Jefferies 2015 Global Healthcare Conference Grand Hyatt New York

June 2-4, 2015

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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 Company’s current views and assumptions and the Company’s 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

• 495 outpatient physical and occupational therapy clinics across 42 states

• 3rd largest owner/operator of clinics • Only publicly-traded, pure play provider

Proven Business Model

Solid Financial Position

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

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

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Attractive Market Dynamics

• US rehab market > $15B in annual revenue • Highly fragmented; No company with >6% market share • Favorable demographics – aging and active population

Established Company

National Footprint

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Growth Strategy

Drive organic growth through de novo PT/OT clinic openings, utilize true partnership model

Maximize profits of existing facilities by growing patient volume; realize efficiencies through higher clinical productivity

Augment organic growth through strategic acquisitions

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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 support…are projected to experience even faster growth. The increased demand in this area stems largely from an aging population…occupations that will likely grow in importance are physical therapists, physical therapist assistants…” − Report from Executive Office of the President’s 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 >6% market share

• USPh ranks third nationally – Select Medical 1,023 Clinics – Physiotherapy Associates 575 Clinics – USPh 495 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

Accounting HR Real Estate Construction Purchasing Marketing Compliance Legal IT

Less Administrative Burden

No Personal Financial Risk Unlimited Earnings Potential Full Benefit Package Ongoing Guidance within

Semi-Autonomous Work Environment

More Resources

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New Clinics / Brands 2014

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As of 12/31/14

Acquisition Strategy

• Completed 20 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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50%

25%

20%

5%

Percentage of 2015 Net Patient Revenue (Through March 31, 2015)

Private Insurance & Managed Care

Medicare & Medicaid

Workers Comp

Other

Chart1

Private Insurance & Managed Care

Medicare & Medicaid

Workers Comp

Other

Percentage of 2011 Net Patient Revenue (Through September 30, 2011)

Percentage of 2015 Net Patient Revenue (Through March 31, 2015)

50%

25%

20%

0.5

0.25

0.2

0.05

Sheet1

Percentage of 2011 Net Patient Revenue (Through September 30, 2011)

Private Insurance & Managed Care50%

Medicare & Medicaid25%

Workers Comp20%

Other5%

To resize chart data range, drag lower right corner of range.

Sheet2

Sheet3

Strong Cash Flow and Balance Sheet

• Both de novo clinics and acquisitions financed primarily through free cash flow

• USPH trailing twelve months ended March 2015 adjusted EBITDA(1) of $46.8 million; an increase of 18% 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 and 2014 • Paid special dividend in December 2012 • Increased dividend in March 2015 by 25% • 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 23.1% Per Year

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* Current Management Team joined Company in Fall of 2003.

Total Cumulative Return through December 31, 2014 including dividends is $31.71. Total Cumlative Return Percentage is 259.7%. Average Annual Return - 23.1%.

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Increase in Stock Value & Dividends

Chart1

12/31/2014

12/31/2013

12/31/2012

12/30/2011

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/29/2006

12/30/2005

12/31/2004

9/30/2003*

12/31/2014

Increase in Stock Value & Dividends

41.96

35.26

27.54

19.68

19.82

16.93

13.33

14.37

12.25

18.47

15.42

12.21

Chart with Notes

* Current Management Team joined Company in Fall of 2003.

Total Cumulative Return through December 31, 2014 including dividends is $31.71.

Total Cumlative Return Percentage is 259.7%.

Average Annual Return - 23.1%.

Market Cap Increase during time period is from $154.7 million to $515.0 million or by $ 360.3

million or by 232.9%.

Chart with Notes

12/31/2014

12/31/2013

12/31/2012

12/30/2011

12/31/2010

12/31/2009

12/31/2008

12/31/2007

12/29/2006

12/30/2005

12/31/2004

9/30/2003*

Increase in Stock Value

41.96

35.26

27.54

19.68

19.82

16.93

13.33

14.37

12.25

18.47

15.42

12.21

Data

USPH Share Price, Dividends, Total Return

DatePricePrice ChangeDividendsReturn% Return

12/31/14$41.96$6.70$0.48$7.1820.4%1.00

12/31/13$35.26$7.72$0.40$8.1229.5%1.00

12/31/12$27.54$7.86$0.76$8.6243.8%1.00

12/30/11$19.68($0.14)$0.32$0.180.9%1.00

12/31/10$19.82$2.89$2.8917.1%1.00

12/31/09$16.93$3.60$3.6027.0%1.00

12/31/08$13.33($1.04)-$1.04-7.2%1.00

12/31/07$14.37$2.12$2.1217.3%1.00

12/29/06$12.25($6.22)-$6.22-33.7%1.00

12/30/05$18.47$3.05$3.0519.8%1.00

12/31/04$15.42$3.21$3.2126.3%1.25

9/30/2003*$12.21

11.25

* Larry joined USPH in September, Glenn in October and Chris in November, 2003 when the

Company was 11 years old; we took over managent in the Fall of 2004

Total Cumulative Return through December 31, 2014 including dividends is$31.71

Total Cumlative Return Percentage is259.7%

Average Annual Return23.1%

Market Cap Increase during time period is from $154.7 million to $515.0 million or by $360.39/30/0312,673,333$154,741,396154.7

million or by 232.9%.12/31/1412,272,609$514,958,674515

$360,217,278360.3

232.9%

Adj Close Discussion

Historical prices and adjusted close

This article describes where you can find historical price and adjusted close data within Yahoo Finance. This article also includes answers to the following questions:

What is the adjusted close?

How is the adjusted close determined?

Do you include dividends in the adjusted close?

Yahoo Finance offers access to historical price data in tabular format for several timescales: "Daily", "Weekly", and "Monthly". "Dividends Only" is also provided as filtering option. The historical prices feature includes notations for all splits and dividend distributions during the date range selected. Open, high, low, and close values are not adjusted for splits or dividends. An additional column, Adjusted Close, is provided to show the close price adjusted for all splits and dividends.

On a security's Historical Prices page, you can choose the date range of the data you would like to display, change the ticker symbol query, or switch to a different timeframe format. If the data requested is beyond the range of historical prices available through Yahoo Finance, all available data within the range will be displayed. Historical prices typically do not go back further than 1970.

There is currently no restriction to the amount of historical price data you can request, however, only 66 rows are displayed on a single page. To see all the data you've requested, either click the Next/Last links to view additional pages or the Download to Spreadsheet link at the bottom of the page. Note that dividend information is not included in the downloaded spreadsheet. It can, however, be downloaded separately when the Dividends Only radio button is selected.

Daily historical prices provide you with the daily open, high, low, close, and volume for each trading day in the chosen date range.

Weekly historical prices retrieve the open trade from the first trading day for the week, the high and low price quotes of the week, and the closing price on the last trading day of the week. The weekly volume is the average daily volume for all trading days in the reported week.

Monthly historical prices report the open trade from the first trading day of the month, the high and low price quotes for the month, and the closing price on the last trading day of the month. The monthly volume is the average daily volume for all trading days in the reported month.

Historical Dividends report the dividend distributed by a company and the ex-dividend date of the distribution.

Adjusted Close provides the closing price for the requested day, week, or month, adjusted for all applicable splits and dividend distributions. Data is adjusted using appropriate split and dividend multipliers, adhering to Center for Research in Security Prices (CRSP) standards.

Split multipliers are determined by the split ratio. For instance, in a 2 for 1 split, the pre-split data is multiplied by 0.5.

Dividend multipliers are calculated based on dividend as a percentage of price, primarily to avoid negative historical pricing. For example, when a $0.08 cash dividend is distributed on Feb 19 (ex-date), and the Feb 18 closing price was 24.96, the pre-dividend data is multiplied by (1-0.08/24.96) = 0.9968. Below is a detailed example of adjusted close calculations.

Example: Adjusted Close Calculations

2/13/03 Close = 46.99

2/14/03 Close = 48.30

2/18/03 Split = 2:1

2/18/03 Close = 24.96

2/19/03 Cash Dividend = 0.08 (ex-date)

2/19/03 Close = 24.53

Split Multiplier = 0.5

Dividend Multiplier = 1 - (0.08/24.96) = 0.9968

2/13/03 Adj. Close = 0.5 * 0.9968 * 46.99 = 23.42

2/14/03 Adj. Close = 0.5 * 0.9968 * 48.30 = 24.07

2/18/03 Adj. Close = 0.9968 * 24.96 = 24.88

2/19/03 Adj. Close = 24.53

A "Download to Spreadsheet" link is available at the bottom of each historical table. Selecting this option allows you to download the data as a .CSV file for use with a spreadsheet program. Dividend data can be separately downloaded by selecting the Dividends Only radio button and then clicking the Download to Spreadsheet link.

In the event you are in need of assistance with financial terminology, go to Yahoo's financial glossary.

First Quarter Results*

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Revenue

Gross Margin

Operating Income

Net Income

EPS

Adjusted EBITDA

$ 77.2 M $ 16.8 M $ 9.2 M $ 4.2 M $ .34 $ 10.0 M

Q1 2014

$ 69.8 M $ 16.6 M $ 9.5 M $ 4.2 M $ .35 $ 9.5 M

Q1 2015

• From continuing operations

• ** Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and equity compensation expense.

Revenue

Gross Margin

Operating Income

Net Income

EPS

Adjusted EBITDA

Year Results*

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$ 305.1 M $ 76.2 M $ 45.8 M $ 20.9 M $ 1.71 $ 46.3 M

December 31, 2013

$ 264.1 M $ 64.7 M $ 38.9 M $ 17.5 M $ 1.45 $ 38.6 M

15.5%

December 31, 2014

17.7%

18.1%

19.2%

17.9%

20.1%

• From continuing operations

• ** Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and equity compensation expense.

Summary

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Only publicly-traded, pure play operator of rehab clinics

Proven business model, driven by organic growth and acquisitions

Significant scale with national footprint

Large and growing market/favorable demographics

Strong cash flow and balance sheet

Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA

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

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From Continuing Operations

Trailing Twelve Months Ended March 31

(amounts in 000’s)

2015 2014 Net revenues $ 312,548 $ 271,069 Net Income attributable to U.S. Physical Therapy 20,791 17,869 Depreciation & amortization 7,160 5,597 Interest, net (income) / expense 1,075 650 Non-controlling interests 9,461 8,648 Equity/stock option expense 3,618 2,839 Provision for income taxes 14,112 12,682 Adjusted EBITDA before noncontrolling interests 56,217 48,285

Noncontrolling interests (9,461) (8,648) Adjusted EBITDA $ 46,756 $ 39,637

Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA

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

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From Continued Operations

Three Months Ended March 31, 2015 (amounts in 000’s)

2015 2014

Net revenues $ 77,241 $ 69,767 Net Income attributable to U.S. Physical Therapy 4,166 4,228 Depreciation & amortization 1,807 1,387 Interest, net (income) / expense 257 252 Non-controlling interests 1,985 2,095 Equity/grant expense 990 735 Provision for income taxes 2,777 2,939 Adjusted EBITDA before non-controlling interests 11,982 11,636

Noncontrolling interests (1,985) (2,095) Adjusted EBITDA $ 9,997 $ 9,541

NYSE: USPH

Slide Number 1Forward Looking StatementsInvestment HighlightsNational FootprintGrowth StrategyLarge and Growing Market OpportunityCompetitive LandscapeFocused Business ModelUSPH Partnership AdvantagesNew Clinics / Brands 2014Acquisition StrategyExecutive ManagementDiversified Payor MixStrong Cash Flow and Balance SheetDividendSlide Number 16First Quarter Results*Year Results*SummaryReconciliation of Non-GAAP Financial Measures – Adjusted EBITDAReconciliation of Non-GAAP Financial Measures – Adjusted EBITDASlide Number 22