U.S. Physical Therapy(US:USPH)2025-11-07 21:05Financial 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].