Option Care Health, Inc.

The conference will begin shortly. To raise and lower your hand during Q&A, you can dial star 1-1. Hello, and thank you for standing by. Welcome to Option Care Health Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone, and you will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to your speaker for today, Mike Shapiro. Sir, you may begin.

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 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. And with that, I'll turn the call over to John Rademacher, Chief Executive Officer.

Thanks, Mike, and good morning, everyone. As we reported in this morning's press release, the option care health team delivered another very solid quarter of results in the fourth quarter. Despite ongoing challenges on many fronts that we'll discuss on this morning's call, the team was relentlessly focused on delivering extraordinary care to the thousands of patients who rely on us every single day. And reflecting on 2022 as a whole, I am humbled by the dedication of the team and honored by the progress we've made over the last year to advance in our mission to help transform healthcare by providing unsurpassed care and superior clinical outcomes in the home or ambulatory setting. During 2022, we continue to expand our relationships with payers, providers, and biopharma to offer the highest quality care at the most appropriate cost. And over this time period, we provided care to over 265,000 unique patients and their families. As always, Mike will provide a more granular overview of the results. But in Q4, we generated revenue growth of over 10%, with balanced growth coming from both our acute therapies that grew in the mid-single digits and double-digit chronic therapy growth. At the same time, we've generated adjusted EBITDA growth of 8.7%, and importantly, delivered an adjusted EBITDA margin of 9.2%, up sequentially 80 basis points from the third quarter, despite continued inflationary pressures. And not to steal Mike's thunder, but our balance sheet has never been stronger. As we finish the year with $294 million in cash, and our net leverage ended the year at 2.3 times. Entering 2022, I don't believe that anyone anticipated the inflationary pressures that the broader economy would endure, or as we have communicated previously, the significant impact we felt across many of our inputs. Throughout the year, we faced emerging cost pressures head-on, and we conservatively digested more than $40 million in year-over-year cost pressures in labor, medical supplies, oil-derived products, and operating inputs. We focused on offsetting those pressures to the best extent possible through technology enhancements and driving operating efficiencies, as we also collaborated with our payer partners to seek reasonable rate increases where appropriate. Our pursuit of operating efficiencies never ends, and the team drove considerable leverage in what we believe is the new cost basis going forward. We also continue to manage through a very difficult labor market. With the acquisition of Specialty Pharmacy Nursing Network last April, combined with our Infinity Infusion Nursing Network platform, we have established what we believe is the largest clinical infusion nursing network in the country. And while recruiting key clinical disciplines remains challenging, we are confident we are weathering the storm better than many, and we continue to maintain our reputation as an employer of choice and a dependable partner to our referral sources as we can provide them with adequate clinical staffing capacity, allowing us to serve their patients. During the year, we also opened 22 new ambulatory infusion centers. increasing our total count to nearly 150 sites and added 63 infusion chairs, which increases our total to over 575. With the expanded footprint and capitalizing on patient preference, we continue to see greater percentage of our nursing visits in our infusion suite, now approaching 25%. We will continue our expansion in 2023 with plans to open over 20 additional sites in key markets. This will allow for greater operating efficiencies and continued high patient satisfaction scores. In summary, 2022 was a very productive year as we delivered $342.9 million in adjusted EBITDA for the full year, exceeding our original guidance of delivering $310 to $330 million in adjusted EBITDA. As we look ahead to 2023, I remain confident in our ability to deliver mid to high single-digit top line, leveraged bottom line growth, and strong cash flow from operations through strong execution and deepening partnerships. We will continue to focus on providing meaningful solutions to our key stakeholders as the marketplace evolves and new models emerge. We will continue to work closely with the payers to offer consistent, high-quality care at an appropriate cost and explore value-based arrangements for their members requiring infusion services across the country. We will partner with discharge planners and prescribers to provide seamless transition of their patients on the service with us and collaborate broadly as members of their extended care team. We will deepen our relationships with our patients to provide them unsurpassed support as they recover from an acute event or help them manage their chronic conditions so they can live life to the fullest. And we will provide the strongest clinical platform and broadest population access to pharma as they conduct clinical trials in support of novel new therapies or strengthen the data capture and analytics that we will provide for patients that are receiving their medicine. And we will continue to invest in our people as we provide training, development, and opportunities for advancement. to remain an employer of choice and the destination for passionate healthcare professionals. Also in this morning's release, we announced that we have received authorization from our board of directors to repurchase $250 million in shares as part of a multifaceted capital allocation strategy. Mike will provide more color on this program. However, I wanted to highlight this as proof positive of how far we have come since the merger in August of 2019 and acknowledge the discipline we have applied to unlock free cash flow, strengthen our balance sheet, and vastly improve our leverage profile. And with that, I'll turn the call over to Mike to review the results further. Mike?