
Continued Execution of Transformation Initiatives Drove Development in Internet Income, Internet Affected person Income, Visits Per Day and Supplier Productiveness
Capital Transactions to Enhance Liquidity and Monetary Flexibility Anticipated to Shut in June 2023
BOLINGBROOK, In poor health., Might 8, 2023 /PRNewswire/ — ATI Bodily Remedy (NYSE: ATIP) (“ATI” or the “Firm”), a nationally acknowledged outpatient bodily remedy supplier in america, at this time reported monetary outcomes for the primary quarter ended March 31, 2023.
“Our first quarter outcomes and continued enchancment in key metrics – together with progress in internet income, internet affected person income and visits per day – mirror disciplined execution of our strategic priorities and underscore the continued robust demand for high-quality bodily remedy,” mentioned Sharon Vitti, Chief Govt Officer of ATI. “All through the quarter, our staff remained centered on the three Ps of our enterprise – pipeline, supplier base and supplier productiveness – to drive long-term progress and profitability whereas delivering excellent care and repair to our sufferers.”
Ms. Vitti added, “Whereas the labor market continues to be a headwind throughout our business, our staff delivered notable sequential and year-over-year will increase in supplier productiveness, serving to to mitigate labor availability constraints out there. Below the management of our Chief Folks Officer, we’ve got continued to evolve our recruitment and new rent initiatives whereas staying centered on retention. Moreover, our referral pipeline stays above pre-pandemic ranges, supported by stable execution of our enterprise growth initiatives. Now we have confidence in our potential to proceed growing affected person visits and executing on our folks, operations and industrial methods.”
Joe Jordan, Chief Monetary Officer of ATI, mentioned, “Our new management staff below Sharon is constant to execute on our initiatives to extend profitability and operational effectivity, together with our footprint optimization and cost-control efforts. We additionally look ahead to closing the capital transactions within the close to time period, which can present the monetary flexibility to proceed executing on our plans and underscore our traders’ confidence within the important worth creation alternatives forward for ATI.”
________________________ 1 Consult with “Non-GAAP Monetary Measures” under.
First Quarter 2023 Outcomes
Supplemental tables of key efficiency metrics for the primary quarter of 2021 by the primary quarter of 2023 are offered after the monetary statements on the finish of this press launch. Commentary on efficiency ends in the primary quarter of 2023 is as follows:
Internet income was $166.9 million in comparison with $161.8 million within the fourth quarter of 2022 and $153.8 million within the first quarter of 2022, a rise of three.2% quarter over quarter and eight.5% 12 months over 12 months. The will increase had been primarily pushed by ATI’s concentrate on high-performing clinics and footprint optimization efforts, in addition to robust demand for bodily remedy (“PT”) and adjoining companies.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a rise of three.2% quarter over quarter and eight.5% 12 months over 12 months. The will increase had been primarily pushed by ATI’s concentrate on high-performing clinics and footprint optimization efforts, in addition to robust demand for bodily remedy (“PT”) and adjoining companies. Internet affected person income was $150.8 million in comparison with $146.2 million within the fourth quarter of 2022 and $138.9 million within the first quarter of 2022, a rise of three.1% quarter over quarter and eight.5% 12 months over 12 months. See under for dialogue of drivers to internet affected person income (i.e., affected person visits and Price per Go to).
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a rise of three.1% quarter over quarter and eight.5% 12 months over 12 months. See under for dialogue of drivers to internet affected person income (i.e., affected person visits and Price per Go to).
Different income was $16.2 million in comparison with $15.6 million within the fourth quarter of 2022 and $14.9 million within the first quarter of 2022, a rise of three.9% quarter over quarter and eight.6% 12 months over 12 months, primarily pushed by will increase in MSA income.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a rise of three.9% quarter over quarter and eight.6% 12 months over 12 months, primarily pushed by will increase in MSA income. Visits per Day (“VPD”) had been 22,701 in comparison with 22,316 within the fourth quarter of 2022 and 21,062 within the first quarter of 2022, a rise of 1.7% quarter over quarter and seven.8% 12 months over 12 months.
VPD per Clinic was 25.0 in comparison with 24.1 within the fourth quarter of 2022 and 22.9 within the first quarter of 2022, a rise of 0.9 visits quarter over quarter and a couple of.0 visits 12 months over 12 months. These will increase mirror the Firm’s concentrate on bettering operational excellence throughout its clinics, together with by a reconfigured discipline construction and the current appointment of an skilled Chief Operations Officer, with the firstquarter of 2022 impacted by the COVID Omicron variant.
Price per Go to was $103.76 in comparison with $103.99 within the fourth quarter of 2022 and $103.06 within the first quarter of 2022, a lower of 0.2% quarter over quarter and a rise of 0.7% 12 months over 12 months.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a lower of 0.2% quarter over quarter and a rise of 0.7% 12 months over 12 months. Salaries and associated prices had been $90.7 million , unchanged from $90.7 million within the fourth quarter of 2022, and $87.4 million within the first quarter of 2022, a rise of three.8% 12 months over 12 months. The year-over-year enhance was primarily on account of wage inflation and a better proportion of clinic administrators and bodily therapists versus bodily remedy assistants in help of ATI’s affected person care mannequin.
PT salaries and associated prices per go to had been $52.98 in comparison with $54.92 within the fourth quarter of 2022 and $55.47 within the first quarter of 2022, a lower of three.5% quarter over quarter and 4.5% 12 months over 12 months. The decreases had been on account of increased labor productiveness of 9.4 VPD per scientific FTE in comparison with 9.0 within the fourth quarter of 2022 and eight.5 within the first quarter of 2022, partially offset by increased labor prices per scientific FTE.
, unchanged from within the fourth quarter of 2022, and within the first quarter of 2022, a rise of three.8% 12 months over 12 months. The year-over-year enhance was primarily on account of wage inflation and a better proportion of clinic administrators and bodily therapists versus bodily remedy assistants in help of ATI’s affected person care mannequin. PT salaries and associated prices per go to had been in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a lower of three.5% quarter over quarter and 4.5% 12 months over 12 months. The decreases had been on account of increased labor productiveness of 9.4 VPD per scientific FTE in comparison with 9.0 within the fourth quarter of 2022 and eight.5 within the first quarter of 2022, partially offset by increased labor prices per scientific FTE. Lease, clinic provides, contract labor and different was $52.9 million in comparison with $49.1 million within the fourth quarter of 2022 and $51.6 million within the first quarter of 2022, a rise of seven.6% quarter over quarter and a couple of.4% 12 months over 12 months.
PT hire, clinic provides, contract labor and different per clinic was $56,338 in comparison with $51,252 within the fourth quarter of 2022 and $54,472 within the first quarter of 2022, a rise of 9.9% quarter over quarter and three.4% 12 months over 12 months. The will increase had been primarily on account of bills in reference to the annual Nationwide Management Occasion held in January 2023 , for which roughly $3.0 million was expensed within the first quarter of 2023, and better repairs and upkeep spend.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a rise of seven.6% quarter over quarter and a couple of.4% 12 months over 12 months. PT hire, clinic provides, contract labor and different per clinic was in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a rise of 9.9% quarter over quarter and three.4% 12 months over 12 months. The will increase had been primarily on account of bills in reference to the annual Nationwide Management Occasion held in , for which roughly was expensed within the first quarter of 2023, and better repairs and upkeep spend. Provision for uncertain accounts was $4.1 million in comparison with $2.5 million within the fourth quarter of 2022 and $5.1 million within the first quarter of 2022. PT provision as a p.c of internet affected person income was 2.7% in comparison with 3.7% within the first quarter of 2022, with the development pushed by a number of operational initiatives and deliberate efforts to extend collections.
in comparison with within the fourth quarter of 2022 and within the first quarter of provision as a p.c of internet affected person income was 2.7% in comparison with 3.7% within the first quarter of 2022, with the development pushed by a number of operational initiatives and deliberate efforts to extend collections. Promoting, basic and administrative bills had been $30.6 million in comparison with $27.6 million within the fourth quarter of 2022 and $30.0 million within the first quarter of 2022, a rise of 10.7% quarter over quarter and 1.9% 12 months over 12 months. The will increase had been primarily on account of transaction prices associated to finishing the TSA, partially offset quarter over quarter by decrease severance prices and 12 months over 12 months by decrease skilled charges and non-ordinary authorized bills.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022, a rise of 10.7% quarter over quarter and 1.9% 12 months over 12 months. The will increase had been primarily on account of transaction prices associated to finishing the TSA, partially offset quarter over quarter by decrease severance prices and 12 months over 12 months by decrease skilled charges and non-ordinary authorized bills. Curiosity expense throughout the quarter was $13.9 million , in comparison with $13.5 million within the fourth quarter of 2022 and $8.7 million within the first quarter of 2022. The 12 months over 12 months enhance was primarily on account of increased rates of interest, partiallyoffset by funds from an rate of interest cap.
, in comparison with within the fourth quarter of 2022 and within the first quarter of 2022. The 12 months over 12 months enhance was primarily on account of increased rates of interest, partially offset by funds from an rate of interest cap. Earnings tax expense (profit) was $0.1 million in comparison with $(5.0) million within the fourth quarter of 2022 and $(23.3) million within the first quarter of 2022.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022. Internet loss was $25.2 million in comparison with $102.4 million within the fourth quarter of 2022 and $138.2 million within the first quarter of 2022.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022. Totally diluted Class A standard inventory loss per share was $0.15 in comparison with $0.53 within the fourth quarter of 2022 and $0.70 within the first quarter of 2022.
in comparison with within the fourth quarter of 2022 and within the first quarter of 2022. Adjusted EBITDA 1 was $4.8 million in comparison with $6.4 million within the fourth quarter of 2022 and $(4.7) million within the first quarter of 2022. The quarter over quarter lower was principally pushed by bills related to the annual Nationwide Management Occasion held in January 2023 , partially offset by increased income and the related earnings. The 12 months over 12 months enhance was primarily pushed by increased income and the related earnings.
Adjusted EBITDA 1 margin was 2.9% in comparison with 3.9% within the fourth quarter of 2022 and (3.1)% within the first quarter of 2022.
was in comparison with within the fourth quarter of 2022 and within the first quarter of 2022. The quarter over quarter lower was principally pushed by bills related to the annual Nationwide Management Occasion held in , partially offset by increased income and the related earnings. The 12 months over 12 months enhance was primarily pushed by increased income and the related earnings. Adjusted EBITDA margin was 2.9% in comparison with 3.9% within the fourth quarter of 2022 and (3.1)% within the first quarter of 2022. Internet (lower) enhance in money was $(20.1) million in comparison with $46.2 million within the first quarter of 2022.
Working money use was $14.2 million in comparison with $26.7 million within the first quarter of 2022, reflecting increased earnings and the conclusion of the Medicare Accelerated and Advance Cost Program (“MAAPP”) repayments within the third quarter of 2022. Money repaid in reference to MAAPP below the CARES Act was zero within the first quarter of 2023 in comparison with $4.3 million within the first quarter of 2022.
Investing money use was $5.1 million , with 4 new clinics opened within the quarter and a number of other scheduled to open instantly within the following quarter, in comparison with $8.7 million within the first quarter of 2022 and 12 new clinics opened.
Financing money (use) technology was $(0.8) million in comparison with $81.6 million within the first quarter of 2022. In February 2022 , the Firm refinanced its first lien time period mortgage with a brand new credit score settlement and issued Collection A most popular inventory with removable warrants, leading to roughly $77 million internet proceeds to the stability sheet after fee of transaction charges.
in comparison with within the first quarter of 2022. Working money use was in comparison with within the first quarter of 2022, reflecting increased earnings and the conclusion of the Medicare Accelerated and Advance Cost Program (“MAAPP”) repayments within the third quarter of 2022. Money repaid in reference to MAAPP below the CARES Act was zero within the first quarter of 2023 in comparison with within the first quarter of 2022. Investing money use was , with 4 new clinics opened within the quarter and a number of other scheduled to open instantly within the following quarter, in comparison with within the first quarter of 2022 and 12 new clinics opened. Financing money (use) technology was in comparison with within the first quarter of 2022. In , the Firm refinanced its first lien time period mortgage with a brand new credit score settlement and issued Collection A most popular inventory with removable warrants, leading to roughly internet proceeds to the stability sheet after fee of transaction charges. On the stability sheet, as of March 31, 2023 , money and money equivalents totaled $63.1 million and no revolving credit score facility remaining capability.
Moreover, ATI closed 12 clinics and divested six clinics throughout the quarter. Along with the 4 new clinics that had been opened, the Firm had 909 clinics at finish of the primary quarter and continues to execute on optimizing its geographic footprint and clinic-level economics.
Transaction Assist Settlement to Enhance Liquidity and Monetary Flexibility
As beforehand introduced, ATI entered right into a Transaction Assist Settlement (the “TSA”) in March 2023 with sure of its lenders, holders of most popular fairness and holders of nearly all of its frequent inventory. The considerably closing types of the TSA and corresponding definitive paperwork had been accomplished and signed in April 2023.
The transactions contemplated within the TSA will allow ATI to acquire a $25 million delayed draw time period mortgage within the type of new second lien PIK convertible notes, change $100 million of first lien time period mortgage into new second lien PIK convertible notes and stay in compliance with the covenants below its first lien credit score settlement, amongst different issues. The transactions are anticipated to shut in June 2023, topic to shareholder approval. Extra data is on the market on the Firm’s Present Report on Kind 8-Okay filed with the U.S. Securities and Change Fee (the “SEC”) on April 21, 2023 and definitive proxy assertion on Schedule 14A filed with the SEC on Might 1, 2023.
First Quarter 2023 Earnings Convention Name
Administration will host a convention name at 5 pm Jap Time on Might 8, 2023 to evaluation first quarter 2023 monetary outcomes. The convention name may be accessed through a dwell audio webcast. To hitch, please entry the next internet hyperlink, ATI Bodily Remedy, Inc. Q1 2023 Earnings Convention Name, on the Firm’s Investor Relations web site at https://traders.atipt.com no less than quarter-hour early to register and obtain and set up any essential audio software program. A replay of the decision will probably be obtainable through webcast for on-demand listening shortly after the completion of the decision, on the similar internet hyperlink, and can stay obtainable for roughly 90 days.
About ATI Bodily Remedy
At ATI Bodily Remedy, we’re captivated with potential. On daily basis, we restore it in our sufferers and activate it in our staff members in our greater than 900 places in 24 states. With outcomes from greater than 3 million distinctive affected person circumstances, ATI is making strides within the business by setting high quality requirements designed to ship predictable outcomes for our sufferers with musculoskeletal (MSK) points. ATI’s choices span throughout a broad spectrum for MSK-related points. From preventative companies within the office and athletic coaching help to outpatient scientific companies and on-line bodily remedy through our on-line platform, CONNECT™, a whole checklist of our service choices may be discovered at ATIpt.com. ATI relies in Bolingbrook, Illinois.
Ahead-Wanting Statements
All statements apart from statements of historic information contained on this communication are forward-looking statements for functions of the protected harbor provisions below america Personal Securities Litigation Reform Act of 1995. Ahead-looking statements could also be recognized by means of the phrases akin to “consider,” “might,” “will,” “estimate,” “proceed,” “anticipate,” “intend,” “count on,” “ought to,” “would,” “plan,” “venture,” “forecast,” “predict,” “potential,” “appear,” “search,” “future,” “outlook,” “goal” or related expressions that predict or point out future occasions or tendencies or that aren’t statements of historic issues. These forward-looking statements embrace, however should not restricted to, statements concerning the affect of bodily therapist attrition and skill to realize and preserve scientific staffing ranges and clinician productiveness, anticipated go to and referral volumes and different components on the Firm’s total profitability, and estimates and forecasts of different monetary and efficiency metrics and projections of market alternative. These statements are based mostly on numerous assumptions, whether or not or not recognized on this communication, and on the present expectations of the Firm’s administration and should not predictions of precise efficiency. These forward-looking statements are supplied for illustrative functions solely and should not meant to function, and should not be relied on by any investor as, a assure, an assurance, a prediction or a definitive assertion of truth or likelihood. Precise occasions and circumstances are troublesome or inconceivable to foretell and can differ from assumptions. Many precise occasions and circumstances are past the management of the Firm.
These forward-looking statements are topic to various dangers and uncertainties, together with:
our liquidity place raises substantial doubt about our potential to proceed as a going concern;
dangers related to liquidity and capital markets, together with the Firm’s potential to generate adequate money flows, along with money available, to run its enterprise, cowl liquidity and capital necessities and resolve substantial doubt in regards to the Firm’s potential to proceed as a going concern;
our potential to fulfill monetary covenants as required by our 2022 Credit score Settlement;
dangers associated to excellent indebtedness and most popular inventory, rising rates of interest and potential will increase in borrowing prices, compliance with related covenants and provisions and the potential want to hunt extra or various debt or capital financing sooner or later;
dangers associated to the Firm’s potential to entry extra financing or various choices when wanted;
our dependence upon governmental and third-party personal payors for reimbursement and that decreases in reimbursement charges, renegotiation or termination of payor contracts or unfavorable modifications in payor, state and repair combine might adversely have an effect on our monetary outcomes;
federal andstate governments’ continued efforts to include progress in Medicaid expenditures, which might adversely have an effect on the Firm’s income and profitability;
funds that we obtain from Medicare and Medicaid being topic to potential retroactive discount;
modifications in Medicare guidelines and tips and reimbursement or failure of our clinics to keep up their Medicare certification and/or enrollment standing;
compliance with federal and state legal guidelines and rules referring to the privateness of individually identifiable affected person data, and related fines and penalties for failure to conform;
dangers related to public well being crises, together with COVID-19 (and any current and future variants) and its direct and oblique impacts on the enterprise, which might result in a decline in go to volumes and referrals;
dangers associated to the affect on our workforce of necessary COVID-19 vaccination of staff;
our incapability to compete successfully in a aggressive business, topic to fast technological change and price inflation, together with competitors that might affect our effectiveness of methods to enhance affected person referrals and our potential to establish, recruit and retain expert bodily therapists;
our incapability to keep up excessive ranges of service and affected person satisfaction;
dangers related to the places of our clinics, together with the economies wherein we function, measurement and anticipated progress of our addressable markets, and the potential want to shut clinics and incur closure prices;
our dependence upon the cultivation and upkeep of relationships with clients, suppliers, physicians and different referral sources;
the severity of local weather change or the climate and pure disasters that may happen within the areas of the U.S. wherein we function, which might trigger disruption to our enterprise;
dangers related to future acquisitions, which can use important sources, could also be unsuccessful and will expose us to unexpected liabilities;
failure of third-party distributors, together with customer support, technical and IT help suppliers and different outsourced skilled service suppliers to adequately handle clients’ requests and meet Firm necessities;
dangers related to our reliance on IT infrastructure in essential areas of our operations together with, however not restricted to, cyber and different safety threats;
a safety breach of our IT programs or our third-party distributors’ IT programs might topic us to potential authorized motion and reputational hurt and will end in a violation of the Well being Insurance coverage Portability and Accountability Act of 1996 or the Well being Data Expertise for Financial and Scientific Well being Act;
sustaining shoppers for which we carry out administration and different companies, as a breach or termination of these contractual preparations by such shoppers might trigger working outcomes to be lower than anticipated;
our failure to keep up monetary controls and processes over billing and collections or disputes with third-parties might have a big damaging affect on our monetary situation and outcomes of operations;
our operations are topic to intensive regulation and macroeconomic uncertainty;
our potential to fulfill income and earnings expectations;
dangers related to relevant state legal guidelines concerning fee-splitting {and professional} company legal guidelines;
inspections, opinions, audits and investigations below federal and state authorities packages and payor contracts that might have adversarial findings which will negatively have an effect on our enterprise, together with our outcomes of operations, liquidity, monetary situation and popularity;
modifications in or our failure to adjust to current federal and state legal guidelines or rules or the shortcoming to adjust to new authorities rules on a well timed foundation;
the end result of any authorized and regulatory issues, proceedings or investigations instituted in opposition to us or any of our administrators or officers, and whether or not insurance coverage protection will probably be obtainable and/or ample to cowl such issues or proceedings;
our services face competitors for knowledgeable bodily therapists and different scientific suppliers which will enhance labor prices and scale back profitability;
dangers related to our potential to draw and retain gifted executives and staff amidst the affect of unfavorable labor market dynamics and wage inflation, together with potential failure of steps being taken to scale back attrition of bodily therapists and enhance hiring of bodily therapists;
threat ensuing from the IPO Warrants, Earnout Shares and Vesting Shares being accounted for as liabilities;
additional impairments of goodwill and different intangible belongings, which signify a good portion of our whole belongings, particularly in view of the Firm’s current market valuation;
our incapability to remediate the fabric weaknesses in inside management over monetary reporting associated to earnings taxes and to keep up efficient inside management over monetary reporting;
prices associated to working as a public firm; and
dangers related to our potential to regain and maintain compliance with the itemizing necessities of our securities on the New York Inventory Change (“NYSE”).
If any of those dangers materialize or our assumptions show incorrect, precise outcomes might differ materially from the outcomes implied by these forward-looking statements.
Buyers must also evaluation these components mentioned within the Firm’s amended S-1 registration assertion filed with the SEC on April 12, 2022 below the heading “Danger Elements,” our Kind 10-Okay for the fiscal 12 months ended December 31, 2022, the S-3 registration assertion and amendments thereto dated August 10, 2022 and different paperwork filed, or to be filed, by ATI with the SEC. New threat components emerge every so often and it isn’t doable to foretell all such threat components, nor can the Firm assess the affect of all such threat components on the enterprise of the Firm or the extent to which any issue or mixture of things might trigger precise outcomes to vary materially from these contained in any forward-looking statements. All forward-looking statements attributable to the Firm or individuals performing on its behalf are expressly certified of their entirety by the foregoing cautionary statements. Readers shouldn’t place undue reliance on forward-looking statements. The Firm undertakes no obligations to publicly replace or revise any forward-looking statements after the date they’re made or to mirror the prevalence of unanticipated occasions, whether or not on account of new data, future occasions or in any other case, besides as required by regulation.
As well as, statements of perception and related statements mirror the beliefs and opinions of the Firm on the related topic. These statements are based mostly upon data obtainable to the Firm, as relevant, as of the date of this communication, and whereas the Firm believes such data kinds an affordable foundation for such statements, such data could also be restricted or incomplete, and statements shouldn’t be learn to point that the Firm has performed an exhaustive inquiry into, or evaluation of, all probably obtainable related data. These statements are inherently unsure and you’re cautioned to not unduly depend upon these statements.
Non-GAAP Monetary Measures
To complement the Firm’s monetary data offered in accordance with GAAP and help understanding of the Firm’s enterprise efficiency, the Firm makes use of sure non-GAAP monetary measures, specifically “Adjusted EBITDA” and “Adjusted EBITDA margin.” ATI believes Adjusted EBITDA and Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by Internet Income) help traders and analysts in evaluating the Firm’s working efficiency throughout reporting intervals on a constant foundation by excluding gadgets that it doesn’t consider are indicative of ATI’s core working efficiency.
Administration believes these non-GAAP monetary measures are helpful to traders in highlighting tendencies in our working efficiency, whereas different measures can differ considerably relying on long-term strategic choices concerning capital construction, the tax jurisdictions wherein ATI operates and capital investments. Administration makes use of these non-GAAP monetary measures to complement GAAP measures of efficiency within the analysis of the effectiveness of the Firm’s enterprise methods, to make budgeting choices, to determine discretionary annual incentive compensation and to check ATI’s efficiency in opposition to that of different peer firms utilizing related measures. Administration dietary supplements GAAP outcomes with non-GAAP monetary measures to offer a extra full understanding of the components and tendencies affecting the enterprise than GAAP outcomes alone.
Adjusted EBITDA and Adjusted EBITDA margin should not acknowledged phrases below GAAP and shouldn’t be thought of as a substitute for internet earnings (loss) or the ratio of internet earnings (loss) to internet income as a measure of monetary efficiency, money flows supplied by working actions as a measure of liquidity, or another efficiency measure derived in accordance with GAAP. Moreover, these measures should not meant to be a measure of money obtainable for administration’s discretionary use as they don’t think about sure money necessities akin to curiosity funds, tax funds and debt service necessities. The displays of those measures have limitations as analytical instruments and shouldn’t be thought of in isolation, or as an alternative to evaluation of the Firm’s outcomes as reported below GAAP. As a result of not all firms use equivalent calculations, the displays of those measures will not be akin to different equally titled measures of different firms and may differ considerably from firm to firm.
Please see “Reconciliation of GAAP to Non-GAAP Monetary Measures” under for reconciliations of non-GAAP monetary measures used on this launch to their most immediately comparable GAAP monetary measures. We’re unable to offer a reconciliation between forward-looking Adjusted EBITDA to its comparable GAAP monetary measure with out unreasonable effort, as a result of excessive problem and impracticability of predicting sure quantities required by GAAP with an affordable diploma of accuracy by the date of this launch.
Contacts:
Buyers
Joanne Fong
SVP, Treasurer and Investor Relations
ATI Bodily Remedy
[email protected]
(630) 296-2222 x 7131
Media
Genesa Garbarino
Garbo Communications
[email protected]
424-499-7025
Rob Manker
Director of Buyer Advertising & Public Relations
ATI Bodily Remedy
[email protected]
630-296-2222 ext. 7432
ATI Bodily Remedy
Condensed Consolidated Statements of Operations
($ in hundreds)
(unaudited)
Three Months Ended
March 31, 2023
March 31, 2022
Internet affected person income $ 150,754
$ 138,925 Different income 16,178
14,897 Internet income 166,932
153,822
Value of companies:
Salaries and associated prices 90,703
87,415 Lease, clinic provides, contract labor and different 52,878
51,615 Provision for uncertain accounts 4,125
5,105 Whole price of companies 147,706
144,135 Promoting, basic and administrative bills 30,595
30,024 Goodwill, intangible and different asset impairment fees —
155,741 Working loss (11,369)
(176,078) Change in honest worth of warrant legal responsibility 198
(1,677) Change in honest worth of contingent frequent shares legal responsibility (709)
(24,334) Curiosity expense, internet 13,936
8,656 Different expense, internet 354
2,781 Loss earlier than taxes (25,148)
(161,504) Earnings tax expense (profit) 62
(23,281) Internet loss (25,210)
(138,223) Internet earnings (loss) attributable to non-controlling pursuits 1,060
(473) Internet loss attributable to ATI Bodily Remedy, Inc. $ (26,270)
$ (137,750)
Loss per share of Class A standard inventory:
Fundamental $ (0.15)
$ (0.70) Diluted $ (0.15)
$ (0.70) Weighted common shares excellent:
Fundamental and diluted 204,921
199,971
ATI Bodily Remedy
Condensed Consolidated Stability Sheets
($ in hundreds)
(unaudited)
March 31, 2023
December 31, 2022 Belongings:
Present belongings:
Money and money equivalents $ 63,075
$ 83,139 Accounts receivable (internet of allowance for uncertain accounts of $52,549
and $47,620 at March 31, 2023 and December 31, 2022, respectively) 82,210
80,673 Pay as you go bills 9,373
13,526 Different present belongings 6,722
10,040 Belongings held on the market 5,469
6,755 Whole present belongings 166,849
194,133
Property and gear, internet 119,508
123,690 Working lease right-of-use belongings 224,725
226,092 Goodwill, internet 286,458
286,458 Commerce title and different intangible belongings, internet 246,398
246,582 Different non-current belongings 1,823
2,030 Whole belongings $ 1,045,761
$ 1,078,985
Liabilities, Mezzanine Fairness and Stockholders’ Fairness:
Present liabilities:
Accounts payable $ 10,245
$ 12,559 Accrued bills and different liabilities 47,564
53,672 Present portion of working lease liabilities 51,911
47,676 Liabilities held on the market 1,503
2,614 Whole present liabilities 111,223
116,521
Lengthy-term debt, internet 534,137
531,600 Warrant legal responsibility 296
98 Contingent frequent shares legal responsibility 2,126
2,835 Deferred earnings tax liabilities 18,948
18,886 Working lease liabilities 216,396
218,424 Different non-current liabilities 1,821
1,834 Whole liabilities 884,947
890,198 Commitments and contingencies
Mezzanine fairness:
Collection A Senior Most popular Inventory, $0.0001 par worth; 1.0 million shares
approved; 0.2 million shares issued and excellent; $1,140.48 said
worth per share at March 31, 2023; $1,108.34 said worth per share at
December 31, 2022 140,340
140,340 Stockholders’ fairness:
Class A standard inventory, $0.0001 par worth; 470.0 million shares approved;
208.7 million shares issued, 199.5 million shares excellent at
March 31, 2023; 207.5 million shares issued, 198.4 million shares
excellent at December 31, 2022 20
20 Treasury inventory, at price, 0.24 million shares and 0.08 million shares
at March 31, 2023 and December 31, 2022, respectively (197)
(146) Extra paid-in capital 1,380,150
1,378,696 Gathered different complete earnings 1,443
4,899 Gathered deficit (1,365,781)
(1,339,511) Whole ATI Bodily Remedy, Inc. fairness 15,635
43,958 Non-controlling pursuits 4,839
4,489 Whole stockholders’ fairness 20,474
48,447 Whole liabilities, mezzanine fairness and stockholders’ fairness $ 1,045,761
$ 1,078,985
ATI Bodily Remedy
Condensed Consolidated Statements of Money Flows
($ in hundreds)
(unaudited)
Three Months Ended
March 31, 2023
March 31, 2022 Working actions:
Internet loss $ (25,210)
$ (138,223) Changes to reconcile internet loss to internet money utilized in working actions:
Goodwill, intangible and different asset impairment fees —
155,741 Depreciation and amortization 9,691
10,111 Provision for uncertain accounts 4,125
5,105 Deferred earnings tax provision 62
(23,281) Amortization of right-of-use belongings 11,850
11,807 Non-cash share-based compensation 1,454
1,960 Amortization of debt issuance prices and unique situation low cost 838
660 Non-cash curiosity expense 1,736
— Loss on extinguishment of debt —
2,809 Loss (acquire) on disposal and sale of belongings 489
(219) Change in honest worth of warrant legal responsibility 198
(1,677) Change in honest worth of contingent frequent shares legal responsibility (709)
(24,334) Adjustments in:
Accounts receivable, internet (5,770)
(10,459) Pay as you go bills and different present belongings 4,073
588 Different non-current belongings 33
14 Accounts payable (2,439)
(928) Accrued bills and different liabilities (6,168)
(544) Working lease liabilities (8,476)
(11,555) Different non-current liabilities (1)
(37) Medicare Accelerated and Advance Cost Program Funds —
(4,269) Internet money utilized in working actions (14,224)
(26,731)
Investing actions:
Purchases of property and gear (5,434)
(8,772) Proceeds from sale of property and gear —
114 Proceeds from sale of clinics 355
— Internet money utilized in investing actions (5,079)
(8,658) Financing actions:
Proceeds from long-term debt —
500,000 Deferred financing prices —
(12,952) Unique situation low cost —
(10,000) Principal funds on long-term debt —
(555,048) Proceeds from issuance of Collection A Senior Most popular Inventory —
144,667 Proceeds from issuance of 2022 Warrants —
20,333 Fairness issuance prices and unique situation low cost —
(4,935) Taxes paid on behalf of staff for shares withheld (51)
(22) Distribution to non-controlling curiosity holders (710)
(473) Internet money (utilized in) supplied by financing actions (761)
81,570
Adjustments in money and money equivalents:
Internet (lower) enhance in money and money equivalents (20,064)
46,181 Money and money equivalents at starting of interval 83,139
48,616 Money and money equivalents at finish of interval $ 63,075
$ 94,797
Supplemental noncash disclosures:
By-product modifications in honest worth $ 3,456
$ (3,752) Purchases of property and gear in accounts payable $ 1,771
$ 2,223
Different supplemental disclosures:
Money paid for curiosity $ 9,563
$ 3,932 Money obtained from hedging actions $ 3,418
$ — Money paid for taxes $ —
$ 35
ATI Bodily Remedy, Inc.
Supplemental Tables of Key Efficiency Metrics
Monetary Metrics ($ in 000’s)
Internet Affected person
Income Different Income Internet Income 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 % This fall 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) % This fall 2022 $146,196 $15,568 $161,764 $6,363 3.9 % Q1 2023 $150,754 $16,178 $166,932 $4,790 2.9 %
Operational Metrics
Visits per Day (1) Scientific FTE (2) VPD per cFTE (3) ATI Clinician Headcount (4) Contractor
Headcount (5) ATI Clinician
Headcount Provides (6) Turnover (7) Q1 2021 19,520 2,284 8.5 2,558 16 41 % 31 % Q2 2021 21,569 2,325 9.3 2,526 43 37 % 44 % Q3 2021 20,674 2,359 8.8 2,583 108 51 % 42 % This fall 2021 20,649 2,490 8.3 2,650 109 37 % 31 % Q1 2022 21,062 2,466 8.5 2,658 158 25 % 23 % Q2 2022 22,403 2,465 9.1 2,647 151 26 % 28 % Q3 2022 21,493 2,465 8.7 2,691 151 33 % 25 % This fall 2022 22,316 2,476 9.0 2,662 123 19 % 26 % Q1 2023 22,701 2,423 9.4 2,629 168 21 % 27 %
(1) Equals affected person visits divided by working days. (2) Represents scientific employees hours divided by 8 hours divided by variety of paid days. (3) Equals affected person visits divided by working days divided by scientific full-time equal staff. (4) Represents ATI worker clinician headcount at finish of interval. (5) Represents contractor clinician headcount at finish of interval. (6) Represents ATI worker clinician headcount new rent provides divided by common headcount, multiplied by 4 to annualize. (7) Represents ATI worker clinician headcount separations divided by common headcount, multiplied by 4 to annualize.
Unit Economics: PT Clinics ($ precise)
Ending Clinic Depend PT Income per Clinic (1) VPD per Clinic (2) PT Price per Go to (3) PT Salaries per Go to (4) PT Lease and Different per Clinic (5) PT Provision as % PT
Income (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 % This fall 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 % This fall 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 $56,338 2.7 %
(1) Equals Internet Affected person Income divided by common clinics over the quarter. (2) Equals affected person visits divided by working days divided by common clinics over the quarter (3) Equals Internet Affected person Income divided by affected person visits. (4) Equals estimated patient-related portion of Salaries and Associated Prices divided by affected person visits. (5) Equals estimated patient-related portion of Lease, Clinic Provides, Contract Labor and Different divided by common clinics over the quarter. (6) Equals estimated patient-related portion of Provision for Uncertain Accounts divided by Internet Affected person Income.
Buyer Satisfaction Metrics
Internet Promoter
Rating (1) Google Star
Ranking (2)
Q1 2021
75 4.9
Q2 2021
77 4.9
Q3 2021
73 4.9
This fall 2021
78 4.8
Q1 2022
74 4.9
Q2 2022
75 4.9
Q3 2022
76 4.8
This fall 2022
76 4.9
Q1 2023
76 4.8
(1) NPS measures buyer expertise from ATI affected person survey responses. The rating is calculated as the proportion of promoters much less the proportion of detractors. (2) A Google Star ranking is a five-star ranking scale that ranks companies based mostly on buyer opinions. Clients are given the chance to depart a enterprise evaluation after interacting with a enterprise, which includes selecting from one star (poor) to 5 stars (wonderful).
ATI Bodily Remedy, Inc.
Reconciliation of GAAP to Non-GAAP Monetary Measures
($ in hundreds)
(unaudited)
Three Months Ended
March 31,
2023 Internet loss $ (25,210) Plus (minus):
Internet earnings attributable to non-controlling pursuits (1,060) Curiosity expense, internet 13,936 Earnings tax expense 62 Depreciation and amortization expense 9,564 EBITDA $ (2,708) Adjustments in honest worth of warrant legal responsibility and contingent
frequent shares legal responsibility (1) (511) Transaction and integration prices (2) 5,408 Non-ordinary authorized and regulatory issues (3) 1,523 Share-based compensation 1,478 Enterprise optimization prices (4) (702) Pre-opening de novo prices (5) 172 Reorganization and severance prices (6) 130 Adjusted EBITDA $ 4,790 Adjusted EBITDA margin 2.9 %
(1) Represents non-cash quantities associated to the change within the estimated honest worth of IPO Warrants, Earnout Shares and Vesting Shares. (2) Represents non-capitalizable debt and capital transaction prices. (3) Represents non-ordinary course authorized prices associated to the beforehand disclosed ATIP stockholder class motion complaints, spinoff criticism, and SEC matter. (4) Represents realized good thing about labor associated CARES Act credit score, that was not beforehand thought of possible and pertains to prior years. (5) Represents bills related to renovation, gear and advertising and marketing prices referring to the start-up and launch of latest places incurred previous to opening. (6) Represents severance prices associated to discrete initiatives centered on reorganization and delayering of the Firm’s labor mannequin, administration construction and help capabilities.
ATI Bodily Remedy, Inc.
Reconciliation of GAAP to Non-GAAP Monetary Measures
($ in hundreds)
(unaudited)
Three Months Ended
December 31, September 30, June 30, March 31,
2022 2022 2022 2022 Internet loss $ (102,407) $ (116,694) $ (135,723) $ (138,223) Plus (minus):
Internet (earnings) loss attributable to non-controlling pursuits (358) 376 177 473 Curiosity expense, internet 13,463 11,780 11,379 8,656 Earnings tax profit (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 different asset impairment fees (1) 96,038 106,663 127,820 155,741 Goodwill, intangible and different asset impairment fees
attributable to non-controlling pursuits (1) (364) (457) (654) (940) Adjustments in honest worth of warrant legal responsibility and contingent
frequent shares legal responsibility (2) (10,357) (7,720) (2,680) (26,011) Loss on debt extinguishment (3) — — — 2,809 Loss on authorized settlement (4) — — 3,000 — Share-based compensation 1,544 1,920 2,004 1,964 Non-ordinary authorized and regulatory issues (5) 937 772 2,202 2,497 Pre-opening de novo prices (6) 101 224 286 381 Transaction and integration prices (7) 1,093 55 603 1,538 Reorganization and severance prices (8) 1,797 — — — Enterprise optimization prices (9) (105) — — — Acquire on sale of Residence Well being service line, internet — — — (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 fees associated to the write-down of goodwill, commerce title indefinite-lived intangible and different belongings. (2) Represents non-cash quantities associated to the change within the estimated honest worth of IPO Warrants, Earnout Shares and Vesting Shares. (3) Represents fees associated to the derecognition of the unamortized deferred financing prices and unique issuance low cost related to the total compensation of the 2016 first lien time period mortgage. (4) Represents cost for internet settlement legal responsibility associated to billing dispute. (5) Represents non-ordinary course authorized prices associated to the beforehand disclosed ATIP stockholder class motion complaints, spinoff criticism, and SEC matter. (6) Represents bills related to renovation, gear and advertising and marketing prices referring to the start-up and launch of latest places incurred previous to opening. (7) Represents prices associated to theBusiness Mixture with FVAC II and non-capitalizable debt and capital transaction prices. (8) Represents severance, consulting and different prices associated to discrete initiatives centered on reorganization and delayering of the Firm’s labor mannequin, administration construction and help capabilities. (9) Represents non-recurring prices to optimize our platform and ATI transformative initiatives. Prices primarily relate to duplicate prices pushed by IT and Income Cycle Administration conversions, labor associated prices throughout the transition of key positions and different incremental prices of driving optimization initiatives.
ATI Bodily Remedy, Inc.
Reconciliation of GAAP to Non-GAAP Monetary Measures
($ in hundreds)
(unaudited)
Three Months Ended
December 31, September 30, June 30, March 31,
2021 2021 2021 2021 Internet earnings (loss) $1,690 ($326,774) ($439,126) ($17,818) Plus (minus):
Internet (earnings) loss attributable to non-controlling pursuits (869) 2,109 3,769 (1,309) Curiosity expense, internet 7,215 7,386 15,632 16,087 Curiosity expense on redeemable most popular inventory — — 4,779 5,308 Earnings tax profit (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 different asset impairment fees (1) — 508,972 453,331 — Goodwill, intangible and different asset impairment fees
attributable to non-controlling curiosity (1) — (2,928) (5,021) — Adjustments in honest worth of warrant legal responsibility and contingent
frequent shares legal responsibility (2) (10,046) (162,202) (25,487) — Acquire on sale of Residence Well being service line, internet (5,846) — — — Reorganization and severance prices (3) — 3,551 — 362 Transaction and integration prices (4) 955 2,335 3,580 2,918 Share-based compensation 905 1,248 3,112 504 Pre-opening de novo prices (5) 543 511 441 434 Non-ordinary authorized and regulatory issues (6) 2,472 442 — — Loss on debt extinguishment (7) — — 5,534 — Loss on settlement of redeemable most popular inventory (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 fees associated to the write-down of goodwill, commerce title indefinite-lived intangible and different belongings. (2) Represents non-cash quantities associated to the change within the estimated honest worth of IPO Warrants, Earnout Shares and Vesting Shares. (3) Represents severance, consulting and different prices associated to discrete initiatives centered on reorganization and delayering of the Firm’s labor mannequin, administration construction and help capabilities. (4) Represents prices associated to the Enterprise Mixture with FVAC II, non-capitalizable debt transaction prices, clinic acquisitions and acquisition-related integration and consulting and planning prices associated to preparation to function as a public firm. (5) Represents bills related to renovation, gear and advertising and marketing prices referring to the start-up and launch of latest places incurred previous to opening. (6) Represents non-ordinary course authorized prices associated to the beforehand disclosed ATIP stockholder class motion complaints, spinoff criticism and SEC matter. (7) Represents fees associated to the derecognition of the proportionate quantity of remaining unamortized deferred financing prices and unique issuance low cost related to the partial compensation of the primary lien time period mortgage and derecognition of the unamortized unique issuance low cost related to the total compensation of the subordinated second lien time period mortgage. (8) Represents loss on settlement of redeemable most popular inventory based mostly on the worth of money and fairness supplied to most popular stockholders in relation to the excellent redeemable most popular inventory legal responsibility on the time of the closing of the Enterprise Mixture with FVAC II.
SOURCE ATI Bodily Remedy