INVESTOR PRESENTATION

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INVESTOR PRESENTATION May 5, 2016
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Forward Looking Statements
This presentation contains forward-looking
statements, which involve numerous risks and
uncertainties. Included are statements relating
to opening of new clinics, availability of
personnel and reimbursement environment. The
forward-looking statements are based on the
Companys current views and assumptions and the
Companys actual results could differ materially
from those anticipated as a result of certain
risks, uncertainties, and factors, which include,
but are not limited to general economic,
business, and regulatory conditions competition
reimbursement conditions federal and state
regulation acquisitions clinic closures,
availability, terms, and use of capital
availability and cost of skilled physical and
occupational therapists and weather.
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Investment Highlights

• 512 outpatient physical and occupational therapy
  clinics across 42 states
• 4th largest owner/operator of clinics
• Only publicly-traded, pure play provider

Established Company

• US rehab market gt 15B in annual revenue
• Highly fragmented No company with gt10 market
  share
• Favorable demographics aging and active
  population

Attractive Market Dynamics
Proven Business Model

• Driven by organic growth and acquisitions
• Approximately 60 of clinics were de novo
  start-ups
• Partner with experienced physical therapists

Solid Financial Position

• Diversified payor mix, only 23 of revs from
  Medicare
• Strong cash flow and balance sheet

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National Footprint
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Growth Strategy
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Large and Growing Market Opportunity

• 15B U.S. rehab market with 3-4 projected
  annual growth
• Favorable demographics physically active, aging
  and obese population segments
• Healthcare delivery shifting towards lower cost,
  high quality outpatient providers
• Demand for physical therapy is projected to be
  one of the fastest growing sectors in the U.S.
  economy through 2016.
• - Wall Street Journal, July 14, 2009

• Jobs in healthcare supportare projected to
  experience even faster growth. The increased
  demand in this area stems largely from an aging
  populationoccupations that will likely grow in
  importance are physical therapists, physical
  therapist assistants
• Report from Executive Office of the Presidents
  Council of Economic Advisors, July 2009

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Competitive Landscape

• Highly fragmented U.S. outpatient rehab market
  with 16,000 clinics
• No company with gt10 market share
• USPh ranks third nationally
• Select Medical/Physio 1621 Clinics
• ATI
  600 Clinics
• USPh 512 Clinics
• Note Owned Clinics

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Focused Business Model

• Specialize in trauma, sports, work-related and
  pre and post surgical cases
• Partner with experienced physical therapists
• Drive volume via referrals
• Augment sales with marketing reps
• Historical focus on organic growth via lower cost
  de novo (start-up) clinics
• Strategic acquisitions structured like de novos
  as partnerships with significant ownership
  retained by founders

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USPH Partnership Advantages
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Video Placeholder
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New Clinics / Brands 2015
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Acquisition Strategy

• Completed 23 clinic group acquisitions since 2005
• Range in size from 3 to 52 clinics
• Acquisition criteria
• Owner therapists continue to operate clinics and
  retain significant equity interest
• Immediately accretive to earnings
• Further de novo growth opportunities

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Executive Management

• Chris Reading Chief Executive Officer
• Joined USPh as COO in November 2003
• Promoted to CEO and Board in November 2004
• Previously Senior Vice President of Operations
  with HealthSouth, managed over 200 facilities
  including OP, ASC, DX Imaging and rehab hospital
  operations.
• BS Physical Therapist
• Larry McAfee Chief Financial Officer
• Joined USPh as CFO in September 2003
• Promoted to EVP and Board in November 2004
• Previously served as CFO and President of both
  public and private companies
• BBA MBA
• Glenn McDowell Chief Operating Officer
• Joined USPh as Vice President - West Region in
  October 2003
• Promoted to COO in January 2005
• Previously Vice President of Operations with
  HealthSouth, managed 165 facilities including
  ASC, DX Imaging, OP and occupational medicine
  facilities.
• BS Masters Physical Therapy

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Diversified Payor Mix
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Workers Comp Push

• Both internally and through acquisition, USPh has
  
• expanded its industrially focused workers
  comp
• business.
• Grown to approximately 20 of Companys patient
  revenue
• Treat, educate, assess and prevent work related
  injuries
• National approach with local care delivery,
  1-800-centralized scheduling-fast, easy and
  convenient.
• Services provided
• job specific rehabilitation
• work hardening/conditioning
• physical work qualifications assessment
• post-offer pre-employment screening
• functional capacity evaluations (FCE)
• fitness programs
• ergonomic assessments
• onsite trainers and therapists

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Strong Cash Flow and Balance Sheet

• Both de novo clinics and acquisitions financed
  primarily through free cash flow
• USPH trailing twelve months ended March 2016
  adjusted EBITDA(1) of 52.8 million an increase
  of 12.9 from the preceding twelve months

(1) Adjusted EBITDA is defined as earnings before
interest, taxes, depreciation, amortization and
equity compensation expense.
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Dividend

• In 2011 initiated quarterly dividend
• Increased dividend in 2012, 2013, 2014, 2015 and
  2016
• Paid special dividend in December 2012
• Increased dividend in March 2016 by 13
• Dividends do not impact ability to continue to
  grow internally through de novo clinic
  development and externally through acquisitions
• Dividend seen as additional way to increase
  returns to shareholders as Company is under
  leveraged and has excellent net free cash flow

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Average Annual Rate of Return to Shareholders
29.4 Per Year
Current Management Team joined Company in Fall of 2003 and took over in late 2004.

Total Cumulative Return through December 31, 2015 including dividends is 44.03.
Total Cumlative Return Percentage is 360.6.
Average Annual Return - 29.4.

Market Cap Increase during time period is from 154.7 million to 666.7 million or by 512.0
million or 331.0.
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Year Results
December 31, 2014
December 31, 2015
Revenue Gross Margin Operating Income Net
Income EPS Adjusted EBITDA
331.3 M 78.4 M 47.3 M 22.3 M
1.80 50.3 M
305.1 M 76.2 M 45.8 M 20.9 M
1.71 46.3 M
8.6
2.9
3.3
6.8
5.3
8.7
Adjusted EBITDA is defined as earnings before
interest, taxes, depreciation, amortization and
equity compensation expense.
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First Quarter Results
12.5 21.7 25.1 27.9
26.5 24.6
Adjusted EBITDA is defined as earnings before
interest, taxes, depreciation, amortization and
equity compensation expense.
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Summary
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Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA(1)
From Continuing Operations Twelve Months Ended December 31 (amounts in 000s) 2015 2014 Twelve Months Ended December 31 (amounts in 000s) 2015 2014
Net revenues 331,302 305,074
Net Income attributable to U.S. Physical Therapy 22,279 20,853
Depreciation amortization 7,952 6,740
Interest, net (income) / expense 950 1,070
Equity/stock option expense 4,491 3,363
Provision for income taxes 14,653 14,274
Adjusted EBITDA 50,325 46,300
(1) Adjusted EBITDA is defined as earnings before
interest, taxes, depreciation, amortization and
equity compensation expense.
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Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Three Months Ended March 31 (amounts in 000s) 2016 2015 Three Months Ended March 31 (amounts in 000s) 2016 2015
Net revenues 86,908 77,241
Net Income attributable to U.S. Physical Therapy 5,328 4,166
Depreciation amortization 2,092 1,807
Interest, net (income) / expense 288 257
Equity/stock option expense 1,221 990
Provision for income taxes 3,523 2,777
Adjusted EBITDA 12,452 9,997
Adjusted EBITDA is defined as earnings before
interest, taxes, depreciation, amortization and
equity compensation expense.
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Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
Trailing Twelve Months Ended March 31 (amounts in 000s) 2016 2015 Trailing Twelve Months Ended March 31 (amounts in 000s) 2016 2015
Net revenues 340,969 312,548
Net Income attributable to U.S. Physical Therapy 23,441 20,791
Depreciation amortization 8,237 7,160
Interest, net (income) / expense 981 1,075
Equity/stock option expense 4,722 3,618
Provision for income taxes 15,399 14,112
Adjusted EBITDA 52,780 46,756
Adjusted EBITDA is defined as earnings before
interest, taxes, depreciation, amortization and
equity compensation expense.
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NYSE USPH