Q2 2024 ATI Physical Therapy Inc Earnings Call
Speaker Change: Good afternoon and welcome to ATI Physical Therapy's second quarter 2024 earnings conference call and webcast.
Operator: 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, and if you would like to ask a question at that time, please press star 1 on your telephone keypad. Please note that this event is being recorded. On the call today is Sharon Vitti, Chief Executive Officer; Joseph Jordan, Chief Financial Officer; Chris Cox, Chief Operating Officer; and Joanne Fong, Senior Vice President, Treasury.
Operator: 224 Earnings conference call and webcasts. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions, and if you would like to ask a question at that time, please press star 1 on your telephone keypad.
Speaker Change: All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions, and if you would like to ask a question at that time, please press star one on your telephone keypad.
Operator: Please note that this event is being recorded.
Operator: On the call today is Sharon Vitti, Chief Executive; Joseph Jordan, Chief Financial Officer; Chris Cox, Chief Operating Officer; and Joanne Fong, Senior Vice President, Treasurer, and Head of Investor Relations.
Speaker Change: Please note that this event is being recorded.
Speaker Change: On the call today is Sharon Vitti, Chief Executive Officer, Joseph Jordan, Chief Financial Officer, Chris Cox, Chief Operating Officer, and Joanne Fong, Senior Vice President, Treasurer, and Head of Investor Relations.
Joanne Fong: I will now turn the call over to Ms. Fong. Please go ahead.
Joanne Fong: I will now turn the call over to Ms. Fong. Please go ahead.
Joanne Fong: Thank you, Sarah. Good afternoon, everyone, and thank you for joining us today.
Joanne Fong: Thank you, Sarah.
Joanne Fong: Good afternoon, everyone, and thank you for joining us today.
Joanne Fong: Before we begin, we'd like to remind you that certain statements made during this call are looking for statements that are subject to various risks and uncertainties and reflect our current expectations based on our beliefs, assumptions, and information currently available to us. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Descriptions of some of the factors that could cause atherosclerosis can be shared with these following statements in the comments of this factor section and a company filing with the Securities and Exchange Commission.
Joanne Fong: Before we begin, we'd like to welcome you to have served today and play for this call before meeting statements. There are subjects to various resumes, 30s, and reflect our current expectations based on our release assumptions and information currently available to us. All the week leaves, these expectations are reasonable; we undertake no obligation to revise any statements to reflect changes like her after this call.
Joanne Fong: Thank you, Sarah. Good afternoon, everyone, and thank you for joining us today. Before we begin, we'd like to remind you that certain statements made during this call before listing statements are subject to various risks and uncertainties, and reflect our current expectations based on our beliefs, assumptions, and information currently available to us.
Joanne Fong: Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Descriptions of some of the factors that could cause after-results of different materials would be forwarded to the Statements and Problems of this Factor section, and the company's filings with the Securities and Exchange Commission.
Joanne Fong: The discussions of some of the factors that's called after so that the commissioners will be for a few things from this satisfaction and a complete filing of this series in the range commission.
Joanne Fong: In addition, please note that the company will be discussing certain non-draft financial measures that we believe are important in evaluating performance. Details on the relationship between these non-GAAP measures to most comparable GAAP measures and reconciliation of historical non-GAAP financial measures can be found in the earnings press release that's posted on ATI's website and filed with the SEC.
Joanne Fong: In addition, please note that the company will be discussing certain non-gas financial measures that we believe are important in evaluating performance. Details on the relationships between these non-GAAP measures to most comfortable GAAP measures and reconciliation of the stock of non-GAAP financial measures can be found in the earnings press release that's posted on each edge website and found at C.C.
Joanne Fong: In addition, please note that the company will be discussing certain non-draft financial measures that we believe are important in evaluating performance.
Sharon Vitti: Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliation of historical non-GAAP financial measures can be found in the earnings press release that's posted on ATI's website and filed to SEC. And with that, I turn the call over to Sharon.
Joanne Fong: And with that, I turn the call over to Sharon. Thank you, Joanne.
Sharon Vitti: And that I turn to call over to Sharon.
Sharon Vitti: Thank you, Joanne. Welcome, everyone.
Sharon Vitti: Thank you, Joanne. Welcome, everyone. As mentioned, we have our Chris Cox and Joe Jordan and myself. We'll be speaking throughout the call, and then we also have our other ELT members on the call for the Q&A session. Earlier today, we reported our second quarter, 2024 results. Our teams continue to advance our national practice through and by our shared purpose of making every life an active life. Our providers and support staff and body outstanding teamwork across our platform to ensure that our patients receive high quality care. Earlier today, we also provided Q3 2024 financial guidance. On this call, we'll discuss our expectations for future performance that our efforts have to finish 2024 strong.
Sharon Vitti: As mentioned, Chris Cox and Joe Jordan and myself will be speaking throughout the call, and then we also have our other ELT members on the call for the Q&A session. Earlier today, we reported our second quarter 2024 results. Our teams continue to advance our national practice driven by our shared purpose of making every life an active life. Our providers and support staff embody outstanding teamwork across our platform to ensure that our patients receive high-quality care. Earlier today, we also provided Q3 2024 financial guidance. On this call, we'll discuss our expectations for future performance and our efforts to finish 2024 strong. So let's jump in.
Sharon Vitti: Thank you, Joanne. Welcome, everyone.
Sharon Vitti: As mentioned, we have our Chris Cox and Joe Jordan and myself will be speaking throughout the call and then we also have our other ELT members on the call for the Q&A session.
Speaker Change: Earlier today, we reported our second quarter 2024 results.
Sharon Vitti: Our teams continue to advance our national practice, driven by our shared purpose of making every life an active life.
Sharon Vitti: Our providers and support staff embody outstanding teamwork across our platform to ensure that our patients receive high-quality care.
Sharon Vitti: Earlier today we also provided Q3 2024 financial guidance. On this call we'll discuss our expectations for future performance and our efforts to finish 2024 strong.
Sharon Vitti: So let's jump in. Results per day increase by more than 9% year-over-year. Demand for ATI care was one of the levers that fueled our growth in Q2, 2024. We saw over 1,500 more patients visit each day compared to the prior year. So, clearly, our strategies are working. The focus of the year continues to be execution and expanding access to physical therapy, including in underserved areas. In the second quarter, our teams continue to increase the rate per visit year-over-year by taking action in the following areas. Sharing ATI patient outcomes and quality indicators with payers, improving front-end operations and revenue cycle management to efficiently collect payment for our services.
Sharon Vitti: Referrals per day increased by more than 9% year-over-year. Demand for ATI care was one of the levers that fueled our growth in Q2 2024. We saw over 1,500 more patient visits each day compared to the prior year. So clearly, our strategies are working.
Sharon Vitti: So let's jump in.
Sharon Vitti: Results per day increased by more than 9% year-over-year.
Sharon Vitti: Demand for ATI care was one of the levers that fueled our growth in Q2 2024. We saw over 1,500 more patient visits each day compared to the prior year. So clearly our strategies are working.
Sharon Vitti: The focus of the year continues to be execution and expanding access to physical therapy, including in underserved areas. In the second quarter, our teams continued to increase the rate per visit year over year by taking action in the following areas, such as sharing ATI patient outcomes and quality indicators with payers. Improving Front End Operations and Revenue Cycle Management to efficiently collect payment for our services, and our continued efforts to grow our workers' comp offerings by strengthening our relationship.
Sharon Vitti: The focus of the year continues to be execution and expanding access to physical therapy, including in underserved areas.
Sharon Vitti: In the second quarter our teams continue to increase the rate per visit year over year by taking action in the following areas.
Sharon Vitti: Sharing ATI patient outcomes and quality and operations and revenue cycle management to efficiently collect payment for our services.
Sharon Vitti: and our continued efforts to grow our workers' comp offerings by strengthening our relationships. There are a lot of macro-level headwinds that we're experiencing, but despite the ongoing imbalance in the physical therapy labor market, we successfully grew our ATI clinician head count by more than 4% year over year. We're proud of achieving Great Places to Work designation in May 2024 and recognize that change in culture takes time and vigilance. We're committed to the strategies that bolster retention and recruitment efforts, recognizing the pivotal role our clinicians play in ATI's continued growth and success. We're also proud of our clinician turnover rate for the second quarter at 21%, which is consistent with the market.
Sharon Vitti: and our continued efforts to grow our workers' comp offerings by strengthening our relationships.
Sharon Vitti: There are a lot of macro-level headwinds that we're experiencing, but despite the ongoing imbalance in the physical therapy labor market, we successfully grew our ATI clinician headcount by more than 4% year over year. We're proud of achieving the Great Places to Work designation in May 2024, and recognize that change in culture takes time and vigilance. We're committed to strategies that bolster retention and recruitment efforts, recognizing the pivotal role our clinicians play in ATI's continued growth and success.
Sharon Vitti: There are a lot of macro level headwinds that we're experiencing, but despite the ongoing imbalance in the physical therapy labor market, we successfully grew our ATI clinician headcount by more than 4% year over year.
Sharon Vitti: We're proud of achieving Great Places to Work designation in May 2024 and recognize that change in culture takes time and vigilance.
Sharon Vitti: We're committed to the strategies that bolster retention and recruitment efforts, recognizing the pivotal role our clinicians play in ATI's continued growth and success.
Sharon Vitti: We're also proud of our clinician turnover rate for the second quarter at 21%, which is consistent with the market. With strong demand and a more stabilized workforce, we continue to build upon learnings and refine our operations. Our clinics continue to be busier year over year, with visits per day per clinic growing approximately three visits over Q2 of last year. We still have some clinics with excess capacity, and we will work to add providers, increase access for patients, and leverage our real estate and fixed costs.
Speaker Change: We're also proud of our clinician turnover rate for the second quarter at 21%, which is consistent with the market.
Sharon Vitti: With strong demand and a more stabilized workforce, we continue to build upon learnings and refined our operations. Our clinics continue to be busier year over year, with visits per day per clinic growing approximately three visits over Q2 of last year. They'll have some clinics with the excess capacity, and we will work to add providers, increase access for patients, and leverage our real estate and fixed costs. In the quarter, we made progress to refine our clinic footprint and align with our patient community needs, including closing two clinics and digesting four clinics.
Speaker Change: With strong demand and a more stabilized workforce, we continue to build upon learnings and refine our operations.
Speaker Change: Our clinics continue to be busier year over year, with visits per day per clinic growing approximately three visits over Q2 of last year.
Speaker Change: We still have some clinics with excess and we will work to add providers, increase access for patients, and leverage our real estate and fixed costs.
Sharon Vitti: In the quarter, we made progress to refine our clinic footprint and align with our patient and community needs, including closing two clinics and merging four clinics. Chris will provide a detailed discussion around our operational performance and activities shortly. As you can see, the robust demand for ATI services combined with our business achievements is obvious in our financials, with revenue and adjusted EBITDA for the quarter showing strong year-over-year growth. We're committed to executing on our strategies and sustaining revenue and earnings performance in the upcoming quarters.
Speaker Change: In the quarter, we made progress to refine our clinic footprint and align with our patient and community needs, including closing two clinics and digesting four clinics.
Sharon Vitti: Chris will provide a detailed discussion around our operational performance and activity shortly. As you can see, the robust demand for ATI services combined with our business achievements is obviously in our financials with revenue and adjust to be put up for the quarter's strong meal over year growth. We're committed to executing on our strategies and sustaining revenue and earnings performance in the upcoming quarter.
Speaker Change: Chris will provide a detailed discussion around our operational performance and activities shortly.
Chris Cox: As you can see, the robust demand for ATI services, combined with our business achievements, is obvious in our financials, with revenue and adjusted EBITDA for the quarter showing strong year-over-year growth.
Chris Cox: We're committed to executing on our strategies and sustaining revenue and earnings performance in the upcoming quarters. Later in the call, Joe will provide a comprehensive overview of the Q2 financial results and discuss guidance for Q3 2024.
Sharon Vitti: Later in the call, Joe will provide a comprehensive overview of the Q2 financial results and discuss guidance for Q3 2024. I'm proud of the outstanding people we have at ATI and have tremendous gratitude for the dedication to enhancing the lives of our patients and their families. They clearly are the foundation of all of our achievements at ATI. I'm privileged to lead a fantastic care delivery organization that is leading and having a positive impact in the musculoskeletal ecosystem.
Sharon Vitti: Later in the call, Joe will provide a comprehensive overview of the Q2 financial results and discuss guidance for Q3 2024. I'm proud of the outstanding people we have at ATI and have tremendous gratitude for their dedication to enhancing the lives of our patients and their families. They clearly are the foundation of all of our achievements at ATI. I'm privileged to lead a fantastic care delivery organization that is leading and having a positive impact on the musculoskeletal ecosystem. With that, I will turn the call over to Chris to discuss the operation.
Joe: I'm proud of the outstanding people we have at ATI and have tremendous gratitude for the dedication to enhancing the lives of our patients and their families.
Joe: They clearly are the foundation of all of our achievements at ATI.
Joe: I'm privileged to lead a fantastic care delivery organization that is leading and having a positive impact in the musculoskeletal ecosystem.
Christopher Cox: With that, I will turn the call over to Chris to discuss operations. Thank you, Sharon, and good to talk to you all again. During the quarter, our operations teams continue to advance refining processes and enhancing the patient experience. Inspired by our team's dedication to our purpose of making every life an active life and excited about the ongoing advancement in our operating environment. In Q2, we continue to achieve year-over-year top-line growth, given driven by progress in several important areas. The success is a result of the efforts of both our clinical providers across our businesses and the multiple support teams whose collaborative efforts drove this growth.
Joe: With that, I will turn the call over to Chris to discuss operations.
Chris Cox: Thank you, Sharon, and good to talk to you all again. During the quarter, our operations teams continued to advance refining processes and enhancing the patient experience. Inspired by our team's dedication to our purpose of making every life an active life, and excited about the ongoing advancements in our operating environment, in Q2, we continued to achieve year-over-year top-line growth, driven by progress in several important areas.
Chris Cox: Thank You Sharon and good to talk to you all again. During the quarter our operations teams continue to advance refining processes and enhancing the patient experience.
Chris Cox: Inspired by our team's dedication to our purpose of making every life an active life and excited about the ongoing advancements in our operating environment.
Chris Cox: In Q2, we continue to achieve year-over-year top-line growth, driven by progress in several important areas.
Chris Cox: This success is a result of the efforts of both our clinical providers across our businesses and the multiple support teams whose collaborative efforts drove this growth. In the second quarter, clinician headcount grew more than 4% year-over-year, evidence that we are doing the right things for our providers and our patients, enabling us to achieve our purpose on an even larger scale. As Sharon mentioned, we capitalized on strong patient demand and saw over 1,500 additional visits each day compared to last year, with visits per day for clinics increasing by 2.7.
Chris Cox: This success is a result of the efforts of both our clinical providers across our businesses and the multiple support teams whose collaborative efforts drove this growth.
Christopher Cox: In the second quarter, clinicians had count through more than 4% year-of-review evidence that we are doing the right things for our providers and our patients, enabling us to achieve our purpose on an even larger scale. As Sharon mentioned, we capitalized on strong patient demand and saw over 1,500 additional visits each day compared to last year, with visits per day for clinics increasing by 2.7 visits. Additionally, our providers saw 0.1 more visits per clinical FTE per day compared to Q2 of last year. The success in expanding patient access to high-quality physical therapy remains the cornerstone of our achievements.
Chris Cox: In the second quarter, clinician headcount grew more than 4% year-over-year, evidence that we are doing the right things for our providers and our patients, enabling us to achieve our purpose on an even larger scale.
Chris Cox: As Sharon mentioned, we capitalized on strong patient demand and saw over 1,500 additional visits each day compared to last year, with visits per day for clinics increasing by 2.7 visits.
Chris Cox: Additionally, our providers saw 0.1 more visits per clinical FTE per day compared to Q2 of last year. The success in expanding patient access to high-quality physical therapy remains the cornerstone of our achievement. In the last call, I shared that Q1 marked the first full quarter of implementing our new centralized patient access management model across all of our clinics.
Sharon Vitti: Additionally, our providers saw 0.1 more visits per clinical FTE per day compared to Q2 of last year. The success in expanding patient access to high-quality physical therapy remains the cornerstone of our achievement.
Christopher Cox: In the last call, I share that Q1 marks the first full quarter of implementing our new centralized patient access management model across all of our clinics. In Q2, we saw continued improvement in our capture rate of partner provider referrals. As we gain more experience with this model, we will discover new ways to optimize and better meet demand. In fact, we have several process enhancements that will be launching for this team in the second half of the year. We remain focused on being an exceptional partner provider, creating a world-class patient onboarding experience and reducing the administrative burden on our clinicians.
Speaker Change: In the last call, I shared that Q1 marked the first full quarter of implementing our new centralized patient access management model across all of our clinics. In Q2, we saw continued improvements in our capture rate of partner provider referrals.
Chris Cox: In Q2, we saw continued improvement in our capture rate of partner-provider referrals. As we gain more experience with this model, we will discover new ways to optimize and better meet demand. And in fact, we have several process enhancements that we'll be launching for this team in the second half of the year. We remain focused on being an exceptional partner provider, creating a world-class patient onboarding experience, and reducing the administrative burden on our clinicians. In the quarter, our revenue rate per visit was $108.32, increasing 3.4% year over year.
Speaker Change: As we gain more experience with this model, we will discover new ways to optimize and better meet demand. And, in fact, we have several process enhancements that we'll be launching for this team in the second half of the year.
Speaker Change: We remain focused on being an exceptional partner provider, creating a world-class patient onboarding experience.
Speaker Change: and reducing the administrative burden on our clinicians.
Christopher Cox: In the quarter, our revenue rate per visit was $100.32, increasing 3.4% year over year. Continuing improvements in our revenue cycle management function were key contributors to this higher rate. As I've emphasized before, we are committed to leveraging technology and automation to advance this area, increasing clean claims submissions on the front end and collections on the back end, all at a low cost. This dynamic work continues to evolve, and we believe there is ample room for further advancement as we strive for besting class performance in our RCM function.
Speaker Change: In the quarter, our revenue rate per visit was $108.32, increasing 3.4% year-over-year.
Chris Cox: Continuing improvements in our revenue cycle management function were key contributors to this higher rate. As I've emphasized before, we are committed to leveraging technology and automation to advance this area, increasing clean claims submissions on the front end and collections on the back end, all at a lower cost. This dynamic work continues to evolve, and we believe there is ample room for further advancement as we strive for best-in-class performance in our RCM function.
Speaker Change: Continuing improvements in our revenue cycle management function were key contributors to this higher rate.
Speaker Change: As I've emphasized before, we are committed to leveraging technology and automation to advance this area, increasing clean claim submissions on the front end and collections on the back end, all at a lower cost.
Speaker Change: This dynamic work continues to evolve, and we believe there is ample room for further advancement as we strive for best-in-class performance in our RCM function.
Christopher Cox: In closing, I want to express my pride in our performance so far this year. I extend my heartfelt thanks to all our teams for their unwavering commitment and excellence. Their efforts empower ACI to make a positive impact on the lives of our patients and communities. And each time I'm in clinics visiting with our clinicians, our patients stop me to tell me what a tremendous impact they've had on their lives. As always, I'm excited about the opportunities that lie ahead and look forward to sharing more updates in our later calls this year.
Chris Cox: In closing, I want to express my pride in our performance so far this year. I extend my heartfelt thanks to all our teams for their unwavering commitment and dedication. Their efforts empower ATI to make a positive impact on the lives of our patients and communities. And each time I'm in clinics visiting with our clinicians, our patients stop me to tell me what a tremendous impact they've had on their lives. As always, I'm excited about the opportunities that lie ahead and look forward to sharing more updates in our later calls this year. Now I'd like to turn the call over to Joe to provide a discussion of financial results.
Speaker Change: In closing, I want to express my pride in our performance so far this year.
Speaker Change: I extend my heartfelt thanks to all our teams for their unwavering commitment and excellence.
Speaker Change: Their efforts empower ATI to make a positive impact on the lives of our patients and communities. And each time I'm in clinics visiting with our clinicians, our patients stop me to tell me what a tremendous impact they've had on their lives.
Speaker Change: As always, I'm excited about the opportunities that lie ahead and look forward to sharing more updates.
Joseph Jordan: Now, I'd like to turn the call over to Joe to provide a discussion of financial results. Thank you, Chris, and thanks to everyone for joining the call today. As Chris mentioned, I'll talk about our second quarter financial results. I'll also discuss third quarter guidance in further detail. Starting out with financial results, our net revenue in the second quarter was $188 million, which is a 9.2% increase over the prior year's revenue balance of $172 million. Breaking that down a little further, net patient revenue was $173 million, and that's a 10.1% increase year over year, while all their revenue was $15 million, which is essentially flat.
Speaker Change: in our later calls this year. Now, I'd like to turn the call over to Joe to provide a discussion of financial results.
Joseph Jordan: Thank you, Chris. And thanks, everyone, for joining the call today. As Chris mentioned, I'll talk about our second quarter financial results, and I'll also discuss third quarter guidance in further detail. Starting out with financial results, our net revenue in the second quarter was $188 million, which is a 9.2% increase over the prior year's revenue balance of $172 million. Breaking that down a little further, net patient revenue was $173 million, and that's a 10.1% increase year-over-year, while other revenue was $15 million, which is essentially flat.
Joe: Thank you, Chris. And thanks, everyone, for joining the call today. As Chris mentioned, I'll talk about our second quarter financial results. I'll also discuss third quarter guidance in further detail.
Joe: Starting out with financial results, our net revenue in the second quarter was $188 million, which is a 9.2% increase over the prior year's revenue balance of $172 million.
Joe: Breaking that down a little further, net patient revenue was $173 million, and that's a 10.1% increase year over year, while other revenue was $15 million, which is essentially flat.
Joseph Jordan: As Chris mentioned, our visits per day during the quarter per clinic increased by 2.7 to 28.4, versus 25.7 in the second quarter of the prior year. And it really reflects our continued efforts to improve clinic capacity utilization.
Joseph Jordan: As Chris mentioned, our visit per day during the quarter, per clinic, increased by 2.7 up to 28.4, versus 25.7 in the second quarter of the prior year, and it really reflects our continued efforts to improve clinic-capacity utilization. Our rate per visit during the quarter, as you heard, was $108.32, up from $104.74 in the second quarter of the prior year. The primary drivers of the higher rate were higher reimbursement rates with certain key payers, favorable rate adjustments driven by some of the operational improvements in RCM that Chris talked about, and favorable service mix changes. Salaries and related costs in the second quarter of 2024 were $103 million, which is a 7.6% increase year over year, and it's primarily due to more clinical and support staff, as well as wage inflation.
Joe: As Chris mentioned, our visits per day during the quarter per clinic increased by 2.7 up to 28.4.
Chris Cox: versus 25.7 in the second quarter of the prior year. And it really reflects our continued efforts to improve clinic capacity utilization.
Joseph Jordan: Our rate per visit during the quarter, as you heard, was $108.32, up from $104.74 in the second quarter of the prior year. The primary drivers of the higher rate were higher reimbursement rates with certain key payers, favorable rate adjustments driven by some of the operational improvements in RCM that Chris talked about, and favorable service mix changes. Salaries and related costs in the second quarter of 2024 were $103 million, which is a 7.6% increase year-over-year. This is primarily due to more clinical and support staff, as well as wage inflation.
Chris Cox: Our rate per visit during the quarter, as you heard, was $108.32, up from $104.74 in the second quarter of the prior year.
Speaker Change: The primary drivers of the higher rate were higher reimbursement rates with certain key payers, favorable rate adjustments driven by some of the operational improvements in RCM that Chris talked about, and favorable service mix changes.
Speaker Change: Salaries and related costs in the second quarter of 2024 were $103 million, which is a 7.6% increase year over year. It's primarily due to more clinical and support staff, as well as wage inflation.
Joseph Jordan: Looking at PT salaries and related costs per visit during the quarter, it was $56.22, which increased 2.6% year over year from $54.81. That increase in cost per visit was primarily due to wage inflation, but it was partially offset by higher labor productivity of 9.6 in Q2 of 2024, compared to 9.5 in Q2 of the prior year. Rent clinic supplies contract labor and other in the second quarter of 2024 was $53 million, which is a 5.4% increase from $50 million in Q2 of the prior year, and that's primarily driven by higher spending contract labor and outside services, partially offset by having less clinics compared to last year.
Joseph Jordan: Looking at PT salaries and related costs per visit during the quarter, it was $56.22, which increased 2.6% year-over-year from $54.81. That increase in cost per visit was primarily due to wage inflation, but it was partially offset by higher labor productivity of 9.6 in Q2 of 2024 compared to 9.5 in Q2 of the prior year. Rent, clinic supplies, contract, labor, and other costs in the second quarter of 2024 were $53 million, which is a 5.4% increase from $50 million in Q2 of the prior year.
Chris Cox: Looking at PT salaries and related cost per visit during the quarter, it was $56.22, which increased 2.6% year-over-year from $54.81.
Chris Cox: That increase in cost per visit was primarily due to wage inflation, but it was partially offset by higher labor productivity of 9.6 in Q2 of 2024 compared to 9.5 in Q2 of the prior year.
Chris Cox: Rent, clinic supplies, contract, labor, and other in the second quarter of 2024 was $53 million, which is a 5.4% increase.
Joseph Jordan: And that's primarily driven by higher spend on contract, labor, and outside services, partially offset by having fewer clinics compared to last year. On a per-clinic basis, these same costs were $59,000, which is an increase of 10% year over year from $54,000 in Q2 of the prior year.
Chris Cox: from $50 million in Q2 of the prior year and that's primarily driven by higher spend on contract labor and outside services, partially offset by having less clinics compared to last year.
Joseph Jordan: On a per clinic basis, these same costs were $59,000, which is an increase of 10% year over year from $54,000 in Q2 of the prior year. Previsioned for doubtful accounts during the quarter was $2 million, which is 1.4% of PT revenue, which compares to 1.5% of PT revenue in Q2 of last year and reflects continued strong collections. Moving down to STNA, it was $23 million on the quarter, which is a 36.9% decrease year over year from $37 million. The prior year included one-time debt and capital transaction cost that didn't recur in 2024. In addition to that, Q2 of 2024 had lower corporate insurance costs and higher legal reimbursements.
Chris Cox: On a per-clinic basis, these same costs were $59,000, which is an increase of 10% year-over-year from $54,000 in Q2 of the prior year.
Joseph Jordan: Provision for doubtful accounts during the quarter was $2 million, which is 1.4% of PT revenue, which compares to 1.5% of PT revenue in Q2 of last year and reflects continued strong collection. Moving down to STNA, it was $23 million in the quarter, which is a 36.9% decrease year-over-year from $37 million. The prior year included one-time debt and capital transaction costs that didn't recur in 2024.
Chris Cox: Provision for doubtful accounts during the quarter was two million dollars which is 1.4 percent of PT revenue which compares to 1.5 percent of PT revenue in Q2 of last year and reflects continued strong collections.
Chris Cox: Moving down to STNA, it was $23 million on the quarter, which is a 36.9% decrease year-over-year from $37 million.
Chris Cox: The prior year included one-time debt and capital transaction costs that didn't recur in 2024. And in addition to that, Q2 of 2024 had lower corporate insurance costs and higher legal reimbursements.
Joseph Jordan: And in addition to that, Q2 of 2024 had lower corporate insurance costs and higher legal reimbursement. We recorded a non-cash, long-lived asset impairment charge of $0.3 million during the quarter, which was due to impairment on certain leases, and our operating income was $7 million in Q2 of 2024, which increased year over year from a loss of $12 million in the prior year. It's really driven by higher earnings based on the higher visit volume and higher rate that Chris talked about earlier, and those earnings flowing through to the bottom line.
Joseph Jordan: We recorded a non-cash long-lived asset impairment charge of $0.3 million during the quarter, which was due to impairment on certain leases, and our operating income was $7 million in Q2 of 2024, which increased year over year from a loss of $12 million in the prior year. It's really driven by higher earnings based on the higher visit volume, higher rate that Chris talked about earlier, and those earnings flowing through to the bottom line. Notable below the line items during the quarter included income resulting from a decrease in fair value on our second link take notes, our contingent common shares, and our warrants totaling $6 million.
Chris Cox: We recorded a non-cash, long-lived asset impairment charge of .3 million dollars during the quarter, which was due to impairment on certain leases.
Chris Cox: And our operating income was $7 million in Q2 of 2024, which increased year over year from a loss of $12 million in the prior year. It's really driven by higher earnings based on the higher visit volume, higher rate that Chris talked about earlier, and those earnings flowing through to the bottom line.
Joseph Jordan: Notable below-the-line items during the quarter included income resulting from a decrease in fair value on our secondly picked notes, our contingent common shares, and our warrants, totaling $6 million. Those instruments are marked to market each quarter at the end of the quarter through evaluation and analysis.
Speaker Change: Notable below-the-line items during the quarter included income resulting from a decrease in fair value on our second link take notes, our contingent common shares, and our warrants totaling six million dollars. Those instruments are marked to market each quarter at the end of the quarter through evaluation analysis.
Joseph Jordan: Those instruments are marked to market at each quarter at the end of the quarter's revaluation analysis.
Joseph Jordan: Services. Interest expense rate in the quarter was $15 million, which decreased 10.7% over the prior year, and it's primarily due to lower outstanding principal balances when comparing to Q2 of last year, partially offset by lower interest rate hedge benefit. Income tax benefit for the quarter was zero, compared to income tax expense of 0.1 million in the second quarter of 2023, and net loss during the quarter was $3 million compared to a net loss of $22 million in the second quarter of last year. Adjusted EBITDA during Q2 was $17 million, which is an 8.8% margin, and that increased year-over-year from $9 million, which was a 5.4% margin.
Joseph Jordan: Interest expense during the quarter was $15 million, which decreased 10.7% over the prior year. This was primarily due to lower outstanding principal balances when compared to Q2 of last year, partially offset by lower interest rate hedge benefits. Income tax benefit for the quarter was zero, compared to income tax expense of $0.1 million in the second quarter of 2023.
Speaker Change: Interest expense during the quarter was $15 million, which decreased 10.7% over the prior year. And it's primarily due to lower outstanding principal balances when comparing to Q2 of last year, partially offset by lower interest rate hedge benefit.
Speaker Change: Income tax benefit for the quarter was zero compared to income tax expense of 0.1 million in the second quarter of 2023. And net loss during the quarter was three million dollars compared to a net loss of twenty two million dollars in the second quarter of last year.
Joseph Jordan: And the net loss during the quarter was $3 million compared to a net loss of $22 million in the second quarter of last year. Adjusted EBITDA during Q2 was $17 million, which is an 8.8% margin, and that increased year-over-year from $9 million, which was a 5.4% margin. And as mentioned, the year-over-year increase in adjusted EBITDA is also due to higher revenue and the associated earnings that come along with
Speaker Change: Adjusted EBITDA during Q2 was $17 million, which is an 8.8% margin, and that increased year-over-year from $9 million, which was a 5.4% margin.
Joseph Jordan: And, as mentioned, the year-over-year increase in adjusted EBITDA is also due to higher revenue and the associated earnings that come along with it. Our cash youth year-to-date was approximately $4 million, compared to $45 million last year. As I break that down further, within operating cash, we used $28 million compared to $5 last year, and the year-over-year increase was driven by higher accounts receivable on higher revenue, higher payout of incentives, and those two items are partially offset by a lower net loss. Cash youths and investing activities was $5 million compared to $10 million last year, and the decrease is primarily due to fewer clinic openings, and then cash generated from financing activities was $29 million in 2024, compared to cash youths of $30 million in the prior year.
Speaker Change: And as mentioned, the year-over-year increase in adjusted EBITDA is also due to higher revenue and the associated earnings that come along with it.
Joseph Jordan: Our cash use year-to-date was approximately $4 million compared to $45 million last year. As I break that down further, within operating cash, we used $28 million compared to five last year. The year-over-year increase was driven by higher accounts receivable on higher revenue, higher payout of incentives, and those two items are partially offset by a lower net loss. Cash use in investing activities was $5 million compared to $10 million last year. The decrease is primarily due to fewer clinic openings.
Speaker Change: Our cash use year-to-date was approximately $4 million compared to $45 million last year.
Speaker Change: As I break that down further, within operating cash, we used $28 million compared to five last year, and the year-over-year increase was driven by higher accounts receivable on higher revenue, higher payout of incentives, and those two items are partially offset by a lower net loss.
Speaker Change: Cash use in investing activities was $5 million compared to $10 million last year. The decrease is primarily due to fewer clinic openings.
Joseph Jordan: And then cash generated from financing activities was $29 million in 2024 compared to cash used of $30 million in the prior year. The increase in cash generated from financing activities is primarily due to two things: $25 million from the delayed draw term loan, which was fully drawn in January, and higher net revolver borrowing. As of June 30, 2024, our liquidity was approximately $33 million, which consisted of cash and cash equivalents, a portion of which resides in our joint venture cash account.
Speaker Change: And then cash generated from financing activities was $29 million in 2024 compared to cash used of $30 million in the prior year.
Joseph Jordan: The increase in cash generated from financing activities was primarily due to two things: $25 million from the delayed draw term loan, which was fully drawn in January, and higher net revolver borrowers. As of June 30th, 2024, liquidity was approximately $33 million, which consisted of cash and cash equivalents, a portion of which resides in our joint venture cash accounts.
Speaker Change: The increase in cash generated from financing activities is primarily due to two things, $25 million from the delayed draw term loan, which was fully drawn in January , and higher net revolver borrowings.
Speaker Change: As of June 30th, 2024, our liquidity was approximately $33 million, which consisted of cash and cash equivalents, a portion of which resides in our joint venture cash accounts.
Joseph Jordan: Now I'd like to share Q3 guidance. We anticipate revenue in Q3 to be in the range of 180 to 190 million. The midpoint of that range equates to about 4% growth over the prior year Q3, and we expect adjusted EBITW to be in the range of 9 to 14 million. The midpoint there represents 22% growth over the prior year, and an approximate 6% margin. Our guidance ultimately reflects the dynamics that we're seeing in the market, and the strategies we're employing to navigate and grow clinic volume, and advance clinic operations.
Joseph Jordan: And now I'd like to share Q3 guidance. We anticipate revenue in Q3 to be in the range of $180 to $190 million. The midpoint of that range equates to about 4% growth over the prior year Q3. Additionally, we expect Adjusted EVA to be in the range of $9 to $14 million. The midpoint there represents 22% growth over the prior year and an approximate 6% margin. Our guidance ultimately reflects the dynamics that we're seeing in the market and the strategies that we're employing to navigate and grow clinic volume and advanced clinic operations. I'll now turn the call back over to Sharon for her closing remarks. Thank you, Joe.
Speaker Change: And now I'd like to share Q3 guidance. We anticipate revenue in Q3 to be in the range of $180 to $190 million. The midpoint of that range equates to about 4% growth over the prior year Q3.
Speaker Change: And we expect Adjusted EVA to be in the range of $9 to $14 million. The midpoint there represents 22% growth over the prior year and an approximate 6% margin.
Speaker Change: Our guidance ultimately reflects the dynamics that we're seeing in the market and the strategies we're employing to navigate and grow clinic volume and advanced clinic operations.
Sharon Vitti: I'll now turn the call back over to Sharon for closing remarks. Thank you, Joe. Joe's pretty clear you can see our two results should progress, and that our strategies are coming to fruition, where you go to ride the momentum and continue advancing the business to benefit our stakeholders.
Speaker Change: I'll now turn the call back over to Sharon for closing remarks. Thank you, Joe.
Sharon Vitti: Thank you, Joe. So it's pretty clear you can see our Q2 results showed progress and that our strategies are coming to fruition. We're eager to ride the momentum and continue advancing the business to benefit our stakeholders. I remain confident in the people we have and the good work we're doing to stand out amongst the crowd and help people live healthier lives. That said, we have a lot to do to realize our full potential, and I know we have what it takes to get there. I look forward to sharing our progress next quarter, and I'll hand it back to the operator to open the call for Q&A.
Sharon Vitti: So it's pretty clear you can see our Q2 results showed progress and that our strategies are coming to fruition. We're eager to ride the momentum and continue advancing the business to benefit our stakeholders.
Sharon Vitti: I remain confident in the people we have and the good work we're doing to stand out amongst the crowds and help people live healthier lives. That said, we have a lot to complete to realize our full potential, and I know we have what it takes to get there.
Sharon Vitti: I remain confident in the people we have and the good work we're doing to stand out amongst the crowd and help people live healthier lives.
Sharon Vitti: That said, we have a lot to complete to realize our full potential, and I know we have what it takes to get there.
Sharon Vitti: I look forward to sharing our progress next quarter, and I'll hand it back to the operator to open the call for Q and I. Thank you.
Sharon Vitti: I look forward to sharing our progress next quarter and I'll hand it back to the operator to open the call for Q&A.
Operator: Thank you. If you have a question, please press star 1 on your telephone keypad. If you wish to withdraw your question, simply press star 1 again. Please ensure you are not on mute when called upon. Your first question comes from the line of Brian Tanquilut with Jeffreys. Your line is open.
Operator: If you have a question, please press star one on your telephone keypad. If you wish to withdraw your question, simply press star one again. Please ensure you're not on mute when called upon.
Speaker Change: Thank you. If you have a question, please press star 1 on your telephone keypad. If you wish to withdraw your question, simply press star 1 again. Please ensure you are not on mute when called upon.
Brian Tanquilut: And your first question comes from the line of Brian Tanquilut with Jeffries. Your line is open. Hey, good afternoon, guys. Congrats on the quarter. Maybe Sharon, as I think about rate growth, it looks pretty good, obviously. It sounds like you're getting some traction with payers here at Service Line.
Speaker Change: Your first question comes from the line of Brian Tanquilut with Jeffreys. Your line is open.
Brian Tanquilut: Hey, good afternoon guys. Congratulations on the quarter.
Sharon Vitti: Maybe, Sharon, as I think about rate growth, it looks pretty good, obviously. Like, it sounds like you're getting some traction with payers here and service lines. Just curious, you know, how much runway do you think there's left to drive rate growth? And what are the levers remaining for you to sustain this really good trajectory on rates?
Brian Tanquilut: Hey, good afternoon guys. Congrats on the quarter. Maybe, Sharon, as I think about rate growth, it looks pretty good, obviously. Like, it sounds like you're getting some traction with payers here and service lines. Just curious, you know, how much runway do you think there's left to drive rate growth?
Sharon Vitti: Just curious, how much runway do you think there's left to drive rate growth and what are the lovers remaining for you to sustain this really good trajectory and rate? Great question, Brian. Thank you for joining us. I think it's a tale of two cities. I think we continue to work with our payers. We have a good story. And certainly, some of the payers are responding favorably as they look at rates. I think the second piece is, while we've picked a low hanging fruit as it relates to Revenue Cycle, there are continued; we have a path to looking at other advancements that will continue to refine our Revenue Cycle, our cost to collect and our overall collection performance or decrease in bad debt.
Speaker Change: What are the levers remaining for you to sustain this really good trajectory and rate?
Sharon Vitti: Great question, Brian. Thank you for joining us. I think it's a tale of two cities. I think we should continue to work with our payers. We have a good story. And, you know, certainly some of the payers are responding favorably as they look at rates. I think the second piece is while we've, you know, we've picked the low hanging fruit as it relates to the revenue cycle, there are continued, we have a path to looking at other advancements that will continue to refine our revenue cycle, our cost to collect, and our overall collection performance or decrease in bad debt.
Sharon Vitti: Great question, Brian . Thank you for joining us. I think it's a, you know, it's a tale of two cities. I think we continue to work with our payers. We have a good story and, you know, certainly some of the payers are responding favorably as they look at rates.
Sharon Vitti: I think the second piece is, while we've, you know, we've picked the low-hanging fruit as it relates to revenue cycle, there are continued, we have a path to looking at other advancements that will continue to refine our revenue cycle, our cost-to-collect.
Sharon Vitti: and our overall collection performance or decrease in bad debt.
Sharon Vitti: On the other side of it, I think we are all looking to see what happens with Medicare. We have a sense of next year, but it really is the future years when we get out of this, you know, sort of this five-year plan to rationalize primary care. And I think CMS sets the tone for many commercial payers. So I think that's a very important piece. While we're, you know, the MIPS continues to be a positive for us to offset some of the Medicare cuts, I really think on the government side, Medicare will set the tone.
Sharon Vitti: On the other side of it, I think we are all looking to see what happens with Medicare. We have a sense of next year, but it really is the future years when we get out of this five-year plan to rationalize primary care, and I think CMS sets the tone for many of the commercial payers. So I think that's a very important piece. While the MIPS continues to be a positive for us to offset some of the Medicare cuts, I really think on the government side, Medicare will set the tone.
Sharon Vitti: On the other side of it, I think we are all looking to see what happens with Medicare.
Sharon Vitti: We have a sense of next year, but it really is the future years when we get out of this, you know, sort of this five-year plan to rationalize primary care. And I think CMS sets the tone for many of the commercial payers. So I think that's a very important piece.
Sharon Vitti: While we're, you know, the MIPS continues to be a positive for us to offset some of the Medicare cuts, I really think on the government side, Medicare will set the tone.
Sharon Vitti: That makes sense. I think about margins; obviously, rate is a factor there, but you've done a good job as well with the G&A line here. I know that recruiting is still tight here and there, so just curious, how are you thinking about the remaining margin opportunity here and maybe to narrow down further to the G&A line? I mean, that was a really good number for the quarter. How should we be thinking about G&A going forward? I think Brian and Joe. I think if you were sticking on the G&A line, we would expect G&A to stay relatively flat.
Joseph Jordan: That makes sense. Then maybe just as I think about margins, right? Obviously, rate is a factor there, but you've done a good job as well with the GNA line here. I know that recruiting is still tight here and there. So just curious, how are you thinking about, you know, the remaining margin opportunity here? And maybe to narrow it down further, too, just for the GNA line? I mean, that was a really good number for the quarter. How should we be thinking about GNA going forward?
Speaker Change: That makes sense. Then maybe just as I think about margins, right, obviously rate is a factor there, but you've done a good job as well with the GNA line here. I know that recruiting is still tight here and there, so just curious, how are you thinking about
Speaker Change: The remaining margin opportunity here, and maybe to narrow it down further too, just on the G&A line, I mean that was a really good number for the quarter. How should we be thinking about G&A going forward?
Joseph Jordan: I think, Brian, it's Joe. I think if you were sticking on the GNA line, I think we would expect G&A to stay relatively flat. We have an infrastructure built up to run the business. If we make substantial changes to the business in the future, obviously, that could change, but I think for now, you'd expect it to be pretty consistent. And then on the maybe more holistic margin, if I go all the way up the P&L to clinic operations, we're still focused on making sure that we're trying to make the clinicians' lives as easy as possible when it relates to non-clinic care type activities, so administrative work, so that they can really focus their time on patients and getting patients better, which is what they do best and what they're trained to do.
Speaker Change: I think, Brian , it's Joe, I think if you were sticking on the the GNA line
Sharon Vitti: We have an infrastructure built up to run the business. If we make substantial changes to the business and the future, obviously that could change. But I think for now you'd expect it to be pretty consistent.
Brian: I think we would accept.
Speaker Change: We expect G&A to stay relatively flat. We have an infrastructure built up to run the business. If we make substantial changes to the business in the future, obviously that could change, but I think for now you'd expect it to be pretty consistent.
Sharon Vitti: And then maybe more holistic margin if I go all the way up the P&L to clinic operations. We're still focused on making sure that we're trying to make the clinician's lives as easy as possible when it relates to non-clinic care type activity, so administrative work, so that they could really focus their time on patients and getting patients better, which is what they do best and what they're trained to do. But ultimately, if we do that right and make their lives easier, it could lead to better margins as well because they're able to see more patients, and we're able to take some of the burden off of them that they shouldn't really be doing.
Speaker Change: And then on the maybe more holistic margin, if I go all the way up the P&L to clinic operations, we're still focused on making sure that we're trying to make the clinicians' lives.
Speaker Change: as
Speaker Change: Easy as possible when it relates to none.
Speaker Change: clinic care type activities, so administrative work, so that they could really focus their time on
Joseph Jordan: But ultimately, if we do that right and make their lives easier, it could lead to better margins as well because they're able to see more patients, and we're able to take some of the burden off of them that they shouldn't really be doing.
Speaker Change: Patients and getting patients better, which is what they do best and what they're trained to do. But ultimately, if we do that right and make their lives easier, it could lead to better margins as well, because they're able to see more patients and we're able to take some of the burden off of them that they shouldn't really be doing.
Sharon Vitti: Yeah, and Brian, we continue to refine what we're doing on all levels. And so a big part of Chris's work is just operational excellence and how do we, you know, how do we make sure we're leveraging our assets as best as possible, including our expense base. So, I think there's more work.
Sharon Vitti: Yeah, and Brian, we continue to refine what we're doing on all levels. And so Chris held a big part of Chris's work, just operational excellence, and how do we make sure we're leveraging our assets as best as possible, including our expense base. So I think there's more work to do. There.
Brian: Yeah, and Brian , we continue to refine what we're doing on all levels, and so Chris, a big part of Chris's work, just operational excellence, and how do we, you know, how do we make sure we're leveraging our assets as best as possible, including our expense base.
Brian Tanquilut: Got it. Maybe one more question, if I may. Joe, as I think about the proposed rule, I know there's some language here on PT assistance. Anything we should know, or how are you interpreting some of the language that's embedded in the proposed rule?
Joseph Jordan: One more question, if I may. Joe, as I think about the proposed rule, I know there's some language here in PT assistance. Anything we should know, or how are you interpreting some of the language embedded in the proposed rule? Well, we have on PTA's, PTA's, we have right now reimbursement coming in at 85% of the PT's. Some of the commercial payers have adopted that as well. It's something that we've had to adopt our strategies to. PTAs are still an important part of our care model, and they will continue to be, but we obviously need to make some alterations as we move along.
Brian: So I think there's more work to be done.
Brian: Got it. And then maybe one more question, if I may. Joe, as I think about the proposed rule, I know there's some language here on PT assistance. Anything we should know, or how are you interpreting some of the language that's embedded in the proposed rule?
Joseph Jordan: On PTAs, we have right now reimbursement coming in at 85% of the PTs. Some of the commercial payers have adopted that as well. It's something that we've..., we've had to adjust our strategies to. PTAs are still an important part of our care model, and they will continue to be, but we obviously need to make some alterations as we move along.
Joe: Well we we have on PTAs, we have right now reimbursement coming in at 85% of the PTs. Some of the commercial payers have adopted that as well. It's something that we've
Speaker Change: We've had to adopt our strategies, too. PTAs are still an important part of our care model, and they will continue to be. But we obviously need to make some alterations as we move along.
Christopher Cox: Chris, do you want to add anything to that? No, I think Joe really hit the key headlines. I mean, we're monitoring the commercial payer environment to see if that is something that continues to be adopted. And then, as Joe said, we continue to believe in the PTA model and expect to continue to leverage PTAs as a big part of our team-based care. And we want to be smart about where we're deploying PTAs versus PTAs versus our clinic directors and making sure that each patient has the right care for them in a way that also helps to optimize our business.
Chris Cox: Chris, do you want to add anything to that?
Speaker Change: Chris, do you want to add anything to that?
Chris Cox: No, I think Joe really hit the key high points. I mean, you know, we're monitoring kind of the commercial payer environment to see if that is, you know, something that continues to be adopted. And then, as Joe said, we continue to believe in the PTA model and expect to continue to leverage PTAs as a big part of our team-based care. And we want to be smart about where we're deploying PTAs versus CTs versus our clinic directors and making sure that each patient has the right care for them in a way that also helps to optimize our business.
Chris Cox: No, I think Joe really hit the key high points. I mean, you know, we're monitoring kind of the commercial payer environment to see, you know,
Chris Cox: if that is, you know, something that continues to be adopted.
Chris Cox: And then, as Joe said, you know,
Speaker Change: We continue to believe in the PTA model and expect to continue to leverage PTAs as a big part of our team-based care. And we want to be smart about where we're deploying PTAs versus PTs versus our clinic directors and making sure that each patient has the right care for them in a way that also helps to optimize our business.
Sharon Vitti: Yeah, thank you. We continue to go more sophisticated on how we schedule and how we utilize the team-based care. Sorry, got it.
Chris Cox: We continue to get more sophisticated in how we schedule and how we utilize team-based care.
Speaker Change: I think we continue to get more sophisticated on how we schedule and how we utilize the team-based care.
Brian Tanquilut: All right, I got it. Thanks and congrats again. Thanks, Brian.
Brian Tanquilut: Thanks. You can grasp it. Thanks, Brian.
Speaker Change: All right, got it. Thanks, and congrats again.
Operator: This concludes the question-and-answer session.
Operator: This concludes the question and answer session. I will turn the call over to Sharon Vitti for closing remarks.
Brian: Thanks, Brian .
Operator: I will turn the call to Sharon V.D. for your time today. And we'll look forward to our next discussion in November with our Q3 quarterly earnings. Everyone have a great day.
Brian: This concludes the question and answer session. I will turn the call to Sharon Vitti for closing remarks.
Sharon Vitti: Thank you. Thanks, everyone, for your time today. We'll look forward to our next discussion in November with our Q3 quarterly earnings.
Sharon Vitti: Thank you. Thanks everyone for your time today.
Sharon Vitti: We'll look forward to our next discussion in November with our Q3 quarterly earnings.
Operator: This concludes today's conference call. We thank you for joining.
Operator: This concludes today's conference call. We thank you for joining us. You may now disconnect your line.
Speaker Change: Everyone have a great day.
Operator: You may now disconnect your line.
Speaker Change: This concludes today's conference call. We thank you for joining. You may now disconnect your lines.