American Oncology Network, Inc.

Good morning, and welcome to American Oncology Network's third quarter 2023 earnings conference call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Dave Gold, Chief Financial Officer at Aon. Thank you. You may begin.

Good morning, everyone, and thank you for joining us to discuss American Oncology Network's third quarter year-to-date results. Before we begin, we would like to remind you that this conference call may include forward-looking statements. These statements, which are subject to various risks, uncertainties, and assumptions, could cause our actual results to differ materially from these statements. These risks, uncertainties, and assumptions are detailed in this morning's press release, as well as our filings with the SEC, which can be found on our website at investors.aontology.com. We undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, we will also reference certain non-GAAP financial information, such as adjusted EBITDA and adjusted net income, which are derived from their closest GAAP measure, net income. We use these non-GAAP measures as we believe they supplement GAAP measures, and we believe they are useful to our investors. The presentation of this non-GAAP information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Reconciliations of GAAP to non-GAAP measures can be found in this morning's press release and in our SEC filings. Joining me on the call today is our CEO, Tash Honors. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Todd.

Thank you, Dave. Good morning, everyone. Thank you for joining us on our first earnings call as a publicly traded company. We are happy to report strong third quarter results, and I look forward to telling you more about our company, our unique strategy, and our value proposition. To begin, while our public listing in September was a very exciting milestone, it was just one important step in Aon's journey. Since our inception in 2018, our mission has been to bring a unique and differentiated approach to oncology by providing the highest quality, cost-effective care within the communities where our patients live and work each and every day. And that mission continues to drive us forward. Our North Star remains creating an optimal experience and outcomes for our patients who are often going through the most challenging times in their lives. Before I get into our operational developments and performance, I want to take a moment to share more color on the market we operate in and why it drives our mission. Oncology care is a large and growing market that is estimated to be well above 200 billion in the United States, but one that is also very fragmented and inefficient. Cancer care is complex and expensive and makes up a significant portion of total healthcare spend in the U.S. every day. As a result, there is increasing demand for oncology services driven by many macro factors like an aging population, earlier detection, and cancer becoming more of a chronic condition versus a terminal illness. These factors are further compounded by the pressure placed on providers today for increased complexity created by an explosion of new drugs and new indications, reimbursement headwinds, and demand for personalized medicine. And on top of that, we are currently facing a shortage of oncologists, which is only expected to worsen in the coming years. To that end, most oncology groups are still fairly small when measured by number of providers or number of sites. And while a large number of practices have closed or sold off to hospitals, we do not believe that hospitals are the answer as they are often not physician-friendly and increase the overall cost of care. With this consolidation pressure, small practices will need to make a choice about their future. Our model ensures that practices that are located in markets with a significant number of colleges remain competitive, and markets with limited capacity remain viable for the long term. AON is the lifeline to preserve and enhance community oncology by ensuring practices have a solution to remain in the community and the resources to provide access to needed care. Turning to our business model, We are building one of the largest and fastest-growing community oncology practice networks in the United States, helping to deliver high-quality, cost-effective cancer care all across the country. Since our inception, we have done things differently to disrupt the existing community oncology landscape in a cost-effective and scalable way. The platform we've built is unique in that we operate a true national physician network that provides a number of novel advantages to patients and providers through our integrated care platform. Our key differentiators include our integrated in-house services like specialty pharmacy and lab, as well as our centralized operations and technology platform, which drive better practice economics, reduce administrative burden, and allow physicians to focus on what is most important, delivering high-quality patient care. We've demonstrated our highly successful growth strategy by growing the business from $0 of revenue in 2018 to $1.2 billion on an LTM basis. Today, we partner with over 200 providers across 77 sites of service spanning 19 states plus the District of Columbia to ensure the delivery of high-quality, cutting-edge cancer care to patients across the United States. Turning to the quarter, Q3 included a number of significant highlights, notably the successful completion of our business combination with Digital Transformation Opportunities Corporation to become a publicly traded company as well as the celebration of our fifth anniversary. We have made great progress executing our growth priorities and strategic imperatives. From the growth perspective, we added 19 providers to the Aon platform during the quarter and 36 year-to-date. Aon expanded into new strategic markets, including Florida this quarter and Texas during Q2. Both of these markets represent significant growth opportunities driven by the demographics of their respective populations and increasing demand of oncology services. To complement our traditional growth, Aon also expanded our service offerings to adjacent and complementary specialties. During the quarter, we welcomed the five providers from Triple Crown Urology in Arkansas. In addition to the cutting edge services provided by the clinical team at Triple Crown Urology, the patients and providers will now benefit from access to cutting edge therapies provided by our medically integrated pharmacy, in-house pathology services, and imaging services. Overall, Aon continues to do a great job executing on our strategic imperatives. We continue to experience positive year-over-year same-store growth across our markets, accretive growth through appropriate utilization of our ancillary services, and expansion of clinical services, including imaging and research. We continue to be a leader in transformative payment programs, demonstrated by being one of only 44 practices in the country to participate in CMS's alternative payment program for cancer care, the Enhancing Oncology Model. We have also made significant investments to further strengthen our leadership team, bringing in the talent needed to support our ambitious growth strategy and our focus on innovation. In July, Alty Marmin joined Aon as Chief Strategy and Innovation Officer, and Susan Sabo-Wagner joined us as Vice President of Clinical Innovation. We are excited to have Alty and Susan as part of our team. They have both made significant contributions in advancing our strategies since joining Aon. These continued investments in our business and patient-first focus has led to best-in-class patient engagement scores and has generated strong results in the quarter, highlighted by year-over-year revenue growth of 13%. Now I'll turn the court over to Dave to provide more financial detail on our third quarter results.