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 First Quar

U.S. Physical Therapy, Inc.

Carey Hendrickson, Chief Financial Officer

Chris Reading, Chief Executive Officer

U.S. Physical Therapy Reports

First Quarter Earnings 2021 Results

Management Revises 2021 Earnings Guidance

Houston, TX, May 6, 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

first quarter ended March 31, 2021 ("2021 First Quarter").

SUMMARY OF FIRST QUARTER RESULTS

For the 2021 First Quarter, USPH's Operating Results was $8.2 million, or $0.64 per diluted share, as compared to $3.9 million, or $0.30 per

diluted share, in the three months ended March 31, 2020 ("2020 First Quarter"). 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 and expenses related to 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

For the 2021 First Quarter, USPH's net income attributable to its shareholders was $8.2 million, as compared to $1.0 million in the 2020

First Quarter. 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 $2.8 million, or $0.21 per share, for the 2021 First Quarter as

compared to $2.6 million, or $0.20 per share, for the 2020 First Quarter. 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 12 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 and our Annual Report on Form 10-K, the Company's results were negatively impacted by the effects of the COVID-19 pandemic in the 2020 First Quarter, especially in March 2020. Physical therapy patient

volumes per day per clinic for the 2021 First Quarter were 27.1, which is at or near pre-pandemic levels, compared to 26.2 in the 2020 First Quarter. The Company's industrial injury prevention business has been less affected by the pandemic.

First Quarter 2021 Compared to First Quarter 2020

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 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 the $14.1 million in advance payments received as a liability. During

the 2021 First Quarter, the Company repaid the MAAPP Funds of $14.1 million rather than applying them to future services performed.

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 were recorded as Other income - Relief Funds. 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. There were no Relief Funds received in

the 2021 First Quarter.

Other Financial Measures

For the 2021 First Quarter, the Company's Adjusted EBITDA was $15.6 million compared to $8.0 million in the 2020 First

See definition, explanation and calculation of Adjusted EBITDA in the schedule on pages 11 and 12.

Acquisition in First Quarter 2021

As previously reported, the Company acquired a 70% interest in a five-clinic physical therapy practice

in the 2021 First Quarter with the practice founder retaining 30%. The practice is in the process of developing a sixth clinic. The purchase price was approximately $12.0 million, of which $11.7 million was paid in cash and a $0.3 million note

payable. The business generates $7.0 million in annual revenue and has approximately 46,000 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.

On May 3, 2021, the Company's Board of Directors

declared a dividend of $0.35 per share. The quarterly dividend of $0.35 per share will be paid on June 11, 2021 to shareholders of record as of May 14, 2021.

Renewal of Credit Agreement

As previously reported, 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 $150.0 million. Proceeds from the

Credit Agreement may be used for working capital, acquisitions, and for other purposes.

Management Revises 2021 Earnings Guidance

Management currently expects the Company's Operating Results for 2021 to be in the range of $34.5 million to $35.8 million, or $2.68 to

$2.78 per share. The increase in the guidance range is attributable to better than expected performance in the 2021 First Quarter, the impact of the acquisition closed in the 2021 First Quarter, and the extension of the 2% sequestration relief

applied to all Medicare payments through December 31, 2021, which was signed into law on April 14, 2021; such relief was previously scheduled to end on March 31, 2021.

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, "I am very pleased by the way our team has navigated and responded

throughout the entirety of this ever-evolving pandemic period. We were able to finish this quarter in very strong fashion and we look forward to making continued progress and getting more good things done. I want to especially thank our

clinicians who have endured more than a year of frequent adjustments in order to keep our people and our patients safe. They continue to do an excellent job which is evidenced at least in part by how our patient volume has grown throughout

this period and now exceeds pre-Covid levels."

Carey Hendrickson, Chief Financial Officer, said, "Our balance sheet remains in an excellent position. With continued

strong cash generation in the first quarter, our line of credit balance was unchanged from the beginning to the end of the quarter and we maintained an overall net cash position at quarter-end, even with the $14.1 million payback of MAAPP

funds and the $11.7 million outlay for an acquisition in the first quarter."

First Quarter 2021 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

May 6, 2021 to discuss results for the Company's 2021 First Quarter. Interested parties may participate in the call by dialing 1-888-335-5539 or 973-582-2857 and entering reservation number 8072368 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 August 6, 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 condition, results of operations, plans, objectives, future performance and business of our Company. These

statements (often using words such as "believes", "expects", "intends", "plans", "appear", "should" and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we expect. Included among

such statements may be those relating to new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to:

See Risk Factors in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.

Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our

forward-looking statements. Please see the other sections of this report and our other periodic reports filed with the Securities and Exchange Commission (the "SEC") for more information on these factors. Our forward-looking statements

represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement, regardless of the reason the statement may no longer be accurate.

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 564 outpatient physical therapy clinics in 39 states. The Company's

clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. In addition to owning and

operating clinics, the Company manages 40 physical therapy facilities for unaffiliated third parties, including hospitals and physician groups. The Company also has an industrial injury prevention business which provides onsite services for

clients' employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments. More information about U.S. Physical Therapy, Inc. is

available at www.usph.com. The information included on that website is not incorporated into this press release.

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES