AdaptHealth Corp.

The 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. I would now like to turn the call over to Chris Joyce, General Counsel. Thank you. You may begin.

Thank you, operator. I'd like to welcome everyone to today's ADAPT Health Corp conference call for the fourth quarter and full year ended December 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 Q4 and full year 2021 results, is posted on the investor relations section of our website. In a moment, we'll have some prepared remarks from Steve Griggs, Chief Executive Officer of Adapt Health, Josh Parnas, President of Adapt Health, and Jason Clemens, Chief Financial Officer of Adapt Health. We'll 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 press 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 at length in our annual and quarterly SEC filings. ADAPT Health Corps shall have no obligation to update the information provided on this call to reflect such subsequent events. Additionally, on this morning's call, we will reference certain financial measures, such as EBITDA, adjusted EBITDA, and adjusted EBITDA, less patient equipment capex, all of 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 Chief Executive Officer, Steve Griggs.

Thank you, Chris. I'm going to begin with a review of 2021 and then provide an outlook for 2022. For the past two years, the worldwide pandemic has directly impacted every part of our business. Despite this and the added stress caused by higher supply chain-related costs and the reduction in supply of CPAP devices, I am very proud to report our business has grown and prospered. Adapt Health more than doubled in size in 2021. as measured by a 102% increase in net revenue and a 99% increase in the justity of a dollar. We now provide needed and often life-saving equipment and supplies to approximately 3.8 million patients each year. Every day, more than 32,000 patients receive delivery of our products in order to live healthier lives in their homes. We now have 11,049 team members across 757 locations in 47 states. It is a testament to their hard work, resilience, and creativity that we're able to carry out our mission, and I thank them all for their continued dedication. ADAPT Health always strives to serve the needs of our patients and referral partners in spite of any short-term disruptions. The February 2021 merger with AeroCare was the most significant driver of our growth in 2021. By all metrics, including the achievement of projected synergies, this transaction has been a great success for Adapt Health. Aside from the financial improvements, we also brought together and enhanced both companies' best-in-class technology solutions. With the AeroCare merger and the 22 other acquisitions we did in 2021, we are now truly a national company, thereby enhancing our value proposition for managed care partners and referral sources. In addition, we also expanded our direct-to-consumer e-commerce operations in 2021. I think it's also worth noting how our capital structure evolved to fund these acquisitions and to begin to simplify our balance sheet. Since July 2021, we have raised $600 million in fixed rates to ventures. As rates have begun to rise, that transaction looks increasingly attractive in retrospect. Some of these proceeds were used to retire expensive debt that AdaptHealth had incurred as a private company with a balance used to make accretive acquisitions. The most significant challenge we faced in 2021 and continue to face was the June 2021 Philips PAP device recall and the resulting reduction in the supply of PAP machines, which has had a more negative effect on our business than originally contemplated. Unfortunately, Philips will be unable to provide new CPAP devices for longer than we originally anticipated, and other manufacturers have been unable to make up for the shortage. The demand for these products continues to be robust, but we were unable to fill the needs of all of our patients in the fourth quarter and are projecting a continued shortfall in devices through 2022. This shortage will end at some point, hopefully by the end of this year, and when it does, Adapt Health will be well-positioned to resume its historic organic growth. As these situations improve, we believe the actions we've taken and the investments we've made to ensure patients and referral sources are taken care of position us well to gain market share going forward. And now I'll pass the call over to our president, Josh Parnas.