ATI Physical Therapy(US:ATIP)2024-05-06 23:21Financial Data and Key Metrics Changes - Net revenue for Q1 2024 was $181 million, an 8.7% increase from $167 million in Q1 2023 [21] - Net patient revenue increased by 9.7% year-over-year to $165 million, while other revenue rose by 0.7% to $16 million [21] - Adjusted EBITDA for the quarter was $6 million, reflecting a 3.6% margin, up from $4.8 million in the prior year [25] Business Line Data and Key Metrics Changes - Patient visits per day per clinic increased to 26.9, up 1.9 visits year-over-year from 25 [21] - Rate per visit improved to $108.42, a 4.5% increase from $103.76 in the previous year [22] - Clinical FTE growth year-over-year contributed to improved operational performance [13] Market Data and Key Metrics Changes - The company experienced over 1,100 more patient visits each day compared to the previous year [9] - The company closed 11 clinics and divested one clinic as part of its strategic real estate plan [10] Company Strategy and Development Direction - The company aims to strengthen its culture, grow its provider base, and enhance patient access while improving financial performance [9] - Focus areas include leveraging patient outcomes data in payer negotiations and advocating for improved reimbursement rates for physical therapy [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue growing despite challenges in the labor market [27] - The company anticipates Q2 2024 revenue to be between $185 million and $195 million, reflecting a growth of 7% to 13% over the prior year [27][28] Other Important Information - The company achieved a significant reduction in clinician turnover rate to 16% in Q1 2024, down from the low 20s in the previous three quarters [13] - The company reported a net loss of $14 million for the quarter, an improvement from a loss of $25 million in Q1 2023 [25] Q&A Session Summary Question: Thoughts on sustainability of rate growth - Management acknowledged strong progress but indicated that future rate growth may be less predictable [30][31] Question: Labor costs and productivity outlook - Management noted that productivity was impacted by one-time factors but expects improvements moving forward [36][37]