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 2022 Results

Patient Volume Remains Strong

Company Provides 2023 Guidance and Raises Dividend

Houston, TX, February 22, 2023 - 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 ("IIP") services, today reported results for the three months and year ended December 31, 2022 ("2022 Fourth

Quarter" and "2022 Year", respectively).

FULL YEAR AND QUARTER HIGHLIGHTS

**The Company is still completing its evaluation of the income tax expense for the

2022 Fourth Quarter and 2022 Year. As a result, the Company's presentation of earnings per share, operating results per share and its provision for income taxes may change as a result of this evaluation. Set forth below are the Company's

current estimates for these amounts. The Company will promptly announce any changes upon the completion of the evaluation.

Management's Comments

Chris Reading, Chief Executive Officer, said, "I am proud of the work by our partners, clinicians, and leadership team despite significant macroeconomic headwinds present in the second half of 2022. We are

making good progress around contract renegotiations, development has been strong, and staffing has begun to improve. Volumes to start the new year have been ahead of our initial expectations. Our team will continue to work on all these

important items as we go forward in 2023."

Carey Hendrickson, Chief Financial Officer, said, "We are pleased to raise our quarterly dividend rate once again in the first quarter of 2023, which we have raised each year since the inception of our dividend in 2011. While we again have

some Medicare rate headwinds as we enter 2023, we have tremendous confidence in our team to produce EBITDA growth this year through increased volumes, continued momentum in rate renegotiations and an ongoing focus on making our operations as

efficient as possible."

Fourth Quarter 2022 As Compared to Fourth Quarter 2021

**As noted above, the Company is still completing its evaluation of the income

tax expense for the 2022 Fourth Quarter and 2022 Year. As a result, the Company's presentation of earnings per share, operating results per share and its provision for income taxes may change as a result of this evaluation. Set forth below

are the Company's current estimates for these amounts. The Company will promptly announce any changes upon the completion of the evaluation.

2022 Year As Compared to 2021 Year

**As noted above, the Company is still completing its evaluation of the income tax expense for the 2022 Fourth Quarter and 2022 Year. As a result, the Company's presentation of earnings per share,

operating results per share and its provision for income taxes may change as a result of this evaluation. Set forth below are the Company's current estimates for these amounts. The Company will promptly announce any changes upon the

completion of the evaluation.

Other Comprehensive Income

The Company entered into an interest rate swap agreement in May 2022, which became

effective on June 30, 2022. The maturity date of the swap agreement is June 30, 2027. It has a $150 million notional value adjusted concurrently with scheduled principal payments made on the term loan. Beginning in July 2022, the Company

pays a fixed one-month SOFR rate of interest of 2.815%. The total interest rate in any period also includes an applicable margin based on the Company's consolidated leverage ratio. In the 2022 Fourth Quarter and 2022 Full Year, the

Company's interest rate including the applicable margin was 4.665%. Unrealized gains and losses related to the fair value of the interest rate swap are recorded to accumulated other comprehensive income (loss), net of tax. The fair value

of the interest rate swap at December 31, 2022, was $5.4 million, which has been included within Other assets (current and long term) in the accompanying Consolidated Balance Sheet. The impact of the interest rate swap on the accompanying

Consolidated Statements of Comprehensive Income was an unrealized loss of $0.4 million, net of tax, for the 2022 Fourth Quarter, and an unrealized gain of $4.0 million, net of tax, for the 2022 Year.

The Company's Board of Directors

increased the Company's quarterly dividend on February 21, 2023, from $0.41 per share to $0.43 per share, an increase of 4.9%. The Board of Directors subsequently declared a quarterly dividend of $0.43 per share payable on April 7, 2023, to shareholders of record on March 10, 2023.

In March 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 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. For the 2021 Year, the Company recorded income of approximately $4.6 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.

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

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 to receive MAAPP

Funds from Centers for Medicare & Medicaid Services in April 2020. The Company recorded the $14.1 million in advance payments received as a liability. During the quarter ended March 31, 2021, the Company repaid the MAAPP funds of $14.1

million rather than applying them to future services performed.

Management Provides 2023 Earnings Guidance

Management currently expects the Company's Adjusted EBITDA for 2023 to be in the range of $75.0 million to $80.0 million. The range considers that the previously announced 2% reduction in the Medicare rate, which we estimate to impact our

revenues by $3.1 million, as well as the 2023 impact of the phase-out of sequestration relief during 2022, which we estimate to be $1.2 million, are expected to be offset by increases in commercial rates from renegotiations completed in

2022 and those anticipated to be accomplished in 2023.

Please note that the earnings guidance represents projected Adjusted EBITDA from existing operations and excludes future acquisitions. The annual guidance figures will not be updated unless there is a material development that causes

management to believe that Adjusted EBITDA will be significantly outside the given range.

Fourth Quarter and Year Ended 2022 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 23, 2023, to discuss results for the Company's 2022 Fourth Quarter and Year ended December 31, 2022. Interested parties may participate in the call by dialing (866) 952-8559 Primary or (785) 424-1743 Alternate and

entering reservation number USPHQ422 approximately 10 minutes before the call is scheduled to begin. To listen to the live call via webcast, 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 23, 2023, 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

the multiple effects of the impact of public health crises and epidemics/pandemics, such as the novel strain of COVID-19 and its variants, for which the total financial magnitude cannot be currently estimated;

changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;

revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;

changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients;

compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply;

competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and

other intangible assets;

the impact of COVID-19 related vaccination and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of operations;

changes as the result of government enacted national healthcare reform;

business and regulatory conditions including federal and state regulations;

governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs;

and earnings expectations;

legal actions, which could subject us to increased operating costs and uninsured liabilities;

general economic conditions, including but not limited to inflationary and recessionary periods;

availability and cost of qualified physical therapists;

personnel productivity and hiring, training and retaining qualified personnel;

competitive environment in the industrial injury prevention services business, which could result in the termination or nonrenewal of contractual service arrangements and other adverse financial consequences for that

acquisitions, and the successful integration of the operations of the acquired businesses;

impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest (minority interests);