US Physical Therapy (USPH) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly patient volume and strong growth in both physical therapy and industrial injury prevention (IIP) services for Q3 2024.

• Patient visits increased 6% year-over-year in Q3, with visits per clinic per day reaching a record 30.1.

• The company closed 32 underperforming clinics and added 12 new clinics, optimizing its portfolio and focusing on higher-return markets.

• Completed significant acquisitions, including a 50% interest in MSO Metro, LLC for $76.5 million and a 70% stake in an eight-clinic practice.

• Declared a quarterly dividend of $0.44 per share payable December 6, 2024.

Financial highlights

• Q3 2024 net revenue rose 12% year-over-year to $168.0 million; physical therapy revenues reached $142.7 million, up 9.3%.

• Adjusted EBITDA for Q3 was $21.1 million, up from $18.6 million last year; margin rose to 15.5%.

• Net income attributable to shareholders for Q3 2024 was $6.6 million ($0.39/share), including $2.5 million ($0.16/share) in clinic closure costs; adjusted net income was $9.1 million ($0.55/share).

• Gross margin for Q3 2024 was 16.5%; excluding closure costs, 18.9%.

• Total patient visits in Q3 2024 were 1,317,051, up 6.0% year-over-year.

Outlook and guidance

• EBITDA guidance for 2024 remains unchanged at $80–$85 million.

• Management expects continued growth through acquisitions, new clinic development, and operational adjustments.

• Early Q4 volumes remain strong, with October trending similarly to September.

• Sufficient cash and credit availability to fund operations and acquisitions through at least September 2025.

• Full-year benefit from recent acquisitions, especially Metro, expected in 2025.