ATI Physical Therapy(ATIP) - 2024 Q2 - Quarterly Results

Financial Performance - Net revenue for Q2 2024 was $188.1 million, a 9.2% increase from $172.3 million in Q2 2023[2] - Net patient revenue increased by 10.1% to $172.8 million compared to $156.9 million in the same period last year[2] - Adjusted EBITDA for Q2 2024 was $16.6 million, a significant increase of 77.5% from $9.3 million in Q2 2023[7] - Operating income for the three months ended June 30, 2024, was $6.626 million, compared to a loss of $12.360 million for the same period in 2023[25] - Net loss attributable to ATI Physical Therapy, Inc. for the three months ended June 30, 2024, was $3.735 million, a decrease from a loss of $22.705 million for the same period in 2023[25] - Net loss for the six months ended June 30, 2024, was $16,075, compared to a net loss of $46,959 for the same period in 2023, representing a significant improvement[30] - Net loss for Q2 2024 was $2,552,000, a significant improvement from a loss of $13,523,000 in Q1 2024[37] Revenue and Growth Projections - The company expects Q3 2024 revenue to be between $180 million and $190 million, indicating a year-over-year growth of approximately 1% to 7%[10] - Total net revenue for the six months ended June 30, 2024, was $369.584 million, up 8.9% from $339.269 million for the same period in 2023[25] Clinic Operations - The company closed 2 clinics and divested 4 clinics during the quarter, resulting in a total of 878 clinics[9] - The number of clinics at the end of Q2 2024 was 878, with PT revenue per clinic increasing to $196,610[34] - Visits per Day (VPD) rose to 24,921, reflecting a 6.4% increase from 23,412 in Q2 2023[1] - The average visits per day (VPD) per clinic in Q2 2024 was 28.4, indicating a positive trend in patient engagement[34] Expenses and Costs - Salaries and related costs increased by 7.6% to $102.5 million, primarily due to added clinicians and wage inflation[3] - Selling, general and administrative expenses decreased by 36.9% to $23.1 million, driven by lower transaction costs and higher legal cost reimbursements[4] - Interest expense for Q2 2024 was $14,896,000, slightly increasing from $14,483,000 in Q1 2024[37] - The company has been focusing on non-ordinary legal and regulatory matters, incurring costs of $1,853,000 in Q2 2024[37] Cash and Liquidity - As of June 30, 2024, total liquidity was $33.0 million, consisting of cash and cash equivalents[9] - Cash and cash equivalents as of June 30, 2024, were $32.963 million, down from $36.802 million as of December 31, 2023[27] - The company reported a significant increase in cash and cash equivalents, ending the period with $32,963 compared to $37,679 at the end of the previous period[31] Financial Ratios and Metrics - Adjusted EBITDA margin is used to provide a clearer picture of the company's operating performance, although specific figures for Adjusted EBITDA were not disclosed in the provided content[20] - Net patient revenue for Q2 2024 reached $172,755, with an adjusted EBITDA of $16,579, resulting in an adjusted EBITDA margin of 8.8%[32] - The provision for doubtful accounts as a percentage of PT revenue was 1.4% in Q2 2024, reflecting improved financial health[34] Customer Satisfaction - Net Promoter Score (NPS) remained stable at 75 in Q2 2024, while customer satisfaction metrics showed a Google Star Rating of 4.9[35] - Customer satisfaction metrics indicated a Google Star Rating of 4.8 in Q1 2024, consistent with the previous quarter[35]