Option Care Health, Inc.

Good day, and thank you for standing by. Welcome to the Option Care Health 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during that session, you will need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the call over to our speaker today, Mr. Mike Shapiro. Go ahead.

Good morning. Before we begin, please note that today's discussion will include certain forward-looking statements that reflect our current assumptions and expectations, including those related to our future financial performance 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 expectations. We encourage you to review the information in today's press release, as well as in our Form 10-K filed with the SEC, regarding the specific risks and uncertainties. We do not undertake any duty to update any forward-looking statements except as required by law. During the 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. With that, I'll turn the call over to John Rademacher, Chief Executive Officer.

Thanks, Mike, and good morning, everyone. Overall, we are very pleased with the progress we have made in the second quarter and the financial results we delivered as reported this morning. Despite operating in a very dynamic environment, our team continues to execute our plans to realize our purpose of providing extraordinary care that changes lives. In the quarter, we increased the number of patients we serve and who entrust us with their care in the home or one of our alternate infusion sites. Throughout the second quarter, we also made strong progress on several fronts of our focus strategy. As Mike will outline in a few minutes, we delivered low-teens revenue growth and mid-teens EBITDA growth and translated that into strong cash flow. We continue to navigate a very difficult labor market and inflationary dynamics, which presents challenges on a daily basis. Yet we were able to leverage our strong infrastructure and continue our track record of delivering strong EBITDA growth and expanding EBITDA margins. And at the same time, we invested for the future growth, having closed on our acquisition of Specialty Pharmacy Nursing Network, or SPIN, early in the second quarter and opened six new infusion centers in key markets across the country. With respect to our results in the second quarter, we saw balanced growth across our portfolio of therapies, including low single-digit growth in our acute portfolio and mid-teens growth in our chronic portfolio. Despite modest hospital discharge volume growth at acute care facilities across the country and continued supply shortages in vital nutrition support products, we saw solid referral trends throughout the quarter. Given recent repositioning by some other market participants, we are confident that we are executing well relative to the broader market, and we remain well positioned to support market demand for the portfolio of acute therapies. I've spoken before about our commercial focus to ensure we have the appropriate market coverage through reach and frequency, and we are seeing the value of this disciplined approach. The investments we have made and continue to make into our care management center infrastructure to help ensure we are responsive to our acute care channel partners and referral sources have resulted in a more reliable and timely collaboration across our national network of 97 highly connected and efficient pharmacies. We have created an increasingly effective digitally enabled platform for complex pharmacy administration and point-of-care services across the country. Our chronic portfolio continues to grow in the mid-teens, and our results are quite balanced across established chronic therapies as well as newer products that have rounded out our portfolio. With our comprehensive nursing network, we are well-positioned to help payers meet the immediate needs of their members and move beyond the infusion event to help better support the whole patient and reduce the total cost of care. As we have discussed previously, we continue to operate in a challenging market backdrop with continued labor and cost pressures. Our focus on recruiting our existing team members every single day and recruiting new members to the team helps ensure that we have capacity and vital skills necessary to provide advanced care to our patients. The teams in the field are executing well to help ensure we have the right staff and the right therapies to provide extraordinary care. The inflationary cost pressures continue to present challenges, but we remain very focused on offsetting those pressures where possible, primarily through leveraging our technology to drive productivity and operating efficiencies. We continue to see widespread cost pressures across a broad array of inputs, including fuel and transportation, packaging and medical supplies, and a variety of other categories. And we do not expect those pressures to subside anytime soon. As I mentioned earlier, we are thrilled to welcome the SPIN team to the broader option care health enterprise. And with the acquisition, we continue to make progress on creating a unique skilled infusion nursing platform. Combined with our internal nursing organization, as well as our acquisition of Infinity Infusion Nursing last fall, we have now established a leading clinical organization of more than 3,000 qualified infusion nurses. to provide exceptional infusion services at the point of care to patients across the country. While we are in the early innings of integrating those organizations, we are more confident than ever that the SPIN and Infinity teams will be instrumental in our growth strategy going forward. Finally, we are investing for future growth through our expansion of infusion centers nationwide. In the second quarter, we opened six new infusion centers and now expect to open more than 25 in 2022. As a reminder, center expansion is a vital growth strategy as it enables us to provide more choice for our patients, drive clinical labor efficiency, while also expanding our ability to collaborate with referral sources to increase our patient census. Through our consistent investment in site capacity, we now have more than 140 infusion centers across the country. And I expect this to be an area of continued investment beyond the current year. Our disciplined investment strategy focuses on improving access to care across geographies and therapies and improving the patient experience. Given our investment in infusion centers and technology over the past several years, we continue to cast a wider shadow, so to speak, into new therapies, more rural geographies, and a broader base of referral sources. It's about providing consistent, high-quality care, whether you're in New York City, Kansas City, or Carson City. So overall, the second quarter was very productive, and we continue to make solid progress on executing our growth strategy, focused on providing extraordinary patient care in the post-acute setting. We delivered strong revenue and EBITDA growth in this quarter, and we increased our cash balances while making significant investments into our future, allowing us to tighten and raise our full year guidance. Before I hand it over to Mike to go into the results in more detail, I must recognize and highlight the incredible collaboration and focus of our teams across the country as they rise up to meet every challenge and maintain our focus of placing the patients and their families at the center of everything that we do. And with that, I'll turn the call over to Mike to review the results in a bit more detail. Mike?