• |
Net revenue was $166.9 million compared to $161.8 million in the fourth quarter of 2022 and $153.8 million in the first quarter of 2022, an increase of 3.2% quarter over quarter and 8.5% year over year. The increases were primarily driven by ATI's focus on high-performing clinics and footprint optimization efforts, as well as strong demand for physical therapy ("PT") and adjacent services.
|
■ |
Net patient revenue was $150.8 million compared to $146.2 million in the fourth quarter of 2022 and $138.9 million in the first quarter of 2022, an increase of 3.1% quarter over quarter and 8.5% year over year. See below for discussion of drivers to net patient revenue (i.e., patient visits and Rate per Visit).
|
■ |
Other revenue was $16.2 million compared to $15.6 million in the fourth quarter of 2022 and $14.9 million in the first quarter of 2022, an increase of 3.9% quarter over quarter and 8.6% year over year, primarily driven by increases in MSA revenue.
|
• |
Visits per Day ("VPD") were 22,701 compared to 22,316 in the fourth quarter of 2022 and 21,062 in the first quarter of 2022, an increase of 1.7% quarter over quarter and 7.8% year over year.
|
• |
Rate per Visit was $103.76 compared to $103.99 in the fourth quarter of 2022 and $103.06 in the first quarter of 2022, a decrease of 0.2% quarter over quarter and an increase of 0.7% year over year.
|
• |
Salaries and related costs were $90.7 million, unchanged from $90.7 million in the fourth quarter of 2022, and $87.4 million in the first quarter of 2022, an increase of 3.8% year over year. The year-over-year increase was primarily due to wage inflation and a higher proportion of clinic directors and physical therapists versus physical therapy assistants in support of ATI's patient care model.
|
• |
Rent, clinic supplies, contract labor and other was $52.9 million compared to $49.1 million in the fourth quarter of 2022 and $51.6 million in the first quarter of 2022, an increase of 7.6% quarter over quarter and 2.4% year over year.
|
• |
Provision for doubtful accounts was $4.1 million compared to $2.5 million in the fourth quarter of 2022 and $5.1 million in the first quarter of 2022. PT provision as a percent of net patient revenue was 2.7% compared to 3.7% in the first quarter of 2022, with the improvement driven by several operational initiatives and deliberate efforts to increase collections.
|
• |
Selling, general and administrative expenses were $30.6 million compared to $27.6 million in the fourth quarter of 2022 and $30.0 million in the first quarter of 2022, an increase of 10.7% quarter over quarter and 1.9% year over year. The increases were primarily due to transaction costs related to completing the TSA, partially offset quarter over quarter by lower severance costs and year over year by lower professional fees and non-ordinary legal expenses.
|
• |
Interest expense during the quarter was $13.9 million, compared to $13.5 million in the fourth quarter of 2022 and $8.7 million in the first quarter of 2022. The year over year increase was primarily due to higher interest rates, partially offset by payments from an interest rate cap.
|
• |
Income tax expense (benefit) was $0.1 million compared to $(5.0) million in the fourth quarter of 2022 and $(23.3) million in the first quarter of 2022.
|
• |
Net loss was $25.2 million compared to $102.4 million in the fourth quarter of 2022 and $138.2 million in the first quarter of 2022.
|
• |
Fully diluted Class A common stock loss per share was $0.15 compared to $0.53 in the fourth quarter of 2022 and $0.70 in the first quarter of 2022.
|
• |
Adjusted EBITDA1 was $4.8 million compared to $6.4 million in the fourth quarter of 2022 and $(4.7) million in the first quarter of 2022. The quarter over quarter decrease was mostly driven by expenses associated with the annual National Leadership Event held in January 2023, partially offset by higher revenue and the associated earnings. The year over year increase was primarily driven by higher revenue and the associated earnings.
|
• |
Net (decrease) increase in cash was $(20.1) million compared to $46.2 million in the first quarter of 2022.
|
• |
On the balance sheet, as of March 31, 2023, cash and cash equivalents totaled $63.1 million and no revolving credit facility remaining capacity.
|
• |
our liquidity position raises substantial doubt about our ability to continue as a going concern;
|
• |
risks associated with liquidity and capital markets, including the Company's ability to generate sufficient cash flows, together with cash on hand, to run its business, cover liquidity and capital requirements and resolve substantial doubt about the Company's ability to continue as a going concern;
|
• |
our ability to meet financial covenants as required by our 2022 Credit Agreement;
|
• |
risks related to outstanding indebtedness and preferred stock, rising interest rates and potential increases in borrowing costs, compliance with associated covenants and provisions and the potential need to seek additional or alternative debt or capital financing in the future;
|
• |
risks related to the Company's ability to access additional financing or alternative options when needed;
|
• |
our dependence upon governmental and third-party private payors for reimbursement and that decreases in reimbursement rates, renegotiation or termination of payor contracts or unfavorable changes in payor, state and service mix may adversely affect our financial results;
|
• |
federal and state governments' continued efforts to contain growth in Medicaid expenditures, which could adversely affect the Company's revenue and profitability;
|
• |
payments that we receive from Medicare and Medicaid being subject to potential retroactive reduction;
|
• |
changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
|
• |
compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply;
|
• |
risks associated with public health crises, including COVID-19 (and any existing and future variants) and its direct and indirect impacts on the business, which could lead to a decline in visit volumes and referrals;
|
• |
risks related to the impact on our workforce of mandatory COVID-19 vaccination of employees;
|
• |
our inability to compete effectively in a competitive industry, subject to rapid technological change and cost inflation, including competition that could impact our effectiveness of strategies to improve patient referrals and our ability to identify, recruit and retain skilled physical therapists;
|
• |
our inability to maintain high levels of service and patient satisfaction;
|
• |
risks associated with the locations of our clinics, including the economies in which we operate, size and expected growth of our addressable markets, and the potential need to close clinics and incur closure costs;
|
• |
our dependence upon the cultivation and maintenance of relationships with customers, suppliers, physicians and other referral sources;
|
• |
the severity of climate change or the weather and natural disasters that can occur in the regions of the U.S. in which we operate, which could cause disruption to our business;
|
• |
risks associated with future acquisitions, which may use significant resources, may be unsuccessful and could expose us to unforeseen liabilities;
|
• |
failure of third-party vendors, including customer service, technical and IT support providers and other outsourced professional service providers to adequately address customers' requests and meet Company requirements;
|
• |
risks associated with our reliance on IT infrastructure in critical areas of our operations including, but not limited to, cyber and other security threats;
|
• |
a security breach of our IT systems or our third-party vendors' IT systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 or the Health Information Technology for Economic and Clinical Health Act;
|
• |
maintaining clients for which we perform management and other services, as a breach or termination of those contractual arrangements by such clients could cause operating results to be less than expected;
|
• |
our failure to maintain financial controls and processes over billing and collections or disputes with third-parties could have a significant negative impact on our financial condition and results of operations;
|
• |
our operations are subject to extensive regulation and macroeconomic uncertainty;
|
• |
our ability to meet revenue and earnings expectations;
|
• |
risks associated with applicable state laws regarding fee-splitting and professional corporation laws;
|
• |
inspections, reviews, audits and investigations under federal and state government programs and payor contracts that could have adverse findings that may negatively affect our business, including our results of operations, liquidity, financial condition and reputation;
|
• |
changes in or our failure to comply with existing federal and state laws or regulations or the inability to comply with new government regulations on a timely basis;
|
• |
the outcome of any legal and regulatory matters, proceedings or investigations instituted against us or any of our directors or officers, and whether insurance coverage will be available and/or adequate to cover such matters or proceedings;
|
• |
our facilities face competition for experienced physical therapists and other clinical providers that may increase labor costs and reduce profitability;
|
• |
risks associated with our ability to attract and retain talented executives and employees amidst the impact of unfavorable labor market dynamics and wage inflation, including potential failure of steps being taken to reduce attrition of physical therapists and increase hiring of physical therapists;
|
• |
risk resulting from the IPO Warrants, Earnout Shares and Vesting Shares being accounted for as liabilities;
|
• |
further impairments of goodwill and other intangible assets, which represent a significant portion of our total assets, especially in view of the Company's recent market valuation;
|
• |
our inability to remediate the material weaknesses in internal control over financial reporting related to income taxes and to maintain effective internal control over financial reporting;
|
• |
costs related to operating as a public company; and
|
• |
risks associated with our ability to regain and sustain compliance with the listing requirements of our securities on the New York Stock Exchange ("NYSE").
|
Three Months Ended
| ||||||||
March 31, 2023
|
March 31, 2022
| |||||||
Net patient revenue
|
$
|
150,754
|
$
|
138,925
| ||||
Other revenue
|
16,178
|
14,897
| ||||||
Net revenue
|
166,932
|
153,822
| ||||||
Cost of services:
| ||||||||
Salaries and related costs
|
90,703
|
87,415
| ||||||
Rent, clinic supplies, contract labor and other
|
52,878
|
51,615
| ||||||
Provision for doubtful accounts
|
4,125
|
5,105
| ||||||
Total cost of services
|
147,706
|
144,135
| ||||||
Selling, general and administrative expenses
|
30,595
|
30,024
| ||||||
Goodwill, intangible and other asset impairment charges
|
-
|
155,741
| ||||||
Operating loss
|
(11,369
|
)
|
(176,078
|
)
| ||||
Change in fair value of warrant liability
|
198
|
(1,677
|
)
| |||||
Change in fair value of contingent common shares liability
|
(709
|
)
|
(24,334
|
)
| ||||
Interest expense, net
|
13,936
|
8,656
| ||||||
Other expense, net
|
354
|
2,781
| ||||||
Loss before taxes
|
(25,148
|
)
|
(161,504
|
)
| ||||
Income tax expense (benefit)
|
62
|
(23,281
|
)
| |||||
Net loss
|
(25,210
|
)
|
(138,223
|
)
| ||||
Net income (loss) attributable to non-controlling interests
|
1,060
|
(473
|
)
| |||||
Net loss attributable to ATI Physical Therapy, Inc.
|
$
|
(26,270
|
)
|
$
|
(137,750
|
)
| ||
Loss per share of Class A common stock:
| ||||||||
Basic
|
$
|
(0.15
|
)
|
$
|
(0.70
|
)
| ||
Diluted
|
$
|
(0.15
|
)
|
$
|
(0.70
|
)
| ||
Weighted average shares outstanding:
| ||||||||
Basic and diluted
|
204,921
|
199,971
|
March 31, 2023
|
December 31, 2022
| |||||||
Assets:
| ||||||||
Current assets:
| ||||||||
Cash and cash equivalents
|
$
|
63,075
|
$
|
83,139
| ||||
Accounts receivable (net of allowance for doubtful accounts of $52,549 and $47,620 at March 31, 2023
and December 31, 2022, respectively)
|
82,210
|
80,673
| ||||||
Prepaid expenses
|
9,373
|
13,526
| ||||||
Other current assets
|
6,722
|
10,040
| ||||||
Assets held for sale
|
5,469
|
6,755
| ||||||
Total current assets
|
166,849
|
194,133
| ||||||
Property and equipment, net
|
119,508
|
123,690
| ||||||
Operating lease right-of-use assets
|
224,725
|
226,092
| ||||||
Goodwill, net
|
286,458
|
286,458
| ||||||
Trade name and other intangible assets, net
|
246,398
|
246,582
| ||||||
Other non-current assets
|
1,823
|
2,030
| ||||||
Total assets
|
$
|
1,045,761
|
$
|
1,078,985
| ||||
Liabilities, Mezzanine Equity and Stockholders' Equity:
| ||||||||
Current liabilities:
| ||||||||
Accounts payable
|
$
|
10,245
|
$
|
12,559
| ||||
Accrued expenses and other liabilities
|
47,564
|
53,672
| ||||||
Current portion of operating lease liabilities
|
51,911
|
47,676
| ||||||
Liabilities held for sale
|
1,503
|
2,614
| ||||||
Total current liabilities
|
111,223
|
116,521
| ||||||
Long-term debt, net
|
534,137
|
531,600
| ||||||
Warrant liability
|
296
|
98
| ||||||
Contingent common shares liability
|
2,126
|
2,835
| ||||||
Deferred income tax liabilities
|
18,948
|
18,886
| ||||||
Operating lease liabilities
|
216,396
|
218,424
| ||||||
Other non-current liabilities
|
1,821
|
1,834
| ||||||
Total liabilities
|
884,947
|
890,198
| ||||||
Commitments and contingencies
| ||||||||
Mezzanine equity:
| ||||||||
Series A Senior Preferred Stock, $0.0001 par value; 1.0 million shares authorized; 0.2 million shares issued and outstanding; $1,140.48 stated value per share at March 31, 2023; $1,108.34 stated value per share at December 31, 2022
|
140,340
|
140,340
| ||||||
Stockholders' equity:
| ||||||||
Class A common stock, $0.0001 par value; 470.0 million shares authorized; 208.7 million shares issued, 199.5 million shares outstanding at March 31, 2023; 207.5 million shares issued, 198.4 million shares outstanding at December 31, 2022
|
20 |
20 | ||||||
Treasury stock, at cost, 0.24 million shares and 0.08 million shares at March 31, 2023 and December 31, 2022, respectively
| (197 | ) | (146 | ) | ||||
Additional paid-in capital
|
1,380,150 |
1,378,696 | ||||||
Accumulated other comprehensive income
|
1,443 |
4,899 | ||||||
Accumulated deficit
|
(1,365,781 |
) | (1,339,511 | ) | ||||
Total ATI Physical Therapy, Inc. equity
|
15,635 |
43,958 | ||||||
Non-controlling interests
|
4,839 |
4,489 | ||||||
Total stockholders' equity
|
20,474 |
48,447 | ||||||
Total liabilities, mezzanine equity and stockholders' equity
| $ | 1,045,761 | $ | 1,078,985 |
Three Months Ended
| ||||||||
March 31, 2023
|
March 31, 2022
| |||||||
Operating activities:
| ||||||||
Net loss
|
$
|
(25,210
|
)
|
$
|
(138,223
|
)
| ||
Adjustments to reconcile net loss to net cash used in operating activities:
| ||||||||
Goodwill, intangible and other asset impairment charges
|
-
|
155,741
| ||||||
Depreciation and amortization
|
9,691
|
10,111
| ||||||
Provision for doubtful accounts
|
4,125
|
5,105
| ||||||
Deferred income tax provision
|
62
|
(23,281
|
)
| |||||
Amortization of right-of-use assets
|
11,850
|
11,807
| ||||||
Non-cash share-based compensation
|
1,454
|
1,960
| ||||||
Amortization of debt issuance costs and original issue discount
|
838
|
660
| ||||||
Non-cash interest expense
|
1,736
|
-
| ||||||
Loss on extinguishment of debt
|
-
|
2,809
| ||||||
Loss (gain) on disposal and sale of assets
|
489
|
(219
|
)
| |||||
Change in fair value of warrant liability
|
198
|
(1,677
|
)
| |||||
Change in fair value of contingent common shares liability
|
(709
|
)
|
(24,334
|
)
| ||||
Changes in:
| ||||||||
Accounts receivable, net
|
(5,770
|
)
|
(10,459
|
)
| ||||
Prepaid expenses and other current assets
|
4,073
|
588
| ||||||
Other non-current assets
|
33
|
14
| ||||||
Accounts payable
|
(2,439
|
)
|
(928
|
)
| ||||
Accrued expenses and other liabilities
|
(6,168
|
)
|
(544
|
)
| ||||
Operating lease liabilities
|
(8,476
|
)
|
(11,555
|
)
| ||||
Other non-current liabilities
|
(1
|
)
|
(37
|
)
| ||||
Medicare Accelerated and Advance Payment Program Funds
|
-
|
(4,269
|
)
| |||||
Net cash used in operating activities
|
(14,224
|
)
|
(26,731
|
)
| ||||
Investing activities:
| ||||||||
Purchases of property and equipment
|
(5,434
|
)
|
(8,772
|
)
| ||||
Proceeds from sale of property and equipment
|
-
|
114
| ||||||
Proceeds from sale of clinics
|
355
|
-
| ||||||
Net cash used in investing activities
|
(5,079
|
)
|
(8,658
|
)
| ||||
Financing activities:
| ||||||||
Proceeds from long-term debt
|
-
|
500,000
| ||||||
Deferred financing costs
|
-
|
(12,952
|
)
| |||||
Original issue discount
|
-
|
(10,000
|
)
| |||||
Principal payments on long-term debt
|
-
|
(555,048
|
)
| |||||
Proceeds from issuance of Series A Senior Preferred Stock
|
-
|
144,667
| ||||||
Proceeds from issuance of 2022 Warrants
|
-
|
20,333
| ||||||
Equity issuance costs and original issue discount
|
-
|
(4,935
|
)
| |||||
Taxes paid on behalf of employees for shares withheld
|
(51
|
)
|
(22
|
)
| ||||
Distribution to non-controlling interest holders
|
(710
|
)
|
(473
|
)
| ||||
Net cash (used in) provided by financing activities
|
(761
|
)
|
81,570
| |||||
Changes in cash and cash equivalents:
| ||||||||
Net (decrease) increase in cash and cash equivalents
|
(20,064
|
)
|
46,181
| |||||
Cash and cash equivalents at beginning of period
|
83,139
|
48,616
| ||||||
Cash and cash equivalents at end of period
|
$
|
63,075
|
$
|
94,797
| ||||
Supplemental noncash disclosures:
| ||||||||
Derivative changes in fair value
|
$
|
3,456
|
$
|
(3,752
|
)
| |||
Purchases of property and equipment in accounts payable
|
$
|
1,771
|
$
|
2,223
| ||||
Other supplemental disclosures:
| ||||||||
Cash paid for interest
|
$
|
9,563
|
$
|
3,932
| ||||
Cash received from hedging activities
|
$
|
3,418
|
$
|
-
| ||||
Cash paid for taxes
|
$
|
-
|
$
|
35
|
Financial Metrics ($ in 000's)
| ||||||||||||||||||||
Net Patient
Revenue
|
Other
Revenue
|
Net Revenue
|
Adjusted
EBITDA
|
Adj EBITDA
margin
| ||||||||||||||||
Q1 2021
|
$
|
132,271
|
$
|
16,791
|
$
|
149,062
|
$
|
5,590
|
3.8
|
%
| ||||||||||
Q2 2021
|
$
|
146,679
|
$
|
17,354
|
$
|
164,033
|
$
|
23,999
|
14.6
|
%
| ||||||||||
Q3 2021
|
$
|
141,855
|
$
|
17,158
|
$
|
159,013
|
$
|
8,539
|
5.4
|
%
| ||||||||||
Q4 2021
|
$
|
140,275
|
$
|
15,488
|
$
|
155,763
|
$
|
1,643
|
1.1
|
%
| ||||||||||
Q1 2022
|
$
|
138,925
|
$
|
14,897
|
$
|
153,822
|
$
|
(4,695
|
)
|
(3.1
|
)%
| |||||||||
Q2 2022
|
$
|
148,506
|
$
|
14,787
|
$
|
163,293
|
$
|
5,436
|
3.3
|
%
| ||||||||||
Q3 2022
|
$
|
142,313
|
$
|
14,479
|
$
|
156,792
|
$
|
(392
|
)
|
(0.3
|
)%
| |||||||||
Q4 2022
|
$
|
146,196
|
$
|
15,568
|
$
|
161,764
|
$
|
6,363
|
3.9
|
%
| ||||||||||
Q1 2023
|
$
|
150,754
|
$
|
16,178
|
$
|
166,932
|
$
|
4,790
|
2.9
|
%
|
Operational Metrics
| ||||||||||||||||||||||||||||
Visits
per Day (1) |
Clinical
FTE (2) |
VPD
per cFTE (3) |
ATI Clinician
Headcount (4) |
Contractor Headcount (5) |
ATI Clinician Headcount
| |||||||||||||||||||||||
Adds (6) |
Turnover (7) | |||||||||||||||||||||||||||
Q1 2021
|
19,520
|
2,284
|
8.5
|
2,558
|
16
|
41
|
%
|
31
|
%
| |||||||||||||||||||
Q2 2021
|
21,569
|
2,325
|
9.3
|
2,526
|
43
|
37
|
%
|
44
|
%
| |||||||||||||||||||
Q3 2021
|
20,674
|
2,359
|
8.8
|
2,583
|
108
|
51
|
%
|
42
|
%
| |||||||||||||||||||
Q4 2021
|
20,649
|
2,490
|
8.3
|
2,650
|
109
|
37
|
%
|
31
|
%
| |||||||||||||||||||
Q1 2022
|
21,062
|
2,466
|
8.5
|
2,658
|
158
|
25
|
%
|
23
|
%
| |||||||||||||||||||
Q2 2022
|
22,403
|
2,465
|
9.1
|
2,647
|
151
|
26
|
%
|
28
|
%
| |||||||||||||||||||
Q3 2022
|
21,493
|
2,465
|
8.7
|
2,691
|
151
|
33
|
%
|
25
|
%
| |||||||||||||||||||
Q4 2022
|
22,316
|
2,476
|
9.0
|
2,662
|
123
|
19
|
%
|
26
|
%
| |||||||||||||||||||
Q1 2023
|
22,701
|
2,423
|
9.4
|
2,629
|
168
|
21
|
%
|
27
|
%
|
(1) |
Equals patient visits divided by operating days.
|
(2) |
Represents clinical staff hours divided by 8 hours divided by number of paid days.
|
(3) |
Equals patient visits divided by operating days divided by clinical full-time equivalent employees.
|
(4) |
Represents ATI employee clinician headcount at end of period.
|
(5) |
Represents contractor clinician headcount at end of period.
|
(6) |
Represents ATI employee clinician headcount new hire adds divided by average headcount, multiplied by 4 to annualize.
|
(7) |
Represents ATI employee clinician headcount separations divided by average headcount, multiplied by 4 to annualize.
|
Unit Economics: PT Clinics ($ actual)
| |||||||||||||||||||||||||||||
Ending
Clinic Count
|
PT
Revenue
per Clinic (1) |
VPD
per Clinic (2) |
PT Rate
per Visit (3) |
PT Salaries
per Visit (4) |
PT Rent
and Other
per Clinic (5) |
PT Provision
as % PT Revenue (6) | |||||||||||||||||||||||
Q1 2021
|
882
|
$
|
150,536
|
22.2
|
$
|
107.56
|
$
|
54.14
|
$
|
47,722
|
5.4
|
%
| |||||||||||||||||
Q2 2021
|
889
|
$
|
165,241
|
24.3
|
$
|
106.26
|
$
|
48.22
|
$
|
47,857
|
2.4
|
%
| |||||||||||||||||
Q3 2021
|
900
|
$
|
158,556
|
23.1
|
$
|
105.56
|
$
|
53.70
|
$
|
49,499
|
2.5
|
%
| |||||||||||||||||
Q4 2021
|
910
|
$
|
154,772
|
22.8
|
$
|
104.51
|
$
|
55.73
|
$
|
50,976
|
1.5
|
%
| |||||||||||||||||
Q1 2022
|
922
|
$
|
151,225
|
22.9
|
$
|
103.06
|
$
|
55.47
|
$
|
54,472
|
3.7
|
%
| |||||||||||||||||
Q2 2022
|
926
|
$
|
160,431
|
24.2
|
$
|
103.57
|
$
|
53.64
|
$
|
53,017
|
2.4
|
%
| |||||||||||||||||
Q3 2022
|
929
|
$
|
153,410
|
23.2
|
$
|
103.46
|
$
|
56.20
|
$
|
53,945
|
2.0
|
%
| |||||||||||||||||
Q4 2022
|
923
|
$
|
157,993
|
24.1
|
$
|
103.99
|
$
|
54.92
|
$
|
51,252
|
1.7
|
%
| |||||||||||||||||
Q1 2023
|
909
|
$
|
165,846
|
25.0
|
$
|
103.76
|
$
|
52.98
|
$
|
56,338
|
2.7
|
%
|
(1) |
Equals Net Patient Revenue divided by average clinics over the quarter.
|
(2) |
Equals patient visits divided by operating days divided by average clinics over the quarter
|
(3) |
Equals Net Patient Revenue divided by patient visits.
|
(4) |
Equals estimated patient-related portion of Salaries and Related Costs divided by patient visits.
|
(5) |
Equals estimated patient-related portion of Rent, Clinic Supplies, Contract Labor and Other divided by average clinics over the quarter.
|
(6) |
Equals estimated patient-related portion of Provision for Doubtful Accounts divided by Net Patient Revenue.
|
Customer Satisfaction Metrics
| |||
Net Promoter
Score (1) |
Google Star
Rating (2) | ||
Q1 2021
|
75
|
4.9
| |
Q2 2021
|
77
|
4.9
| |
Q3 2021
|
73
|
4.9
| |
Q4 2021
|
78
|
4.8
| |
Q1 2022
|
74
|
4.9
| |
Q2 2022
|
75
|
4.9
| |
Q3 2022
|
76
|
4.8
| |
Q4 2022
|
76
|
4.9
| |
Q1 2023
|
76
|
4.8
|
(1) |
NPS measures customer experience from ATI patient survey responses. The score is calculated as the percentage of promoters less the percentage of detractors.
|
(2) |
A Google Star rating is a five-star rating scale that ranks businesses based on customer reviews. Customers are given the opportunity to leave a business review after interacting with a business, which involves choosing from one star (poor) to five stars (excellent).
|
Three Months
Ended
| ||||
March 31,
2023
| ||||
Net loss
|
$
|
(25,210
|
)
| |
Plus (minus):
| ||||
Net income attributable to non-controlling interests
|
(1,060
|
)
| ||
Interest expense, net
|
13,936
| |||
Income tax expense
|
62
| |||
Depreciation and amortization expense
|
9,564
| |||
EBITDA
|
$
|
(2,708
|
)
| |
Changes in fair value of warrant liability and contingent common shares liability (1) |
(511
|
)
| ||
Transaction and integration costs (2) |
5,408
| |||
Non-ordinary legal and regulatory matters (3) |
1,523
| |||
Share-based compensation
|
1,478
| |||
Business optimization costs (4) |
(702
|
)
| ||
Pre-opening de novo costs (5) |
172
| |||
Reorganization and severance costs (6) |
130
| |||
Adjusted EBITDA
|
$
|
4,790
| ||
Adjusted EBITDA margin
|
2.9
|
%
|
(1) |
Represents non-cash amounts related to the change in the estimated fair value of IPO Warrants, Earnout Shares and Vesting Shares.
|
(2) |
Represents non-capitalizable debt and capital transaction costs.
|
(3) |
Represents non-ordinary course legal costs related to the previously disclosed ATIP stockholder class action complaints, derivative complaint, and SEC matter.
|
(4) |
Represents realized benefit of labor related CARES Act credit, that was not previously considered probable and relates to prior years.
|
(5) |
Represents expenses associated with renovation, equipment and marketing costs relating to the start-up and launch of new locations incurred prior to opening.
|
(6) |
Represents severance costs related to discrete initiatives focused on reorganization and delayering of the Company's labor model, management structure and support functions.
|
Three Months Ended
| ||||||||||||||||
December 31,
2022
|
September 30,
2022
|
June 30,
2022
|
March 31,
2022
| |||||||||||||
Net loss
|
$
|
(102,407
|
)
|
$
|
(116,694
|
)
|
$
|
(135,723
|
)
|
$
|
(138,223
|
)
| ||||
Plus (minus):
| ||||||||||||||||
Net (income) loss attributable to non-controlling interests
|
(358
|
)
|
376
|
177
|
473
| |||||||||||
Interest expense, net
|
13,463
|
11,780
|
11,379
|
8,656
| ||||||||||||
Income tax benefit
|
(4,998
|
)
|
(7,218
|
)
|
(13,033
|
)
|
(23,281
|
)
| ||||||||
Depreciation and amortization expense
|
9,979
|
9,907
|
10,055
|
9,900
| ||||||||||||
EBITDA
|
$
|
(84,321
|
)
|
$
|
(101,849
|
)
|
$
|
(127,145
|
)
|
$
|
(142,475
|
)
| ||||
Goodwill, intangible and other asset impairment charges (1) |
96,038
|
106,663
|
127,820
|
155,741
| ||||||||||||
Goodwill, intangible and other asset impairment charges attributable to non-controlling interests (1) |
(364
|
)
|
(457
|
)
|
(654
|
)
|
(940
|
)
| ||||||||
Changes in fair value of warrant liability and contingent common shares liability (2) |
(10,357
|
)
|
(7,720
|
)
|
(2,680
|
)
|
(26,011
|
)
| ||||||||
Loss on debt extinguishment (3) |
-
|
-
|
-
|
2,809
| ||||||||||||
Loss on legal settlement (4) |
-
|
-
|
3,000
|
-
| ||||||||||||
Share-based compensation
|
1,544
|
1,920
|
2,004
|
1,964
| ||||||||||||
Non-ordinary legal and regulatory matters (5) |
937
|
772
|
2,202
|
2,497
| ||||||||||||
Pre-opening de novo costs (6) |
101
|
224
|
286
|
381
| ||||||||||||
Transaction and integration costs (7) |
1,093
|
55
|
603
|
1,538
| ||||||||||||
Reorganization and severance costs (8) |
1,797
|
-
|
-
|
-
| ||||||||||||
Business optimization costs (9) |
(105
|
)
|
-
|
-
|
-
| |||||||||||
Gain on sale of Home Health service line, net
|
-
|
-
|
-
|
(199
|
)
| |||||||||||
Adjusted EBITDA
|
$
|
6,363
|
$
|
(392
|
)
|
$
|
5,436
|
$
|
(4,695
|
)
| ||||||
Adjusted EBITDA margin
|
3.9
|
%
|
(0.3
|
)%
|
3.3
|
%
|
(3.1
|
)%
|
(1) |
Represents non-cash charges related to the write-down of goodwill, trade name indefinite-lived intangible and other assets.
|
(2) |
Represents non-cash amounts related to the change in the estimated fair value of IPO Warrants, Earnout Shares and Vesting Shares.
|
(3) |
Represents charges related to the derecognition of the unamortized deferred financing costs and original issuance discount associated with the full repayment of the 2016 first lien term loan.
|
(4) |
Represents charge for net settlement liability related to billing dispute.
|
(5) |
Represents non-ordinary course legal costs related to the previously disclosed ATIP stockholder class action complaints, derivative complaint, and SEC matter.
|
(6) |
Represents expenses associated with renovation, equipment and marketing costs relating to the start-up and launch of new locations incurred prior to opening.
|
(7) |
Represents costs related to the Business Combination with FVAC II and non-capitalizable debt and capital transaction costs.
|
(8) |
Represents severance, consulting and other costs related to discrete initiatives focused on reorganization and delayering of the Company's labor model, management structure and support functions.
|
(9) |
Represents non-recurring costs to optimize our platform and ATI transformative initiatives. Costs primarily relate to duplicate costs driven by IT and Revenue Cycle Management conversions, labor related costs during the transition of key positions and other incremental costs of driving optimization initiatives.
|
Three Months Ended
| ||||||||||||||||
December 31,
2021
|
September 30,
2021
|
June 30,
2021
|
March 31,
2021
| |||||||||||||
Net income (loss)
|
$
|
1,690
|
$
|
(326,774
|
)
|
$
|
(439,126
|
)
|
$
|
(17,818
|
)
| |||||
Plus (minus):
| ||||||||||||||||
Net (income) loss attributable to non-controlling interests
|
(869
|
)
|
2,109
|
3,769
|
(1,309
|
)
| ||||||||||
Interest expense, net
|
7,215
|
7,386
|
15,632
|
16,087
| ||||||||||||
Interest expense on redeemable preferred stock
|
-
|
-
|
4,779
|
5,308
| ||||||||||||
Income tax benefit
|
(5,381
|
)
|
(35,333
|
)
|
(19,731
|
)
|
(10,515
|
)
| ||||||||
Depreciation and amortization expense
|
10,005
|
9,222
|
9,149
|
9,619
| ||||||||||||
EBITDA
|
12,660
|
(343,390
|
)
|
(425,528
|
)
|
1,372
| ||||||||||
Goodwill, intangible and other asset impairment charges (1) |
-
|
508,972
|
453,331
|
-
| ||||||||||||
Goodwill, intangible and other asset impairment charges attributable to
non-controlling interest (1) |
-
|
(2,928
|
)
|
(5,021
|
)
|
-
| ||||||||||
Changes in fair value of warrant liability and contingent common shares liability (2) |
(10,046
|
)
|
(162,202
|
)
|
(25,487
|
)
|
-
| |||||||||
Gain on sale of Home Health service line, net
|
(5,846
|
)
|
-
|
-
|
-
| |||||||||||
Reorganization and severance costs (3) |
-
|
3,551
|
-
|
362
| ||||||||||||
Transaction and integration costs (4) |
955
|
2,335
|
3,580
|
2,918
| ||||||||||||
Share-based compensation
|
905
|
1,248
|
3,112
|
504
| ||||||||||||
Pre-opening de novo costs (5) |
543
|
511
|
441
|
434
| ||||||||||||
Non-ordinary legal and regulatory matters (6) |
2,472
|
442
|
-
|
-
| ||||||||||||
Loss on debt extinguishment (7) |
-
|
-
|
5,534
|
-
| ||||||||||||
Loss on settlement of redeemable preferred stock (8) |
-
|
-
|
14,037
|
-
| ||||||||||||
Adjusted EBITDA
|
$
|
1,643
|
$
|
8,539
|
$
|
23,999
|
$
|
5,590
| ||||||||
Adjusted EBITDA margin
|
1.1
|
%
|
5.4
|
%
|
14.6
|
%
|
3.8
|
%
|
(1) |
Represents non-cash charges related to the write-down of goodwill, trade name indefinite-lived intangible and other assets.
|
(2) |
Represents non-cash amounts related to the change in the estimated fair value of IPO Warrants, Earnout Shares and Vesting Shares.
|
(3) |
Represents severance, consulting and other costs related to discrete initiatives focused on reorganization and delayering of the Company's labor model, management structure and support functions.
|
(4) |
Represents costs related to the Business Combination with FVAC II, non-capitalizable debt transaction costs, clinic acquisitions and acquisition-related integration and consulting and planning costs related to preparation to operate as a public company.
|
(5) |
Represents expenses associated with renovation, equipment and marketing costs relating to the start-up and launch of new locations incurred prior to opening.
|
(6) |
Represents non-ordinary course legal costs related to the previously disclosed ATIP stockholder class action complaints, derivative complaint and SEC matter.
|
(7) |
Represents charges related to the derecognition of the proportionate amount of remaining unamortized deferred financing costs and original issuance discount associated with the partial repayment of the first lien term loan and derecognition of the unamortized original issuance discount associated with the full repayment of the subordinated second lien term loan.
|
(8) |
Represents loss on settlement of redeemable preferred stock based on the value of cash and equity provided to preferred stockholders in relation to the outstanding redeemable preferred stock liability at the time of the closing of the Business Combination with FVAC II.
|
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ATI Physical Therapy Inc. published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 20:23:07 UTC.