AdaptHealth Corp.

Ladies and gentlemen, thank you for joining us this morning for the ADAPT Health fourth quarter earnings call. At this time, I would like to introduce Mr. Chris Joyce, General Counsel.

Thank you, operator. I'd like to welcome everyone to today's ADAPT Health Corp conference call for the full year ended December 31, 2022. Everyone should have received a copy of our earnings release yesterday evening. If not, I'd like to highlight that the earnings release as well as supplemental slide presentation regarding full year 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 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'm now pleased to introduce our Chief Executive Officer, Steve Griggs.

Thank you, Chris. Good morning, and thank you for joining our call. ADAPT Health is a full-service nationwide provider of products and services for patients at home and in the community, empowering them to live their healthiest lives. I'd like to express my appreciation to our 10,931 employees operating in 726 locations in 47 states, including more than 1,000 healthcare professionals who work daily to serve Adapt Health's more than 3.9 million patients. 2022 was a crucial year in the development of Adapt Health, setting us up for a successful 2023 and staying on track to achieve our longer-term goals. Most important, Adapt Health continued to grow its revenue and customer base in 2022, even in the face of supply chain and labor cost issues. Driving this growth was our ability to source and deliver CPAP devices to satisfy the demand that is built up as a result of the Phillips recall. These efforts, including extra labor and other extraordinary costs, contributed to the decline in our 2022 gross margin. But we intentionally incurred those costs as part of our plan to increase market share through the accelerated pace of patient setups. It is important here to note that the vast majority of ADAPTS revenue is recurring. particularly in our sleep, respiratory, and supplies lines. Once we set up a new patient on one of our devices, we have a reasonable expectation of significant ongoing revenue, initially through the rental, if applicable, and then with ongoing supplies. Therefore, one of our key metrics is census, the number of people we serve in each product line. As a result of this acceleration of setups, our census of PAP device patients has hit record levels. These past census figures are a key focus for our operators as they convert to recurring resupply orders. Accordingly, our resupply census is also at record levels. Adapt Health has built a national scale that is unmatched in the industry and invested in infrastructure throughout the organization to support attractive long-term growth opportunities in our immediate markets while we continue to make upgrades to our talent. This work included the complete overhaul and integration of our accounting and finance infrastructure, featuring our enterprise-wide Oracle implementation, which began in February 2022, as we continued our efforts to improve our internal controls over our financial reporting. As a result of these infrastructure improvements throughout our operations and revenue cycle management, we achieved a record of $374 million of cash flow from operations. During 2023, we will continue to make investments to drive improvements. During 2022, we also took the first steps in our journey towards building ADAPT 2.0, which Josh will discuss in greater detail. We know that HME suppliers are crucial in the healthcare continuum, especially for post-acute and chronic disease management. Most of our devices are connected and generate actionable data to help manage chronic conditions and reduce downstream cost. ADAPT 2.0 reflects our commitment to continue to facilitate that connectivity for the benefit of our patients and payers. In conclusion, I have great confidence we are entering this year from a position of strength. Based on significant progress across a number of important strategic initiatives, we expect to drive increased shareholder value going forward and we believe our updated guidance for 2023 fully considers and addresses any 2022 headwinds expected to continue throughout this year. Our management team remains focused and confident in achieving the 2025 goals we shared at Capital Markets Day in September, namely to generate $4 billion in revenue, $1 billion in adjusted EBITDA, and free cash flow of $300 million. Now, I would like to turn the call over to our president, Josh Parnas, to provide further details and an update on strategic developments.