ModivCare Inc.

Greetings and welcome to the Motive Care Incorporated third quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jonathan Bush, Senior Vice President, General Counsel of Motive Care. Thank you, Jonathan. You may begin.

Thank you, operator. Good morning, everyone, and thank you for joining MotiveCare's third quarter 2021 conference call and webcast. With me today from the company are Dan Greenleaf, President and Chief Executive Officer, and Heath Sampson, Chief Financial Officer. I would like to remind everyone that during today's call, the company's management will make forward-looking statements under the Private Securities Litigation Reform Act. Those statements involve risks, uncertainties, and other factors that may cause actual results or events to differ materially from expectations. Information regarding these factors is contained in today's press release and in the company's filings with the SEC. We will also discuss non-GAAP financial measures in an effort to provide additional information to investors. These measures should not be considered in isolation from their most directly comparable GAAP financial measures. A definition of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures is included in our press release and Form 8K. We've arranged for a replay of this call, which will be available approximately one hour after today's call, on our website at motivecare.com. This morning, Dan Greenleaf, our Chief Executive Officer, will begin with opening remarks, after which Heath Sampson, our Chief Financial Officer, will provide the details of our financial results. Then we will open the call for questions. With that, I will turn the call over to Dan Greenleaf. Dan?

Thank you, John. Good morning, everyone, and thank you for joining us today. In the third quarter, we made significant progress executing on our strategy to transform motive care into a one-of-a-kind, integrated supportive care company with solutions focused on addressing the social determinants of health. On September 14th, we completed the acquisition of CareFinders, adding a highly complementary leader in the Northeast market for a personal care segment. On September 22nd, we completed the acquisition of VRI, bringing a first-rate remote patient monitoring and medication management company into our fold. Throughout the quarter, we continue to automate and modernize our non-emergency medical transportation, or NEMT, business, and we advance the development of an innovative meal delivery offering. As the market transitions to value-based care, addressing the social determinants of health for our nation's most vulnerable patient populations is critical to promoting positive outcomes and reducing health disparities. We are driving MotiveCare's organizational transformation with a focus on advancing these efforts by removing barriers to care, enhancing the client and patient experience, reducing the cost of care, and improving outcomes. Our team members and partners play an integral role in the communities where we live, work, and serve. And together, we're confident in our unique position to impact the future of healthcare. Turning to our business segments, the acquisition of CareFinders combined with Simplura creates one of the largest personal care platforms in the country with approximately 16,000 caregivers delivering roughly 30 million hours of care annually to approximately 20,000 patients. Scale and density matter in this business. We are leader in seven states in which we operate with approximately $650 million of pro forma revenue as reference to the time of the CareFinder's acquisition. With our scale and density, we can cover large geographies for the payers and states we serve and expand access to personal care. We continue to see robust demand for our personal care services, both in the short term and long term. This demand is driven by the escalating trend of care moving away from institutional settings and into the home, which delivers lower costs, better quality of life, and improved health outcomes. While the strong demand for personal care services is readily apparent, we have experienced muted hours due to the continued labor supply challenges during the pandemic, consistent with others in the industry. We believe that depending on the region, our personal care hours are running 10 to 30% low pre-pandemic levels due to the shortage of caregivers in the workforce. As the impact of labor shortages dissipates, we foresee a meaningful step up in our personal care billable hours and EBITDA run rate from current levels over the coming quarters. We remain optimistic regarding the long-term growth of our personal care segment, as the personal care is a $55 billion market that is highly fragmented and expected to grow rapidly, presenting an attractive opportunity for us to generate organic and inorganic growth with a disciplined approach to tuck-in acquisition. Moving to remote patient monitoring, or RPM, the acquisition of VRI is also integrating nicely in the mode of care as a new value-added offering for payer states and patients. Remote patient monitoring represents an $8.5 billion total addressable market and is only 13% penetrated today. The pandemic has led to an acceleration in digital health and highlighted the value of alternative solutions to in-person care. RPM has made it possible for patients to safely remain at home while their health continues to be supervised. VRI's best-in-class RPM platform is device-agnostic and supports aging in the home for the elderly and care in the home for the chronically ill. By proactively monitoring the health data of more than 170,000 individuals, the team members of VRI's two 24-7 care centers help alleviate pressure pressures on the health system, by preventing emergency room visits and hospital stays, and removing traditional barriers to care. We believe there is a tremendous opportunity to grow VRI's existing revenue through cross-selling RPM across our payer base, which overlaps with 10% of MotiveCare's top clients. Our teams have partnered with their respective counterparts and engaged in some very productive early conversations with our customers. The financial profile of VRI is very appealing, with mid-teens reoccurring revenue growth and the opportunity to accelerate even more while also generating a robust EBITDA margin. By leveraging VRI's data analytics and technology, we expect to differentiate our in-home services and bridge the gaps to care through a more connected care experience. Moving to our NEMT business, this quarter we continue to modernize and automate our national transportation network. Digital transformation has benefited from the Wellride acquisition, which brought us an industry-leading transportation routing technology. In conjunction with our user-friendly Rider driver app, which brings value to our patients by expanding access and reducing complexity, we believe we have amassed and built the strongest technical platform in the industry that further sets us apart from the competition. We continue to benefit from our automation initiatives and other operational enhancements, which we refer to as Project Storm. These initiatives include deployment of IVR, IVA, and workforce management solutions in our contact centers, reduction of transportation waste for ineligible riders, utilization of BPO services, more effective management of cost overrides and surge pricing, and streamlining of our real estate footprint. While the Project Storm initiatives have been fully implemented, there are additional opportunities to optimize our NEMT processes and improve automation, such as improved transportation routing and continued automation of manual processes. We refer to the second group of initiatives as Project Lightning. We will be implementing Project Lightning over the next year. We expect to realize additional benefits from this initiative following the implementation. Looking at our NEMT commercial organization, We have been pleased with our recent investments in both our sales and account management teams as we've retained 100% of our MCO contracts to date and are well positioned to win some very large contracts opportunities in the pipeline. We're also pleased to see the NEMT member growth in the high single digits this quarter. Every NEMT ride we provide enables access to healthcare for a member of our community's most vulnerable populations. Given this important backdrop, we continuously strive to expand and strengthen our transportation provider relationships. We are a mission-driven organization focused on improving the health and well-being of people and communities we serve, and our transportation providers play an important role in this. We are working hand-in-hand with our community-based transportation providers and further building our relationships. In this regard, we have established a Transportation Advisory Council focused on listening to the voice of our transportation providers and acting on their feedback to enhance their overall experience working with motive care. We're grateful for the integral role our providers play in helping us maintain a vibrant transportation network. Moving to our emerging meal delivery business, this quarter we delivered our nutritionally tailored and culturally sensitive meals MCO members and internal team members under our initial programs. And we are very excited by our sales pipeline, which includes multiple national MCOs. We have partnered with a national food service provider, and we believe that our innovative, technology-enabled meal delivery offering will disrupt the current marketplace by working to address our country's food insecurity issues. We continue to believe that our meal delivery business has the potential to generate $500 million in revenue for us within five years. Motive Care has brought together a complementary and synergistic group of businesses that we believe has accelerated our position to be a highly relevant player in the future of healthcare. Our scale, reach, and relationships with our existing channel of approximately 30 million patients, or 9% of the US population, positions us well to close the gaps and access the care holistically. while also providing multiple avenues for sustained growth. Further, a holistic model gives us the potential to address patients' overlapping needs rather than one-by-one. With NEMT, personal care, remote patient monitoring, and mail delivery all under one umbrella, we have a multitude of cross-selling or cross-care opportunities, as we intend to own the last mile and own the home. and remain in an excellent position to serve our states and payers with a one-stop shop experience that is constantly being enhanced by data and analytics resources. Our view is validated by the feedback we have received from our client advisory board. Recently, we have been engaged by our payer partners in meaningful value-based discussions to develop an integrated supportive care pilot. We believe that our integrated supportive care strategy will drive sustainable and profitable growth at MotoCare while also creating long-term value for shareholders. Lastly, I am grateful for our nearly 30,000 team members who are on the front lines every day bringing equity, hope, and healing to the patients we serve in our mission to deliver better access to care for all. I'm incredibly excited about the long-term growth journey we're embarking on as an integrative supportive care company addressing the social determinants of health and I look forward to sharing our progress in the quarters to come. With that, I'd like to turn it over to Heath Sampson, our Chief Financial Officer, for a review of our third quarter financial results. Heath?