Good day, and thank you for standing by. Welcome to the U.S. Physical Therapy First Quarter 2022 earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. In order to ask a question during the session, please press the Star key followed by the number One on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then zero. I'd now like to turn the call over to Chris Reading, President and CEO. Please go ahead, sir.
Okay. Thank you. Good morning and welcome everyone to our U.S. Physical Therapy first quarter 2022 earnings call. With me in the office and on the line include Carey Hendrickson, our Chief Financial Officer, Graham Reeve and Eric Williams, our Co-Chief Operating Officers, Rick Binstein, our Executive Vice President and General Counsel, Jake Martinez, our Senior Vice President and Controller. Before we begin today with some prepared comments, we need to cover a brief disclosure statement. Jake, if you would please.
Thank you, Chris. This presentation contains forward-looking statements which involve certain risks and uncertainties. These forward-looking statements are based on the company's current views and assumptions. The company's actual results may vary materially from those anticipated. Please see the company's filings with the Securities and Exchange Commission for more information.
Thanks, Jake. I'm gonna start this morning with some highlights and color on the quarter, as well as some commentary on the operating environment. While we wrapped up the quarter where we expected to be, we did have a particularly slow start to the year with January, particularly to February, meaningfully impacted as a result of the Omicron virus, which produced a pandemic high number of our team in quarantine. Again, this was especially prevalent in January. Of course, we dealt with the usual challenges with impactful winter weather. Despite that, we rallied hard in March with very good visit and referral numbers and a rather dramatic drop in quarantines and exposures. Both of those good trends have continued through the present period.
On the visit front, we closed the quarter at 27.9 visits per clinic per day, which is up from the same period in 2021. Our team produced a really nice same store visit growth number at 5.9%. I just wanna call out to our partners, our sales staff, and our clinical staff. That's as good a number as I can remember we've ever hit in a quarter. Considering all of our challenges even to the start of this quarter, that's just an exceptional number. That was offset slightly on the revenue side in part by Medicare pricing adjustments announced earlier in 2021, but which became effective at the start of this year. In spite of that, our Adjusted EBITDA grew 14.2% on overall volumes of 12.2%, which was over one million visits.
I believe that that's the most visits we've ever produced in the first quarter for our company. That drove Physical Therapy revenue up by 10.6%. Considering the challenging labor market, I feel like our team across all fronts did a spectacular job on staff engagement and management. Our total cost per visit was up less than 0.5% year-over-year in our mature facilities, which I think is really amazing considering the broad environment right now. Another bright spot was in our injury prevention business, which we continue to invest in since our first acquisition beginning March 2017. Our IIP revenues for the first quarter increased 90% to $19.1 million.
Of that increase, $6.8 million related to the acquisition we completed at the end of November of last year. Excluding that acquisition, our injury prevention revenues increased 22.4%. Again, very strong number there and great team, so thank you. The total company revenue grew by 17.2% for the quarter, despite, as I mentioned earlier, a slow start to the year. While our operating costs were up as a percent of revenue in Q1 as expected, especially with the rate impact, our biggest controllable cost and salaries and related costs held up extremely well in our facilities, again, up just 40 basis points compared to 2021 Q1. In our non-mature, acquired and new facilities, I just wanna make sure everybody remembers those often.
We had a great development year last year, so we had a lot of those. They often come in at a lower margin than our aggregate mature facility margins. Of course, that was reflected in this recent quarter. I also wanna remind everyone that the most recent injury prevention acquisition had a lower margin profile than that of our legacy business. The combination was expected to bring our aggregate margins in that segment down somewhat also. I think the team has proven that in spite of whatever comes, margin pressure, you know, weather, pandemic, it certainly makes things more challenging. We've been proven to be able to grow through these types of challenges as we continue to demonstrate the strengths of our model and execute on our opportunity at hand.
These opportunities include development, which I will tell you is very strong right now, very busy, which include the earlier announced deal with Chad Madden and Mike Gilbert, Pennsylvania, with a number of growth opportunities surrounding that partnership beginning to present themselves. Additionally, we have opened 12 de novo facilities so far this year, plus our strongest PT partnerships, so we're off to a good start there. We're very, very busy on the acquisition discussion side of our opportunity as well, maybe as busy as we've ever been.
While the environment is challenging for all healthcare providers right now, it's clear that over these past couple of years that we have the resources as well as the balance sheet flexibility to withstand these challenges and to grow through them and to continue to be a great home for like-minded partners who see opportunities to further expand their footprint and who believe in the future of our profession and the broad benefits that the entire system derives from our services. Where we can become a valued partner with those private practices and their partners to help them thrive at a time when others are struggling to forge ahead. Our team has proven we are well equipped to do so over the long run, regardless of these broader challenges. We have a lot of information to cover.
Carey, if you would, hit the financials in a little bit more detail, and then we'll open it up for questions.
Will do. Thank you, Chris, and good morning, everyone. As Chris noted, our momentum built through the first quarter once we moved past the effects of Omicron, which we felt primarily in January. As a result, we posted operating results that were higher than the first quarter of the prior year, despite the Medicare rate reductions that were implemented on January 1st. For the first quarter of 2022, we reported operating results per share of $0.65 as compared to $0.64 in the prior year's first quarter. As Chris noted, our reported Adjusted EBITDA was $17.9 million for the first quarter of 2022, an all-time first quarter high for the company, and a $2.3 million or 14.2% increase over the prior year, which was the previous first quarter high.
Our physical therapy patient volumes per day per clinic were 27.9 in the first quarter, which is also a record high first quarter volume level for the company. That's 3% higher than last year's 27.1 average visits per clinic per day. By month, our average visits per clinic per day for all clinics were 25.9 in January, 28.1 in February, and then 29.5 in March. You'll recall that March of last year is when we reached that 29 level in volume for the first time in our history, and we continued at that level or greater for the rest of 2021. We're happy to see March of this year above 29 again, and April printed well also.
Our net rate for our physical therapy operations was $103 in the first quarter of 2022, which compares to $104.72 that we reported in the first quarter of last year, which was our highest quarterly net rate in 2021. In the most recent fourth quarter of 2021, our net rate was $103.53. Our first quarter net rate is down 0.5% on a sequential basis from the fourth quarter. Our first quarter 2022 net rate reflects the 0.75% Medicare rate cut and a 15% decrease in rate for care provided to Medicare patients by a physical therapy assistant, both of which went into effect of January this year.
As a reminder, and as we've disclosed previously, the sequestration relief that we've had since the beginning of the pandemic will start to phase out in the second quarter when Medicare rates will decrease by 1%, and then with the remaining 1% of sequestration rate relief coming out in the third quarter. Our total visits increased by almost 116,000 in the first quarter to 1,063,519 visits. That's an increase of 12.2% from the first quarter of 2021 to the first quarter of 2022. The increase is due to both organic same-store growth and from the addition of new clinics.
As Chris noted, our same-store volumes increased 5.9% in the first quarter versus the prior year, and we had 40 more clinics on average open in the first quarter of 2022 than in the first quarter of 2021. Our physical therapy revenues were $110.4 million in the first quarter of 2022, which was an increase of 10.6% from the prior year. Revenues for the industrial injury prevention business were at an all-time high $19.1 million in the first quarter of this year, which was a 90.5% increase over the first quarter of 2021. As Chris noted, even excluding our IIP acquisition in November of 2021, IIP revenues still increased 22.4%.
Our team also continues to do an excellent job managing our costs and keeping our cost increases aligned with growth in revenue and visits. Our operating costs were $105.1 million in the first quarter of 2022, or 79.8% of net revenues, which was up from $86.5 million in the first quarter of 2021. That was an $18.6 million increase in cost from the first quarter the prior year, and that was mostly due to the significant increase in visits that we had year-over-year. When you look at it on a same store basis, our physical therapy operating costs per visit were $81.08 in the first quarter of 2022, up only 0.4% from the first quarter of 2021.
Our total physical therapy operating costs were $83.09 in the first quarter of 2022, up only 2.4% from $81.18 per visit in the first quarter of 2021. Looking specifically at salaries and related costs, our salaries and related costs for all operations were 57.1% of revenues in the first quarter of 2022, only slightly higher than our 56.8% for the first quarter of 2021. That represents only a 0.5% increase year over year in salaries as a percent of revenue. For our physical therapy operations only, salaries and related costs were $58.74 per visit in the first quarter of 2022, up only 1.6% from $57.83 in the first quarter of 2021.
That was down from $59.20 in the fourth quarter of 2021. Our gross profit was $26.6 million in the first quarter of 2022, which compares to $25.9 million last year. Our gross profit margin was 20.2% in the first quarter, which compared to 23% in the prior year. Our margin was impacted by the Medicare rate reductions, and as Chris noted, the lower margin profile of the IIP business that we acquired in November of last year, which had a margin of 18.3% in the first quarter. Our corporate office costs were $11.6 million in the first quarter of this year as compared to $10.9 million last year.
As a percent of revenue, our corporate costs were 8.8% of revenues in the first quarter of 2022, which was down from 9.7% in the first quarter of last year. A new line on our income statement you'll know was our other income includes a gain of $603,000 related to the revaluation of a put right liability. As part of the November 2021 IIP acquisition, USPH and the founders of that acquired business agreed to the right for USPH to purchase a second phase of that business in five years. We have a liability on our books that represents the value of that put right. The put right must be revalued each quarter with any change in value recorded as a gain or loss in other income.
The total liability was originally $3.5 million and it's now $2.9 million after recording this change in value in this first quarter. Because it's not associated with our ongoing operations, we've adjusted this gain out of our operating results and will continue to do so going forward, whether it's a gain or a loss in any given period. Our net income attributable to non-controlling interest was $3.2 million in the first quarter of this year, which is less than the $3.7 million in the first quarter of last year, even though our operating income from our PT and IIP businesses was higher in the first quarter of this year than last year.
As a percent of such profits, our non-controlling interests were 12.0% in the first quarter of 2022, as compared to 14.3% in the first quarter of 2021. The reduction in the non-controlling interest percentage is due to the purchase of non-controlling interest from existing partners. In 2021, we purchased $30 million of non-controlling interest from those existing partners, and we purchased another $2.3 million in the first quarter of this year. Finally, our balance sheet remains in an excellent position. Our cash generation remains strong. We ended the quarter with $118 million drawn on our $150 million revolving credit facility, which includes $11.2 million that was drawn on March 31 to fund the acquisition of the Madden and Gilbert Physical Therapy.
Our net debt at March 31 was $102 million, which includes the $118 million on our line of credit, $4.2 million in deferred payroll taxes under CARES, and $4.1 million in notes payable, net of our $24.2 million in cash. That was $102.1 million this first quarter. Our net debt position at December 31 was $94 million. In the first three months of 2022, we funded that $11.2 million acquisition. We invested $2.5 million in fixed assets, and we purchased non-controlling interest from our partners of $2.3 million. All of those things together totaled $16.1 million, but our net debt position increased only $8.1 million.
As Chris noted in his comments and the press release, and also this morning, we expect to have another very productive year on the acquisition front. Our low leverage and our strong cash generation provide us with tremendous flexibility and sufficient capacity for the right growth opportunities as we identify them. Now, Chris, I'll turn the call back to you.
Great, Carey. Thank you. Operator, we'll go ahead and open it up for questions.
At this time, if you would like to ask a question, please press the Star and One on your touch tone phone. You may remove yourself from the queue at any time by pressing the Pound key. Once again, that is Star and One to ask a question. Our first question will come from Larry Solow with CJS Securities.
Morning, Larry.
Good morning.
Hey, good morning, guys. I guess first question, Chris, Carey, very good volumes, you know, good start to the year. A little bit of an easier comp. I feel like things really normalized sort of in March of last year. I think as we kinda head out now, it looks like, you know, Q2 and beyond, you were sort of back at pre-pandemic levels and growing.
How do you feel just, you know, I know you don't give exact guidance on sort of volume, you know, growth, but do you think you can still maybe not get 6% volume growth from, you know, from Q2 on, but do you feel like you could still see, you know, historical 2%-3% volume growth, you know, as we look out this year and maybe even, you know, the next few years?
Yeah, Larry, I think, you know, I'll go on record as saying over a period of time, I think we can continue to grow volumes. I'm gonna try to avoid getting into a quarter-to-quarter speculation on what we're gonna do just yet. We're gonna try to avoid that. You know, the volume that we've seen accelerate in the spring has continued and we're happy about where we are right now.
Okay. Just on pricing, I know we started to feel some of the Medicare hit this quarter. It'll be a little bit more. I guess we'll see a little, another step down, I guess, right, Carey, in Q2.
That's right.
Hopefully things should sort of, I think maybe a little easing even in Q3 right now, everything. We should be hopefully relatively flat-ish for this year. How about just on the private side, any work with private insurance, try to, you know, maybe capture better rates than you're getting on the government side? Because clearly, if you look across industries, you know, most rates and reimbursements are going way up. So do some of your private insurance providers get that and, you know, they may be more, you know, easy, easier to negotiate with? I know nothing's ever easy, but maybe easier.
Yeah, I wouldn't say it's an easy negotiation, that's for sure. We are working hard on that, Larry. That's something that I've actually taken on as a task with our contracting team, and we are working very hard at that and staffing up to make sure that we have enough resources to really go at these rate negotiations. You know, the large payers have a lot of leverage in these discussions, and so we're working hard to provide some leverage on our side in those negotiations. You know, we're hopeful for some increases. We have seen some this year, and we're hopeful to get some more meaningful ones as we go through the year.
Okay.
That's a long-term play.
Yeah, no, absolutely. In terms of margin, while you got the mic there,
Yeah
... you know, salaries and related costs were obviously like, as you said, barely up year-over-year on a percent of revenue.
Yeah
Your overall gross margin I know was skewed downward. You spoke to the lower, you know, lower mix in industrial services, and obviously you're losing some revenue on the Medicare side.
Right.
How come we saw the biggest impact in terms of year-over-year or as a percentage of revenue on the sort of rent and, you know, contract labor, other line? Is that-
Yes
Was that skewed more because of, you know, the mix? Is that an industrial services driven line, or was it more temporary labor early on because of COVID? Or maybe you can just help us parse that a little bit.
Yeah. That was primarily what you said there at the end. It was the contract labor associated with what was happening at the first part of the year. That was a big reason for the increase. And then we do have some expenses that are coming back, you know, gradually as we go along. Travel, for instance. We still, in the first quarter of last year, were not traveling very much. That has begun to increase this year as well. So that's why that particular line. You k now, the first quarter is always typically our lowest margin quarter anyway. Then we had the new IIP business, which is at 18.3%, which is lower than the overall average.
I expect that margin to increase as it has in previous years in the quarters ahead and to be probably more in the low-to-mid 20s% for the rest of the year.
Okay, great. Just lastly on the workforce industrial prevention business, obviously, you know, great reported growth and, you know, very impressive on the organic side. Don't expect 20% growth to continue, but was there anything in this quarter? Was it just sort of some pent-up demand? You know, are you seeing things starting to line up more for you? Any thoughts on that, Chris?
Yeah. I think it's gonna get better as the world normalizes. You know, while there's still virus out there, I mean, I think people are committed to getting back their life back to normal. Then I think on our team's worked really hard, lots of you know from lots of different angles on filling open positions on contracts that we had started but didn't have staffing for, and I think that's helped us some too. That's gonna continue to be somewhat of a fight, but we've seen some progress in that area. I think the combination has been everybody's worked really hard, and we've gotten some positions filled, and we're able to generate some revenue as a result.
Got it. Great, guys. I appreciate all the color. Thanks so much.
Thanks, Larry.
Thank you, Larry.
Thank you. Our next question will come from Steph Wissink with Jefferies.
Hey, Steph.
Hi, Steph.
Hi. Good morning, everyone. I wanted to just go back a little bit to the volume lift that you saw in the quarter. It was quite impressive. Just seeing if you're doing anything different with respect to training around referrals or activating your local networks, maybe putting some marketing back into the market. Trying to understand a little bit about kind of that as a success case study.
How about, I've got Eric Williams and Graham Reeve on the phone. You guys wanna speak to that?
Yeah. This is Graham. We've got currently about 75 total sales reps out there in the market, and they're serving about 500 or 470 of our clinics. That number has increased just slightly. But we have got a big focus on sales and also direct-to-consumer marketing that we're working on distinctly to try and drive volume. We're having some success there as well.
Yeah, I'd add to.
To lead into my follow-up. Oh, go ahead. I'm sorry.
Go ahead, Steph.
Go ahead, Eric.
Please go ahead.
I was gonna just make the comment and reiterate what Graham said. There is a focus here, certainly in terms of marketing and direct-to-consumer, which has been a major difference for us in a lot of markets.
Yeah. We've heard of some of that. I wanted to double-click on that and just understand it's not conventional necessarily to see a lot of direct to consumer. Maybe talk to us about what kinds of media you're finding to be most successful. Are you trying new things? Do you have good kind of data representation where you can get validation? Just share with us a little bit about that mechanism, direct to consumer versus, maybe some of your past marketing approaches.
Yeah. Sorry. Do you wanna say something, Eric, or you want me to go ahead.
Go ahead, Chris.
No, go ahead. Go ahead, Eric.
Yeah, apologize. We're all in different locations. I'm out actually on the road this morning, so apologize for the delay there. There's a lot of social media focus there as well and tapping into the local market here. So traditionally, most of our physical therapy business has grown through referral relationships with physicians. We've contracted with some outside organizations that actually have terrific expertise in this area. The markets where we've really focused on this is Detroit market and the Ohio market, which is kind of leading the rest of the group right now in terms of those direct-to-consumer marketing efforts.
All right. Very helpful. Thank you.
Thank you. Our next question will come from Michael Petusky with Barrington Research.
Hey, Mike.
Hi, Mike.
Hey, good morning, guys. Hey, I just wanna clarify because I wanna make sure I understand. In the rent, clinic and other line, that's where you guys include all your PRN therapy hours. Is that a cost, is that right?
No, not PRN. That would be, I think, Carey, just contract.
Contract labor. Just contract labor.
PRN would still be in the salaries and wages.
Got it.
Anything that's recurring would be in that salaries and wages line, and anything that's absolutely temporary would be, you know, outside of that.
That's right.
Okay. You guys did a really good job on the salaries and related then. That's terrific. All right.
Well, our partners, our staff, our operations team, you know, together our recruiters doing, you know. Look, it's hard right now but I do think they did a really good job, and I appreciate the comment.
Yeah. Given the quarantine, given the labor wages, it, you know, seems like an outstanding job. All right, so going back, Chris, to your comment on M&A, and I think you said maybe as busy as ever in terms of the discussions, which I assume, you know, revolves around the number of discussions you're having. I'm just curious, are you noticing, you know, just in terms of all that's sort of gone on in the space with labor challenges and, you know, reimbursement challenges, et cetera, you know, are there? Are you seeing larger deals out there? A lot of smaller deals? Any change in just the types of assets, businesses you're seeing that are open to having a discussion?
It's more, Mike, it's honestly more of both. Larger and, you know, just there's plenty of, always plenty of small ones. I would characterize our discussions as being more people that we've been in touch with over a long period of time, and now they continue to see maybe for reasons that you pointed out in their markets, not for them so much, but opportunities that are driven by smaller practitioners maybe wanting to join up a bigger team. I know that's been the case with our Madden and Gilbert acquisition that we did earlier this year. They've gotten a lot of calls and said, "Hey, you know, you're a great provider, and you know the market and what's going on.
You know, let's talk. Most of our discussions are with people that still see a lot of opportunity in the market but want some resources to help them realize it without, you know, meaningfully changing their cultural bent to do it. We're just very unique compared to the other acquirers in the market right now with respect to those attributes. I think it's gonna pay dividends for us over time.
Just last quick one. The M&A or the revenue associated with the injury prevention asset that you guys acquired was a little bit above what I had anticipated. Is that business trending up above what you guys had internally expected, or is it about in line?
Yeah, it's actually a little below.
Oh, really? Okay.
It's doing well, and we feel like over a period of time it's gonna do terrific. A lot of their business has been heavily concentrated in the auto industry, which you know has been heavily affected by the chip shortage and by the shutdown lockdown in China and other places. They're fighting their way through, and they're doing a great job. In aggregate, the combined business of all of it, you know, is doing well, and we expect it to, you know, to continue forward.
Yeah. Their momentum grew as the quarter went along as well. January and February were slow for them. March was much closer to our expectations. Yeah.
Given all the headwinds, I actually expected it to be a rougher quarter for that business. Anyway, thanks, guys. Well done. Thanks.
Thanks, Mike.
Thank you. Our next question will come from Matt Larew with William Blair.
Morning.
Good morning.
Yeah, good morning, everyone. Chris, if I think about productivity, sort of visits per day per clinic, if I dial back a decade ago, you were around 22, and kind of emerging from COVID, you've now hit, you know, sort of record levels of productivity around 29-30. Just to then. If I think about the physical footprint of one of your locations and the number of typical staff, clinicians that you employ, what's sort of the long-term growth opportunity there? At what point do you hit just sort of a physical space limitation or a clinical staff limitation?
Yeah. Well, the clinical staff limitation happens in every sized clinic just because you gotta be able to, you know, find more staff if you're growing. We deal with that regardless. The physical limitation on the facilities, it's really not an issue. We expand or relocate, you know, somewhere between 12, 15, and 16 facilities a year. A lot of times those are adjacent expansions, sometimes they're not. Sometimes they're, you know, a separate part of town. We need a bigger footprint. It's a significantly small number compared to the majority of our facilities where we can stretch hours, we can open earlier, we can close later. I would venture to say most of our facilities don't probably have the hour spread that even right now I would like them to have.
There's certainly room there. There's room almost everywhere, or you really bump into a physical limitation perspective. That's not the governing factor for us.
Okay. Speaking of governing factor, you talked about de novo being somewhat limited by, you know, staffing as well as, like, the ability to get contracted permits. You mentioned today 12 open year to date, so it sounds like maybe that's gone away. Just in terms of de novo pipeline for the balance of the year, do you feel like you have both the staffing and whatever logistics necessary to keep the pace up?
Yeah. Yeah, we're gonna have a good de novo year. You know, part of it was we had a lot of facilities in January with the slow start, and so when you look at the cost in income versus revenue, you know, it was upside down, which happens with de novo facilities. They'll pick up steam and we're into a good part of our year right now, but we should have a good de n ovo year this year, Matt.
Okay. Last one will just be, you might have mentioned last quarter sort of a bigger opportunity for IIP this year was trade shows that are reopening. I know I've been to a few conferences in the last couple months. I imagine your folks have as well. I guess, what does the trade show schedule look like? Anything that's kinda helping with traction, as you're out there?
Yeah. You know, I'm gonna kick this over to Eric. Eric, you're a little bit closer to, you know, at least one of our IIP teams that does a lot with trade shows. I don't know if you know what that looks like, right?
Yeah, we started going to those in person again, and had a presence at a couple of shows, and they have a full slate of trade shows they'll be attending throughout 2022.
Yeah. Thank you.
All right. Thanks, guys.
Thanks, Matt.
Thank you.
Thank you. Our next question will come from Mitra Ramgopal with Sidoti & Company.
Hey, Mitra.
Yes. Hi. Good morning, everyone. Thanks. First, Chris, I was just wondering if you'd maybe give us a sense of the competitive environment, as if you're seeing maybe some incremental volume as a result of maybe some of your competitors not doing so well?
You know, Mitra, it's hard for me to measure it really good as the weather's improved, as you've heard. Where exactly that comes from, you know, I think for who we're moving share from, it's really, I mean, it's really tough for me to say. I think throughout the pandemic, we probably moved share from hospitals, and that's probably continuing. We have a great team. I was gonna say we didn't really pull back. We pulled back in marketing team just with furloughs, you know, back pretty quickly and as offices opened up. That's been back for a long time now. I just think we have a great team. I think they're really committed to what they do. Our partnerships forever.
We're very connected to these marketplaces, and they do a great job as well. I think compared to just, you know, what I would put air quotes around staffing, newer groups are thrown into for trying to get 100 de novos open in a year or something like that, then that's tough to do. I mean, that's really hard to do because the relationships aren't there, and it's just a whole different dynamic. Our folks are embedded. They're there for the. You know, it makes a difference.
No, that's great. Thanks for the color there. On the IP side, obviously, you did a really nice size deal a few months back. Just curious in terms of, well, a couple things on any concern that, you know, a lot of the staffing, etc., if that might maybe provide somewhat of a slowdown or maybe make you a little more cautious as you look to expand in this space.
It doesn't make me more cautious. I think long term, we really like the business. It does what it's supposed to do. It keeps people working in a really healthy way. It assists, you know, big self-insured companies. Stickiness to that business is very good, overall. We like it. We're not, you know, looking at the environmental issues from, you know, for us in terms of changing our flow. You know, there are tens of thousands of physical therapy clinics across the country and not as many targets on the IIP side. We're having good conversations, and we'll continue. As we have in the past, both in PT and injury prevention, you know, we're selective, and we'll continue to, you know, look at what we think are the best long-term opportunities for the company.
In terms of pricing, it's tough to say. In general, our blended pricing for injury prevention's been less. The last deal we did was, you know, higher. I don't know that we have a long-term trend that, you know, clearly demonstrates where that is. Pricing on the PT side is competitive there, and it's not cheap, but we're getting good things done and, you know, it's a good PT company and you always give us a call. Yeah, it's a healthy market.
Okay. No, that's great. Thanks for taking the questions, and congrats on a nice quarter.
Yeah. Thanks, Mitra. Appreciate it.
Again, that is star one to ask a question. All right, we currently have no questions in the queue at this time.
Okay. Well, listen. Thank you, everybody. Great questions. Appreciate your participation this morning. We've got a lot of work to do, and we appreciate your support. Thank you, and have a great day.
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