US Physical Therapy (USPH) Misses Q4 EPS by 95c ; Provides Outlook

US Physical Therapy (NYSE: USPH) reported Q4 EPS of ($0.38), $0.95 worse than the analyst estimate of $0.57. Revenue for the quarter came in at $154.8 million versus the consensus estimate of $150.22 million.

2024 EARNINGS GUIDANCE:-

Management expects the Company’s Adjusted EBITDA for 2024 to be in the range of $80 million to $85 million. The previously announced Medicare rate reduction of approximately 3.5% effective January 1, 2024, is expected to reduce the Company’s revenue by approximately $6.0 million in 2024 as compared to 2023, which equates to an EBITDA reduction of approximately $5.3 million net of non-controlling interests. Management expects to more than offset the decreases in revenue and EBITDA related to the Medicare rate reduction from:

the full-year impact of rate negotiations in commercial and other payor categories completed during 2023
the partial-year impact of rate negotiations in commercial and other payor categories expected to be completed during 2024
volume increases at the Company’s existing clinics
continued discipline in expense control
full-year contribution from acquisitions completed in 2023; and,
partial-year impact of EBITDA from acquisitions expected to be completed during or shortly after the first half of 2024.

As noted previously, the Company is currently in the process of completing several acquisitions that are expected to close in or shortly after the first half of 2024. The guidance range includes the expected EBITDA contribution from such acquisitions.

For earnings history and earnings-related data on US Physical Therapy (USPH) click here.

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