U.S. Physical Therapy, Inc. Carey Hendrickson, Chief Financial Officer email: Chendrickson@usph.com Chris Reading, Chief Executive Officer (713) 297-7000 Three Part Advisors Joe Noyons (817) 778-8424 U.S. Physic

U.S. Physical Therapy, Inc.

Carey Hendrickson, Chief Financial Officer

email: Chendrickson@usph.com

Chris Reading, Chief Executive Officer

U.S. Physical Therapy Reports

Fourth Quarter and Full Year 2021 Results

Patient Volumes Continued at Record Pace

Company Provides 2022 Earnings Guidance and Raises Dividend

Houston, TX, February 24, 2022

- 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

December 31, 2021 ("2021 Fourth Quarter" and "2021 Year", respectively).

FULL YEAR AND QUARTER HIGHLIGHTS

SUMMARY OF 2021 FOURTH QUARTER AND FULL YEAR 2021 RESULTS

For the 2021 Year, USPH's net income attributable to its shareholders, a GAAP measure, was $40.8 million as compared to $35.2 million for

the 2020 Year and $40.0 million for the 2019 Year. The 2021 Year and the 2020 Year include Relief Funds, net of non-controlling interest and taxes, of $2.9 million and $7.8 million, respectively, and the 2019 Year includes a gain on sale of

partnerships and clinics of $4.1 million, net of taxes.

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 for this change is included in the earnings per basic and diluted share calculation. Including the charge for revaluation of non-controlling interest, net of taxes, the amount

is $31.1 million, or earnings per diluted share of $2.41, for the 2021 Year, $31.8 million, or earnings per diluted share of $2.48, for the 2020 Year, and $31.3 million, or earnings per diluted share of $2.45, for the 2019 Year. See the schedule

on page 17 for the computation of earnings per diluted share.

For the 2021 Fourth Quarter, USPH's net income attributable to its shareholders was $10.2 million as compared to $13.0 million for the 2020

Fourth Quarter and $7.9 million for the 2019 Fourth Quarter. Inclusive of the charge or credit for revaluation of non-controlling interest, net of taxes, used to compute earnings per diluted share in accordance with GAAP, the amount is $9.4

million, or $0.73 per diluted share, for the 2021 Fourth Quarter, $8.7 million, or $0.68 per diluted share, for the 2020 Fourth Quarter, and $7.1 million, or $0.55 per diluted share, for the 2019 Fourth Quarter.

For the 2021Year, USPH's Operating Results, inclusive of Relief Funds, was $43.8 million, or $3.39 per diluted share, an increase of 13.8%,

as compared to $38.4 million, or $2.99 per diluted share, for the 2020 Year. For the 2021Year, USPH's Operating Results, excluding Relief Funds, was $40.9 million, or $3.17 per diluted share, an increase of 33.5%, as compared to $30.6 million, or

$2.39 per diluted share, for the 2020 Year. Operating Results, excluding Relief Funds, for the 2021 Year was also 13.6% higher than the $36.0 million, or $2.82 per diluted share, for the year ended December 31, 2019 ("2019 Year"). Operating

Results, a non-GAAP measure, equals net income attributable to USPH diluted shareholders per the consolidated statements of income less gain on sale of partnership interests and clinics plus charges incurred for clinic closure costs and expenses

related to executive officer transitions and settlement of a legal matter, all net of taxes. Operating Results per diluted share also excludes the impact of the revaluation of redeemable non-controlling interest and the associated tax impact. See

tables on pages 16 and 17.

For the 2021 Fourth Quarter, USPH's Operating Results, inclusive of Relief Funds, was $12.2 million, or $0.94 per diluted share, a decrease

of 12.4%, as compared to $13.9 million, or $1.08 per diluted share, for the 2020 Year. For the 2021 Fourth Quarter, USPH's Operating Results, excluding Relief Funds, was $9.3 million, or $0.72 per diluted share, a decrease of 15.1% as compared to

$10.9 million, or $0.85 per diluted share, for the 2020 Fourth Quarter. Operating Results, excluding Relief Funds, for the 2021 Fourth Quarter was 13.6% higher than the $8.2 million, or $0.64 per diluted share, for the pre-pandemic three months

ended December 31, 2019 ("2019 Fourth Quarter").

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 2020 Annual Report, the Company's results were negatively impacted by the effects of the COVID-19 pandemic in 2020. For 2021 Year as compared to 2020 Year, the increase in revenues and expenses are

largely due to the Company returning to and now exceeding pre-pandemic patient volumes.

Fourth Quarter 2021 Compared to Fourth Quarter 2020

2021 Year Compared to 2020 Year

On March 27, 2020, in response to the COVID-19 pandemic, the federal government approved the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The CARES Act provided 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.

For the 2021 Year and 2020 Year, the Company's consolidated subsidiaries recorded income of approximately $4.6 million and $13.5 million, respectively, 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.

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

The CARES Act also allowed also 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 first quarter of 2021, the Company

repaid the MAAPP Funds of $14.1 million rather than applying them to future services performed.

Other Financial Measures

For the 2021 Year, the Company's Adjusted EBITDA, excluding Relief Funds, a non-GAAP measure, was $74.3 million, and for

the 2020 Year was $56.5 million, and $72.8 million for the pre-pandemic 2019 Year. For the 2021 Year, the Company's Adjusted EBITDA, inclusive of Relief Funds, a non-GAAP measure, was $78.9 million, and for the 2020 Year was $70.0 million,

and $72.8 million for the pre-pandemic 2019 Year. The 2021 Year and 2020 Year included $4.6 million and $13.5 million, respectively, of Relief Funds.

For the 2021 Fourth Quarter, the Company's Adjusted EBITDA, excluding Relief Funds, a non-GAAP measure, was $17.0

million, and for the 2020 Fourth Quarter was $18.3 million, and $15.3 for the pre-pandemic 2019 Fourth Quarter. For the 2021 Fourth Quarter, the Company's Adjusted EBITDA, inclusive of Relief Funds, a non-GAAP measure, was $21.6 million, and

for the 2020 Fourth Quarter was $23.5 million, and $15.3 for the pre-pandemic 2019 Fourth Quarter. The 2021 Fourth Quarter and 2020 Fourth Quarter included $4.6 million and $5.2 million, respectively, of Relief Funds. See definition,

explanation and calculation of Adjusted EBITDA, a non-GAAP measure, in the schedule on pages 15 through 17.

Acquisitions in Fourth Quarter 2021

As previously reported, USPH acquired an approximate 70.0% interest in a leading provider of industrial injury

prevention services on November 30, 2021, with the founders and owners retaining the remaining interest. The purchase price for the approximate 70% equity interest in the industrial injury prevention services business was $63.2 million, not

inclusive of a $2.0 million contingent payment in conjunction with the acquisition if specified future operational objectives are met. This business generates approximately $27.0 million in annual revenue at a margin of approximately 20%. As

part of the transaction, USPH also agreed to the future purchase of a separate company under the same ownership that provides physical therapy and rehabilitation services to hospitals and other ancillary providers in a distinct market area.

The current owners have the right to put this transaction to USPH in approximately five years, with such right having a $3.5 million fair value at December 31, 2021, as reflected on the Company's balance sheet in Other long-term liabilities.

The fair value of this right will be adjusted in future periods, as appropriate, with any change in fair value reflected in the Company's income statement.

On December 31, 2021, the Company acquired a 75% interest in a three-clinic physical therapy practice in South

Carolina, with the practice's founder and owner retaining 25%. The purchase price for the 75% equity interest was approximately $3.7 million. The business generates more than $2.7 million in annual revenue and has approximately 31,000 patient

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.

In response to the Company's strong performance in 2021 and confidence in its future performance, the Company's Board

of Directors increased the Company's quarterly dividend on February 22, 2022, from $0.38 per share to $0.41 per share, an increase of 7.9%. The Board of Directors subsequently declared a quarterly dividend of $0.41 per share payable on April

8, 2022 to shareholders of record on March 14, 2022.

Management's Comments

Chief Executive Officer, said, "I have said this a lot over the past couple of years, but it is worth repeating... I am supremely proud of our

entire workforce, across our many partnerships, for the way they have responded to challenge after challenge these past 24 months. This year was no different and yet we were able to navigate through these challenges to create a

meaningfully forward year in revenue and profitability and a record year in terms of volumes across our clinic network. It is my distinct privilege to work with so many good people day in and day out. The resolve that has allowed us to

excel this past year will be firmly applied to our forward opportunities. Surrounding ourselves with great people who care deeply about all that they do continues to be the secret to our success."

Carey Hendrickson, Chief Financial Officer, said, "Our team delivered much stronger operating results in 2021 than

initially expected coming into the year, a true testament to the quality and resiliency of our team. We are pleased to raise our quarterly dividend rate once again in the first quarter of 2022, which we have raised each year since the

inception of our dividend in 2011."

Management Provides 2022 Earnings Guidance

Management currently expects the Company's Operating Results for 2022 to be in the range of $42.2 million to $43.5

million, or $3.25 to $3.35 per diluted share, which considers the following: