Option Care Health, Inc.

Thank you for standing by, and welcome to the Option Care Health Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. As a reminder, today's program may be recorded. And now I'd like to introduce your host for today's program, Mike Shapiro, Chief Financial Officer and Senior Vice President. You may begin. Good morning.

Before we begin, please note that we will make certain forward-looking statements that reflect our current views related to our future financial performance, future events, and industry and market conditions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our comments. We encourage you to review the information in the reports we file with the SEC regarding the specific risks and uncertainties. You should also review the section entitled Forward-Looking Statements in this morning's press release. During this call, we will use non-GAAP financial measures when talking about the company's performance and financial condition. You can find additional information on these non-GAAP measures in this morning's press release posted on the investor relations portion of our website. Finally, I wanted to highlight that we have posted a brief presentation to our investor website to augment our comments on this morning's call. With that, I will turn the call over to John Rademacher, Chief Executive Officer.

Thanks, Mike. 2021 was quite a dynamic year, to say the least, and despite many challenges, the Option Care Health team continues to deliver extraordinary care for our patients and strong financial results for our shareholders. As Mike and I will discuss this morning, we continue to manage through a challenging environment, but nonetheless, we could not be prouder of the dedication and focus of the thousands of Option Care Health team members. We continue to build on our reputation as a trusted partner for payers, health systems, physicians, and patients, as well as a team that delivers on our financial commitments while expanding access to care and setting the standard on patient care in the industry. We entered 2021 in an environment of optimism as COVID-19 vaccines and improved treatments were being introduced, and yet we exited the year in an environment that in many ways was more disruptive. With the emergence of the Omicron variant, we experienced more widespread disruption in our labor models and volatility in our referral patterns. As we sit here today, we continue to manage through a difficult environment with broader labor disruptions and challenges in engaging with our referral sources. The resurgence of COVID late last year clearly impacted our results as we exited December and has also resulted in a disruptive start to the first quarter. Despite all of the challenges the team has faced, we are very pleased with the financial results we delivered in 2021. For the year, we drove mid-teens top-line growth with improved performance across both our acute and chronic portfolios. Our chronic therapy set continues to be the biggest contributor to the top-line growth as we expanded our therapy portfolio and increased our engagement with referral sources to ensure unsurpassed clinical care for their patients. At the same time, we've translated top-line growth into leveraged earnings growth with EBITDA margins expanding to over 8% for the year, which is up approximately 200 basis points since the merger and an adjusted EBITDA growth of over 30% above the prior year. And as Mike will expand upon, we've dramatically improved our capital structure and leverage profile while deploying over $100 million in capital investments and M&A in 2021 with more progress to come in 2022. While we continue to focus on near-term execution, we also continue to invest for future growth. In 2021, we invested in improving our existing care management center footprint, opened three new state-of-the-art facilities in Chicago, Cleveland, and northern New Jersey, and opened 11 new standalone infusion centers, increasing our infusion chair capacity by 10% to more than 500 chairs across the country. These centers offer logistically convenient and aesthetically pleasing infusion suites for our patients and are a critical component to both our clinical and operational efficiency strategies. we continue to make progress on expanding this network of connected and technology-enabled facilities. With the merger integration squarely in our rearview mirror, we pivoted in 2021 from integration to acceleration by focusing our M&A efforts to expand our capabilities, and I am very pleased with our progress. We've executed on three complementary acquisitions and have one more in flight as we sit here today. In December, we acquired Wasatch Infusion, the infusion center market leader in Utah, which is highly complementary to our existing operations in Utah and the Mountain West. The Wasatch team has created a unique patient experience across their network of four infusion centers, and we've already learned a great deal from the Wasatch team. Although this acquisition is relatively new, the early read is quite encouraging. As previously announced in October, we acquired Infinity Infusion Nursing to broaden our clinical capabilities and increase access to clinical resources in support of our growth objectives. While assimilation efforts are ongoing, the progress to date has been tremendous. Again, Infinity's focus on nursing excellence at the point of care is complementary to our pharmacy infrastructure and will allow us to capitalize on additional vectors of growth. This business has a unique care model that supports other market participants and uses its network of highly qualified infusion nurses to meet aggregated market demand. As an organization that is built by infusion nurses for infusion nurses, it improves access to alleviate some of the labor pressures we are experiencing in nursing resources. On the heels of the INFINITY acquisition, this morning we've announced that we have signed a definitive agreement to acquire Specialty Pharmacy Nursing Network, or SPIN. SPIN is a national leader in providing infusion nursing services, and it's highly complimentary to INFINITY, and we anticipate closing on the acquisition later this year. SPIN's additional focus on providing clinical services in support of biopharmaceutical manufacturer collaborations broadens the aperture of nursing services we can provide while clearly expanding our network of infusion nursing resources at the same time. Upon the consummation of SPIN, we will have created a unique national nursing network that will support our growth and deepen our relationship up and down the pharmaceutical administration value chain. So we have achieved solid progress on our M&A efforts to date and executing our strategy to help transform healthcare by reimagining the infusion care experience that improves outcomes, reduces costs, and delivers hope to our patients and their families. We expect the momentum to continue in 2022. Before turning the call over to Mike, I wanted to spend a few minutes on the current pandemic and labor situations. As we have stated previously, there isn't a simple uniform statement to describe the pandemic situation on our enterprise. In late Q4, we saw considerable variability in referral patterns with the onset of Omicron, with numerous referral sources closing doors and several acute care facilities reverting back to delaying procedures. We also saw and continue to experience broader disruptions to our labor force, given the nature of the Omicron variant and the widespread infection rates. We have attempted to the best of our ability to lean on our redundant operational network and dynamic staffing model, but it has impacted us nonetheless. At the same time, we are not immune from the labor scarcity dynamic that has affected almost every enterprise across the economy. This is impacting access to resources and also placing pressure on wages. We remain proactive in managing our labor force with particular focus on our pharmacy and nursing resources, but it remains a very challenging environment. We continue to take steps to recruit and retain our talented team members daily and to remain an employer of choice through our diversity inclusion initiatives, health and well-being programs, and various employee support and training programs. Given the commitment of our team and our focus on working closely with our referral sources, thus far, although we have had some market-level disruptions, we continue to build on our reputation as a trusted partner. We will continue to actively manage through the situation to try to minimize the impact. Significant investments in Wasatch, Infinity, and Spin are clear examples of how we are taking proactive steps to have a nimble and resourceful operating model. So while we are very encouraged by the strong results in 2021 and the platform we are building, we remain cautious as we enter the new year and the adjusted EBITDA guidance range of $310 million to $330 million we communicated this morning reflects the dynamic environment in which we find ourselves. With that, I'll turn the call over to Mike to review the results in a bit more detail. Mike?