☑ | 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 | Part III |
Page | |||
PART I | |||
Item 1. | 4 | ||
Item 1A. | 15 | ||
Item 1B. | |||
Item 1C. | 24 | ||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 5. | |||
Item 6. | 29 | ||
Item 7. | |||
Item | |||
Item 8. | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | |||
Item 9C. | 87 | ||
PART III | |||
Item 10. | |||
Item 11. | |||
Item 12. | |||
Item 13. | |||
Item 14. | |||
PART IV | |||
Item 15. | |||
Item 16. | |||
ITEM 1. |
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 |
% Interest | Number of | |||||
Acquisition | Date | Acquired | Clinics | |||
October 2023 Acquisition | October 31, 2023 | ** | * | |||
September 2023 Acquisition 1 | September 29, 2023 | 70% | 4 | |||
September 2023 Acquisition 2 | September 29, 2023 | 70% | 1 | |||
July 2023 Acquisition | July 31, 2023 | 70% | 7 | |||
May 2023 Acquisition | May 31, 2023 | 45% | 4 | |||
February 2023 Acquisition | February 28, 2023 | 80% | 1 | |||
November 2022 Acquisition | November 30, 2022 | 80% | 13 | |||
October 2022 Acquisition | October 31, 2022 | 60% | 14 | |||
September 2022 Acquisition | September 30, 2022 | 80% | 2 | |||
August 2022 Acquisition | August 31, 2022 | 70% | 6 | |||
March 2022 Acquisition | March 31, 2022 | 70% | 6 | |||
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 |
* | IIP business |
** | On October 31, 2023, we concurrently acquired 100% of an IIP business and a 55% equity interest in an ergonomics software business (“October 2023 Acquisition”). |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
Number of clinics, beginning of period | 640 | 591 | 554 | |||||||||
Additions | 46 | 65 | 42 | |||||||||
Closed or sold | (15 | ) | (16 | ) | (5 | ) | ||||||
Number of clinics, end of period | 671 | 640 | 591 |
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 | % |
For the Year Ended | ||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Net Patient | Net Patient | Net Patient | ||||||||||||||||||||||
Payor | Revenue | Percentage | Revenue | Percentage | Revenue | Percentage | ||||||||||||||||||
Managed Care Programs/ | (In thousands, except percentages) | |||||||||||||||||||||||
Commercial Health Insurance | $ | 244,470 | 47.5 | % | $ | 215,822 | 46.5 | % | $ | 209,129 | 47.7 | % | ||||||||||||
Medicare/Medicaid | 188,329 | 36.6 | % | 174,401 | 37.5 | % | 155,122 | 35.4 | % | |||||||||||||||
Workers' Compensation Insurance | 48,834 | 9.5 | % | 45,010 | 9.7 | % | 44,549 | 10.2 | % | |||||||||||||||
Other | 32,923 | 6.4 | % | 29,357 | 6.3 | % | 29,530 | 6.7 | % | |||||||||||||||
Total | $ | 514,556 | 100.0 | % | $ | 464,590 | 100.0 | % | $ | 438,330 | 100.0 | % |
• | Economic Benefits of Therapy Services – Purchasers and providers of healthcare services, such as insurance companies, health maintenance organizations, businesses, and industries, continuously seek cost savings for traditional healthcare services. We believe that our therapy services provide a cost-effective way to prevent short-term disabilities from becoming chronic conditions, to help avoid invasive procedures, to speed recovery from surgery and musculoskeletal injuries and eliminate or minimize the need for opioids. |
• | Earlier Hospital Discharge – Changes in health insurance reimbursement, both public and private, have encouraged the earlier discharge of patients to reduce costs. We believe that early hospital discharge practices foster greater demand for outpatient physical therapy services. |
• | Aging Population – In general, the elderly population has a greater incidence of disability compared to the population as a whole. As this segment of the population continues to grow, we believe that demand for rehabilitation services will expand. |
ITEM 1A. | RISK |
ITEM 1B. | UNRESOLVED STAFF |
ITEM 1C. | CYBERSECURITY |
● | Current cybersecurity landscape and emerging threats; |
● | Status of ongoing cybersecurity initiatives and strategies; |
● | Incident reports and learnings from any cybersecurity events; and |
● | Compliance with regulatory requirements and industry standards. |
ITEM 2. |
ITEM 3. | LEGAL |
ITEM 4. | MINE SAFETY |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY |
Declaration Date | Record Date | Payment Date | Dividend Per Share | Aggregate Amount (in thousands) | ||||||||
02/21/2023 | 03/10/2023 | 04/07/2023 | $ | 0.43 | $ | 5,617 | ||||||
05/02/2023 | 05/18/2023 | 06/09/2023 | $ | 0.43 | $ | 5,621 | ||||||
08/07/2023 | 08/18/2023 | 09/08/2023 | $ | 0.43 | $ | 6,445 | ||||||
11/06/2023 | 11/16/2023 | 12/08/2023 | $ | 0.43 | $ | 6,445 |
12/18 | 12/19 | 12/20 | 12/21 | 12/22 | 12/23 | |
U. S. Physical Therapy, Inc. | 100 | 112 | 117 | 93 | 79 | 91 |
NYSE Healthcare Index | 100 | 119 | 132 | 161 | 155 | 159 |
12/15 | 12/16 | 12/17 | 12/18 | 12/19 | 12/20 | |
U. S. Physical Therapy, Inc. | 100 | 131 | 135 | 191 | 213 | 224 |
NYSE Composite | 100 | 109 | 126 | 112 | 137 | 143 |
NYSE Healthcare Index | 100 | 97 | 115 | 122 | 146 | 162 |
ITEM 6. | RESERVED |
ITEM | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF |
% Interest | Number of | |||||
Acquisition | Date | Acquired | Clinics | |||
October 2023 Acquisition | October 31, 2023 | ** | * | |||
September 2023 Acquisition 1 | September 29, 2023 | 70% | 4 | |||
September 2023 Acquisition 2 | September 29, 2023 | 70% | 1 | |||
July 2023 Acquisition | July 31, 2023 | 70% | 7 | |||
May 2023 Acquisition | May 31, 2023 | 45% | 4 | |||
February 2023 Acquisition | February 28, 2023 | 80% | 1 | |||
November 2022 Acquisition | November 30, 2022 | 80% | 13 | |||
October 2022 Acquisition | October 31, 2022 | 60% | 14 | |||
September 2022 Acquisition | September 30, 2022 | 80% | 2 | |||
August 2022 Acquisition | August 31, 2022 | 70% | 6 | |||
March 2022 Acquisition | March 31, 2022 | 70% | 6 | |||
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 |
* | IIP business |
** | On October 31, 2023, we concurrently acquired 100% of an IIP business and a 55% equity interest in an ergonomics software business (“October 2023 Acquisition”). |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
Number of clinics, beginning of period | 640 | 591 | 554 | |||||||||
Additions | 46 | 65 | 42 | |||||||||
Closed or sold | (15 | ) | (16 | ) | (5 | ) | ||||||
Number of clinics, end of period | 671 | 640 | 591 |
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 |
Mature Clinics are clinics opened or acquired prior to January 1, 2022, and | ||
Net rate per patient visit is net patient revenue related to our physical therapy operations divided by total number of patient visits (defined below) during the |
Patient visits is the number of unique patient visits during the periods presented. | |
Average daily visits per clinic is patient visits divided by the number of days in which normal business operations were conducted during the periods presented and further divided by the average number clinics | |
Full Year 2023 refers to | |
Full Year 2022 refers to the year ended December 31, 2022. |
For the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands, except per share data) | ||||||||
Earnings per share | ||||||||
Computation of earnings per share - USPH shareholders: | ||||||||
Net income attributable to USPH shareholders | $ | 28,239 | $ | 32,158 | ||||
Charges to retained earnings: | ||||||||
Revaluation of redeemable non-controlling interest | (13,565 | ) | (3,890 | ) | ||||
Tax effect at statutory rate (federal and state) | 3,466 | 994 | ||||||
$ | 18,140 | $ | 29,262 | |||||
Earnings per share (basic and diluted) | $ | 1.28 | $ | 2.25 | ||||
Shares used in computation - basic and diluted | 14,188 | 12,985 |
For the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands, except per share data) | ||||||||
Adjusted EBITDA (a non-GAAP measure) | ||||||||
Net income attributable to USPH shareholders | $ | 28,239 | $ | 32,158 | ||||
Adjustments: | ||||||||
Provision for income taxes | 12,156 | 12,164 | ||||||
Depreciation and amortization | 15,695 | 14,743 | ||||||
Interest expense, debt and other, net | 9,303 | 5,779 | ||||||
Interest income from investments | (3,774 | ) | - | |||||
Impairment of goodwill and other intangible assets | 17,495 | 9,112 | ||||||
Equity-based awards compensation expense | 7,236 | 7,264 | ||||||
Change in revaluation of put-right liability | (2,582 | ) | 5 | |||||
Change in fair value of contingent earn-out consideration | 1,550 | (2,520 | ) | |||||
Relief Funds* | (467 | ) | - | |||||
Other income | (390 | ) | (859 | ) | ||||
Allocation to non-controlling interests | (6,744 | ) | (4,185 | ) | ||||
77,717 | 73,661 | |||||||
Operating Results (a non-GAAP measure) | ||||||||
Net income attributable to USPH shareholders | $ | 28,239 | $ | 32,158 | ||||
Adjustments: | ||||||||
Impairment of goodwill and other intangible assets | 17,495 | 9,112 | ||||||
Change in fair value of contingent earn-out consideration | 1,550 | (2,520 | ) | |||||
Change in revaluation of put-right liability | (2,582 | ) | 5 | |||||
Relief Funds* | (467 | ) | - | |||||
Allocation to non-controlling interest | (5,215 | ) | (2,734 | ) | ||||
Tax effect at statutory rate (federal and state) | (2,755 | ) | (987 | ) | ||||
$ | 36,265 | $ | 35,034 | |||||
Operating Results per share (a non-GAAP measure) | $ | 2.56 | $ | 2.70 |
For the Year Ended December 31, | Variance | |||||||||||||||||
2023 | 2022 | $ | % | |||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||
Revenue related to: | ||||||||||||||||||
Mature Clinics (1) | $ | 452,459 | $ | 421,806 | $ | 30,653 | 7.3 | % | ||||||||||
Clinic additions (2) | 60,495 | 39,990 | 20,505 | * | (6) | |||||||||||||
Clinics sold or closed (3) | 1,602 | 2,794 | (1,192 | ) | * | (6) | ||||||||||||
Net Patient Revenue | 514,556 | 464,590 | 49,966 | 10.8 | % | |||||||||||||
Other (4) | 11,992 | 11,502 | 490 | 4.3 | % | |||||||||||||
Total | 526,548 | 476,092 | 50,456 | 10.6 | % | |||||||||||||
Operating costs (4) | 421,484 | 380,035 | 41,449 | 10.9 | % | |||||||||||||
Gross profit | $ | 105,064 | $ | 96,057 | $ | 9,007 | 9.4 | % | ||||||||||
Financial and operating metrics (not in thousands): | ||||||||||||||||||
Net rate per patient visit (1) | $ | 102.80 | $ | 103.63 | $ | (0.83 | ) | (0.8 | )% | |||||||||
Patient visits (1) | 5,005,426 | 4,483,282 | 522,144.0 | 11.6 | % | |||||||||||||
Average daily visits per clinic (1) | 30.0 | 28.7 | 1.3 | 4.5 | % | |||||||||||||
Gross margin | 20.0 | % | 20.2 | % | ||||||||||||||
Salaries and related costs per visit, clinics (5) | $ | 59.19 | $ | 59.52 | $ | (0.33 | ) | (0.6 | )% | |||||||||
Operating costs per visit, clinics (5) | $ | 82.79 | $ | 83.34 | $ | (0.55 | ) | (0.7 | )% | |||||||||
Working days | 254 | 255 | (1 | ) | (0.4 | )% | ||||||||||||
Number of clinics at the end of the period | 671 | 640 | 31 | 4.8 | % |
(1) | See defined terms abovefor definitions. |
(2) | Clinic additions during the years ended 2023 and 2022. |
(3) | Revenue from closed clinics includes revenues from the 15 and 16 clinics closed during the full year December 31, 2023 and 2022, respectively. |
(4) | Includes revenues and costs from management contracts. |
(5) | Excludes management contract costs. |
(6) | Not meaningful. |
For the Year Ended December 31, | ||||||||
202 | 2022 | |||||||
(In thousands, except percentages) | ||||||||
Net revene | $ | 78,254 | $ | 77,052 | ||||
Operating costs | 61,809 | 61,085 | ||||||
Gross profit | $ | 16,445 | $ | 15,967 | ||||
Gross margin | 21.0 | % | 20.7 | % |
For the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands, except percentages) | ||||||||
Income before taxes | $ | 49,376 | $ | 55,571 | ||||
Less: Net income attributable to non-controlling interest: | ||||||||
Redeemable non-controlling interest - temporary equity | (4,426 | ) | (6,902 | ) | ||||
Non-controlling interest - permanent equity | (4,555 | ) | (4,347 | ) | ||||
$ | (8,981 | ) | $ | (11,249 | ) | |||
Income before taxes less net income attributable to non-controlling interest | $ | 40,395 | $ | 44,322 | ||||
Provision for income taxes | $ | 12,156 | $ | 12,164 | ||||
Effective income tax rate | 30.1 | % | 27.4 | % |
Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
Net cash provided by operating activities | $ | 81,978 | $ | 58,537 | $ | 76,406 | ||||||
Net cash used in investing activities | 45,015 | 81,269 | 124,136 | |||||||||
Net cash provided by financing activities | 84,268 | 25,759 | 43,379 |
1) | Revolving Facility: $175 million, five-year, revolving credit facility (“Revolving Facility”), which includes a $12 million sublimit for the issuance of standby letters of credit and a $15 million sublimit for swingline loans (each, a “Swingline Loan”). |
2) | Term Facility: $150 million term loan facility (the “Term Facility”). The Term Facility amortizes in quarterly installments of: (a) 0.625% in each of the first two years, (b) 1.250% in the third and fourth year, and (c) 1.875% in the fifth year of the Credit Agreement. The remaining outstanding principal balance of all term loans is due on the maturity date. |
Total | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Term facility (1) | $ | 144,375 | 5,625 | 7,500 | 9,375 | $ | 121,875 | $ | - | $ | - | |||||||||||||||||
Notes payable (2) | 3,775 | 2,486 | 1,289 | - | - | - | - | |||||||||||||||||||||
Interest expense on Term Facility and notes payable (3) | 20,958 | 6,725 | 6,508 | 6,210 | 1,515 | - | - | |||||||||||||||||||||
Operating leases (4) | 144,666 | 46,845 | 36,447 | 27,406 | 18,495 | 10,025 | 5,448 | |||||||||||||||||||||
$ | 313,774 | $ | 61,681 | $ | 51,744 | $ | 42,991 | $ | 141,885 | $ | 10,025 | $ | 5,448 |
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, | ||||||||
2020 | 2019 | |||||||
Gross patient accounts receivable | $ | 119,180 | $ | 124,035 | ||||
Less contractual allowances | 75,266 | 75,109 | ||||||
Subtotal - accounts receivable | 43,914 | 48,926 | ||||||
Less allowance for credit losses | 2,008 | 2,698 | ||||||
Net patient accounts receivable | $ | 41,906 | $ | 46,228 |
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 |
For the Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Number of clinics, at the end of period | 554 | 583 | ||||||
Working Days | 256 | 255 | ||||||
Average visits per day per clinic | 24.6 | 27.6 | ||||||
Total patient visits | 3,533,371 | 4,091,967 | ||||||
Net patient revenue per visit | $ | 105.66 | $ | 105.90 |
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, | ||||||||
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 |
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 |
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 |
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 |
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 |
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, 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 | ||||||||||||||||||||||
Credit Agreement | $ | 16,000 | $ | 16,000 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Notes Payable | 5,495 | 4,899 | 596 | - | - | - | - | |||||||||||||||||||||
Interest Payable | 114 | 107 | 7 | - | - | - | - | |||||||||||||||||||||
Employee Agreements | 47,884 | 39,402 | 7,145 | 1,332 | 5 | - | - | |||||||||||||||||||||
Operating Leases | 119,834 | 37,427 | 29,655 | 22,233 | 14,379 | 7,909 | 8,231 | |||||||||||||||||||||
$ | 189,327 | $ | 97,835 | $ | 37,403 | $ | 23,565 | $ | 14,384 | $ | 7,909 | $ | 8,231 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Reports of Independent Registered Public Accounting Firm—Grant Thornton LLP (PCAOB ID Number 248) | |
48 | |
Audited Financial Statements: | |
53 | |
o | The appropriateness of the methodologies applied, |
o | The reasonableness of the discount rate, royalty rates, and |
o | The qualifications of the third-party valuation specialist engaged by the Company based on their credentials and experience. |
December 31, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 32,918 | $ | 23,548 | ||||
Patient accounts receivable, less allowance for credit losses of $2,008 and $2,698, respectively | 41,906 | 46,228 | ||||||
Accounts receivable - other | 9,039 | 9,823 | ||||||
Other current assets | 3,773 | 5,787 | ||||||
Total current assets | 87,636 | 85,386 | ||||||
Fixed assets: | ||||||||
Furniture and equipment | 55,426 | 54,942 | ||||||
Leasehold improvements | 35,320 | 33,247 | ||||||
Fixed assets, gross | 90,746 | 88,189 | ||||||
Less accumulated depreciation and amortization | 69,081 | 66,099 | ||||||
Fixed assets, net | 21,665 | 22,090 | ||||||
Operating lease right-of-use assets | 81,595 | 81,586 | ||||||
Goodwill | 345,646 | 317,676 | ||||||
Other identifiable intangible assets, net | 56,280 | 52,588 | ||||||
Other assets | 1,539 | 1,519 | ||||||
Total assets | $ | 594,361 | $ | 560,845 | ||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTERESTS | ||||||||
Current liabilities: | ||||||||
Accounts payable - trade | $ | 1,335 | $ | 2,494 | ||||
Accrued expenses | 59,746 | 30,855 | ||||||
Current portion of operating lease liabilities | 27,512 | 26,486 | ||||||
Current portion of notes payable | 4,899 | 728 | ||||||
Total current liabilities | 93,492 | 60,563 | ||||||
Notes payable, net of current portion | 596 | 4,361 | ||||||
Revolving line of credit | 16,000 | 46,000 | ||||||
Deferred taxes | 7,779 | 10,071 | ||||||
Operating lease liabilities, net of current portion | 61,985 | 60,258 | ||||||
Other long-term liabilities | 4,539 | 141 | ||||||
Total liabilities | 184,391 | 181,394 | ||||||
Redeemable non-controlling interests - temporary equity | 132,340 | 137,750 | ||||||
Commitments and Contingencies (Note 17) | 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 | ||||||
Additional paid-in capital | 95,622 | 87,383 | ||||||
Retained earnings | 212,015 | 184,352 | ||||||
Treasury stock at cost, 2,214,737 shares | (31,628 | ) | (31,628 | ) | ||||
Total USPH shareholders’ equity | 276,160 | 240,257 | ||||||
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 |
Year Ended | ||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||
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: | ||||||||||||
Salaries and related costs | 235,629 | 274,233 | 259,228 | |||||||||
Rent, supplies, contract labor and other | 84,336 | 90,379 | 88,426 | |||||||||
Provision for credit losses | 4,623 | 4,858 | 4,603 | |||||||||
Closure costs - lease and other | 2,072 | 25 | (9 | ) | ||||||||
Closure costs - derecognition of goodwill | 1,859 | 0 | 0 | |||||||||
Total operating costs | 328,519 | 369,495 | 352,248 | |||||||||
Gross profit | 94,450 | 112,474 | 101,663 | |||||||||
Corporate office costs | 42,037 | 45,049 | 41,349 | |||||||||
Operating income | 52,413 | 67,425 | 60,314 | |||||||||
Other income and expense: | ||||||||||||
Relief Funds | 13,501 | 0 | 0 | |||||||||
Gain on sale of partnership interest and clinics | 1,091 | 5,514 | 0 | |||||||||
Gain on derecognition of debt | 0 | 0 | 1,846 | |||||||||
Interest and other income, net | 142 | 46 | 93 | |||||||||
Interest expense - debt and other | (1,634 | ) | (2,079 | ) | (2,042 | ) | ||||||
Total other income and expense | 13,100 | 3,481 | (103 | ) | ||||||||
Income before taxes | 65,513 | 70,906 | 60,211 | |||||||||
Provision for income taxes | 13,022 | 13,647 | 11,369 | |||||||||
Net income | 52,491 | 57,259 | 48,842 | |||||||||
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 | ) | ||||||
(17,297 | ) | (17,220 | ) | (13,969 | ) | |||||||
Net income attributable to USPH shareholders | $ | 35,194 | $ | 40,039 | $ | 34,873 | ||||||
Basic and diluted earnings per share attributable to USPH shareholders | $ | 2.48 | $ | 2.45 | $ | 1.31 | ||||||
Shares used in computation - basic and diluted | 12,835 | 12,756 | 12,666 | |||||||||
Dividends declared per common share | $ | 0.32 | $ | 1.14 | $ | 0.92 |
December 31, 2023 | December 31, 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 152,825 | $ | 31,594 | ||||
Patient accounts receivable, less provision for credit losses of $2,736 and $2,829, respectively | 51,866 | 51,934 | ||||||
Accounts receivable - other | 17,854 | 16,671 | ||||||
Other current assets | 10,830 | 11,067 | ||||||
Total current assets | 233,375 | 111,266 | ||||||
Fixed assets: | ||||||||
Furniture and equipment | 63,982 | 62,074 | ||||||
Leasehold improvements | 46,941 | 42,877 | ||||||
Fixed assets, gross | 110,923 | 104,951 | ||||||
Less accumulated depreciation and amortization | (84,821 | ) | (80,203 | ) | ||||
Fixed assets, net | 26,102 | 24,748 | ||||||
Operating lease right-of-use assets | 103,431 | 103,004 | ||||||
Investment in unconsolidated affiliate | 12,256 | 12,131 | ||||||
Goodwill | 509,571 | 494,101 | ||||||
Other identifiable intangible assets, net | 109,682 | 108,755 | ||||||
Other assets | 2,821 | 4,149 | ||||||
Total assets | $ | 997,238 | $ | 858,154 | ||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST | ||||||||
Current liabilities: | ||||||||
Accounts payable - trade | $ | 3,898 | $ | 3,300 | ||||
Accounts payable - due to seller of acquired business | - | 3,204 | ||||||
Accrued expenses | 55,344 | 37,413 | ||||||
Current portion of operating lease liabilities | 35,252 | 33,709 | ||||||
Current portion of term loan and notes payable | 7,691 | 7,863 | ||||||
Total current liabilities | 102,185 | 85,489 | ||||||
Notes payable, net of current portion | 1,289 | 1,913 | ||||||
Revolving facility | - | 31,000 | ||||||
Term loan, net of current portion and deferred financing costs | 137,702 | 142,918 | ||||||
Deferred taxes | 24,815 | 21,303 | ||||||
Operating lease liabilities, net of current portion | 76,653 | 77,934 | ||||||
Other long-term liabilities | 2,356 | 13,029 | ||||||
Total liabilities | 345,000 | 373,586 | ||||||
Redeemable non-controlling interest - temporary equity | 174,828 | 167,515 | ||||||
Commitments and Contingencies | ||||||||
U.S. Physical Therapy, Inc. (“USPH”) shareholders’ equity: | ||||||||
Preferred stock, $0.01 par value, 500,000 shares authorized, no shares issued and outstanding | - | - | ||||||
Common stock, $0.01 par value, 20,000,000 shares authorized, 17,202,291 and 15,216,326 shares issued, respectively | 172 | 152 | ||||||
Additional paid-in capital | 281,096 | 110,317 | ||||||
Accumulated other comprehensive gain | 2,782 | 4,004 | ||||||
Retained earnings | 223,772 | 232,948 | ||||||
Treasury stock at cost, 2,214,737 shares | (31,628 | ) | (31,628 | ) | ||||
Total USPH shareholders’ equity | 476,194 | 315,793 | ||||||
Non-controlling interest - permanent equity | 1,216 | 1,260 | ||||||
Total USPH shareholders’ equity and non-controlling interest - permanent equity | 477,410 | 317,053 | ||||||
Total liabilities, redeemable non-controlling interest, USPH shareholders’ equity and non-controlling interest - permanent equity | $ | 997,238 | $ | 858,154 |
U.S. Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||
Issuance of restricted stock, net of cancellations | 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 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 0 | 5,939 | 0 | - | 0 | 5,939 | 0 | 5,939 | |||||||||||||||||||||||||||
Transfer of compensation liability for certain stock issued pursuant to long-term incentive plans | - | 0 | 373 | 0 | - | 0 | 373 | 0 | 373 | |||||||||||||||||||||||||||
Sale of non-controlling interest, net of purchases and tax | - | 0 | (224 | ) | 0 | - | 0 | (224 | ) | (48 | ) | (272 | ) | |||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (11,664 | ) | - | 0 | (11,664 | ) | 0 | (11,664 | ) | ||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (5,812 | ) | (5,812 | ) | |||||||||||||||||||||||||
Other | - | 0 | 0 | 49 | - | 0 | 49 | 50 | 99 | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 5,536 | 5,536 | |||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 34,873 | - | 0 | 34,873 | 0 | 34,873 | |||||||||||||||||||||||||||
Balance December 31, 2018 | 14,899 | $ | 149 | $ | 80,028 | $ | 167,396 | (2,215 | ) | $ | (31,628 | ) | $ | 215,945 | $ | 930 | $ | 216,875 |
U.S. Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 90 | 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 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 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 | 636 | 0 | - | 0 | 636 | 0 | 636 | |||||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | 0 | (266 | ) | 0 | - | 0 | (266 | ) | (26 | ) | (292 | ) | |||||||||||||||||||||||
Sale of non-controlling interest, net of purchases and tax | - | 0 | 0 | 196 | - | 0 | 196 | 0 | 196 | |||||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (14,555 | ) | - | 0 | (14,555 | ) | 0 | (14,555 | ) | ||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (6,014 | ) | (6,014 | ) | |||||||||||||||||||||||||
Other | - | 0 | 0 | 47 | - | 0 | 47 | (7 | ) | 40 | ||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 6,561 | 6,561 | |||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 40,039 | - | 0 | 40,039 | 0 | 40,039 | |||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 76 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest, net of tax | 0 | 0 | 0 | (3,415 | ) | 0 | 0 | (3,415 | ) | 0 | (3,415 | ) | ||||||||||||||||||||||||
Compensation expense - equity-based awards | - | 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 | 486 | 0 | - | 0 | 486 | 0 | 486 | |||||||||||||||||||||||||||
Purchase of partnership interests - redeemable non-controlling interests | - | 0 | 0 | 0 | - | 0 | 0 | (168 | ) | (168 | ) | |||||||||||||||||||||||||
Sale of non-controlling interest, net of purchases and tax | - | 0 | (164 | ) | 0 | - | 0 | (164 | ) | 0 | (164 | ) | ||||||||||||||||||||||||
Dividends paid to USPT shareholders | - | 0 | 0 | (4,110 | ) | - | 0 | (4,110 | ) | 0 | (4,110 | ) | ||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | (5,928 | ) | (5,928 | ) | |||||||||||||||||||||||||
Other | - | 0 | 0 | (6 | ) | - | 0 | (6 | ) | 0 | (6 | ) | ||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | 0 | 0 | 0 | - | 0 | 0 | 6,122 | 6,122 | |||||||||||||||||||||||||||
Net income attributable to USPH shareholders | - | 0 | 0 | 35,194 | - | 0 | 35,194 | 0 | 35,194 | |||||||||||||||||||||||||||
Balance December 31, 2020 | 15,065 | 151 | 95,622 | 212,015 | (2,215 | ) | (31,628 | ) | 276,160 | 1,470 | 277,630 |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
Net patient revenue | $ | 514,556 | $ | 464,590 | $ | 438,330 | ||||||
Other revenue | 90,246 | 88,554 | 56,692 | |||||||||
Net revenue | 604,802 | 553,144 | 495,022 | |||||||||
Operating cost: | ||||||||||||
Salaries and related costs | 353,390 | 319,191 | 278,469 | |||||||||
Rent, supplies, contract labor and other | 123,731 | 116,381 | 94,066 | |||||||||
Provision for credit losses | 6,172 | 5,548 | 5,305 | |||||||||
Total operating cost | 483,293 | 441,120 | 377,840 | |||||||||
Gross profit | 121,509 | 112,024 | 117,182 | |||||||||
Corporate office costs | 51,953 | 46,111 | 46,533 | |||||||||
Impairment of goodwill and other intangible assets | 17,495 | 9,112 | - | |||||||||
Operating income | 52,061 | 56,801 | 70,649 | |||||||||
Other (expense) income | ||||||||||||
Interest expense, debt and other | (9,303 | ) | (5,779 | ) | (942 | ) | ||||||
Interest income from investments | 3,774 | - | - | |||||||||
Change in fair value of contingent earn-out consideration | (1,550 | ) | 2,520 | - | ||||||||
Change in revaluation of put-right liability | 2,582 | (5 | ) | - | ||||||||
Equity in earnings of unconsolidated affiliate | 955 | 1,175 | 112 | |||||||||
Relief Funds | 467 | - | 4,597 | |||||||||
Settlement of a legal matter | - | - | (2,635 | ) | ||||||||
Resolution of a payor matter | - | - | 1,216 | |||||||||
Other | 390 | 859 | 199 | |||||||||
Total other (expense) income | (2,685 | ) | (1,230 | ) | 2,547 | |||||||
Income before taxes | 49,376 | 55,571 | 73,196 | |||||||||
Provision for income taxes | 12,156 | 12,164 | 15,272 | |||||||||
Net income | 37,220 | 43,407 | 57,924 | |||||||||
Less: Net income attributable to non-controlling interest: | ||||||||||||
Redeemable non-controlling interest - temporary equity | (4,426 | ) | (6,902 | ) | (11,358 | ) | ||||||
Non-controlling interest - permanent equity | (4,555 | ) | (4,347 | ) | (5,735 | ) | ||||||
(8,981 | ) | (11,249 | ) | (17,093 | ) | |||||||
Net income attributable to USPH shareholders | $ | 28,239 | $ | 32,158 | $ | 40,831 | ||||||
Basic and diluted earnings per share attributable to USPH shareholders | $ | 1.28 | $ | 2.25 | $ | 2.41 | ||||||
Shares used in computation - basic and diluted | 14,188 | 12,985 | 12,898 | |||||||||
Dividends declared per common share | $ | 1.72 | $ | 1.64 | $ | 1.46 |
Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
Net income | $ | 37,220 | $ | 43,407 | $ | 57,924 | ||||||
Other comprehensive loss | ||||||||||||
Unrealized (loss) gain on cash flow hedge | (1,642 | ) | 5,378 | - | ||||||||
Tax effect at statutory rate (federal and state) | 420 | (1,374 | ) | - | ||||||||
Comprehensive income | $ | 35,998 | $ | 47,411 | $ | 57,924 | ||||||
Comprehensive income attributable to non-controlling interest | (8,981 | ) | (11,249 | ) | (17,093 | ) | ||||||
Comprehensive income attributable to USPH shareholders | $ | 27,017 | $ | 36,162 | $ | 40,831 |
U.S. Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Accumulated Other | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | ||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Comprehensive Gain | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||||||
Balance January 1, 2021 | 15,066 | $ | 151 | $ | 95,622 | $ | - | $ | 212,015 | (2,215 | ) | $ | (31,628 | ) | $ | 276,160 | $ | 1,470 | $ | 277,630 | ||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | - | 40,831 | - | - | 40,831 | - | 40,831 | ||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | - | - | - | - | - | - | - | 5,735 | 5,735 | ||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 60 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest | - | - | - | - | (9,686 | ) | - | - | (9,686 | ) | - | (9,686 | ) | |||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | (918 | ) | - | - | - | - | (918 | ) | (60 | ) | (978 | ) | ||||||||||||||||||||||||||
Sale of non-controlling interest | - | - | 96 | - | - | - | - | 96 | 2 | 98 | ||||||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 7,867 | - | - | - | - | 7,867 | - | 7,867 | ||||||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | - | (18,765 | ) | - | - | (18,765 | ) | - | (18,765 | ) | |||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | - | (5,572 | ) | (5,572 | ) | ||||||||||||||||||||||||||||
Short swing profit settlement | - | - | 20 | - | - | - | - | 20 | - | 20 | ||||||||||||||||||||||||||||||
Other | - | - | 1 | - | - | - | - | 1 | - | 1 | ||||||||||||||||||||||||||||||
Balance December 31, 2021 | 15,126 | $ | 151 | $ | 102,688 | $ | - | $ | 224,395 | (2,215 | ) | $ | (31,628 | ) | $ | 295,606 | $ | 1,575 | $ | 297,181 |
U.S. Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Accumulated Other | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | ||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Comprehensive Gain | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||||||
Balance January 1, 2022 | 15,126 | $ | 151 | $ | 102,688 | $ | - | $ | 224,395 | (2,215 | ) | $ | (31,628 | ) | $ | 295,606 | $ | 1,575 | $ | 297,181 | ||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | - | 32,158 | - | - | 32,158 | - | 32,158 | ||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | - | - | - | - | - | - | - | 4,347 | 4,347 | ||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 90 | 1 | - | - | - | - | - | 1 | - | 1 | ||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest | - | - | - | - | (2,896 | ) | - | - | (2,896 | ) | - | (2,896 | ) | |||||||||||||||||||||||||||
Purchase of non-controlling interest | - | - | (353 | ) | - | - | - | - | (353 | ) | (101 | ) | (454 | ) | ||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 7,264 | - | - | - | - | 7,264 | - | 7,264 | ||||||||||||||||||||||||||||||
Transfer of compensation liability for certain stock | - | - | 707 | - | - | - | - | 707 | - | 707 | ||||||||||||||||||||||||||||||
Dividends paid to USPH shareholders | - | - | - | - | (21,321 | ) | - | - | (21,321 | ) | - | (21,321 | ) | |||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | - | (5,246 | ) | (5,246 | ) | ||||||||||||||||||||||||||||
Deferred taxes related to redeemable non-controlling interest - temporary equity | - | - | - | - | 613 | - | - | 613 | - | 613 | ||||||||||||||||||||||||||||||
Other comprehensive gain | - | - | - | 4,004 | - | - | - | 4,004 | - | 4,004 | ||||||||||||||||||||||||||||||
Other | - | - | 11 | - | (1 | ) | - | - | 10 | 685 | 695 | |||||||||||||||||||||||||||||
Balance December 31, 2022 | 15,216 | $ | 152 | $ | 110,317 | $ | 4,004 | $ | 232,948 | (2,215 | ) | $ | (31,628 | ) | $ | 315,793 | $ | 1,260 | $ | 317,053 |
U.S. Physical Therapy, Inc. | ||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional | Accumulated Other | Retained | Treasury Stock | Total Shareholders’ | Non-Controlling | ||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Comprehensive Loss | Earnings | Shares | Amount | Equity | Interests | Total | |||||||||||||||||||||||||||||||
Balance January 1, 2023 | 15,216 | $ | 152 | $ | 110,317 | $ | 4,004 | $ | 232,948 | (2,215 | ) | $ | (31,628 | ) | $ | 315,793 | $ | 1,260 | $ | 317,053 | ||||||||||||||||||||
Net income attributable to USPH shareholders | - | - | - | - | 28,239 | - | - | 28,239 | - | 28,239 | ||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest - permanent equity | - | - | - | - | - | - | - | - | 4,555 | 4,555 | ||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | 70 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Issuance of common stock, pursuant to the secondary public offering, net of issuance costs | 1,916 | 20 | 163,626 | - | - | - | - | 163,646 | - | 163,646 | ||||||||||||||||||||||||||||||
Revaluation of redeemable non-controlling interest | - | - | - | - | (13,564 | ) | - | - | (13,564 | ) | - | (13,564 | ) | |||||||||||||||||||||||||||
Compensation expense - equity-based awards | - | - | 7,236 | - | - | - | - | 7,236 | - | 7,236 | ||||||||||||||||||||||||||||||
Sale of non-controlling interest | - | - | - | - | - | - | - | - | 4 | 4 | ||||||||||||||||||||||||||||||
Purchase of partnership interests - non-controlling interest | - | - | (83 | ) | - | - | - | - | (83 | ) | (36 | ) | (119 | ) | ||||||||||||||||||||||||||
Dividends payable to USPH shareholders | - | - | - | - | (24,128 | ) | - | - | (24,128 | ) | - | (24,128 | ) | |||||||||||||||||||||||||||
Distributions to non-controlling interest partners - permanent equity | - | - | - | - | - | - | - | - | (4,567 | ) | (4,567 | ) | ||||||||||||||||||||||||||||
Deferred taxes related to redeeemable non-controlling interest - temporary equity | - | - | - | - | 587 | - | - | 587 | - | 587 | ||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | (1,222 | ) | (2 | ) | - | - | (1,224 | ) | - | (1,224 | ) | ||||||||||||||||||||||||||
Other | - | - | - | - | (308 | ) | - | - | (308 | ) | - | (308 | ) | |||||||||||||||||||||||||||
Balance December 31, 2023 | 17,202 | $ | 172 | $ | 281,096 | $ | 2,782 | $ | 223,772 | (2,215 | ) | $ | (31,628 | ) | $ | 476,194 | $ | 1,216 | $ | 477,410 |
Year Ended | ||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||
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: | ||||||||||||
Depreciation and amortization | 10,533 | 10,095 | 9,755 | |||||||||
Provision for credit losses | 4,623 | 4,858 | 4,603 | |||||||||
Equity-based awards compensation expense | 7,917 | 6,985 | 5,939 | |||||||||
Deferred income taxes | (258 | ) | 4,651 | 4,813 | ||||||||
Gain on sale of partnership interest | (1,091 | ) | (5,514 | ) | (1,846 | ) | ||||||
Write-off of goodwill - closed clinics | 1,859 | 0 | 0 | |||||||||
Other | 281 | 96 | 167 | |||||||||
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 accounts payable and accrued expenses | 12,427 | (4,209 | ) | 4,876 | ||||||||
Increase (decrease) in other long-term liabilities | 4,492 | (1,020 | ) | 32 | ||||||||
Net cash provided by operating activities | 99,995 | 62,448 | 73,005 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Purchase of fixed assets | (7,639 | ) | (10,189 | ) | (7,193 | ) | ||||||
Purchase of majority interest in businesses, net of cash acquired | (23,907 | ) | (30,597 | ) | (16,367 | ) | ||||||
Purchase of redeemable non-controlling interest, temporary equity | (20,385 | ) | (8,651 | ) | 0 | |||||||
Purchase of non-controlling interest, permanent equity | (238 | ) | (428 | ) | (350 | ) | ||||||
Proceeds on sale of redeemable non-controlling interest, temporary equity | 127 | 207 | 0 | |||||||||
Proceeds on sales of partnership interest, clinics and fixed assets | 839 | 11,665 | 1 | |||||||||
Net cash used in investing activities | (51,203 | ) | (37,993 | ) | (23,909 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Distributions to non-controlling interests, permanent and temporary equity | (18,331 | ) | (16,235 | ) | (15,646 | ) | ||||||
Cash dividends paid to shareholders | (4,110 | ) | (14,555 | ) | (11,664 | ) | ||||||
Proceeds from revolving line of credit | 214,000 | 145,000 | 103,000 | |||||||||
Payments on revolving line of credit | (244,000 | ) | (137,000 | ) | (119,000 | ) | ||||||
Payments to settle mandatorily redeemable non-controlling interests | 0 | 0 | (265 | ) | ||||||||
Principal payments on notes payable | (1,037 | ) | (1,433 | ) | (4,044 | ) | ||||||
Medicare Accelerated and Advance Payment Funds | 14,054 | 0 | 0 | |||||||||
Other | 2 | (52 | ) | (42 | ) | |||||||
Net cash used in financing activities | (39,422 | ) | (24,275 | ) | (47,661 | ) | ||||||
Net increase in cash and cash equivalents | 9,370 | 180 | 1,435 | |||||||||
Cash and cash equivalents - beginning of period | 23,548 | 23,368 | 21,933 | |||||||||
Cash and cash equivalents - end of period | $ | 32,918 | $ | 23,548 | $ | 23,368 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||
Cash paid during the period for: | ||||||||||||
Income taxes | $ | 7,677 | $ | 9,856 | $ | 9,183 | ||||||
Interest | $ | 1,202 | $ | 1,890 | $ | 2,357 | ||||||
Non-cash investing and financing transactions during the period: | ||||||||||||
Purchase of businesses - seller financing portion | $ | 1,121 | $ | 4,300 | $ | 950 | ||||||
Purchase of business - payable to common shareholders of acquired business | $ | 0 | $ | 502 | $ | 0 | ||||||
Notes payable related to purchase of redeemable non-controlling interest, temporary equity | $ | 136 | $ | 283 | $ | 0 | ||||||
Notes payable related to purchase of non-controlling interest, permanent equity | $ | 699 | $ | 103 | $ | 0 | ||||||
Notes receivable related to sale of partnership interest - redeemable non-controlling interest | $ | 0 | $ | 2,870 | $ | 0 | ||||||
Notes receivables related to sale of partnership interest | $ | 994 | $ | 0 | $ | 0 |
Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income including non-controlling interest | $ | 37,220 | $ | 43,407 | $ | 57,924 | ||||||
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 15,695 | 14,743 | 11,591 | |||||||||
Provision for credit losses | 6,172 | 5,548 | 5,305 | |||||||||
Equity-based awards compensation expense | 7,236 | 7,264 | 7,867 | |||||||||
Amortization of debt issue costs | 420 | 305 | 56 | |||||||||
Change in deferred income taxes | 4,490 | 4,309 | 5,688 | |||||||||
Change in revaluation of put-right liability | (2,582 | ) | 5 | - | ||||||||
Change in fair value of contingent earn-out consideration | 1,550 | (2,520 | ) | - | ||||||||
Equity of earnings in unconsolidated affiliate | (955 | ) | (1,175 | ) | (112 | ) | ||||||
Loss (gain) on sale of clinics and fixed assets | 166 | (643 | ) | - | ||||||||
Impairment of goodwill and other intangible assets | 17,495 | 9,112 | - | |||||||||
Other | - | (83 | ) | (134 | ) | |||||||
Changes in operating assets and liabilities: | ||||||||||||
Increase in patient accounts receivable | (5,645 | ) | (10,279 | ) | (9,417 | ) | ||||||
Increase in accounts receivable - other | (356 | ) | (307 | ) | (1,538 | ) | ||||||
Increase (decrease) in other current and long term assets | (197 | ) | (5,940 | ) | (633 | ) | ||||||
Decrease (increase) in accounts payable and accrued expenses | 15 | (7,755 | ) | 4,657 | ||||||||
Decrease (increase) in other long-term liabilities | 1,254 | 2,546 | (4,848 | ) | ||||||||
Net cash provided by operating activities | 81,978 | 58,537 | 76,406 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Purchase of fixed assets | (9,294 | ) | (8,248 | ) | (8,201 | ) | ||||||
Purchase of majority interest in businesses, net of cash acquired | (26,582 | ) | (59,788 | ) | (86,823 | ) | ||||||
Purchase of redeemable non-controlling interest, temporary equity | (10,986 | ) | (14,987 | ) | (28,465 | ) | ||||||
Purchase of non controlling interest, permanent equity | (281 | ) | (280 | ) | (1,274 | ) | ||||||
Proceeds on sale of non-controlling interest, permanent equity | 102 | - | 131 | |||||||||
Proceeds on sale of partnership interest - redeemable non-controlling interest, temporary equity | 875 | 402 | 69 | |||||||||
Distributions from unconsolidated affiliate | 830 | 1,259 | 152 | |||||||||
Proceeds on sale of partnership interest, clinics and fixed assets | - | 373 | 275 | |||||||||
Other | 321 | - | - | |||||||||
Net cash used in investing activities | (45,015 | ) | (81,269 | ) | (124,136 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from issuance of common stock pursuant to the secondary public offering, net of issuance costs | 163,646 | - | - | |||||||||
Proceeds from revolving facility | 24,000 | 101,000 | 316,000 | |||||||||
Distributions to non-controlling interest, permanent and temporary equity | (16,100 | ) | (15,348 | ) | (16,931 | ) | ||||||
Cash dividends paid to shareholders | (24,128 | ) | (21,321 | ) | (18,765 | ) | ||||||
Payments on revolving facility | (55,000 | ) | (184,000 | ) | (218,000 | ) | ||||||
Principal payments on notes payable | (4,400 | ) | (930 | ) | (4,899 | ) | ||||||
Payments on term loan | (3,750 | ) | (1,875 | ) | - | |||||||
Proceeds from term loan | - | 150,000 | - | |||||||||
Payment of deferred financing costs | - | (1,779 | ) | - | ||||||||
Payment of Medicare Accelerated and Advance Funds | - | - | (14,054 | ) | ||||||||
Other | - | 12 | 28 | |||||||||
Net cash provided by financing activities | 84,268 | 25,759 | 43,379 | |||||||||
Net increase in cash and cash equivalents | 121,231 | 3,027 | (4,351 | ) | ||||||||
Cash and cash equivalents - beginning of period | 31,594 | 28,567 | 32,918 | |||||||||
Cash and cash equivalents - end of period | $ | 152,825 | $ | 31,594 | $ | 28,567 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||
Cash paid during the period for: | ||||||||||||
Income taxes | $ | 4,926 | $ | 7,615 | $ | 12,214 | ||||||
Interest paid | $ | 8,655 | $ | 5,687 | $ | 1,352 | ||||||
Non-cash investing and financing transactions during the period: | ||||||||||||
Purchase of businesses - seller financing portion | $ | 1,815 | $ | 1,574 | $ | 3,050 | ||||||
Liabilities assumed associated with a purchase of a business | $ | 524 | $ | - | $ | - | ||||||
Notes payable related to purchase of redeemable non-controlling interest, temporary equity | $ | 1,087 | $ | 1,074 | $ | 1,759 | ||||||
Notes payable related to the purchase of non-controlling interest, permanent equity | $ | 200 | $ | 296 | $ | - | ||||||
Notes receivable related to sale of redeemable non-controlling interest, temporary equity | $ | 4,136 | $ | 1,580 | $ | 914 | ||||||
Notes receivable related to the sale of non-controlling interest, permanent equity | $ | 458 | $ | - | $ | - |
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 |
% Interest | Number of | |||||
Acquisition | Date | Acquired | Clinics | |||
October 2023 Acquisition | October 31, 2023 | ** | * | |||
September 2023 Acquisition 1 | September 29, 2023 | 70% | 4 | |||
September 2023 Acquisition 2 | September 29, 2023 | 70% | 1 | |||
July 2023 Acquisition | July 31, 2023 | 70% | 7 | |||
May 2023 Acquisition | May 31, 2023 | 45% | 4 | |||
February 2023 Acquisition | February 28, 2023 | 80% | 1 | |||
November 2022 Acquisition | November 30, 2022 | 80% | 13 | |||
October 2022 Acquisition | October 31, 2022 | 60% | 14 | |||
September 2022 Acquisition | September 30, 2022 | 80% | 2 | |||
August 2022 Acquisition | August 31, 2022 | 70% | 6 | |||
March 2022 Acquisition | March 31, 2022 | 70% | 6 | |||
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 |
* | IIP business |
** | On October 31, 2023, the Company concurrently acquired 100% of an IIP business and a 55% equity interest in the ergonomics software business (“October 2023 Acquisition”). |
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 |
• | Level 1 – Quoted prices in active markets for identical assets or liabilities. |
• | Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. |
• | Level 3 – Unobservable inputs based on the Company’s own assumptions. |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||
Net income attributable to USPH shareholders | $ | 28,239 | $ | 32,158 | $ | 40,831 | ||||||
Charges to retained earnings: | ||||||||||||
Revaluation of redeemable non-controlling interest | (13,565 | ) | (3,890 | ) | (13,011 | ) | ||||||
Tax effect at statutory rate (federal and state) | 3,466 | 994 | 3,324 | |||||||||
$ | 18,140 | $ | 29,262 | $ | 31,144 | |||||||
Earnings per share (basic and diluted) | $ | 1.28 | $ | 2.25 | $ | 2.41 | ||||||
Shares used in computation: | ||||||||||||
Basic and diluted earnings per share - weighted-average shares | 14,188 | 12,985 | 12,898 |
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 |
Cash paid, net of cash acquired ($500) | $ | 23,907 | ||
Seller note | 1,121 | |||
Total consideration | $ | 25,028 | ||
Estimated fair value of net tangible assets acquired: | ||||
Total current assets | $ | 1,271 | ||
Total non-current assets | 134 | |||
Total liabilities | (555 | ) | ||
Net tangible assets acquired | $ | 850 | ||
Referral relationships | 3,597 | |||
Non-compete | 1,012 | |||
Tradename | 2,326 | |||
Goodwill | 28,540 | |||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | (11,297 | ) | ||
$ | 25,028 |
IIPS* | Physical Therapy Operations | Total | ||||||||||
Cash paid, net of cash acquired ($890) | $ | 18,428 | $ | 12,170 | $ | 30,598 | ||||||
Payable to shareholders of seller | 485 | 0 | 485 | |||||||||
Seller note | 4,000 | 300 | 4,300 | |||||||||
Total consideration | $ | 22,913 | $ | 12,470 | $ | 35,383 | ||||||
Estimated fair value of net tangible assets acquired: | ||||||||||||
Total current assets | $ | 1,641 | $ | 650 | $ | 2,291 | ||||||
Total non-current assets | 848 | 394 | 1,242 | |||||||||
Total liabilities | (2,978 | ) | (191 | ) | (3,169 | ) | ||||||
Net tangible assets acquired | $ | (489 | ) | $ | 853 | $ | 364 | |||||
Referral relationships | 3,400 | 2,600 | 6,000 | |||||||||
Non-compete | 250 | 270 | 520 | |||||||||
Tradename | 1,300 | 740 | 2,040 | |||||||||
Goodwill | 18,452 | 14,237 | 32,689 | |||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interests) | 0 | (6,230 | ) | (6,230 | ) | |||||||
$ | 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 |
% Interest | Number of | |||||||||
Acquisition | Date | Acquired | Clinics | |||||||
October 2023 Acquisition | October 31, 2023 | ** | * | |||||||
September 2023 Acquisition1 | September 29, 2023 | 70% | 4 | |||||||
September 2023 Acquisition2 | September 29, 2023 | 70% | 1 | |||||||
July 2023 Acquisition | July 31, 2023 | 70% | 7 | |||||||
May 2023 Acquisition | May 31, 2023 | 45% | 4 | |||||||
February 2023 Acquisition | February 28, 2023 | 80% | 1 |
* | IIP business |
** | On October 31, 2023, the Company concurrently acquired 100% of an IIP business and a 55% equity interest in the ergonomics software business (“October 2023 Acquisition”). |
For the Year Ended December 31, 2023 | ||||||||||||
Physical Therapy | ||||||||||||
IIP | Operations | Total | ||||||||||
(In thousands) | ||||||||||||
Cash paid, net of cash acquired | $ | 3,955 | $ | 22,627 | $ | 26,582 | ||||||
Seller note | - | 985 | 985 | |||||||||
Deferred payments | - | 830 | 830 | |||||||||
Contingent payments | - | 200 | 200 | |||||||||
Total consideration | $ | 3,955 | $ | 24,642 | $ | 28,597 | ||||||
Estimated fair value of net tangible assets acquired: | ||||||||||||
Total current assets | $ | 392 | $ | 1,141 | $ | 1,533 | ||||||
Total non-current assets | 335 | 3,149 | 3,484 | |||||||||
Total liabilities | (41 | ) | (3,163 | ) | (3,204 | ) | ||||||
Net tangible assets acquired | 686 | 1,127 | 1,813 | |||||||||
Customer and referral relationships | 757 | 6,819 | 7,576 | |||||||||
Non-compete agreement | 37 | 329 | 366 | |||||||||
Tradenames | 187 | 1,680 | 1,867 | |||||||||
Goodwill | 2,562 | 25,521 | 28,083 | |||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | (274 | ) | (10,834 | ) | (11,108 | ) | ||||||
$ | 3,955 | $ | 24,642 | $ | 28,597 |
% Interest | Number of | |||||||||
Acquisition | Date | Acquired | Clinics | |||||||
November 2022 Acquisition | November 30, 2022 | 80% | 13 | |||||||
October 2022 Acquisition | October 31, 2022 | 60% | 14 | |||||||
September 2022 Acquisition | September 30, 2022 | 80% | 2 | |||||||
August 2022 Acquisition | August 31, 2022 | 70% | 6 | |||||||
March 2022 Acquisition | March 31, 2022 | 70% | 6 |
Physical Therapy | ||||
Operations | ||||
(In thousands) | ||||
Cash paid, net of cash acquired | $ | 59,788 | ||
Seller notes | 1,574 | |||
Contingent payments | 10,000 | |||
Total consideration | $ | 71,362 | ||
Estimated fair value of net tangible assets acquired: | ||||
Total current assets | $ | 1,329 | ||
Total non-current assets | 7,798 | |||
Total liabilities | (10,930 | ) | ||
Net tangible assets acquired | (1,803 | ) | ||
Customer and referral relationships | 18,062 | |||
Non-compete agreements | 934 | |||
Tradenames | 5,445 | |||
Goodwill | 75,525 | |||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | (26,801 | ) | ||
$ | 71,362 |
% Interest | Number of | |||||||||
Acquisition | Date | Acquired | 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 |
* | IIP business |
Physical Therapy | ||||||||||||
IIP | Operations | Total | ||||||||||
(In thousands) | (In thousands) | (In thousands) | ||||||||||
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 | - | 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 | $ | 5,588 | $ | 1,885 | $ | 7,473 | ||||||
Total non-current assets | 12,620 | 7,014 | 19,634 | |||||||||
Total liabilities | (4,842 | ) | (8,313 | ) | (13,155 | ) | ||||||
Net tangible assets acquired | 13,366 | 586 | 13,952 | |||||||||
Customer and referral relationships | 21,127 | 7,969 | 29,096 | |||||||||
Non-compete agreements | 500 | 415 | 915 | |||||||||
Tradenames | 5,141 | 2,144 | 7,285 | |||||||||
Goodwill | 58,257 | 27,109 | 85,366 | |||||||||
Fair value of non-controlling interest (classified as redeemable non-controlling interest) | (27,906 | ) | (11,956 | ) | (39,862 | ) | ||||||
$ | 70,485 | $ | 26,267 | $ | 96,752 |
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 |
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 laterof: |
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 The Partnership Agreement contains provisions for the redemption of the Seller Entity Interest, either at the option of the Company (the “Call Right”) or at the option of the Seller Entity (the “Put Right”) as follows: |
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 “Progressive Selling Shareholders”), who work in and manage the Progressive business. |
2. | In conjunction with the acquisition, the Progressive Selling Shareholders caused the Progressive Parent to transfer its ownership of the Progressive Subsidiaries into a newly-formed limited liability company (“Progressive NewCo”), in exchange for one hundred percent (100%) of the membership interests in Progressive NewCo. Therefore, in this step, Progressive NewCo became wholly-owned by the Progressive Selling Shareholders. |
3. | The Company entered into an agreement (the “Progressive Purchase Agreement”) to acquire from the Progressive Selling Shareholders a majority of the membership interest in Progressive 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 “Progressive Purchase Price”). |
4. | The Company and the Progressive Selling Shareholders also executed an operating agreement (the “Progressive Operating Agreement”) for Progressive NewCo that sets forth the rights and obligations of the members of Progressive NewCo. |
5. | As noted above, the Company did not purchase 100% of the membership interests in Progressive NewCo and the Progressive Selling Shareholders retained a portion of the membership interest in Progressive NewCo (“Progressive Selling Shareholders’ Interest”). |
6. | The Company and the Progressive Selling Shareholders executed a non-compete agreement (the “Progressive Non-Compete Agreement”) which restricts the Progressive Selling Shareholders from competing for a specified period of time (the “Progressive Non-Compete Term”). |
7. | The Progressive Non-Compete Term commences as of the date of the closing of the Progressive acquisition (the “Progressive Closing Date”) and expires on the later of: |
a. | Two years after the date a Progressive Selling Shareholder no longer is involved in the management of Progressive NewCo or |
b. | Seven years from the date of the acquisition. |
8. | The Progressive Non-Compete Agreement applies to the entire United States. |
9. | The Progressive Put Right (as defined below) and the Progressive Call Right (as defined below) do not have an expiration date. The Progressive Operating Agreement contains provisions for the redemption of the Progressive Selling Shareholder’s Interest, either at the option of the Company (the “Progressive Call Right”) or at the option of the Progressive Selling Shareholder (the “Progressive Put Right”) as follows: |
1. | Progressive Put Right |
a. | Each of the Progressive Selling Shareholders has the right to sell 30% of their respective residual interests on each of the 4th and 5th anniversaries of the Progressive Closing Date, and then 10% on each of the 6th and 7th anniversaries |
b. | In the event that any Progressive Selling Shareholder terminates his management relationship with Progressive NewCo for any reason on or after the seventh anniversary of the Closing Date, the Progressive Selling Shareholder has the Progressive Put Right, and upon the exercise of the Progressive Put Right, the Progressive Selling Shareholder’s Interest shall be redeemed by the Company at the purchase price described in “3” below. |
2. | Progressive Call Right |
a. | If any Progressive Selling Shareholder’s ceases to perform management services on behalf of Progressive NewCo, the Company thereafter shall have an irrevocable right to purchase from such Progressive Selling Shareholder his Interest, in each case at the purchase price described in “3” below. |
3. | For the Progressive Put Right and the Progressive Call Right, the purchase price is derived from a formula based on a specified multiple of Progressive 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 Progressive NewCo (the “Progressive Redemption Amount”). Progressive NewCo’s earnings are distributed monthly based on available cash within Progressive NewCo; therefore, the undistributed earnings amount is small, if any. |
4. | The Progressive 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 Progressive Put Right and the Progressive Call Right noted above. |
5. | The Progressive Put Right and the Progressive Call Right do not have an expiration date. |
For the Year Ended | ||||||||||||||||||||||||
Year Ended | December 31, 2023 | December 31, 2022 | December 31, 2021 | |||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | (In thousands) | |||||||||||||||||||||
Beginning balance | $ | 137,750 | $ | 133,943 | $ | 102,572 | $ | 167,515 | $ | 155,262 | $ | 132,340 | ||||||||||||
Operating results allocated to redeemable non-controlling interest partners | 11,175 | 10,659 | 8,433 | |||||||||||||||||||||
Net income allocated to redeemable non-controlling interest | 4,426 | 6,902 | 11,358 | |||||||||||||||||||||
Distributions to redeemable non-controlling interest partners | (12,403 | ) | (10,221 | ) | (9,835 | ) | (11,533 | ) | (10,102 | ) | (11,359 | ) | ||||||||||||
Changes in the fair value of redeemable non-controlling interest | 4,632 | 11,893 | 24,770 | 13,565 | 3,862 | 13,011 | ||||||||||||||||||
Purchases of redeemable non-controlling interest | (20,521 | ) | (8,934 | ) | 8,145 | (12,073 | ) | (16,061 | ) | (30,204 | ) | |||||||||||||
Acquired interest | 11,297 | 6,230 | 0 | 11,007 | 26,746 | 39,862 | ||||||||||||||||||
Reduction of non-controlling interest due to sale of USPH partnership interest | 0 | (6,132 | ) | 0 | ||||||||||||||||||||
Sales of redeemable non-controlling interest - temporary equity | 1,133 | 3,120 | 0 | |||||||||||||||||||||
Notes receivable related to sales of redeemable non-controlling interest - temporary equity | (1,006 | ) | (2,870 | ) | (142 | ) | ||||||||||||||||||
Adjustments in notes receivable related to the the sales of redeemable non-controlling interest - temporary equity | 283 | 0 | 0 | |||||||||||||||||||||
Other | 0 | 62 | 0 | |||||||||||||||||||||
Contributed capital | - | 231 | - | |||||||||||||||||||||
Sales of redeemable non-controlling interest | 5,012 | 1,982 | 982 | |||||||||||||||||||||
Changes in notes receivable related to redeemable non-controlling interest | (3,091 | ) | (1,901 | ) | (914 | ) | ||||||||||||||||||
Adjustments in notes receivables related to the sales of redeemable non-controlling interest | - | 594 | 186 | |||||||||||||||||||||
Ending balance | $ | 132,340 | $ | 137,750 | $ | 133,943 | $ | 174,828 | $ | 167,515 | $ | 155,262 |
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 |
As of the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
(In thousands) | ||||||||||||
Contractual time period has lapsed but holder’s employment has not terminated | $ | 96,876 | $ | 75,688 | $ | 80,781 | ||||||
Contractual time period has not lapsed and holder’s employment has not terminated | 77,952 | 91,827 | 74,481 | |||||||||
Holder’s employment has terminated and contractual time period has expired | - | - | - | |||||||||
Holder’s employment has terminated and contractual time period has not expired | - | - | - | |||||||||
$ | 174,828 | $ | 167,515 | $ | 155,262 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||
Beginning balance | $ | 317,676 | $ | 293,525 | ||||
Goodwill acquired | 28,540 | 31,330 | ||||||
Goodwill related to partnership interest sold | 0 | (7,325 | ) | |||||
Goodwill derecognition (write-off) related to closed clinics | (1,859 | ) | 0 | |||||
Goodwill adjustments for purchase price allocation of businesses acquired in prior year | 1,289 | 146 | ||||||
Ending balance | $ | 345,646 | $ | 317,676 |
For the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands) | ||||||||
Beginning balance | $ | 494,101 | $ | 434,679 | ||||
Acquisitions | 28,083 | 72,674 | ||||||
Adjustments for purchase price allocation of businesses acquired in prior year | 3,187 | (4,140 | ) | |||||
Impairment of goodwill | (15,800 | ) | (9,112 | ) | ||||
Ending balance | $ | 509,571 | $ | 494,101 |
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 |
As of the Year Ended | ||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Carrying Amount | Gross Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Customer and referral relationships | $ | 93,658 | $ | (30,414 | ) | $ | 63,244 | $ | 86,974 | $ | (23,736 | ) | $ | 63,238 | ||||||||||
Tradenames | 44,573 | - | 44,573 | 43,373 | - | 43,373 | ||||||||||||||||||
Non-compete agreements | 9,459 | (7,594 | ) | 1,865 | 9,143 | (6,999 | ) | 2,144 | ||||||||||||||||
$ | 147,690 | $ | (38,008 | ) | $ | 109,682 | $ | 139,490 | $ | (30,735 | ) | $ | 108,755 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||
Referral relationships | $ | 2,845 | $ | 2,307 | $ | 2,161 | ||||||
Non-compete agreements | 569 | 708 | 616 | |||||||||
$ | 3,414 | $ | 3,015 | $ | 2,777 |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
(In thousands) | ||||||||||||
Customer and referral relationships | $ | 6,678 | $ | 5,974 | $ | 3,240 | ||||||
Non-compete agreements | 595 | 549 | 458 | |||||||||
$ | 7,273 | $ | 6,523 | $ | 3,698 |
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 |
For the Year Ended December 31, | Customer and Referral Relationships | Non-Compete Agreements | ||||||
(In thousands) | ||||||||
2024 | $ | 6,967 | $ | 599 | ||||
2025 | 6,823 | 533 | ||||||
2026 | 6,356 | 393 | ||||||
2027 | 6,192 | 232 | ||||||
2028 | 5,923 | 102 | ||||||
Thereafter | $ | 30,983 | $ | 6 |
As of the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands) | ||||||||
Salaries and related costs | $ | 25,641 | $ | 22,912 | ||||
Credit balances due to patients and payors | 8,847 | 8,094 | ||||||
Group health insurance claims | 2,301 | 1,666 | ||||||
Federal income taxes payable | 1,006 | - | ||||||
Contingency payable | 12,285 | 620 | ||||||
Other property taxes payable | 355 | 277 | ||||||
Interest payable | 235 | 273 | ||||||
Closure costs | 231 | 243 | ||||||
Other | 4,443 | 3,328 | ||||||
$ | 55,344 | $ | 37,413 |
As of the Year Ended | ||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||
Principal Amount | Unamortized Debt Issuance Cost | Net Debt | Principal Amount | Unamortized Debt Issuance Cost | Net Debt | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Term Facility | $ | 144,375 | $ | (1,468 | ) | $ | 142,907 | $ | 148,125 | $ | (1,861 | ) | $ | 146,264 | ||||||||||
Revolving Facilitiy | - | - | - | 31,000 | - | 31,000 | ||||||||||||||||||
Other (1) | 3,775 | - | 3,775 | 6,430 | - | 6,430 | ||||||||||||||||||
Total debt | 148,150 | (1,468 | ) | 146,682 | 185,555 | (1,861 | ) | 183,694 | ||||||||||||||||
Less: Current portion of long-term debt | 8,111 | (420 | ) | 7,691 | 8,271 | (408 | ) | 7,863 | ||||||||||||||||
Long-term debt, net of current portion | $ | 140,039 | $ | (1,048 | ) | $ | 138,991 | $ | 177,284 | $ | (1,453 | ) | $ | 175,831 |
December 31, 2020 | December 31, 2019 | |||||||
Salaries and related costs | $ | 24,646 | $ | 19,340 | ||||
Credit balances due to patients and payors | 5,756 | 4,303 | ||||||
Group health insurance claims | 2,113 | 2,277 | ||||||
Closure costs | 1,333 | 116 | ||||||
Federal income taxes payable | 5,715 | 0 | ||||||
MAAPP funds payable | 14,054 | 0 | ||||||
Deferred employer payroll taxes - CARES ACT | 4,170 | 0 | ||||||
Other | 1,959 | 4,819 | ||||||
Total | $ | 59,746 | $ | 30,855 |
December 31, 2020 | December 31, 2019 | |||||||
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 | ||||||
$ | 21,495 | $ | 51,089 | |||||
Less current portion | (4,899 | ) | (728 | ) | ||||
Long term portion | $ | 16,596 | $ | 50,361 |
1) | Revolving Facility: $175 million, five-year, revolving credit facility (“Revolving Facility”), which includes a $12 million sublimit for the issuance of standby letters of credit and a $15 million sublimit for swingline loans (each, a “Swingline Loan”). |
2) | Term Facility: $150 million term loan facility (the “Term Facility”). The Term Facility amortizes in quarterly installments of: (a) 0.625% in each of the firsttwo years, (b) 1.250% in the third and fourth year, and (c) 1.875% in the fifth year of the Credit Agreement. The remaining outstanding principal balance of all term loans is due on the maturity date. |
For the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands) | ||||||||
Net income | $ | 37,220 | $ | 43,407 | ||||
Other comprehensive (loss) gain | ||||||||
Unrealized (loss) gain on cash flow hedge | (1,642 | ) | 5,378 | |||||
Tax effect at statutory rate (federal and state) | 420 | (1,374 | ) | |||||
Comprehensive income | $ | 35,998 | $ | 47,411 | ||||
Comprehensive income attributable to non-controlling interest | (8,981 | ) | (11,249 | ) | ||||
Comprehensive income attributable to USPH shareholders | 27,017 | 36,162 |
As of the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands) | ||||||||
Other current assets | $ | 2,663 | $ | 2,858 | ||||
Other assets | $ | 1,073 | $ | 2,520 | ||||
3,736 | 5,378 |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
(In thousands) | ||||||||||||
Operating lease cost | $ | 38,559 | $ | 35,154 | $ | 32,021 | ||||||
Short-term lease cost | 1,353 | 1,049 | 1,160 | |||||||||
Variable lease cost | 8,912 | 6,287 | 7,057 | |||||||||
Total lease cost* | $ | 48,824 | $ | 42,490 | $ | 40,238 |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Operating lease cost | $ | 30,710 | $ | 30,225 | ||||
Short-term lease cost | 1,454 | 1,212 | ||||||
Variable lease cost | 5,752 | 6,074 | ||||||
Total lease cost* | $ | 37,916 | $ | 37,511 |
* | Sublease income was |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Cash paid for amounts included in the measurement of operating lease liabilities (in thousands) | $ | 30,307 | $ | 30,077 | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands)* | $ | 32,710 | $ | 113,222 |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
(In thousands) | ||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 39,813 | $ | 36,136 | $ | 33,192 | ||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 36,264 | $ | 40,502 | $ | 46,088 |
Fiscal Year | Amount | |||
2021 | $ | 29,819 | ||
2022 | 23,861 | |||
2023 | 17,787 | |||
2024 | 11,487 | |||
2025 and therafter | 12,294 | |||
Total lease payments | $ | 95,248 | ||
Less: imputed interest | 5,751 | |||
Total operating lease liabilities | $ | 89,497 |
Fiscal Year | Amount (In thousands) | |||
2024 | $ | 38,809 | ||
2025 | 30,628 | |||
2026 | 22,845 | |||
2027 | 15,275 | |||
2028 and thereafter | 13,174 | |||
Total lease payments | $ | 120,731 | ||
Less: imputed interest | 8,826 | |||
Total operating lease liabilities | $ | 111,905 |
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 | % |
As of the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
Weighted-average remaining lease term | 3.9 years | 4.1 Years | 4.2 Years | |||||||||
Weighted-average discount rate | 4.0 | % | 2.9 | % | 2.8 | % |
December 31, 2020 | December 31, 2019 | |||||||
Deferred tax assets: | ||||||||
Compensation | $ | 1,865 | $ | 1,964 | ||||
Allowance for credit losses | 396 | 514 | ||||||
Acquired net operating losses | 558 | 840 | ||||||
Lease obligations - including closed clinics | 23,819 | 21,445 | ||||||
Deferred tax assets | $ | 26,638 | $ | 24,763 | ||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | $ | (12,650 | ) | $ | (13,195 | ) | ||
Operating lease right-of-use assets | (21,419 | ) | (21,416 | ) | ||||
Other | (348 | ) | (223 | ) | ||||
Deferred tax liabilities | (34,417 | ) | (34,834 | ) | ||||
Net deferred tax liability | $ | (7,779 | ) | $ | (10,071 | ) |
As of the Year Ended | ||||||||
December 31, 2023 | December 31, 2022 | |||||||
(In thousands) | ||||||||
Deferred tax assets: | ||||||||
Compensation | $ | 1,680 | $ | 1,464 | ||||
Allowance for credit losses | 574 | 605 | ||||||
Lease obligations - including closed clinics | 28,592 | 28,525 | ||||||
Deferred tax assets | $ | 30,846 | $ | 30,594 | ||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | $ | (27,290 | ) | $ | (23,836 | ) | ||
Operating lease right-of-use assets | (26,427 | ) | (26,318 | ) | ||||
Gain on cash flow hedge | (955 | ) | (1,373 | ) | ||||
Change in revaluation of put-right liability | (586 | ) | - | |||||
Other | (403 | ) | (370 | ) | ||||
Deferred tax liabilities | (55,661 | ) | (51,897 | ) | ||||
Net deferred tax liabilities | $ | (24,815 | ) | $ | (21,303 | ) |
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||||||
U. S. tax at statutory rate | $ | 10,125 | 21.0% | $ | 11,274 | 21.0% | $ | 9,710 | 21.0% | |||||||
State income taxes, net of federal benefit | 1,956 | 3.9% | 2,059 | 3.8% | 1,722 | 3.7% | ||||||||||
Excess equity compensation deduction | (99) | 0.0% | (871) | -1.6 % | (806) | -1.7 % | ||||||||||
Non-deductible expenses | 1,040 | 2.1% | 1,185 | 2.2% | 743 | 1.6% | ||||||||||
$ | 13,022 | 27.0% | $ | 13,647 | 25.4% | $ | 11,369 | 24.6% |
For the Year Ended | ||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
U. S. tax at statutory rate | $ | 8,483 | 21.0 | % | $ | 9,307 | 21.0 | % | $ | 11,782 | 21.0 | % | ||||||||||||
State income taxes, net of federal benefit | 2,135 | 5.3 | % | 2,079 | 4.7 | % | 2,478 | 4.4 | % | |||||||||||||||
Shortfall (excess) equity compensation deduction | 123 | 0.3 | % | 149 | 0.3 | % | (246 | ) | -0.4 | % | ||||||||||||||
Non-deductible expenses | 710 | 1.8 | % | 629 | 1.4 | % | 1,258 | 2.2 | % | |||||||||||||||
Return to provision adjustments | 705 | 1.7 | % | - | 0.0 | % | - | 0.0 | % | |||||||||||||||
$ | 12,156 | 30.1 | % | $ | 12,164 | 27.4 | % | $ | 15,272 | 27.2 | % |
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||
Current: | ||||||||||||
Federal | $ | 10,506 | $ | 6,523 | $ | 5,357 | ||||||
State | 2,774 | 2,473 | 1,199 | |||||||||
Total current | 13,280 | 8,996 | 6,556 | |||||||||
Deferred: | ||||||||||||
Federal | (38 | ) | 3,730 | 3,771 | ||||||||
State | (220 | ) | 921 | 1,042 | ||||||||
Total deferred | (258 | ) | 4,651 | 4,813 | ||||||||
Total income tax provision | $ | 13,022 | $ | 13,647 | $ | 11,369 |
For the Year Ended | ||||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||
(In Thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 6,996 | $ | (770 | ) | $ | 7,477 | |||||
State | 512 | 518 | 2,107 | |||||||||
Total current | 7,508 | (252 | ) | 9,584 | ||||||||
Deferred: | ||||||||||||
Federal | 3,819 | 9,933 | 4,866 | |||||||||
State | 829 | 2,483 | 822 | |||||||||
Total deferred | 4,648 | 12,416 | 5,688 | |||||||||
Total income tax provision | $ | 12,156 | $ | 12,164 | $ | 15,272 |
December 31, | December 31, | December 31, | For the Year Ended December 31, | |||||||||||||||||||||
2020 | 2019 | 2018 | 2023 | 2022 | 2021 | |||||||||||||||||||
(in thousands) | (in thousands) | (In thousands) | ||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||
Physical therapy operations | $ | 383,770 | $ | 444,507 | $ | 428,445 | $ | 526,548 | $ | 476,092 | $ | 451,122 | ||||||||||||
Industrial injury prevention services | 39,199 | 37,462 | 25,466 | 78,254 | 77,052 | 43,900 | ||||||||||||||||||
Total Company | $ | 422,969 | $ | 481,969 | $ | 453,911 | $ | 604,802 | $ | 553,144 | $ | 495,022 | ||||||||||||
Operating Costs: | ||||||||||||||||||||||||
Salaries and related costs: | ||||||||||||||||||||||||
Physical therapy operations | $ | 302,765 | $ | 272,360 | $ | 251,256 | ||||||||||||||||||
Industrial injury prevention services | 50,625 | 46,831 | 27,213 | |||||||||||||||||||||
Total salaries and related costs | $ | 353,390 | $ | 319,191 | $ | 278,469 | ||||||||||||||||||
Rent supplies, contract labor and other: | ||||||||||||||||||||||||
Physical therapy operations | $ | 112,547 | $ | 102,114 | $ | 88,073 | ||||||||||||||||||
Industrial injury prevention services | 11,184 | 14,267 | 5,993 | |||||||||||||||||||||
Total rent, supplies, contract labor and other | $ | 123,731 | $ | 116,381 | $ | 94,066 | ||||||||||||||||||
Provision for credit losses: | ||||||||||||||||||||||||
Physical therapy operations | $ | 6,129 | $ | 5,517 | $ | 5,249 | ||||||||||||||||||
Industrial injury prevention services | 43 | 31 | 56 | |||||||||||||||||||||
Total provision for credit losses | $ | 6,172 | $ | 5,548 | $ | 5,305 | ||||||||||||||||||
Total Company | $ | 483,293 | $ | 441,120 | $ | 377,840 | ||||||||||||||||||
Gross profit: | ||||||||||||||||||||||||
Physical therapy operations (excluding closure costs) | $ | 88,295 | $ | 104,120 | $ | 96,463 | ||||||||||||||||||
Physical therapy operations | $ | 105,064 | $ | 96,057 | $ | 106,488 | ||||||||||||||||||
Industrial injury prevention services | 10,086 | 8,379 | 5,192 | 16,445 | 15,967 | 10,694 | ||||||||||||||||||
$ | 98,381 | $ | 112,499 | $ | 101,655 | |||||||||||||||||||
Physical therapy operations - closure costs | 3,931 | 25 | (8 | ) | ||||||||||||||||||||
Gross profit | $ | 94,450 | $ | 112,474 | $ | 101,663 | ||||||||||||||||||
Total Company | $ | 121,509 | $ | 112,024 | $ | 117,182 | ||||||||||||||||||
Total Assets: | ||||||||||||||||||||||||
Physical therapy operations | $ | 550,181 | $ | 518,027 | $ | 421,474 | $ | 857,274 | $ | 708,662 | $ | 587,801 | ||||||||||||
Industrial injury prevention services | 44,180 | 42,818 | 21,692 | 139,964 | 149,492 | 161,625 | ||||||||||||||||||
Total Company | $ | 594,361 | $ | 560,845 | $ | 443,166 | $ | 997,238 | $ | 858,154 | $ | 749,426 |
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 | ||||||||||||||||||
Amended 2003 Plan | 2,100,000 | 1,106,977 | 0 | 778,300 | 0 | 224,760 | ||||||||||||||||||
2,700,000 | 1,523,379 | 0 | 918,091 | 0 | 232,535 |
Year Granted | Number of Shares | Weighted Average Fair Value Per Share | ||||
2020 | 86,982 | $ | 104.69 | |||
2019 | 91,682 | $ | 104.85 | |||
2018 | 93,801 | $ | 78.63 |
Weighted Average Fair | ||||||||
Year Granted | Number of Shares | Value Per Share | ||||||
2023 | 73,384 | $ | 102.79 | |||||
2022 | 95,316 | $ | 100.08 | |||||
2021 | 60,317 | $ | 131.29 |
Year Cancelled | Number of Shares | Weighted Average Fair Value Per Share | ||||
2020 | 10,037 | $ | 102.52 | |||
2019 | 1,578 | $ | 87.88 | |||
2018 | 3,867 | $ | 59.51 |
Weighted Average Fair | ||||||||
Year Cancelled | Number of Shares | Value Per Share | ||||||
2023 | 4,086 | $ | 103.99 | |||||
2022 | 5,180 | $ | 109.42 | |||||
2021 | 439 | $ | 113.80 |
Year Ended | ||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||
Computation of earnings per share - USPH shareholders: | ||||||||||||
Net income attributable to USPH shareholders | $ | 35,194 | $ | 40,039 | $ | 34,873 | ||||||
Credit (charges) to retained earnings: | ||||||||||||
Revaluation of redeemable non-controlling interest | (4,632 | ) | (11,893 | ) | (24,770 | ) | ||||||
Tax effect at statutory rate (federal and state) of 26.25% | 1,216 | 3,121 | 6,502 | |||||||||
$ | 31,778 | $ | 31,267 | $ | 16,605 | |||||||
Earnings per share (basic and diluted) | $ | 2.48 | $ | 2.45 | $ | 1.31 | ||||||
Shares used in computation: | ||||||||||||
Basic and diluted earnings per share - weighted-average shares | 12,835 | 12,756 | 12,666 |
ITEM 9. | CHANGES IN |
ITEM 9A. | CONTROLS AND |
ITEM 9C. | DISCLOSURE REGARDING FOREIGN JURISDICATIONS THAT PREVENT INSPECTION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE |
ITEM 11. | EXECUTIVE |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT |
1. | Financial Statements |
2. | Financial Statement Schedules |
3. | Exhibits |
Number | | Description |
Underwriting Agreement, dated May 24, 2023, by and between U.S. Physical Therapy, and BofA Securities, Inc. and J.P. Morgan Securities LLC., as representatives of the several underwriters named therein. [incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 25, 2023.] | ||
| 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.] | |
First Amendment to U.S. Physical Therapy, Inc. | ||
| 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]. |
Number | | Description |
| ||
| 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.] | |
| ||
| 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 |
Number | Description | |
| ||
| 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] | |
| ||
| 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 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 | |
| ||
| 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]. | |
| ||
| 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.] | |
| ||
U. S. Physical Therapy, Inc. Objective Long-Term Incentive Plan for Senior Management for | ||
U. S. Physical Therapy, Inc. Discretionary Long-Term Incentive Plan for Senior Management for 2021, effective March 17, 2021 [incorporated by reference to Exhibit 99.2 of the Current Report on Form 8-K filed by U.S. Physical Therapy, Inc. on March 16, 2021] | ||
Third Amended and Restated Credit Agreement dated as of June 17, 2022 among the Company, as the borrower, and Bank of America, N.A., as Administrative Agent, Regions Capital Markets as Syndication Agent, BofA Securities Inc. and Regions Capital Markets as Joint Load Arrangers, BofA Securities Inc., as Sole Bookrunner and the lenders named therein. [incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 10-Q filed with the SEC on June 21, 2022] | ||
Employment Agreement by and between the Company and Rick Binstein entered into on March 23, 2022 [incorporated by reference to Exhibit 10.1 to the Company Current Report on Form 8-K filed with the SEC on March | ||
U. S. Physical Therapy, Inc. Objective Long-Term Incentive Plan for Senior Management for 2022, effective March 14, 2022 [incorporated by reference to Exhibit 99.1 of the Current Report on Form 8-K filed by U.S. Physical Therapy, Inc. on March 14, 2022] | ||
U. S. Physical Therapy, Inc. Discretionary Long-Term Incentive Plan for Senior Management for | ||
U. S. Physical Therapy, Inc. Objective Cash/RSA Bonus Plan for Senior Management for | ||
U. S. Physical Therapy, Inc. Discretionary Cash/RSA Bonus Plan for Senior Management for |
U. S. Physical Therapy, Inc. Objective Long-Term Incentive Plan for Senior Management for 2023, effective March 2, 2023 [incorporated by reference to Exhibit 99.1 of the Current Report on Form 8-K filed by U.S. Physical Therapy, Inc. on March 8, 2023] | ||
U. S. Physical Therapy, Inc. Discretionary Long-Term Incentive Plan for Senior Management for 2023, effective March 2, 2023 [incorporated by reference to Exhibit 99.2 of the Current Report on Form 8-K filed by U.S. Physical Therapy, Inc. on March 8, 2023] | ||
U. S. Physical Therapy, Inc. Objective Cash/RSA Bonus Plan for Senior Management for 2023, effective March 2, 2023 [incorporated by reference to Exhibit 99.3 of the Current Report on Form 8-K filed by U.S. Physical Therapy, Inc. on March 8, 2023] | ||
U. S. Physical Therapy, Inc. Discretionary Cash/RSA Bonus Plan for Senior Management for 2023, effective March 2, 2023 [incorporated by reference to Exhibit 99.4 of the Current Report on Form 8-K filed by U.S. Physical Therapy, Inc. on March 8, 2023] | ||
| 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.] | |
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 Periodic Report of the Chief Executive Officer and Chief Financial Officer | |
| ||
| U.S. Physical Therapy Compensation Clawback Policy | |
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, 2023: | ||||||||||||||||||||||||||||||||||||||||
Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses(1) | $ | 2,698 | $ | 4,623 | 0 | $ | 5,313 | (2) | $ | 2,008 | $ | 2,829 | $ | 6,172 | - | $ | 6,265 | (2) | $ | 2,736 | ||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2019: | ||||||||||||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2022: | ||||||||||||||||||||||||||||||||||||||||
Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 2,672 | $ | 4,858 | 0 | $ | 4,832 | (2) | $ | 2,698 | $ | 2,768 | $ | 5,548 | - | $ | 5,487 | (2) | $ | 2,829 | ||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2018: | ||||||||||||||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, 2021: | ||||||||||||||||||||||||||||||||||||||||
Reserves and allowances deducted from asset accounts: | ||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | $ | 2,273 | $ | 4,603 | 0 | $ | 4,204 | (2) | $ | 2,672 | $ | 2,008 | $ | 5,305 | - | $ | 4,545 | (2) | $ | 2,768 |
(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. |
ITEM 16. | FORM 10-K SUMMARY |
U.S. PHYSICAL THERAPY, INC. | ||
(Registrant) | ||
By: | /s/ Carey Hendrickson | |
Carey Hendrickson Chief Financial Officer | ||
(Principal Financial Officer and Principal Accounting Officer) | ||
/s/ Carey Hendrickson | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | February 29, 2024 |
Carey Hendrickson |
/s/ Chris J. Reading | Chief Executive Officer, President and Director (Principal Executive Officer) | ||
Chris J. Reading | |||
/s/ Edward L. Kuntz | Chairman of the Board | ||
Edward L. Kuntz | |||
/s/ Bernard A. Harris | Director | ||
Dr. Bernard A. Harris, Jr. | |||
/s/ Kathleen A. Gilmartin | Director | ||
Kathleen A. Gilmartin | |||
/s/ Anne Motsenbocker | Director | February 29, 2024 | |
Anne Motsenbocker | |||
/s/ Reginald E. Swanson | Director | ||
Reginald E. Swanson | |||
/s/ Clayton K. Trier | Director | ||
Clayton K. Trier |
/s/ Nancy J. Ham | Director | February 29, 2024 |
Nancy J. Ham |