U S PHYSICAL THERAPY INC /NVUSPH
U S PHYSICAL THERAPY INC /NV Segments Disclosure
15. Segment Information
The Company’s reportable segments include the physical therapy operations segment and
the IIP segment. Also included in the physical therapy operations segment are revenues from management contract services and other services which include services the Company provides on-site, such as athletic
trainers for schools.
Physical Therapy Operations
The physical therapy operations segment primarily operates through subsidiary clinic partnerships (“Clinic Partnerships”), in which the Company generally owns a 1% general partnership interest in all the Clinic Partnerships. The Company’s limited partnership interests generally range from 65% to 75% (the range is 30% - 99%) in the Clinic Partnerships.
The managing therapist of each clinic owns, directly or indirectly, the remaining limited partnership interest in most of the clinics (hereinafter referred to as “Clinic Partnerships”). Some of the Clinic
Partnerships serve as management services organizations which manage and provide staffing and a variety of administrative services to physical therapy provider entities in which the Company does not have an ownership interest. These Clinic
Partnerships similarly are owned collectively by the Company and one or more physical therapists who are involved in the management of the operations. To a lesser extent, the Company operates some clinics through wholly-owned
subsidiaries (hereinafter referred to as “Wholly-Owned Facilities”).
The Company continues to seek to attract for employment physical therapists who have established relationships with physicians and other referral sources, by offering these therapists a competitive salary and incentives
based on the profitability of the clinic that they manage. For multi-site clinic practices in which a controlling interest is acquired by the Company, the prior owners typically continue on as employees to manage the clinic operations, retain a
non-controlling ownership interest in the clinics and receive a competitive salary for managing the clinic operations. In addition, the Company has developed satellite clinic facilities as part of existing Clinic Partnerships and Wholly-Owned
Facilities, with the result that a substantial number of Clinic Partnerships and Wholly-Owned Facilities operate more than one clinic
location.
Clinic Partnerships
For non-acquired Clinic Partnerships, the earnings and liabilities attributable to the non-controlling interests, typically owned by the managing therapist, directly or indirectly, are recorded within the balance sheets and
income statements as non-controlling interest—permanent equity. For acquired Clinic Partnerships with redeemable non-controlling interests, the earnings attributable to the redeemable non-controlling
interests are recorded within the consolidated balance sheets and income statements as redeemable non-controlling interest—temporary equity.
Wholly-Owned Facilities
For Wholly-Owned Facilities with profit sharing arrangements, an appropriate accrual is recorded for the amount of profit sharing due the clinic partners/directors. The amount is expensed as compensation and included in
clinic operating costs—salaries and related costs. The respective liability is included in current liabilities—accrued expenses on the consolidated balance sheets.
Industrial Injury Prevention Services
Services provided in the IIP segment include onsite injury prevention and rehabilitation, performance optimization, post offer employment testing, functional capacity evaluations, and ergonomic assessments. The majority of
these services are contracted with and paid for directly by employers, including a number of Fortune 500 companies. Other clients include large insurers and their contractors. The Company performs these services through industrial sports medicine
professionals, consisting primarily of specialized certified athletic trainers.
Segment Financials
The Company, including its chief operating decision maker, the Chief Executive
Officer, uses gross profit in its budget-to-actual, forecasting, and other analytical processes to assess segment performance and allocate resources.
The Company has provided additional information regarding its reportable segments which contributes to the understanding of the Company and provides useful information.
| For the Year Ended |
||||||||||||
|
December 31, 2025
|
December 31, 2024
|
December 31, 2023
|
||||||||||
|
(In thousands)
|
||||||||||||
|
Net revenue:
|
||||||||||||
|
Physical therapy operations
|
$
|
666,589
|
$
|
574,433
|
$
|
526,548
|
||||||
|
Industrial injury prevention services
|
114,401
|
96,912
|
78,254
|
|||||||||
|
Total Company
|
$
|
780,990
|
$
|
671,345
|
$
|
604,802
|
||||||
| Operating Costs: | ||||||||||||
|
Salaries and related costs:
|
||||||||||||
|
Physical therapy operations
|
$ | 388,641 | $ | 337,466 | $ | 302,765 | ||||||
|
Industrial injury prevention services
|
73,249 | 61,928 | 50,625 | |||||||||
|
Total salaries and related costs
|
$ | 461,890 | $ | 399,394 | $ | 353,390 | ||||||
|
Rent supplies, contract labor
and other:
|
||||||||||||
|
Physical therapy operations
|
$ | 124,226 | $ | 105,019 | $ | 97,873 | ||||||
|
Industrial injury prevention services
|
16,205 | 13,891 | 10,723 | |||||||||
|
Total rent, supplies, contract labor and other
|
$ | 140,431 | $ | 118,910 | $ | 108,596 | ||||||
|
Depreciation and amortization:
|
||||||||||||
|
Physical therapy operations
|
$ | 17,834 | $ | 14,775 | $ | 12,576 | ||||||
|
Industrial injury prevention services
|
3,225 | 3,078 | 2,384 | |||||||||
|
Total depreciation and amortization
|
$ | 21,059 | $ | 17,853 | $ | 14,960 | ||||||
|
Provision for credit losses:
|
||||||||||||
|
Physical therapy operations
|
$ | 7,562 | $ | 6,904 | $ | 6,129 | ||||||
|
Industrial injury prevention services
|
85 | 8 | 43 | |||||||||
|
Total provision for credit losses
|
$ | 7,647 | $ | 6,912 | $ | 6,172 | ||||||
|
Clinic closure costs:
|
||||||||||||
|
Physical therapy operations
|
$ | 270 | $ | 4,355 | $ | 175 | ||||||
|
Industrial injury prevention services
|
- | - | - | |||||||||
|
Total clinic closure costs
|
$ | 270 | $ | 4,355 | $ | 175 | ||||||
| Total Company | $ | 631,297 | $ | 547,424 | $ | 483,293 | ||||||
|
Gross profit:
|
||||||||||||
|
Physical therapy operations
|
$
|
128,056
|
$
|
105,914
|
$
|
107,030
|
||||||
|
Industrial injury prevention services
|
21,637
|
18,007
|
14,479
|
|||||||||
|
Total Company
|
$
|
149,693
|
$
|
123,921
|
$
|
121,509
|
||||||
|
|
||||||||||||
|
Impairment of goodwill and other intangible assets
|
||||||||||||
|
Industrial injury prevention services
|
$ | - | $ | - | $ | 17,495 | ||||||
|
Total impairment of goodwill and other intangible assets
|
$ | - | $ | - | $ | 17,495 | ||||||
| Impairment of assets held for sale | ||||||||||||
|
Physical therapy operations
|
$ | - | $ | 2,418 | $ | - | ||||||
|
Total impairment of assets held for sale
|
$ | - | $ | 2,418 | $ | - | ||||||
|
Unallocated amounts
|
||||||||||||
|
Corporate office costs
|
$ | 69,260 | $ | 58,290 | $ | 51,953 | ||||||
|
Interest expense, debt and other
|
9,459 | 8,015 | 9,303 | |||||||||
|
Interest income from investments
|
(105 | ) | (3,941 | ) | (3,774 | ) | ||||||
|
Change in fair value of contingent earn-out consideration
|
(6,244 | ) | 219 | 1,550 | ||||||||
|
Change in revaluation of put-right liability
|
1,322 | 82 | (2,582 | ) | ||||||||
|
Equity in earnings of unconsolidated affiliate
|
(1,477 | ) | (1,014 | ) | (955 | ) | ||||||
|
Loss on sale of partnership
|
123 | - | - | |||||||||
|
Relief Funds
|
- | - | (467 | ) | ||||||||
|
Other
|
(458 | ) | (357 | ) | (390 | ) | ||||||
|
Total unallocated amounts
|
71,880 | 61,294 | 54,638 | |||||||||
|
Income before taxes
|
$ | 77,813 | $ | 60,209 | $ | 49,376 | ||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Assets: | ||||||||
|
Goodwill:
|
||||||||
|
Physical therapy operations
|
$ | 604,440 | $ | 579,046 | ||||
|
Industrial injury prevention services
|
87,952 | 88,106 | ||||||
|
Total goodwil
|
$ | 692,392 | $ | 667,152 | ||||
|
All other assets:
|
||||||||
|
Physical therapy operations
|
434,804
|
$
|
415,039
|
|||||
|
Industrial injury prevention services
|
76,814
|
85,276
|
||||||
|
Total all other assets
|
511,618 | 500,315 | ||||||
|
Total Assets
|
$
|
1,204,010
|
$
|
1,167,467
|
||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.