Why Supernus Pharmaceuticals (SUPN) Stock Is Up Today
Shares of specialty pharmaceutical company Supernus Pharmaceuticals (NASDAQ:SUPN) jumped 3.1% in the morning session after Cantor Fitzgerald upgraded the stock to Overweight from Neutral and raised its price target to $42 from $36. The upgrade followed positive developments in the company's planned acquisition of Sage Therapeutics. Supernus announced that the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act for the deal had expired. The expiration of this period, a requirement for major mergers and acquisitions in the U.S., removed a key regulatory hurdle, allowing the transaction to proceed. The tender offer for Sage shares was set to expire on July 30, 2025, after which Supernus planned to complete the merger. This acquisition was expected to enhance Supernus's product portfolio with Sage's innovative treatments, a move that likely bolstered analyst confidence.
After the initial pop the shares cooled down to $34.30, up 2.5% from previous close.
Is now the time to buy Supernus Pharmaceuticals? Access our full analysis report here, it's free.
What Is The Market Telling Us
Supernus Pharmaceuticals's shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 3.2% as several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively. Additionally, some pharmaceutical and biotech companies experienced sharp drops following unfavorable news; for instance, Sarepta Therapeutics plunged after a report indicated another patient death tied to its experimental gene therapy, and GSK's blood cancer drug dosage was voted against by the FDA advisory committee. Broader market sentiment, including concerns about rising costs and inadequate pricing for 2025 plans among health insurers, also contributed to the downward pressure on healthcare equities.
Supernus Pharmaceuticals is down 5.8% since the beginning of the year, and at $34.30 per share, it is trading 14.3% below its 52-week high of $40 from February 2025. Investors who bought $1,000 worth of Supernus Pharmaceuticals's shares 5 years ago would now be looking at an investment worth $1,459.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
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HOUSTON--(BUSINESS WIRE)--U.S. Physical Therapy, Inc. ('USPH' or the 'Company') (NYSE: USPH), a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services, today reported results for the three and six months ended June 30, 2025. FINANCIAL HIGHLIGHTS Adjusted EBITDA (1), a non-Generally Accepted Accounting Principles ('GAAP') measure, was $26.9 million for the three months ended June 30, 2025 ('2025 Second Quarter'), an increase of $4.7 million, or 21.4%, from $22.1 million for the three months ended June 30, 2024 ('2024 Second Quarter') primarily driven by higher patient visits. Net income attributable to USPH's shareholders ('USPH Net Income'), a GAAP measure, was $12.4 million for the 2025 Second Quarter compared to $7.5 million for the 2024 Second Quarter. In accordance with GAAP, the revaluation of noncontrolling interest, net of taxes, is not included in net income but is charged directly to retained earnings. However, this change is included in the computation of earnings per share. Earnings per share was $0.58 for the 2025 Second Quarter compared to $0.47 for the 2024 Second Quarter. Operating Results (1), a non-GAAP measure, was $12.4 million for the 2025 Second Quarter compared to $11.0 million for the 2024 Second Quarter, an increase of 11.8% over the same period. On a per share basis, Operating Results was $0.81 for the 2025 Second Quarter compared to $0.73 for the 2024 Second Quarter. Total revenue from physical therapy operations for the 2025 Second Quarter increased $24.8 million, or 17.3%, to $168.3 million. Net rate per patient visit for the 2025 Second Quarter was $105.33 up from $105.05 for the 2024 Second Quarter, despite the approximate 2.9% Medicare rate reduction which went into effect on January 1, 2025. Total patient visits were 1,558,756 for the 2025 Second Quarter, a 16.7% increase from the 2024 Second Quarter. Total patient visits includes 28,493 home-care visits, which the Company will break out separately each period going forward. For the six months ended June 30, 2025, the Company had 3,002,561 total patient visits, which includes 51,436 home-care visits. There were no home-care visits in the first six months of 2024. Average daily patient visits per clinic, which does not include home-care visits, was an all-time high of 32.7 for the 2025 Second Quarter compared to 30.6 for the 2024 Second Quarter. Industrial injury prevention services ('IIP') revenue was $29.1 million for the 2025 Second Quarter, an increase of 22.6% as compared to the 2024 Second Quarter. IIP gross profit was $6.4 million for the 2025 Second Quarter, an increase of $1.3 million, or 25.8%, from $5.1 million for the 2024 Second Quarter. The Company added six clinics and closed four clinics in the 2025 Second Quarter bringing its total owned and/or managed clinic count to 768 as of June 30, 2025, compared to 722 as of June 30, 2024. On April 30, 2025, the Company announced the acquisition of an outpatient home-care physical and speech therapy practice through its 50%-owned subsidiary, MSO Metro, LLC. MSO Metro LLC. acquired 80% of equity interests of the practice, with the original practice owners retaining 20% of equity interests. The practice currently generates approximately $2.1 million in annual revenue. On July 31, 2025, the Company acquired a 60% equity interest in a three-clinic practice with the practice owners retaining a 40% equity interest. The business currently generates $5.3 million in annual revenue and approximately 28,000 in annual visits. The Company's Board of Directors declared a quarterly dividend of $0.45 per share payable on September 12, 2025, to shareholders of record on August 22, 2025. Management increased its guidance for Adjusted EBITDA for full-year 2025 to a range of $93.0 million to $97.0 million. See '2025 Earnings Guidance' below for more information. MANAGEMENT'S COMMENTS Chris Reading, Chief Executive Officer, said, 'Volumes in our physical therapy business remain at record levels while we execute our plan for cost rationalization and improved efficiencies. Our injury prevention business continues a strong growth path, both organically and through carefully added acquisitions, which have broadened our service offerings and increased our exposure to new industry verticals. As a result of our efforts and expected progress we have updated our earnings guidance for the year.' 2025 Second Quarter Versus 2024 Second Quarter Additional supplemental tables of financial and performance metrics are presented on page 16 of this release. Physical Therapy Operations _______________________ (1) See Glossary of Terms - Revenue Metrics for definitions. (2) Includes six clinics added during the 2025 Second Quarter, 14 clinics added during the three months ended March 31, 2025 ("2025 First Quarter") and 96 clinics added during the year ended December 31, 2024. (Owned) (3) Includes three clinics closed during the 2025 Second Quarter, seven clinics closed in the 2025 First Quarter and 45 clinics closed during the year ended December 31, 2024. (Owned) (4) Includes revenues from management contracts. (5) Includes costs from management contracts. (6) Excludes $0.2 million of certain incentive costs related to the Metro acquisition. Please refer to the reconciliation of non-GAAP measures to the most directly comparable GAAP measure on page 15. (7) Not meaningful. Expand Net revenue from physical therapy operations increased $24.8 million, or 17.3%, to $168.3 million for the 2025 Second Quarter from $143.5 million for the 2024 Second Quarter. This growth was due to the increase in visits from the 51 net clinics added since the comparable prior year period and an increase in net rate per patient visit, which reflects the Company's strategic priority of increasing reimbursement rates through contract negotiations with commercial and other payors and the addition of acquisitions with accretive net rate per patient visit. Net rate per patient visit for the 2025 Second Quarter was $105.33 up from $105.05 for the 2024 Second Quarter, despite the approximate 2.9% Medicare rate reduction which went into effect on January 1, 2025. Operating costs from physical therapy operations increased $18.4 million, or 16.0%, to $133.1 million for the 2025 Second Quarter from $114.7 million for the 2024 Second Quarter primarily driven by the 51 net clinics added since the comparable prior year period. Salaries and related costs per visit was $60.08 for the 2025 Second Quarter compared to $59.66 for the 2024 Second Quarter. Total operating costs per visit was $83.95 compared to $84.46 in the prior year quarter, as higher visit volumes did not result in a proportional increase in fixed costs. Gross profit from physical therapy operations for the 2025 Second Quarter was $35.2 million with a gross profit margin of 20.9% compared to $28.8 million with a gross profit margin of 20.1% for the 2024 Second Quarter. Excluding certain incentive costs related to the Metro acquisition of $0.2 million, the adjusted gross profit margin was 21.1% for the 2025 Second Quarter. Industrial Injury Prevention Services IIP revenue increased $5.3 million, or 22.6%, to $29.1 million for the 2025 Second Quarter as compared to $23.7 million for the 2024 Second Quarter. Gross profit from IIP operations for the 2025 Second Quarter increased $1.3 million, or 25.8%, to $6.4 million from $5.1 million for the 2024 Second Quarter. Gross profit margin from IIP operations was 22.0% for the 2025 Second Quarter compared to 21.4% for the 2024 Second Quarter. Excluding the IIP acquisition made in April 2024, IIP revenue increased by $4.0 million or 18.4% in the 2025 Second Quarter and gross profit increased $1.0 million, or 21.8% in the 2025 Second Quarter over the comparable prior year period. Corporate Office and Other Expenses Corporate office costs increased to $17.5 million for the 2025 Second Quarter from $14.2 million for the 2024 Second Quarter, primarily to support the larger number of clinics, as well as acquisition integration costs and costs associated with the implementation of a new financial and human resources system. Implementation costs associated with the new financial and human resources system are expected to continue through the end of 2026. As a ratio to net revenue, corporate office costs was 8.9% for the 2025 Second Quarter compared to 8.5% for the 2024 Second Quarter. Excluding the acquisition integration costs and the costs associated with the implementation of the new financial and human resources system of $0.3 million, corporate office costs was 8.7% of net revenue for the 2025 Second Quarter. The Company revalued contingent consideration related to certain acquisitions and recognized a net gain (a decrease in the related liabilities) of $0.8 million for the 2025 Second Quarter compared to a net loss (an increase in the related liabilities) of $4.0 million for the 2024 Second Quarter. Operating income was $24.9 million for the 2025 Second Quarter compared to $15.6 million for the 2024 Second Quarter. Excluding the impact of change in value of contingent consideration in the 2025 Second Quarter of $0.8 million, and the 2024 Second Quarter of $4.0 million, operating income increased to $24.1 million for the 2025 Second Quarter from $19.6 million in the 2024 Fourth Quarter. Interest expense increased by $0.4 million to $2.4 million for the 2025 Second Quarter compared to $2.0 million for the 2024 Second Quarter due to a higher average outstanding balance on our revolving credit facility for the 2025 Second Quarter. The interest rate associated with borrowings on the Company's credit facilities was 5.1% for the 2025 Second Quarter and 4.7% for the 2024 Second Quarter, with an all-in-effective interest rate (including all associated costs), of 5.6% and 5.4% over the same periods, respectively. Interest income was less than $0.1 million during the 2025 Second Quarter compared to $1.1 million for the 2024 Second Quarter as the cash on the balance sheet at the end of the 2024 Second Quarter has since been deployed to fund acquisitions. The Company revalued a put-right liability related to the future purchase of an IIP business and recognized a net non-cash expense (an increase in the related liability) of $0.3 million for the 2025 Second Quarter compared to $0.2 million for the 2024 Second Quarter (an increase in the related liability). The provision for income taxes was $4.9 million for the 2025 Second Quarter compared to $3.1 million during the 2024 Second Quarter while the effective tax rate was 28.5% and 29.1% over the same periods, respectively. USPH Net Income and Non-GAAP Measures Net income attributable to non-controlling interest (temporary and permanent) was $5.3 million for the 2025 Second Quarter compared to $4.2 million for the 2024 Second Quarter. USPH Net Income was $12.4 million for the 2025 Second Quarter compared to $7.5 million for the 2024 Second Quarter. In accordance with GAAP, the revaluation of redeemable noncontrolling interest, net of taxes, is not included in net income but is charged directly to retained earnings; however, this change is included in the computation of earnings per share. Earnings per share was $0.58 for the 2025 Second Quarter compared to $0.47 for the 2024 Second Quarter. Non-GAAP Adjusted EBITDA (1) was $26.9 million for the 2025 Second Quarter, an increase of $4.7 million or 21.4%, from $22.1 million for the 2024 Second Quarter. Non-GAAP Operating Results (1) was $12.4 million, or $0.81 per share, for the 2025 Second Quarter compared to $11.0 million, or $0.73 per share, for the 2024 Second Quarter. 2025 Six Months Versus 2024 Six Months Total net revenue for the six months ended June 30, 2025 ('2025 Six Months') increased $58.3 million, or 18.0%, to $381.1 million from $322.9 million for the six months ended June 30, 2024 ('2024 Six Months') while operating costs increased $47.8 million, or 18.4%, to $308.4 million from $260.6 million over the same periods, respectively. Gross profit for the 2025 Six Months was $72.7 million, or 19.1% of net revenue, compared to $62.3 million for the 2024 Six Months, or 19.3% of net revenue. Revenues from physical therapy operations increased $46.8 million, or 16.8% in the 2025 Six Months versus the comparable prior year period due to increased volume from the 51 net new clinics added since the comparable prior year period as well as an increase in net rate per patient visit to $105.49 for 2025 Six Months from $104.23 for 2024 Six Months. Gross profit from physical therapy operations increased $7.9 million, or 14.9%, to $60.7 million for the 2025 Six Months. Excluding certain incentive costs related to the Metro acquisition of $0.3 million, the adjusted gross profit margin was 18.8% for the 2025 Six Months. Revenues from IIP increased $11.5 million, or 25.5%, to $56.4 million for the 2025 Six Months versus the comparable prior year period. Gross profit from IIP operations increased $2.6 million, or 27.3%, to $12.0 million for the 2025 Six Months and the gross profit margin from IIP operations was 21.2% for the 2025 Six Months. Excluding the IIP acquisition made in April 2024, IIP revenue increased by $7.2 million or 16.7% in the 2025 Six Months and gross profit increased $1.9 million or 21.0% in the 2025 Six Months over the comparable prior year period. Corporate office costs were $33.7 million for the 2025 Six Months, compared to $28.3 million for the 2024 Six Months. As a percent of net revenue, corporate office costs were 8.8% for both periods. Excluding the acquisition integration costs and the costs associated with the implementation of the new financial and human resources system of $0.7 million, corporate office costs was 8.7% of net revenue for the 2025 Six Months. The Company revalued contingent consideration related to certain acquisitions and recognized a net gain (a decrease in the related liabilities) of $5.6 million for the 2025 Six Months compared to a net loss of $3.4 million for the 2024 Six Months (an increase in the related liabilities). Operating income was $44.6 million for the 2025 Six Months compared to $30.5 million for the 2024 Six Months. Excluding the impact of change in value of contingent consideration of $5.6 million for the 2025 Six Months and $3.4 million for the 2024 Six Months, operating income increased to $39.0 million for the 2025 Six Months from $33.9 million for the 2024 Six Months, an increase of 14.9%. Other expenses were $4.6 million for the 2025 Six Months compared to $0.9 million for the 2024 Six Months, with the increase primarily due to higher interest expense as a result of increased borrowings and lower interest income as the cash on the balance sheet during the 2024 Six Months has been deployed to fund acquisitions since that time. The provision for income tax was $8.8 million for the 2025 Six Months and $6.2 million for the 2024 Six Months. The effective tax rate was 28.3% and 28.6% over the same periods, respectively. USPH Net Income was $22.3 million for the 2025 Six Months as compared to $15.6 million for the 2024 Six Months while earnings per share was $1.38 for the 2025 Six Months compared to $0.93 for the 2024 Six Months. Non-GAAP Adjusted EBITDA increased $7.5 million to $46.4 million for the 2025 Six Months from $38.9 million for the 2024 Six Months while non-GAAP Operating Results increased $0.9 million to $19.7 million, or $1.30 per share, for the 2025 Six Months from $18.8 million, or $1.25 per share, for the 2024 Six Months. See pages 13 to 15 of this release for the definition and reconciliation of Adjusted EBITDA, Operating Results and other non-GAAP measures to the most directly comparable GAAP measure. For additional information on 2025 Six Months results, please refer to the Company's Quarterly Report on Form 10-Q which is expected to be filed with the Securities and Exchange Commission on August 8, 2025. BALANCE SHEET AND CASH FLOW Total cash and cash equivalents were $34.1 million as of June 30, 2025, compared to $41.4 million as of December 31, 2024, and $112.9 million as of June 30, 2024. The Company had $159.5 million in outstanding borrowings and $150.5 million in available credit under the Company's revolving facility as of June 30, 2025. This compares to $151.6 million of outstanding borrowings and $164.0 million in available credit under the Company's revolving facility as of December 31, 2024. RECENT ACQUISITIONS On April 30, 2025, the Company announced the acquisition of an outpatient home-care physical and speech therapy practice through its 50%-owned subsidiary, MSO Metro, LLC. MSO Metro LLC. acquired 80% of equity interests of the practice, with the original practice owners retaining 20% of equity interests. The practice currently generates approximately $2.1 million in annual revenue. On July 31, 2025, the Company acquired a 60% equity interest in a three-clinic practice with the practice owners retaining a 40% equity interest. The business currently generates $5.3 million in annual revenue and 28,000 in annual visits. The Company's strategy is to continue acquiring multi-clinic outpatient physical therapy practices and home-care physical and speech therapy practices, to develop outpatient physical therapy clinics as satellites in existing partnerships, and to continue acquiring companies that provide industrial injury prevention services. 2025 EARNINGS GUIDANCE Management raised its Adjusted EBITDA guidance for full year 2025 to a range of $93.0 million to $97.0 million based on the Company's strong year-to-date performance and management's confidence in its ability to continue to deliver solid results for its shareholders in the second half of 2025. The annual earnings guidance figures will not be updated unless there is a material development that causes management to believe that Adjusted EBITDA will be significantly outside the given range. QUARTERLY DIVIDEND The Company's Board of Directors declared a quarterly dividend of $0.45 per share payable on September 12, 2025, to shareholders of record on August 22, 2025. SHARE REPURCHASE PROGRAM The Company's Board of Directors approved a share repurchase program effective August 5, 2025. The program authorizes the repurchase by the Company of up to $25 million of its outstanding shares of common stock over the period ending on December 31, 2026. Under the share repurchase program, shares may be repurchased from time to time in the open market or negotiated transactions at prevailing market rates, or by other means in accordance with federal securities laws. The timing and amount of share repurchases under the share repurchase program, if any, will depend on several factors, including the Company's stock price performance, ongoing capital allocation priorities and general market conditions. CONFERENCE CALL INFORMATION U.S. Physical Therapy's management will host a conference call at 10:30 a.m. ET / 9:30 a.m. CT, on August 7, 2025, to discuss the Company's financial results for the three and six months ended June 30, 2025. Interested parties may participate in the call by dialing (800) 343-4136 (Primary) or (203) 518-9843 (Alternate) and conference ID of USPHQ225. Please call approximately 10 minutes before the call is scheduled to begin. To listen to the live call, go to the Company's website at at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, a playback of the conference call can be accessed until November 5, 2025, on the Company's website. FORWARD LOOKING STATEMENTS This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain forward-looking information relating to the financial condition, results of operations, plans, objectives, future performance and business of our Company. These statements (often using words such as 'believes', 'expects', 'intends', 'plans', 'appear', 'should' and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we expect. Included among such statements may be those relating to new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to: changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status; revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction; changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients; private third-party payors for our services may adopt payment policies that could limit our future revenue and profitability; compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply; compliance with state laws and regulations relating to the corporate practice of medicine and fee splitting, and associated fines and penalties for failure to comply ; competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets; the impact of future public health crises and epidemics/pandemics, such as was the case with the novel strain of COVID-19 and its variants; certain of our acquisition agreements contain put-rights related to a future purchase of significant equity interests in our subsidiaries or in a separate company; the impact of future vaccinations and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of operations; our debt and financial obligations could adversely affect our financial condition, our ability to obtain future financing and our ability to operate our business; changes as the result of government enacted national healthcare reform; the ability to control variable interest entities for which we do not have a direct ownership; business and regulatory conditions including federal and state regulations; governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs; revenue and earnings expectations; contingent consideration provisions in certain of our acquisition agreements, the value of which may impact future financial results; legal actions, which could subject us to increased operating costs and uninsured liabilities; general economic conditions, including but not limited to inflationary and recessionary periods; actual or perceived events involving banking volatility or limited liability, defaults or other adverse developments that affect the U.S or the international financial systems, may result in market wide liquidity problems which could have a material and adverse impact on our available cash and results of operations; our business depends on hiring, training, and retaining qualified employees; availability and cost of qualified physical therapists; competitive environment in the industrial injury prevention services business, which could result in the termination or non-renewal of contractual service arrangements and other adverse financial consequences for that service line; our ability to identify and complete acquisitions, and the successful integration of the operations of the acquired businesses; impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest (minority interests); maintaining our information technology systems with adequate safeguards to protect against cyber-attacks; a security breach of our or our third party vendors' information technology systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act; maintaining clients for which we perform management, industrial injury prevention related services, and other services, as a breach or termination of those contractual arrangements by such clients could cause operating results to be less than expected; maintaining adequate internal controls; maintaining necessary insurance coverage; availability, terms, and use of capital; and weather and other seasonal factors. Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. For additional information regarding these and other risks and uncertainties, that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to 'Risk Factors' in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ('SEC') on March 3, 3025 and any risk factors contained in subsequent quarterly and annual reports we file with the SEC. Our forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law. GLOSSARY OF TERMS – REVENUE METRICS Mature clinics are clinics (physical clinic locations and home-care business units) opened or acquired prior to January 1, 2024, and are still operating as of the balance sheet date. 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 periods presented. Patient visits is the number of unique patient visits during the periods presented for both physical clinic locations and home-care. Average daily visits per clinic per day is patient visits (excluding home-care 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 of clinics in operation during the periods presented. ABOUT U.S. PHYSICAL THERAPY, INC. Founded in 1990, U.S. Physical Therapy, Inc. owns and/or manages 774 outpatient physical therapy clinics in 44 states. USPH clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. USPH also has an industrial injury prevention business which provides onsite services for clients' employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments. More information about U.S. Physical Therapy, Inc. is available at The information included on that website is not incorporated into this press release. U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) June 30, 2025 December 31, 2024 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 34,086 $ 41,362 Patient accounts receivable, less provision for credit losses of $3,928 and $3,506, respectively 65,956 59,040 Accounts receivable - other 27,429 26,626 Other current assets 13,061 10,555 Total current assets 140,532 137,583 Fixed assets: Furniture and equipment 66,756 68,128 Leasehold improvements 55,218 51,105 Fixed assets, gross 121,974 119,233 Less accumulated depreciation and amortization (89,853 ) (87,093 ) Fixed assets, net 32,121 32,140 Operating lease right-of-use assets 137,248 133,936 Investment in unconsolidated affiliate 12,320 12,190 Goodwill 677,595 667,152 Other identifiable intangible assets, net 175,627 179,311 Other assets 4,157 5,155 Total assets $ 1,179,600 $ 1,167,467 Current liabilities: Accounts payable - trade $ 4,200 $ 5,936 Accrued expenses 65,436 59,513 Current portion of operating lease liabilities 41,038 39,835 Current portion of term loan and notes payable 8,168 10,999 Total current liabilities 118,842 116,283 Notes payable, net of current portion 321 903 Revolving facility 24,500 11,000 Term loan, net of current portion and deferred financing costs 127,093 130,627 Deferred taxes 34,402 29,465 Operating lease liabilities, net of current portion 104,279 101,868 Other long-term liabilities 4,571 18,275 Total liabilities 414,008 408,421 Redeemable non-controlling interest - temporary equity 263,298 269,025 Commitments and Contingencies U.S. Physical Therapy, Inc. ("USPH") shareholders' equity: Preferred stock, $.01 par value, 500,000 shares authorized, no shares issued and outstanding - - Common stock, $.01 par value, 20,000,000 shares authorized, 17,418,856 and 17,309,120 shares issued, respectively 172 172 Additional paid-in capital 294,636 290,321 Accumulated other comprehensive gain 1,214 2,799 Retained earnings 236,356 227,265 Treasury stock at cost, 2,214,737 shares (31,628 ) (31,628 ) Total USPH shareholders' equity 500,750 488,929 Non-controlling interest - permanent equity 1,544 1,092 Total USPH shareholders' equity and non-controlling interest - permanent equity 502,294 490,021 Total liabilities, redeemable non-controlling interest, USPH shareholders' equity and non-controlling interest - permanent equity $ 1,179,600 $ 1,167,467 Expand U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) Six Months Ended June 30, 2025 June 30, 2024 OPERATING ACTIVITIES Net income including non-controlling interest $ 31,188 $ 23,329 Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: Depreciation and amortization 11,924 8,609 Provision for credit losses 3,843 3,344 Equity-based awards compensation expense 3,888 3,916 Amortization of debt issue costs 210 210 Change in deferred income taxes 7,279 770 Change in revaluation of put-right liability 743 303 Change in fair value of contingent earn-out consideration (5,612 ) 3,434 Equity of earnings in unconsolidated affiliate (794 ) (519 ) Loss on sale of fixed assets 438 51 Loss on sale of a partnership 123 - Changes in operating assets and liabilities: Patient accounts receivable, net (10,232 ) (5,110 ) Accounts receivable - other 355 (2,351 ) Other current and long term assets (4,426 ) (1,642 ) Accounts payable and accrued expenses (7,914 ) (1,481 ) Other long-term liabilities (827 ) 548 Net cash provided by operating activities 30,186 33,411 INVESTING ACTIVITIES Purchase of fixed assets (5,830 ) (4,174 ) Purchase of majority interest in businesses, net of cash acquired (6,890 ) (38,695 ) Purchase of redeemable non-controlling interest, temporary equity (8,427 ) (6,230 ) Purchase of non-controlling interest, permanent equity (149 ) (527 ) Proceeds from the sale of non-controlling interest, permanent equity 9 26 Proceeds from the sale of partnership interest - redeemable non-controlling interest, temporary equity 15 69 Repayment of notes receivable related to redeemable non-controlling interest 346 375 Proceeds from the sale of partnership 700 - Distributions from unconsolidated affiliate 664 532 Other 228 (131 ) Net cash (used in) investing activities (19,334 ) (48,755 ) FINANCING ACTIVITIES Proceeds from revolving facility 73,500 - Payments on revolving facility (60,000 ) - Distributions to non-controlling interest, permanent and temporary equity (10,697 ) (8,318 ) Cash dividends paid to shareholders (13,678 ) (13,264 ) Payments on term loan (5,625 ) (1,875 ) Principal payments on notes payable (1,628 ) (1,113 ) Net cash (used in) financing activities (18,128 ) (24,570 ) Net (decrease) in cash and cash equivalents (7,276 ) (39,914 ) Cash and cash equivalents - beginning of period 41,362 152,825 Cash and cash equivalents - end of period $ 34,086 $ 112,911 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for: Income taxes $ 9,833 $ 4,932 Interest paid 4,683 3,708 Non-cash investing and financing transactions during the period: Purchase of businesses - seller financing portion - 955 Fair market value of initial contingent consideration related to purchase of businesses 3,059 2,800 Offset of notes receivable associated with purchase of redeemable non-controlling interest 254 75 Notes payable related to purchase of non-controlling interest, temporary equity - 22 Notes payable related to purchase of redeemable non-controlling interest, temporary equity 89 - Notes receivable related to sale of redeemable non-controlling interest, temporary equity 660 402 Notes receivable related to the sale of non-controlling interest, permanent equity 29 243 Expand U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES ADJUSTED EBITDA AND OPERATING RESULTS The following tables provide details of the basic and diluted earnings per share computation and reconcile net income attributable to USPH shareholders calculated in accordance with GAAP to Adjusted EBITDA and Operating Results. The tables also provide a reconciliation of additional non-GAAP measures to the most comparable GAAP measure. Management believes providing Adjusted EBITDA and Operating Results to investors is useful for comparing the Company's period-to-period results as well as for comparing with other similar businesses since most do not have redeemable instruments and therefore have different equity structures. Management uses Adjusted EBITDA and Operating Results, which eliminate certain items described above that can be subject to volatility and unusual costs, as the principal measures to evaluate and monitor financial performance period over period. Adjusted EBITDA, a non-GAAP measure, is defined as net income attributable to USPH shareholders before interest income, interest expense, taxes, depreciation, amortization, change in fair value of contingent earn-out consideration, changes in revaluation of put-right liability, equity-based awards compensation expense, clinic closure costs, business acquisition related costs, costs related to a one-time financial and human resources systems upgrade, loss on sale of a partnership and other income and related portions for non-controlling interests. Operating Results, a non-GAAP measure, equals net income attributable to USPH shareholders less, changes in revaluation of a put-right liability, clinic closure costs, loss on sale of a partnership, changes in fair value of contingent earn-out consideration, business acquisition related costs, costs related to a one-time financial and human resources systems upgrade and any allocations to non-controlling interests, all net of taxes. Operating Results per share also excludes the impact of the revaluation of redeemable non-controlling interest and the associated tax impact. Adjusted EBITDA and Operating Results are not measures of financial performance under GAAP. Adjusted EBITDA, Operating Results and other non-GAAP measures should not be considered in isolation or as an alternative to, or substitute for, net income attributable to USPH shareholders presented in the consolidated financial statements. U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES Adjusted EBITDA (a non-GAAP measure) Net income attributable to USPH shareholders $ 12,393 $ 7,506 $ 22,292 $ 15,552 Adjustments: Provision for income taxes 4,933 3,083 8,793 6,222 Depreciation and amortization 6,057 4,514 11,924 8,609 Interest expense, debt and other, net 2,422 1,980 4,701 3,948 Equity-based awards compensation expense 2,117 1,919 3,888 3,916 Interest income from investments (28 ) (1,074 ) (52 ) (2,617 ) Change in revaluation of put-right liability 339 223 743 303 (Gain) loss on change in fair value of contingent earn-out consideration (790 ) 4,046 (5,612 ) 3,434 Clinic Closure costs (1) 69 551 311 677 Business acquisition related costs (2) 320 - 800 - ERP implementation costs (3) 159 - 221 - Loss on sale of a partnership - - 123 - Other income (47 ) (109 ) (122 ) (171 ) Allocation to non-controlling interests (1,081 ) (515 ) (1,608 ) (978 ) $ 26,863 $ 22,124 $ 46,402 $ 38,895 Operating Results (a non-GAAP measure) Net income attributable to USPH shareholders $ 12,393 $ 7,506 $ 22,292 $ 15,552 Adjustments: Gain (loss) on change in fair value of contingent earn-out consideration (790 ) 4,046 (5,612 ) 3,434 Change in revaluation of put-right liability 339 223 743 303 Clinic closure costs (1) 69 551 311 677 Business acquisition related costs (2) 320 - 800 - ERP implementation costs (3) 159 - 221 - Loss on sale of a partnership - - 123 - Allocation to non-controlling interests (156 ) (68 ) (118 ) (84 ) Tax effect at statutory rate (federal and state) 16 (1,214 ) 903 (1,106 ) $ 12,350 $ 11,044 $ 19,663 $ 18,776 Operating Results per share (a non-GAAP measure) $ 0.81 $ 0.73 $ 1.30 $ 1.25 Earnings per share Computation of earnings per share - USPH shareholders: Net income attributable to USPH shareholders $ 12,393 $ 7,506 $ 22,292 $ 15,552 Charges to retained earnings: Revaluation of redeemable non-controlling interest (4,806 ) (622 ) (1,903 ) (2,061 ) Tax effect at statutory rate (federal and state) 1,228 159 486 527 $ 8,815 $ 7,043 $ 20,875 $ 14,018 Earnings per share (basic and diluted) $ 0.58 $ 0.47 $ 1.38 $ 0.93 Shares used in computation - basic and diluted 15,197 15,072 15,165 15,044 Expand _______________________ (1) Costs associated with the closure of three clinics in the 2025 Second Quarter, 10 clinics during the 2025 Six Months, five clinics in the 2024 Second Quarter and 11 clinics in the 2024 Six Months. (2) Primarily consists of retention bonuses and legal and consulting expenses related to the acquisitions of equity interests in certain partnerships. (3) Consists of costs related to a one-time financial and human resources systems upgrade. Expand U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGES) The tables below reconcile other non-GAAP measures to the most directly comparable GAAP measures for the 2025 Second Quarter and the 2025 Six Months. No commensurate adjustments were made in the comparable prior year period. _______________________ (1) Certain incentive costs related to the Metro acquisition. We believe that presenting this information will allow investors to evaluate the performance of the Company's business more objectively. (2) Excludes costs related to management contracts. * Not meaningful Expand U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES Revenue Metrics Number of Clinics (2) Net Rate Per Patient Visit (1) Patient Visits (1) Average Visits Per Clinic Per Day (3) 2025 2024 2025 2024 2025 2024 2025 2024 First quarter 729 679 $ 105.66 $ 103.37 1,443,805 1,268,002 31.2 29.5 Second quarter 732 681 $ 105.33 $ 105.05 1,558,756 1,335,335 32.7 30.6 Third quarter 661 $ 105.65 1,317,051 30.1 Fourth quarter 722 $ 104.73 1,432,801 31.6 Year-to-date 722 $ 104.71 3,002,561 5,353,189 30.4 Expand _______________________ (1) See definition of the metrics above in the Glossary of Terms – Revenue Metrics section on page 7. (2) The Company also manages clinics owned by third parties through management contracts. In addition to the clinic count shown above (excluding the home-care business unit count), as of June 30, 2025, the Company managed 36 clinics bringing the total owned/managed clinics to 768. In comparison, as of June 30, 2024, the Company managed 41 clinics bringing the total owned/managed clinics to 722. (3) Excludes home-care visits. Expand Clinic Count Roll Forward (1) 2025 2024 Owned Managed Total Owned Managed Total Number of clinics, beginning of period 722 39 761 671 43 714 Q1 additions 14 - 14 14 - 14 Q1 closed or sold (7 ) (2 ) (9 ) (6 ) (2 ) (8 ) Number of clinics, end of period 729 37 766 679 41 720 Q2 additions 6 - 6 7 - 7 Q2 closed or sold (3 ) (1 ) (4 ) (5 ) - (5 ) Number of clinics, end of period 732 36 768 681 41 722 Q3 additions 12 - 12 Q3 closed or sold (32 ) (2 ) (34 ) Number of clinics, end of period 661 39 700 Q4 additions 63 - 63 Q4 closed or sold (2 ) - (2 ) Number of clinics, end of period 722 39 761 Year-to-date total additions 20 - 20 96 - 96 Year-to-date total closed or sold (10 ) (3 ) (13 ) (45 ) (4 ) (49 ) _______________________ (1) Excludes the home-care business. Expand
