AdaptHealth Corp.

Greetings and welcome to the ADAPT Health first quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Joyce, General Counsel. Thank you, sir. You may begin.

I'd like to welcome everyone. to Adapt Health Corp.'s earnings conference call for the quarter ended March 31, 2021. Everyone should have received a copy of our earnings release earlier this morning. If not, I'd like to highlight that the earnings release as well as a supplemental slide presentation regarding Q1 2021 results is posted in the investor relations section of our website. In a moment, we'll have some prepared comments from Steve Griggs, Co-Chief Executive Officer, Josh Parnes, President, and Jason Clemens, Chief Financial Officer. We will then open the call for questions. Before we begin, I'd like to remind everyone that statements included in this conference call and in our earnings release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These statements include but are not limited to comments regarding our financial results for 2021 and beyond. Actual results could differ materially from those projected in forward-looking statements because of a number of risk factors and uncertainties which are discussed in our annual and quarterly SEC filings. ADAPT Health Corp. shall have no obligation to update the information provided on this call to reflect subsequent events. Additionally, on this morning's call, we'll reference certain financial measures such as EBITDA, adjusted EBITDA, and adjusted EBITDA less patient equipment CapEx, which are all non-GAAP financial measures. This morning's call is being recorded and a replay of the call will be available later today. I'm now pleased to introduce our Co-Chief Executive Officer, Steve Griggs.

Thank you, Chris, and thanks everyone for joining our call. Before we get to our prepared remarks, I'd like to start out by thanking our 9,331 employees across the country for their unwavering resilience in the face of the ongoing pandemic and their continued commitment to serving our patients. The past 15 months have been an extraordinary time for all healthcare providers, and I couldn't be prouder of how the ADAPT Health teams have met this challenge while remaining focused on our patients. These efforts have also been critical in helping our healthcare system partners and patients manage overwhelming healthcare demands. Additionally, our collective experience Through COVID confirms that our respiratory, diabetes, sleep, and home health equipment services are crucial to meeting the overall health care needs of the communities we serve. Before we get to the numbers, I'd like to discuss some of the highlights of the quarter. Despite the ongoing effects of the pandemic on certain product lines, we're very pleased with our organic growth rate of 11.5%. With the recent return of referral volumes in our sleep and hospital discharge business to pre-pandemic levels and current organic growth in diabetes and resupply, we feel confident that the balance of 2021 will meet our organic growth expectations. The integration of ADAPT Health and AeroCare organizations is proceeding quite well. As Josh will discuss in a moment, In particular, the alignment of our management teams and the speed at which we are adopting organizational best practices stand out as areas that have exceeded my expectations. We've made significant progress implementing each organization's strengths across the entire organization, and as a result, we are seeing improvements in important areas of the business, such as CPAP patient compliance, which will drive meaningful revenue and cost synergies in the future. We have completed five transactions since January 1, 2021, most recently acquiring Spiro Health, which closed last week. Spiro is a full-line HME company headquartered in Massachusetts and operating largely in New England, a market which we were previously underpenetrated. With the acquisition of Spiro, Adapt Health now has the premier HME provider in the New England market, a top-flight local management team, led by Gary Sheehan, and a platform to drive substantial organic growth across all ADAPT Health's product lines in that region. The acquisition of Spiro, like our February 2021 acquisition of Alina Health Systems HME business in Minnesota, reinforces our ability to expand our footprint in growing markets through strategic acquisitions of market-leading suppliers. The combined M&A teams of both ADAPT Health and AeroCare which executed more than 240 transactions continue to see opportunities to make strategic, accretive acquisitions. With this in mind, we recently worked with Regions Bank and our other lenders on a $300 million expansion of our senior secured credit facility. The expansion, which includes an increase in our revolving credit line to $450 million, allows us to execute on a robust M&A pipeline and take advantage of opportunities to expand our scale and geographic coverage across HME, diabetes and supply product lines. Going forward, our organization goals are simple. Grow organically, operate efficiently, acquire aggressively and intelligently. These principles are the legacy of ADAPT Health and ARO Care Growth's story. Now that we are one combined and powerful enterprise, I'm very excited to continue on this path and transform the HM industry that I've been part of for 33 years. And now I'll turn it over to Josh.