Company: USPH
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001140361-25-029744
Chunk: 14

Company: U S PHYSICAL THERAPY INC /NV
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 14
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We revalued contingent consideration related to certain acquisitions and recognized a net gain (a decrease in the related liabilities) of $5.6 million for the 2025 Six Months compared to a net non-cash loss of $3.4
        million for the 2024 Six Months (an increase in the related liabilities).

        48

Operating Income

Operating income was $44.6 million for the 2025 Six Months compared to $30.5 million for the 2024 Six Months. Excluding the impact of change in value of contingent consideration of $5.6 million for the 2025 Six
        Months and $3.4 million for the 2024 Six Months, operating income increased to $39.0 million for the 2025 Six Months from $33.9 million for the 2024 Six Months, an increase of 14.9%.

Other (Expenses) Income

Interest Expense, Debt and Other

Interest expense increased by $0.8 million to $4.7 million for the 2025 Six Months compared to $3.9 million for the 2024 Six Months, primarily due to higher interest expense as a
        result of increased borrowings and lower interest income as the cash on the balance sheet during the 2024 Six Months has been deployed to fund acquisitions since that time.

The interest rate associated with borrowings on our credit facilities was 5.0% for the 2025 Six Months and 4.7% for the 2024 Six Months, with an all-in-effective interest rate (including all
        associated costs), of 5.5% and 5.4% over the same periods, respectively.

Interest income from investment

Interest income was less than $0.1 million during the 2025 Second Quarter compared to $2.6 million for the 2024 Second Quarter as the cash on the balance sheet at the end of the 2024 Second Quarter
        has since been deployed to fund acquisitions.

Change in revaluation of put-right liability

We revalued a put-right liability related to the future purchase of an IIP business and recognized a net non-cash expense (an increase in the related liability) of $0.7 million for the 2025 Six Months
        compared to $0.3 million for the 2024 Six Months (an increase in the related liability).

Provision for Income Taxes

The provision for income tax was $8.8 million for the