Ryan Quinn's questions to US Physical Therapy Inc (USPH) leadership • Q4 2024
Question
Ryan Quinn from Corre Partners sought a detailed bridge for the 2025 EBITDA guidance, questioning the contribution from the Metro acquisition. He also asked for an explanation of the sequential decline in the net rate per visit and requested insight into the implied EBITDA margin for 2025.
Answer
CEO Christopher Reading and CFO Carey Hendrickson clarified that the analyst's estimate for Metro's contribution was high, as USPH owns 50%. Hendrickson provided a bridge, noting an $8-9M lift from acquisitions and over $3M from IIP, offset by a $5.7M Medicare cut and higher corporate costs. She explained the sequential rate dip was due to Metro's lower-rate business being added to the mix and stated the 2025 PT margin would be similar to 2024.