U.S. Physical Therapy, Inc. Carey Hendrickson, Chief Financial Officer Chris Reading, Chief Executive Officer (713) 297-7000 Three Part Advisors Joe Noyons (817) 778-8424 U.S. Physical Therapy Reports Fourth Qua

U.S. Physical Therapy, Inc.

Carey Hendrickson, Chief Financial Officer

Chris Reading, Chief Executive Officer

U.S. Physical Therapy Reports Fourth Quarter and Full Year 2020 Results

Company Reinstates Dividend and Provides 2021 Earnings Guidance

Houston, TX, February 25, 2021

- U.S. Physical Therapy, Inc. ("USPH" or the "Company") (NYSE: USPH), a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services, today reported results for the fourth quarter and year ended

For the year ended December 31, 2020, USPH's Operating Results (as defined below), including Relief Funds (defined below), was $38.4 million,

or $2.99 per diluted share, as compared to $36.0 million, or $2.82 per diluted share, in 2019. For the fourth quarter ended December 31, 2020, USPH's Operating Results, including Relief Funds, was $13.9 million, or $1.08 per diluted share, as

compared to $8.2 million, or $0.64 per diluted share, in the fourth quarter of 2019. For the year ended December 31, 2020, USPH's Operating Results (as defined below), excluding Relief Funds, was $30.6 million, or $2.39 per diluted share, as compared

to $36.0 million, or $2.82 per diluted share in 2019. For the fourth quarter ended December 31, 2020, USPH's Operating Results, excluding Relief Funds, was $10.9 million, or $0.85 per diluted share, as compared to $8.2 million, or $0.64 per diluted

share, in the fourth quarter of 2019. Operating Results, a non-Generally Accepted Accounting Principles ("GAAP") measure, equals net income attributable to USPH shareholders per the consolidated statements of income plus charges incurred for clinic

closure costs, less gain on the sale of partnership interests and clinics, plus allocated non-controlling interests, and excludes expenses incurred for the CFO transition, all net of taxes. The earnings per share from Operating Results also excludes

the impact of the revaluation of redeemable non-controlling interest. See table on page 13.

For the year ended December 31, 2020, USPH's net income attributable to its shareholders, in accordance with GAAP, was $35.2 million as compared to $40.0 million for the comparable period of 2019. For the fourth quarter ended December 31, 2020, USPH's

net income attributable to its shareholders was $13.0 million, as compared to $7.9 million in the fourth quarter of 2019. Inclusive of the charge for revaluation of non-controlling interest, net of taxes, used to compute diluted earnings per share, in

accordance with GAAP, the amount is $31.8 million, or $2.48 per share, for 2020 as compared to $31.3 million, or $2.45 per share, for 2019. Inclusive of the charge for revaluation of non-controlling interest, net of taxes, used to compute diluted

earnings per share in accordance with GAAP, the amount is $8.7 million, or $0.68 per share, for the fourth quarter of 2020 as compared to $7.1 million, or $0.55 per share, for the fourth quarter of 2019. In accordance with current accounting guidance,

the revaluation of redeemable non-controlling interest, net of taxes, is not included in net income but charged directly to retained earnings; however, the charge or credit for this change is included in the earnings per basic and diluted share

calculation. See the schedule on page 13 for the computation of diluted earnings per share.

As previously disclosed in a series of filings with the SEC and further described in detail in our Quarterly Reports on Form 10-Q for the first three quarters of 2020, the Company's results were negatively impacted by the effects of the COVID-19

pandemic in 2020. Following the onset of the pandemic, management took a number of steps to reduce costs, make up for operating losses incurred in March and April, and increase profits subsequently. The Company's physical therapy patient volumes

increased consistently from May through December 2020, returning to near-normal levels in the fourth quarter of 2020. The Company's average physical therapy patient volumes per day per clinic were 26.2, 18.9, 25.8, and 27.7, respectively, in the four

quarters of 2020. Physical therapy patient volumes per day per clinic for the fourth quarter of 2020 were 27.7 compared to 28.0 in the fourth quarter of 2019. The Company's industrial injury prevention business was less affected by the pandemic in

2020, with revenues higher by $1.7 million, or 4.6%, in 2020 as compared to 2019, including an acquisition closed in April 2019.

Year 2020 Compared to Year 2019

See table below detailing computation of the effective tax rate ($ in thousands):

Fourth Quarter 2020 Compared to Fourth Quarter 2019

Medicare Accelerated and Advance Payment Program ("MAAPP Funds")

In response to the COVID-19 pandemic, the federal government approved the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The CARES Act allowed for qualified healthcare providers to receive advanced payments under the existing MAAPP

Funds during the COVID-19 pandemic. Under this program, healthcare providers could choose to receive advanced payments for future Medicare services provided. The Company applied for and received approval from Centers for Medicare & Medicaid

Services ("CMS") in April 2020. The Company recorded these payments as a liability until all performance obligations have been met as the payments were made on behalf of patients before services were provided. Currently, MAAPP funds received are

required to be applied to future Medicare billings commencing in August 2021, with all such remaining amounts required to be repaid by January 2024. Beginning January 2024, any unpaid balance will begin accruing interest. The Company currently

intends to repay funds prior to August 2021. Included in cash and cash equivalents and accrued liabilities at December 31, 2020 is $14.1 million of MAAPP Funds.

On March 27, 2020, the CARES Act was enacted. The CARES Act provided additional waivers,

reimbursement, grants and other funds to assist health care providers during the COVID-19 pandemic, including $100.0 billion in appropriations for the Public Health and Social Services Emergency Fund, also referred to as the Provider Relief

Fund, to be used for preventing, preparing, and responding to the coronavirus, and for reimbursing eligible health care providers for lost revenues and health care related expenses that are attributable to COVID-19.

Through December 31, 2020, the

Company's consolidated subsidiaries received approximately $13.5 million of payments under the CARES Act ("Relief Funds"). Under the Company's accounting policy, these payments have been recorded as Other income - Relief Funds. For the three

months and year ended December 31, 2020, the Company has recognized approximately $5.2 million and $13.5 million, respectively, as Other income - Relief Funds on the accompanying consolidated statement of operations. These funds are

not required to be repaid upon attestation and compliance with certain terms and conditions, which could change materially based on evolving grant compliance provisions and guidance provided by the U.S. Department of Health and Human Services.

Currently, the Company can attest and comply with the terms and conditions. The Company will continue to monitor the evolving guidelines and may record adjustments as additional information is released.

Other Financial Measures

For the 2020 Fourth Quarter, the Company's Adjusted EBITDA was $23.5 million compared to $15.3 million in the 2019 Fourth

Quarter. For the 2020 Fourth Quarter, the Company's Adjusted EBITDA, excluding Relief Funds, was $18.3 million.

For 2020, the Company's Adjusted EBITDA was $70.0 million compared to $72.8 million in 2019. For 2020, the Company's

Adjusted EBITDA, excluding Relief Funds, was $56.5 million.

See definition, explanation and calculation of Adjusted EBITDA in the schedule on pages 12 and 13.

Acquistions in Fourth Quarter 2020

As previously reported, the Company acquired a 75% interest in a three-clinic physical therapy

practice in the fourth quarter of 2020 with the practice founder retaining 25%. The purchase price was approximately $9.1 million. The business generates $4.6 million in annual revenue and has approximately 54,000 annual patient visits. The

Company's strategy is to continue acquiring multi-clinic outpatient physical therapy practices, to develop outpatient physical therapy clinics as satellites in existing partnerships and to continue acquiring companies that provide industrial

injury prevention services.

Quarterly Dividend Reinstated

In April 2020, the Company announced the suspension of it quarterly dividend to enhance its

operational and financial flexibility during the COVID-19 pandemic. The Company announced today that its Board of Directors has reinstated its quarterly dividend and declared a dividend of $0.35 per share, which is an increase of 9.4% from its

previous dividend of $0.32 per share paid in April 2020. The quarterly dividend of $0.35 per share will be paid on April 9, 2021 to shareholders of record as of March 12, 2021.

Renewal of Credit Agreement

On January 29, 2021, the Company completed the renewal of its bank credit facility, extending the maturity date from

November 30, 2021 to November 30, 2025. The commitment under the facility remains at $125.0 million; however, the accordion feature in the agreement was expanded to provide for capacity up to $150 million. Proceeds from the Credit Agreement may

be used for working capital, acquisitions, and for other purposes.

Management Provides 2021 Earnings Guidance

Management currently expects the Company's Operating Results for 2021 to be in the range of $30.9 million to $32.5 million,

or $2.40 to $2.52 per share, which considers the following:

This earnings range is based on an estimated annual effective tax rate of approximately 27.0%. Please note that the

earnings guidance represents projected Operating Results from existing operations and excludes future acquisitions. The 2021 earnings guidance range excludes expenses associated with the previously-announced retirement and replacement of one of

the Company's co-Chief Operating Officers. The annual guidance figures will not be updated unless there is a material development that causes management to believe that Operating Results will be significantly outside the given range.

Management's Comments

Chris Reading, Chief Executive Officer, said, "It is difficult at best to adequately summarize the year we have just

completed. One thing that isn't difficult is to highlight the extraordinary efforts of all of our employees across the entirety of our Company for their stellar work during this most challenging and unpredictable year in 2020. I cannot

overstate how impressed I am with the continuous examples of sacrifice, leadership, commitment and resolve that have been evident to me throughout this past year (and continuing) as we face the challenges and opportunities before us. While I

may not be the best person to predict the end of this COVID-19 virus, I am well positioned to say that I believe that the team we have can work through and overcome whatever obstacles come our way. We also continue to believe that we are well

positioned to attract truly excellent partners as we work with grit and strong resolve to grow and scale our Company while we serve those who are entrusted to us with great care."

Carey Hendrickson, Chief Financial Officer, said, "As a result of the early actions we took when the pandemic began and

the outstanding efforts of our team throughout the year, the Company's net cash flow in 2020 was stronger than initially expected and our results improved consistently from May through December, putting our balance sheet in a strong position as

we begin 2021. We are pleased to reinstate and increase the quarterly dividend and to extend our credit agreement with Bank of America for an additional four years on favorable terms."

Fourth Quarter 2020 Conference Call

U.S. Physical Therapy's management will host a conference call at 10:30 a.m. Eastern Time, 9:30 a.m. Central Time, on

February 25, 2021 to discuss results for the Company's fourth quarter and year ended December 31, 2020. Interested parties may participate in the call by dialing 1-888-335-5539 or 973-582-2857 and entering reservation number 4396697 approximately

10 minutes before the call is scheduled to begin. To listen to the live call via web-cast, go to the Company's website at www.usph.com at least 15 minutes early to register, download and install any necessary audio software. The conference call

will be archived and can be accessed until May 5, 2021 at U.S. Physical Therapy's website.

Forward-Looking Statements

This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain forward-looking information relating to the financial