ATI Physical Therapy (ATIP) 25 Feb 222021 Q4 Earnings call transcript

Good morning and welcome to ATI Physical Therapy Fourth Quarter 2021 Year End 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. [Operator Instructions] Please note this event is being recorded.

On the call today are Jack Larson, Executive Chairman; Joseph Jordan, Chief Financial Officer, Ray Wahl, Chief Operating Officer; and Joanne Fong, Senior Vice President, Treasurer & 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.

Lisa. you, Thank Good afternoon everyone.

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

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

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

Chief pass call clinics Joe happening on start, people. team for will beyond. finally, year that full a dedication. for of with more team our standing XXXX you I fourth on more Then, the interesting known could including thank have well put, quite a Officer. up in Joanne Joe comments over that the will our of through company the quarter move be And morning. high call presented our and markets, discussion I'll and Thanks to with we'll multiple for. Jordan, XXXX a operate outlook. Officer bit few course growth and quality as what's foundation the care joining business today the waves begin a then and Ray review of of XXXX staff. challenges a the public our our want and of all welcome and Operating throughout of members to underway as accomplished and hard our The and To and along bunch all financial With on to Wahl, and continuing XXXX, current our COVID, headed of Ray by is that detailed better working XXXX provide work Simply of I I'll this questions. with in to us results, in me staying for with we on our performance where set the Chief their to Financial is discussion your for the not our we're all to true patient delivering uncertainty take activities

First, our for approximately last you about we which much adjusted we will very our a achieved And $XX if from change do. into guided deep of best will that should to on do this you with we deliver to the absolutely year and generated quarters call. say read approximates during the our marks revenue end very we a sustaining to and be not, what commitment forthright stakeholders and our it. guidance in shared This our range earlier low we EBITDA, million

states. the and Southwest, This year, of our clinics the Southeast, XX new guidance. across on predominantly and our XXX total in clinics seven right The Open of XX new top clinic clinics, Northeast. acquired located added earlier For clinics brings we count consists clinics to XX

to two earnings be areas we're that last highlighted on. our in laser-focused Now, going call, I

things from and hiring fourth as our this members. X,XXX Ray to we've strong was points With the both to quarter done quarter. XXXX slightly basis retention going onboarding to XX% really of great increasing to by ahead and levels I'm us that stealing remain thunder, area in decline quarter nearly new the discuss XX% XXX end, fourth and the we have recruiting continues in happy annualized workforce and to turnover this clinical all report first to stabilize in decreasing and team staffing of just putting clinical XXXX. third without The the our his XXXX FTEs planned year of grow will in in

visit and the priorities. with order the already as review respective those out our several of sources visits. called field market-by-market be to of created strategy, completed and mostly of count and During identified our of of Equally our sales and coverage assessment revamped our their higher Since the completed gap the important, in filled several referral have have referrals past, we in conducting positions low areas remainder to present in more sales unacceptably then, last calling we've referral top a and those them realize first potential in in queued volume, sales We call new a I Northwest also gaps we've of levels need to Midwest bottom half sources. drive to based XXXX. teams

have to backing XXX participation full so development actively Our even Business I'm our ATI strategy to referral more as of expertise, I quality community patients about think clinicians on calls the of patient joint therapy up access relationship managers more while accelerate And it's leadership physical providers, relationship back absolutely to market focusing muscle to field needed health. the through mode in excited our their contact as return Development the referring their their with or again, Managers clinical outcomes. of ensuring build point building our continue main with serve getting and critical event of and up sources, the to of they right

clinical or Moving move should salespeople the quality XX to needle high or XXX the XXXX. so from in so growth leveraging leaders

promoter day Joe, selling have to opportunities, for recent volume we in point to it's While together say returned have on joint per our And early to section. I'd his –Omicron development and clinicians partners levels. visits more like this, innings in bringing weeks also remain and pre a X.X our our to Google to This the patients clinic leaders high, XXXX. score is of out teams. and set the in at net and of a very with continue credit full fourth rating star care quarter XX that metrics of our

operations, this review. well our recap details in the as a our Finally, our pursue on people growth foundation a increased will outlook morning, of to in Joe financial announced the financial to more refinancing This support agreement our structure more on we our as capital maturities our transaction leverage, financial continue extended reduced note, and invest provide this our and and credit provides strategies. strong XXXX liquidity. that

So with what's our in the going that clinics Ray, would you let what are? us and teams know on

I'd and seeing and good some highlights field. trends like moment for to we're spend Jack in operational Sure. the a fourth that quarter, the current detail providing more Thank you, in some environment as morning. well the

choice. the progressing. a significant collector, labor challenging compensation we not made most traction, review in from only and As we over I'm recent is excited most XXX adjustments but with opportunity visits. overall would FTE to our qualitatively consistent being about the various is the excited appreciating out our and XXXX fourth an individual think getting my some, hard district of What net how providers going discuss We're of of their the the I been examples to very of provider. made the market about in I'm of specifically. employer a hiring changes reaching the towards always say and roles heading market market results reminder, also work we're practices, we've business round This couple my seeing is alone. to And quarter consider has what I'm the last quarters, quantitatively model to really how great

conversations few going months comes about right that thoughts the So thinking path the individual over when past my my to solidify the it down we're first.

Omicron. on briefly touch let's So

the sales our into to strategy, impact January, continued also our Thankfully, which more throughout members to FTE period also attributable variants probably to in This clinical our like XXX on patients seen as to particularly Omicron team we're to last highest Data a same started Omicron the a Year. country color over Omicron’s into entered show decreased started Jack significantly. you've with the Well, some in accelerate their both in like led impact to day Northwest we the cases number from the in reasons parts Omicron mentioned providers softness, I'd little for collection that starting impacted volume in certain to. New of change during quarantine cancellations bit and had per up we to normalization time this our point. of Omicron February. two visits regarding on Southeast our period. the a see year. at the add see COVID of and weeks patients particularly December, As X% in

indicate call to referrals. more opportunity an last Our drive

To year While brought our XXXX, the X,XXX an operational pandemic. improvements to up, working clinical sales will in-clinic leadership perspective but active to adding coverage, support We develop the role investing a team not in additional further more play in platform hard provided been corridor development. we've relationship teams a believe where strategy, only a medical salesforce our things members, made of perspective, improve attrition can great sum community. overall the over through from team our from new we persevering integrated hiring In and another rent of and job down has done team structure. our

couldn't it where more of great about a and be are heading. where for and excited XXXX we're All sets we this foundation

Now a Joe review. over financial the I'd for turn like to to call

year thanks the million, million the you X.X% year-on-year. million, a quarter results, this Starting clinic cover quarter third sequentially from was decreasing on Net our review visits full and X.X% revenue XXXX. our per outlook. XXXX call million, $XXX while during I'll X.X% per XXXX increasing Ray. from the and everyone other with year-over-year revenue X.X% XXXX $XXX fourth increase was the operating refinance that I in quarter. was will And $XX.X, declining in the revenue of net quarter financial results. was $XX day quarter $XXX was the announced Thank touch patient Visits $XX.X fourth fourth year-over-year, today. morning debt for joining in

is $XXX.XX in from fourth lower to workforce the XXXX, XXXX shift operations was add holiday. Omicron $XX.X quarter stabilizing fourth the $XXX.XX per Visits visit scheduled third quarter quarter progress decreases the flat from targeting fourth a as paying the shifted the day level to COVID, sequentially disrupted to XXXX made appointments normal decline to softness we in utilization. and the capacity quarter, clinical to to clinic representing during X% increase in continue and commercial categories The primarily higher X% quarters quarter the respectively, and government. our the visit clinical $XX.X cancellations, in marginally third during and significantly XXXX year-on-year also of towards footprint to were $XXX.XX such per our when driven to also of December absences. quarter-over-quarter at was and than impacted XXXX. decreasing increased our quarter FTE. reimbursing was While in gradual We due in The typically volume per compensation mix fourth in decline were a increase variant rate lower and XXXX operation payers geographic Mix clinic as by with from and workers due continues broaden. as Rate by

$XX.XX productivity, day and fourth rates. from Finally, XXXX. the were in during of visit labor per quarter, increase the XXXX in physical of therapy as in million and fourth in QX the XXXX. the and $XX third XX.X% The QX was $X.X costs $XX.XX year-over-year of $XX.XX X% was salaries year-over-year Medicare compared to the X.X% costs $X.X XXXX of of for in and $XX reimbursement to quarter QX during per in Fee lower, each related per the PT increases from quarter million Salaries Physician per X.X% lower primarily XXXX XXXX. was rate clinical Visit was Schedule XXXX increasing an related than approximately FTE due visits cost sequentially quarter the quarter

from of was of of million, the the value lower use accounts $XX,XXX PT in and June, $XX in flat and fourth value and The simultaneously greater PT members, sales business we quarter volume. of in The about quarter of quarter impact the Operating mark-to-market Notable costs valuation markets million, in third clinic XXXX our end As from and with the XXXX XXXX, supplies, fourth considering and warrants contingent on X.X% has QX QX Rent, favorably of year-over-year to items revenue, as due was increases the the incurred Ray $XX was and quarter XXXX talked certain X% which increase XXXX, year-over-year XXXX. the $XX refreshed in fill the we resulting strategy omicron to for and labour work expense decrease is to from during million based below and of approximately consistent $X,XXX, XXXX. transaction shares in to increase line the were place of during regulatory in visits, XXXX select and included the clinic essentially in acquired sequentially that combination outstanding continued during contract, continue and XXXX while the was of labor referral the X.X% to offset from loss as given totaling clinical to $XX the costs year anticipation in at was rent spent $X non-ordinary respectively. primarily fair our of Jack wanes. $XX,XXX in open clinic optimization Interest quarter of compared XXXX. to in increased reduced during $XX team and other variant other income legal during of costs X.X% $XX million the liabilities was new XXXX. compared a team quarter, quarter specifically and fourth our million, debt seeking Provision the quarter to was X and marketing positions. prior common quarter the influx and by we at was increasing per train $X of in XX.X% quarter with for contract million of the connection as $XX,XXX maintained million. fair increasing analysis million, year. as compared expenses. of when and quarter Higher revenue, or support million as approximately structure year-over-year trend business of to fourth X.X% SG&A fourth doubtful

during $XX due million, We Net XXXX. prior which to on quarter also line. other to had was $X of fourth our income income benefit year. the million compared primarily quarter the quarter, $X services $X health of in the for was during home gain million the was tax million, million approximately Income quarter compared the the to $X in

Finally, guidance $XXX $XXX during year to revenue of $XXX full from million, million to and $XXX a X% increase compares million. the revenue million was year-over-year this

visit to day ships, year-over-year, While visits services. X%, mix states XX.X% declined and mostly per in increased per rate attributable unfavorable most payer

of there million in the an approximate reduction would that million approximately Physician mentioned, as expenses discussed. million our excluding costs, late Additionally, guidance from non-recurring one of at to as these in the the Jeff at $XX XXXX year-over-year Medicare EBITDA was $XX such been year Schedule full million, of previously XXXX. EBITDA X% in during range. adjusted approximates adjusted low-end Fee certain $XX decrease guided we've have QX Adjusted was EBITDA XXXX the time our midpoint $XX This

planned discuss to cancel share we booked expense COVID rising nationwide portion strategy, cases, our to our The for and decided each annual team when non-refundable gathers this collaborate. was December. of due in year to January, Specifically ideas leadership meeting

one-time to and Act. of quarter, fees our connection Ray used used Cash in earlier, fund Additionally, restructured and $XX the in down included during cost. activities. engaged allow with million, complete in million severance activities used both $XX more fourth operations, strategy that during $XX the operations Cash between which investing payments professional XXXX the firm million organization marketing sales in million broken Cares in used $XX was and million financing to used we a on and and incurring Jack consulting to refresh resulted marketing and touched quickly us sales $XX

XXXX, and revolver XX, our million, December revolver million drawn available and was $XX of million have which comprised we liquidity of zero available $XX $XX equivalents cash against in approximately and As capacity. in cash

into agreement debt stock. on issued a Jack Moving and refinanced term as the loan existing revolver off and entered We mentioned, first credit and preferred week. our refinancing, paid lien this new to our we

lien in revolving loan $XXX million Xst new credit XXXX. and new our in matures matures Our $XX facility XXXX million term

stock $XXX $XX our our in growth and The invest allow sheet extends cash with Additionally, million to operations enhances adding to scale us continue business. the of debt detachable our maturity balance warranty. to transaction support and approximately and we million preferred liquidity, in issued to

Looking of ramp the the throughout groundwork to of visits XXXX, in reignite to to ahead return term put we on range to continue $XXX the expect the end and XXXX. to roughly of revenue be to which XX.X%. and we as to the to with strategy year, providers. to referral over prior at place execute expect year a continuing to XXX We relationships million, sales connections million anticipate growth to build end quarters XXXX. year clinical referral the headcount of few grow steadily equates Accordingly, volume It'll long target levels take new at in pre-COVID to visit we set X.X%

higher rates, Peaky target increasing productivity and and Jack rates on fourth opted to and are and onset we the to Ray changes considers front outline. in to that XXXX full the federal to anticipated in budget schedule referrals as in in the we we place of We XXXX meantime have sales marketing adjusted we people in clinic ensure fee We've to compared labor as the clinicians hire XXXX, the X% to holding the advance act XXXX. depressed EBITDA incurring the continue be costs in visits. modeling capacity labor to quarter meet of physician reduction forecast sequestration. slight a For while and ramp This anticipate Medicare

quarter. profile may productivity we be will continues in our of generate expected visit throughout at million visits EBITDA be adjust existing anticipated volume. as year. XXXX XX,XXX the earnings per year, got the to range slow off uneven a to in with the leverage as of from steadily million expected and is costs with average clinics both better $XX $XX ramp improve impacting and for start increasing utilization ramp, business is Omicron to fixed to labor weather the quarter While on to Regardless, the progress that January to we day

volumes experiencing per are to nearly We XX,XXX day average. mid-February already ramping on increasing with visits

more trends current will aforementioned as incremental our has additional adding costs level into initiatives sales We to fixed an that as higher current X,XXX volume seasonal with and approximately to Keep initiatives clinics, our take clinicians absorb sales XXXX. clinic And throughout we believe drive mind, time follow visits brand of day earnings to month approximately million have growth level. – into hold EBITDA our in the to at staffing staffing per continue leverage. built our capacity to we intend volume yield per $X for

our As day labor visits guided and beyond accelerates, an there's outperform ability quicker, through adjusted EBITDA range. to roughly X,XXX level flow current results strategies generate and our growth align month. per staffing marginal sales million per per the is extent To X our referral

Finally, terms open expect new XX clinics growth approximately to of in in we XXXX. new plans, clinic

ramp markets. select Jack. Thanks, growth outsized clinics, With Joe. that, <> see call opportunities to in As back to we we also the to continue existing our I'd turn over like

work as long-term secular in the up. Before we remains story changes moving questions, the to be team we're industry But call was I'm open investments ATI we continues on. and entire answers. growth now for the to like growth, necessary our to once I'm thank to glad and the for ATI challenging their indeed to open again gain year. drive play made And positioned to Operator, questions ready a – share, well hard your I to the call efforts. for me, XXXX and for

of [Operator Steph Instructions] question with Wissink comes from first Jefferies. line Your the

morning, Good you. Thank everyone.

have questions. We two

– to detail related the is on model. of the first in business leverage kind gave your you The the

million course about per you a how capacity, I going on that, think forward you're the of potential your as you as incrementality X,XXX ability indicating understand visits think throughout day clinicians, existing you're but the I your go layer loads? should dollars current EBITDA your So month. leverage year? said in above per capacities, do about increasing the think to in based be about you you we How that labor

thank – you question. think the I for

additional I think over full current we margin job explaining – staffing only by Joe good level. there capacity, we component current our incremental its a labor using potential the get once but incremental EBITDA once did that also to get to available not our to

pick would So you Joe, up that?

thanks for Steph, question. the Hey, Yeah.

have with said just capacity on per time, to call, you're current million. about visits it about So actually what staff, I and know digesting the reiterate and X real through I we is flow that our X,XXX would day

we current our – absorb the Beyond we that, we have staff. capacity once once in

less. we a would costs, every more capacity, day As add account the clinicians take instance, into you the additional per labor of is obviously and slightly the million you additional through. create give contribution dollars flow that X,XXX when In visits about

to So and that former is that X,XXX about quoted ladder number the with re-highlight adjusted that number per three adding million labor, contemplating – visits of you capacity, just current but day the EBITDA.

Very it. Got helpful.

to you about of first realize Okay. us half I then year, little EBITDA that a more as bit – through pathway if recruitment half. to second want and don't year the sound as the the it semesters, the start strategies, labor just back your skip half help talk the depressed maybe benefits be you does half. in layer about But of know, in it the sequential labor. is And or talk over to first like going wanted a think to two and in you your I Then

you. So model help you year? kind Thank like EBITDA that cadence us through think to the for us flow of the how of best the

Yeah.

roughly, in but an decision temporary blip to make cost would is thought in So that be would labor just that. first to right because even and of a we've there retract a on hold add off to are adding there a would accelerate of advance the back where to take It expect will waiting. going because there's that impact in year, we a plan of certainly but that And knowing throughout Omicron the Omicron time may that XXXX those labor so of We Steph, windows few an particular, volume, hiring certainly and kind pace In initiatives we kicked hiring. sales labor even we're would labor we manifest to more knowing weren't and labor the had backup know that that lot on we going Not the be to quarter. take the half you're be weighing. more holding weighted.

Okay. just you to that force? similar feedback us Very as or helpful. going enjoyment to a you more I'm use feedback of your because Is actually are which customers? greater way a you your that loop you is do one that there a score create for your satisfaction, give NPS throw well, labor levels experiencing metric loop, have in do customer satisfaction have a alongside your metric, clinicians internal reinforces

is this Steph, Jack. Hey,

quarterly basis, begin to But sort of we of the on measure more all progress to do our intend and surveys of very to all objective measure So turnover the understand a that measures. we're support of one that, clinicians to certainly quarter more and to teams, subjective probably, going where foundation and of forward. pulse and then starting rate and attrition of build begin at that's of closely our and this our we all clinics

much. hear. Thank you That's so encouraging to

of line comes next Jason Citi. with from the Cassorla Your question

Good Thanks, morning here. Great. guys.

getting there way considerations consider a maybe pressure other between pre-pandemic the remaining currently, So impact of So towards of referral around then you and that pre-pandemic is call is to labor and of pre-pandemic But ready pressure your COVID it on end XX to terms visit X% baseline? year. labor and volumes of in dynamics. if at around the levels return differential the of visit just, the to and the implies that is volumes sources referral volume cover guidance the the XX%

ranch understand trying of if how the that about rest Just the think works, year? for the you to

Jack. the say, math by about went And performance, a fixed right. terms EBITDA large -- probably contribution This of we the through Yeah. feels cost in think the I marginal is organization. on Joe additional I'd are of visits. and that's directionally,

performance raise, extent get lot, one strong two per So extraordinarily to organization. the can a we day that per by visits or clinic, an we not as

would of difference, say, it's on sales our and focused related of strategy. most sales really we're the our that at the I something refresh is and So point, re-organization with this teams and volume

Okay. Thanks.

in the you of maybe So to next XQ, disclosure, my the you I I suggested to guess, on in headcount go annualized improvement, based I quarter, improved want that kind September. some to in the in XX% your just turnover from But back clinician turnover question saw here. XX% quarterly at what's that from up baseline I pressure maybe guess, XX% picked turnover, the maybe I September. just if suggest quarter. maybe full about help would But XX% And in guess sequentially so, correctly? for Am on incremental quarter? that thinking the that Thanks. causing out

Jason, Hey, Yeah. this is Ray.

mentioned time -- we going earlier, into lot that -- seem then the the they're of I them. comments, prepared issues that spent important year. in to of So they to to the the field, attrition making we out and they about, my back is definitely addressing improved, we're ensuring Like headed half as care want they especially -- a

think improve every month, our in. now, getting kind And I we because continues changes that's back it of in the to directly terms reflected so around of into of think And to July. to continue far made that we more in arms just those, changes which I on. Those that's improve. number, time encouraging focusing the into some taking step we're what in settle is seen we've that still It's So we're January February. and even numbers but

Okay, color. great. Thanks the for

from [Operator Your comes question CJS Instructions] the next line of Larry Securities. Solow,

morning. Hi. Good

XX or expectations significantly But pretty -- from more is much years? is being that figure changed for planned is but -- capital? can expected XXX-plus clinics, to looking I'm new so than too of decrease exactly the multi-years. XX trying X,XXX difficult, the function couple I that over able to from you environment hiring off know, bite initial chew? function for down of don't a just a to I’m substantially of that openings a not want that's it next the the your out Just on the Is questions, obviously, over you next outlook, not the expected. has openings a outlook and and

Hey, Jack. Larry, this is

right. You're

more and function the new plan would it's of the XXXX not a capabilities And it's in arguably of a opening think, I sales you, rebuild touting clinic our sales have, would in before. that perhaps we of filled our clinics I new keep mix whitespace a I tell more model is conservative than than the plant seeing additional strategy really wanting there our our on in really no absolutely some for is we the all. months, and focus a six commentary attrition in to out it's of check, of us on the sure expansion to what's we sales tell more they're conservatism -- a plenty little that's future in it at today, place, flags. to function make and build we've But but, don't been clinical the -- Our next new us I get out teams XX in you, of fill I XXXX, of to staking clinical important underwriting company while think markets. around not function it's like. out

-- I'm targets that -- I not -- potentially estimates or you do was you’re -- those ready in this but you they're that they they right? parameters were haven't was there, we're had mean maybe plan? figure to those commentary, trying no still a answer mean, But seek -- the aggressive gave, it’d you pie right? or that of those seem still question. do Right, you to given, general out. that were too changed, just still I I sky mean, are the

Joe. it’s Larry, Hey,

The answer future in changed. outlook opportunities market for not have direct the changed. no. materially The is, So not that the has exist the

normal. the think anything back term sales, in growing than more and demographics by geographies that course, in little Of away year I business the it bit short pairing point, year, But pie growth, else. that to will to while the to but isn't change term focus for little a we just focus that just us core it's exists. slowdown short marketing, on little taking Jack's the And its back still

regions makes for a to that to back just that some sense. another then some than the or levels. know, there any issues. maybe exceptionally more or XX%, that And areas and way, another question quick break of And are these way lastly, of between -- can will? maybe just you you sort labor areas volume is color pre-COVID versus level. on the know, just that facilities way to are that, up set of a labor worth, the for just, Is give the That you was follow you impact Could ask some – Okay. about previous COVID where below just out pre-COVID us or on

on Yeah, Ray. tour I'm to country Ray take a going the on to those, us ask for

Sure.

Right.

region. couple at are think pandemic. as at volumes So nearly about northeast, levels. a back coming performing do We And is Southwest we from the really have and we're pre-pandemic excited different look regions about and well. coming our The that back really, really portion

in terms market. we've there a quite exceeded have bit And levels momentum pre-pandemic of in of growth We our there. that

we we've Illinois as in had challenges in said the well. Market As Central and Northwest the some earlier,

continued on impact particularly last is quarter both obviously pre-pandemic our And, a also larger of lot. color. impacted COVID. market a know, here Q related that the And then levels. and But to grow, to we've by through talent, over strategy this down well. that to mentioned. bringing our Thanks levels on to the Great. - and on in sales you finally, Southeast some we're the also QX up working that that then appreciate as Some back in is we’re the of I staffing Southeast,

comes the question Bill with of from Benchmark. next line Sutherland Your

to at the you're that right that attrition range kind Thanks. the, be What back comfort question, now. the of, you in? the Good XX% is curious like everybody. I'm would morning, guys to

Yes, were I to out echo this want of in. we coming rate in to XX% higher I'll much start time the I'll a that average, we ask is the his for is Ray just obviously and equivalents. Jack. quarterly than maybe jump quarter starting full were the and comments

attrition rate, think our our there to circle the certainly clinical would in XX% ideal. demographics I We're but is we're yet tend you to just… not turnover And teams. going based I target You be, to know, to of first something have trending just XX% I a in normal think improve. know, terms of long-term the quarter, the in we think, range on continuing well, Ray,

that. Yeah, to goal realistic I have us. we don't think mid-XXs that I -- [indiscernible], of I add is for just would but don't I right I mean, a number think you're a like

don't that attrition know, return think environment. going You that. But to we're had to I rates pandemic, lower were the prior that than to we

for I healthcare well. that's that's other therapy, only think industries I and physical not possibly as think

said, programs. progress number. quarter-over-quarter. We're lot driving we've So, implemented a like towards that We're making of I different month-over-month,

we So as number that's we for, where looking an directionally we're employer. think should is the be

to PT? is, Okay. trying productivity implement And certain in the extender are the you situations just strategy improve an to one more question of labor

Yeah.

assume So you're you referring PTA. when regarding to to I'm say that -- extender, going

we when So about… think

yeah. – tax in right, All

care roughly a that terms not it? it You want the right in where it? but care, a getting quickly. ratio, getting get which X:X able have got they're are we got to of yes, only time, in we at now so care said about at them our model, right the ensuring right So, patients You the right we're PTA we – PT is

us. one budget our and build but we OSSs ratio directionally, we little visits finding that's right we're XX and the now around them Tax, bit we than call In XX:X, we're that day now, to think we a Rehab right where are us OSS per X:X regards right to I for where higher be. So, to that sit at want out will

to they can staff to when support the providers so comes do want where it what clinics, administering we're in do So, and right we to love patients. ancillary be the it having

we So, that good about feel number.

the on changed channel referral know the direct-to-consumer also resumed I channel terms strategy, Any from community. you then in emphasis -- or and the And go-to-market a has physician focus just primary as obviously direct-to-employer? it Great. of there's heavy is a

I'll channel on in Ray jump the primary ask start and to me Let on the side. direct-to-employer

where selected we me assure tools work was have on we better as -- was the but we've and than past. most think in have As we rather primary referral new hiring know as that the be new again, sources we better in sales that said. also by we with impactful we've terms not referrals, athletes we they rebuild it most more sources, you from successful done but channel, of can best on armed let a it people, We a on characterize as or be in we've and refresh, on only the make think calls, focusing data was rebuild refresh, the near their it existing priorities we not prior referral focused a far team, referral sales them far the may can

top So, of kind a that's redo. really bottom to

the direct-to-employer would and a very got Ray, on focused side, interesting lost one? we've on On that. have business also that you jump we not in

Sure.

it's So, plans of a service that companies call we healthcare different of line our line, employers, providing therapy direct-to-employer, floor where athletic geologists, that to to grow. there. what the and our assistants, we're lot a environment. continues physical part ensure There's service trainers, on AWS their is That providers, opportunity to of safe exercise

some [ph] helping terms in. is what primary very which partnering relationships, our them AWS in have their AkcMed specializes We with companies, care, interesting control of spend, service MSK lines also

to with a further other it, opportunity of mentioned. So, companies we some I as think on it focused our we've to going focus relationships we on always lot we're continue that and those there's of that

cash The trending the management? on I one for think we Okay. should strategy, how what cash last your or Thanks. and guess plans cash are about Joe, you, for

Hey, Bill.

million the about to cash a that sheet, items year unique $XX balance $XX this so We from structure high cash the cash clinics had and We we added neutral as sort half, at we total we out. flow going of exit in today That's burn beyond in teams imagine EBITDA of year. and closer have talked some transaction. of but beyond call, And there happen discrete on new $XX of CARES is that So, announced the XXXX, half There's XXXX. you still Act the will meaning repaying December, repeats the pretty security about in we our but Act roughly to last in million transaction our first perspective, had in That were be of Primarily refinancing dollars that that, a cash were can that a flow burn in will that runs piece year, more refinancing on XXXX. some cash CARES I last first there's of capital that that the we as year, run million burn. off. We of million. million heavy year. runoff about $XX-ish and getting to It that rebuild of positive a XXXX. in payment $X.X of

of So this plan terms that with comfortable expansion investment…? cash you you're for have required in the

that I front our yesterday, Yes. XXXX. liquidity growth. support the us think And and sheet us on we the move transactions foot that Yep, absolutely. yep, allows cash on certainly with invest bit the put while also give But the through in a to we close operations, that little balance get

color the guys. all for Thanks Okay.

Thank you.

question. Next

from with line Jefferies. comes Wissink of question next the Your Steph

talked just search. to in I CEO about your wanted prepared I it you ask the about remarks. don’t believe

of it's characterizations update update If company just you. on any forward appreciate the even this of or individual there. type to you're time? looking lead really at progress, So the Thank

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but quantifiably I'm coming I on guess, really today, lot particular we've That's future. this I saying the I all you end, I the I'm to in to candidates. I we near of and And point. thinking about give in that have our something to qualified zooming at with announce the to nothing -- down completion near think the timing to spoken near we're really here in I'm search. have Specifically, we're hope can offer on a

Very you much. helpful. so Thank

You bet.

Next question.

no at this there time. And further are questions

point thank said want to if your starting in your Well, Okay. as appreciate I is attention. questions, earlier, I the to I we you into I'm looking much. further XXXX. make and of you we are the And hope as with as those commitments time. all there we And go Thank no performance We for you working commitments so forward all the go. meeting our on keeping XXXX

conference. This concludes today's

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