2022 Q4 Form 10-Q Financial Statement

#000181584922000018 Filed on November 08, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3
Revenue $161.8M $156.8M
YoY Change 3.85% -1.4%
Cost Of Revenue $139.8M $141.7M
YoY Change 2.87% 6.88%
Gross Profit $21.98M $15.07M
YoY Change 10.55% -42.95%
Gross Profit Margin 13.59% 9.61%
Selling, General & Admin $26.81M $25.26M
YoY Change -10.34% -17.96%
% of Gross Profit 121.95% 167.68%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $10.11M $9.924M
YoY Change 1.08% 9.11%
% of Gross Profit 46.01% 65.87%
Operating Expenses $30.09M $25.26M
YoY Change 0.65% -17.96%
Operating Profit -$8.109M -$119.7M
YoY Change -33.05% -76.85%
Interest Expense -$13.46M -$11.78M
YoY Change 86.6% 59.49%
% of Operating Profit
Other Income/Expense, Net $10.21M -$195.0K
YoY Change -34.73% 275.0%
Pretax Income -$107.4M -$123.9M
YoY Change 2809.92% -65.78%
Income Tax -$4.998M -$7.200M
% Of Pretax Income
Net Earnings -$102.8M -$116.3M
YoY Change -12617.05% -64.17%
Net Earnings / Revenue -63.53% -74.19%
Basic Earnings Per Share -$0.60
Diluted Earnings Per Share -$0.50 -$0.60
COMMON SHARES
Basic Shares Outstanding 207.3M shares 204.3M shares
Diluted Shares Outstanding 204.3M shares

Balance Sheet

Concept 2022 Q4 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $83.14M $48.57M
YoY Change 71.01% -26.51%
Cash & Equivalents $83.10M $48.60M
Short-Term Investments
Other Short-Term Assets $10.04M $13.77M
YoY Change 213.36% 11.76%
Inventory
Prepaid Expenses $13.53M $12.47M
Receivables $80.67M $82.32M
Other Receivables $0.00 $0.00
Total Short-Term Assets $194.1M $157.1M
YoY Change 35.21% -3.84%
LONG-TERM ASSETS
Property, Plant & Equipment $123.7M $129.8M
YoY Change -11.48% -3.78%
Goodwill $286.5M $338.0M
YoY Change -52.95% -43.97%
Intangibles $246.6M $291.8M
YoY Change -40.11% -29.03%
Long-Term Investments
YoY Change
Other Assets $2.030M $2.068M
YoY Change -9.09% 6.54%
Total Long-Term Assets $884.9M $1.000B
YoY Change -37.65% -28.82%
TOTAL ASSETS
Total Short-Term Assets $194.1M $157.1M
Total Long-Term Assets $884.9M $1.000B
Total Assets $1.079B $1.157B
YoY Change -30.95% -26.22%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.56M $11.10M
YoY Change -17.08% 0.7%
Accrued Expenses $95.19M $97.03M
YoY Change -9.44% -1.5%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $116.5M $116.0M
YoY Change -15.15% -7.36%
LONG-TERM LIABILITIES
Long-Term Debt $531.6M $479.9M
YoY Change -2.24% -11.99%
Other Long-Term Liabilities $1.834M $1.944M
YoY Change -20.3% -73.12%
Total Long-Term Liabilities $533.4M $481.9M
YoY Change -2.32% -12.79%
TOTAL LIABILITIES
Total Short-Term Liabilities $116.5M $116.0M
Total Long-Term Liabilities $533.4M $481.9M
Total Liabilities $890.2M $864.5M
YoY Change -15.31% -18.93%
SHAREHOLDERS EQUITY
Retained Earnings -$1.340B -$1.237B
YoY Change 58.12% 44.64%
Common Stock $20.00K $20.00K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $100.0K $100.0K
YoY Change 5.26%
Treasury Stock Shares 80.00K shares 60.00K shares
Shareholders Equity $43.96M $147.4M
YoY Change
Total Liabilities & Shareholders Equity $1.079B $1.157B
YoY Change -30.95% -26.22%

Cashflow Statement

Concept 2022 Q4 2022 Q3
OPERATING ACTIVITIES
Net Income -$102.8M -$116.3M
YoY Change -12617.05% -64.17%
Depreciation, Depletion And Amortization $10.11M $9.924M
YoY Change 1.08% 9.11%
Cash From Operating Activities -$6.428M -$26.34M
YoY Change 87.02% 128.0%
INVESTING ACTIVITIES
Capital Expenditures $6.056M -$4.250M
YoY Change -146.97% -56.92%
Acquisitions
YoY Change
Other Investing Activities -$130.0K $6.000K
YoY Change -107.62% -94.29%
Cash From Investing Activities -$6.186M -$4.244M
YoY Change -44.7% -56.52%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 47.18M -524.0K
YoY Change -1753.84% -83.43%
NET CHANGE
Cash From Operating Activities -6.428M -26.34M
Cash From Investing Activities -6.186M -4.244M
Cash From Financing Activities 47.18M -524.0K
Net Change In Cash 34.57M -31.11M
YoY Change -297.81% 27.1%
FREE CASH FLOW
Cash From Operating Activities -$6.428M -$26.34M
Capital Expenditures $6.056M -$4.250M
Free Cash Flow -$12.48M -$22.09M
YoY Change -232.04% 1208.05%

Facts In Submission

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Overview of the Company<div style="margin-bottom:12pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">ATI Physical Therapy, Inc., together with its subsidiaries (herein referred to as “we,” “the Company,” “ATI Physical Therapy” and “ATI”), is a nationally recognized healthcare company, specializing in outpatient rehabilitation and adjacent healthcare services. The Company provides outpatient physical therapy services under the name ATI Physical Therapy and, as of September 30, 2022, had 929 clinics (as well as 20 clinics under management service agreements) located in 25 states. The Company offers a variety of services within its clinics, including physical therapy to treat spine, shoulder, knee and neck injuries or pain; work injury rehabilitation services, including work conditioning and work hardening; hand therapy; and other specialized treatment services. The Company’s direct and indirect wholly-owned subsidiaries include, but are not limited to, Wilco Holdco, Inc., ATI Holdings Acquisition, Inc. and ATI Holdings, LLC.</span></div><div style="margin-bottom:12pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On June 16, 2021 (the “Closing Date”), a Business Combination transaction (the “Business Combination”) was finalized pursuant to the Agreement and Plan of Merger ("Merger Agreement"), dated February 21, 2021 between the operating company, Wilco Holdco, Inc. (“Wilco Holdco”), and Fortress Value Acquisition Corp. II (herein referred to as "FAII" and "FVAC"), a special purpose acquisition company. In connection with the closing of the Business Combination, the Company changed its name from Fortress Value Acquisition Corp. II to ATI Physical Therapy, Inc. The Company’s common stock is listed on the New York Stock Exchange ("NYSE") under the symbol “ATIP.”</span></div><div style="margin-bottom:12pt;text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles ("GAAP"). Under </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">this method of accounting, FAII is treated as the acquired company and Wilco Holdco is treated as the acquirer for financial statement reporting and accounting purposes. As a result, the historical operations of Wilco Holdco are deemed to be those of the Company. Therefore, the financial statements included in this report reflect (i) the historical operating results of Wilco Holdco prior to the Business Combination; (ii) the combined results of FAII and Wilco Holdco following the Business Combination on June 16, 2021; (iii) the assets and liabilities of Wilco Holdco at their historical cost; and (iv) the Company’s equity structure for all periods presented. The recapitalization of the number of shares of common stock attributable to the Business Combination is reflected retroactively to the earliest period presented and will be utilized for calculating earnings per share in all prior periods presented. No step-up basis of intangible assets or goodwill was recorded in the Business Combination consistent with the treatment of the transaction as a reverse recapitalization of Wilco Holdco, Inc. Refer to Note 3 - </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Business Combinations and Divestiture</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> for additional information.</span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Impact of COVID-19 and CARES Act</span></div><div style="margin-bottom:12pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The coronavirus ("COVID-19") pandemic in the United States resulted in changes to our operating environment. We continue to closely monitor the impact of COVID-19 on all aspects of our business, and our priorities remain protecting the health and safety of employees and patients, maximizing the availability of services to satisfy patient needs and improving the operational and financial stability of our business. While we expect the disruption caused by COVID-19 and resulting impacts to diminish over time, we cannot predict the length of such impacts, and if such impacts continue for an extended period, it could have a continued effect on the Company’s results of operations, financial condition and cash flows, which could be material.</span></div><div style="margin-bottom:12pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law providing reimbursement, grants, waivers and other funds to assist health care providers during the COVID-19 pandemic. The Company has realized benefits under the CARES Act including, but not limited to, the following: </span></div><div style="margin-bottom:12pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">The Company applied for and obtained approval to receive $26.7 million of Medicare Accelerated and Advance Payment Program ("MAAPP") funds during the quarter ended June 30, 2020. During the nine months ended September 30, 2022 and 2021, the Company applied $12.3 million and $8.5 million in MAAPP funds against the outstanding liability, respectively. During the quarter ended September 30, 2022, the Company met the required performance obligations and performed the remaining services related to the MAAPP funds. Therefore, the remaining funds were applied and repaid during the quarter ended September 30, 2022. As of September 30, 2022 and December 31, 2021, zero and $12.3 million of the funds are recorded in accrued expenses and other liabilities, respectively.</span></div><div style="margin-bottom:14pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">The Company elected to defer depositing the employer portion of Social Security taxes for payments due from March 27, 2020 through December 31, 2020, interest-free and penalty-free. Related to these payments, as of September 30, 2022 and December 31, 2021, $5.9 million is included in accrued expenses and other liabilities.</span></div>
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CY2022Q3 ati Number Of Stores Under Management Service Agreements
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us-gaap Use Of Estimates
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<div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of estimates</span></div><div style="margin-bottom:12pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The effect of any change in estimates will be recognized in the current period of the change.</span></div>
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CY2022Q3 ati Medicare Accelerated And Advance Payment Funds And Deferred Employer Social Security Tax Cares Act Current
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CY2022Q1 ati Temporary Equity Number Of Directors Equity Holders Can Elect
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us-gaap Income Tax Expense Benefit
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us-gaap Variable Lease Cost
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us-gaap Lease Cost
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us-gaap Lease Cost
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CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due
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CY2022Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
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CY2022Q3 us-gaap Operating Lease Liability
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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CY2022Q3 ati Temporary Equity Cumulative Dividend
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CY2021Q3 ati Temporary Equity Cumulative Dividend
TemporaryEquityCumulativeDividend
0 usd
ati Temporary Equity Cumulative Dividend
TemporaryEquityCumulativeDividend
12263000 usd
ati Temporary Equity Cumulative Dividend
TemporaryEquityCumulativeDividend
0 usd
CY2022Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-121592000 usd
CY2022Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-121592000 usd
CY2021Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-324665000 usd
CY2021Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-324665000 usd
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-401877000 usd
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-401877000 usd
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-779149000 usd
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-779149000 usd
CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
204282000 shares
CY2022Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
204282000 shares
CY2021Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
196996000 shares
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
196996000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
202708000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
202708000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
155197000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
155197000 shares
CY2022Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.60
CY2022Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.60
CY2021Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.65
CY2021Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-1.65
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.98
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-1.98
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-5.02
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-5.02
CY2022Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
27151000 shares
CY2021Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
11270000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
27151000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
11270000 shares

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