☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
NEVADA | 76-0364866 | |
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) | (I.R.S. EMPLOYER IDENTIFICATION NO.) |
1300 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 300, HOUSTON, TEXAS | 77042 | |
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) | (ZIP CODE) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Common Stock, $.01 par value | USPH | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ (Do not check if a smaller reporting company) | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
DOCUMENT | PART OF FORM 10-K |
Portions of Definitive Proxy Statement for the 2021 Annual Meeting of Shareholders | Part III |
Page | |||
PART I | |||
Item 1. | |||
Item 1A. | |||
Item 1B. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 5. | |||
Item 6. | |||
Item 7. | |||
Item 8. | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | |||
PART III | |||
Item 10. | |||
Item 11. | |||
Item 12. | |||
Item 13. | |||
Item 14. | |||
PART IV | |||
Item 15. | |||
Item 16. | |||
ITEM 1. | BUSINESS. |
Acquisition | Date | % Interest Acquired | Number of Clinics | Date | % Interest Acquired | Number of Clinics | ||||||
December 2021 Acquisition | December 31, 2021 | 75% | 3 | |||||||||
November 2021 Acquisition | November 30, 2021 | 70% | * | |||||||||
September 2021 Acquisition | September 30, 2021 | 100% | * | |||||||||
June 2021 Acquisition | June 30, 2021 | 65% | 8 | |||||||||
March 2021 Acquisition | March 31, 2021 | 70% | 6 | |||||||||
November 2020 Acquisition | November 30, 2020 | 75% | 3 | November 30, 2020 | 75% | 3 | ||||||
September 2020 Acquisition | September 30, 2020 | 70% | * | September 30, 2020 | 70% | ** | ||||||
February 2020 Acquisition | February 27, 2020 | 65% ** | 4 | February 27, 2020 | 65% *** | 4 | ||||||
September 2019 Acquisition | September 30, 2019 | 67% | 11 | September 30, 2019 | 67% | 11 | ||||||
August 2018 Acquisition | August 31, 2018 | 70% | 4 | |||||||||
April 2019 Acquisition | April 11, 2019 | 100% | * |
* | Industrial injury prevention services business |
** | The business includes six management |
*** | The four clinics are in four separate partnerships. The Company's interest in the four partnerships range from 10.0% to 83.8%, with an overall 65.0% based on the initial purchase transaction. |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Payor | Net Patient Revenue | Percentage | Net Patient Revenue | Percentage | Net Patient Revenue | Percentage | ||||||||||||||||||
Managed Care Programs/ Commercial Health Insurance | $ | 209,129 | 47.7 | % | $ | 177,877 | 47.7 | % | $ | 204,051 | 47.1 | % | ||||||||||||
Medicare/Medicaid | 155,122 | 35.4 | % | 118,030 | 31.6 | % | 132,611 | 30.6 | % | |||||||||||||||
Workers' Compensation Insurance | 44,549 | 10.2 | % | 48,628 | 13.0 | % | 63,542 | 14.7 | % | |||||||||||||||
Other | 29,530 | 6.7 | % | 28,805 | 7.7 | % | 33,141 | 7.6 | % | |||||||||||||||
Total | $ | 438,330 | 100.0 | % | $ | 373,340 | 100.0 | % | $ | 433,345 | 100.0 | % |
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Payor | Net Patient Revenue | Percentage | Net Patient Revenue | Percentage | Net Patient Revenue | Percentage | ||||||||||||||||||
Managed Care Programs | $ | 104,513 | 28.0 | % | $ | 124,516 | 28.7 | % | $ | 134,748 | 32.3 | % | ||||||||||||
Commercial Health | ||||||||||||||||||||||||
Insurance | 73,364 | 19.7 | % | 79,535 | 18.4 | % | 72,786 | 17.4 | % | |||||||||||||||
Medicare/Medicaid | 118,030 | 31.6 | % | 132,611 | 30.6 | % | 117,554 | 28.1 | % | |||||||||||||||
Workers' Compensation | ||||||||||||||||||||||||
Insurance | 48,628 | 13.0 | % | 63,542 | 14.7 | % | 59,942 | 14.4 | % | |||||||||||||||
Other | 28,805 | 7.7 | % | 33,141 | 7.6 | % | 32,673 | 7.8 | % | |||||||||||||||
Total | $ | 373,340 | 100.0 | % | $ | 433,345 | 100.0 | % | $ | 417,703 | 100.0 | % |
ITEM 1A. | RISK FACTORS. |
• | coding, billing and payment for services. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS. |
ITEM 2. | PROPERTIES. |
ITEM 3. | LEGAL PROCEEDINGS. |
ITEM 4. | MINE SAFETY DISCLOSURES. |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. |
12/15 | 12/16 | 12/17 | 12/18 | 12/19 | 12/20 | 12/16 | 12/17 | 12/18 | 12/19 | 12/20 | 12/21 | |||||||
U. S. Physical Therapy, Inc. | 100 | 131 | 135 | 191 | 213 | 224 | ||||||||||||
U.S Physical Therapy. Incs. | 100 | 103 | 146 | 156 | 171 | 136 | ||||||||||||
NYSE Composite | 100 | 109 | 126 | 112 | 137 | 143 | 100 | 116 | 103 | 123 | 131 | 155 | ||||||
NYSE Healthcare Index | 100 | 97 | 115 | 122 | 146 | 162 | 100 | 119 | 127 | 151 | 168 | 203 |
ITEM 6. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Acquisition | Date | % Interest Acquired | Number of Clinics | ||||
December 2021 Acquisition | December 31, 2021 | 75% | 3 | ||||
November 2021 Acquisition | November 30, 2021 | 70% | * | ||||
September 2021 Acquisition | September 30, 2021 | 100% | * | ||||
June 2021 Acquisition | June 30, 2021 | 65% | 8 | ||||
March 2021 Acquisition | March 31, 2021 | 70% | 6 | ||||
November 2020 Acquisition | November 30, 2020 | 75% | 3 | ||||
September 2020 Acquisition | September 30, 2020 | 70% | ** | ||||
February 2020 Acquisition | February 27, 2020 | 65% *** | 4 | ||||
September 2019 Acquisition | September 30, 2019 | 67% | 11 | ||||
April 2019 Acquisition | April 11, 2019 | 100% | * |
Acquisition | Date | % Interest Acquired | Number of Clinics | |||
November 2020 Acquisition | November 30, 2020 | 75% | 3 | |||
September 2020 Acquisition | September 30, 2020 | 70% | * | |||
February 2020 Acquisition | February 27, 2020 | 65% ** | 4 | |||
September 2019 Acquisition | September 30, 2019 | 67% | 11 | |||
August 2018 Acquisition | August 31, 2018 | 70% | 4 |
* | Industrial injury prevention business |
** | The business includes six management and services contracts which have been in place for a number of years. As of the date acquired, the contracts had a remaining term of |
*** | The four clinics are in four separate partnerships. The Company's interest in the four |
The CARES Act allowed for qualified healthcare providers to receive advanced payments under the existing Medicare Accelerated and Advance Payments Program (“MAAPP funds”) during the COVID-19 pandemic. Under this program, healthcare providers could choose to receive advanced payments for future Medicare services provided. We applied for and received approval to receive MAAP funds from Centers for Medicare & Medicaid Services (“CMS”) in April 2020. We recorded the $14.1 million in advance payments received as a liability. During the quarter ended March 31, 2021, we repaid the MAAPP funds of $14.1 million rather than applying them to future services performed. |
Year Ended | ||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Net patient revenue | $ | 438,330 | $ | 373,340 | $ | 433,345 | ||||||
Other revenue | 2,939 | 2,020 | 2,486 | |||||||||
Physical therapy operations | 441,269 | 375,360 | 435,831 | |||||||||
Management contract revenue | 9,853 | 8,410 | 8,676 | |||||||||
Industrial injury prevention services revenue | 43,900 | 39,199 | 37,462 | |||||||||
$ | 495,022 | $ | 422,969 | $ | 481,969 |
Year Ended | ||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||
Net patient revenues | $ | 373,340 | $ | 433,345 | $ | 417,703 | ||||||
Management contract revenues | 8,410 | 8,676 | 8,339 | |||||||||
Other revenues | 2,020 | 2,486 | 2,403 | |||||||||
Physical therapy operations | $ | 383,770 | $ | 444,507 | $ | 428,445 | ||||||
Industrial injury prevention services revenues | 39,199 | 37,462 | 25,466 | |||||||||
$ | 422,969 | $ | 481,969 | $ | 453,911 |
December 31, | December 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Gross patient accounts receivable | $ | 119,180 | $ | 124,035 | $ | 129,524 | $ | 119,180 | ||||||||
Less contractual allowances | 75,266 | 75,109 | 80,484 | 75,266 | ||||||||||||
Subtotal - accounts receivable | 43,914 | 48,926 | 49,040 | 43,914 | ||||||||||||
Less allowance for credit losses | 2,008 | 2,698 | 2,768 | 2,008 | ||||||||||||
Net patient accounts receivable | $ | 41,906 | $ | 46,228 | $ | 46,272 | $ | 41,906 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
Payor | Current to 120 Days | 120+ Days | Total | Current to 120 Days | 120+ Days | Total | ||||||||||||||||||
Managed Care/ Commercial Plans | $ | 13,053 | $ | 1,774 | $ | 14,827 | $ | 14,159 | $ | 1,783 | $ | 15,942 | ||||||||||||
Medicare/Medicaid | 10,707 | 1,196 | 11,903 | 11,408 | 1,491 | 12,899 | ||||||||||||||||||
Workers Compensation* | 6,576 | 926 | 7,502 | 6,593 | 1,121 | 7,714 | ||||||||||||||||||
Self-pay | 4,086 | 3,146 | 7,232 | 4,365 | 3,040 | 7,405 | ||||||||||||||||||
Other** | 1,108 | 1,342 | 2,450 | 808 | 1,460 | 2,268 | ||||||||||||||||||
Totals | $ | 35,530 | $ | 8,384 | $ | 43,914 | $ | 37,333 | $ | 8,895 | $ | 46,228 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||
Payor | Current to 120 Days | 120+ Days | Total | Current to 120 Days | 120+ Days | Total | ||||||||||||||||||
Managed Care/ Commercial Plans | $ | 13,985 | $ | 2,381 | $ | 16,366 | $ | 13,053 | $ | 1,774 | $ | 14,827 | ||||||||||||
Medicare/Medicaid | 13,442 | 1,636 | 15,078 | 10,707 | 1,196 | 11,903 | ||||||||||||||||||
Workers Compensation* | 5,600 | 1,312 | 6,912 | 6,576 | 926 | 7,502 | ||||||||||||||||||
Self-pay | 4,371 | 3,316 | 7,687 | 4,086 | 3,146 | 7,232 | ||||||||||||||||||
Other** | 1,168 | 1,829 | 2,997 | 1,108 | 1,342 | 2,450 | ||||||||||||||||||
Totals | $ | 38,566 | $ | 10,474 | $ | 49,040 | $ | 35,530 | $ | 8,384 | $ | 43,914 |
* | Workers compensation is paid by state administrators or their designated agents. |
** | Other includes primarily litigation claims and, to a lesser extent, vehicular insurance claims. |
2021 | Year ended December 31, 2021 |
2020 | Year ended December 31, 2020 |
Clinics opened or acquired during the year ended December 31, 2021 | |
2020 Additions | Clinics opened or acquired during the year ended December 31, 2020 |
Clinics Additions | Clinics opened or acquired during the year ended December 31, 2021 and 2020 |
Mature Clinics | Clinics opened or acquired prior to January 1, 2020 and are still operating |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Number of clinics, at the end of period | 554 | 583 | 591 | 554 | ||||||||||||
Working Days | 256 | 255 | 254 | 256 | ||||||||||||
Average visits per day per clinic | 24.6 | 27.6 | 29.1 | 24.6 | ||||||||||||
Total patient visits | 3,533,371 | 4,091,967 | 4,219,576 | 3,533,371 | ||||||||||||
Net patient revenue per visit | $ | 105.66 | $ | 105.90 | $ | 103.88 | $ | 105.66 |
For the Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Revenues: | ||||||||
Net patient revenues | $ | 373,340 | $ | 433,345 | ||||
Management contract revenue | 8,410 | 8,676 | ||||||
Other patient revenues | 2,020 | 2,486 | ||||||
Physical therapy operations | $ | 383,770 | $ | 444,507 | ||||
Industrial injury prevention services | 39,199 | 37,462 | ||||||
$ | 422,969 | $ | 481,969 |
Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||||||
Net income attributable to USPH shareholders | $ | 35,194 | $ | 40,039 | $ | 40,831 | $ | 35,194 | ||||||||
Credit (charges) to retained earnings: | ||||||||||||||||
(Charges) credit to retained earnings: | ||||||||||||||||
Revaluation of redeemable non-controlling interest | (4,632 | ) | (11,893 | ) | (13,011 | ) | (4,632 | ) | ||||||||
Tax effect at statutory rate (federal and state) of 26.25% | 1,216 | 3,121 | ||||||||||||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively | 3,324 | 1,216 | ||||||||||||||
$ | 31,144 | $ | 31,778 | |||||||||||||
$ | 31,778 | $ | 31,267 | |||||||||||||
Earnings per share (basic and diluted) | $ | 2.48 | $ | 2.45 | $ | 2.41 | $ | 2.48 |
For the Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 40,831 | $ | 35,194 | ||||
Credit (charges) to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | (13,011 | ) | (4,632 | ) | ||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively | 3,324 | 1,216 | ||||||
$ | 31,144 | $ | 31,778 | |||||
Earnings per share (basic and diluted) | $ | 2.41 | $ | 2.48 | ||||
Adjustments: | ||||||||
Closure costs | 30 | 3,931 | ||||||
Expenses related to executive officers transition | 1,301 | 1,331 | ||||||
Gain on sale of partnership interest and clinics | - | (1,091 | ) | |||||
Relief Funds | (4,597 | ) | (13,500 | ) | ||||
Settlement of a liability | 2,635 | - | ||||||
Allocation to non-controlling interest | 676 | 3,116 | ||||||
Revaluation of redeemable non-controlling interest | 13,011 | 4,632 | ||||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively | (3,336 | ) | 415 | |||||
Operating Results (excluding Relief Funds) (a non-GAAP measure) | $ | 40,864 | $ | 30,612 | ||||
Relief Funds | $ | 4,597 | $ | 13,500 | ||||
Allocation to non-controlling interest | (715 | ) | (2,893 | ) | ||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively | (992 | ) | (2,784 | ) | ||||
Operating Results (including Relief Funds) (a non-GAAP measure) | $ | 43,754 | $ | 38,435 | ||||
Basic and diluted Operating Results per share (excluding Relief Funds) (a non-GAAP measure) | $ | 3.17 | $ | 2.39 | ||||
Basic and diluted Operating Results per share (including Relief Funds) (a non-GAAP measure) | $ | 3.39 | $ | 2.99 | ||||
Shares used in computation - basic and diluted | 12,898 | 12,835 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 35,194 | $ | 40,039 | ||||
Credit (charges) to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | (4,632 | ) | (11,893 | ) | ||||
Tax effect at statutory rate (federal and state) of 26.25% | 1,216 | 3,121 | ||||||
$ | 31,778 | $ | 31,267 | |||||
Earnings per share (basic and diluted) | $ | 2.48 | $ | 2.45 | ||||
Adjustments: | ||||||||
Expenses related to CFO transition | 1,331 | - | ||||||
Closure costs | 3,931 | - | ||||||
Gain on sale of partnership interest and clinics | (1,091 | ) | (5,514 | ) | ||||
Relief Funds | (13,500 | ) | - | |||||
Allocation to non-controlling interest | 3,116 | - | ||||||
Revaluation of redeemable non-controlling interest | 4,632 | 11,893 | ||||||
Tax effect at statutory rate (federal and state) of 26.25% | 415 | (1,674 | ) | |||||
Operating Results (without Relief Funds) | $ | 30,612 | $ | 35,972 | ||||
Relief Funds | 13,500 | - | ||||||
Allocation to non-controlling interest | (2,893 | ) | - | |||||
Tax effect at statutory rate (federal and state) of 26.25% | (2,784 | ) | - | |||||
Operating Results (including Relief Funds) | $ | 38,435 | $ | 35,972 | ||||
Basic and diluted Operating Results (without Relief Funds) per share | $ | 2.39 | $ | 2.82 | ||||
Basic and diluted Operating Results (including Relief Funds) per share | $ | 2.99 | $ | 2.82 | ||||
Shares used in computation - basic and diluted | 12,835 | 12,756 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Net income attributable to USPH shareholders | $ | 35,194 | $ | 40,039 | ||||
Adjustments: | ||||||||
Depreciation and amortization | 10,533 | 10,095 | ||||||
Closure costs - derecognition of goodwill | 1,859 | - | ||||||
Relief Funds | (13,500 | ) | - | |||||
Interest income | (142 | ) | (46 | ) | ||||
Interest expense - debt and other | 1,634 | 2,079 | ||||||
Provision for income taxes | 13,022 | 13,647 | ||||||
Equity-based awards compensation expense | 7,917 | 6,985 | ||||||
Adjusted EBITDA (without Relief Funds) | $ | 56,517 | $ | 72,799 | ||||
Relief Funds | 13,500 | - | ||||||
Adjusted EBITDA | $ | 70,017 | $ | 72,799 |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Revenue related to Mature Clinics | $ | 402,744 | $ | 358,103 | ||||
Revenue related to 2021 Clinic Additions | 13,802 | - | ||||||
Revenue related to 2020 Clinic Additions | 21,283 | 9,664 | ||||||
Revenue from clinics sold or closed in 2021 | 455 | 1,242 | ||||||
Revenue from clinics sold or closed in 2020 | 46 | 4,331 | ||||||
Net patient revenue from physical therapy operations | 438,330 | 373,340 | ||||||
Other revenue | 2,939 | 2,020 | ||||||
Revenue from physical therapy operations | 441,269 | 375,360 | ||||||
Management contract revenue | 9,853 | 8,410 | ||||||
Industrial injury prevention services | 43,900 | 39,199 | ||||||
Net Revenue | $ | 495,022 | $ | 422,969 |
For the Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Related to Mature Clinics | $ | 359,294 | $ | 404,784 | ||||
Related to New Clinics | 9,664 | - | ||||||
From 2020 sold and closed clinics | 4,382 | 15,542 | ||||||
From 2019 sold and closed clinics | - | 13,019 | ||||||
$ | 373,340 | $ | 433,345 |
For the Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Revenues: | ||||||||
Net patient revenues | $ | 373,340 | $ | 433,345 | ||||
Management contract revenue | 8,410 | 8,676 | ||||||
Other patient revenues | 2,020 | 2,486 | ||||||
Physical therapy operations | $ | 383,770 | $ | 444,507 | ||||
Industrial injury prevention services | 39,199 | 37,462 | ||||||
$ | 422,969 | $ | 481,969 |
For the Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Physical Therapy Operations | ||||||||
Related to Mature Clinics | $ | 274,781 | $ | 306,128 | ||||
Related to New Clinics | 8,416 | - | ||||||
Related to 2020 closed and sold clinics | 5,583 | 14,588 | ||||||
Related to 2019 closed and sold clinics | 40 | 12,283 | ||||||
Physical therapy management contracts | 6,654 | 7,389 | ||||||
Total Physical Therapy Operations | $ | 295,474 | $ | 340,388 | ||||
Industrial injury prevention services | 29,114 | 29,082 | ||||||
Total operating costs, excluding closure costs | $ | 324,588 | $ | 369,470 |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Operating cost related to Mature Clinics | $ | 305,148 | $ | 273,476 | ||||
Operating cost related to 2021 Clinic Additions | 11,080 | - | ||||||
Operating cost related to 2020 Clinic Additions | 19,561 | 8,416 | ||||||
Operating cost related to clinics sold or closed in 2021 | 484 | 1,345 | ||||||
Operating cost related to clinics sold or closed in 2020 | 25 | 5,583 | ||||||
Closure costs | 30 | 3,931 | ||||||
Physical therapy operations | 336,328 | 292,751 | ||||||
Physical therapy management contracts | 8,306 | 6,655 | ||||||
Industrial injury prevention services | 33,206 | 29,113 | ||||||
Total operating cost | $ | 377,840 | $ | 328,519 | ||||
Less: Physical therapy operations - closure costs | (30 | ) | (3,931 | ) | ||||
Total operating cost excluding closure costs (a non-GAAP measure) | $ | 377,810 | $ | 324,588 |
For the Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Physical Therapy Operations | ||||||||
Related to Mature Clinics | $ | 196,686 | $ | 227,859 | ||||
Related to New Clinics | 5,495 | - | ||||||
Related to 2020 closed and sold clinics | 3,089 | 9,494 | ||||||
Related to 2019 closed and sold clinics | - | 7,248 | ||||||
Related to Physical therapy management contracts | 5,921 | 6,337 | ||||||
Total Physical Therapy Operations | $ | 211,191 | $ | 250,938 | ||||
Related to Industrial injury prevention services | 24,437 | 23,295 | ||||||
Total Salaries and related costs | $ | 235,628 | $ | 274,233 |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Physical therapy operations | ||||||||
Salaries and related costs related to Mature Clinics | $ | 222,431 | $ | 195,962 | ||||
Salaries and related costs related to 2021 Clinic Additions | 7,258 | - | ||||||
Salaries and related costs related to 2020 Clinic Additions | 13,940 | 5,495 | ||||||
Salaries and related costs related to clinics sold or closed in 2021 | 293 | 805 | ||||||
Salaries and related costs related to clinics sold or closed in 2020 | 18 | 3,009 | ||||||
Total Physical therapy operations | 243,940 | 205,271 | ||||||
Physical therapy management contracts | 7,316 | 5,921 | ||||||
Industrial injury prevention services | 27,213 | 24,437 | ||||||
Total salaries and related costs | $ | 278,469 | $ | 235,629 |
For the Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Physical Therapy Operations | ||||||||
Related to Mature Clinics | $ | 73,726 | $ | 73,766 | ||||
Related to New Clinics | 2,846 | - | ||||||
Related to 2020 closed and sold clinics | 2,437 | 4,896 | ||||||
Related to 2019 closed and sold clinics | 41 | 4,908 | ||||||
Related to Physical therapy management contracts | 734 | 1,052 | ||||||
Total Physical Therapy Operations | $ | 79,784 | $ | 84,622 | ||||
Related to Industrial injury prevention services | 4,552 | 5,757 | ||||||
Total Rent and other costs | $ | 84,336 | $ | 90,379 |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Physical therapy operations | ||||||||
Rent, supplies, contract labor and other costs related to Mature Clinics | $ | 77,770 | $ | 73,348 | ||||
Rent, supplies, contract labor and other costs related to 2021 Clinic Additions | 3,653 | - | ||||||
Rent, supplies, contract labor and other costs related to 2020 Clinic Additions | 5,436 | 2,846 | ||||||
Rent, supplies, contract labor and other costs related to clinics sold or closed in 2021 | 187 | 528 | ||||||
Rent, supplies, contract labor and other costs related to clinics sold or closed in 2020 | 8 | 2,328 | ||||||
Total Physical therapy operations | 87,054 | 79,050 | ||||||
Physical therapy management contracts | 989 | 734 | ||||||
Industrial injury prevention services | 5,993 | 4,552 | ||||||
Total rent, supplies, contract labor and other costs | $ | 94,036 | $ | 84,336 |
For the Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Gross profit, excluding closure costs: | ||||||||
Physical therapy clinics | $ | 86,540 | $ | 102,833 | ||||
Management contracts | 1,755 | 1,287 | ||||||
Industrial injury prevention services | 10,086 | 8,379 | ||||||
Gross profit, excluding closure costs | $ | 98,381 | $ | 112,499 |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Physical therapy operations | $ | 104,971 | $ | 86,540 | ||||
Management contracts | 1,547 | 1,755 | ||||||
Industrial injury prevention services | 10,694 | 10,086 | ||||||
Physical therapy operations - closure costs | (30 | ) | (3,931 | ) | ||||
Gross profit | $ | 117,182 | $ | 94,450 | ||||
Physical therapy operations - closure costs | 30 | 3,931 | ||||||
Gross profit, excluding closure costs (a non-GAAP measure) | $ | 117,212 | $ | 98,381 |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Income before taxes | $ | 73,196 | $ | 65,513 | ||||
Less: net income attributable to non-controlling interest: | ||||||||
Redeemable non-controlling interest - temporary equity | (11,358 | ) | (11,175 | ) | ||||
Non-controlling interest - permanent equity | (5,735 | ) | (6,122 | ) | ||||
$ | (17,093 | ) | $ | (17,297 | ) | |||
Income before taxes less net income attributable to non-controlling interest | $ | 56,103 | $ | 48,216 | ||||
Provision for income taxes | $ | 15,272 | $ | 13,022 | ||||
Effective tax rate | 27.2 | % | 27.0 | % |
Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Income before taxes | $ | 65,513 | $ | 70,906 | ||||
Less: net income attributable to non-controlling interests: | ||||||||
Non-controlling interests - permanent equity | (6,122 | ) | (6,561 | ) | ||||
Redeemable non-controlling interests - temporary equity | (11,175 | ) | (10,659 | ) | ||||
$ | (17,297 | ) | $ | (17,220 | ) | |||
Income before taxes less net income attributable to non-controlling interests | $ | 48,216 | $ | 53,686 | ||||
Provision for income taxes | $ | 13,022 | $ | 13,647 | ||||
Effective tax rate | 27.0 | % | 25.4 | % |
Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | |||||||||||||||||||||||||||||||||||||||||||
Credit Agreement | $ | 16,000 | $ | 16,000 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 114,000 | $ | - | $ | - | $ | - | $ | 114,000 | $ | - | $ | - | ||||||||||||||||||||||||||||
Notes Payable | 5,495 | 4,899 | 596 | - | - | - | - | 4,417 | 830 | 3,587 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Interest Payable | 114 | 107 | 7 | - | - | - | - | 292 | 74 | 218 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Employee Agreements | 47,884 | 39,402 | 7,145 | 1,332 | 5 | - | - | 61,278 | 52,837 | 8,321 | 120 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Operating Leases | 119,834 | 37,427 | 29,655 | 22,233 | 14,379 | 7,909 | 8,231 | 136,992 | 41,270 | 33,637 | 25,527 | 17,111 | 10,575 | 8,872 | ||||||||||||||||||||||||||||||||||||||||||
$ | 189,327 | $ | 97,835 | $ | 37,403 | $ | 23,565 | $ | 14,384 | $ | 7,909 | $ | 8,231 | $ | 316,979 | $ | 95,011 | $ | 45,763 | $ | 25,647 | $ | 131,111 | $ | 10,575 | $ | 8,872 |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
Reports of Independent Registered Public Accounting Firm—Grant Thornton LLP (PCAOB ID Number 248) | |
Audited Financial Statements: | |
/s/ GRANT THORNTON LLP |
Houston, Texas |
March 1, 2022 |
December 31, 2020 | December 31, 2019 | December 31, 2021 | December 31, 2020 | |||||||||||||
ASSETS | (audited) | (audited) | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 32,918 | $ | 23,548 | $ | 28,567 | $ | 32,918 | ||||||||
Patient accounts receivable, less allowance for credit losses of $2,008 and $2,698, respectively | 41,906 | 46,228 | ||||||||||||||
Patient accounts receivable, less allowance for credit losses of $2,768 and $2,008, respectively | 46,272 | 41,906 | ||||||||||||||
Accounts receivable - other | 9,039 | 9,823 | 16,144 | 9,039 | ||||||||||||
Other current assets | 3,773 | 5,787 | 4,183 | 3,773 | ||||||||||||
Total current assets | 87,636 | 85,386 | 95,166 | 87,636 | ||||||||||||
Fixed assets: | ||||||||||||||||
Furniture and equipment | 55,426 | 54,942 | 58,743 | 55,426 | ||||||||||||
Leasehold improvements | 35,320 | 33,247 | 39,194 | 35,320 | ||||||||||||
Fixed assets, gross | 90,746 | 88,189 | 97,937 | 90,746 | ||||||||||||
Less accumulated depreciation and amortization | 69,081 | 66,099 | 74,958 | 69,081 | ||||||||||||
Fixed assets, net | 21,665 | 22,090 | 22,979 | 21,665 | ||||||||||||
Operating lease right-of-use assets | 81,595 | 81,586 | 96,427 | 81,595 | ||||||||||||
Investment in unconsolidated affiliate | 12,215 | 0 | ||||||||||||||
Goodwill | 345,646 | 317,676 | 434,679 | 345,646 | ||||||||||||
Other identifiable intangible assets, net | 56,280 | 52,588 | 86,382 | 56,280 | ||||||||||||
Other assets | 1,539 | 1,519 | 1,578 | 1,539 | ||||||||||||
Total assets | $ | 594,361 | $ | 560,845 | $ | 749,426 | $ | 594,361 | ||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTERESTS | ||||||||||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable - trade | $ | 1,335 | $ | 2,494 | $ | 3,268 | $ | 1,335 | ||||||||
Accounts payable - due to seller of acquired business | 3,203 | 0 | ||||||||||||||
Accrued expenses | 59,746 | 30,855 | 45,705 | 59,746 | ||||||||||||
Current portion of operating lease liabilities | 27,512 | 26,486 | 30,475 | 27,512 | ||||||||||||
Current portion of notes payable | 4,899 | 728 | 830 | 4,899 | ||||||||||||
Total current liabilities | 93,492 | 60,563 | 83,481 | 93,492 | ||||||||||||
Notes payable, net of current portion | 596 | 4,361 | 3,587 | 596 | ||||||||||||
Revolving line of credit | 16,000 | 46,000 | 114,000 | 16,000 | ||||||||||||
Deferred taxes | 7,779 | 10,071 | 14,385 | 7,779 | ||||||||||||
Operating lease liabilities, net of current portion | 61,985 | 60,258 | 74,185 | 61,985 | ||||||||||||
Other long-term liabilities | 4,539 | 141 | 7,345 | 4,539 | ||||||||||||
Total liabilities | 184,391 | 181,394 | 296,983 | 184,391 | ||||||||||||
Redeemable non-controlling interests - temporary equity | 132,340 | 137,750 | ||||||||||||||
Redeemable non-controlling interest - temporary equity | 155,262 | 132,340 | ||||||||||||||
Commitments and Contingencies (Note 17) | 0 | 0 | ||||||||||||||
Commitments and Contingencies | 0 | 0 | ||||||||||||||
U.S. Physical Therapy, Inc. (“USPH”) shareholders’ equity: | ||||||||||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized, 0 shares issued and outstanding | 0 | 0 | ||||||||||||||
Common stock, $0.01 par value, 20,000,000 shares authorized, 15,066,282 and 14,989,337 shares issued, respectively | 151 | 150 | ||||||||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized, 0 shares issued and outstanding | 0 | 0 | ||||||||||||||
Common stock, $0.01 par value, 20,000,000 shares authorized, 15,126,160 and 15,066,282 shares issued, respectively | 151 | 151 | ||||||||||||||
Additional paid-in capital | 95,622 | 87,383 | 102,688 | 95,622 | ||||||||||||
Retained earnings | 212,015 | 184,352 | 224,395 | 212,015 | ||||||||||||
Treasury stock at cost, 2,214,737 shares | (31,628 | ) | (31,628 | ) | (31,628 | ) | (31,628 | ) | ||||||||
Total USPH shareholders’ equity | 276,160 | 240,257 | 295,606 | 276,160 | ||||||||||||
Non-controlling interests - permanent equity | 1,470 | 1,444 | ||||||||||||||
Total USPH shareholders' equity and non-controlling interests | 277,630 | 241,701 | ||||||||||||||
Total liabilities, redeemable non-controlling interests, USPH shareholders' equity and non-controlling interests | $ | 594,361 | $ | 560,845 | ||||||||||||
Non-controlling interest - permanent equity | 1,575 | 1,470 | ||||||||||||||
Total USPH shareholders' equity and non-controlling interest - permanent equity | 297,181 | 277,630 | ||||||||||||||
Total liabilities, redeemable non-controlling interest, USPH shareholders' equity and non-controlling interest - permanent equity | $ | 749,426 | $ | 594,361 |
Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||
Net patient revenues | $ | 373,340 | $ | 433,345 | $ | 417,703 | ||||||||||||||||||
Other revenues | 49,629 | 48,624 | 36,208 | |||||||||||||||||||||
Net revenues | 422,969 | 481,969 | 453,911 | |||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||
Net patient revenue | $ | 438,330 | $ | 373,340 | $ | 433,345 | ||||||||||||||||||
Other revenue | 56,692 | 49,629 | 48,624 | |||||||||||||||||||||
Net revenue | 495,022 | 422,969 | 481,969 | |||||||||||||||||||||
Operating cost: | ||||||||||||||||||||||||
Salaries and related costs | 235,629 | 274,233 | 259,228 | 278,469 | 235,629 | 274,233 | ||||||||||||||||||
Rent, supplies, contract labor and other | 84,336 | 90,379 | 88,426 | 94,036 | 84,336 | 90,379 | ||||||||||||||||||
Provision for credit losses | 4,623 | 4,858 | 4,603 | 5,305 | 4,623 | 4,858 | ||||||||||||||||||
Closure costs - lease and other | 2,072 | 25 | (9 | ) | 30 | 2,072 | 25 | |||||||||||||||||
Closure costs - derecognition of goodwill | 1,859 | 0 | 0 | 0 | 1,859 | 0 | ||||||||||||||||||
Total operating costs | 328,519 | 369,495 | 352,248 | |||||||||||||||||||||
Total operating cost | 377,840 | 328,519 | 369,495 | |||||||||||||||||||||
Gross profit | 94,450 | 112,474 | 101,663 | 117,182 | 94,450 | 112,474 | ||||||||||||||||||
Corporate office costs | 42,037 | 45,049 | 41,349 | 46,533 | 42,037 | 45,049 | ||||||||||||||||||
Operating income | 52,413 | 67,425 | 60,314 | 70,649 | 52,413 | 67,425 | ||||||||||||||||||
Other income and expense: | ||||||||||||||||||||||||
Other income and expense | ||||||||||||||||||||||||
Relief Funds | 13,501 | 0 | 0 | 4,597 | 13,501 | 0 | ||||||||||||||||||
Gain on sale of partnership interest and clinics | 1,091 | 5,514 | 0 | 0 | 1,091 | 5,514 | ||||||||||||||||||
Gain on derecognition of debt | 0 | 0 | 1,846 | |||||||||||||||||||||
Settlement of a legal matter | (2,635 | ) | 0 | 0 | ||||||||||||||||||||
Resolution of a payor matter | 1,216 | 0 | 0 | |||||||||||||||||||||
Equity in earnings of unconsolidated affiliate | 112 | 0 | 0 | |||||||||||||||||||||
Interest and other income, net | 142 | 46 | 93 | 199 | 142 | 46 | ||||||||||||||||||
Interest expense - debt and other | (1,634 | ) | (2,079 | ) | (2,042 | ) | (942 | ) | (1,634 | ) | (2,079 | ) | ||||||||||||
Total other income and expense | 13,100 | 3,481 | (103 | ) | 2,547 | 13,100 | 3,481 | |||||||||||||||||
Income before taxes | 65,513 | 70,906 | 60,211 | |||||||||||||||||||||
Income and equity in earnings of unconsolidated affiliates before taxes | 73,196 | 65,513 | 70,906 | |||||||||||||||||||||
Provision for income taxes | 13,022 | 13,647 | 11,369 | 15,272 | 13,022 | 13,647 | ||||||||||||||||||
Net income | 52,491 | 57,259 | 48,842 | 57,924 | 52,491 | 57,259 | ||||||||||||||||||
Less: net income attributable to non-controlling interests: | ||||||||||||||||||||||||
Non-controlling interests - permanent equity | (6,122 | ) | (6,561 | ) | (5,536 | ) | ||||||||||||||||||
Redeemable non-controlling interests - temporary equity | (11,175 | ) | (10,659 | ) | (8,433 | ) | ||||||||||||||||||
Less: net income attributable to non-controlling interest: | ||||||||||||||||||||||||
Redeemable non-controlling interest - temporary equity | (11,358 | ) | (11,175 | ) | (10,659 | ) | ||||||||||||||||||
Non-controlling interest - permanent equity | (5,735 | ) | (6,122 | ) | (6,561 | ) | ||||||||||||||||||
(17,297 | ) | (17,220 | ) | (13,969 | ) | (17,093 | ) | (17,297 | ) | (17,220 | ) | |||||||||||||
Net income attributable to USPH shareholders | $ | 35,194 | $ | 40,039 | $ | 34,873 | $ | 40,831 | $ | 35,194 | $ | 40,039 | ||||||||||||
Basic and diluted earnings per share attributable to USPH shareholders | $ | 2.48 | $ | 2.45 | $ | 1.31 | $ | 2.41 | $ | 2.48 | $ | 2.45 | ||||||||||||
Shares used in computation - basic and diluted | 12,835 | 12,756 | 12,666 | 12,898 | 12,835 | 12,756 | ||||||||||||||||||
Dividends declared per common share | $ | 0.32 | $ | 1.14 | $ | 0.92 | $ | 1.46 | $ | 0.32 | $ | 1.14 |
U.S. Physical Therapy, Inc. | U.S. Physical Therapy, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1, 2018 | 14,809 | $ | 148 | $ | 73,940 | $ | 162,406 | (2,215 | ) | $ | (31,628 | ) | $ | 204,866 | $ | 1,204 | $ | 206,070 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1, 2019 | 14,899 | $ | 149 | $ | 80,028 | $ | 167,396 | (2,215 | ) | $ | (31,628 | ) | $ | 215,945 | $ | 930 | $ | 216,875 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 90 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 90 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | 0 | 0 | 0 | (18,268 | ) | 0 | 0 | (18,268 | ) | 0 | (18,268 | ) | 0 | 0 | 0 | (8,771 | ) | 0 | 0 | (8,771 | ) | 0 | (8,771 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 5,939 | 0 | - | 0 | 5,939 | 0 | 5,939 | - | 0 | 6,985 | 0 | - | 0 | 6,985 | 0 | 6,985 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | 0 | 373 | 0 | - | 0 | 373 | 0 | 373 | - | 0 | 636 | 0 | - | 0 | 636 | 0 | 636 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of partnership interests - non-controlling interest | - | 0 | (266 | ) | 0 | - | 0 | (266 | ) | (26 | ) | (292 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of non-controlling interest, net of purchases and tax | - | 0 | (224 | ) | 0 | - | 0 | (224 | ) | (48 | ) | (272 | ) | - | 0 | 0 | 196 | - | 0 | 196 | 0 | 196 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (11,664 | ) | - | 0 | (11,664 | ) | 0 | (11,664 | ) | - | 0 | 0 | (14,555 | ) | - | 0 | (14,555 | ) | 0 | (14,555 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (5,812 | ) | (5,812 | ) | - | 0 | 0 | 0 | - | 0 | 0 | (6,014 | ) | (6,014 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 0 | 0 | 49 | - | 0 | 49 | 50 | 99 | - | 0 | 0 | 47 | - | 0 | 47 | (7 | ) | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 5,536 | 5,536 | - | 0 | 0 | 0 | - | 0 | 0 | 6,561 | 6,561 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 34,873 | - | 0 | 34,873 | 0 | 34,873 | - | 0 | 0 | 40,039 | - | 0 | 40,039 | 0 | 40,039 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 14,899 | $ | 149 | $ | 80,028 | $ | 167,396 | (2,215 | ) | $ | (31,628 | ) | $ | 215,945 | $ | 930 | $ | 216,875 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | 14,989 | $ | 150 | $ | 87,383 | $ | 184,352 | (2,215 | ) | $ | (31,628 | ) | $ | 240,257 | $ | 1,444 | $ | 241,701 |
U.S. Physical Therapy, Inc. | U.S. Physical Therapy, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 90 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 77 | $ | 1 | $ | 0 | $ | 0 | 0 | $ | 0 | $ | 1 | $ | 0 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | 0 | 0 | 0 | (8,771 | ) | 0 | 0 | (8,771 | ) | 0 | (8,771 | ) | 0 | 0 | 0 | (3,415 | ) | 0 | 0 | (3,415 | ) | 0 | (3,415 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 6,985 | 0 | - | 0 | 6,985 | 0 | 6,985 | - | 0 | 7,917 | 0 | - | 0 | 7,917 | 0 | 7,917 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | 0 | 636 | 0 | - | 0 | 636 | 0 | 636 | - | 0 | 486 | 0 | - | 0 | 486 | 0 | 486 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | 0 | (266 | ) | 0 | - | 0 | (266 | ) | (26 | ) | (292 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of partnership interests - non-controlling interest | - | 0 | 0 | 0 | - | 0 | 0 | (168 | ) | (168 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of non-controlling interest, net of purchases and tax | - | 0 | 0 | 196 | - | 0 | 196 | 0 | 196 | - | 0 | (164 | ) | 0 | - | 0 | (164 | ) | 0 | (164 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (14,555 | ) | - | 0 | (14,555 | ) | 0 | (14,555 | ) | - | 0 | 0 | (4,110 | ) | - | 0 | (4,110 | ) | 0 | (4,110 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (6,014 | ) | (6,014 | ) | - | 0 | 0 | 0 | - | 0 | 0 | (5,928 | ) | (5,928 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 0 | 0 | 47 | - | 0 | 47 | (7 | ) | 40 | - | 0 | 0 | (6 | ) | - | 0 | (6 | ) | 0 | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 6,561 | 6,561 | - | 0 | 0 | 0 | - | 0 | 0 | 6,122 | 6,122 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 40,039 | - | 0 | 40,039 | 0 | 40,039 | - | 0 | 0 | 35,194 | - | 0 | 35,194 | 0 | 35,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | 14,989 | 150 | 87,383 | 184,352 | (2,215 | ) | (31,628 | ) | 240,257 | 1,444 | 241,701 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | 15,066 | $ | 151 | $ | 95,622 | $ | 212,015 | (2,215 | ) | $ | (31,628 | ) | $ | 276,160 | $ | 1,470 | $ | 277,630 |
U.S. Physical Therapy, Inc. | U.S. Physical Therapy, Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 76 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 60 | $ | 0 | $ | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | 0 | 0 | 0 | (3,415 | ) | 0 | 0 | (3,415 | ) | 0 | (3,415 | ) | 0 | 0 | 0 | (9,686 | ) | 0 | 0 | (9,686 | ) | 0 | (9,686 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 7,917 | 0 | - | 0 | 7,917 | 0 | 7,917 | - | 0 | 7,867 | 0 | - | 0 | 7,867 | 0 | 7,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | 0 | 486 | 0 | - | 0 | 486 | 0 | 486 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | 0 | 0 | 0 | - | 0 | 0 | (168 | ) | (168 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of partnership interests - non-controlling interest | - | 0 | (918 | ) | 0 | - | 0 | (918 | ) | (60 | ) | (978 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of non-controlling interest, net of purchases and tax | - | 0 | (164 | ) | 0 | - | 0 | (164 | ) | 0 | (164 | ) | - | 0 | 96 | 0 | - | 0 | 96 | 2 | 98 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (4,110 | ) | - | 0 | (4,110 | ) | 0 | (4,110 | ) | - | 0 | 0 | (18,765 | ) | - | 0 | (18,765 | ) | 0 | (18,765 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (5,928 | ) | (5,928 | ) | - | 0 | 0 | 0 | - | 0 | 0 | (5,572 | ) | (5,572 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Short swing profit settlement | - | 0 | 20 | 0 | - | 0 | 20 | 0 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | - | 0 | 0 | (6 | ) | - | 0 | (6 | ) | 0 | (6 | ) | - | 0 | 1 | 0 | - | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 6,122 | 6,122 | - | 0 | 0 | 0 | - | 0 | 0 | 5,735 | 5,735 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 35,194 | - | 0 | 35,194 | 0 | 35,194 | - | 0 | 0 | 40,831 | - | 0 | 40,831 | 0 | 40,831 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2020 | 15,065 | 151 | 95,622 | 212,015 | (2,215 | ) | (31,628 | ) | 276,160 | 1,470 | 277,630 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2021 | 15,126 | $ | 151 | $ | 102,688 | $ | 224,395 | (2,215 | ) | $ | (31,628 | ) | $ | 295,606 | $ | 1,575 | $ | 297,181 |
Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||||||
Net income including non-controlling interests | $ | 52,491 | $ | 57,259 | $ | 48,842 | ||||||||||||||||||
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities: | ||||||||||||||||||||||||
Net income including non-controlling interest and earnings from unconsolidated affiliates, net | $ | 57,924 | $ | 52,491 | $ | 57,259 | ||||||||||||||||||
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 10,533 | 10,095 | 9,755 | 11,591 | 10,533 | 10,095 | ||||||||||||||||||
Provision for credit losses | 4,623 | 4,858 | 4,603 | 5,305 | 4,623 | 4,858 | ||||||||||||||||||
Equity-based awards compensation expense | 7,917 | 6,985 | 5,939 | 7,867 | 7,917 | 6,985 | ||||||||||||||||||
Deferred income taxes | (258 | ) | 4,651 | 4,813 | 5,688 | (258 | ) | 4,651 | ||||||||||||||||
Gain on sale of partnership interest | (1,091 | ) | (5,514 | ) | (1,846 | ) | 0 | (1,091 | ) | (5,514 | ) | |||||||||||||
Write-off of goodwill - closed clinics | 1,859 | 0 | 0 | |||||||||||||||||||||
Derecognition (write-off) of goodwill - closed clinics | 0 | 1,859 | 0 | |||||||||||||||||||||
Earnings in unconsolidated affiliate | (112 | ) | 0 | 0 | ||||||||||||||||||||
Other | 281 | 96 | 167 | (134 | ) | 281 | 96 | |||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Decrease (increase) in patient accounts receivable | 899 | (6,376 | ) | (3,434 | ) | |||||||||||||||||||
Decrease(increase) in accounts receivable - other | 1,661 | (2,499 | ) | (1,087 | ) | |||||||||||||||||||
Decrease (increase) in other assets | 4,161 | (1,878 | ) | 345 | ||||||||||||||||||||
(Increase) decrease in patient accounts receivable | (9,417 | ) | 899 | (6,376 | ) | |||||||||||||||||||
(Increase) decrease in accounts receivable - other | (1,538 | ) | 1,661 | (2,499 | ) | |||||||||||||||||||
(Increase) decrease in other assets | (633 | ) | 4,161 | (1,878 | ) | |||||||||||||||||||
Increase (decrease) in accounts payable and accrued expenses | 12,427 | (4,209 | ) | 4,876 | 4,657 | 12,427 | (4,209 | ) | ||||||||||||||||
Increase (decrease) in other long-term liabilities | 4,492 | (1,020 | ) | 32 | (4,792 | ) | 4,492 | (1,020 | ) | |||||||||||||||
Net cash provided by operating activities | 99,995 | 62,448 | 73,005 | 76,406 | 99,995 | 62,448 | ||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||
Purchase of fixed assets | (7,639 | ) | (10,189 | ) | (7,193 | ) | (8,201 | ) | (7,639 | ) | (10,189 | ) | ||||||||||||
Purchase of majority interest in businesses, net of cash acquired | (23,907 | ) | (30,597 | ) | (16,367 | ) | (86,823 | ) | (23,907 | ) | (30,597 | ) | ||||||||||||
Purchase of redeemable non-controlling interest, temporary equity | (20,385 | ) | (8,651 | ) | 0 | (28,465 | ) | (20,385 | ) | (8,651 | ) | |||||||||||||
Purchase of non-controlling interest, permanent equity | (238 | ) | (428 | ) | (350 | ) | (1,274 | ) | (238 | ) | (428 | ) | ||||||||||||
Proceeds on sale of redeemable non-controlling interest, temporary equity | 127 | 207 | 0 | 69 | 127 | 207 | ||||||||||||||||||
Proceeds on sales of partnership interest, clinics and fixed assets | 839 | 11,665 | 1 | 275 | 839 | 11,665 | ||||||||||||||||||
Distributions from unconsolidated affiliate | 152 | 0 | 0 | �� | ||||||||||||||||||||
Sales of non-controlling interest-permanent | 131 | 0 | 0 | |||||||||||||||||||||
Net cash used in investing activities | (51,203 | ) | (37,993 | ) | (23,909 | ) | (124,136 | ) | (51,203 | ) | (37,993 | ) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||
Distributions to non-controlling interests, permanent and temporary equity | (18,331 | ) | (16,235 | ) | (15,646 | ) | ||||||||||||||||||
Distributions to non-controlling interest, permanent and temporary equity | (16,931 | ) | (18,331 | ) | (16,235 | ) | ||||||||||||||||||
Cash dividends paid to shareholders | (4,110 | ) | (14,555 | ) | (11,664 | ) | (18,765 | ) | (4,110 | ) | (14,555 | ) | ||||||||||||
Proceeds from revolving line of credit | 214,000 | 145,000 | 103,000 | 316,000 | 214,000 | 145,000 | ||||||||||||||||||
Payments on revolving line of credit | (244,000 | ) | (137,000 | ) | (119,000 | ) | (218,000 | ) | (244,000 | ) | (137,000 | ) | ||||||||||||
Payments to settle mandatorily redeemable non-controlling interests | 0 | 0 | (265 | ) | ||||||||||||||||||||
Principal payments on notes payable | (1,037 | ) | (1,433 | ) | (4,044 | ) | (4,899 | ) | (1,037 | ) | (1,433 | ) | ||||||||||||
Medicare Accelerated and Advance Payment Funds | 14,054 | 0 | 0 | |||||||||||||||||||||
(Payment) receipt of Medicare Accelerated and Advance Funds | (14,054 | ) | 14,054 | 0 | ||||||||||||||||||||
Other | 2 | (52 | ) | (42 | ) | 28 | 2 | (52 | ) | |||||||||||||||
Net cash used in financing activities | (39,422 | ) | (24,275 | ) | (47,661 | ) | ||||||||||||||||||
Net cash provided by (used in) financing activities | 43,379 | (39,422 | ) | (24,275 | ) | |||||||||||||||||||
Net increase in cash and cash equivalents | 9,370 | 180 | 1,435 | |||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (4,351 | ) | 9,370 | 180 | ||||||||||||||||||||
Cash and cash equivalents - beginning of period | 23,548 | 23,368 | 21,933 | 32,918 | 23,548 | 23,368 | ||||||||||||||||||
Cash and cash equivalents - end of period | $ | 32,918 | $ | 23,548 | $ | 23,368 | $ | 28,567 | $ | 32,918 | $ | 23,548 | ||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||||||||||||||
Cash paid during the period for: | ||||||||||||||||||||||||
Income taxes | $ | 7,677 | $ | 9,856 | $ | 9,183 | $ | 12,214 | $ | 7,677 | $ | 9,856 | ||||||||||||
Interest | $ | 1,202 | $ | 1,890 | $ | 2,357 | $ | 1,352 | $ | 1,202 | $ | 1,890 | ||||||||||||
Non-cash investing and financing transactions during the period: | ||||||||||||||||||||||||
Purchase of businesses - seller financing portion | $ | 1,121 | $ | 4,300 | $ | 950 | $ | 3,050 | $ | 1,121 | $ | 4,300 | ||||||||||||
Purchase of business - payable to common shareholders of acquired business | $ | 0 | $ | 502 | $ | 0 | $ | 0 | $ | 0 | $ | 502 | ||||||||||||
Notes payable related to purchase of redeemable non-controlling interest, temporary equity | $ | 136 | $ | 283 | $ | 0 | $ | 1,759 | $ | 136 | $ | 283 | ||||||||||||
Notes payable related to purchase of non-controlling interest, permanent equity | $ | 699 | $ | 103 | $ | 0 | ||||||||||||||||||
Notes payable due to purchase of non-controlling interest, permanent equity | $ | 0 | $ | 699 | $ | 103 | ||||||||||||||||||
Notes receivable related to sale of partnership interest - redeemable non-controlling interest | $ | 0 | $ | 2,870 | $ | 0 | $ | 914 | $ | 0 | $ | 2,870 | ||||||||||||
Notes receivables related to sale of partnership interest | $ | 994 | $ | 0 | $ | 0 | ||||||||||||||||||
Note receivables related to sale of partnership interest | $ | 0 | $ | 994 | $ | 0 |
Acquisition | Date | % Interest Acquired | Number of Clinics | |||
December 2021 Acquisition | December 31, 2021 | 75% | 3 | |||
November 2021 Acquisition | November 30, 2021 | 70% | * | |||
September 2021 Acquisition | September 30, 2021 | 100% | * | |||
June 2021 Acquisition | June 30, 2021 | 65% | 8 | |||
March 2021 Acquisition | March 31, 2021 | 70% | 6 | |||
November 2020 Acquisition | November 30, 2020 | 75% | 3 | |||
September 2020 Acquisition | September 30, 2020 | 70% | ** | |||
February 2020 Acquisition | February 27, 2020 | 65% *** | 4 | |||
September 2019 Acquisition | September 30, 2019 | 67% | 11 | |||
April 2019 Acquisition | April 11, 2019 | 100% | * |
* | Industrial injury prevention business |
** | The business includes 6 management and services contracts which have been in place for a number of years. As of the date acquired, the contracts had a remaining term of five years. |
*** | The four clinics are in 4 separate partnerships. The Company's interest in the 4 partnerships range from 10.0% to 83.8%, with an overall 65.0% based on the initial purchase transaction. |
Acquisition | Date | % Interest Acquired | Number of Clinics | |||
November 2020 Acquisition | November 30, 2020 | 75% | 3 | |||
September 2020 Acquisition | September 30, 2020 | 70% | *0 | |||
February 2020 Acquisition | February 27, 2020 | 65% | ** | 4 | ||
September 2019 Acquisition | September 30, 2019 | 67% | 11 | |||
August 2018 Acquisition | August 31, 2018 | 70% | 4 |
Year Ended | ||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||
Net patient revenues | $ | 373,340 | $ | 433,345 | $ | 417,703 | ||||||
Management contract revenues | 8,410 | 8,676 | 8,339 | |||||||||
Other revenues | 2,020 | 2,486 | 2,403 | |||||||||
Physical therapy operations | $ | 383,770 | $ | 444,507 | $ | 428,445 | ||||||
Industrial injury prevention services revenues | 39,199 | 37,462 | 25,466 | |||||||||
$ | 422,969 | $ | 481,969 | $ | 453,911 |
Year Ended | ||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Net patient revenue | $ | 438,330 | $ | 373,340 | $ | 433,345 | ||||||
Other patient revenue | 2,939 | 2,020 | 2,486 | |||||||||
Physical therapy operations | $ | 441,269 | $ | 375,360 | $ | 435,831 | ||||||
Physical therapy management contracts | 9,853 | 8,410 | 8,676 | |||||||||
Industrial injury prevention services | 43,900 | 39,199 | 37,462 | |||||||||
$ | 495,022 | $ | 422,969 | $ | 481,969 |
Acquisition | Date | % Interest Acquired | Number of Clinics | |||
December 2021 Acquisition | December 31, 2021 | 75% | 3 | |||
November 2021 Acquisition | November 30, 2021 | 70% | IIPS* | |||
September 2021 Acquisition | September 30, 2021 | 100% | IIPS* | |||
June 2021 Acquisition | June 30, 2021 | 65% | 8 | |||
March 2021 Acquisition | March 31, 2021 | 70% | 6 | |||
November 2020 Acquisition | November 30, 2020 | 75% | 3 | |||
September 2020 Acquisition | September 30, 2020 | 70% | ** | |||
February 2020 Acquisition | February 27, 2020 | 65% | *** | 4 | ||
September 2019 Acquisition | September 30, 2019 | 67% | 11 | |||
April 2019 Acquisition | April 11, 2019 | 100% | * |
* | Industrial injury prevention business |
** | The business includes 6 management and services contracts which have been in place for a number of years. As of the date acquired, the contracts had a remaining term of five years. |
*** | The 4 clinics are in 4 separate partnerships. The Company's interest in the 4 partnerships range from 10.0% to 83.8%, with an overall 65.0% based on the initial purchase transaction. |
Acquisition | Date | % Interest Acquired | Number of Clinics | |||
November 2020 Acquisition | November 30, 2020 | 75% | 3 | |||
September 2020 Acquisition | September 30, 2020 | 70% | * | |||
February 2020 Acquisition | February 27, 2020 | 65% | ** | 4 | ||
September 2019 Acquisition | September 30, 2019 | 67% | 11 | |||
August 2018 Acquisition | August 31, 2018 | 70% | 4 |
IIPS* | Physical Therapy Operations | Total | ||||||||||
Cash paid, net of cash acquired | $ | 63,193 | $ | 23,630 | $ | 86,823 | ||||||
Seller notes | 1,250 | 800 | 2,050 | |||||||||
Contingent payments | 2,520 | 837 | 3,357 | |||||||||
Other payable | 0 | 1,000 | 1,000 | |||||||||
Seller put right | 3,522 | 3,522 | ||||||||||
Total consideration | $ | 70,485 | $ | 26,267 | $ | 96,752 | ||||||
Estimated fair value of net tangible assets acquired: | ||||||||||||
Total current assets | $ | 5,589 | $ | 1,046 | $ | 6,635 | ||||||
Total non-current assets | 12,620 | 6,462 | 19,082 | |||||||||
Total liabilities | (4,842 | ) | (6,832 | ) | (11,674 | ) | ||||||
Net tangible assets acquired | $ | 13,367 | $ | 676 | $ | 14,043 | ||||||
Customer and referral relationships | 21,126 | 3,729 | 24,855 | |||||||||
Non-compete agreements | 500 | 574 | 1,074 | |||||||||
Tradenames | 5,141 | 1,755 | 6,896 | |||||||||
Goodwill | 58,257 | 31,489 | 89,746 | |||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | (27,906 | ) | (11,956 | ) | (39,862 | ) | ||||||
$ | 70,485 | $ | 26,267 | $ | 96,752 |
Cash paid, net of cash acquired ($500) | $ | 23,907 | ||||||
Cash paid, net of cash acquired | $ | 23,912 | ||||||
Seller note | 1,121 | 1,121 | ||||||
Total consideration | $ | 25,028 | $ | 25,033 | ||||
Estimated fair value of net tangible assets acquired: | ||||||||
Total current assets | $ | 1,271 | $ | 1,049 | ||||
Total non-current assets | 134 | 196 | ||||||
Total liabilities | (555 | ) | (562 | ) | ||||
Net tangible assets acquired | $ | 850 | $ | 683 | ||||
Referral relationships | 3,597 | 5,520 | ||||||
Non-compete | 1,012 | 500 | ||||||
Tradename | 2,326 | 1,890 | ||||||
Goodwill | 28,540 | 27,738 | ||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | (11,297 | ) | ||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | (11,298 | ) | ||||||
$ | 25,028 | $ | 25,033 |
IIPS* | Physical Therapy Operations | Total | IIPS* | Physical Therapy Operations | Total | |||||||||||||||||||
Cash paid, net of cash acquired ($890) | $ | 18,428 | $ | 12,170 | $ | 30,598 | ||||||||||||||||||
Cash paid, net of cash acquired ($890) | $ | 18,428 | $ | 12,170 | $ | 30,598 | ||||||||||||||||||
Payable to shareholders of seller | 485 | 0 | 485 | 485 | 0 | 485 | ||||||||||||||||||
Seller note | 4,000 | 300 | 4,300 | 4,000 | 300 | 4,300 | ||||||||||||||||||
Total consideration | $ | 22,913 | $ | 12,470 | $ | 35,383 | $ | 22,913 | $ | 12,470 | $ | 35,383 | ||||||||||||
Estimated fair value of net tangible assets acquired: | ||||||||||||||||||||||||
Total current assets | $ | 1,641 | $ | 650 | $ | 2,291 | $ | 1,641 | $ | 650 | $ | 2,291 | ||||||||||||
Total non-current assets | 848 | 394 | 1,242 | 848 | 394 | 1,242 | ||||||||||||||||||
Total liabilities | (2,978 | ) | (191 | ) | (3,169 | ) | (2,978 | ) | (191 | ) | (3,169 | ) | ||||||||||||
Net tangible assets acquired | $ | (489 | ) | $ | 853 | $ | 364 | $ | (489 | ) | $ | 853 | $ | 364 | ||||||||||
Referral relationships | 3,400 | 2,600 | 6,000 | 3,400 | 2,600 | 6,000 | ||||||||||||||||||
Non-compete | 250 | 270 | 520 | 250 | 270 | 520 | ||||||||||||||||||
Tradename | 1,300 | 740 | 2,040 | 1,300 | 740 | 2,040 | ||||||||||||||||||
Goodwill | 18,452 | 14,237 | 32,689 | 18,452 | 14,237 | 32,689 | ||||||||||||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | 0 | (6,230 | ) | (6,230 | ) | |||||||||||||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | 0 | (6,230 | ) | (6,230 | ) | |||||||||||||||||||
$ | 22,913 | $ | 12,470 | $ | 35,383 | $ | 22,913 | $ | 12,470 | $ | 35,383 |
Cash paid, net of cash acquired ($372) | $ | 16,367 | ||
Seller note | 950 | |||
Total consideration | $ | 17,317 | ||
Estimated fair value of net tangible assets acquired: | ||||
Total current assets | $ | 1,633 | ||
Total non-current assets | 305 | |||
Total liabilities | (525 | ) | ||
Net tangible assets acquired | $ | 1,413 | ||
Referral relationships | 2,926 | |||
Non-compete | 298 | |||
Tradename | 990 | |||
Goodwill | 19,835 | |||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | (8,145 | ) | ||
$ | 17,317 |
1. | Prior to the Acquisition, the Therapy Practice exists as a separate legal entity (the “Seller Entity”). The Seller Entity is owned by one or more individuals (the “Selling Shareholders”) most of whom are physical therapists that work in the Acquired Therapy Practice and provide physical therapy services to patients. |
2. | In conjunction with the Acquisition, the Seller Entity contributes the Acquired Therapy Practice into a newly-formed limited partnership (“NewCo”), in exchange for one hundred percent (100%) of the limited and general partnership interests in NewCo. Therefore, in this step, NewCo becomes a wholly-owned subsidiary of the Seller Entity. |
3. | The Company enters into an agreement (the “Purchase Agreement”) to acquire from the Seller Entity a majority (ranges from 50% to 90%) of the limited partnership interest and in all cases 100% of the general partnership interest in NewCo. The Company does not purchase 100% of the limited partnership interest because the Selling Shareholders, through the Seller Entity, want to maintain an ownership percentage. The consideration for the Acquisition is primarily payable in the form of cash at closing and a small two-year note in lieu of an escrow (the “Purchase Price”). The Purchase Agreement usually does not contain any future earn-out or other contingent consideration that is payable to the Seller Entity or the Selling Shareholders. |
4. | The Company and the Seller Entity also execute a partnership agreement (the “Partnership Agreement”) for NewCo that sets forth the rights and obligations of the limited and general partners of NewCo. After the Acquisition, the Company is the general partner of NewCo. |
5. | As noted above, the Company does not purchase 100% of the limited partnership interests in NewCo and the Seller Entity retains a portion of the limited partnership interest in NewCo (“Seller Entity Interest”). |
6. | In most cases, some or all of the Selling Shareholders enter into an employment agreement (the “Employment Agreement”) with NewCo with an initial term that ranges from three to five years (the “Employment Term”), with automatic one-year renewals, unless employment is terminated prior to the end of the Employment Term. As a result, a Selling Shareholder becomes an employee (“Employed Selling Shareholder”) of NewCo. The employment of an Employed Selling Shareholder can be terminated by the Employed Selling Shareholder or NewCo, with or without cause, at any time. In a few situations, a Selling Shareholder does not become employed by NewCo and is not involved with NewCo following the closing; in those situations, such Selling Shareholders sell their entire ownership interest in the Seller Entity as of the closing of the Acquisition. |
7. | The compensation of each Employed Selling Shareholder is specified in the Employment Agreement and is customary and commensurate with his or her responsibilities based on other employees in similar capacities within NewCo, the Company and the industry. |
8. | The Company and the Selling Shareholder (including both Employed Selling Shareholders and Selling Shareholders not employed by NewCo) execute a non-compete agreement (the “Non-Compete Agreement”) which restricts the Selling Shareholder from engaging in competing |
9. | The Non-Compete Term commences as of the date of the Acquisition and expires on the later of: |
a. | Two years after the date an Employed Selling Shareholders’ employment is terminated (if the Selling Shareholder becomes an Employed Selling Shareholder) or |
b. | Five to six years from the date of the Acquisition, as defined in the Non-Compete Agreement, regardless of whether the Selling Shareholder is employed by NewCo. |
10. | The Non-Compete Agreement applies to a restricted region which is defined as a |
1. | Put Right |
a. | In the event that any Selling Shareholder’s employment is terminated under certain circumstances prior to the fifth anniversary of the Closing Date, the Seller Entity thereafter may have an irrevocable right to cause the Company to purchase from Seller Entity the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest at the purchase price described in “3” below. |
b. | In the event that any Selling Shareholder is not employed by NewCo as of the fifth anniversary of the Closing Date and the Company has not exercised its Call Right with respect to the Terminated Selling Shareholder’s Allocable Percentage of Seller Entity’s Interest, Seller Entity thereafter |
c. | In the event that any Selling Shareholder’s employment with NewCo is terminated for any reason on or after the fifth anniversary of the Closing Date, the Seller Entity |
2. | Call Right |
a. | If any Selling Shareholder’s employment by NewCo is terminated prior to the fifth anniversary of the Closing Date, the Company thereafter |
b. | In the event that any Selling Shareholder’s employment with NewCo is terminated for any reason on or after the fifth anniversary of the Closing Date, the Company |
3. | For the Put Right and the Call Right, the purchase price is derived from a formula based on a specified multiple of NewCo’s trailing twelve months of earnings before interest, taxes, depreciation, amortization, and the Company’s internal management fee, plus an Allocable Percentage of any undistributed earnings of NewCo (the “Redemption Amount”). NewCo’s earnings are distributed monthly based on available cash within NewCo; therefore, the undistributed earnings amount is small, if any. |
4. | The Purchase Price for the initial equity interest purchased by the Company is also based on the same specified multiple of the trailing twelve-month earnings that is used in the Put Right and the Call Right noted above. |
5. | The Put Right and the Call Right do not have an expiration |
6. | The Put Right and the Call Right never apply to Selling Shareholders who do not become employed by NewCo, since the Company requires that such Selling Shareholders sell their entire ownership interest in the Seller Entity at the closing of the Acquisition. |
1. | Prior to the acquisition, the Progressive Subsidiaries were owned by a legal entity (“Progressive Parent”) controlled by its individual owners (the “Selling Shareholders”), who work in and manage the Progressive business. |
2. | In conjunction with the acquisition, the Selling Shareholders caused the Progressive Parent to transfer its ownership of the Progressive Subsidiaries into a newly-formed limited liability company (“NewCo”), in exchange for one hundred percent (100%) of the membership interests in NewCo. Therefore, in this step, NewCo became wholly-owned by the Selling Shareholders. |
3. | The Company entered into an agreement (the “Purchase Agreement”) to acquire from the Selling Shareholders a majority of the membership interest in NewCo. The consideration for the acquisition is primarily payable in the form of cash at closing, a relatively small portion paid in cash after the closing contingent on certain performance criteria, and a small note in lieu of an escrow (the “Purchase Price”). |
4. | The Company and the Selling Shareholders also executed an operating agreement (the “Operating Agreement”) for NewCo that sets forth the rights and obligations of the members of NewCo. |
5. | As noted above, the Company did not purchase 100% of the membership interests in NewCo and the Selling Shareholders retained a portion of the membership interest in NewCo (“Selling Shareholders’ Interest”). |
6. | The Company and the Selling Shareholders executed a non-compete agreement (the “Non-Compete Agreement”) which restricts the Selling Shareholders from competing for a specified period of time (the “Non-Compete Term”). |
7. | The Non-Compete Term commences as of the date of the Acquisition and expires on the later of: |
a. | Two years after the date a Selling Shareholder no longer is involved in the management of NewCo or |
b. | Seven years from the date of the acquisition. |
8. | The Non-Compete Agreement applies to the entire United States. |
9. | The Put Right and the Call Right do not have an expiration date. |
1. | Put Right |
a. | Each of the Selling Shareholders has the right to sell 30% of their respective residual interests on each of the 4th and 5th anniversaries of the acquisition closing, and then 10% on each of the 6th and 7th anniversaries. |
b. | In the event that any Selling Shareholder terminates his management relationship with NewCo for any reason on or after the seventh anniversary of the Closing Date, the Selling Shareholder has the Put Right, and upon the exercise of the Put Right, the Selling Shareholder’s Interest shall be redeemed by the Company at the purchase price described in “3” below. |
2. | Call Right |
a. | If any Selling Shareholder’s ceases to perform management services on behalf of NewCo, the Company thereafter shall have an irrevocable right to purchase from such Selling Shareholder his Interest, in each case at the purchase price described in “3” below. |
3. | For the Put Right and the Call Right, the purchase price is derived from a formula based on a specified multiple of NewCo’s trailing twelve months of earnings before interest, taxes, depreciation, amortization, and the Company’s internal management fee, plus an Allocable Percentage of any undistributed earnings of NewCo (the “Redemption Amount”). NewCo’s earnings are distributed monthly based on available cash within NewCo; therefore, the undistributed earnings amount is small, if any. |
4. | The Purchase Price for the initial equity interest purchased by the Company is also based on the same specified multiple of the trailing twelve-month earnings that is used in the Put Right and the Call Right noted above. |
5. | The Put Right and the Call Right do not have an expiration date. |
Year Ended | ||||||||||||||||||||||||
Year Ended | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Beginning balance | $ | 137,750 | $ | 133,943 | $ | 102,572 | $ | 132,340 | $ | 137,750 | $ | 133,943 | ||||||||||||
Operating results allocated to redeemable non-controlling interest partners | 11,175 | 10,659 | 8,433 | 11,358 | 11,175 | 10,659 | ||||||||||||||||||
Distributions to redeemable non-controlling interest partners | (12,403 | ) | (10,221 | ) | (9,835 | ) | (11,359 | ) | (12,403 | ) | (10,221 | ) | ||||||||||||
Changes in the fair value of redeemable non-controlling interest | 4,632 | 11,893 | 24,770 | 13,011 | 4,632 | 11,893 | ||||||||||||||||||
Purchases of redeemable non-controlling interest | (20,521 | ) | (8,934 | ) | 8,145 | (30,204 | ) | (20,521 | ) | (8,934 | ) | |||||||||||||
Acquired interest | 11,297 | 6,230 | 0 | 39,862 | 11,297 | 6,230 | ||||||||||||||||||
Reduction of non-controlling interest due to sale of USPH partnership interest | 0 | (6,132 | ) | 0 | 0 | (6,132 | ) | |||||||||||||||||
Sales of redeemable non-controlling interest - temporary equity | 1,133 | 3,120 | 0 | 982 | 1,133 | 3,120 | ||||||||||||||||||
Notes receivable related to sales of redeemable non-controlling interest - temporary equity | (1,006 | ) | (2,870 | ) | (142 | ) | (914 | ) | (1,006 | ) | (2,870 | ) | ||||||||||||
Adjustments in notes receivable related to the the sales of redeemable non-controlling interest - temporary equity | 283 | 0 | 0 | 186 | 283 | 0 | ||||||||||||||||||
Other | 0 | 62 | 0 | 0 | 0 | 62 | ||||||||||||||||||
Ending balance | $ | 132,340 | $ | 137,750 | $ | 133,943 | $ | 155,262 | $ | 132,340 | $ | 137,750 |
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||
Contractual time period has lapsed but holder's employment has not been terminated | $ | 62,390 | $ | 51,921 | $ | 42,624 | ||||||
Contractual time period has not lapsed and holder's employment has not been terminated | 69,950 | 85,829 | 91,319 | |||||||||
Holder's employment has terminated and contractual time period has expired | 0 | 0 | 0 | |||||||||
Holder's employment has terminated and contractual time period has not expired | 0 | 0 | 0 | |||||||||
$ | 132,340 | $ | 137,750 | $ | 133,943 |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
Contractual time period has lapsed but holder's employment has not terminated | $ | 80,781 | $ | 62,390 | $ | 51,921 | ||||||
Contractual time period has not lapsed and holder's employment has not terminated | 74,481 | 69,950 | 85,829 | |||||||||
Holder's employment has terminated and contractual time period has expired | 0 | 0 | 0 | |||||||||
Holder's employment has terminated and contractual time period has not expired | 0 | 0 | 0 | |||||||||
$ | 155,262 | $ | 132,340 | $ | 137,750 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
Beginning balance | $ | 317,676 | $ | 293,525 | $ | 345,646 | $ | 317,676 | ||||||||
Goodwill acquired | 28,540 | 31,330 | 89,746 | 28,540 | ||||||||||||
Goodwill related to partnership interest sold | 0 | (7,325 | ) | |||||||||||||
Goodwill derecognition (write-off) related to closed clinics | (1,859 | ) | 0 | 0 | (1,859 | ) | ||||||||||
Goodwill adjustments for purchase price allocation of businesses acquired in prior year | 1,289 | 146 | (713 | ) | 1,289 | |||||||||||
Ending balance | $ | 345,646 | $ | 317,676 | $ | 434,679 | $ | 345,646 |
December 31, 2020 | December 31, 2019 | |||||||
Tradenames | $ | 32,317 | $ | 32,049 | ||||
Referral relationships, net of accumulated amortization of $14,522 and $11,677, respectively | 22,119 | 18,367 | ||||||
Non-compete agreements, net of accumulated amortization of $5,993 and $5,424, respectively | 1,844 | 2,172 | ||||||
$ | 56,280 | $ | 52,588 |
December 31, 2021 | December 31, 2020 | |||||||
Tradenames | $ | 38,790 | $ | 32,317 | ||||
Customer and referral relationships, net of accumulated amortization of $17,762 and $14,522, respectively | 45,643 | 22,119 | ||||||
Non-compete agreements, net of accumulated amortization of $6,450 and $5,993, respectively | 1,949 | 1,844 | ||||||
$ | 86,382 | $ | 56,280 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||
Referral relationships | $ | 2,845 | $ | 2,307 | $ | 2,161 | ||||||||||||||||||
Customer and referral relationships | $ | 3,240 | $ | 2,845 | $ | 2,307 | ||||||||||||||||||
Non-compete agreements | 569 | 708 | 616 | 458 | 569 | 708 | ||||||||||||||||||
$ | 3,414 | $ | 3,015 | $ | 2,777 | $ | 3,698 | $ | 3,414 | $ | 3,015 |
Referral Relationships | Non-Compete Agreements | ||||||
Years | Annual Amount | Years | Annual Amount | ||||
Ending December 31, | Ending December 31, | ||||||
2021 | $ | 2,946 | 2021 | $ | 556 | ||
2022 | $ | 2,886 | 2022 | $ | 403 | ||
2023 | $ | 2,778 | 2023 | $ | 335 | ||
2024 | $ | 2,615 | 2024 | $ | 279 | ||
2025 | $ | 2,470 | 2025 | $ | 212 | ||
Thereafter | $ | 8,424 | Thereafter | $ | 59 |
Customer and Referral Relationships | Non-Compete Agreements | ||||||
Years | Annual Amount | Years | Annual Amount | ||||
Ending December 31, | Ending December 31, | ||||||
2022 | $ | 4,798 | 2022 | $ | 512 | ||
2023 | $ | 4,691 | 2023 | $ | 443 | ||
2024 | $ | 4,526 | 2024 | $ | 387 | ||
2025 | $ | 4,382 | 2025 | $ | 322 | ||
2026 | $ | 3,914 | 2026 | $ | 236 | ||
Thereafter | $ | 23,332 | Thereafter | $ | 49 |
December 31, 2020 | December 31, 2019 | December 31, 2021 | December 31, 2020 | |||||||||||||
Salaries and related costs | $ | 24,646 | $ | 19,340 | $ | 23,569 | $ | 24,646 | ||||||||
Credit balances due to patients and payors | 5,756 | 4,303 | 6,649 | 5,756 | ||||||||||||
Group health insurance claims | 2,113 | 2,277 | 1,984 | 2,113 | ||||||||||||
Closure costs | 1,333 | 116 | 498 | 1,333 | ||||||||||||
Federal income taxes payable | 5,715 | 0 | ||||||||||||||
Federal taxes payable | 2,716 | 9,885 | ||||||||||||||
MAAPP funds payable | 14,054 | 0 | 0 | 14,054 | ||||||||||||
Deferred employer payroll taxes - CARES ACT | 4,170 | 0 | ||||||||||||||
Contingent payment related to acquisition | 1,000 | 0 | ||||||||||||||
Settlement of a legal matter | 2,750 | 0 | ||||||||||||||
Other | 1,959 | 4,819 | 6,539 | 1,959 | ||||||||||||
Total | $ | 59,746 | $ | 30,855 | $ | 45,705 | $ | 59,746 |
December 31, 2020 | December 31, 2019 | December 31, 2021 | December 31, 2020 | |||||||||||||
Credit Agreement average effective interest rate of 2.6% and 3.9% in 2020 and 2019, respectively (inclusive of unused fee) | $ | 16,000 | $ | 46,000 | ||||||||||||
Various notes payable with $4,899 plus accrued interest due in the next year, interest accrues in the range of 3.25% through 5.50% per annum | 5,495 | 5,089 | ||||||||||||||
Credit Agreement average effective interest rate of 2.1% for December 31, 2021 and December 31, 2020, (inclusive of unused fee) | $ | 114,000 | $ | 16,000 | ||||||||||||
Various notes payable with $830 plus accrued interest due in the next year, interest accrues in the range of 3.25% through 4.75% per annum | 4,417 | 5,495 | ||||||||||||||
$ | 21,495 | $ | 51,089 | $ | 118,417 | $ | 21,495 | |||||||||
Less current portion | (4,899 | ) | (728 | ) | (830 | ) | (4,899 | ) | ||||||||
Long term portion | $ | 16,596 | $ | 50,361 | $ | 117,587 | $ | 16,596 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Operating lease cost | $ | 30,710 | $ | 30,225 | $ | 32,021 | $ | 30,710 | ||||||||
Short-term lease cost | 1,454 | 1,212 | 1,160 | 1,454 | ||||||||||||
Variable lease cost | 5,752 | 6,074 | 7,057 | 5,752 | ||||||||||||
Total lease cost* | $ | 37,916 | $ | 37,511 | $ | 40,238 | $ | 37,916 |
* | Sublease income was immaterial |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities (in thousands) | $ | 30,307 | $ | 30,077 | $ | 33,192 | $ | 30,307 | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands)* | $ | 32,710 | $ | 113,222 | ||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands) | $ | 46,088 | $ | 32,710 |
Fiscal Year | Amount | Amount | ||||||
2021 | $ | 29,819 | ||||||
2022 | 23,861 | $ | 32,945 | |||||
2023 | 17,787 | 27,467 | ||||||
2024 | 11,487 | 20,876 | ||||||
2025 and therafter | 12,294 | |||||||
2025 | 14,000 | |||||||
2026 | 8,492 | |||||||
2027 and therafter | 7,055 | |||||||
Total lease payments | $ | 95,248 | $ | 110,835 | ||||
Less: imputed interest | 5,751 | 6,175 | ||||||
Total operating lease liabilities | $ | 89,497 | $ | 104,660 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Weighted-average remaining lease term - Operating leases | 4.05 Years | 4.05 Years | ||||||
Weighted-average discount rate - Operating leases | 3.1 | % | 3.9 | % |
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Weighted-average remaining lease term - Operating leases | 4.17 Years | 4.05 Years | ||||||
Weighted-average discount rate - Operating leases | 2.77 | % | 3.1 | % |
December 31, 2020 | December 31, 2019 | |||||||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||||
Deferred tax assets: | ||||||||||||||||
Compensation | $ | 1,865 | $ | 1,964 | $ | 2,817 | $ | 1,865 | ||||||||
Allowance for credit losses | 396 | 514 | 573 | 396 | ||||||||||||
Acquired net operating losses | 558 | 840 | 0 | 558 | ||||||||||||
Lease obligations - including closed clinics | 23,819 | 21,445 | 26,856 | 23,819 | ||||||||||||
Deferred tax assets | $ | 26,638 | $ | 24,763 | $ | 30,246 | $ | 26,638 | ||||||||
Deferred tax liabilities: | ||||||||||||||||
Depreciation and amortization | $ | (12,650 | ) | $ | (13,195 | ) | $ | (19,607 | ) | $ | (12,650 | ) | ||||
Operating lease right-of-use assets | (21,419 | ) | (21,416 | ) | (24,637 | ) | (21,419 | ) | ||||||||
Other | (348 | ) | (223 | ) | (387 | ) | (348 | ) | ||||||||
Deferred tax liabilities | (34,417 | ) | (34,834 | ) | (44,631 | ) | (34,417 | ) | ||||||||
Net deferred tax liability | $ | (7,779 | ) | $ | (10,071 | ) | $ | (14,385 | ) | $ | (7,779 | ) |
December 31, 2020 | December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||
U. S. tax at statutory rate | $ | 10,125 | 21.0% | $ | 11,274 | 21.0% | $ | 9,710 | 21.0% | $ | 11,782 | 21.0 | % | $ | 10,125 | 21.0 | % | $ | 11,274 | 21.0 | % | |||||||||||||||||||
State income taxes, net of federal benefit | 1,956 | 3.9% | 2,059 | 3.8% | 1,722 | 3.7% | 2,478 | 4.4 | % | 1,956 | 3.9 | % | 2,059 | 3.8 | % | |||||||||||||||||||||||||
Excess equity compensation deduction | (99) | 0.0% | (871) | -1.6 % | (806) | -1.7 % | (246 | ) | -0.4 | % | (99 | ) | 0.0% | % | (871 | ) | -1.6 | % | ||||||||||||||||||||||
Non-deductible expenses | 1,040 | 2.1% | 1,185 | 2.2% | 743 | 1.6% | 1,258 | 2.2 | % | 1,040 | 2.1 | % | 1,185 | 2.2 | % | |||||||||||||||||||||||||
$ | 13,022 | 27.0% | $ | 13,647 | 25.4% | $ | 11,369 | 24.6% | $ | 15,272 | 27.2 | % | $ | 13,022 | 27.0 | % | $ | 13,647 | 25.4 | % |
December 31, 2020 | December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||
Current: | ||||||||||||||||||||||||
Federal | $ | 10,506 | $ | 6,523 | $ | 5,357 | $ | 7,477 | $ | 10,506 | $ | 6,523 | ||||||||||||
State | 2,774 | 2,473 | 1,199 | 2,107 | 2,774 | 2,473 | ||||||||||||||||||
Total current | 13,280 | 8,996 | 6,556 | 9,584 | 13,280 | 8,996 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
Federal | (38 | ) | 3,730 | 3,771 | 4,866 | (38 | ) | 3,730 | ||||||||||||||||
State | (220 | ) | 921 | 1,042 | 822 | (220 | ) | 921 | ||||||||||||||||
Total deferred | (258 | ) | 4,651 | 4,813 | 5,688 | (258 | ) | 4,651 | ||||||||||||||||
Total income tax provision | $ | 13,022 | $ | 13,647 | $ | 11,369 | $ | 15,272 | $ | 13,022 | $ | 13,647 |
December 31, | December 31, | December 31, | Year Ended December 31, | |||||||||||||||||||||
2020 | 2019 | 2018 | 2021 | 2020 | 2019 | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||
Net operating revenue: | ||||||||||||||||||||||||
Physical therapy operations | $ | 383,770 | $ | 444,507 | $ | 428,445 | $ | 451,122 | $ | 383,770 | $ | 444,507 | ||||||||||||
Industrial injury prevention services | 39,199 | 37,462 | 25,466 | 43,900 | 39,199 | 37,462 | ||||||||||||||||||
Total Company | $ | 422,969 | $ | 481,969 | $ | 453,911 | $ | 495,022 | $ | 422,969 | $ | 481,969 | ||||||||||||
Gross profit: | ||||||||||||||||||||||||
Physical therapy operations (excluding closure costs) | $ | 88,295 | $ | 104,120 | $ | 96,463 | ||||||||||||||||||
Physical therapy operations (excluding closure costs) (a non-GAAP measure) | $ | 106,518 | $ | 88,295 | $ | 104,120 | ||||||||||||||||||
Industrial injury prevention services | 10,086 | 8,379 | 5,192 | 10,694 | 10,086 | 8,379 | ||||||||||||||||||
$ | 98,381 | $ | 112,499 | $ | 101,655 | $ | 117,212 | $ | 98,381 | $ | 112,499 | |||||||||||||
Physical therapy operations - closure costs | 3,931 | 25 | (8 | ) | 30 | 3,931 | 25 | |||||||||||||||||
Gross profit | $ | 94,450 | $ | 112,474 | $ | 101,663 | $ | 117,182 | $ | 94,450 | $ | 112,474 | ||||||||||||
Total Assets: | ||||||||||||||||||||||||
Physical therapy operations | $ | 550,181 | $ | 518,027 | $ | 421,474 | $ | 587,801 | $ | 499,911 | $ | 518,027 | ||||||||||||
Industrial injury prevention services | 44,180 | 42,818 | 21,692 | 161,625 | 94,450 | 112,474 | ||||||||||||||||||
Total Company | $ | 594,361 | $ | 560,845 | $ | 443,166 | $ | 749,426 | $ | 594,361 | $ | 630,501 |
Authorized | Restricted Stock Issued | Outstanding Stock Options | Stock Options Exercised | Stock Options Exercisable | Shares Available for Grant | Authorized | Restricted Stock Issued | Outstanding Stock Options | Stock Options Exercised | Stock Options Exercisable | Shares Available for Grant | |||||||||||||||||||||||||||||||||||||
Equity Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Amended 1999 Plan | 600,000 | 416,402 | 0 | 139,791 | 0 | 7,775 | 600,000 | 416,402 | 0 | 139,791 | 0 | 7,775 | ||||||||||||||||||||||||||||||||||||
Amended 2003 Plan | 2,100,000 | 1,106,977 | 0 | 778,300 | 0 | 224,760 | 2,100,000 | 1,166,855 | 0 | 778,300 | 0 | 164,882 | ||||||||||||||||||||||||||||||||||||
2,700,000 | 1,523,379 | 0 | 918,091 | 0 | 232,535 | 2,700,000 | 1,583,257 | 0 | 918,091 | 0 | 172,657 |
Year Granted | Number of Shares | Weighted Average Fair Value Per Share | Number of Shares | Weighted Average Fair Value Per Share | ||||||||
2021 | 60,317 | $ | 131.29 | |||||||||
2020 | 86,982 | $ | 104.69 | 86,982 | $ | 104.69 | ||||||
2019 | 91,682 | $ | 104.85 | 91,682 | $ | 104.85 | ||||||
2018 | 93,801 | $ | 78.63 |
Year Cancelled | Number of Shares | Weighted Average Fair Value Per Share | Number of Shares | Weighted Average Fair Value Per Share | ||||||||
2021 | 439 | $ | 113.80 | |||||||||
2020 | 10,037 | $ | 102.52 | 10,037 | $ | 102.52 | ||||||
2019 | 1,578 | $ | 87.88 | 1,578 | $ | 87.88 | ||||||
2018 | 3,867 | $ | 59.51 |
Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||||||||||||||
Net income attributable to USPH shareholders | $ | 35,194 | $ | 40,039 | $ | 34,873 | $ | 40,831 | $ | 35,194 | $ | 40,039 | ||||||||||||
Credit (charges) to retained earnings: | ||||||||||||||||||||||||
(Charges) credit to retained earnings: | ||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest | (4,632 | ) | (11,893 | ) | (24,770 | ) | (13,011 | ) | (4,632 | ) | (11,893 | ) | ||||||||||||
Tax effect at statutory rate (federal and state) of 26.25% | 1,216 | 3,121 | 6,502 | |||||||||||||||||||||
Tax effect at statutory rate (federal and state) of 25.55% and 26.25%, respectively | 3,324 | 1,216 | 3,121 | |||||||||||||||||||||
$ | 31,778 | $ | 31,267 | $ | 16,605 | $ | 31,144 | $ | 31,778 | $ | 31,267 | |||||||||||||
Earnings per share (basic and diluted) | $ | 2.48 | $ | 2.45 | $ | 1.31 | $ | 2.41 | $ | 2.48 | $ | 2.45 | ||||||||||||
Shares used in computation: | ||||||||||||||||||||||||
Basic and diluted earnings per share - weighted-average shares | 12,835 | 12,756 | 12,666 | 12,898 | 12,835 | 12,756 |
ITEM 9B. | OTHER INFORMATION. |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. |
ITEM 11. | EXECUTIVE COMPENSATION. |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
(a) | Documents filed as a part of this report: |
1. | Financial Statements. Reference is made to the Index to Financial Statements and Related Information under Item 8 in Part IIhereof, where these documents are listed. |
2. | Financial Statement Schedules. See page 85 for Schedule II—Valuation and Qualifying Accounts. All other schedules areomitted because of the absence of conditions under which they are required or because the required information is shown in the financial statements or notes thereto. |
3. | Exhibits. The exhibits listed in List of Exhibits on the next page are filed or incorporated by reference as part of this report. |
ITEM 16. | Form 10-K Summary |
Number | ||
| Description | |
| Articles of Incorporation of the Company [filed as an exhibit to the Company’s Form 10-Q for the quarterly period ended June 30, 2001 and incorporated herein by reference]. | |
| ||
| Amendment to the Articles of Incorporation of the Company [filed as an exhibit to the Company’s Form 10-Q for the quarterly period ended June 30, 2001 and incorporated herein by reference]. | |
| ||
3.3 | | Bylaws of the Company, as amended [filed as an exhibit to the Company’s Form 10-KSB for the year ended December 31, 1993 and incorporated herein by reference—Commission File Number—1-11151]. |
| ||
| Description of Company Securities [filed herewith the Company’s Form 10-K for the year ended December 31, 2019 filed with the SEC on February 28, 2020.] | |
| ||
| 1999 Employee Stock Option Plan (as amended and restated May 20, 2008) [incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A, filed with the SEC on April 17, 2008]. | |
| ||
| U.S. Physical Therapy, Inc. 2003 Stock Incentive Plan, (as amended and restated effective March 26, 2016) [incorporated herein by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on April 7, 2016.] | |
| ||
| U. S. Physical Therapy, Inc. Long-Term Incentive Plan for Senior Management for 2013, effective March 27, 2013 [incorporated by reference to Exhibit 99.1 to the Company Current Report on Form 8-K filed with the SEC on April 1, 2013]. | |
| ||
| U. S. Physical Therapy, Inc. Objective Cash Bonus Plan for 2013, effective March 27, 2013 [incorporated by reference to Exhibit 99.2 to the Company Current Report on Form 8-K filed with the SEC on April 1, 2013]. | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Cash Bonus Plan for 2013, effective March 27, 2013 [incorporated by reference to Exhibit 99.3 to the Company Current Report on Form 8-K filed with the SEC on April 1, 2013]. | |
| ||
| U. S. Physical Therapy, Inc. Long-Term Incentive Plan for Senior Management for 2014, effective March 21, 2014 [incorporated by reference to Exhibit 99.1 to the Company Current Report on Form 8-K filed with the SEC on March 27, 2014]. | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Long-Term Incentive Plan for Senior Management for 2014, effective March 21, 2014 [incorporated by reference to Exhibit 99.2 to the Company Current Report on Form 8-K filed with the SEC on March 27, 2014]. | |
| ||
| U. S. Physical Therapy, Inc. Objective Cash Bonus Plan for Senior Management for 2014, effective March 21, 2014 [incorporated by reference to Exhibit 99.3 to the Company Current Report on Form 8-K filed with the SEC on March 27, 2014]. | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Cash Bonus Plan for Senior Management for 2014, effective March 21, 2014 [incorporated by reference to Exhibit 99.4 to the Company Current Report on Form 8-K filed with the SEC on March 27, 2014]. | |
| ||
| U. S. Physical Therapy, Inc. Long Term Incentive Plan for Senior Management for 2015, effective March 23, 2015 [incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 27, 2015.] |
Number | | Description |
U.S. Physical Therapy, Inc. Discretionary Long Term Incentive Plan for Senior Management for 2015, effective March 23, 2015 [incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the SEC on March 27, 2015.] | ||
| ||
| U. S. Physical Therapy, Inc. Objective Cash Bonus Plan for Senior Management for 2015, effective March 23, 2015 [incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K filed with the SEC on March 27, 2015.] | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Cash Bonus Plan for Senior Management for 2015, effective March 23, 2015 [incorporated by reference to Exhibit 99.4 to the Company’s Current Report on Form 8-K filed with the SEC on March 27, 2015.] | |
| ||
| U. S. Physical Therapy, Inc. Objective Long Term Incentive Plan for Senior Management for 2016, effective March 10, 2016 [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2016]. | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Long Term Incentive Plan for Senior Management for 2016, effective March 10, 2016 [incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2016]. | |
| ||
| U. S. Physical Therapy, Inc. Objective Cash Bonus Plan for Senior Management for 2016, effective March 10, 2016 [incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2016]. | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Cash Bonus Plan for Senior Management for 2016, effective March 10, 2016 [incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2016]. | |
| ||
| Form of Restricted Stock Agreement [incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2016]. | |
| ||
| U. S. Physical Therapy, Inc. Long-Term Incentive Plan for Senior Management for 2017, effective March 24, 2017 [incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K/A filed with the SEC on February 9, 2018.] | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Long –Term Incentive Plan for Senior Management for 2017, effective March 24, 2017 [incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the SEC on March 30, 2017.] | |
| ||
| U. S. Physical Therapy, Inc. Objective Cash Bonus Plan for Senior Management for 2017, effective March 24, 2017 [incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K filed with the SEC on March 30, 2017.] | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Cash Bonus Plan for Senior Management for 2017, effective March 24, 2017 [incorporated by reference to Exhibit 99.4 to the Company’s Current Report on Form 8-K filed with the SEC on March 30, 2017.] | |
| ||
| U. S. Physical Therapy, Inc. Objective Long-Term Incentive Plan for Senior Management for 2018, effective April 9, 2018 [incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the SEC on April 12, 2018.] |
| ||
| U. S. Physical Therapy, Inc. Discretionary Long-Term Incentive Plan for Senior Management for 2018, effective April 9, 2018 [incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the SEC on April 12, 2018.] |
Number | | Description |
| U. S. Physical Therapy, Inc. Objective Cash/RSA Bonus Plan for Senior Management for 2018, effective April 9, 2018 [incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K filed with the SEC on April 12, 2018.] | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Cash/RSA Bonus Plan for Senior Management for 2018, effective April 9, 2018 [incorporated by reference to Exhibit 99.4 to the Company’s Current Report on Form 8-K filed with the SEC on April 12, 2018.] | |
| ||
| Second Amended and Restated Credit Agreement dated as of November 10, 2017 among the Company, as Borrower, Bank of America, N.A. as Administrative Agent and the Lenders Patty (incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the SEC on November 14, 2017). | |
| ||
| Second Amended and Restated Employment Agreement by and between the Company and Christopher J. Reading dated effective February 9, 2016 [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the SEC on February 12, 2016]. | |
| ||
| Second Amended and Restated Employment Agreement by and between the Company and Lawrance W. McAfee dated effective February 9, 2016 [incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed with the SEC on February 12, 2016]. | |
| ||
| Amended and Restated Employment Agreement by and between the Company and Glenn D. McDowell dated effective February 9, 2016 [incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed with the SEC on February 12, 2016]. | |
| ||
| Employment Agreement commencing on March 1, 2018 by and between the Company and Graham Reeve [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 7, 2018]. | |
| ||
| Objective Long-Term Incentive Plan for Senior Management [incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 8, 2019.] | |
| ||
| Discretionary Long-Term Incentive Plan for Senior Management [incorporated by reference to Exhibit 99.2 to the Company’s Current Report on Form 8-K filed with the SEC on March 8, 2019.] | |
| ||
| Objective Cash/RSA Bonus Plan for Senior Management [incorporated by reference to Exhibit 99.3 to the Company’s Current Report on Form 8-K filed with the SEC on March 8, 2019.] | |
| ||
| Discretionary Cash/RSA Bonus Plan for Senior Management [incorporated by reference to Exhibit 99.4 to the Company’s Current Report on Form 8-K filed with the SEC on March 8, 2019.] | |
| ||
| Third Amended and Restated Employment Agreement by and between the Company and Christopher J. Reading dated effective May 21, 2019 [incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on |
| ||
| Third Amended and Restated Employment Agreement by and between the Company and Lawrance W. McAfee dated effective May 21, 2019 [incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on |
Number | | Description |
| Second Amended and Restated Employment Agreement by and between the Company and Glenn D. McDowell dated effective May 21, 2019 [incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the SEC on March 22, 2019] | |
| ||
| Amended & Restated Employment Agreement commencing by and between the Company and Graham Reeve dated effective May 21, 2019 [incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the SEC on March 22, 2019] | |
| ||
| Restricted Stock Agreement [incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed with the SEC on March 22, 2019] | |
| ||
| U. S. Physical Therapy, Inc. Objective Long-Term Incentive Plan for Senior Management for 2020, effective March 3, 2020 [incorporated by reference to Exhibit 99.1 to the Company Current Report on Form 8-K filed with the SEC on March 6, 2020]. | |
| ||
| Amendment to Employment Agreement entered into as of March 26, 2020 by and between the Company and Christopher Reading [incorporated by reference to Exhibit 10.3 to the Company Current Report on Form 8-K filed with the SEC on March 26, 2020]. | |
| Amendment to Employment Agreement entered into as of March 26, 2020 by and between the Company and Lawrance McAfee [incorporated by reference to Exhibit | |
| Amendment to Employment Agreement entered into as of March 26, 2020 by and between the Company and Glenn McDowell [incorporated by reference to Exhibit 10.3 to the Company Current Report on Form 8-K filed with the SEC on March 26, 2020]. | |
| ||
| Amendment to Employment Agreement entered into as of March 26, 2020 by and between the Company and Graham Reeve [incorporated by reference to Exhibit 10.4 to the Company Current Report on Form 8-K filed with the SEC on March 26, 2020]. | |
| ||
| U. S. Physical Therapy, Inc. Objective Long-Term Incentive Plan for Senior Management for 2020, effective March 3, 2020 [incorporated by reference to Exhibit 99.1 to the Company Current Report on Form 8-K filed with the SEC on March 6, 2020]. | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Long-Term Incentive Plan for Senior Management for 2020, effective March 3, 2020 [incorporated by reference to Exhibit 99.2 to the Company Current Report on Form 8-K filed with the SEC on March 6, 2020]. | |
| ||
| U. S. Physical Therapy, Inc. Objective Cash/RSA Bonus Plan for Senior Management for 2020, effective March 3, 2020 [incorporated by reference to Exhibit 99.3 to the Company Current Report on Form 8-K filed with the SEC on March 6, 2020]. | |
| ||
| U. S. Physical Therapy, Inc. Discretionary Cash/RSA Bonus Plan for Senior Management for 2020, effective March 3, 2020 [incorporated by reference to Exhibit 99.4 to the Company Current Report on Form 8-K filed with the SEC on March 6, 2020]. | |
| ||
| Employment Agreement entered into as of November 9, 2020 by and between U.S. Physical Therapy and Carey Hendrickson [incorporated by reference to Exhibit 10.1 to the Company Current Report on Form 8-K filed with the SEC on September 23, 2020.] | |
| ||
| Consulting Agreement entered into as of September 22, 2020 by and between U.S. Physical Therapy and Lawrence McAfee [incorporated by reference to Exhibit 10.1 to the Company Current Report on Form 8-K filed with the SEC on September 23, 2020.] |
10.52+ | | Employment Agreement by and between the Company and Eric Williams entered into on December 3, 2020 and commencing as of July 1, 2021 [filed by reference to Exhibit 10.1 to the Company Current Report on Form 8-K filed with the SEC on December 7, 2020.] |
| First Amendment to Second Amended and Restated Credit Agreement [filed by reference to Exhibit 10.1 to the Company Current Report on Form 8-K filed with the SEC on February 4, 2021.] | |
| ||
| Second Amendment to Second Amended and Restated Credit Agreement. * |
Number | Description | |
Subsidiaries of the Registrant | ||
Consent of Independent Registered Public Accounting Firm—Grant Thornton LLP | ||
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended | ||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended | ||
Certification of Controller pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended | ||
Certification of Periodic Report of the Chief Executive Officer, Chief Financial Officer and Controller pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith |
+ | Management contract or compensatory plan or arrangement. |
Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Charged to Other Accounts | Deductions | Balance at End of Period | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Charged to Other Accounts | Deductions | Balance at End of Period | |||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2020: | ||||||||||||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2021: | ||||||||||||||||||||||||||||||||||||||||
Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses(1) | $ | 2,698 | $ | 4,623 | 0 | $ | 5,313 | (2) | $ | 2,008 | $ | 2,008 | $ | 5,305 | 0 | $ | 4,545 | (2) | $ | 2,768 | ||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2019: | ||||||||||||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2020: | ||||||||||||||||||||||||||||||||||||||||
Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 2,672 | $ | 4,858 | 0 | $ | 4,832 | (2) | $ | 2,698 | $ | 2,698 | $ | 4,623 | 0 | $ | 5,313 | (2) | $ | 2,008 | ||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2018: | ||||||||||||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2019: | ||||||||||||||||||||||||||||||||||||||||
Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 2,273 | $ | 4,603 | 0 | $ | 4,204 | (2) | $ | 2,672 | $ | 2,672 | $ | 4,858 | 0 | $ | 4,832 | (2) | $ | 2,698 |
(1) | Related to patient accounts receivable and accounts receivable-other. |
(2) | Uncollectible accounts written off, net of recoveries. |
* | All other schedules are omitted because of the absence of conditions under which they are required or because the required information is shown in the financial statements or notes thereto. |
U.S. PHYSICAL THERAPY, INC. | ||
(Registrant) | ||
By: | /s/ Carey Hendrickson | |
Carey Hendrickson | ||
Chief Financial Officer | ||
(Principal Financial Officer and Principal Accounting Officer) | ||
By: | /s/ Jon C. Bates | |
�� | Jon C. Bates | |
Vice President/Controller |
/s/ Chris J. Reading | Chief Executive Officer, President and Director | ||
(Principal Executive Officer) | March 1, | ||
Chris J. Reading | |||
/s/ Edward L. Kuntz | Chairman of the Board | March 1, | |
Edward L. Kuntz | |||
/s/ Mark J. Brookner | Director | March 1, | |
Mark J. Brookner | |||
/s/ Harry S. Chapman | Director | March 1, | |
Harry S. Chapman | |||
/s/ Bernard A. Harris | Director | March 1, | |
Dr. Bernard A. Harris, Jr. |
/s/ Kathleen A. Gilmartin | Director | March 1, | |
Kathleen A. Gilmartin | |||
/s/ Anne Motsenbocker | Director | March 1, 2022 | |
Anne Motsenbocker | |||
/s/ Reginald E. Swanson | Director | March 1, | |
Reginald E. Swanson | |||
/s/ Clayton K. Trier | Director | March 1, | |
Clayton K. Trier |