ATI Physical Therapy, Inc.

And welcome to ATI Physical Therapy's second quarter 2022 earnings conference call and webcast. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. If you would like to ask a question in this time, press star followed by the number one on your telephone keypad. If you would like to remove your question, again, press the star one. Please note, this event is being recorded. On the call today is Sharon Vitti, Chief Executive Officer, Joseph Jordan, Chief Financial Officer, Ray Wall, Chief Operating Officer, and Joanne Fong, Senior Vice President, Treasurer, and Head of Investor Relations. I would like to now turn the call over to Ms. Fong to read the Safe Harbor and forward-looking statements.

Thank you, Emma. Good afternoon, everyone, and thank you for joining us for today's call. Before we begin, we'd like to remind you that certain statements made during this call will be forward-looking statements that are subject to various risks and uncertainties and reflect our current expectations based on our beliefs, assumptions, and information currently available to us. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Descriptions of some of the factors that cause after-results with different material from these forward-looking statements can be found in the risk factors section in the company's filings with the Securities and Exchange Commission. In addition, please note that the company will be discussing certain non-GAAP financial measures that we believe are important in evaluating performance. Details on relationships between these non-GAAP measures to the most comparable GAAP measures and reconciliation of historical non-GAAP financial measures can be found in the earnings press release that's posted on ATI's website and filed with SEC. And with that, I'd like to turn the call over to Sharon. Thank you, Joanne.

And welcome to all of you joining us for our second quarter earnings call. I'm here today with Joe Jordan, our Chief Financial Officer, and Ray Wall, our Chief Operating Officer. We have a lot to cover today, so let's jump in. I will begin by sharing some initial thoughts after my first 100 days with the company. Next, I'll provide highlights on Q2 results and perspectives on the landscape, where we are now, and what we are doing in the immediate term. We know our expected financial performance is important to the investors, and we will walk through revised guidance as announced in the earnings press release earlier today. Ray will further discuss operational and provider performance during the quarter, and Joe will take you through a detailed financial review and the basis for the guidance revision. Finally, I'll wrap up with closing comments before we open the call to Q&A. In the past three months, I've started to learn about ATI from the inside out. Through clinic visits and most recently attending our mid-year field operations meeting, I'm encouraged by the talented teams and their strong commitment and passion for ATI's purpose. The operating chassis and resilient culture are the foundation that ATI has grown on and will continue to be the basis for our future. The team has also made strides in launching technologies that generate evidence-based data for our providers to use in developing high-quality treatment plans coordinating care across providers, and measuring clinical outcomes along the patient journey. I'm excited to lead the company, drive the ATI mission forward, improve patients' quality of life, and leverage the existing foundation to grow our national practice. Right now, we are focused on the three P's of the practice, our pipeline, provider productivity, and our provider base. All are critical contributors to our near-term growth targets. Physical therapy is an important care offering and continues to have strong demand. Following market trends, the demand for ATI services is also strong. The Q1 investments to drive sales and marketing are producing meaningful results. Referrals continue to grow in the second quarter, giving us confidence that our investments in relationship building with partner providers have been effective and well placed. This is a good start, and we are continuously iterating to advance the pipeline. On provider productivity, I've been working closely with Ray and the field leaders to ensure we support our clinicians, remove barriers, and allow them to focus on treating patients. The performance metric we track is visits per day per clinical FTE, and we seek to strike a balance between increasing access for patients so they can get back to their best physical health and affording our therapists the space and resources to provide outstanding patient care. In the second quarter, the metric was 9.1, which is a quarter-over-quarter increase of 0.6 visits and represents solid performance by the field team. At the same time, the net promoter score remained high at 75. With the investments made in clinical support in the past year, we can sustainably execute visits per day per clinical FTE across our national platform higher than nine. Related to our provider base, The tight labor market has impacted our pace of hiring and our ability to meet patient volume projections. Offers with increased wages stimulate movement of providers from one PT organization to another and creates a higher reliance on interim contract labor, both adding to our cost per visit. While referrals and requests for ATI services has grown quarter over quarter, our ability to meet demand is constrained by the size of our provider team. We have been prudent with our actions as the labor market has tightened and wages have increased. We remain driven to overcome the market labor headwinds and are taking targeted actions to attract providers to ATI, including expanded recruiting efforts and a steady focus on fostering our employee-first culture. Within the next few weeks, we will also be announcing a new chief people officer and she will bring a renewed focus and seasoned guidance to our talent acquisition and people development strategies. Despite the positive trends in our performance, the gap in adding providers is having a direct impact on our ability to deliver our 2022 growth plan. We are revising our revenue and adjusted EBITDA guidance for full year 2022 to reflect the current labor market, and Jill will speak to the details shortly. It is important we establish a realistic outlook for ATI that acknowledges the labor shortfall balanced with the need to grow our bottom line. Looking ahead, we are evaluating our baseline operations to position ATI for the long term. We are reviewing our people, processes, and technologies and digging deeper to understand costs and investments associated with growing the business, operating with excellence, and serving our patients. We are gaining insight into the past for near and long-term earnings and cash potential of this business. This work is in progress, and we will be providing updates in the months and quarters ahead. While I don't have all the answers after three months, I can share a few additional near-term priorities to drive ATI's performance. Across our national practice, we are undertaking a comprehensive location review to assess return on investment and form an action plan. At corporate, we're evaluating SG&A spend and acting on opportunities to be more efficient. Regarding care delivery, we have identified specific opportunities where our ATI connect virtual care can increase access and allow us to treat patients sooner. We expanded our workers comp program and auto personal injury programs in June this year in Illinois and Texas. In our Texas pilot, we saw greater than 50% year-over-year growth in the first half of 2022 and a higher rate per visit in Texas due to the workers' comp and API mix. Moreover, we are capitalizing on pent-up demand for our ATI Worksite Solutions service and are working to execute numerous contracts in the pipeline before year-end. My first quarter as CEO of ATI has not been without its challenges. I remain optimistic about the company's future and want to thank our employees, patients, and investors for their dedication and support. It is from weathering challenging times that good companies get stronger. I'm proud of our accomplishments through the first half and am eager to drive forward with intensity and purpose as we deliver on our commitments in the remainder of the year. And with that, let me turn it over to Ray for a detailed discussion of clinical operations.