BOLINGBROOK, Ill., Feb. 25, 2022 /PRNewswire/ -- ATI Physical
Therapy – ("ATI" or the "Company") (NYSE: ATIP), the largest
single-branded outpatient physical therapy provider in the United
States, today reported financial results for the fourth
quarter and full year ended December 31,
2021.
"We achieved our revenue guidance for the year and approximated
the low end of our Adjusted EBITDA1 range," said
Jack Larsen, Executive Chairman of
ATI Physical Therapy. "Despite a pronounced impact from recent
COVID variants on daily operations, disrupting both patient
scheduling and clinical staff attendance, our nationwide team
stayed true to our central mission to deliver high quality care and
service to our customers as illustrated by an increase in our Net
Promotor Score to 78 from 73 during the third quarter and a Google
Star Rating of 4.8."
Mr. Larsen continued, "During the quarter, we also saw increased
therapist retention, with annualized clinician turnover declining
400 basis points quarter over quarter, and clinical FTE increasing
to nearly 2,500. Moreover, we refreshed our sales and
marketing strategy and have identified high priority channels for
our field-based sales team, working closely with our clinic
directors, to drive referrals and visits throughout the year."
Joe Jordan, Chief Financial
Officer of ATI Physical Therapy, added, "As discussed below, we
refinanced our first lien term loan this week with a new credit
agreement and revolving credit facility and issued perpetual
preferred stock with detachable warrants. With this
refinancing transaction, we reduced leverage and increased
liquidity in order to establish a strong footing to support
operations and invest in our people and growth strategies as we
work to continue scaling the business."
Fourth Quarter 2021 Results
Supplemental tables of key performance metrics for the first
quarter of 2019 through the fourth quarter of 2021 are presented
after the financial statements at the end of this press
release. Commentary on performance results in the fourth
quarter of 2021 is as follows:
- Net operating revenue was $155.8
million compared to $159.0
million in the third quarter of 2021 and $153.1 million in the fourth quarter of 2020, a
decrease of 2.0% quarter over quarter and an increase of 1.7% year
over year.
-
- Net patient revenue was $140.3
million compared to $141.9
million in the third quarter of 2021 and $136.8 million in the fourth quarter of 2020, a
decrease of 1.1% quarter over quarter and an increase of 2.5% year
over year. See below for discussion of drivers to net patient
revenue, i.e. patient visits and Rate per Visit.
- Other revenue was $15.5 million
compared to $17.2 million in the
third quarter of 2021 and $16.3
million in the fourth quarter of 2020, a decrease of 9.7%
quarter over quarter and a decrease of 4.8% year over year. The
decrease was primarily due to sale of the Home Health service line
on October 1, 2021.
- Visits per Day ("VPD") were 20,649 compared to 20,674 in the
third quarter of 2021 and 19,441 in the fourth quarter of 2020,
essentially flat quarter over quarter and an increase of 6.2% year
over year.
VPD per Clinic was 22.8 compared to 23.1 in the third quarter of
2021 and 22.2 in the fourth quarter of 2020, a decrease of 0.3
quarter over quarter and an increase of 0.6 year over year. During
the last 2 weeks in December 2021,
there was a significant negative impact to visits across our
platform as the Omicron wave of COVID caused an increase in patient
appointment cancellations, clinical staff sick absences, and
overall decline in referral volume.
- Rate per Visit was $104.51
compared to $105.56 in the third
quarter of 2021 and $109.98 in the
fourth quarter of 2020, a decrease of 1.0% quarter over quarter and
5.0% year over year. The decreases were primarily due to continued
unfavorable incremental mix shifts in payor classes, states and
services.
- Salaries and related costs were $88.1
million compared to $86.8
million in the third quarter of 2021 and $79.1 million in the fourth quarter of 2020, an
increase of 1.4% quarter over quarter and 11.3% year over year due
to lower labor productivity and wage inflation.
PT salaries and related costs per Visit were $55.73 compared to $53.70 in the third quarter of 2021 and
$52.16 in the fourth quarter of 2020,
an increase of 3.8% quarter over quarter and 6.9% year over year.
The increases were due to lower labor productivity of 8.3 VPD per
clinical FTE compared to 8.8 in both the third quarter of 2021 and
the fourth quarter of 2020. The year over year increase was also
due to wage inflation experienced in certain pockets of the country
in 2021 compared to 2020.
- Rent, clinic supplies, contract labor and other was
$47.8 million compared to
$45.8 million in the third quarter of
2021 and $42.8 million in the fourth
quarter of 2020, an increase of 4.4% quarter over quarter and an
increase of 11.6% year over year due to more clinics, higher use of
contract labor, and higher advertising expenses.
PT rent, clinic supplies, contract labor and other per Clinic was
$50,976 compared to $49,499 in the third quarter of 2021 and
$47,168 in the fourth quarter of
2020, an increase of 3.0% quarter over quarter and 8.1% year over
year. The sequential quarter and year over year increases were
primarily driven by greater use of contract labor while we worked
to fill open positions. An additional contributor was higher
advertising expenditures.
- Provision for doubtful accounts was $2.1
million compared to $3.5
million in the third quarter of 2021 and $3.3 million in the fourth quarter of
2020. PT provision as a percent of
net patient revenue was 1.5% compared to 2.5% in the third quarter
of 2021 and 2.4% in the fourth quarter of 2020, reflecting improved
collections.
- Selling, general and administrative expenses were $29.9 million compared to $30.8 million in the third quarter of 2021 and
$30.0 million in the fourth quarter
of 2020, a decrease of 2.9% quarter over quarter and 0.5% year over
year primarily due to variations in non-recurring expenditures.
- Income tax benefit was $12.4
million compared to $28.3
million in the third quarter of 2021 and $2.0 million in the fourth quarter of 2020.
- Net income (loss) was $8.7
million compared to $(333.8)
million in the third quarter of 2021 and $2.2 million in the fourth quarter of 2020. The
third quarter 2021 net loss included significant non-cash items,
notably goodwill and intangible asset impairment charges of
$(509.0) million and change in fair
value of warrant liability and contingent common shares liability
of $162.2 million. The non-cash
change in fair value of warrant liability and contingent common
shares liability in the fourth quarter of 2021 was $10.0 million.
- Adjusted EBITDA1 was $1.6
million compared to $8.5
million in the third quarter of 2021 and $18.6 million (excluding CARES Act Provider
Relief Funds of $24.1 million) in the
fourth quarter of 2020, a decrease of 80.8% quarter over quarter
and 91.2% year over year. The sequential quarter decrease was
primarily driven by lower revenue and higher salaries and related
costs and higher rent, clinic supplies, and contract labor
costs.
Adjusted EBITDA margin was 1.1% compared to 5.4% in the third
quarter of 2021 and 12.2% (excluding CARES Act Provider Relief
Funds) in the fourth quarter of 2020.
- Net (decrease) increase in cash was $(17.5) million compared to $(24.5) million in the third quarter of 2021 and
$11.9 million in the fourth quarter
of 2020. Cash use in the fourth quarter of 2021 included
$9.2 million in connection with the
Medicare Accelerated and Advance Payment Program ("MAAPP") and
deferral of the employer portion of Social Security taxes under the
CARES Act.
Summary of key balance sheet items as of December 31, 2021 is as follows:
- Cash and cash equivalents totaled $48.6
million, and the revolving credit facility was undrawn with
available capacity of $19.8 million,
net of usage by letters of credit, equaling $68.4 million in available liquidity.
Other notable achievements and/or news in the fourth quarter of
2021 were as follows:
- Opened 20 new clinics in existing states, including
Georgia, Massachusetts, Michigan, and Texas; and closed 10 clinics primarily in
Illinois. This brings the total
number of clinics for the year to 910. The company continues to
capitalize on growth opportunities in individual markets, while
optimizing its footprint and financial return in other local
markets.
- Net Promotor Score ("NPS") of 78 and Google Star Rating of 4.8,
reflecting continued high customer satisfaction and brand
loyalty.
Full Year 2021 Results
Commentary on performance results for the full year 2021 is as
follows:
- Net operating revenue was $627.9
million compared to $592.3
million for the full year 2020, an increase of 6.0% year
over year.
-
- Net patient revenue was $561.1
million compared to $529.6
million for the full year 2020, an increase of 5.9% year
over year.
- Other revenue was $66.8 million
compared to $62.7 million for the
full year 2020, an increase of 6.6% year over year.
- Salaries and related costs were $336.5
million compared to $306.5
million for the full year 2020, an increase of 9.8% year
over year.
- Rent, clinic supplies, contract labor and other was
$180.9 million compared to
$166.1 million for the full year
2020, an increase of 8.9% year over year.
- Provision for doubtful accounts was $16.4 million compared to $16.2 million for the full year 2020. Provision
as a percent of net operating revenue was 2.6% compared to 2.7% for
the full year 2020.
- Selling, general and administrative expenses were $111.8 million compared to $104.3 million for the full year 2020, an
increase of 7.2% year over year.
- Non-cash goodwill and intangible asset impairment charges
totaled $962.3 million. As a result
of revisions to our forecasts reported in July and October 2021, including the factors related to
our revisions of the forecasts, it was determined that the fair
value amounts of goodwill and trade name were below their
respective carrying amounts.
- Income tax benefit was $71.0
million compared to an expense of $2.1 million for the full year 2020.
- Net (loss) income was $(782.0)
million compared to $(0.3)
million for the full year 2020.
- Adjusted EBITDA1 was $39.8 million compared to $63.6 million (excluding CARES Act Provider
Relief Funds of $91.5 million) for
the full year 2020, a decrease of 37.5% year over year.
Adjusted EBITDA margin was 6.3% compared to 10.7% (excluding CARES
Act Provider Relief Funds) for the full year 2020.
- Net (decrease) increase in cash was approximately $(93.5) million compared to an increase of
$103.8 million in cash for the full
year 2020.
Refinancing and Equity Issuance
In February 2022, we entered into
a new credit agreement for a $500
million term loan maturing in 2028 and executed a new
$50 million revolving credit facility
maturing in 2027. Additionally, we issued $165 million in Series A perpetual preferred
stock accruing a dividend (payable in kind) at 12% per annum,
subject to adjustments in certain circumstances, with approximately
11.5 million detachable warrants to purchase shares of our common
stock. The warrants represent 5.5% of our common stock on a
fully-diluted basis. Proceeds from the transaction were used
to pay off the previously outstanding term loan of $555 million due in 2023, pay fees on the
transaction, and add approximately $77
million to our balance sheet providing capital to support
operations and accelerate growth. See our Form 8-K filed on
February 25, 2022 for additional
information.
2022 Guidance
For the full year 2022, ATI expects net operating revenue to be
in a range of $675 million to
$705 million, which represents
approximately 7.5% to 12.3% year over year growth. We
anticipate continuing to ramp visits steadily throughout 2022 as we
continue to grow clinical headcount and execute on the sales and
marketing strategy put in place at the end of 2021. We expect
Adjusted EBITDA1 will ramp throughout 2022 as
revenue ramps, however, we expect a higher expense ratio early in
2022 as we have made the decision to hire clinicians in advance of
volume improvements anticipated from our sales and marketing
strategy. Adjusted EBITDA for 2022 is expected to be in a
range of $25 million to $35 million.
As we reignite prior referral relationships and set the
groundwork to build long-term connections with new target referral
providers, we expect to return to pre-COVID visit volumes by the
end of 2022.
While we continue to ramp our existing clinics, we are also
seeing incremental growth opportunities in select markets and
accordingly expect to open approximately 35 new clinics in
2022.
Fourth Quarter and Year End 2021 Earnings Conference
Call
Management will host a conference call at 8:00 a.m. Eastern Time on February 25, 2022 to review fourth quarter and
full year 2021 financial results. The conference call can be
accessed via a live audio webcast. To join, please access the
following web link, Q4 2021 Year-End Earnings Conference Call, on
the Company's Investor Relations website at
https://investors.atipt.com at least 15 minutes early to
register, and download and install any necessary audio software. A
replay of the call will be available via webcast for on-demand
listening shortly after the completion of the call, at the same web
link, and will remain available for approximately 90 days.
About ATI Physical Therapy
At ATI Physical Therapy, we are passionate about potential.
Every day, we restore it in our patients and activate it in our
team members in our more than 900 locations in 25 states. With
outcomes from more than 2.5 million unique patient cases, ATI is
making strides in the industry by setting quality standards that
deliver predictable outcomes for our patients with musculoskeletal
(MSK) issues. ATI's offerings span across a broad spectrum for
MSK-related issues. From preventative services in the workplace and
athletic training support to outpatient clinical services and
online physical therapy via our online platform, CONNECTâ„¢, a
complete list of our service offerings can be found
at ATIpt.com. ATI is based in Bolingbrook, Illinois.
1 Refer to "Non-GAAP Financial Measures" below.
Forward-Looking Statements
All statements other than statements of historical facts
contained in this communication are forward-looking statements for
purposes of the safe harbor provisions under the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may generally be identified by the use of words such as
"believe," "may," "will," "estimate," "continue," "anticipate,"
"intend," "expect," "should," "would," "plan," "project,"
"forecast," "predict," "potential," "seem," "seek," "future,"
"outlook," "target" or other similar expressions (or the negative
versions of such words or expressions) that predict or indicate
future events or trends or that are not statements of historical
matters. These forward-looking statements include, but are not
limited to, statements regarding 2022 forecast and other estimates
of financial and performance metrics and market opportunity. These
statements are based on various assumptions, whether or not
identified in this communication, and on the current expectations
of ATI's management and are not predictions of actual performance.
These forward-looking statements are estimates only and are not
intended to serve as, and must not be relied on by any investor as,
a guarantee, an assurance or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and may differ from assumptions, and such
differences may be material. Many actual events and circumstances
are beyond the control of ATI. These forward-looking statements are
subject to a number of risks and uncertainties, including, but not
limited to:
(i)
|
changes in domestic
business, market, financial, political and legal conditions,
including shifts and trends in payor mix;
|
(ii)
|
the ability to
execute on our sales and marketing strategies;
|
(iii)
|
the ability to
maintain the listing of the Company's securities on
NYSE;
|
(iv)
|
the ability of the
Company to realize the anticipated benefits of the business
combination;
|
(v)
|
risks related to the
rollout of ATI's business strategy, including but not limited to
ramping of visits, growing clinical headcount, and opening new
clinics, and the timing of expected business milestones;
|
(vi)
|
the effects of
competition on ATI's future business and the ability of ATI to grow
and manage growth profitably, maintain relationships with customers
and suppliers and retain its management and key
employees;
|
(vii)
|
the ability of the
Company to retain and to hire physical therapists consistent with
its business plan;
|
(viii)
|
the ability of the
Company to develop new and retain and expand relationships with
referral sources;
|
(ix)
|
the outcome of any
legal proceedings or regulatory investigations that have or may be
instituted against the Company or any of its directors or
officers;
|
(x)
|
the ability of the
company to comply with its covenants in its credit facility and
preferred stock financing arrangements or to redeem preferred
stock;
|
(xi)
|
the ability of the
Company to issue equity or equity-linked securities or obtain debt
financing in the future;
|
(xii)
|
risks related to
political and macroeconomic uncertainty;
|
(xiii)
|
the impact of the
global COVID-19 pandemic (and existing or emerging variants) on any
of the foregoing risks;
|
(xiv)
|
risks related to the
impact on our workforce of mandatory COVID-19 vaccination of
employees; and
|
those factors discussed in our amended S-1 registration
statement filed with the SEC on July 28,
2021 under the heading "Risk Factors," and our Form 10-K for
the fiscal year ended December 31,
2021 and other documents filed, or to be filed, by ATI with
the SEC.
If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements, including our forecast
update. There may be additional risks that ATI does not presently
know or that ATI currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements. In addition, the forward-looking
statements in this communication reflect ATI's expectations, plans
or forecasts of future events and views as of the date of this
communication. ATI anticipates that subsequent events and
developments will cause ATI's assessments with respect to these
forward-looking statements to change. However, while ATI may elect
to update these forward-looking statements at some point in the
future, ATI specifically disclaims any obligation to publicly
update any forward-looking statement, whether written or oral,
which may be made from time to time, whether as a result of new
information, future developments or otherwise, unless required by
applicable law. These forward-looking statements should not be
relied upon as representing ATI's assessments as of any date
subsequent to the date of this press release. Accordingly, undue
reliance should not be placed upon the forward-looking
statements.
Non-GAAP Financial Measures
To supplement the Company's financial information presented in
accordance with GAAP and aid understanding of the Company's
business performance, the Company uses certain non-GAAP financial
measures, namely "Adjusted EBITDA" and "Adjusted EBITDA margin." We
believe Adjusted EBITDA and Adjusted EBITDA margin (i.e. Adjusted
EBITDA divided by Net Operating Revenue) assist investors and
analysts in comparing our operating performance across reporting
periods on a consistent basis by excluding items that we do not
believe are indicative of our core operating performance.
Management believes these non-GAAP financial measures are useful
to investors in highlighting trends in our operating performance,
while other measures can differ significantly depending on
long-term strategic decisions regarding capital structure, the tax
jurisdictions in which we operate and capital investments.
Management uses these non-GAAP financial measures to supplement
GAAP measures of performance in the evaluation of the effectiveness
of our business strategies, to make budgeting decisions, to
establish discretionary annual incentive compensation and to
compare our performance against that of other peer companies using
similar measures. Management supplements GAAP results with non-GAAP
financial measures to provide a more complete understanding of the
factors and trends affecting the business than GAAP results
alone.
Adjusted EBITDA and Adjusted EBITDA margin are not recognized
terms under GAAP and should not be considered as an alternative to
net income (loss) or the ratio of net income (loss) to net revenue
as a measure of financial performance, cash flows provided by
operating activities as a measure of liquidity, or any other
performance measure derived in accordance with GAAP. Additionally,
these measures are not intended to be a measure of cash available
for management's discretionary use as they do not consider certain
cash requirements such as interest payments, tax payments and debt
service requirements. The presentations of these measures have
limitations as analytical tools and should not be considered in
isolation, or as a substitute for analysis of our results as
reported under GAAP. Because not all companies use identical
calculations, the presentations of these measures may not be
comparable to other similarly titled measures of other companies
and can differ significantly from company to company.
Please see "Reconciliation of GAAP to Non-GAAP Financial
Measures" below for reconciliations of non-GAAP financial measures
used in this release to their most directly comparable GAAP
financial measures. We are unable to provide a reconciliation
between forward-looking Adjusted EBITDA to its comparable GAAP
financial measure without unreasonable effort, due to the
high difficulty and impracticability of predicting certain amounts
required by GAAP with a reasonable degree of accuracy by the date
of this release.
Contact:
Joanne Fong
SVP, Treasurer and Investor Relations
(630) 296-2222 x 7131
investors@atipt.com
ATI Physical
Therapy
|
Condensed
Consolidated Statements of Operations
|
($ in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
|
|
|
|
Net patient
revenue
|
$
|
140,275
|
|
|
$
|
136,840
|
|
|
$
|
561,080
|
|
|
$
529,585
|
|
|
Other
revenue
|
15,488
|
|
|
16,266
|
|
|
66,791
|
|
|
62,668
|
|
|
Net operating
revenue
|
155,763
|
|
|
153,106
|
|
|
627,871
|
|
|
592,253
|
|
|
|
|
|
|
|
|
|
|
|
Clinic operating
costs:
|
|
|
|
Salaries and related
costs
|
88,087
|
|
|
79,117
|
|
|
336,496
|
|
|
306,471
|
|
|
|
Rent, clinic supplies,
contract labor and other
|
47,792
|
|
|
42,824
|
|
|
180,932
|
|
|
166,144
|
|
|
Provision for doubtful
accounts
|
2,099
|
|
|
3,332
|
|
|
16,369
|
|
|
16,231
|
|
|
Total clinic operating
costs
|
137,978
|
|
|
125,273
|
|
|
533,797
|
|
|
488,846
|
|
|
Selling, general and
administrative expenses
|
29,897
|
|
|
30,032
|
|
|
111,809
|
|
|
104,320
|
|
|
Goodwill and
intangible asset impairment charges
|
—
|
|
|
—
|
|
|
962,303
|
|
|
—
|
|
|
Operating
loss
|
(12,112)
|
|
|
(2,199)
|
|
|
(980,038)
|
|
|
(913)
|
|
|
Change in fair value
of warrant liability
|
(2,171)
|
|
|
—
|
|
|
(22,595)
|
|
|
—
|
|
|
Change in fair value
of contingent common shares liability
|
(7,875)
|
|
|
—
|
|
|
(175,140)
|
|
|
—
|
|
|
Loss on settlement of
redeemable preferred stock
|
—
|
|
|
—
|
|
|
14,037
|
|
|
—
|
|
|
Interest expense,
net
|
7,215
|
|
|
16,404
|
|
|
46,320
|
|
|
69,291
|
|
|
Interest expense on
redeemable preferred stock
|
—
|
|
|
5,154
|
|
|
10,087
|
|
|
19,031
|
|
|
Other (income)
expense, net
|
(5,590)
|
|
|
(23,914)
|
|
|
241
|
|
|
(91,002)
|
|
|
(Loss) income before
taxes
|
(3,691)
|
|
|
157
|
|
|
(852,988)
|
|
|
1,767
|
|
|
Income tax (benefit)
expense
|
(12,427)
|
|
|
(2,033)
|
|
|
(70,960)
|
|
|
2,065
|
|
|
Net income
(loss)
|
8,736
|
|
|
2,190
|
|
|
(782,028)
|
|
|
(298)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATI Physical
Therapy
|
Condensed
Consolidated Balance Sheets
|
($ in
thousands)
|
(unaudited)
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Assets:
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
48,616
|
|
$
142,128
|
Accounts receivable
(net of allowance for doubtful accounts of $53,533 and
$69,693 at December 31, 2021 and December 31, 2020,
respectively)
|
82,455
|
|
90,707
|
Prepaid
expenses
|
9,303
|
|
3,859
|
Other current
assets
|
3,204
|
|
2,168
|
Total current
assets
|
143,578
|
|
238,862
|
|
|
|
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
139,730
|
|
137,174
|
Operating lease
right-of-use assets
|
256,646
|
|
258,227
|
Goodwill,
net
|
608,811
|
|
1,330,085
|
Trade name and other
intangible assets, net
|
411,696
|
|
644,339
|
Other non-current
assets
|
2,233
|
|
1,685
|
Total assets
|
$
1,562,694
|
|
$
2,610,372
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
15,146
|
|
$
12,148
|
Accrued expenses and
other liabilities
|
64,584
|
|
70,690
|
Current portion of
operating lease liabilities
|
49,433
|
|
52,395
|
Current portion of
long-term debt
|
8,167
|
|
8,167
|
Total current
liabilities
|
137,330
|
|
143,400
|
|
|
|
|
Long-term debt,
net
|
543,799
|
|
991,418
|
Redeemable preferred
stock
|
—
|
|
163,329
|
Warrant
liability
|
4,341
|
|
—
|
Contingent common
shares liability
|
45,360
|
|
—
|
Deferred income tax
liabilities
|
67,459
|
|
138,547
|
Operating lease
liabilities
|
250,597
|
|
253,990
|
Other non-current
liabilities
|
2,301
|
|
18,571
|
Total
liabilities
|
1,051,187
|
|
1,709,255
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.0001 par value; 1.0 million shares authorized; none issued
and outstanding at December 31, 2021 and December 31,
2020
|
—
|
|
—
|
Class A common stock,
$0.0001 par value; 470.0 million shares authorized;
207.4 million shares issued, 197.4 million shares outstanding at
December 31,
2021; 138.9 million shares issued, 128.3 million shares outstanding
at
December 31, 2020
|
20
|
|
13
|
Treasury stock, at
cost, 0.03 million shares and none at December 31, 2021 and
2020, respectively
|
(95)
|
|
—
|
Additional paid-in
capital
|
1,351,597
|
|
954,728
|
Accumulated other
comprehensive income (loss)
|
28
|
|
(1,907)
|
Accumulated
deficit
|
(847,132)
|
|
(68,804)
|
Total ATI Physical
Therapy, Inc. equity
|
504,418
|
|
884,030
|
Non-controlling
interests
|
7,089
|
|
17,087
|
Total stockholders'
equity
|
511,507
|
|
901,117
|
Total liabilities and
stockholders' equity
|
$
1,562,694
|
|
$
2,610,372
|
ATI Physical
Therapy
|
Condensed
Consolidated Statements of Cash Flows
|
($ in
thousands)
|
(unaudited)
|
|
|
Year
Ended
|
|
December 31,
2021
|
|
December 31,
2020
|
Operating
activities:
|
|
|
|
Net loss
|
$
(782,028)
|
|
$
(298)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Goodwill and
intangible asset impairment charges
|
962,303
|
|
—
|
Depreciation and
amortization
|
37,995
|
|
39,700
|
Provision for doubtful
accounts
|
16,369
|
|
16,231
|
Deferred income tax
provision
|
(71,088)
|
|
1,814
|
Amortization of
right-of-use assets
|
45,536
|
|
44,526
|
Share-based
compensation
|
5,754
|
|
1,936
|
Amortization of debt
issuance costs and original issue discount
|
3,252
|
|
4,109
|
Non-cash interest
expense
|
—
|
|
6,335
|
Non-cash interest
expense on redeemable preferred stock
|
10,087
|
|
19,031
|
Loss on extinguishment
of debt
|
5,534
|
|
—
|
Loss on settlement of
redeemable preferred stock
|
14,037
|
|
—
|
(Gain) loss on
disposal and impairment of assets
|
(5,189)
|
|
469
|
Loss on lease
terminations and impairment
|
—
|
|
3,863
|
Change in fair value
of warrant liability
|
(22,595)
|
|
—
|
Change in fair value
of contingent common shares liability
|
(175,140)
|
|
—
|
Changes in:
|
|
|
|
Accounts receivable,
net
|
(10,201)
|
|
(3,307)
|
Prepaid expenses and
other current assets
|
(6,688)
|
|
4,841
|
Other non-current
assets
|
(284)
|
|
413
|
Accounts
payable
|
1,831
|
|
798
|
Accrued expenses and
other liabilities
|
(5,288)
|
|
9,174
|
Operating lease
liabilities
|
(50,942)
|
|
(42,819)
|
Other non-current
liabilities
|
861
|
|
5,056
|
Medicare Accelerated
and Advance Payment Program Funds
|
(12,605)
|
|
26,732
|
Transaction-related
amount due to former owners
|
(3,611)
|
|
—
|
Net cash (used in)
provided by operating activities
|
(42,100)
|
|
138,604
|
|
|
|
|
Investing
activities:
|
|
|
|
Purchases of property
and equipment
|
(40,293)
|
|
(21,887)
|
Purchases of intangible
assets
|
(1,675)
|
|
(250)
|
Proceeds from sale of
property and equipment
|
223
|
|
328
|
Proceeds from sale of
clinics
|
248
|
|
—
|
Proceeds from sale of
Home Health service line
|
6,131
|
|
—
|
Business acquisitions,
net of cash acquired
|
(4,523)
|
|
—
|
Net cash used in
investing activities
|
(39,889)
|
|
(21,809)
|
|
|
|
|
Financing
activities:
|
|
|
|
Deferred financing
costs
|
—
|
|
(350)
|
Principal payments on
long-term debt
|
(456,202)
|
|
(8,167)
|
Proceeds from revolving
line of credit
|
—
|
|
68,750
|
Payments on revolving
line of credit
|
—
|
|
(68,750)
|
Cash inflow from
Business Combination
|
229,338
|
|
—
|
Payments to Series A
Preferred stockholders
|
(59,000)
|
|
—
|
Proceeds from shares
issued through PIPE investment
|
300,000
|
|
—
|
Payments for equity
issuance costs
|
(19,233)
|
|
—
|
Taxes paid on behalf of
employees for shares withheld
|
(128)
|
|
—
|
Distribution to
non-controlling interest holder
|
(6,298)
|
|
(4,453)
|
Net cash used in
financing activities
|
(11,523)
|
|
(12,970)
|
|
|
|
|
Changes in cash and
cash equivalents:
|
|
|
|
Net (decrease) increase
in cash and cash equivalents
|
(93,512)
|
|
103,825
|
Cash and cash
equivalents at beginning of period
|
142,128
|
|
38,303
|
Cash and cash
equivalents at end of period
|
$
48,616
|
|
$
142,128
|
|
|
|
|
Supplemental noncash
disclosures:
|
|
|
|
Derivative changes in
fair value
|
$
(1,935)
|
|
$
582
|
Purchases of property
and equipment in accounts payable
|
$
4,177
|
|
$
3,010
|
Warrant liability
recognized upon the closing of the Business Combination
|
$
(26,936)
|
|
$
—
|
Contingent common
shares liability recognized upon the closing of the Business
Combination
|
$
(220,500)
|
|
$
—
|
Shares issued to Wilco
Holdco Series A Preferred stockholders
|
$
128,453
|
|
$
—
|
|
|
|
|
Other supplemental
disclosures:
|
|
|
|
Cash paid for
interest
|
$
41,937
|
|
$
58,421
|
Cash paid for (received
from) taxes
|
$
81
|
|
$
(1,098)
|
ATI Physical
Therapy
|
Supplemental
Tables of Key Performance Metrics
|
|
|
|
Financial Metrics
($ in 000's)
|
|
|
Net Patient
Revenue
|
Other
Revenue
|
Net Operating
Revenue
|
Adjusted
EBITDA(1)
|
Adj EBITDA
margin(1)
|
Q1 2019
|
|
$170,940
|
$16,277
|
$187,217
|
$25,989
|
13.9%
|
Q2 2019
|
|
$182,757
|
$16,015
|
$198,772
|
$33,342
|
16.8%
|
Q3 2019
|
|
$179,561
|
$16,624
|
$196,185
|
$29,455
|
15.0%
|
Q4 2019
|
|
$184,338
|
$18,946
|
$203,284
|
$39,606
|
19.5%
|
Q1 2020
|
|
$164,939
|
$17,799
|
$182,738
|
$26,487
|
14.5%
|
Q2 2020
|
|
$95,003
|
$12,751
|
$107,754
|
$1,189
|
1.1%
|
Q3 2020
|
|
$132,803
|
$15,852
|
$148,655
|
$17,321
|
11.7%
|
Q4 2020
|
|
$136,840
|
$16,266
|
$153,106
|
$18,622
|
12.2%
|
Q1 2021
|
|
$132,271
|
$16,791
|
$149,062
|
$5,590
|
3.8%
|
Q2 2021
|
|
$146,679
|
$17,354
|
$164,033
|
$23,999
|
14.6%
|
Q3 2021
|
|
$141,855
|
$17,158
|
$159,013
|
$8,539
|
5.4%
|
Q4 2021
|
|
$140,275
|
$15,488
|
$155,763
|
$1,643
|
1.1%
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes CARES
Act Provider Relief Funds of $44.3 million in the second
quarter of 2020, $23.1 million in the third quarter of 2020, and
$24.1 million in the fourth quarter of 2020.
|
|
|
|
Operational
Metrics: PT Clinics
|
|
|
|
Ending
Clinic
Count
|
Visits
per
Day(1)
|
Clinical
FTE(2)
|
VPD
per
cFTE(3)
|
Annualized
Clinician
Adds
%(4)
|
Annualized
Clinician
Turnover %(5)
|
Q1 2019
|
|
|
825
|
24,142
|
2,833
|
8.5
|
20%
|
19%
|
Q2 2019
|
|
|
836
|
25,527
|
2,862
|
8.9
|
26%
|
21%
|
Q3 2019
|
|
|
847
|
25,229
|
2,901
|
8.7
|
37%
|
26%
|
Q4 2019
|
|
|
872
|
25,693
|
2,936
|
8.8
|
17%
|
26%
|
Q1 2020
|
|
|
868
|
22,855
|
2,841
|
8.0
|
17%
|
22%
|
Q2 2020
|
|
|
866
|
12,643
|
1,487
|
8.5
|
0%
|
20%
|
Q3 2020
|
|
|
873
|
18,159
|
2,004
|
9.1
|
9%
|
82%
|
Q4 2020
|
|
|
875
|
19,441
|
2,214
|
8.8
|
43%
|
34%
|
Q1 2021
|
|
|
882
|
19,520
|
2,284
|
8.5
|
44%
|
32%
|
Q2 2021
|
|
|
889
|
21,569
|
2,325
|
9.3
|
44%
|
44%
|
Q3 2021
|
|
|
900
|
20,674
|
2,359
|
8.8
|
63%
|
41%
|
Q4 2021
|
|
|
910
|
20,649
|
2,490
|
8.3
|
44%
|
37%
|
|
|
(1)
|
Equals patient visits
divided by operating days.
|
(2)
|
Represents clinical
staff hours divided by 8 hours divided by number of paid
days.
|
(3)
|
Equals patient visits
divided by operating days divided by clinical full-time equivalent
employees.
|
(4)
|
Represents clinician
headcount new hire adds divided by average clinician headcount,
multiplied by 4 to annualize.
|
(5)
|
Represents clinician
headcount separations divided by average clinician headcount,
multiplied by 4 to annualize.
|
|
Unit Economics: PT
Clinics ($ actual)
|
|
PT Revenue
per
Clinic(1)
|
VPD
per
Clinic(2)
|
PT Rate
per
Visit(3)
|
PT
Salaries
per
Visit(4)
|
PT Rent
and Other
per
Clinic(5)
|
PT
Provision
as % PT
Revenue(6)
|
Q1 2019
|
$208,803
|
29.5
|
$112.39
|
$57.21
|
$48,682
|
4.3%
|
Q2 2019
|
$219,748
|
30.7
|
$111.87
|
$55.21
|
$48,130
|
3.2%
|
Q3 2019
|
$213,255
|
30.0
|
$111.21
|
$56.47
|
$48,995
|
2.8%
|
Q4 2019
|
$213,767
|
29.8
|
$112.10
|
$54.65
|
$47,843
|
2.1%
|
Q1 2020
|
$189,658
|
26.3
|
$112.76
|
$55.11
|
$50,258
|
3.6%
|
Q2 2020
|
$109,872
|
14.6
|
$117.41
|
$53.39
|
$43,621
|
4.1%
|
Q3 2020
|
$152,472
|
20.8
|
$112.51
|
$53.83
|
$44,140
|
2.2%
|
Q4 2020
|
$155,913
|
22.2
|
$109.98
|
$52.16
|
$47,168
|
2.4%
|
Q1 2021
|
$150,536
|
22.2
|
$107.56
|
$54.14
|
$47,722
|
5.4%
|
Q2 2021
|
$165,241
|
24.3
|
$106.26
|
$48.22
|
$47,857
|
2.4%
|
Q3 2021
|
$158,556
|
23.1
|
$105.56
|
$53.70
|
$49,499
|
2.5%
|
Q4 2021
|
$154,772
|
22.8
|
$104.51
|
$55.73
|
$50,976
|
1.5%
|
|
|
(1)
|
Equals Net Patient
Revenue divided by average clinics over the quarter.
|
(2)
|
Equals patient visits
divided by operating days divided by average clinics over the
quarter
|
(3)
|
Equals Net Patient
Revenue divided by patient visits.
|
(4)
|
Equals estimated
patient-related portion of Salaries and Related Costs divided by
patient visits.
|
(5)
|
Equals estimated
patient-related portion of Rent, Clinic Supplies, Contract Labor
and Other divided by average clinics over the quarter.
|
(6)
|
Equals estimated
patient-related portion of Provision for Doubtful Accounts divided
by Net Patient Revenue.
|
|
|
|
|
|
|
|
Customer
Satisfaction Metrics
|
|
|
|
|
|
|
|
Net Promoter
Score(1)
|
Google Star
Rating(2)
|
|
Q1 2019
|
|
|
|
|
|
|
77
|
4.6
|
|
Q2 2019
|
|
|
|
|
|
|
79
|
4.9
|
|
Q3 2019
|
|
|
|
|
|
|
78
|
4.9
|
|
Q4 2019
|
|
|
|
|
|
|
79
|
4.8
|
|
Q1 2020
|
|
|
|
|
|
|
77
|
4.9
|
|
Q2 2020
|
|
|
|
|
|
|
77
|
4.9
|
|
Q3 2020
|
|
|
|
|
|
|
78
|
4.6
|
|
Q4 2020
|
|
|
|
|
|
|
76
|
4.7
|
|
Q1 2021
|
|
|
|
|
|
|
75
|
4.9
|
|
Q2 2021
|
|
|
|
|
|
|
77
|
4.9
|
|
Q3 2021
|
|
|
|
|
|
|
73
|
4.9
|
|
Q4 2021
|
|
|
|
|
|
|
78
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
NPS measures customer
experience from ATI patient survey responses. The score is
calculated as the percentage of promoters less the percentage of
detractors.
|
(2)
|
A Google Star rating
is a five-star rating scale that ranks businesses based on
customer reviews. Customers are given the opportunity to leave a
business review after interacting with a business, which involves
choosing from one star (poor) to five stars (excellent).
|
ATI Physical
Therapy
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
($ in
thousands)
|
(unaudited)
|
|
|
Year
Ended
|
|
December 31,
2021
|
|
December 31,
2020
|
Net (loss)
income
|
$
(782,028)
|
|
$
(298)
|
Plus
(minus):
|
|
|
|
Net loss (income)
attributable to non-controlling interest
|
3,700
|
|
(5,073)
|
Interest expense,
net
|
46,320
|
|
69,291
|
Interest expense on
redeemable preferred stock
|
10,087
|
|
19,031
|
Income tax (benefit)
expense
|
(70,960)
|
|
2,065
|
Depreciation and
amortization expense
|
37,995
|
|
39,700
|
EBITDA
|
$
(754,886)
|
|
$
124,716
|
Goodwill and
intangible asset impairment charges(1)
|
962,303
|
|
—
|
Goodwill and
intangible asset impairment charges attributable to
non-controlling interest(1)
|
(7,949)
|
|
—
|
Changes in fair value
of warrant liability and contingent common
shares liability(2)
|
(197,735)
|
|
—
|
Loss on settlement of
redeemable preferred stock(3)
|
14,037
|
|
—
|
Transaction and
integration costs(4)
|
9,788
|
|
4,790
|
Gain on sale of Home
Health service line, net
|
(5,846)
|
|
—
|
Share-based
compensation
|
5,769
|
|
1,936
|
Loss on debt
extinguishment(5)
|
5,534
|
|
—
|
Reorganization and
severance costs(6)
|
3,913
|
|
7,512
|
Non-ordinary legal and
regulatory matters(7)
|
2,914
|
|
—
|
Pre-opening de novo
costs(8)
|
1,929
|
|
1,565
|
Business optimization
costs(9)
|
—
|
|
10,377
|
Charges related to
lease terminations(10)
|
—
|
|
4,253
|
Adjusted
EBITDA
|
$
39,771
|
|
$
155,149
|
|
|
(1)
|
Represents non-cash
charges related to the write-down of goodwill and trade name
indefinite-lived intangible assets.
|
(2)
|
Represents non-cash
amounts related to the change in the estimated fair value of
Warrants, Earnout Shares and Vesting Shares.
|
(3)
|
Represents loss on
settlement of redeemable preferred stock based on the value of cash
and equity provided to preferred stockholders in relation to the
outstanding redeemable preferred stock liability at the time of the
closing of the Business Combination with FVAC II.
|
(4)
|
Represents costs
related to the Business Combination with FVAC II, non-capitalizable
debt transaction costs, clinic acquisitions and acquisition-related
integration and consulting and planning costs related to
preparation to operate as a public company.
|
(5)
|
Represents charges
related to the derecognition of the proportionate amount of
remaining unamortized deferred financing costs and original
issuance discount associated with the partial repayment of the
first lien term loan and derecognition of the unamortized original
issuance discount associated with the full repayment of the
subordinated second lien term loan.
|
(6)
|
Represents severance,
consulting and other costs related to discrete initiatives focused
on reorganization and delayering of the Company's labor model,
management structure and support functions.
|
(7)
|
Represents
non-ordinary course legal costs related to the previously-disclosed
ATIP shareholder class action complaints, derivative complaint and
SEC inquiry.
|
(8)
|
Represents expenses
associated with renovation, equipment and marketing costs relating
to the start-up and launch of new locations incurred prior to
opening.
|
(9)
|
Represents
non-recurring costs to optimize our platform and ATI transformative
initiatives. Costs primarily relate to duplicate costs driven by IT
and Revenue Cycle Management conversions, labor related costs
during the transition of key positions and other incremental costs
of driving optimization initiatives.
|
(10)
|
Represents charges
related to lease terminations prior to the end of term for
corporate facilities no longer in use.
|
ATI Physical
Therapy
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
($ in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
|
2021
|
2021
|
2021
|
2021
|
Net income
(loss)
|
$8,736
|
($333,820)
|
($439,126)
|
($17,818)
|
Plus
(minus):
|
|
|
|
|
Net (income) loss
attributable to non-controlling interests
|
(869)
|
2,109
|
3,769
|
(1,309)
|
Interest expense,
net
|
7,215
|
7,386
|
15,632
|
16,087
|
Interest expense on
redeemable preferred stock
|
—
|
—
|
4,779
|
5,308
|
Income tax (benefit)
expense
|
(12,427)
|
(28,287)
|
(19,731)
|
(10,515)
|
Depreciation and
amortization expense
|
10,005
|
9,222
|
9,149
|
9,619
|
EBITDA
|
12,660
|
(343,390)
|
(425,528)
|
1,372
|
Goodwill and
intangible asset impairment charges(1)
|
—
|
508,972
|
453,331
|
—
|
Goodwill and
intangible asset impairment charges
attributable to non-controlling interest(1)
|
—
|
(2,928)
|
(5,021)
|
—
|
Changes in fair value
of warrant liability and contingent
common shares liability(2)
|
(10,046)
|
(162,202)
|
(25,487)
|
—
|
Gain on sale of Home
Health service line, net
|
(5,846)
|
—
|
—
|
—
|
Reorganization and
severance costs(3)
|
—
|
3,551
|
—
|
362
|
Transaction and
integration costs(4)
|
955
|
2,335
|
3,580
|
2,918
|
Share-based
compensation
|
905
|
1,248
|
3,112
|
504
|
Pre-opening de novo
costs(5)
|
543
|
511
|
441
|
434
|
Non-ordinary legal and
regulatory matters(6)
|
2,472
|
442
|
—
|
—
|
Loss on debt
extinguishment(7)
|
—
|
—
|
5,534
|
—
|
Loss on settlement of
redeemable preferred stock(8)
|
—
|
—
|
14,037
|
—
|
Adjusted
EBITDA
|
$1,643
|
$8,539
|
$23,999
|
$5,590
|
|
|
|
|
|
|
|
|
(1)
|
Represents non-cash
charges related to the write-down of goodwill and trade name
indefinite-lived intangible assets.
|
(2)
|
Represents non-cash
amounts related to the change in the estimated fair value of
Warrants, Earnout Shares and Vesting Shares.
|
(3)
|
Represents severance,
consulting and other costs related to discrete initiatives focused
on reorganization and delayering of the Company's labor model,
management structure and support functions.
|
(4)
|
Represents costs
related to the Company's business combination with FVAC II,
non-capitalizable debt transaction costs, clinic acquisitions and
acquisition-related integration and consulting and planning costs
related to preparation to operate as a public company.
|
(5)
|
Represents expenses
associated with renovation, equipment and marketing costs relating
to the start-up and launch of new locations incurred prior to
opening.
|
(6)
|
Represents
non-ordinary course legal costs related to the previously-disclosed
ATIP shareholder class action complaints, derivative complaint and
SEC inquiry.
|
(7)
|
Represents charges
related to the derecognition of the proportionate amount of
remaining unamortized deferred financing costs and original
issuance discount associated with the partial repayment of the
first lien term loan and derecognition of the unamortized original
issuance discount associated with the full repayment of the
subordinated second lien term loan.
|
(8)
|
Represents loss on
settlement of redeemable preferred stock based on the value of cash
and equity provided to preferred stockholders in relation to the
outstanding redeemable preferred stock liability at the time of the
closing of the business combination with FVAC II.
|
ATI Physical
Therapy
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
($ in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
|
2020
|
2020
|
2020
|
2020
|
Net income
(loss)
|
$2,190
|
$1,022
|
$4,596
|
($8,106)
|
Plus
(minus):
|
|
|
|
|
Net income
attributable to non-controlling interests
|
(987)
|
(901)
|
(1,855)
|
(1,330)
|
Interest expense,
net
|
16,404
|
17,346
|
17,683
|
17,858
|
Interest expense on
redeemable preferred stock
|
5,154
|
4,896
|
4,604
|
4,377
|
Income tax (benefit)
expense
|
(2,033)
|
2,322
|
3,568
|
(1,792)
|
Depreciation and
amortization expense
|
10,072
|
9,880
|
9,763
|
9,985
|
EBITDA
|
30,800
|
34,565
|
38,359
|
20,992
|
Reorganization and
severance costs(1)
|
679
|
4,436
|
1,255
|
1,142
|
Transaction and
integration costs(2)
|
3,747
|
75
|
100
|
868
|
Share-based
compensation
|
503
|
473
|
466
|
494
|
Pre-opening de novo
costs(3)
|
335
|
368
|
268
|
594
|
Business optimization
costs(4)
|
2,450
|
519
|
5,011
|
2,397
|
Charges related to
lease terminations(5)
|
4,253
|
—
|
—
|
—
|
Adjusted
EBITDA
|
$42,767
|
$40,436
|
$45,459
|
$26,487
|
|
|
|
|
|
|
|
|
(1)
|
Represents severance,
consulting and other costs related to discrete initiatives focused
on reorganization and delayering of the Company's labor model,
management structure and support functions.
|
(2)
|
Represents costs
related to the Company's business combination with FVAC II, clinic
acquisitions and acquisition-related integration and consulting and
planning costs related to preparation to operate as a public
company.
|
(3)
|
Represents expenses
associated with renovation, equipment and marketing costs relating
to the start-up and launch of new locations incurred prior to
opening.
|
(4)
|
Represents
non-recurring costs to optimize our platform and ATI transformative
initiatives. Costs primarily relate to duplicate costs driven by IT
and Revenue Cycle Management conversions, labor related costs
during the transition of key positions and other incremental costs
of driving optimization initiatives.
|
(5)
|
Represents charges
related to lease terminations prior to the end of term for
corporate facilities no longer in use.
|
ATI Physical
Therapy
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
($ in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
|
2019
|
2019
|
2019
|
2019
|
Net income
(loss)
|
$31,914
|
($6,046)
|
($4,816)
|
($11,303)
|
Plus
(minus):
|
|
|
|
|
Net income
attributable to non-controlling interests
|
(1,234)
|
(878)
|
(933)
|
(1,355)
|
Interest expense,
net
|
18,022
|
19,263
|
19,927
|
19,760
|
Interest expense on
redeemable preferred stock
|
4,206
|
4,000
|
3,763
|
3,542
|
Income tax
benefit
|
(36,095)
|
(2,055)
|
(1,825)
|
(4,044)
|
Depreciation and
amortization expense
|
9,884
|
9,567
|
9,635
|
10,018
|
EBITDA
|
26,697
|
23,851
|
25,751
|
16,618
|
Reorganization and
severance costs(1)
|
3,401
|
120
|
775
|
4,035
|
Transaction and
integration costs(2)
|
3,998
|
198
|
310
|
29
|
Share-based
compensation
|
(57)
|
559
|
795
|
525
|
Pre-opening de novo
costs(3)
|
438
|
757
|
487
|
593
|
Business optimization
costs(4)
|
5,129
|
3,970
|
5,224
|
4,189
|
Adjusted
EBITDA
|
$39,606
|
$29,455
|
$33,342
|
$25,989
|
|
|
|
|
|
|
|
|
(1)
|
Represents severance,
consulting and other costs related to discrete initiatives focused
on reorganization and delayering of the Company's labor model,
management structure and support functions.
|
(2)
|
Represents costs
related to the Company's business combination with FVAC II, clinic
acquisitions and acquisition-related integration and consulting and
planning costs related to preparation to operate as a public
company.
|
(3)
|
Represents expenses
associated with renovation, equipment and marketing costs relating
to the start-up and launch of new locations incurred prior to
opening.
|
(4)
|
Represents
non-recurring costs to optimize our platform and ATI transformative
initiatives. Costs primarily relate to duplicate costs driven by IT
and Revenue Cycle Management conversions, labor related costs
during the transition of key positions and other incremental costs
of driving optimization initiatives.
|
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SOURCE ATI Physical Therapy