AdaptHealth Corp.

And welcome to ADAPT Health Third Quarter 2022 Financial Results Conference Call. At this time, all participants are in 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. You may begin.

Thank you, operator. I'd like to welcome everyone to today's ADAPT Health Corp conference call for the third quarter ended September 30, 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 Q3 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 Adapthealth, Josh Parnes, President of Adapthealth, and Jason Clemens, Chief Financial Officer of Adapthealth. 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 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 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'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 am now pleased to introduce our Chief Executive Officer, Steve Griggs.

Good morning, and thank you for joining our call. ADAPT Health is a full-service nationwide provider of products and services for our patients at home and in the community, empowering them to live their healthiest lives. I'd like to express my appreciation to our 11,033 employees, including more than 1,000 healthcare professionals who work daily to serve our 3.9 million patients. I'm very pleased that ADAPT Health today reported record net revenues of $756 million for the third quarter of 2022. Our performance reflects our revenue growth of 15.8% over the third quarter of 2021. with non-acquired growth of 6.1% for the same period. This reflects strong sequential improvement from the second quarter and supports our full year non-acquired growth expectation of approximately 4%. The highlights for the quarter were the much better than expected performance in our sleep business, continued strong growth in diabetes, and the increase in the supplies to the home. In our sleep category, We continue to regain the ground we had previously lost through the Phillips recall. During the third quarter, we had 34% more starts than in the first quarter of the year, resulting in a record number of setups for the company. In addition, our PAP census, also a record, has grown 27% over the lowest point in February 2022. The increased census bodes well for the future revenue as the patients continue to use their PAP machines and will need supplies on an ongoing basis. Our performance in PAP setups has continued in October, and based on supply and demand, we expect strong PAP setups to continue for the balance of the year. Our Q3 performance in PAP setups was driven by our ability to source more units. This allowed us to quickly ramp up our PAP setups to serve our patients, especially those who have been waiting. As a result, we have incurred some additional costs, especially in commissions and expedited delivery and setups. which pressures the bottom line, but will benefit us going forward as we believe that our efforts are resulting in a growth in our share of the sleep market. I'm also pleased to report that we resumed mid-teens growth in diabetes, and this reflects a notable increase from our second quarter growth rate. We continue to be confident in the sustained growth potential in diabetes, given the expanding acceptance of CGM as a critical component in managing diabetes and related comorbidities. And further, reflected in CMS's proposed expansion of coverage for CGM. Our supplies to the home product lines also outperformed expectations due to the commencement of an exclusive supply arrangement with a payer that we hope will lead to a broader value-based arrangement across more supply lines of business. These revenue increases give us confidence in the continued strength of our business and are a solid foundation to build upon to reach our 2025 net revenue target of $4 billion. While we are very pleased with our Q3 results and confident in the strength of Adapt Health's business heading into the fourth quarter and into next year, we are immune from the general inflationary pressures facing all healthcare providers today, and we continue to deal with disruptions to our supply chain from manufacturing delays and product recalls. In addition to the increased costs incurred to expedite PAP setups, The quarter's results were pressured by the unexpected recall of Phillips PAP mask related to deficient safety labeling in August. While we were able to quickly mitigate the recall's disruption, we did see a loss of PAP supply revenue in Q3 while those mitigation plans were gaining traction. In a few minutes, Jason will provide more color on our financial results. And I can say that we are pleased to see sequential improvement in our adjusted EBITDA margins for the third quarter. Although the improvement was not as much as we would have liked, I'm confident in the initiatives our team has in place for the fourth quarter will result in further improved margins. Finally, before I turn the call over to our president, Josh Parnas, I'd like to provide an update on the supply of PAPs as a result of the ongoing Phillips recall. As expected, our PAP partners have continued to expand their manufacturing capacity and beginning in August 2022, we saw our supply of PAP units begin to exceed pre-recall levels. This has allowed us to begin to work through our backlog of PAP patients impacted by the equipment shortages over the past 15 months. Assuming this level of supply for manufacturers continues past November, December, and current indications suggest that they will, we expect to substantially address our backlog in early 2023. Now I'd like to turn the call over to Josh to provide further details and an update on strategic developments.