Core Insights - 4D Advisors has initiated a new position in U.S. Physical Therapy by acquiring 110,000 shares valued at $9.34 million as of September 30, 2025, indicating strong confidence in the company despite recent stock price declines [2][11]. Company Overview - U.S. Physical Therapy operates 591 clinics across 39 states, providing outpatient physical therapy and industrial injury prevention services, which include rehabilitation and ergonomic assessments [7][10]. - The company reported trailing twelve months (TTM) revenue of $758.71 million and net income of $36.02 million, with a dividend yield of 2.5% [5][10]. Financial Performance - As of November 14, 2025, U.S. Physical Therapy's stock price was $71.67, reflecting an 18.75% decline over the past year, underperforming the S&P 500 by 32.75 percentage points [3][12]. - Revenue for the first three quarters of 2025 reached $578.3 million, up from $490.9 million in 2024, indicating growth in sales [12]. Investment Position - The new position in U.S. Physical Therapy represents 4.97% of 4D Advisors' 13F reportable assets under management, making it the third largest holding in the fund [3][11]. - The price-to-earnings ratio for U.S. Physical Therapy has decreased from over 85 in Q3 of the previous year to approximately 32 in 2025, suggesting a potentially attractive valuation for investors [13].

Financial Performance - USPH Net Income for Q3 2025 was $13.1 million, up from $6.6 million in Q3 2024, with earnings per share increasing to $0.48 from $0.39[212]. - For the nine months ended September 30, 2025, USPH Net Income reached $35.4 million, compared to $22.2 million for the same period in 2024, with earnings per share rising to $1.85 from $1.32[213]. - Net income attributable to USPH shareholders for Q3 2025 was $13,138,000, compared to $6,628,000 in Q3 2024, representing a 98.5% increase[215]. - For the nine months ended September 30, 2025, net income attributable to USPH shareholders was $35,430,000, compared to $22,180,000 for the same period in 2024, a 59.7% increase[221]. - Adjusted EBITDA for Q3 2025 was $23,855,000, up from $21,071,000 in Q3 2024, reflecting a 13.2% growth[221]. - Adjusted EBITDA for Q3 2025 was $23.9 million, an increase of $2.8 million, or 13.2%, from $21.1 million in Q3 2024[231]. - Operating income surged by $12.5 million, or 97.2%, to $25.3 million in Q3 2025 from $12.8 million in Q3 2024[230]. - Operating income was $69.9 million for the 2025 Nine Months, compared to $43.3 million for the 2024 Nine Months, marking an increase of 61.5%[278]. Revenue and Patient Visits - Net revenue for Q3 2025 increased by $29.1 million, or 17.3%, to $197.1 million compared to $168.0 million in Q3 2024[230]. - Total patient visits reached 1,554,207 in Q3 2025, an 18.0% increase from 1,317,051 in Q3 2024[238]. - Net patient revenue increased by $24.9 million, or 17.9%, to $164.0 million in Q3 2025 from $139.1 million in Q3 2024[237]. - The total number of patient visits in Q3 2025 reached 1,554,207, compared to 1,317,051 in Q3 2024, marking a 17.9% increase[225]. - The company had 4,556,768 total patient visits for the nine months, an increase of 16.2% from 3,920,388 visits in the prior year[266]. Operating Costs and Expenses - Operating costs for Q3 2025 were $134,979,000, compared to $116,698,000 in Q3 2024, indicating a 15.6% increase[225]. - Total operating costs for the nine months ended September 30, 2025, were $394,060,000, compared to $336,917,000 in the same period of 2024, reflecting a 16.9% increase[226]. - Operating costs increased by $57.1 million, or 16.7%, to $399.9 million for the nine months, with operating costs as a percentage of net revenue decreasing to 81.2% from 81.5%[269]. - Corporate office costs increased to $17.4 million for Q3 2025 from $14.4 million for Q3 2024, representing 8.8% of net revenue compared to 8.6% in the prior year[249]. - Interest expense increased by $0.4 million to $2.4 million for Q3 2025, with an effective interest rate of 5.7% compared to 5.4% in Q3 2024[252]. Acquisitions and Growth - The company completed several acquisitions, including a 60% equity interest in a three-clinic practice on July 31, 2025, and a 40% interest in an outpatient home care practice on April 30, 2025[198][201]. - The company acquired a 100% equity interest in a two-clinic practice for a purchase price of $0.4 million, with additional contingent consideration valued at less than $0.1 million[311]. - The acquisition of a 60% equity interest in a three-clinic practice was completed for approximately $7.6 million, with contingent consideration valued at $2.6 million[312]. - The company acquired an 80% equity interest in an outpatient home-care practice for approximately $2.3 million, with contingent consideration valued at $1.0 million[313]. - The purchase price for a 65% interest in a physical therapy practice was approximately $3.8 million, with contingent consideration valued at $0.3 million[314]. - Revenues from Industrial Injury Prevention (IIP) services increased by $15.2 million or 21.6% to $85.5 million for the 2025 Nine Months compared to $70.3 million for the 2024 Nine Months[275]. Challenges and Regulatory Environment - The company faced challenges related to hiring and retaining qualified employees, impacting its operational capacity[197]. - Medicare reimbursement for therapy services is projected to decrease by approximately 2.9% in 2025, following a 1.8% reduction in 2024[207]. - Regulatory changes, including Medicare reimbursement adjustments, are expected to influence the company's financial performance in the future[205]. Cash Flow and Financial Position - Net cash provided by operating activities was $50.1 million for the 2025 Nine Months, down from $55.5 million for the 2024 Nine Months[294]. - Cash used in investing activities totaled $31.3 million for the 2025 Nine Months, primarily for business acquisitions and fixed asset purchases[295]. - Total cash and cash equivalents were $31.1 million as of September 30, 2025, down from $41.4 million as of December 31, 2024[288]. - As of September 30, 2025, the outstanding balance on the Term Facility was $132.4 million, and $26.5 million was outstanding under the Revolving Facility, resulting in $148.5 million of credit availability[305]. - The interest rate on the Senior Credit Facilities was 5.0% for the 2025 Third Quarter, compared to 4.7% for the 2024 Third Quarter, with an all-in effective interest rate of 5.7% and 5.4% respectively[305].

Financial Performance - Adjusted EBITDA for Q3 2025 was $23.9 million, a 13.2% increase from $21.1 million in Q3 2024, primarily due to clinic additions[3]. - Net income attributable to USPH shareholders for Q3 2025 was $13.1 million, compared to $6.6 million in Q3 2024, with earnings per share increasing to $0.48 from $0.39[3][24]. - Total revenue from physical therapy operations increased by $25.4 million, or 17.8%, to $168.1 million in Q3 2025 from $142.7 million in Q3 2024[3][10]. - Total net revenue for the first nine months of 2025 increased by $87.4 million, or 17.8%, to $578.3 million from $490.9 million in the same period of 2024[26]. - Operating income for the first nine months of 2025 was $69.9 million, compared to $43.3 million for the same period in 2024, marking a significant increase[31]. - Net income for the first nine months of 2025 was $35.4 million, compared to $22.2 million for the same period in 2024, with earnings per share increasing to $1.85[33]. - Comprehensive income attributable to USPH shareholders for the three months ended September 30, 2025, was $12,870, compared to $3,883 in the same period of 2024[50]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $70,256,000, up from $59,966,000 in 2024, reflecting an 17.0% growth[62]. Patient Visits and Clinic Operations - Total patient visits reached 1,554,207 in Q3 2025, an 18.0% increase from 1,317,051 in Q3 2024[3][10]. - Average daily patient visits per clinic reached a record-high of 32.2 in Q3 2025, compared to 30.1 in Q3 2024[3]. - The company added 18 clinics and closed 7 in Q3 2025, bringing the total to 779 clinics as of September 30, 2025, compared to 700 a year earlier[3]. - Revenues from physical therapy operations rose by $72.2 million, or 17.2%, in the first nine months of 2025, driven by the addition of 84 net owned clinics[27]. - The total number of clinics increased to 779 by the end of Q3 2025, up from 700 at the end of Q3 2024, indicating a net addition of 79 clinics year-over-year[70]. - The average visits per clinic per day increased to 32.2 in Q3 2025, compared to 30.1 in Q3 2024, showing an improvement in clinic utilization[68]. Revenue and Costs - Industrial injury prevention services revenue was $29.0 million for Q3 2025, a 14.6% increase from $25.3 million in Q3 2024[3][15]. - Corporate office costs increased to $17.4 million in Q3 2025 from $14.4 million in Q3 2024, primarily due to supporting a larger number of clinics[16]. - Corporate office costs were $51.1 million for the first nine months of 2025, up from $42.7 million in the same period of 2024[29]. - The company reported a total operating cost of $394,060,000 for the nine months ended September 30, 2025, compared to $336,917,000 for the same period in 2024, representing an increase of approximately 17%[65]. - Operating costs per visit decreased slightly to $86.88 in Q3 2025 from $88.61 in Q3 2024, indicating improved cost efficiency[65]. - Salaries and related costs per visit remained stable at $62.07 in Q3 2025, compared to $62.47 in Q3 2024[65]. Cash and Investments - Total cash and cash equivalents decreased to $31.1 million as of September 30, 2025, from $117.0 million a year earlier[35]. - Cash and cash equivalents as of September 30, 2025, were $31,102, down from $41,362 as of December 31, 2024[52]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $50,126,000, down from $55,531,000 in 2024, a decrease of 9.0%[55]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $(31,269,000), compared to $(54,597,000) in 2024, showing a 42.7% improvement[55]. - Cash and cash equivalents at the end of the period were $31,102,000, down from $116,959,000 at the end of September 30, 2024, a decrease of 73.4%[55]. Acquisitions and Dividends - The company acquired a 60% equity interest in a three-clinic practice, generating $5.3 million in annual revenue[3]. - The company acquired a 60% equity interest in a three-clinic practice on July 31, 2025, which generates approximately $5.3 million in annual revenue[36]. - The company declared dividends of $0.45 per common share for the three months ended September 30, 2025, compared to $0.44 in the same period of 2024[49].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - U.S. Physical Therapy's shares fell 11.5% following the release of third-quarter results, indicating declining year-over-year profitability despite revenue exceeding expectations [1][2] Financial Performance - The company reported adjusted earnings of $0.66 per share, matching analyst estimates but down from $0.69 per share in the same quarter last year [2] - Revenue increased by 17.3% year-on-year to $197.1 million, surpassing Wall Street forecasts [2] - The decline in per-share earnings and a slight miss on adjusted EBITDA raised concerns among investors, overshadowing strong sales growth [2] Market Reaction - The stock's significant drop is notable as U.S. Physical Therapy's shares are generally not very volatile, with only four moves greater than 5% in the past year [4] - The current stock price of $79.78 represents a 20.1% decline from its 52-week high of $99.91 recorded in December 2024 [6] - Year-to-date, the stock is down 9.2%, and an investment of $1,000 made five years ago would now be worth $871.16 [6]

Financial Data and Key Metrics Changes - The company achieved a record average of 32.7 visits per clinic per day, up from 30.6 in the same quarter last year, marking a 7% year-over-year increase [4][12] - Adjusted EBITDA increased to $26.9 million, up $4.7 million from the previous year, with an adjusted EBITDA margin expanding to 17.5% from 16.4% [13][20] - Physical therapy revenues reached $168.3 million, representing a 17.3% increase compared to the same period last year [16] - The gross profit margin for physical therapy improved to 21.1%, up from 20.1% in the prior year [12][16] Business Line Data and Key Metrics Changes - Injury prevention (IIP) revenues increased by 22.6%, with gross profit up 25.8% compared to the prior year [6][17] - IIP net revenues grew by $5.3 million, reflecting strong organic growth attributed to new contracts [17] - The company added over 50 net clinics compared to the prior year period, contributing to the overall growth in patient visits [6][16] Market Data and Key Metrics Changes - The net rate per patient visit was $105.33, slightly up from $105.05 in the same quarter last year, despite a 2.9% Medicare rate reduction [14][15] - Workers' compensation represented 10.4% of net patient revenues, with visits increasing by 8.4% year-over-year [15] Company Strategy and Development Direction - The company plans to focus on expanding its injury prevention business, which has shown strong organic growth and margin improvement [10][17] - The introduction of cash-based programs has generated approximately $900,000 in additional revenue, indicating a new revenue stream [22] - The company has raised its full-year 2025 adjusted EBITDA guidance from $88-$93 million to $93-$97 million, reflecting confidence in continued growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting strong demand for services despite some staffing challenges [26] - The company is actively working on increasing reimbursement rates through targeted contract negotiations [15] - Management highlighted the positive impact of AI tools on operational efficiency, particularly in clinical documentation [38][39] Other Important Information - The company has authorized a share repurchase program of up to $25 million, providing flexibility for capital allocation [19] - Implementation costs for a new enterprise-wide financial and human resources system will continue through 2026, with $221,000 incurred year-to-date [18] Q&A Session Summary Question: How would you characterize demand for your services? - Management indicated that demand is solid across most markets, although some areas face staffing challenges [26] Question: How do you view capital deployment for de novo builds? - Management expects this to be one of the strongest years for de novo openings, with adjustments made to recruiting efforts [29] Question: Can you provide an update on labor management strategies? - The company has seen a 25% increase in student clinical rotations and is implementing mentorship programs to reduce turnover [45][46] Question: What is the outlook for Medicare rates in 2026? - Management anticipates a positive increase in Medicare rates, estimating a 1% to 1.75% increase, translating to $2 million to $3 million in additional revenue [58][59] Question: How is the injury prevention segment performing? - The injury prevention segment is ahead of budget, with strong organic growth and continued capital deployment expected [68]

Core Viewpoint - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.67 per share, and showing a decline from $0.69 per share a year ago, indicating an earnings surprise of -1.49% [1] Financial Performance - The company posted revenues of $197.13 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.36%, and showing an increase from $168.03 million year-over-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 1.9% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The stock currently holds a Zacks Rank 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 $0.69 on revenues of $198.26 million, and for the current fiscal year, it is $2.61 on revenues of $773.83 million [7] - The estimate revisions trend for U.S. Physical Therapy was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which U.S. Physical Therapy belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

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.