ATI Physical Therapy (ATIP) 10 Nov 212021 Q3 Earnings call transcript

Good afternoon, and welcome to the ATI Physical Therapy’s Third Quarter 2021 Earnings Conference Call and Webcast. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

On the call today is John Larsen, Executive Chairman and Acting Chief Executive Officer; Joseph Jordan, Chief Financial Officer; Ray Wahl, Chief Operating Officer; Ryan Wilson, Chief Commercial Officer, and Joanne Fong, Senior Vice President, Treasurer and Head of Investor Relations. to call like to now would turn over the Miss. I and read the to forward-looking safe Fong harbor statements.

Alexander. thank us you you, for Thank Good joining for afternoon, today's everyone, and call.

certain would forward-looking assumptions be that and on to reflect are risks available remind began, their call various statements like us. to information uncertainties we during this currently we you Before beliefs, that and statements subject current made will based to and expectations

revise we Although, of to factors any can the we risk cause section the to and these differ no believe statements Commission. cost. the some from found to materially with could statements Securities Exchange reasonable, occur of undertake in this are that after actual the changes results on filings be these obligation expectations Descriptions factors company's

on that GAAP that, financial I'd be measures ATI’s call with In and with And reconciliation important between measures most performance. discussing that's found SEC. will website, company to we and and that turn addition, believe these on Jack. release press be please the relationship measures financial over the are like certain note the posted GAAP non-GAAP focus Details on the filed in evaluating comparable can to non-GAAP to measures

third Joe, a discussion financial more we you open of performance, and XXXX and welcome to the pass remarks questions. our business our we over the to then have level the and us Thanks, to my to balance Joanna, who I detailed where your and the quickly on interesting all joining beyond. is underway quarter provided to high afternoon. on comments today before call the begin of to move want this with advance of few review a activities I'll through call

Board Committee. recently Chairman. on was I’ve familiar nominating recently team, Group landscape. you at gaining Audit the who appointed XX the Corporate a ATI, Governance years XXXX, role I'm our of And served XXXX I with while permanent meet the yet, March very fairly of overall chance I of find joined navigate in Now, the took experience, Committee and role a had haven't and year, to Executive Health Chair of past alongside from healthcare in I in I ATI’s and those will for broad on to spent XXXX and so operating with the CEO. until most United a help we executive this

an what formal Board progress. reported, would say previously you course, to a is of will we keep underway. candidates, interviewing assessments And, in and I the search interesting As we we've of our advised process as And CEO currently slate assembled started August. are

performance both under the team in challenges, dedication, with receiving Star XXXX. Score Medicare year our performance their real the percentile And recently X.X team And team. Promotor CMS of our bonus quarter, XXXth very third third remained Physician out credit ATI continued XXXX. in our scored Patient Furthermore, for quarter. to start to in will accordingly, ratings with that stars highest Now support. to XX. Fee for Any the members the us must you of our Google our thank our at our five high and to and clinics service. clinical high all at adjustment possible be customer the rating sat a on advised quality big the Schedule Net care and work hard Despite a discussion provide many

program, functional outcomes capability clinicians XXXX that Medicare to for the payers exceptional rate data report and fee increasingly enable in allows platform ATI other the to turning reporting to the therapy, CMS such reporting considering and work the the And single providers and and every model schedule on collect becomes MIPS our clinic reimbursement for rates. higher report centralization our same to data. collect business Our This deliver important out into as success. and

ourselves, of financial in the what for into clinician policy and Although we dissatisfaction, spiked for then, headcount of we potential experiencing or the quarter, challenges beginning as our are clinical month end believe for expect is Since in expected performance out going during higher I foundation led in of quarter levels growth. XX% the XXXX the to course third both Last XX% in of corrected. September hiring we steady in not the improvement over teams, revisit clinic attrition well what turnover we and laying as many quarter. of next second-half of expect we you and year. our put Annualized with place from roles, the were That for us third COVID. compensation approximate we decreased workplace the of to July, to just and from our XX% improvement issues hindsight, quickly the replacement

XX event. well October November reduced increased FTE July we These encouraging for our by well. But in this into through hired September. as and up a and as be extended clinical clinicians as September, attrition two picked as clear, with is results departure, to both approximately journey August hiring this past total not from early every an Our through

would as way entire to do. clinical We you'd company our authentically engage expect will continue a as world-class workforce, both well the and support support

XX.X a about well between Now, discussion day, we of In the to visits and delivered recovery and the volumes clinics clinic. volume. healthy comparable clinic a fixed positive of clinic. our of level a strikes appeared activity quarter year, right leverage terms XXXX. our two of XX provider visit towards XXXX, the day XXX average per with move really what on were is VPD XXXX, a level first count, per about a clinic mostly be patient balance approximately We as day the per which Throughout visits per average for experience. third clinic, XX,XXX and cost of patient think per saw VPD this let nearly in tracking quarters to steady to In per visits as or me volumes on

slightly volume XX,XXX the This should day, visits volume quarter. declining this softened both been have experienced the visit we from softness our few the growing. a is primarily when Midwest During second in per states third we XX,XXX to of day forecast we Simply about key per volume stated, in quarter visit visits year, centered Northwest. down and within

exceeding based both representatives. the sales our clinical we are more integrating northeast, of team many clinics To our very new national actually clinics, addition drive are and While or volume levels. to to for in across members, close all in running pre-COVID footprint, feel investing in south

partners quickly We've campaigns. and markets, function and volume important those them accelerating contributor growth, This we put Here in place. practice our up reduced into particularly move in as is COVID, are to moving we obviously where an marketing we rev next marketing year. digital was significantly we this to referrals, call can but our identified sales believe during

While moving the we We work you being business. drivers we will our helping to metrics this are our key navigate summarizing and the parts of understand performance end, transparent earnings the key help To this to tables we underlying community our believe business. information investment press better understand included many the committed more you, release. trends in supplemental recovery, and in our

review turn outlook XXXX. in third for our to over want of quarter our call Joe? revised to detailed to I Now, year full financial the results a Joe provide

thanks for today. And the you, call Thank everyone Jack. to joining

was In quarter million, third quarter the addition and results, XXXX provide $XXX third quarter in perspective Net to XXXX financial year-over-year our XXXX. our I'll on of a $XXX model. reviewing our of business the guidance, in revised term third revenue long increase from X% operating million

patient year-over-year, million, X.X% revenue $XXX net while was year-over-year. revenue which increased increasing million, Our X.X% was other $XX

sequentially was X.X XX.X the Visits per in per day clinic second As which per Jack decreased mentioned, XX.X, Visits the day quarter. for quarter from

third quarter, third Rate from in the per second to utilization. and respectively, significantly XXXX volume. expecting typically XXXX, by third the Visit business many the plus to in mentioned vary quarter. decline normal or as capacity There while with quarter the than year, operations during combination of lower clinic $XXX.XX quarter-over-quarter a and in seasonality Visit third X% a the including mix per hires. labor volume referral We in to continue the COVID was and quarter onboard by level was the normal will quarter we one notable XX representing as XXXX softening, due Now, change quarter quarter decreasing our Visit increase day was due the impacted clinic quarter-to-quarter. combined per third to new quarter X.X% at normal per per and to in day. of was productivity with ramp XX.X factors, were Visits XXXX second we sequentially Rate The in is second the physician within second clinic minus quarter, level to no our compared lower the back as $XXX.XX approximately payer

$XXX.XX per personal Visit Workers XXXX, of injury was commercial the categories XXXX, and and mix quarter Rate higher of respectively. auto comparing to governmental. Compensation shifted payer prior to Our from years, When and and $XXX.XX third paying in

shifted In reimbursing states, in footprint. towards driven diversification continued addition, by of geographic lower state mix part our

second PT XXXX Finally, X% of the lower XXXX third costs in in reimbursement Fee rate for XXXX approximately was and rates. was the than $XX quarter related sequentially per Schedule Physician million year-over-year XXXX Visit Medicare quarter Salaries increasing from related million $XX.XX from $XX in costs in the QX XX.X% XXXX. of quarter XXXX. XX.X% increase of $XX.XX an Salaries the and during were

During feedback range our the implemented response actions third clinical to in received the quarter, from a of staff. we

driven of wage adding and pockets per XXXX, inflation quarter-over-quarter our respectively. country. to Salaries quarter addition to the the partly XX.XX improved XXXX clinics slightly structure in also the were third footprint, costs identified in related and the support in by certain had across of which the XX.XX, from visit cost was costs of increase In

market quarter clinical $XX sequentially other during the the per of quarter the compensation using supplies, a is and year-over-year productivity, as expense primarily The contract clinic measured increasing greater clinic levels, of per contract, and third XX,XXX visits $XX order is approximately to was labor quarter. correlated On filled the million QX in costs and labor third XXXX. million, was from use in per was Rent, addition respectively. and other XXXX a to quarter X.X% of positions. In from per other labor open and was XXXX, basis, day. XX,XXX we which in to quarter-over-quarter approximately with also increase clinic this Rent in increase cost due approximately XX.X% alleviate second rent XX,XXX FTE XX,XXX, workload in

XXXX. the margin, quarter million, third in income or when $X equal federal forecast, a September SG&A XX, increasing $XX XX of $X third charges $X in charges, XXXX. impacts $XXX quarter income million contingent connection mark-to-market adjusted fair $X NOLs, respectively. with consistent impairment specifically excluding of and as remained or equivalents the a In for along recorded tax EBITDA the X.X% our costs, Program, $XX the third the from X.X% of both comprised by of third in in non-cash and the the fair of difference million benefit costs, $XX third in assets, million, liabilities of XXXX Operating levels annual of in of was particular analysis was in quarter quarter line the valuation million from resulted certain of our Payment $XXX on QX the Cash variations items in XXXX state was XXXX the the in million quarter of at The liquidity XXXX repayment estimated allowance below XX.X% revised by quarter $XX in third increase trading public Advance and recorded driven quarter of the in recorded to quarter net the was stock XXXX Medicare revolver structure. XX.X% decreasing cash quarter And third in third in as date. September the under XXXX the funds. Notable QX the year-over-year was decrease undrawn available combination, historical were year-over-year valuation at $XX an in $XXX one-time D&O was XXXX year-over-year impairment attributable warrants Act Provision gain tax XXXX. included mostly million of the for XXXX. was with third or addition in year-over-year year-over-year third our X.X% transaction charges in during non-cash inflation, $XX primarily with by are business to asset $XXX for a third an in which generation was in to increase price intangible intangible of goodwill, value has and margin mostly Income due X% quarter and from driven million benefit tax million value year. from and of of to loss and the $X of and million quarter million contract the insurance and a Net value in of labor $XXX was included compared offset connection in increase for this Available was NOLs goodwill QX doubtful which The between XXXX revenue, million from cash costs million, in XXXX to valuation credits. $XX and quarter million of carrying of these partially XXXX. category the million fair of adjustment million, accounts million, with consulting XXXX to use of of charges. in $X loss higher third of capacity. decreasing and income of income primarily considering $XXX $XX in in million. the QX expense We shares. decreasing was quarter acquired of company the Impairment value was based state the common related million million, CARES The

million experienced same to a prior million in $XXX visit $XX million adjusted million million the of range to from million. from at guidance to the to test and times the defined marginal if, full the $XXX of also leverage credit $XX range. was million. greater for triggering quarter third revolver. agreement compared and QX $XX On to guidance ratio The agreement without which from prior and covenants by our visit the in quarter revolver of times. visit range, important the to the was guidance covenant, volumes on we $XXX has the volumes improved quarter. not decline leverage volumes the high-end each range XX%, million previous X.XX October of and than under note to we considering revolving the softer year prompted EBITDA of the visit was $XX ratio XXth, springing range guidance, credit It at million drawn of need may of during is the is revised facility range revenue $XX exceed whereby the full implies year quarters the $XXX that Our last made-up guidance Thus, day $XX time, cash, of the X.X reduction credit continued financial revised fourth the liquidity growth At marginally revolver of quarter, third million, by of the to the of anticipated assumes a as availability XXXX a our $XX both our The third lowered approximately XXXX. third a to in in the at low-end end

in Jack and continue not markets mentioned, As our some visit while of capacity levels our have to Referrals and other expectations. clinic met volumes lag markets. outpacing are our pre-pandemic

As continue XX such, the between XX target we clinics to new for full openings year. to,

in key invested through to earnings current volume, profitability visit a release. build based CHI understand the fixed labor driver metrics, our to third Finally, of business a much performance currently to and establish that premier the XXXX environment, I'd higher principal platform business near-term, deliver of like in consumer on number a walk in in The we how to than help years as the both model, can support financial to and quarter the we and order the our navigate plan presented clinics simplified We past earnings markets in corporate scale leverage brand, increasing to have. costs. we supplemental

our costs overall to contribution year impact salaries million less clinics As an we running adjusted in the our are XX.X focus utilization. increasing move Jack, the EBITDA EBITDA visit, we illustrate order related financial per profit rate fiscal where and and margin visits, XXXX, of X%, quarter, is in $XX.XX. our our To quarter XXXX of third was immediate laid out to the volume drive of adjusted visit day generate capacity closer to clinic visits $X markets. fiscal With and EBITDA million per at i.e. EBITDA third and per of XXXX, of our turnovers XXXX visits XX being driver market, the we're value of primarily focused operate. other average would nearby generated then XX%. states visit, and Once payers have opening adjusted equal, an unit rate through growth, we a the density of margin which increasing per clinic of optimized day. increasing capacity we new adjusted utilization per entering within mix becomes operations with in local In All are $XX medium-to-longer-term, on our our economics the scaled and

EBITDA Additionally, business impact we is $XXX, Rate other generated the straight through illustrate EBITDA. higher QX assume the driver would per of we have the prop value continue CMS, we and margin to They would commercial critical outcomes example, and models nearly our that rates, rates outstanding have of rate visit as long-term MIPS, XXX% adjusted flow XX if rate a but I through of earnings, visit of per financial previous adjusted to the change million our of EBIT is $XXX.XX, avenues. of compared under an for XX%. the earn adjusted

the intend continue releases each metrics our tables to back call provide visit to clinics, With line-of-sight clarity restore and the volume earnings Jack. including turn supplemental I'd we greater into business. quarter we As like performance to in our in key to that, over of

take clinics team our recognize and Thanks, their to dedication work, open office corporate I'd deliver moment a for questions, ATI our up in Joe. across to before to brand. the XXX it our again to we on like And hard nationwide

of have great is a and and done. in We we we platform While sector have and With physical line therapy lot the where tackling headed. great to us, people a remain open of ahead company for prospects we'll about Q&A. also our that the job excited blocking work that, get the

Thank Jefferies. Neamonitis question your Instructions] Chris first have with you. We from [Operator

line is open. Your

I you the us then But appreciate demand. kind meet your touch give you today there's know, today. the the all strong, on for to color and last and release them? want hearing Thanks quarter guys. commentary you're on Hey, the in to question suggested referral were Can from sources. what update otherwise. I inability an mentioned, pre-release referrals and of

today? So about And to little has more a and know over could then, these the we of to so on there patient think negative attrition having quarter of more the continuity? relationships there, if you're you wanted strength issues, that at potentially any us how give cadence impact a been maybe of where the change as evolved

Sure. Jack. This is

let maybe the reverse of that order So my some colleagues take response me in dish-out might and to question I here.

a at that looking last KPIs we our time is in we in had the in at in now were time. point you our everything earnings point see where And the So supplemental at call, materials. our

XXXX to catalysts that might both to for and the At plan our gee, had forecast, a June, half levels, felt prospective which really look ability growth our our reduction. our Looking a felt looked XXXX in point we get be And We replacement as time, were to sort at embedded performance and a the that our like we tracking and nice that at along actually levels. plan, to to base we're like in we the recovery second needs we overlay. was late at our shareholders to rate back into at initial our of May our be really hire overlaying our we said, using disconnect experiencing some our our growth. really through was and actual referrals, of attrition, on XXXX match alert to was visits earnings with sort that first was and against there owners therapists,

strengthened about what our our that behind and the where over our happened, you'll capabilities, right visit visit and softened as run think summer. our with rate, and in We we feel our ability good volumes hiring hire are very numbers, to see retain. I

we Now, unfortunately, as is where have the not volume to be. model, visit his Joe we pointed that out currently want in

enjoyed why sales think referral reason back the years. that is the back that's don't model hard broken? say, I we're the previous build build in capacity. referral working I'd to really so. And really So to model we

markets As the are I kept key in comments upper visits or said where to in that key markets pre-COVID Midwest level. speed markets, referral there markets prepared with and pre-COVID And per haven't are around the at are volume. are country, that up day my then our primarily above there big we for us we markets,

a it's think don't model referral I impaired wide. So question of system

field kind healthcare on consumer a more we've part we're our the marketing partner really it's after relationships the side, Mo And got building again, those are capability. our that think get rash. I [ph] the digital then the on of especially a And referring, way is of back doing and practice to of our professional local side, salesforce, reinvesting up beefing

Got a touched follow volumes. maybe it's the then you some it. that just spots and of on to bright up referral And

you just salesrep being You with and able commercial therapist versus about portfolio team. the Maybe the can across think us your securing understand referrals. relationships how talk about to drive help link referral your confidence and

Yeah.

I me for partners there their that, me for for our wants keep volume. since sort responsible geography is a relationship they're let wherever their is do Ryan, of directors, practice therapists Ryan for this up rest it... And really and both let think very strong to between their So of one clinic take business and

Yeah.

Chief So, Commercial Wilson here, Officer. Ryan

Chris, So for thanks question. the

volume we when looked staffing a correlation referral volume comes the at clinic at As of first it changes model level. visit any there's -- we've very from tight between all and

changed. referral Jack's very as we correlate we've to the point, are the is making at that sure a in we we're we make bringing got has investment back to the in adjust the on as into sources? post-COVID sales quality part significant staff to confidence back So in to able be that. of clinical to rebuilding live To that many making do look And a not all. sure And of how what as looks we the do model the clinics we model perform. referral, then back to -- We're doctors our of where off those come like folks a markets start calling

And so do we performance. starting do is the as as yes, continuing confidence referral to indicator know which have leading high that, we're see grow, to on What correlation. we we a volume is see we

feel to will very we So good have go. model we as we to do we as this. But that expand continue staffing

the your to that's And is opposed in as somebody practice Yep. about somebody just on a joint more a conversation. as physician a important who points physicians oriented, one as well, up with a having for to referring has great calling way showing partner conversation referring an and have relationship clinically a

So calling up how model. gearing that's our we're

it's That's you to your very in pack were the in I back benefit and those expectations of helpful. out the And traction then and exactly you changes sort comp I'm packages. getting a one or to can. what implement gain key queue. more sort your of exactly I'll if feedback interested finding in efficiency. hop Can any And lever are hiring been initial you

think of those course policy think we issues our new bring our not successful in positive to we're been the -- some well point clear, that strong, into to very and on have recruiting feedback who this as I'll to at also rerecruiting them back very had but I past retaining turn as clinical in done workplace us fold. reverse Ray. left the over So comp getting have very one some current moves But only people team, I

comped job There done XX, a adjustments. and appropriately past that appreciates really the think people ensuring XX over field of has And I I been a we've the think fairly. lot movement Yeah, that. are nice and being we've made months

around more a so other those they're we've the then I the of support giving on benefits of the worry and patients, to they right lot passionate the salary make changes, don't them do changes and treat to providers you and support, about. feel have some provider, our can also like patients. that and benefit sure and amount the have admin therefore, are right the skills, what And they we're the that to their providers also with to sure that that of again, salary, think along mentioned make around continue tools to investing programs they made about to importantly, they which on but in provide ensuring work work, ability they we have like do truly continuing the truly education, changes them are to treat focused

of we talking So, helped the an that of I has also some think only all combined not with to about. attrition help that employer, make but us attractive issues were

of question Hey, jump just kind more to Chris, it's cost specifically Joe. in I'll your on the piece it. of

back increase QX today. as we've every a we can quarter-over-quarter about KPIs, XX%. You'll labor cost to There If that XXXX quarter cost laid to of you about. some result going of visit a increases look cost through saw the per talked actions Ray our in see or that out see QX, the is

we've which certainly made, ramp the down. up of components. sort mentioned new as I to that changes line that their item, of script work in the But cost. call of caseload, come productivity the we QX staff other today is you'll One productivity there's they in onboard Now, piece is has add see as as clinicians two and the

to down visit And their per expect move bit we so cost build we forward. as their to continue would come of clinicians caseloads, a as labor onboard, those sort continued

the is to I understand you help think data there that.

Yes, that's helpful. Thanks a lot, guys.

Yes.

Next question.

CJS have Securities. Solow Larry your question from We with next

open, is line Your

Thanks guys. Great. questions. the for taking Good afternoon

you there, guys, higher do momentum? somewhat that Just losing instance, question, parts of for were Northwest the in that curious feel period the stopped like also areas? you're some you during weaker more this mentioned COVID tickly Perhaps share perhaps to labor And these Midwest markets market and sort constraints? striking you anything of

our two, Yes, seems but us some that back in of been some so Larry a And everything arguably year outflanked COVID I yes, COVID of I have more Southeast but snapped on of won't had some pin things I is markets in in longer. certain think were your competitors Midwest its markets sort have or lockdown our say markets primarily because us challenges we've our question a the and for with about to share, intractable, hate I'd some they've like say bit think I Midwest, of quicker Jack. been, the of little faulted than perhaps to others. market The But little a markets. lately,

and into Some gone of taking their our therapy larger physical in historical own referral vertical sources practices. have

wouldn't pin one it wouldn't on thing, on I pin it So, COVID.

there's pretty six think thing able position. systemic it's that's to little be the that we COVID. of in gone will to more some not challenging a things say can I be our slog states. think a sort I'm do. But than Midwest nothing are have to just on those systemic there attention month and a I improve we'll But confident in due more

like get terms And referral some perhaps, you quarter, enroll But just of damage maybe headcount into very not the sound of it does permanently you wary it's is But impaired. and does, back. it's about Right. a referrals mentioned sort this does sort once hopefully, quarters last lose not to there there headcount guys of model, in referral, you're I'm a and maybe maybe hard impaired, now that behind. delay couple spoke it's you that

the in that just country? to So, areas severely of be -- could some impacted trying

yes, without a needs mean, come of grease it to good back doesn't, got fix we've what bit think elbow we and on I be done. So little a don't referrals

twofold. the it I need the do sure just the kind analogy is think clinics, bring and referring physician of to one view make refers staff appointment to of her we availability we've referrals use available, physicians we'll when a back referring that that when really got that on simple to or schedule. of referring, a that our needs correct our his patient what One of is to get fits that to it an

that's if and terms building But a is ask as you we're And kind in but I'll in model have back about back. where that we two in got and that's hate of XXXX. I for one also, the available referral certainly I to we to to to XXXX the repair, flow, both relationship and practice two out Ray model to a partner here going volumes punch -- So right, at minute during COVID we're did ourselves where the well of and like go will. talk like. the it's that in positioning And support. our implementing, you Ryan in the fields think of sort period, now capacity get as to and clinical I'll ask talk capacity. what And about And word are that use of

jump to first want the on that? you Ray, So part of

Sure.

we see more. to So, into more when we markets, don't specific down volume We level, about any think where staff. currently. we the volume more we more click When have across the platform capacity current capacity could need bandwidth staff have see have see markets go do specific with board, to at you another our and we

we're satisfy we're high actively demand that to hard where the we're markets, really We ensure clinics the and also hiring that seeing in to we the select have really, because working demand providers there. we right have have

about seen In of tremendous months terms three the it's about we've been consistent the staffing, excited and a about to over really over that and of months of and your we're some I mentioned that in week FTE earlier growth results past several week. ours the point changes focus seeing

traction the have ads also in and strong continue ensuring markets. I So mentioned proper the Jack staff, staff formal know that really exit, comments to but in of amount for his right the one every we of amount have we we two to right see

it's a focus of So ours. been

which And that, referral longer clinical offices it's building coming through one Jack, down we're that combination going do competence, we Salesforce do race because sources. around and we're most did no live doctors we but organization and a mind. for we really feel reduce did having COVID, confident conversations. the the Number the of with were take is And as point second I'll path the right we

really how combination we demand we're as to And the aggressively we sales and we've the years possible, but What XX the organization the our clinics the our it's this make is in been is to business model that we've of of And to we that and brand that that, with model a to but in clinics. we that a as built of the business from before, learned, want covered comes of how around care the generates in operators. sure that to manage some how expand operate out not type we local we've and continue that in that. those just which decisions two locally drive great, got and we also go so but levels. made it's scale the ATI, part provide right moving us of we've appropriately, and And that, we confidence. a coming back confidence business as really providers also name One local lot that is the as

those very ones doctors, into And And part new confident journey. we're a in, we that's so we're And bring introducing as new and those of we're just those. relationships. rebuilding the with

sequential maybe just mentioned hiring, retention consistently. mind? got off. around and fairly data you going, you've conversation now some referrals our in have and I visits provider me how that kept increased improvement Let would know little accounts they're sequentially Ray

Yes, sure.

three then out seeing markets providers But think really demand over seeing. in that's what of we've terms the we're both to about the week-over-week of the satisfy also QX, we the when of visits in day. referrals again, of over throughout we right mentioned earlier, at have. as growth well. out consistent growth as months the So, with we've in And that clinical counts seen of QX important. right to per coming we're providers that you in hand-in-hand, coming And seen growth, look the excited about amount have FTE we're I excited

growth growth in I in bent, so. But referrals, to broken, maybe not growth So would enough. count, broken, lead never but which FTE in not say business visits, fast

color. Yes. I Fair And all much. Fair so enough. that thanks appreciate enough.

bet. You you. Thank

Next question.

from your Sutherland. Bill We next have question

Your line is open.

the I Hey, disclosure. helpful. and Jack Hey, extra Joe. appreciate Very Ray, Thanks.

-- a split, on So some rural, there back urban others. to but better urban the than why markets split? trying Is rural not doing urban, out to are less figure

it way. think don't that I cleaves

Right. Okay.

little recover. But the Ray, slow give what But let little to to defines a what market maybe maybe to a color, me do you ask Ray think? be

in think and I we've a had seeing. vertical of markets time. mentioned they back, been a some about markets it's particularly is integration that the referral bit the we're where -- the It's earlier, side, of comes thing as mind of period my that Jack And to come the first for a challenge

still and those don't that physicians to doesn't want that still we're We we sure for resource we're right a them. solution sure a Now, we that with have on want make mean in anymore. relationships make call them. We great to location, the

a a patients, So think non-urban type and it when urban, own don't But provide setting. overall, to great comes there their of experience can't outcome. I we're they see to any great down

to I different hospital private different little market has the granular. think challenges I it's terms single So it a some it's more systems more every of, that's seeing. bit a little is bit outpatient and very therapy? that I every markets of nuance their probably there physical versus in mean, we're think and a

hard So it's to response. in put kind black of

Right.

the Field -- would be issue, takeaway, you be think? So this Sales other on others And referral retrenched that though, than do part the referral I -- of how may that more competitors? you broad that's guess that's

it say, Ryan of sales COVID, batten XXX actions to our deepest measured provider with we clinics during when down of with hatches out, to kind force, out in feel reduced brought keep we the our hard of team administrative they're as took already at with spending, -- as fewer of brought even and an the point who it's pointed income. they maybe plus we you sales labor keeping we I open our visits. We would team kind the And of I but counts could, many as go what can't tried temporarily do reduced really clinical doing. access with time that part

those all ready, recover, did could, when surgery. of when how play in not be run would undertaken exactly in would vaccine order knowing we things surgeries best we So, market a quickly the would to be the

think that. decisions I all the So we second made. we won't I did And guess

say who competitors were of starting all think there we unwind the the And perhaps when the at. catch of I back to point, in globally, of I up benefit we're think some off to slow spring. line playing that get starting off now. we're where started and got kind your a little COVID hindsight line were kind I to would

as you it think a in do for was you your quarter as third Do you think clinicians? guys -- what far the levels quarantine like And difference? the made

some into first big seen. pockets, is all Ray. played I don't we've had go minute small but things Pretty, COVID quarantine. -- sorry, know you scheme when that to treat, way our this the back as we of pretty very some compared about What to this We the was ability started. in to where things other pandemic it

So I don't of had a -- I wouldn't say an impact. really that that much

with CMS all beginning to OSHA that in we've combination might clinical to mind effect some regulations to COVID into X and -- as imagine protocols, day, now to got to keep teams. fairly we're our do strict up January go consider you day, businesses, early in But and know, what this come clinical so this operating masking we you will

we're of for Mark wrestling another So question that's with. sort

month November, as volume. VPD even same October in made out in we've quarter improvement think No, add in the impact as Hey steady the the trendline. some its COVID I'd quarter follows while certainly I with of month Joe? that see talked had look coming attrition, is Bill, trends the quarter progress at over And improvement throughout about and we of to as on sort right, then Ray and we that

that's I think certainly there's correlation a accidental. there not

of the Directors me. for one last the Jack is Board What Right. open thinking to point. CEO position? relative Good

day. all tell of them, slate a of that will every but organization least We we interesting speck of this we're We to a if really person weekly. a that to forward. may at there. there Well, sure going assess lead be think this I fair the as have roster, we my current they're Board have fraction it's the rights reviewed I comments, topic right a out wants -- And We've winner, and on working you, prepared you think Member make interviewed We them. can we think in the conversation candidates. said of

to already I on. during prepared sorry. I'm okay. that comments step It's you've your had away touched

certainly working. but road, Okay. the Yeah, nothing had we were to down report, we're

Good.

again. Thanks Okay.

Thank you. bet. You

Next question.

We Instructions] question from have Mike [Operator you. your with next Research. Barrington Thank Petusky

Your line is open.

Hi.

a FTE guide QX the revenue of all worse EBIT I the quarter of well the trying making adjusted wage to hiring that per that? guess just Thanks. and Is with comp point for a the per and some of you full and midpoint and What's labor implies sequential Can visits or sort reason I'm guide? negative the around year you're that positive sort and the referrals commentary may year that speak So you're the to at pressure? square conservatism? Is that wage, that of you reached in terms the visits the EBITDA clinics. hope have adjusted of

probably will -- is Joe this think I answer.

Hey, Mike, it's Joe. Yeah.

of end decline business So, to range, And things, a revenue range, it on the end side of the volumes. in the in volume. a your of at business point, at it's marginal improvement the high implies low the

So a to point, volume. marginal decline is your in business probably the midpoint

some looked IP referrals, of visits, KPIs, kind developed As of and we key clinical have were trends developed QX at IP that about visibility we remainder the we and of thought the we've the range with. year, a overall [ph], the at looked comfortable that

quarters And we we on range And projection. a situation came and two some Ryan bit, that's and about we're and wasn't too making we off, our investments the off get pay to until the with sources. that time in about, our Ray sales overall members referral sales, field talked did. investments us, out that those with why and we were in last some as for up it'll over little Jack pay for those yield bullish As talked get given see a prudent reconnect take to

month weeks are, but you the as or But into to so miss underlying read over that didn't view we you three, can adjusted you're earnings of our if you KPIs have intervening want where over you the two, optimistic about over couple go will. last down,

actually there's a dip sort Is the just increase that others Therapy seasonality, guys well? outpatient, where Company you any or there you think low likely show believe some Okay. Physical reason and other I follow comment, typically QX. in seasonality to most traded base a guys sequential given Can have publicly of you the as versus could QX

pine. be at I long a might Mike, think a range little to this Yeah.

could I up think heads full year, next XXXX. hold seasonality. one on probably, helpful. we're some then, to be the And give We the I'm our out a question. that that we full so down But you for information get forecast until if little reluctant that'd sort understand early one sharpening guidance year leak of picture, till great we

right. All Okay. guys. Thanks, Appreciate it.

the I'm showing time. conference turn no for Jack to like any now would further I questions closing at to Larsen remarks. back this Mr.

I remarks real us. closing is, only business. we're our do think in for for the follow Well, have you that seeing I continuing thank attention your positives to here. Thanks

kind things navigating I company came this the the in summer. rails that fixing the and direction, right over spring we're off of the think,

as got and we've dialogue will business loud forward. we move theme in our good continue this team we'll we And of confident second continue I we transparency after that a And earnings. quarter I'm on heard can the this do clear it. that think that fix to that. I

So, we'll you and talk soon. again thank much, so

and Ladies your for today's conference you gentlemen, concludes this call. participation. Thank

You may now disconnect.