U.S. Physical Therapy ( USPH) operates about 350 clinics for outpatient physical and occupational therapy. These clinics provide preventive and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, as well as treatment for neurologically related injuries and rehabilitation of injured workers. The company was founded in 1990 and currently operates in 42 states. U.S. Physical Therapy has been rated a buy since April 2008. This rating is driven by a number of strengths, such as its strong growth in revenue, earnings per share and income, as well its largely solid financial position and increasing cash flow from operations. For the second quarter of fiscal 2008, the company reported revenue growth of 33.6% year over year. This revenue growth helped the company achieve an EPS growth of 20.0% compared with the same quarter one year ago. The company has continued a pattern of positive EPS growth over the past year and we feel that this trend should continue. Net income also increased, rising 24.0% from $2.30 million in the second quarter of fiscal 2007 to $2.86 million in the most recent quarter. The company appears to manage its debt level well and demonstrates the ability to cover its short-term cash needs. Additionally, its net operating cash flow increased significantly in the second quarter, rising 251.85% to $6.06 million. During the second quarter, U.S. Physical Therapy acquired nine new locations in Maryland and Pennsylvania and opened seven new clinics. The company also announced the formation of a new venture, OsteoArthritis Centers of America, for the treatment of osteoarthritis, degenerative joint disease and other musculoskeletal conditions. The first of these new centers opened in June in Wellington, Fla. Bear in mind that the company's future financial performance could be affected by general economic conditions, the availability of qualified physical and occupational therapists and changes in Medicare guidelines, among other factors.