) - The dividend is payable on September 12, 2025, to shareholders of record on August 22, 2025[41](index=41&type=chunk) [Share Repurchase Program](index=8&type=section&id=4.5%20Share%20Repurchase%20Program) The Board of Directors approved a new share repurchase program, authorizing the repurchase of up to $25 million of common stock through December 31, 2026 - The Company's Board of Directors approved a share repurchase program effective August 5, 2025[42](index=42&type=chunk) - The program authorizes the repurchase of up to **$25 million of outstanding common stock** over the period ending on December 31, 2026[42](index=42&type=chunk) - Repurchases may occur in the open market or negotiated transactions, depending on factors like stock price performance, capital allocation, and market conditions[42](index=42&type=chunk) Additional Information This section provides essential supplementary information, including conference call details, forward-looking statements with associated risk factors, a glossary of key revenue metrics, and an overview of U.S. Physical Therapy, Inc.'s business operations [Conference Call Information](index=9&type=section&id=5.1%20Conference%20Call%20Information) Details for accessing the conference call are provided, with information available on the Company's website until November 5, 2025 - Conference call information can be accessed on the Company's website until November 5, 2025[43](index=43&type=chunk) [Forward-Looking Statements & Risk Factors](index=9&type=section&id=5.2%20Forward-Looking%20Statements%20%26%20Risk%20Factors) The press release contains forward-looking statements that are subject to various risks and uncertainties, including changes in healthcare regulations, reimbursement rates, competitive conditions, and the ability to integrate acquisitions, which could cause actual results to differ materially - The press release contains forward-looking statements regarding financial condition, results of operations, plans, objectives, future performance, and business[43](index=43&type=chunk) - These statements involve risks and uncertainties, including changes in Medicare rules, reimbursement rates, compliance with federal and state laws, competitive conditions, and the ability to identify and complete acquisitions[44](index=44&type=chunk) - Readers should not place undue reliance on forward-looking statements and are advised to refer to the 'Risk Factors' section in the Company's Annual Report on Form 10-K for additional information[45](index=45&type=chunk) [Glossary of Terms – Revenue Metrics](index=10&type=section&id=5.3%20Glossary%20of%20Terms%20%E2%80%93%20Revenue%20Metrics) This section defines key revenue metrics used in the financial reporting, such as 'Mature clinics,' 'Net rate per patient visit,' 'Patient visits,' and 'Average daily visits per clinic per day,' to ensure clarity and consistency in interpretation - Mature clinics are defined as clinics (physical clinic locations and home-care business units) opened or acquired prior to January 1, 2024, and still operating[46](index=46&type=chunk) - Net rate per patient visit is calculated as net patient revenue from physical therapy operations divided by the total number of patient visits[46](index=46&type=chunk) - Patient visits refer to the number of unique patient visits for both physical clinic locations and home-care during the reported periods[47](index=47&type=chunk) - Average daily visits per clinic per day excludes home-care visits and is calculated based on operating days and the average number of clinics in operation[47](index=47&type=chunk) [About U.S. Physical Therapy, Inc.](index=10&type=section&id=5.4%20About%20U.S.%20Physical%20Therapy,%20Inc.) U.S. Physical Therapy, Inc. is a leading operator and/or manager of outpatient physical therapy clinics across 44 states, providing comprehensive care for various orthopedic and neurological conditions, and also offers industrial injury prevention services - Founded in 1990, U.S. Physical Therapy, Inc. owns and/or manages **774 outpatient physical therapy clinics** in 44 states[48](index=48&type=chunk) - USPH clinics provide preventative and post-operative care for orthopedic-related disorders, sports-related injuries, treatment for neurologically-related injuries, and rehabilitation of injured workers[48](index=48&type=chunk) - The Company also operates an industrial injury prevention business, offering onsite services such as injury prevention, rehabilitation, performance optimization, and ergonomic assessments[48](index=48&type=chunk) Consolidated Financial Statements This section presents the unaudited consolidated financial statements, including statements of income, comprehensive income, balance sheets, and cash flows, for the reported periods, providing a detailed overview of the company's financial health and performance [Unaudited Consolidated Statements of Income](index=11&type=section&id=6.1%20Unaudited%20Consolidated%20Statements%20of%20Income) This section presents the unaudited consolidated statements of income for the three and six months ended June 30, 2025 and 2024, detailing revenue, operating costs, gross profit, operating income, and net income attributable to USPH shareholders | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Net patient revenue | $164,183 | $140,271 | $316,730 | $271,346 | | Other revenue | $33,161 | $26,919 | $64,402 | $51,519 | | **Net revenue** | **$197,344** | **$167,190** | **$381,132** | **$322,865** | | Total operating cost | $155,720 | $133,328 | $308,443 | $260,602 | | **Gross profit** | **$41,624** | **$33,862** | **$72,689** | **$62,263** | | Corporate office costs | $17,476 | $14,249 | $33,721 | $28,334 | | (Gain) loss on change in fair value of contingent earn-out consideration | $(790) | $4,046 | $(5,612) | $3,434 | | **Operating income** | **$24,938** | **$15,567** | **$44,580** | **$30,495** | | Total other expense | $(2,285) | $(772) | $(4,599) | $(944) | | Income before taxes | $22,653 | $14,795 | $39,981 | $29,551 | | Provision for income taxes | $4,933 | $3,083 | $8,793 | $6,222 | | **Net income** | **$17,720** | **$11,712** | **$31,188** | **$23,329** | | Net income attributable to USPH shareholders | $12,393 | $7,506 | $22,292 | $15,552 | | Basic and diluted earnings per share attributable to USPH shareholders | $0.58 | $0.47 | $1.38 | $0.93 | | Dividends declared per common share | $0.45 | $0.44 | $0.90 | $0.88 | [Unaudited Consolidated Statements of Comprehensive Income](index=13&type=section&id=6.2%20Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the unaudited consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024, including net income and other comprehensive income/loss components | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Net income | $17,720 | $11,712 | $31,188 | $23,329 | | Other comprehensive (loss) gain: | | | | | | Unrealized (loss) gain on cash flow hedge | $(798) | $(31) | $(2,129) | $1,750 | | Tax effect | $204 | $8 | $544 | $(447) | | **Comprehensive income** | **$17,126** | **$11,689** | **$29,603** | **$24,632** | | Comprehensive income attributable to non-controlling interest | $(5,327) | $(4,206) | $(8,896) | $(7,777) | | Comprehensive income attributable to USPH shareholders | $11,799 | $7,483 | $20,707 | $16,855 | [Consolidated Balance Sheet](index=14&type=section&id=6.3%20Consolidated%20Balance%20Sheet) This section provides the consolidated balance sheet as of June 30, 2025, and December 31, 2024, detailing the company's assets, liabilities, redeemable non-controlling interest, and USPH shareholders' equity | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :-------------------- | :------------ | :----------- | | **ASSETS** | | | | Total current assets | $140,532 | $137,583 | | Fixed assets, net | $32,121 | $32,140 | | Operating lease right-of-use assets | $137,248 | $133,936 | | Goodwill | $677,595 | $667,152 | | Other identifiable intangible assets, net | $175,627 | $179,311 | | **Total assets** | **$1,179,600** | **$1,167,467** | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $118,842 | $116,283 | | Revolving facility | $24,500 | $11,000 | | Term loan, net of current portion and deferred financing costs | $127,093 | $130,627 | | Deferred taxes | $34,402 | $29,465 | | Operating lease liabilities, net of current portion | $104,279 | $101,868 | | **Total liabilities** | **$414,008** | **$408,421** | | Redeemable non-controlling interest - temporary equity | $263,298 | $269,025 | | Total USPH shareholders' equity | $500,750 | $488,929 | | Non-controlling interest - permanent equity | $1,544 | $1,092 | | **Total liabilities, redeemable non-controlling interest, USPH shareholders' equity and non-controlling interest - permanent equity** | **$1,179,600** | **$1,167,467** | [Unaudited Consolidated Statements of Cash Flow](index=16&type=section&id=6.4%20Unaudited%20Consolidated%20Statements%20of%20Cash%20Flow) This section presents the unaudited consolidated statements of cash flow for the six months ended June 30, 2025 and 2024, detailing cash flows from operating, investing, and financing activities, and showing a net decrease in cash and cash equivalents | Metric (in thousands) | YTD 2025 | YTD 2024 | | :-------------------- | :------- | :------- | | Net cash provided by operating activities | $30,186 | $33,411 | | Net cash (used in) investing activities | $(19,334) | $(48,755) | | Net cash (used in) financing activities | $(18,128) | $(24,570) | | Net (decrease) in cash and cash equivalents | $(7,276) | $(39,914) | | Cash and cash equivalents - end of period | $34,086 | $112,911 | - Cash paid for income taxes increased to **$9,833 thousand** in YTD 2025 from **$4,932 thousand** in YTD 2024[60](index=60&type=chunk) - Cash paid for interest increased to **$4,683 thousand** in YTD 2025 from **$3,708 thousand** in YTD 2024[60](index=60&type=chunk) Non-GAAP Financial Measures Reconciliation This section defines and reconciles non-GAAP financial measures, Adjusted EBITDA and Operating Results, to their GAAP equivalents, providing clarity on how management assesses financial performance by excluding certain non-recurring or non-cash items [Adjusted EBITDA and Operating Results](index=18&type=section&id=7.1%20Adjusted%20EBITDA%20and%20Operating%20Results) This section defines and explains the rationale for using non-GAAP financial measures, Adjusted EBITDA and Operating Results, which management utilizes to evaluate and monitor financial performance by excluding certain volatile or unusual costs for better period-to-period comparability - Adjusted EBITDA and Operating Results are non-GAAP measures used by management to compare the Company's period-to-period results and with other similar businesses[62](index=62&type=chunk) - Adjusted EBITDA is defined as net income attributable to USPH shareholders before interest income, interest expense, taxes, depreciation, amortization, and other specific non-recurring or non-cash items[63](index=63&type=chunk) - Operating Results equals net income attributable to USPH shareholders less specific adjustments for revaluation of put-right liability, clinic closure costs, contingent earn-out changes, business acquisition related costs, and ERP implementation costs, net of taxes and non-controlling interests[64](index=64&type=chunk) - These non-GAAP measures should not be considered in isolation or as an alternative to, or substitute for, net income attributable to USPH shareholders presented in the consolidated financial statements[65](index=65&type=chunk) [Reconciliation of Non-GAAP Measures to GAAP](index=19&type=section&id=7.2%20Reconciliation%20of%20Non-GAAP%20Measures%20to%20GAAP) This section provides detailed reconciliations of Adjusted EBITDA and Operating Results to the most directly comparable GAAP measures for the three and six months ended June 30, 2025 and 2024, along with reconciliations for other non-GAAP segment information related to physical therapy operations | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | **Adjusted EBITDA (Non-GAAP)** | **$26,863** | **$22,124** | **$46,402** | **$38,895** | | Net income attributable to USPH shareholders | $12,393 | $7,506 | $22,292 | $15,552 | | Adjustments (e.g., taxes, D&A, interest, equity-based awards, contingent earn-out, clinic closure, acquisition costs, ERP costs, NCI allocation) | $14,470 | $14,618 | $24,110 | $23,343 | | **Operating Results (Non-GAAP)** | **$12,350** | **$11,044** | **$19,663** | **$18,776** | | Operating Results per share (Non-GAAP) | $0.81 | $0.73 | $1.30 | $1.25 | | Physical Therapy Operations (in thousands) | As Reported (GAAP) Q2 2025 | Adjustments Q2 2025 | As Adjusted (Non-GAAP) Q2 2025 | As Reported (GAAP) YTD 2025 | Adjustments YTD 2025 | As Adjusted (Non-GAAP) YTD 2025 | | :--------------------------------------- | :------------------------- | :------------------ | :----------------------------- | :-------------------------- | :------------------- | :------------------------------ | | Salaries and related costs | $93,877 | $(229) | $93,648 | $185,676 | $(294) | $185,382 | | Operating costs | $131,093 | $(229) | $130,864 | $260,064 | $(294) | $259,770 | | Gross profit | $35,233 | $229 | $35,462 | $60,701 | $294 | $60,995 | | Gross margin | 20.9% | * | 21.1% | 18.7% | * | 18.8% | | Salaries and related costs per visit | $60.23 | $(0.15) | $60.08 | $61.84 | $(0.10) | $61.74 | | Operating costs per visit | $84.10 | $(0.15) | $83.95 | $86.62 | $(0.10) | $86.52 | Supplemental Financial and Performance Metrics This section provides detailed supplemental financial and performance metrics, including revenue breakdowns, clinic counts, and operational statistics, offering a comprehensive view of the company's operational trends and growth [Revenue Metrics](index=22&type=section&id=8.1%20Revenue%20Metrics) This section provides a detailed breakdown of key revenue and operational metrics, including clinic count, net rate per patient visit, total patient visits, and average daily visits per clinic, for various quarters in 2024 and 2025 | Metric | Q1 2025 | Q2 2025 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | YTD 2025 | YTD 2024 | | :----- | :------ | :------ | :------ | :------ | :------ | :------ | :------- | :------- | | Number of Clinics (Owned/Managed) | 729 | 732 | 679 | 681 | 661 | 722 | 722 | 722 | | Net Rate Per Patient Visit | $105.66 | $105.33 | $103.37 | $105.05 | $105.65 | $104.73 | $104.71 | $104.71 | | Patient Visits | 1,443,805 | 1,558,756 | 1,268,002 | 1,335,335 | 1,317,051 | 1,432,801 | 3,002,561 | 5,353,189 | | Average Daily Visits Per Clinic | 31.2 | 32.7 | 29.5 | 30.6 | 30.1 | 31.6 | - | 30.4 | - As of June 30, 2025, the Company owned/managed **768 clinics**, including 36 managed clinics, compared to 722 clinics (41 managed) as of June 30, 2024[73](index=73&type=chunk) [Clinic Count Roll Forward](index=22&type=section&id=8.2%20Clinic%20Count%20Roll%20Forward) This section provides a detailed roll forward of owned and managed clinic counts for 2024 and the first two quarters of 2025, illustrating additions and closures | Clinic Activity | Owned 2025 | Managed 2025 | Total 2025 | Owned 2024 | Managed 2024 | Total 2024 | | :-------------- | :--------- | :----------- | :--------- | :--------- | :----------- | :--------- | | Beginning of period | 722 | 39 | 761 | 671 | 43 | 714 | | Q1 additions | 14 | - | 14 | 14 | - | 14 | | Q1 closed or sold | (7) | (2) | (9) | (6) | (2) | (8) | | End of Q1 | 729 | 37 | 766 | 679 | 41 | 720 | | Q2 additions | 6 | - | 6 | 7 | - | 7 | | Q2 closed or sold | (3) | (1) | (4) | (5) | - | (5) | | End of Q2 | 732 | 36 | 768 | 681 | 41 | 722 | | Q3 additions | - | - | - | 12 | - | 12 | | Q3 closed or sold | - | - | - | (32) | (2) | (34) | | End of Q3 | - | - | - | 661 | 39 | 700 | | Q4 additions | - | - | - | 63 | - | 63 | | Q4 closed or sold | - | - | - | (2) | - | (2) | | End of Q4 | - | - | - | 722 | 39 | 761 | | Year-to-date total additions | 20 | - | 20 | 96 | - | 96 | | Year-to-date total closed or sold | (10) | (3) | (13) | (45) | (4) | (49) |

分组1 - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and showing an increase from $0.73 per share a year ago, resulting in an earnings surprise of +14.08% [1] - The company achieved revenues of $197.34 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.78%, and up from $167.19 million year-over-year [2] - U.S. Physical Therapy has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing about 18.8% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $192.33 million, and for the current fiscal year, it is $2.49 on revenues of $762.72 million [7] - The Medical - Outpatient and Home Healthcare industry, to which U.S. Physical Therapy belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Elanco Animal Health Incorporated (ELAN) is currently positioned as a more attractive investment compared to U.S. Physical Therapy (USPH) based on Zacks Rank and valuation metrics [3][7] Valuation Metrics - ELAN has a forward P/E ratio of 17.91, significantly lower than USPH's forward P/E of 30.39 [5] - The PEG ratio for ELAN is 2.93, while USPH's PEG ratio stands at 3.66, indicating ELAN's better valuation relative to its expected earnings growth [5] - ELAN's P/B ratio is 1.17, compared to USPH's P/B of 2.3, further supporting ELAN's superior valuation metrics [6] Earnings Outlook - ELAN has a Zacks Rank of 2 (Buy), reflecting positive revisions in earnings estimates, while USPH has a Zacks Rank of 5 (Strong Sell), indicating a less favorable earnings outlook [3][7] - The improving earnings outlook for ELAN is a critical factor for value investors [3]