U.S. Physical Therapy (USPH) shared its growth roadmap at the Midwest IDEAS conference, emphasizing a dual focus on organic expansion and acquisitions. The Houston-based operator, led by President and CEO Chris Reading, outlined plans to open 25 to 30 clinics organically each year and acquire 30 to 70 clinics annually, building on its track record of over 50 acquisitions since 2004.
The company, which operates roughly 800 units across 45 states through 120 partnerships, also highlighted a 10-year exclusive agreement with NYU Langone Health announced in early 2024. The partnership, which began with over 40 units and has since expanded to about 60 locations in New York and Long Island, is expected to drive an additional 700,000 visits per year over time. USPH reported 120,000 visits in New York last year without NYU’s support, forecasting further growth with the partnership in place.
Financial metrics presented at the event underscored the company’s operational scale and leverage. USPH’s total debt stood at approximately $220 million, with expected EBITDA for the current year exceeding $100 million, resulting in a debt-to-EBITDA ratio of around 2.2 times. Shares traded at $78.51 on August 26, up 1.54% from the prior close of $77.32, within a 52-week range of $58.19 to $93.50. The company’s trading multiple was cited at around 14 times EBITDA, down from historical levels above 20 times, while acquisition multiples over the past 12 months averaged about 7 times EBITDA.
USPH’s injury prevention unit, Briotix, contributed roughly 15% of total revenue, with annual revenue of about $120 million and EBITDA exceeding $20 million—margins approximately twice those of the physical therapy segment. Briotix operates in over 600 Costco warehouses weekly and nearly all major automaker plants, excluding General Motors. The company also noted an average mixed net reimbursement per visit of $107.59 in the most recent quarter, alongside a fully utilized $25 million share repurchase authorization executed in the first quarter at prices between $62 and $63 per share.
Medicare reimbursement pressures, which began cutting fees by 11.5% in 2020, are expected to ease with improvements starting in 2024 and 2025, followed by multi-year increases beginning in 2028. USPH has paid a quarterly dividend since 2012 and entered the New York market approximately 13 months prior to the conference.
