Akumin Inc.

Please stand by. We're about to begin. Good morning. My name is Jennifer, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Acumen 2022 Year-End Financial 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'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you'd like to withdraw your question, please press star, then the number two on your telephone keypad. Thank you. Riyad Zain, you may begin your conference.

Thank you. Good morning, everyone, and thank you for joining us for today's presentation. My name is Riyad Zain, and I'm the Chairman and CEO of Acumen. I'm joined today by David Kretschmer, our Chief Financial Officer. I want to thank all of you for taking the time to join us on this call. In today's call, we will review the development at Acumen in 2022 and outline our strategy and initiatives for growth. Discuss some of the factors that impacted our results in the past year. Provide an overview of Acumen's Q4 and full year 2022 results. David will go over some of our key operating and financial metrics and discuss our guidance for 2023. I will conclude the presentation and then we will proceed to Q&A. There is a slide deck that is meant to go along with our presentation today. A copy of it is available for 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 could 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 and do 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 our 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, adjusted EBITDA margin. These non-GAAP measures are not recognized measures under U.S. generally accepted accounting principles and do not have a standardized meaning prescribed by GAAP. We believe in addition to GAAP measures, Certain non-GAAP measures are useful 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 our 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 cash flows generated by operating, investing, or financing activities, or 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-GAAP measures on slide 2 of our presentation, which is available in the investor relations section of our website. Reconciliation of EBITDA and adjusted 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-gap measure referred to in this presentation, as we would not be able to produce such a reconciliation without unreasonable efforts. As we review the developments in 2022, this is an important time to remind everyone of our vision at Acumen, which is to be the partner of choice for US hospitals and health systems. It's clear that hospitals and health systems are increasingly in need of outpatient solutions and capacity. Acumen is extremely well positioned to capitalize on these trends. which, as you know, was part of the strategic rationale for our acquisition of Alliance Healthcare Services in late 2021. Having successfully integrated the Alliance acquisition in 2022, we are already well on our way to achieving our vision. We serve over 1,100 hospitals and 23 of the 30 biggest health systems in the country are our customers today. Hostels represent almost 50% of our current revenues, and we expect this percentage to continue to grow significantly in the coming years. As you can see on slide four, outpatient service delivery is the core of our business. Over 95% of our revenues are outpatient. The shift to outpatient service delivery has been an important trend in our industry and will continue to accelerate. We recognize the significance of the shift to outpatient very early on, something that is just beginning to be fully understood and embraced in our industry. We currently operate a full suite of fixed site and mobile services which are available to hospitals and health systems. Our asset base is strategically located with dense coverage in key markets, making them well-suited to partner with hospitals in these regions. Importantly, we also leverage technology to provide clinical standardization and operational excellence, which enables us to deliver efficient and cost-effective outpatient solutions to hospitals and health systems while providing outstanding patient care and patient experience.

2022 was a busy year for Acumen.