BOLINGBROOK, Ill. - ATI Physical Therapy, Inc. (NYSE: ATIP), a prominent outpatient physical therapy provider with a market capitalization of just $7.11 million, has been notified by the New York Stock Exchange (NYSE) of its Class A common stock delisting. The suspension of trading occurred after the market closed on Monday, and the company's stock is set to start trading on the OTC Pink® Market. According to InvestingPro data, the stock has declined by 72.64% year-to-date, reflecting significant investor concerns.
The NYSE's decision to delist ATI's stock was based on the company not meeting the minimum average global market capitalization requirement of $15 million over a 30-day trading period, as stipulated by NYSE Rule 802.01B.
In parallel to this development, ATI announced ongoing discussions to secure interim financing aimed at providing liquidity to its common stockholders and potentially streamlining the company's capital structure. Chief Financial Officer Joe Jordan expressed that these discussions are in line with efforts to offer stockholders liquidity and pursue a simpler capital structure.
Despite the delisting, ATI expects no impact on its business operations, partnerships, employee relations, or SEC reporting obligations from the transition to the over-the-counter market. While CEO Sharon Vitti underscored the progress made in the past year to strengthen operating performance and grow the company, InvestingPro data shows revenue growth of 9.29% in the last twelve months, though the company remains unprofitable. Vitti affirmed confidence in ATI's strategic plan and continued investment in its workforce and patient care. For deeper insights into ATI's financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
ATI Physical Therapy operates over 850 locations across 24 states and offers a range of services, including prevention and treatment of musculoskeletal pain and online physical therapy through its CONNECT™ platform.
Investors are advised that this information is based on a press release statement and to consider the inherent risks and uncertainties of forward-looking statements. The company's forward-looking statements are not guarantees of future performance and are subject to various factors that could cause actual results to differ materially from those projected.
In other recent news, ATI Physical Therapy, a leading outpatient rehabilitation services provider, has reported a 7.1% increase in net revenue to $190 million in its Q3 2024 earnings call, up from $177 million the previous year. The company's adjusted EBITDA also improved to $12 million, an increase from $9 million in Q3 2023. Despite labor market challenges, the company managed to expand its clinician headcount by 3% and maintained a high patient satisfaction rating.
In terms of future projections, Q4 2024 revenue is expected to range between $182 million and $192 million, with adjusted EBITDA between $9 million and $14 million. The company is also actively engaging with payers to improve reimbursement rates, anticipating Medicare cuts in 2025. However, wage inflation remains a concern for the company, with low to mid-single digit increases expected year-over-year.
On a positive note, cash used in investing activities decreased to $9 million from $15 million due to fewer new clinic openings. The company also generated $27 million in financing cash, a significant improvement from the $31 million used the previous year. Despite these developments, ATI Physical Therapy closed eight clinics and divested one as part of its strategic real estate plan.
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