ATI Physical Therapy Inc (ATIP, Financial) released its Q3 2023 earnings report on November 6, 2023, highlighting continued growth in key performance metrics despite industry challenges. The company reported a 13.2% year-over-year increase in net revenue, which rose to $177.5 million from $156.8 million in Q3 2022. This increase was primarily driven by a higher rate per visit, adept execution by the company's clinicians to ensure patient access, and strong demand for ATI's physical therapy and adjacent services.
Financial Performance Overview
ATIP's net patient revenue increased by 14.0% year-over-year, reaching $162.3 million in Q3 2023 compared to $142.3 million in Q3 2022. The company's visits per day (VPD) also saw a 9.0% year-over-year increase, driven by the company's increased capacity to see patients through a higher number of clinical FTE and higher productivity per clinical FTE.
However, the company reported a net loss of $14.6 million for Q3 2023, a significant decrease from the $116.7 million net loss reported in Q3 2022. Despite this, the company's adjusted EBITDA was $9.4 million, a significant improvement from the $(0.4) million reported in Q3 2022. The increase in adjusted EBITDA was primarily driven by higher revenue from an increase in rate per visit in addition to lower one-time costs and benefits, mostly offset by higher clinic operating expenses.
Operational Highlights and Future Outlook
ATIP's Chief Executive Officer, Sharon Vitti, highlighted the company's ongoing commitment to the ATI culture and front-line teams, which resulted in a 5% quarter-over-quarter increase in clinician headcount. She also noted the company's strategic vision to lead in the musculoskeletal sector while helping people live healthier.
Joe Jordan, Chief Financial Officer of ATI, expressed increased confidence in the top end of the company's guidance range as the year-end approaches, citing the solid progress in financial results generated by the company's people and operational initiatives.
ATIP also reported that it opened three clinics and closed fourteen during the quarter as part of the company's ongoing footprint optimization initiative. The company had 900 clinics at the end of the third quarter.
Despite the challenges faced in the industry, ATI Physical Therapy Inc (ATIP, Financial) continues to demonstrate resilience and growth in its Q3 2023 earnings report. The company's commitment to operational excellence and strategic initiatives has positioned it for continued success in the future.
Explore the complete 8-K earnings release (here) from ATI Physical Therapy Inc for further details.
