AlerisLife Inc.

And welcome to the Alaris Live, Inc. third quarter 2022 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would like now to turn the conference over to Michael Kodesh, Director of Investor Relations. Please go ahead.

Thank you. Welcome to Alaris Light's third quarter 2022 conference call. The agenda for today's conference call includes a presentation by Jeff Lear, President and Chief Executive Officer, and Heather Pereira, Chief Financial Officer and Treasurer, followed by a question and answer session with research analysts. We'd like to note that the transcription, recording, or retransmission of today's conference call is strictly prohibited without the prior written consent of the company. Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on Alaris Life's present beliefs and expectations as of today, Thursday, November 3rd, 2022. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call, other than through filings with the Securities and Exchange Commission, or SEC, regarding this reporting period. Actual results may differ materially from those projected in any forward-looking statements. Additional information concerning factors that could cause those differences is contained in our filings with the SEC. Investors are cautioned not to place undue reliance upon any forward-looking statements. In addition, this call may contain non-GAAP numbers including EBITDA, adjusted EBITDA, adjusted net income, and adjusted earnings per share. Reconciliations of net income to these non-GAAP figures and the components to calculate them are available in our quarterly results news release or investor presentation, available on our website at alarislife.com. I will now turn the call over to Jeff.

Thanks, Michael. Good afternoon, everyone, and thank you for joining our third quarter conference call. In the third quarter, occupancy increased 180 basis points sequentially across our residential segments. which included a 290 basis point increase in our own portfolio and a 160 basis point increase in our managed communities. The growth in the third quarter was our largest occupancy increase in recent years. Further, we were pleased to outpace the senior housing industry as reported by NIC, which showed third quarter sequential occupancy growth of 100 basis points in primary and secondary markets. In addition to the strong occupancy growth, REV4 also experienced a quarter-for-quarter increase, resulting in REV4 growth of 9.4% in our own portfolio and 4% in our managed communities. These results are directly attributable to our short-term focus on operational improvement and occupancy growth across our residential segment, primarily through enhanced investment within our sales and marketing programs. This includes an overhaul of our sales incentive program, which better aligns our goals with those key personnel and mission critical sales functions. Additionally, based on Alvarez and Marcel's now concluded review of our operations, we have begun retooling our marketing strategy and established a centralized sales function to support the focus on sales and marketing efforts. These investments in sales and marketing delivered observable benefits as we increased occupancy by accelerating move-ins, improved tour-to-move-in conversion ratios, and shortened the closing process. Lead volume accelerated 9.3% this quarter from the sequential quarter and our conversion rate improved by 200 basis points over second quarter results. We appreciate the commitment and performance of our regional and corporate teams this quarter and expect continued execution on this front, which will position our company for long-term success. Over the past few months, we've made two key leadership hires to bolster these strategies and continue delivering improvement across our portfolio. In September, we hired Heather Pereira as Chief Financial Officer and Treasurer. Heather brings a wide array of accounting and management experience to Alaris Life, and I expect Heather to be instrumental in leading organizational transformation by optimizing the corporate infrastructure and maximizing efficiency. More recently, we significantly enhanced our depth of senior living industry expertise with the hiring of Phil Benjimson as Chief Operating Officer, who will oversee the execution of our operational recovery strategy. With these two hires, we now have fully assembled our leadership team. Turning to operating expenses, we expected third quarter expenses would be higher, mainly driven by widely reported inflation that affects every facet of our own community portfolio and corporate functions. In our own community, level operating expenses increased 12.9%, largely driven by wage utilities and food cost inflation. The near-term downside of increasing occupancy at our current pace often requires short-term contract labor to backfill care requirements. We remain immensely focused on driving a decrease in employee turnover and reducing open positions to reduce this need, as the moderation of contract labor will ultimately help offset the pace of wage inflation we are seeing across our business. This quarter, across our entire residential portfolio, employee turnover decreased slightly to 17.6%, and open positions fell by over 200 basis points to just over 11% by quarter end. As we focus on operational efficiencies and stabilize workforce to meet growth demands, we expect to see contract labor moderate in the fourth quarter and decline more substantially in 2023. Alvarez and Marcel's review helped identify other key opportunities for reducing not only labor costs, but also other key areas to produce expense efficiencies. Over the next couple of quarters, A&M's recommendations will continue to be rolled out, including incremental alignment of sales, marketing, clinical, and resident programming under a national operations support function, implementing labor opportunities both at the corporate level and within key functional areas of the communities we own and manage, and driving efficiencies in the food services we provide. Finally, I want to touch on our lifestyle services business, which gained one net new outpatient location in the quarter. Despite increasing caseloads as a percentage of occupancy, recent policy regarding government-assisted programs, such as the reduction of Medicare and Medicaid reimbursement, have put pressure on our ability to drive results at our legacy rehabilitation clinics. As we have mentioned in the past quarter conference calls, we are retooling our business to drive efficiencies and increase the profitability of the services we provide. This includes introducing a more scaled approach to the therapists and labor providing these services by utilizing our geographical network of communities and maximizing output from each therapist we employ. As a result, we expect the new structure will help reduce overall startup costs, drive increased utilization, and shorten the location stabilization period. To date, we have rolled out 11 of these networks and expect to continue growing our agility business in this regard. I will now turn it over to Heather Pereira, who will review our financial results for the quarter.