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      ATI Physical Therapy, Inc. (ATIP) Stock on a Sharp Decline in Premarket, Here’s Why - Stocks Telegraph

      By Hassan Masood

      Published on

      October 20, 2021

      8:05 AM UTC

      ATI Physical Therapy, Inc. (ATIP) Stock on a Sharp Decline in Premarket, Here’s Why - Stocks Telegraph

      ATI Physical Therapy, Inc. (ATIP), an outpatient physical therapy provider, has declined 15.07% in the premarket trading session. As a result, ATIP was trading at $3.10 when last checked. The decline has come after the company reported preliminary third-quarter 2021 results in the early hours of Wednesday. On Tuesday, ATIP closed the day at $3.65 after increasing 2.24% in regular trading hours.

      ATIP announced Q3 2021 preliminary results

      According to the details, ATIP announced the selected preliminary results for the third quarter of the fiscal year 2021 which ended on 30th September 2021. The company said that it anticipates the revenue for the quarter to be about $159 million. The income before taxes is expected to stand around $147 million. Besides, the adjusted EBITDA was could be $8 million approximately. The company implemented targeted measures to reduce the clinical staff’s attrition and for improvement in clinical full-time equivalent (FTE) growth during the last two months of the quarter. Apart from that, the company made rapid progress toward restoring FTEs with the ATI hiring roughly 2 clinicians with every 1 departure in August and September 2021. Compared to that, the ratio for the second quarter stood at 1 to 1. Commenting on the results, Jack Larsen, Executive Chairman of ATI Physical Therapy, said that the company remains confident about long-term growth prospects for it.

      Q2 2021 financial highlights

      On 16th August, ATIP reported the detailed financial results for the second quarter of the fiscal year 2021 which ended on 30th June 2021. The company had cash and cash equivalents of $90.56 million on 30th June. The total assets in possession of the company were $2.08 billion, while total liabilities were $1.26 billion. The net revenue generated by the company during the period was $164.03 million against $107.75 million for the same period of 2020. The total clinical operating costs for the period were $128.58 million against $96.61 million for the same period of 2020. The operating loss for the period was $458.05 million against $13.62 million for the same period of 2020. The net loss for three month period was $452.46 million (or net loss of $3.22 per basic and diluted share) against the net income of $4.59 million (or net income of $0.02 per basic and diluted share) for the same period of 2020.

      What’s ahead for ATIP?

      During the last three months, ATIP has declined more than 50%. The prime reason for the decline appears to be the ongoing investigations against ATIP by numerous law firms. The investigations are based upon the provision of false and misleading statements to the market by the company. Analysts believe that ATIP has the potential to attract investors once it comes out of these ongoing investigations successfully.

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