Performant Healthcare, Inc.

Financial Corporation's first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Richard Zubek, Investor Relations. Thank you. You may begin.

Thank you, operator, and good afternoon, everyone. By now, you should have received a copy of the earnings release for our first quarter 2021 results. If you have not, a copy is available on the investor relations portion of our website. On today's call will be Lisa M., Chief Executive Officer, and Rohit Ramchandani, Senior Vice President of Finance and Strategy. Before we begin, I'd like to remind you that some of the comments made on today's call are forward-looking statements. These statements are subject to risks and uncertainties, including those described in our filings with the SEC. Actual results may differ materially from those described during the call. In addition, any forward-looking statements are made as of today, and the company does not undertake to update any forward-looking statements based on new circumstances or revised expectations. Also, all non-GAAP financial measures discussed during this call are reconciled to the most directly comparable GAAP measures in the table attached to our press release. I would now like to turn the call over to Lisa M. Lisa?

Thank you, Rich. Good afternoon, everyone, and thank you for joining us for our earnings call. As you likely know, we are currently going through a multi-pronged approach with regard to our company composition. The COVID-19 pandemic disrupted our legacy recovery business, which included the acceleration of already declining student loan recovery revenues. and a broader recovery ecosystem that continues to face more and more regulatory pressure. Our approach includes an agreement to sell a portion of our non-healthcare recovery contracts to a buyer that specializes in outstored receivable solutions, while winding down other aspects of our recovery operation. As part of the wind down, we will continue to fulfill our current recovery contracts, but we do not plan to renew or restart existing contracts or pursue new non-healthcare recovery opportunities. This decision reflects our plan to fully dedicate our resources and efforts on expanding our position in the healthcare market where we continue to demonstrate success in taking business from long-term industry and companies. We also plan to maintain our customer care outsource services operations as we see a potential for growth through a tighter integration with our healthcare market offerings. Furthermore, we expect the multi-pronged approach with our recovery contracts will generate cash flows for the purpose of de-levering the company. We continue to believe that our strengthened focus on the high-growth healthcare market is in the best interest of our shareholders. Although we have made the decision to focus on healthcare going forward, our quarterly results in 2021 will continue to reflect a blend of our healthcare and some legacy recovery operations. For the first quarter of 2021, we had revenues of over $31 million and essentially a break-even adjusted EBITDA. Both of these figures were lower compared to the first quarter of last year due to the impact of the coronavirus pandemic. We anticipated Q1 to be a smaller quarter in 2021 due to the trickle down of COVID impacts, but are excited to share that the current and long-term trends remain very positive. Further, our 2021 targets remain unchanged, and we are confident in our ability to achieve our previously stated guidance of annual healthcare revenue in the range of 83 to 90 million and positive EBITDA. Our recovery business served as a foundational backbone to launch our healthcare operations with CMS in the 2000s. But since then, we've developed a comprehensive offering focused both on healthcare commercial clients and we continue to expand our relationship with CMS. Most recently, CMS awarded us a renewal of our Region 1 Recovery Audit Contract, or RAC, for a base term of eight and a half years. This Recompete Award is in addition to our ongoing national CMS Region 5 durable medical equipment, home health, and hospice contract. We are excited to further focus our efforts within the healthcare markets to build upon our position as an industry leader in payment integrity. We're successfully winning new business and expanding our existing contracts through the combination of our client-centric focus and a proprietary and differentiated technology platform. Within healthcare payment integrity, both of our offering categories, namely claims-based and eligibility-based services, operate on the same data platform regardless of the service. This platform provides us a competitive advantage in terms of capabilities, processing times, and flexibility. This allows us to center our focus on driving greater value while perfecting our offerings. The healthcare payment integrity industry is not a new market or something that we created. Much of our success has come via our ability to effectively take market share from the existing incumbents. We will continue to invest in technology and attract industry-leading talent to further scale the business. We believe we have a solid foundation for meaningful growth in the short and medium term. We will always remain a client-centric company to our core. We are excited to strengthen our commitment to healthcare, focus our resources on helping our clients manage the rising cost of healthcare services. With that, I'd like to introduce Rohit Rapshandani, our Senior Vice President of Finance and Strategy, to walk you through the results of the quarter. Rohit?