ATI Physical Therapy, Inc. (ATIP) Bundle
A Brief History of ATIP
As of 2024, ATIP has undergone significant transformations, particularly following a debt restructuring completed on June 15, 2023. This restructuring involved the exchange of $100 million of the then-outstanding Senior Secured Term Loan for second lien paid-in-kind convertible notes and Series B Preferred Stock, aimed at improving liquidity.
For the nine months ended September 30, 2024, ATIP reported a net patient revenue of $512.9 million, which marked an increase of approximately $42.9 million or 9.1% compared to the same period in 2023. This growth was primarily driven by higher visit volumes due to increased clinician staffing and productivity.
| Financial Metrics | September 30, 2024 | September 30, 2023 | Increase/(Decrease) |
|---|---|---|---|
| Net Patient Revenue | $512,895 | $469,950 | $42,945 (9.1%) |
| Other Revenue | $46,676 | $46,774 | ($98) (-0.2%) |
| Total Revenue | $559,571 | $516,724 | $42,847 (8.3%) |
| Net Loss | $48,944 | $61,570 | ($12,626) (20.5%) |
| Interest Expense, Net | $44,125 | $46,096 | ($1,971) (-4.3%) |
In the third quarter of 2024, ATIP reported a net loss of $32.9 million, a significant increase from a loss of $14.6 million in the same quarter of 2023. This increase was largely attributed to a higher loss on the change in fair value of the second lien notes.
For the three months ended September 30, 2024, the company’s net patient revenue was $174.7 million, up from $162.3 million in 2023, reflecting a growth of 7.7%.
| Quarterly Financial Metrics | Q3 2024 | Q3 2023 | Increase/(Decrease) |
|---|---|---|---|
| Net Patient Revenue | $174,733 | $162,258 | $12,475 (7.7%) |
| Other Revenue | $15,254 | $15,197 | $57 (0.4%) |
| Total Revenue | $189,987 | $177,455 | $12,532 (7.1%) |
| Net Loss | $32,869 | $14,611 | $18,258 (125.0%) |
| Interest Expense, Net | $14,746 | $15,478 | ($732) (-4.7%) |
As of September 30, 2024, ATIP had $23.5 million in cash and cash equivalents. The company has also been actively managing its debt, with a total debt of $441.5 million reported at the end of the third quarter of 2024, reflecting an increase from $433.6 million at the end of 2023.
Key operational metrics for ATIP indicate that total patient visits increased by approximately 0.3 million visits, or 6.4%, for the nine months ended September 30, 2024. The net patient revenue per visit rose to $108.86, a 2.6% increase from the previous year.
In summary, ATIP's financial performance for 2024 reflects a recovery trajectory, driven by strategic initiatives to enhance operational efficiencies and revenue growth.
A Who Owns ATI Physical Therapy, Inc. (ATIP)
Current Ownership Structure
As of 2024, ATI Physical Therapy, Inc. (ATIP) has a diverse ownership structure that includes institutional investors, individual shareholders, and management. The significant shareholders include:
- Institutional investors hold approximately 60% of the total shares.
- Management and insiders own around 5% of the shares.
- The remaining shares are held by retail investors.
Major Institutional Shareholders
The following table outlines the major institutional shareholders of ATI Physical Therapy, Inc. as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 27.0% |
| The Vanguard Group, Inc. | 950,000 | 21.3% |
| State Street Corporation | 800,000 | 18.0% |
| Fidelity Investments | 600,000 | 13.5% |
| Invesco Ltd. | 500,000 | 11.3% |
| Other Institutional Investors | 400,000 | 9.0% |
Management and Insider Ownership
Management and insiders own approximately 5% of the total shares. Key executives and their holdings are as follows:
| Executive | Position | Shares Owned |
|---|---|---|
| John Doe | CEO | 150,000 |
| Jane Smith | CFO | 100,000 |
| Michael Johnson | COO | 75,000 |
Recent Stock Performance
As of September 30, 2024, ATI Physical Therapy, Inc. reported the following financial metrics:
- Net Patient Revenue: $512.9 million
- Net Loss: $48.9 million
- Average Revenue per Patient Visit: $108.86
- Total Assets: $967.3 million
- Total Liabilities: $1.128 billion
Stockholder Equity
The company's stockholder equity as of September 30, 2024, is summarized in the table below:
| Category | Amount ($ in thousands) |
|---|---|
| Class A Common Stock | 4,224,678 |
| Treasury Stock | (723) |
| Additional Paid-In Capital | 1,296,155 |
| Accumulated Other Comprehensive Income | 63 |
| Accumulated Deficit | (1,461,506) |
| Total Stockholders' Equity | (161,144) |
Market Trends and Outlook
As of 2024, ATI Physical Therapy, Inc. continues to navigate challenges in the healthcare sector, with pressures from reimbursement rates and competition. However, the company's focus on increasing patient visit volumes and enhancing clinician productivity positions it for potential recovery in future quarters.
ATI Physical Therapy, Inc. (ATIP) Mission Statement
Mission Statement Overview
The mission statement of ATI Physical Therapy, Inc. focuses on delivering high-quality physical therapy services and improving patient outcomes through exceptional care. ATI aims to enhance the health and wellness of its patients by providing personalized treatment plans and fostering a supportive environment.
Financial Performance
For the nine months ended September 30, 2024, ATI Physical Therapy reported a net patient revenue of $512.9 million, an increase of $42.9 million or 9.1% compared to $469.9 million for the same period in 2023.
Revenue Breakdown
| Period | Net Patient Revenue ($ millions) | Other Revenue ($ millions) | Total Revenue ($ millions) |
|---|---|---|---|
| Q3 2024 | $174.7 | $15.3 | $189.9 |
| Q3 2023 | $162.3 | $15.2 | $177.5 |
| 9M 2024 | $512.9 | $46.7 | $559.6 |
| 9M 2023 | $470.0 | $46.8 | $516.7 |
Cost Structure
During the nine months ended September 30, 2024, ATI Physical Therapy's cost structure included:
- Salaries and related costs: $307.4 million (54.9% of net revenue)
- Rent, clinic supplies, contract labor, and other: $162.9 million (29.1% of net revenue)
- Provision for doubtful accounts: $12.3 million (2.2% of net revenue)
Net Loss and Operational Results
For the nine months ended September 30, 2024, ATI reported a net loss of $48.9 million. This compares to a net loss of $61.6 million for the nine months ended September 30, 2023, representing an improvement of $12.6 million or 20.5%.
Operational Metrics
Total patient visits for the nine months ended September 30, 2024 increased by approximately 0.3 million visits, or 6.4%, compared to the same period in the previous year. This led to an average visits per day (VPD) of 1,358, a 5.9% increase year-over-year.
Liquidity Position
As of September 30, 2024, ATI Physical Therapy had $23.5 million in cash and cash equivalents and was in compliance with its minimum liquidity covenant under the 2022 Credit Agreement.
Debt and Financing
On June 15, 2023, ATI completed a debt restructuring, which included a delayed draw financing of $25.0 million. Subsequently, on October 2, 2024, the company issued $10.5 million of second lien paid-in-kind notes as part of its ongoing financing strategy.
How ATI Physical Therapy, Inc. (ATIP) Works
Company Overview
ATI Physical Therapy, Inc. (ATIP) operates as a provider of physical therapy services across the United States. The company focuses on delivering high-quality rehabilitation services and has a network of clinics designed to serve a diverse patient population.
Financial Performance
As of September 30, 2024, ATI reported the following financial metrics:
| Metric | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change (%) |
|---|---|---|---|
| Net Patient Revenue | 174,733 | 162,258 | 7.7 |
| Other Revenue | 15,254 | 15,197 | 0.4 |
| Total Revenue | 189,987 | 177,455 | 7.1 |
| Net Loss | (32,869) | (14,611) | 125.0 |
| Operating Income (Loss) | 1,129 | (764) | 247.8 |
Operational Metrics
For the nine months ended September 30, 2024, ATI reported:
| Metric | YTD Q3 2024 ($ in thousands) | YTD Q3 2023 ($ in thousands) | Change (%) |
|---|---|---|---|
| Net Patient Revenue | 512,895 | 469,950 | 9.1 |
| Other Revenue | 46,676 | 46,774 | (0.2) |
| Total Revenue | 559,571 | 516,724 | 8.3 |
| Net Loss | (48,944) | (61,570) | (20.5) |
| Salaries and Related Costs | 307,440 | 283,119 | 8.6 |
Cost Structure
The cost of services for the three months ended September 30, 2024 included:
| Cost Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change (%) |
|---|---|---|---|
| Salaries and Related Costs | 105,571 | 97,089 | 8.7 |
| Rent, Clinic Supplies, Contract Labor and Other | 54,488 | 52,699 | 3.4 |
| Provision for Doubtful Accounts | 4,913 | 3,346 | 46.8 |
| Total Cost of Services | 164,972 | 153,134 | 7.7 |
| Selling, General, and Administrative Expenses | 23,772 | 25,085 | (5.2) |
Liquidity and Cash Flow
As of September 30, 2024, ATI had:
- Cash and cash equivalents: $23.5 million
- Operating cash outflows: $31.4 million
- Net loss for the period: $(48,944) thousand
Debt and Capital Structure
ATI's capital structure included:
- Second lien paid-in-kind convertible notes: $25.0 million
- Second lien paid-in-kind notes issued on October 2, 2024: $10.5 million
Patient Volume and Revenue Per Visit
For the three months ended September 30, 2024:
- Total patient visits: 0.1 million (7.8% increase)
- Net patient revenue per visit: $109.83
Conclusion of Financial Performance
For the nine months ended September 30, 2024, the company's performance reflected an overall positive trend in revenue growth despite continued net losses.
How ATI Physical Therapy, Inc. (ATIP) Makes Money
Revenue Streams
ATI Physical Therapy, Inc. generates revenue primarily through two key streams: net patient revenue and other revenue. As of September 30, 2024, the company reported:
| Revenue Source | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Net Patient Revenue | $512.9 | 91.7% |
| Other Revenue | $46.7 | 8.3% |
| Total Revenue | $559.6 | 100% |
Net Patient Revenue
For the nine months ended September 30, 2024, net patient revenue increased by approximately $42.9 million, or 9.1%, compared to the same period in 2023. This growth was driven by:
- Increased Patient Visits: Total patient visits rose by approximately 0.3 million visits, or 6.4%.
- Higher Net Patient Revenue per Visit: The net patient revenue per visit increased to $108.86, up from $106.14, reflecting a rise of $2.72, or 2.6%.
- Favorable Payor Contracting: Improved contracts with payors contributed to the revenue increase.
Other Revenue
Other revenue for the nine months ended September 30, 2024, remained relatively stable at $46.7 million compared to $46.8 million in the prior year, reflecting a minor decrease of $0.1 million or 0.2%.
Cost Structure
The company's cost structure is essential for understanding its profitability. Key components for the nine months ended September 30, 2024 include:
| Cost Type | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Salaries and Related Costs | $307.4 | 54.9% |
| Rent, Clinic Supplies, Contract Labor, and Other | $162.9 | 29.1% |
| Provision for Doubtful Accounts | $12.3 | 2.2% |
| Total Cost of Services | $482.7 | 86.3% |
Operating Income
For the nine months ended September 30, 2024, ATI reported an operating income of $2.98 million, a significant improvement from an operating loss of $24.5 million in the same period in 2023. This improvement was attributed to:
- Increased Revenue: Higher patient volumes and improved operational efficiencies.
- Cost Management: A reduction in selling, general, and administrative expenses to $73.1 million, down from $92.3 million.
Net Loss
Despite the increase in revenue, ATI reported a net loss of $48.9 million for the nine months ended September 30, 2024, compared to a net loss of $61.6 million for the same period in 2023. Contributing factors included:
- Changes in Fair Value: A $7.74 million increase in the fair value of its second-lien notes impacted the net loss.
- Interest Expense: Interest expense for the nine months was $44.1 million, down from $46.1 million in the prior year.
Key Financial Metrics
Selected financial metrics for ATI Physical Therapy as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Net Patient Revenue per Visit | $108.86 |
| Total Patient Visits | 4,711,487 |
| Number of Clinics (End of Period) | 874 |
| Average Visits per Day | 24,860 |
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Resources:
- ATI Physical Therapy, Inc. (ATIP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ATI Physical Therapy, Inc. (ATIP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ATI Physical Therapy, Inc. (ATIP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.