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HOUSTON, TX – U.S. Physical Therapy, Inc. (NYSE:USPH), a national operator of outpatient physical therapy clinics with a market capitalization of $1.11 billion, has disclosed new compensation arrangements for its key executives, according to a recent SEC filing. The company, which has maintained dividend payments for 15 consecutive years and currently offers a 2.46% yield, is trading near its 52-week low of $72.15. According to InvestingPro analysis, the stock is currently fairly valued based on its comprehensive Fair Value model. The company announced the adoption of incentive plans effective as of March 26, 2025, for senior management including the CEO, President, CFO, COO West, and EVP.
The new compensation framework includes both an Objective Long-Term Incentive Plan (LTIP) and a Discretionary LTIP, which allow executives to earn Restricted Stock Awards (RSAs) based on the company’s performance, particularly its Adjusted EBITDA, which currently stands at $88.67 million. The company has demonstrated solid performance with revenue growth of 11% over the last twelve months. Want deeper insights? InvestingPro subscribers have access to over 30 additional financial metrics and analysis tools. The Objective LTIP could grant the CEO up to 12,500 shares, with other executives eligible for varying amounts. These RSAs are set to vest quarterly over four years starting May 20, 2026, with full vesting by March 6, 2030.
In addition to the LTIPs, the company has established an Objective Bonus Plan and a Discretionary Bonus Plan for senior management. These plans offer the potential for cash bonuses or RSAs, again tied to performance metrics such as Adjusted EBITDA, and are to be awarded at the discretion of the Compensation Committee.
The Objective Bonus Plan allows for bonuses up to 100% of the CEO’s annual base salary and up to 75% for other named executives. The Discretionary Bonus Plan provides the opportunity for additional bonuses up to 50% of the executives’ annual base salary, based on individual performance goals.
The specifics of the incentive plans, including the conditions for the RSAs and performance goals, are detailed in the exhibits attached to the SEC filing. These plans are part of U.S. Physical Therapy’s strategy to align executive compensation with company performance and shareholder interests.
The filing indicates that these compensation plans are designed to incentivize and retain the company’s top management by aligning their interests with those of the company and its shareholders. The company’s approach reflects a broader trend in corporate governance that emphasizes performance-based compensation.
This announcement is based on the company’s recent SEC filing and provides a glimpse into the compensation strategies for executives at U.S. Physical Therapy, Inc. While the company trades at a relatively high P/E ratio of 39.66, analysts maintain a positive outlook, with expectations of continued profitability. For comprehensive analysis including detailed valuation metrics and growth prospects, check out the full company research report available on InvestingPro, part of their coverage of over 1,400 US equities.
In other recent news, U.S. Physical Therapy reported its fourth-quarter 2024 earnings, showing an earnings per share (EPS) of $0.52, which was below the forecasted $0.69. However, the company exceeded revenue expectations, reporting $180.45 million compared to the anticipated $174.79 million. Despite the revenue beat, the earnings miss has raised concerns about future profitability, especially with potential Medicare rate cuts on the horizon. The company is expanding its market presence by adding approximately 70 clinics and entering new states, including Wyoming and Pennsylvania. Analysts have noted the company’s strategic focus on increasing reimbursement rates and expanding home-based therapy services. For 2025, U.S. Physical Therapy projects EBITDA between $88 million and $93 million, although a 2.9% Medicare rate reduction could impact EBITDA by $5.7 million. The company is also piloting technology to improve efficiency and reduce overhead costs, which could address ongoing staffing challenges.
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