Akumin Inc.

Good morning. My name is Darren and I will be your conference operator today. At this time, I would like to welcome everyone to the Acumen Inc's 2022 Second Quarter Results Research Analyst Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, Please press star, then the number two. Thank you. Mr. Cameron, you may begin your conference.

Thank you. Good morning, everyone, and thank you for joining us for today's investor presentation. My name is Matt Cameron. I'm the Chief Legal Officer and Corporate Secretary of Acumen. Joining me on the call today are Riyad Zeen, our Chairman and CEO, and Bill Larkin, our Chief Financial Officer. There is a slide deck that is meant to accompany our presentation today. A copy of it is available to download from the investor relations section of our website at acumen.com. Before we begin, let me remind you that certain matters discussed in today's conference call or answers that may be given to questions asked would constitute forward-looking statements or information that are subject to risks or uncertainties relating to Acumen's future financial and business performance. Actual results could differ materially from those anticipated in these forward-looking statements. You should not place undue reliance on these statements, particularly on future financial performance. The risk factors that may affect results in these forward-looking statements are detailed in Acumen's periodic results and public disclosure. These documents can be accessed under a public disclosure at sec.gov and cdar.com. Acumen is under no obligation to update any forward-looking statements discussed today, and investors are cautioned not to place undue reliance on these statements. We may also refer to certain non-GAAP measures during this conference call, such as EBITDA, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP measures are not recognized measures under the United States generally accepted accounting principles and do not have standardized meanings prescribed by GAAP. We believe, in addition to GAAP measures, certain non-GAAP measures are used for investors for a variety of reasons, including we regularly use such measures to communicate with our board of directors, and that EBITDA and adjusted EBITDA are used as analytical indicators by us and the healthcare industry to assess business performance and their measures of leverage capacity and ability to service debt. EBITDA and adjusted EBITDA should not be considered in isolation or as alternatives to net income or loss cash flows generated by operating, investing, financing activities and other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity you can find additional information regarding these non-gap measures on slide two of our presentation which again is available on our website at acumen.com under the investor relations section and the reconciliation of ebitda and adjusted to ebitda to net loss the most comparable gap measure is included in that presentation as an appendix We have not provided a reconciliation for any forward-looking non-GAAP measure referred to in this presentation, as we would not be able to produce such a reconciliation without unreasonable efforts. With that, I'll turn things over to Riyad.

Thanks, Matt, and good morning, everyone. My name is Riyad Zein, and I'm the chairman and CEO of Acumen. Very happy to be able to speak to everyone today to discuss our Q2 results. As you know, we're now among the largest companies in the entire industry, delivering outpatient solutions in radiology and oncology to hospitals, physicians, and their patients. We also serve over a thousand hospitals and health systems, which is an important component of our growth strategy going forward, as hospitals continue to expand their outpatient capabilities. The new Acumen platform is exceptionally well positioned to capitalize on the growth trends in the industry. And this was evident in the Q2 results as we continue to see strong support from all of our partners, including hospitals, health systems, and physician groups. On slide three, you can see that in Q2, we saw positive same-store volume growth on a performer basis in our radiology business. However, total oncology patient start slightly declined due to the variation in patient starts from one quarter to another. Our MRI volume was up 2% in the quarter. Our PET CT volume was up 6.4%. Our total radiology procedures were up 4.5%. And like we said earlier, total oncology patients saw a slight decline of 1.4%. Q1 revenue of 192.1 million. was up 122.6 million or a 176.4% increase from only 69.5 million in the second quarter of last year. Obviously that was mainly due to the Alliance Healthcare Services acquisition, which was completed on September 1st, 2021. On a sequential basis though, revenue increased 5.8 million or 3.1% over the first quarter of 2022. Adjusted EBITDA, of 38.2 million was up 32.6 million or 212.7% increase from 12.2 million in the second quarter of last year. On a sequential basis, adjusted EBITDA increased 6.2 million or 19.4% over the first quarter of 2022. Adjusted EBITDA margin of 19.9% were up 2.6% sequentially from 17.3% in Q1. which was a function of organic growth and our integration efforts, which we expect will further benefit the company in future periods. In addition, building on our momentum in Q1, we generated net new hospital sales contracts in Q2, the results of which we expect will benefit the company in the second half of 2022 and beyond. On a consolidated basis, Accounts receivables at quarter end were 127.4 million or 60 days of sales outstanding, a slight decrease from Q1. These strong results were ahead of consensus estimates, notwithstanding the fact that our industry, like many others, is facing macroeconomic challenges such as cost inflation, labor shortages, and supply chain disruptions. As you know, we are also in the midst of a deep integration initiative that requires an extensive time and resource commitment throughout the organization. We made excellent strides on that front in Q2, and we are looking forward to seeing the benefits of these efforts in future periods. Slide four illustrates that while the Acumen platform offers a diverse suite of services, It's very focused on areas of high growth and high value add. Acumen is a clear leader in radiology. 55% of our radiology revenues come from MRI procedures. Acumen is also a significant player in cancer diagnosis and treatment with 24% of our radiology revenue from PET-CT and 18% of our total revenue coming from our oncology division. These modalities are critical to the delivery of quality patient care and are utilized by a variety of physician specialists, from screening, through diagnosis, through treatment. Acumen is clearly well positioned to benefit from the ongoing shift to outpatient service delivery. As you can see on slide five, over 95% of our revenues are derived from outpatient procedures. We have a balanced revenue mix between third-party payers for outpatient services and hospitals with no one customer, representing more than 4% of our consolidated performance revenues. As a preferred outpatient solution provider to hospitals, approximately half of our revenues come from our hospital customers, the balance of which is for reimbursement for patient procedures paid by third-party and government payers. Over time, we expect our revenue share with hospitals to continue to grow as existing and new hospital customers and partners search for outpatient solutions. I will now turn the call over to our CFO, Bill Larkin, to go over some of the operational and financial metrics.