Option Care Health, Inc.

Good day and thank you for standing by. Welcome to the Option Care Health second quarter 2023 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 the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mike Shapiro, Chief Financial Officer. 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. And with that, I'll turn the call over to John Rademacher, Chief Executive Officer.

Thanks, Mike, and good morning, everyone. The second quarter was a very dynamic period for the option care health team, and we will discuss many of these items in our prepared remarks. First and foremost, I cannot be more grateful for our team were more proud of the execution and dedication that was demonstrated across the organization. Their focus continues to enable us to provide unparalleled patient care and customer service, which translates into strong key performance metric achievement and financial results in the quarter. As always, Mike will review the results in greater detail, but I'll cover some of the highlights. The growth profile of the business continues to be strong as we delivered solid results across the board. Revenue growth of 9% was comprised of a balanced growth across the acute and chronic portfolio. And due largely to our strong execution and unique procurement benefits in the quarter that Mike will discuss, adjusted EBITDA was $110 million and adjusted EBITDA margin exceeded 10%. Building on the strength of our second quarter performance, we are tightening and raising our adjusted EBITDA target for the full year to $415 million to $425 million. Over the quarter, we continue to be active on the business development front as well, announcing a new collaboration with Crystal Biotech and preparing for potential emerging therapies to treat neurological disorders such as Alzheimer's. Our collaboration with Crystal Biotech enables us to help provide a new and innovative gene therapy treatment for patients who suffer from dystrophic epidermolysis bullosa. We believe our ability to leverage our advanced capabilities and comprehensive pharmacy infrastructure to support this innovative gene therapy demonstrates the responsiveness and broad clinical capabilities we possess across our network and that these attributes are valuable to our pharma partners. Although this product is for a rare disease that impacts roughly 3,000 patients across the United States, the collaboration continues to validate the investments we have made into our platform and the clinical capabilities necessary to support complex products and care plans. We also continue to focus on the emergence of new infused treatments for Alzheimer's. With the recent FDA approval it can be, We remain closely connected to patients, pharma, providers, and payers to help ensure we are part of the solution to a potential revolutionary category of new therapies. While we remain cautious on the near-term impact these therapies may have on our business due to the expected patient adoption pace and reimbursement challenges, I believe we are uniquely positioned to help ensure access to care for Alzheimer's patients and their families across the country. We continue to work closely with key stakeholders to determine coverage, seek fair reimbursement, and to advocate on behalf of patients to allow us to provide high-quality care at an appropriate cost in a safe and convenient setting in which they want to receive their care. Turning to M&A, as you know, in early May, we announced our intention to merge with Amedisys, which we believed was a unique opportunity to create an innovative post-acute platform that would help us transform the way care would be delivered in the home. As articulated over the course of the second quarter, and reinforced by the continued positive results we are reporting today, the merger was pursued from a position of strength, as we believe our base infusion business has had a solid foundation and continues to perform quite well. Since announcing our proposed merger with the Metasys, Mike and I have spent a significant amount of time engaging with many of our shareholders and others in the financial community. We appreciate the opportunity to hear your feedback and perspectives and look forward to continuing this conversation with you in the coming weeks. In that vein, we made the disciplined decision to terminate our agreement to merge with Amedisys and accept the $106 million break fee. Today, we are announcing that given the strength of our performance in cash positions, We intend to deploy an additional $100 million through share repurchases over the near term. Given the strength of our balance sheet and forward outlook, we believe it is appropriate to return essentially all of the break fee to our shareholders through our existing share repurchase program, which our board approved earlier this year. Our capital allocation strategy has been and will continue to be focused on generating favorable returns for our shareholders on a sustainable basis. While we have consistently identified pursuing opportunistic M&A as a top capital allocation priority, over the near term we expect that this will be limited to smaller tuck-in type transactions designed to deepen our existing strategic position and deliver additional value to our stakeholders through the provision of patient-centric care. Where circumstances allow, we will also look for ways to return capital to our shareholders through continued share repurchases or other means. Before I turn the call over to Mike, I will finish where I started. I believe the Option Care Health team is uniquely positioned in the post-acute space to deliver extraordinary care and change lives for the better, while also generating strong financial results. We understand the privileged position we possess in serving patients in their homes or in one of our infusion suites. and the trusted advisor role that our clinicians play in supporting the care plan. We will continue to work in a disciplined way to identify opportunities that deepen our expertise or broaden our capabilities to capture more share and play a more significant role in care delivery in the home or alternate site setting. As evidenced in our revised guidance, we are expecting 2023 to be another solid year with double-digit earnings growth and attractive cash flow generation. And we will continue to focus our efforts to position option care health to serve more patients and provide significant value to all of our key stakeholders. And with that, Mike will provide additional color on the results. Mike?