ATI Physical Therapy, Inc.

Good afternoon, and welcome to ATI Physical Therapy's second quarter 2023 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 during this time, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Please note, this event is being recorded. On the call today is Sharon Biddy, Chief Executive Officer, Chris Cox, Chief Operating Officer, Joseph Jordan, Chief Financial Officer, and Joanne Fong, Senior Vice President, Treasurer, and Head of Investor Relations. I will now turn the call over to Ms. Fong.

Thank you, Josh. Good afternoon, everyone, and thank you for joining us today. To quickly cover, we'd like to remind you of certain statements that were made during this call before 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 obligations to revise any statements to reflect changes that occur after this call. Descriptions of some of the factors that could cause after results of 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 the 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 files with the SEC. And with that, I'd like to turn the call over to Sharon.

Thank you, Joanne, and welcome everyone. Earlier today, we reported our second quarter 2023 earnings results and previewed the growing momentum in our performance. So during this call today, we'll share the details behind our strong operating achievements and our 2023 earnings guidance. So as I sit here today, I am a year plus into my tenure here at ATI. I'm privileged to lead this fantastic national care delivery organization that is paving the way in the musculoskeletal ecosystem. Myself and the entire team are really proud of the progress to date to recover our business. This doesn't come with luck. This comes with very deliberate planning around our key enablers to our success. So the first being our leadership team. And that's at multiple levels in the organization, but putting together a leadership team that has the skills and talents to bring the business where it needs to go. Also very focused on refreshing our culture. Focusing in on people and aligning on goals to deliver on our purpose. And lastly, empowering our teams and supporting their success. giving them the tools, the right tools, people, process, technology, and data that allow them to practice at the top of their license and excel in their roles and execute with excellence. So we've come a long way in recovering our business, and we're picking our heads up and looking at what next. And the next chapter is transformation and growth. While hiring clinical FTEs will unlock our growth for sure, We're utilizing transformation and operational excellence to advance our top and bottom line growth. So turning to the specifics for the second quarter, there are many successes. Frontline team members continue to advance towards operational excellence. Nearly all of our key performance metrics are improving sequentially and year over year. The team has momentum and continues to reach new targets. Our first half track record gives me confidence that we'll continue to deliver on our financial goals in 2023 and beyond. So you've heard me talk about the three P's of our practice, our pipeline, our provider base, and our provider productivity. We continue to focus on discipline execution of these fundamental building blocks, driving growth and profitability in our business. So let's start with pipeline. Demand for PT, for therapy, sports medicine, Worksite injury and prevention programs remain strong in 2023. Our therapy referral volumes have exceeded pre-COVID levels. On the people front, clinical FTEs are growing quarter over quarter as our new talent acquisition team and recruiting tactics hit their stride. Combination of hiring and retention has been very powerful for us, allowing us to retain and grow our provider base. Lastly, we have productivity. Our productivity levels also steadily have grown quarter over quarter. Second quarter marked the highest visits per day since pre-COVID levels, allowing us to provide outstanding care to more patients every day with fewer clinical FTEs. Chris will provide more details on our operational metrics, our valuable transformation activities, and the other operational improvements we're making. It's really rewarding to see the team's purposeful actions delivering meaningful improvements for our colleagues, patients, and our business. Let's take a look at unit economics. Our key metrics are also improving here. Our rate per visit not only stabilized, but is trending favorably. Payers are increasingly recognizing the value of high quality physical therapy and positive patient outcomes. resulting in higher reimbursements. Now, even with modest rate increases, physical therapy still remains a lower cost treatment pathway for musculoskeletal issues beyond the alternatives available. Equally exciting, we're starting to see some payers move to more flexible structures for reimbursement terms. So for an example on this front, we're proud to be partnering with a payer to expand access to a traditionally underserved population while ensuring the rates make sense for our practice. This is beneficial to our communities, our clinics, and to the payer members. So we've had solid operational achievements combined with strong market demand for therapy and sports medicine services, and that's all translating into improved financial performance. We've seen higher sequential and year-over-year revenue, adjusted EBITDA, and profit margins. Second quarter marked ATI's highest revenue since the start of the pandemic in early 2020. Joe will walk through the financials in more detail and our 2023 guidance. Let me be clear. We are being deliberate in our plans to deliver long-term sustainable growth and generate value for our patients, employees, communities, and our shareholders. So I've mentioned on previous calls that we will be looking to form strategic partnerships that position ATI as a leader through leveraging our national single-branded standardized care model. So many of you may have read most recently we announced a partnership to elevate our digital telehealth capabilities. Now what this does, this allows us to create options for patients and meet our patients where they are through a hybrid care model. Our providers work with patients to develop a personalized treatment plan that integrates virtual physical therapy with hands-on care. I sit here very grateful for our incredible ATI teams. They are laser focused on the best way to bring the ATI purpose to life. to exceed patient expectations by providing the highest quality of care in a friendly, encouraging environment with impactful outcomes to improve each patient's health. Every day, our teams are making a difference in our local communities and continue to challenge themselves to realize our full potential. Now, I will turn the call over to Chris to talk about clinic operations.