US Physical Therapy (USPH) 17th Annual Midwest IDEAS Conference summary

Business model and growth strategy

• Operates nearly 800 locations in 45 states, primarily through about 120 local partnerships with equity interests retained by partners.

• Growth driven by 25-30 organic openings and 30-70 annual acquisitions, typically at single-digit EBITDA multiples.

• Partners receive monthly cash distributions and have guaranteed exit options based on updated EBITDA multiples.

• Maintains local brands post-acquisition to ensure stability and minimize disruption.

• Centralizes non-clinical operations, freeing partners to focus on growth and patient care.

Competitive landscape and differentiation

• Competes in a fragmented market dominated by small, independent clinics and some large PE-backed entities.

• Offers superior support, better payer contracts, and regular cash flow compared to highly leveraged competitors.

• Provides technology, resources, and commercial contracting expertise to acquired practices.

• Acquisitions are structured to retain staff and leverage existing local systems, with gradual integration of core platforms.

Financial performance and capital allocation

• Revenue mix is diversified: about one-third Medicare, majority commercial, and ~10% workers’ compensation.

• Average net reimbursement per visit is just under $110, with sequential growth in visits per clinic per day over 14 of the last 16 quarters.

• Maintains a strong balance sheet with $220 million in debt against expected EBITDA north of $100 million.

• Pays a quarterly dividend since 2012 and completed a $25 million share repurchase in Q1 at $62–$63 per share.