AdaptHealth Corp.

Greetings and welcome to the ADAPT Health First Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer set to follow the formal presentation. If anyone should require operator assistance during the conference, please press star Z on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris. Thank you, Chris. You may begin.

Thank you, Operator. I'd like to welcome everyone to today's ADAPT Health conference call for the first quarter ended March 31, 2022. 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 2022 results is posted on the investor relations section of our website. In a moment, we'll have some prepared comments 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 2022 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 Corp. shall have no obligation to update the information provided on this call to reflect such subsequent events. Additionally, on this morning's call, we'll reference certain financial measures such as EBITDA, adjusted EBITDA, and free cash flow 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 Grix.

Thank you, Chris. Good morning, everyone, and thank you for joining us as we review our results for the quarter ended March 31st, 2022. We are very pleased with our strong start to 2022 and the excellent performance of our 10,910 employees. Our revenues of 706 million reflected an organic growth rate of 3.7%, which improved approximately 100 basis points from the fourth quarter of 2021. ADAPT Health's Q1 2022 results reflect the continued strong growth of our diabetes business as well as the resilience of our home medical equipment business, as we saw strong performance in our respiratory, ventilation, and home medical equipment operations. We were pleased by the improvement in our supply of CPAPs as the quarter progressed, and with the successful expansion of our patient setup capacity by our operations teams across the country, we saw patient setups in March at or near their 2021 levels. This momentum has continued in the current quarter as setups remain strong in April. While we hope our suppliers will be able to maintain this level of CPAP shipments consistently over the balance of the year, we are nonetheless pleased with how Q2 setups have continued to be strong. As with all health care providers, we are operating in an inflationary environment that includes continued workforce wage pressure, increased operating costs, and rising interest rates. While these factors impacted our margin in Q1, the execution of our technology transformation program should generate operating efficiencies to offset many of these expense pressures. On the debt front, more than 75% of ADAPTEL's indebtedness is either fixed rate or hedged, thus limiting the effect of recent interest rate increases. While we do not expect these pressures to abate in the near term, I'm confident that we can continue to deliver expected results while we manage through them, primarily through continued growth and technology improvements. My confidence was reinforced in April and May by the more than 1,000 ADAPT Health leaders I met over the course of 10 two-day sales and operation meetings held in nine cities across the United States. These meetings showed we are coordinated and committed to empowering our patients to to live their best lives at home. This collaboration amongst our teams from these meetings makes it clear to me that the unique strength of Adapt Health is our ability to deliver flexible, locally focused patient care, which leverages our efficiencies across our national platform. I believe our ability to deliver a wide range of home medical equipment to insured beneficiaries differentiates Adapt Health from other home health providers and will continue to drive our sales growth and operating efficiencies. We believe our core strengths position us well to take advantage of rapidly changing healthcare delivery models throughout the United States. Over the next five to 10 years, as government agencies and commercial payers turn to population health and outpatient home-centric care models, ADAPT helps broad home medical equipment and supplies offerings, and our ability to design custom delivery solutions will help to make us a partner of choice for those payers, healthcare systems, and physicians managing care for their patients. Our products, when properly monitored and used, generate important real-time data usable by our physicians and managed care partners to control costs and improve outcomes. As a national leader in sleep, respiratory, and diabetes, servicing 3.9 million patients annually, we are well-positioned to capitalize on the demographic growth in the expected U.S. population that is living longer and more actively than ever before. As we learned from the past two years navigating the COVID pandemic, these trends are also favorable for health care providers such as Adapt Health, who are critical in the management of chronic conditions and can deliver care to the home. I will now turn the call over to our president, Josh Parnas, to elaborate on our commitment to expanding our presence in outpatient and at-home services.