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ATI Physical Therapy (ATIP)
OTHER OTC:ATIP
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ATI Physical Therapy
(OTC:ATIP)
36Underperform
ATI Physical Therapy (ATIP) vs. S&P 500 (SPY)
Market Cap
$4.63M
Dividend YieldN/A
Average Volume (3M)13.21K
Price to Earnings (P/E)―
Beta (1Y)-3.32
Revenue Growth7.73%
EPS Growth36.23%
CountryUS
Employees6,300
SectorHealthcare
Sector Strength78
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-19.59
Shares Outstanding4,411,499
10 Day Avg. Volume2,239
30 Day Avg. Volume13,207
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.01
Price to Cash Flow (P/CF)-0.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
ATI Physical Therapy Business Overview & Revenue Model
Company DescriptionATI Physical Therapy, Inc. (ATIP) is a leading provider of outpatient physical therapy services in the United States. The company operates clinics across numerous states, offering a wide range of services aimed at improving patients' mobility and quality of life. ATI Physical Therapy focuses on delivering personalized care through its skilled therapists, utilizing evidence-based treatment plans tailored to individual needs.
How the Company Makes MoneyATI Physical Therapy generates revenue primarily through the provision of outpatient physical therapy services. The company earns money from patient visits, with payments received from a mix of private health insurance, government programs such as Medicare and Medicaid, and out-of-pocket payments by patients. Key revenue streams include assessments, treatment sessions, and therapeutic programs. Additionally, ATI Physical Therapy may collaborate with healthcare providers, corporate wellness programs, and sports teams to offer specialized services, contributing to its earnings.
ATI Physical Therapy Financial Statement Overview
Summary
ATI Physical Therapy faces significant financial challenges with negative net income and equity, high leverage, and constrained cash flows. Despite revenue growth, profitability and financial stability are major concerns.Income Statement
The income statement shows a mixed performance. Gross profit margin for TTM (Trailing-Twelve-Months) is approximately 14.40%, which is moderate, but the net profit margin is negative at -7.80%, indicating the company is not currently profitable. Revenue growth for TTM compared to the previous year is around 6.12%, reflecting a positive growth trajectory. However, EBIT and EBITDA margins remain low at 0.85% and 10.58% respectively, showing limited operational efficiency.45
Neutral
Balance Sheet
The balance sheet reveals significant financial leverage, with a negative stockholders' equity of -$166 million, leading to an unavailable debt-to-equity ratio. Return on Equity (ROE) is not calculable due to negative equity. The equity ratio is also negative, indicating liabilities exceed assets. Overall, the financial stability appears weak with high leverage posing a risk.30
Negative
Cash Flow
Cash flow analysis highlights challenges in cash management. Operating cash flow to net income ratio is negative, indicating cash outflows from operations. The free cash flow to net income ratio is also negative, reflecting insufficient free cash flow to cover net losses. Despite a recent increase in financing cash flows, free cash flow growth rate is negative, indicating cash flow constraints.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 741.86M | 699.02M | 635.67M | 627.87M | 592.25M | 785.46M | Gross Profit |
| 106.80M | 96.80M | 75.12M | 110.44M | 119.64M | 200.45M | EBIT |
| 6.28M | -27.52M | -56.80M | -32.01M | 90.09M | 59.04M | EBITDA |
| 78.51M | 34.94M | -407.46M | -713.05M | 174.31M | 97.32M | Net Income Common Stockholders |
| -57.82M | -69.80M | -493.05M | -782.03M | -298.00K | 9.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 38.30M | 36.80M | 83.14M | 48.62M | 142.13M | 38.30M | Total Assets |
| 0.00 | 1.00B | 1.08B | 1.56B | 2.61B | 2.29B | Total Debt |
| 0.00 | 750.18M | 797.70M | 852.00M | 1.31B | 1.14B | Net Debt |
| 38.30M | 713.38M | 714.56M | 803.38M | 1.16B | 1.10B | Total Liabilities |
| 0.00 | 878.74M | 1.03B | 1.05B | 1.71B | 1.38B | Stockholders Equity |
| 904.92M | 119.39M | 43.96M | 504.42M | 884.03M | 888.45M |
| Cash Flow | Free Cash Flow | ||||
| -38.03M | -29.69M | -93.66M | -84.07M | 116.47M | 6.72M | Operating Cash Flow |
| -25.99M | -12.37M | -65.51M | -42.10M | 138.60M | 47.94M | Investing Cash Flow |
| -11.46M | -17.37M | -28.05M | -39.89M | -21.81M | -42.68M | Financing Cash Flow |
| 41.18M | -16.61M | 128.08M | -11.52M | -12.97M | -13.03M |
ATI Physical Therapy Technical Analysis
Negative
1.12
Price Trends
1.14
Negative
1.52
Negative
3.63
Negative
Market Momentum
-0.03
Positive
41.95
Neutral
51.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATIP, the sentiment is Negative. The current price of 1.12 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.14, and below the 200-day MA of 3.63, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 51.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATIP.
ATI Physical Therapy Risk Analysis
ATI Physical Therapy disclosed 62 risk factors in its most recent earnings report. ATI Physical Therapy reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ATI Physical Therapy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $14.69B | 24.95 | 3.87% | 1.73% | -0.57% | 8.25% | |
66 Neutral | $2.09B | 9.77 | 13.35% | 2.70% | -0.63% | -13.10% | |
63 Neutral | $1.10B | 39.32 | 5.75% | 2.57% | 11.00% | 37.38% | |
61 Neutral | $17.99B | 46.12 | 12.99% | ― | 6.05% | 63.78% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
44 Neutral | $38.40M | ― | -25.85% | ― | -14.26% | 84.97% | |
36 Underperform | $4.63M | ― | -61.61% | ― | 7.73% | 36.23% |
* Healthcare Sector Average
Performance Comparison
ATIP
ATI Physical Therapy
1.05
-4.35
-80.56%
FMS
Fresenius Medical Care
25.66
7.30
39.76%
SEM
Select Medical
16.18
0.52
3.32%
USPH
US Physical Therapy
68.78
-34.15
-33.18%
AHT
Ashford Hospitality
6.65
-6.55
-49.62%
PTC
PTC
149.53
-33.42
-18.27%
ATI Physical Therapy Earnings Call Summary
Earnings Call Date: Feb 21, 2025 | % Change Since: -4.27% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
ATI Physical Therapy's Q3 2024 earnings call reflected a balanced performance with notable revenue growth and increased patient volume being offset by challenges such as rising costs and a significant net loss. The company is navigating a difficult labor market with wage inflation pressures but continues to maintain high patient satisfaction ratings.Highlights
Revenue and Adjusted EBITDA Growth
ATI delivered another strong quarter with revenue and adjusted EBITDA growing year-over-year. Revenue reached $190 million, a 7.1% increase from $177 million in the previous year, and adjusted EBITDA increased from $9 million to $12 million.
Increase in Patient Volume and Visits
Patient referrals per day grew more than 5% year-over-year, with clinics seeing over 1,400 more patient visits per day compared to Q3 of last year.
Google Star Rating
ATI maintained a high Google Star rating of 4.9 out of 5, indicating strong patient satisfaction.
Clinician Headcount Growth
Clinician headcount grew by 3% year-over-year, maintaining an annualized clinician attrition rate of 21%, which is in line with the industry.
Lowlights
Increase in Salaries and Related Costs
Salaries and related costs increased by 8.7% year-over-year due to more clinical and support staff, wage inflation, and an additional paid day.
Net Loss
The company reported a net loss of $33 million compared to $15 million in the third quarter of 2023.
Provision for Doubtful Accounts
Provision for doubtful accounts increased to approximately $5 million, which is 2.8% of PT revenue compared to 2.1% last year.
Challenges in Labor Market
The labor market remains challenging with ongoing wage inflation pressures, impacting the cost structure.
Company Guidance
In the third quarter of 2024, ATI Physical Therapy reported strong financial performance, with net revenue reaching $190 million, a 7.1% increase from the previous year, and adjusted EBITDA growing to $12 million, reflecting a 6.4% margin. The company experienced a 5% year-over-year increase in patient referrals per day and saw over 1,400 more patient visits daily compared to the third quarter of 2023. Clinician productivity improved slightly, and the company expanded its clinical workforce, achieving a 3% increase in clinician headcount year-over-year while maintaining an attrition rate of 21%. Key operational metrics included 28.3 visits per day per clinic and a consistent rate per visit of $109.83. The company also closed eight clinics and divested one to refine its geographic footprint. Despite persistent wage inflation pressures, ATI maintained a strong Google Star rating of 4.9 out of 5, indicating high patient satisfaction. Looking ahead to Q4, ATI expects revenue between $182 million and $192 million, with adjusted EBITDA projected to range from $9 million to $14 million.ATI Physical Therapy Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
ATI Physical Therapy Secures $26M Convertible Note Financing
Positive
Mar 4, 2025
On March 3, 2025, ATI Physical Therapy closed a $26 million second lien PIK convertible note financing, maturing in 2028 with an 8% interest rate. This financing aims to strengthen ATI’s financial foundation and support its strategic vision, while significant stockholders hold substantial voting power, potentially facilitating a short-form merger.
Executive/Board Changes
ATI Physical Therapy Appoints Interim CFO Amid Leadership Change
Neutral
Jan 14, 2025
On January 10, 2025, Mr. Joseph Jordan resigned as the Chief Financial Officer of ATI Physical Therapy, Inc. Mr. Scott Rundell, previously the Vice President of Finance since October 2021, has been appointed as the interim CFO effective January 13, 2025. His compensation will remain unchanged with an added eligibility for a monthly bonus for up to four months.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.