NYSE$ATIP

ATI Physical Therapy Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

ATI reported increased revenue, visits per day, rate per visit and adjusted EBITDA, driven by transformation initiatives and strong demand.

ATI Physical Therapy reported a 5.5% year-over-year increase in net revenue to $172.3 million for Q2 2023. The company's visits per day increased by 4.5% year-over-year, with a rate per visit increase of 1.1%. Adjusted EBITDA was $9.3 million, up from $5.4 million in Q2 2022.

  • Net revenue increased by 5.5% year-over-year to $172.3 million.
  • Visits per day increased by 4.5% year-over-year to 23,412.
  • Rate per visit increased by 1.1% year-over-year to $104.74.
  • Adjusted EBITDA increased to $9.3 million, with a margin of 5.4%.

Headline financials

Total Revenue

$172M

Previous: $163M+5.5%
EPS (adj)

-$17.97

Previous: -$34.50+47.9%
Visits per Day

23.4K

Previous: 22.4K+4.5%
Rate per Visit

$104.74

Previous: $103.57+1.1%
Capital Expenditures

$4.56M

Previous: $9.07M-49.8%
Free Cash Flow

$4.35M

Previous: -$15.1M+128.8%
Net Income

-$21.7M

Previous: -$136M+84.0%
Operating Income

-$12.4M

Previous: -$140M+91.2%
Gross Profit

$26.6M

Previous: $23.3M+14.1%
Cash & Equivalents

$37.7M

Previous: $79.7M-52.7%
Total Assets

$1.01B

Previous: $1.31B-22.9%
Stock-Based Comp

$2.75M

Previous: $1.96M+40.6%

Revenue & EPS history

ATI · Revenue · Quarterly

$172M

Q2 2023+5.5%vs Q2 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

ATI · $172M total across 2 segments · Q2 2023

  • Net Patient Revenue
    $157M+5.7%
  • Other Revenue
    $15.4M+4.1%

Forward guidance

For the full year 2023, ATI expects net revenue to be in the range of $680 million to $695 million, representing approximately 7% to 9% year-over-year growth. Adjusted EBITDA is expected to be in the range of $30 million to $36 million.

Tailwinds

  • Net revenue to be in the range of $680 million to $695 million, representing approximately 7% to 9% year-over-year growth.
  • Anticipation of steadily increasing patient visits through the second half of 2023.
  • Execution on people, operations, and commercial strategies.
  • Adjusted EBITDA to be in the range of $30 million to $36 million.
  • Optimizing geographic footprint by closing underperforming clinics and consolidating locations.

Headwinds

  • Expected net reduction of approximately 20 clinics for full year 2023.
  • Continued physical therapist attrition.
  • Challenges in achieving and maintaining clinical staffing levels.
  • Risks associated with liquidity and capital markets.
  • Dependence on governmental and third-party private payors for reimbursement.

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 2023

Historical avgQ2 2023

-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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