Option Care Health, Inc.

Good day, and thank you for standing by. Welcome to the Option Care Health third quarter 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 11 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our speaker, Mike Shapiro. Please go ahead.

Good morning. Please note that today's discussion will include certain forward-looking statements that reflect our current assumptions and expectations, including those related to 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. The third quarter results reflect our continued strong execution in a very challenging operating environment. Overall, we are quite pleased with the progress we made in the third quarter while delivering solid growth in revenue and earnings. Growing EBITDA earnings by nearly 10% year-over-year during a period of significant disruption demonstrates the strength of our team and the resilience of the platform. The team responded to dynamic market conditions, including repositioning by some market participants, a significant natural disaster, and escalating inflationary pressures to help ensure we are providing real solutions to our referral partners and setting the standard for patient care across the industry. In the third quarter, revenue growth of more than 14% is a result of mid-single-digit growth in key acute therapies, and mid-teens growth in the chronic portfolio. We continue to focus on streamlining the onboarding process with referral sources, and we have made progress across a number of key therapeutic areas. Our collaborations with health systems across the country enable us to accelerate growth in the quarter for key acute therapies given favorable market dynamics, and the option care health team responded to acute opportunities in specific markets to ensure our referral sources could rely on us for efficient transitions of care. Although this caused strains on our operations at a market level in the near term, we believe the strength and resilience of our technology-enabled national network was a significant asset. Our ability to dynamically shift workload to utilize our capacity and respond to the needs of our hospital partners in the local markets helped to reaffirm our position as partner of choice. I would also like to recognize the incredible work of our team in Florida and across our enterprise as they supported our patients and referral sources in the path of Hurricane Ian. The devastation the storm brought to the Southwest Florida and across the state was unimaginable and heart wrenching. And our team rose to the challenge to help ensure all of our patients were prepared and had access to their medicines and supplies throughout the emergency. We continue to work in partnership with our referral sources and patients in the communities most affected to help with the recovery efforts through our facility in Fort Myers and across the state. As always, Mike will unpack the financial results in a few minutes, but we continue to face inflationary pressures across a variety of categories, including clinical labor, transportation, medical supplies, and several key business services. We do not see cost pressures subsiding in the near term. And in fact, we have seen heightened pressure in several areas. As always, we continue to relentlessly focus on operational efficiencies to offset the pressure. And in some instances, we have negotiated improved reimbursement for therapies and services most impacted by the inflationary environment with payers. We continue to work closely with our health plan partners through our dedicated market access team to highlight these cost pressures and discuss ways we can work together to help ensure we are being reimbursed fairly and appropriately for the value we bring to their members. On the M&A front, late in the third quarter, we acquired Rochester Home Infusion, a regional leader in home infusion based in Rochester, Minnesota. As we have consistently mentioned, we will actively seek complementary infusion assets that we believe are well positioned strategically and represents sustainable financial returns. Rochester has emerged as a rapidly growing leader in the Upper Midwest with key relationships with leading health systems, and we are thrilled to welcome them to the AuctionCare Health family. We also continue to evaluate our portfolio of assets to ensure we are optimizing the capital base. And in October, we entered into an agreement to divest a respiratory therapy service line we operated in the Northeast. This operation was part of Bioscript organization, and it is both a capital-intensive and strategically different business than our core enterprise with different call points. We believe it is more logical that the operation resides within an organization oriented to and focused on the respiratory therapy market. We continue to invest in our organic growth strategy. Our technology enablement and digital strategy took a significant step forward as we began to pilot Touchpoint, our mobile app that improves patient engagement through self-service functions and secure two-way communication, as well as increasing the data capture and analytics we can provide. This has been part of our overarching multi-year technology investment, and it is great to see the fruits of our labor beginning to ripen. This is part of a multi-faceted approach we are taking to enhance care and improve clinical outcomes through capturing the care plan digitally, identifying trends through analysis, and exchanging insights with the prescriber and other members of a patient's care team through interoperability. Also, through Q3, we have opened 16 new ambulatory infusion centers across the country this year. and have expanded our total chair count to over 570 infusion chairs across the country. We are on track to open a total of 25 new facilities this year and further expand our capacity to serve patients conveniently and effectively close to where they live and work. Again, increasing utilization of our infusion centers is a key growth strategy as it enables us to more effectively treat patients and better utilize our clinical resources. Currently, approximately 23% of our nursing events occur in one of our centers, and we are focused on further increasing center penetration. Finally, as Mike will outline, we are tightening our guidance heading into the fourth quarter by slightly increasing the midpoint of our expected adjusted EBITDA results for the year. Overall, 2022 is shaping up to be an extremely productive year for option care health across a variety of measures, and we remain focused on finishing the year strong while continuing to invest for the future. Before turning over the call, I would like to bring to your attention that we have enhanced our investor relations website to include a dedicated page that highlights our current ESG initiatives and outlines other ESG efforts underway. And with that, I'll turn the call over to Mike to review the results in a bit more detail. Mike?