AdaptHealth Corp.

Greetings. Welcome to the conference, Adapt Health Second 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. Please note this conference is being recorded. I will now turn the conference over to your host, Christopher Joyce, General Counsel. You may begin.

I'd like to welcome everyone to Adapt Health Corp.'s earnings conference call for the quarter ended June 30, 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 Q2 2021 results is posted on our investor relations page. In a moment, we'll have some prepared comments from Steve Griggs, CEO, Josh Parnes, President, and Jason Clemens, Chief Financial Officer. We will then open the call for questions. Before we start, 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 2020 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 will reference certain financial measures such as EBITDA and adjusted EBITDA and adjusted EBITDA less patient equipment capex which are 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 CEO, Steve Griggs.

Thank you, Chris, and thanks to everyone for joining our call. This week marks the first six months for the combination of ADAPT Health and AeroCare. Our original thesis has been confirmed. We are in a business with secular tailwinds since more and more health care is being delivered and monitored in the home. And we have proven that we can go both through acquisitions and organically. Accordingly, by combining our companies, we envisioned we would improve patient access, patient experience, and clinical outcomes. With this vision in mind, we continue to execute on our strategy of organic growth, improving operations, and closing accretive acquisitions. We do this by leveraging technology and workflow to improve our operations and have already achieved significant direct and indirect cost savings via purchasing volumes. In addition, six months into the combination, we've seen great progress towards our synergy plan, including consolidating 88 locations and implementing our digital logistics and RCM platforms. Our synergies activities are substantially complete. We remain confident in our previously communicated synergy target of 50 million annually and 30 million in 2021. On the sales front, we made strong progress reorganizing and focusing our combined 615-person sales force. As part of this reorganization, we have taken the best training, tools, and practices and applied them across the entire business. We believe through our sales efforts and the resupply engine, we will maintain an organic growth rate of 8% to 10% over an ever-increasing base. Most importantly, by combining our operational teams and leaders at all levels across the country, we believe that we will be more powerful than the sum of our parts in pursuing our mission to empower our patients to live their best lives out of the hospital and in the home. The success of our combined team is evidence in reaching our highest reported revenue and adjusted EBITDA margin for this quarter. So far in 2021, we have accelerated our acquisition pace. When we acquire a company, we not only evaluate the near-term and longer-term cash flow characteristics of the target, but equally, or more importantly, how it will fit into the ongoing organic growth profile of the company. An example of this is our Q2 acquisition of Spiro Healthcare in New England. Prior to the acquisition, neither AeroCare nor Adapt had significant operations in this geography. As a result, we expect to grow significantly in this region. In addition, we completed three more acquisitions in the second quarter, one being the acquisition of Healthy Living Medical Supply based in Michigan. We are very excited as we continue to expand our diabetes presence with this acquisition. Already in the third quarter, we have closed six more acquisitions, each one meeting our criteria for earnings and strengthening our strategic presence in existing regions. With these additions, we expanded our operations in Kentucky, Ohio, West Virginia, New Jersey, New York, South Carolina, and Florida. The second quarter started with broad COVID-19 vaccine access across the country and the reopening of our economy. The reopening was evident in the referral patterns of our hospital and health system partners as elective procedures came back and pent-up sleep study demand was met. However, the emergence of the Delta variant of COVID-19 has raised concern in our economy's overall recovery. We demonstrated our ability to respond since the beginning of COVID-19 pandemic, and we are confident in our ability to continue to respond as necessary. In addition, we generated $9 million of revenue in the second quarter from B2B sales, supporting our hospital and health system partners, and providing much-needed oxygen and ventilation equipment. Although we do not expect this revenue to be recurring, it continues to demonstrate the commitment of our workforce in serving the needs of our partners and patients. In summary, we are very proud that the past six months has validated the future that we envision for our patients, referral sources, employees, and shareholders. Now I'll turn it over to our president, Josh Carnes.