U.S. Physical Therapy, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, net patient revenue reached $139.1 million, a 9.4% increase from $127.2 million in Q3 2023. Other revenue also saw a substantial rise, totaling $28.9 million, up 26.9% from $22.8 million in the prior year. Overall, total net revenue for the quarter was $168.0 million, reflecting a 12.0% increase from $150.0 million in Q3 2023. However, total operating costs increased by 13.8% to $138.9 million, leading to a gross profit of $29.1 million, slightly up from $27.9 million in the same quarter last year. Operating income decreased to $14.7 million from $15.9 million, and net income fell to $9.8 million from $12.2 million, with net income attributable to U.S. Physical Therapy shareholders at $6.6 million, down from $9.3 million in Q3 2023.

For the nine months ended September 30, 2024, total net revenue was $490.9 million, a 9.1% increase from $450.0 million in the same period of 2023. Net income for this period was $33.1 million, down from $38.5 million in 2023, with net income attributable to shareholders at $22.2 million, compared to $27.6 million in the prior year. The company’s earnings per share for the nine months were $1.32, down from $1.72 in 2023.

Strategically, U.S. Physical Therapy has been active in acquisitions, completing several transactions to enhance its operations. Notably, the company acquired 100% of an Industrial Injury Prevention (IIP) business through Briotix Health Limited Partnership for approximately $24.0 million on April 30, 2024. Additionally, on October 31, 2023, it acquired another IIP business and a 55% equity interest in an ergonomics software business. The company also announced the acquisition of a 50% interest in MSO Metro, LLC for approximately $76.5 million, funded by cash and stock issuance.

The company faced challenges, including a goodwill impairment of $0.1 million related to a closed clinic in Q3 2024, following a more significant impairment of $15.8 million recorded in 2023. Furthermore, the company closed 32 clinics during the third quarter, contributing to increased operating costs.

As of September 30, 2024, U.S. Physical Therapy had total assets of $1.03 billion, up from $997.2 million at the end of 2023, while total liabilities increased to $358.5 million from $345.0 million. The company’s cash and cash equivalents decreased to $117.0 million from $152.8 million at the end of 2023. The company declared a quarterly dividend of $0.44 per share, payable on December 6, 2024.