U.S. Physical Therapy Reports 11% Revenue Growth and Strategic Acquisitions for Fiscal Year 2024

U.S. Physical Therapy, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with total net revenue rising to $671.3 million, an 11% increase from $604.8 million in 2023. The company's net patient revenue also saw an 8.9% increase, reaching $560.6 million compared to $514.6 million in the previous year. Net income attributable to U.S. Physical Therapy shareholders was $31.4 million, up from $28.2 million in 2023, resulting in earnings per share of $1.84, compared to $1.28 in the prior year.

The company experienced notable operational changes, including the addition of 58 new clinics, bringing the total number of clinics operated or managed to 729 across 43 states. This expansion contributed to a 6.9% increase in patient visits, totaling approximately 5.4 million for the year. However, the company also faced challenges, including the closure of 45 underperforming clinics, which resulted in $4.4 million in associated costs. The gross profit margin decreased slightly to 18.5% from 20.1% in 2023, primarily due to these closure costs.

Strategically, U.S. Physical Therapy continued its acquisition strategy, completing several significant transactions in 2024. Notable acquisitions included a 75% equity interest in an eight-clinic practice and a 50% interest in MSO Metro, LLC, for a total purchase price of approximately $76.5 million. The company also acquired 100% of an industrial injury prevention business for $24 million. These acquisitions are expected to enhance the company's service offerings and market presence.

The company reported a total operating cost of $547.4 million, a 13.3% increase from $483.3 million in 2023, driven by higher salaries and related costs due to the increased number of clinics and patient visits. The provision for credit losses remained stable at 1.0% of total net revenue for both years. U.S. Physical Therapy's cash and cash equivalents decreased to $41.4 million as of December 31, 2024, from $152.8 million in the previous year, reflecting significant investments in acquisitions.

Looking ahead, U.S. Physical Therapy anticipates continued growth through further acquisitions and clinic expansions. The company remains focused on enhancing its operational efficiency and maintaining strong relationships with payors and referral sources. However, it also acknowledges potential risks, including changes in Medicare reimbursement rates and the ongoing challenges posed by the competitive healthcare landscape. The company is committed to navigating these challenges while pursuing its strategic objectives.