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ATI Physical Therapy announces settlement notice

EditorNatashya Angelica
Published 06/21/2024, 04:22 AM
ATIP
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BOLINGBROOK, Ill. - ATI Physical Therapy, Inc. (NYSE: ATIP), a prominent provider of outpatient physical therapy services in the U.S., today issued a settlement notice. The announcement was made via a press release and the details of the settlement have been made available in the investor relations section of ATI's website.

The company, which operates approximately 900 locations across 24 states, is known for offering high-quality care aimed at preventing and treating musculoskeletal pain. ATI Physical Therapy emphasizes standardized clinical guidelines and operating processes across its single-branded platform. The organization cites outcomes from over 3 million unique patient cases to support its commitment to delivering quality care that leads to proven and impactful patient outcomes.

ATI's services range from preventative workplace solutions and athletic training support to traditional outpatient clinical services and virtual care through its online platform, CONNECT™. The company is headquartered in Bolingbrook, Illinois, and continues to focus on making active living achievable for individuals through its various physical therapy and related services.

The settlement notice is part of the company's ongoing efforts to maintain transparency with its investors and the public. While the specifics of the settlement were not disclosed in the press release, the availability of the notice on ATI's website provides interested parties with direct access to the information.

This announcement is based on a press release statement from ATI Physical Therapy, Inc. and is intended to inform stakeholders and the general public about the latest developments within the company. Investors and interested parties are encouraged to visit ATI's website for further details regarding the settlement notice.

In other recent news, ATI Physical Therapy has reported a strong start to 2024, with first-quarter net revenue increasing by 8.7% to $181 million. This growth is linked to a daily increase of approximately 1,100 patient visits and a 4.5% increase in the rate per visit.

Still, the company is grappling with rising costs due to wage inflation and is implementing strategies to manage financial performance and expand access to care. The company's second-quarter revenue is projected to range from $185 million to $195 million, with an adjusted EBITDA of $15 million to $20 million.

Despite facing higher than expected bad debt in Q1, the company's strategic initiatives aim to enhance operational efficiency and expand its market presence, particularly in the workers' comp and API segments. These are among the recent developments for ATI Physical Therapy.

InvestingPro Insights

As ATI Physical Therapy, Inc. (NYSE: ATIP) continues to navigate its operational challenges, recent data from InvestingPro provides a snapshot of the company's financial health. The market capitalization of ATI stands at a modest $21.98 million, reflecting the scale of the company amidst the competitive landscape of outpatient physical therapy services.

The company's revenue growth has shown promise with a 10.31% increase over the last twelve months as of Q1 2024, indicating an expanding reach in its services across the U.S. Despite this growth, ATI operates with a significant debt burden, which has been a persistent issue, as highlighted in one of the InvestingPro Tips. This is further evidenced by the company's negative operating income margin of -3.22% during the same period, underscoring the financial pressures it faces.

InvestingPro Tips also reveal that management has been aggressively buying back shares, a move that could signal confidence in the company's future prospects or an attempt to support the stock price. Still, with a P/E ratio at -0.16, it is clear that profitability remains a concern, as analysts do not anticipate ATI will be profitable this year. Moreover, the company's price has fallen by over 30% in the past three months, which may attract investors looking for potential turnaround candidates.

For investors seeking a deeper analysis, there are additional InvestingPro Tips available that provide insights into ATI's valuation, cash flow, and earnings performance. Discover these valuable tips and more by visiting https://www.investing.com/pro/ATIP, and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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