ATI Physical Therapy, Inc.

All participants will be in a listen-only mode. All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw that question, again, press star one. Thank you. Please note that this event is being recorded. On the call today is Sharon Beattie, Chief Executive Officer, Joseph Jordan, Chief Financial Officer, Chris Cox, Chief Operating Officer, and Joanne Fong, Senior Vice President, Treasurer, and Head of Investor Relations. I will now turn the call over to Ms. Fong.

Good afternoon, Krista, everyone, and thank you for joining us today. Before we begin, I'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 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 actual results that differ materially from these forward-looking statements can be found in the risk factors section in the company's filings to the Securities and Exchange Commission. In addition, please note that the company is discussing certain non-GAAP financial measures that we believe are important in evaluating performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliation of historical non-GAAP financial measures can be found in earnings press release as posted on ATI's website and filed with the SEC. And with that, I'd like to turn the call over to Sharon.

Thank you, Joanne, and welcome, everyone. We have some of our ELT members on the call today, Chris Cox, our COO, Joe Jordan, our CFO, and then we have Emily Tansey, our CPO, Scott Gregerson, our Chief Growth Officer, Gus Oaks, our CIO, and Eric Cantz, our Chief Legal Officer, and they'll be either in person or dialed in on the participant line. So this month marks my two-year anniversary leading ATI. It's truly been a pleasure and a privilege to be a part of the ATI family. I would characterize my tenure as being invigorating and gratifying. It is really exciting to watch a good company overcome speed bumps to deliver on goals while building momentum month over month. It is equally rewarding to lead a group of talented people who are driven by having a meaningful impact on each other, our patients, and our communities. I am confident that ATI will continue to succeed in strengthening our financial health and innovating in the musculoskeletal space with the ultimate goal of improving access, quality, and affordability of rehabilitative care while improving the health of our communities. So let's jump in and take a look at Q1. The quarter marked another major step forward in our journey. Earlier today, we reported our first quarter 2024 results. We continue to grow on many fronts with what we have and are inspired by our purpose of making every life an active life. Our providers and support staff demonstrated exceptional teamwork over the quarter and across our national platform, navigating inclement weather in January to ensure patients receive the care they needed. Earlier today, we also provided Q2 2024 financial guidance which Joe will discuss later on the call. Since our last call, I outlined the winning strategies that drove our growth in 2023. Similarly, we are advancing these focus areas to drive growth in 2024. Strengthening the ATI culture, growing the provider base, elevating talent and creating development opportunities for our employees, expanding access for patients, operating with excellence, enhancing the patient experience, and improving our financial and key KPI performance. So let's look at growth. We drove growth year over year and expanded patient access. In Q1 2024, we saw approximately 1,100 more patient visits each day compared to the previous year. I would say our strategies are working. The focus for the remainder of the year is to continue to deliver impactful outcomes and expand access to physical therapy, including in underserved areas. In the quarter, we also made significant strides in our real estate initiatives. We are executing on our strategic real estate plan, which includes investing in our current fleet with necessary upgrades, refreshes, consolidations, We also refined our geographic footprint to align with patient population needs, which resulted in 11 closed clinics and one divested clinic. Our rates improved through a multitude of actions. In the first quarter, we continued to increase the rate per visit year over year. Teams took deliberate actions to advance the rate per visit across our platform, and we will continue efforts in 2024, including Leveraging our ATI patient outcomes and satisfaction data in payer contracting discussions. Improving front end operations and revenue cycle management to fully realize collections. Growing our workers comp and auto personal injury offerings. And receiving bonus payments under MIPS, the merit based incentive payment system for Medicare services, striving to earn our fifth year of incentive in 2024. Now, that said, the real work is to influence rate-setting leadership about the value of PT and the musculoskeletal care continuum. In partnership with industry and other healthcare organizations, we are advocating for improved patient access and increased reimbursement for physical therapy with national leaders. We are disappointed by the continuing Medicare CCA schedule cuts for PT over the past several years. There is a clear disconnect on the value of PT to our healthcare system and the aging of our population. Last month, Congress did take action to provide incremental relief by reducing the Medicare rate cut for the remainder of the year from 3.4% to 1.7%. We applaud this action and need to continue to fight more. From a people perspective, our people strategies and culture refresh resulted in exceptional therapist retention. Since Emily Tansey joined our chief people officer in late 2022, she and her team have worked diligently to engage our employees. They've implemented a cultural refresh and crystallized the organization's purpose, making every life an active life. Despite the tight labor market, we grew our provider employee base by investments in retaining and attracting colleagues. And we launched innovative programs to position ATI as an employer that invests in our people. We all know changing corporate culture takes time and the work takes stamina. We are seeing results with the clinical FT in the first quarter growing year over year. Most significant, the ATI clinician turnover rate has been trending lower. The last three quarters in 2023 saw a turnover rate in the low 20s, and we have seen further improvement in the first quarter of 2024 to an exceptional 16%. We continue to focus in on incremental improvements in our operations. With a stable workforce, we are better equipped to build upon learnings and continuously refine our operations. It is worth pointing out that our clinics continue to be busier year over year, with visits per day per clinic growing nearly two visits each day over the prior comparative quarter. Our clinics on average still have excess physical capacity, As we grow the provider base this year, we will leverage our clinic real estate and spread our fixed costs. Chris will provide a detailed discussion around our operational performance and activities shortly. Revenue and adjusted EBITDA grew year over year, showing continued progress. The strong demand for ATI services combined with our business growth is reflected in the financials with revenue and adjusted EBITDA for the quarter growing year over year. We are focused on executing on our strategies and delivering continued growth in revenue and earnings in the remaining quarters of the year. Joe will provide a detailed walkthrough of Q1 financial results and discuss Q2 2024 guidance later in the call. With that, I will conclude. We have remarkable teams making positive impacts on millions of lives. I'm inspired by the exceptional colleagues we have at ATI and value their commitment to enhancing the lives of our patients. They truly exemplify the true essence of ATI. I remain privileged to lead this fantastic care delivery organization and I'm proud of the positive impact we are having across the musculoskeletal ecosystem. With that, I will turn the call over to Chris to discuss operations.