ATI Physical Therapy Stock Falls As Q3 Sales Trail Street View, Patient Volume Softens

ATI Physical Therapy ATIP reported preliminary Q3 revenue of approximately $159 million, well below the consensus of $170.42 million.
The company sees income before taxes of approximately $147 million and adjusted EBITDA of roughly $8 million.
Additionally, visit volume softened, resulting in 20,674 average visits per day during Q3 compared to 21,569 during Q2, or approximately one less Visit per Day per Clinic.
Previous guidance anticipated continued visit volume growth in Q3 and Q4 of 2021 compared to Q2.
For FY21, ATI projects revenue of $620 million - $630 million (prior range of $640 million - $670 million) versus the consensus of $652.72 million. Adjusted EBITDA of $40 million - $44 million, down from $60 million - $70 million expected earlier.
The further reduced guidance is due to lower-than-expected patient volume. ATI is maintaining guidance for 2021 new clinic openings, which are expected to be in the range of 55 to 65 clinics.
ATI reported $135 million of available liquidity as of September 30, 2021.
The company is currently completing quarterly financial and accounting procedures for Q3 and expects to record an impairment charge which could be material.
In August, ATI's CEO Labeed Diab stepped down. John Larsen has been named Executive Chairman and will take an active role.
Price Action: ATIP shares traded lower by 13.42% at $3.16 in premarket on the last check Wednesday.