CareMax, Inc.

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the CareMax Incorporated first quarter 2022 financial results conference 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 at that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star 1. Thank you. It is now my pleasure to turn today's call over to Samantha Swartland, Vice President of Investor Relations. Ma'am, please go ahead.

Thank you, and good morning, everyone. Welcome to CareMax's first quarter 2022 earnings call. I'm Samantha Swartland, Vice President of Investor Relations, and I'm joined this morning by Carlos DeSolo, our Chief Executive Officer, and Kevin Worges, our Chief Financial Officer. During the call, we will be discussing certain forward-looking information. These forward-looking statements are based on assumptions and assessments made by CareMax's management in light of their experience and assessments of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate. And forward-looking statements made during the call are made as of today, and CareMax undertakes no duty to update or revise such statements whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments, and business decisions to differ materially from the forward-looking statements are described in the company's filings with the SEC, including the section entitled Risk Factors. In today's Remarks by Management, we will be discussing non-GAAP financial metrics. A reconciliation of these non-GAAP financial metrics to the most comparable gap measures can be found in this morning's earnings press release. With that, I'd now like to turn the call over to Carlos.

Thank you, Samantha. Good morning, everyone, and thank you for joining our call today. We had a solid start to the year as our quarter results continued to demonstrate the effectiveness and consistency of our model. We delivered a medical expense ratio of 72.6% and if we exclude the estimated impacts of COVID, it would have been 71.8%. Additionally, we ended the quarter with over 34,000 Medicare Advantage members. As we mentioned during our last call, we recently opened our first two centers in Memphis, Tennessee, and our first center in New York City. We had the opportunity to spend time at all three centers over the last few weeks and are extremely impressed by all of the hard work our team has done to bring our vision and model to these new communities. We're excited about the strong demand we're seeing in these new markets and the opportunity we have in bringing our transformative whole person health model to improve health outcomes and overall wellbeing to those patients that will benefit the most. Turning now to our performance. For the first quarter in 2022, revenue grew 55% over the prior year to 137 million pro forma for the business combination of CareMax and IMC. Notably, we saw over three quarters of our members during the quarter and continue to see reimbursement rates return to pre-COVID levels. Our first quarter GAAP net loss was $16.8 million. Our first quarter adjusted EBITDA was approximately $6 million, which included roughly $1 million in COVID-related costs. Despite impacts from COVID in the quarter, We believe we remain on track to deliver 2022 adjusted EBITDA in the range of $30 to $40 million, excluding de novo losses. As announced this morning, we have entered into a new credit agreement to refinance our current debt facility to support our accreted de novo strategy. We knew our pivot to a de novo growth strategy from M&A would fundamentally alter the course of our EBITDA and ability to support our existing bank debt. Today, we remain as confident as ever in the long-term returns of the de novo strategy and have sought a financing solution that would both give us significant flexibility from a covenant standpoint to invest in de novos and also provide us with additional liquidity to fund those initial operating losses, as well as pursue opportunistic tuck-ins that augment our de novo unit economics. Later in the presentation, Kevin will provide additional details on the terms of this facility. Our total membership at quarter end was over 84,000 and Medicare Advantage membership was over 34,000. Typically, our membership grows slower in Q1 when compared to the rest of the year, in part due to our significant share of duals who are able to enroll throughout the year. We continue to expect that our focus on de novo openings in combination with our affiliated physician practices and our own grassroots marketing efforts will continue or contribute to strong membership growth throughout the year. Similar to others in our industry, early in the first quarter, we experienced higher COVID hospitalizations related to Omicron variant. However, lengths of stay were lower than under prior variants, which paralleled the decrease in virulence of Omicron. Our medical staff continues to be diligent about the outreach and educating our members which has led to early diagnosis and more effective treatment plans for COVID. In turn, this has helped mitigate some of the high costs associated with COVID treatment. For the first quarter, we recorded a solid 72.6% medical expense ratio. This increased 110 basis points from the fourth quarter of 2021, primarily due to the aforementioned impacts from Omicron. Seasonality was also a factor as MERs tend to be higher in Q1 due to a number of factors, including an increase in utilization driven from members accessing new health plan benefits, as well as the reset of both stop-loss insurance and the reset of pharmacy limits at the beginning of the calendar year. Our model also continues to perform well on the provider side. We had no physician turnover in Q1 and have had strong demand recruiting providers in our new markets. in what would otherwise be a difficult labor market. We believe this is a testament to our strong culture and mission here at CareMax. With that, I will turn it over to Kevin to provide greater detail on our first quarter results.