NYSE$ATIP

ATI Physical Therapy Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Second quarter 2022 results reported, with full year 2022 guidance revised due to challenging labor market.

ATI Physical Therapy reported a slight increase in net operating revenue to $163.3 million, a 6% increase quarter over quarter but essentially flat year over year. The company faces headwinds in a tight labor market, leading to revised full-year 2022 guidance and non-cash impairment charges of approximately $128 million.

  • Net operating revenue increased by 6% quarter over quarter, remaining flat year over year at $163.3 million.
  • Visits per Day (VPD) increased by 6% quarter over quarter and 4% year over year, reaching 22,403.
  • The company opened 10 new clinics and closed 6, bringing the total to 926 clinics.
  • Full year 2022 guidance was revised due to the challenging labor market and increasing labor cost pressures.

Headline financials

Total Revenue

$163M

Previous: $164M-0.5%
EPS (adj)

-$34.50

Previous: -$161.00+78.6%
Visits per Day

22.4K

Previous: 21.6K+3.9%
VPD per Clinic

24.2

Previous: 24.3-0.4%
Rate per Visit

$103.57

Previous: $106.26-2.5%
Google Star Rating

4.9

No prior period
Capital Expenditures

$9.07M

Previous: $9.81M-7.6%
Free Cash Flow

-$15.1M

Previous: -$6.85M-120.2%
Net Income

-$136M

Previous: -$5.53M-2356.1%
Operating Income

-$140M

Previous: $9.06M-1643.4%
Gross Profit

$23.3M

Previous: $39M-40.4%
Cash & Equivalents

$79.7M

Previous: $90.6M-12.0%
Total Assets

$1.31B

Previous: $2.1B-37.6%
Stock-Based Comp

$1.96M

Previous: $3.11M-37.1%

Revenue & EPS history

ATI · Revenue · Quarterly

$163M

Q2 2022-0.5%vs Q2 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

ATI · $163M total across 2 segments · Q2 2022

  • Net Patient Revenue
    $149M+1.2%
  • Other Revenue
    $14.8M-14.8%

Forward guidance

ATI revises full year 2022 guidance for net operating revenue to be in a range of $635 million to $655 million and Adjusted EBITDA to be in a range of $5 million to $15 million. The change in guidance is driven by the challenging labor market reducing the number of clinical FTE expected in the second half of 2022 along with increasing labor cost pressures. The Company maintains new clinic openings guidance to be approximately 35.

Tailwinds

  • Company maintains new clinic openings guidance to be approximately 35.

Headwinds

  • Challenging labor market reducing the number of clinical FTE expected in the second half of 2022
  • Increasing labor cost pressures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.1%

Avg return

Earnings day

-4.5%

Avg return

5 days after

-13.0%

Avg return

30 days after

50%

9 / 18 earnings

Positive

+50.0%

Q4 2022

Best reaction

-43.8%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.5%+0.0%-5.6%
Q3 2024-43.8%-53.5%-81.8%
Q2 2024-7.3%-4.9%-8.6%
Q1 2024+1.1%-13.0%-27.9%
Q4 2023+7.9%+2.8%-13.0%
Q3 2023+4.7%-4.5%-9.5%
Q2 2023+2.0%+15.5%+20.1%
Q1 2023-0.3%-2.3%+1.9%
Q4 2022+50.0%+36.0%+8.8%
Q3 2022-37.2%-37.4%-73.4%
Q2 2022-7.1%-15.2%-5.4%
Q1 2022+2.7%-2.1%-10.6%
Q4 2021-9.2%-8.2%-4.6%
Q4 2019-9.2%-8.2%-4.6%
Q3 2021+27.6%+29.5%+19.2%
Q2 2021-6.3%-6.6%-12.4%
Q1 2021+0.1%
Q4 2020-0.5%
Q2 2020
Q1 2020

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