The Oncology Institute, Inc.

Good afternoon and welcome to the Oncology Institute third quarter 2023 earnings conference call. Today's call is being recorded and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Mark Hoppelheiser, General Counsel at TOI. Thank you. You may begin.

The press release announcing the Oncology Institute's results for the third quarter 2023 are available at the investor section of the company's website, theoncologyinstitute.com. A replay of this call will also be available on the company's website after the conclusion of this call. Before we get started, I would like to remind you of the company's Safe Harbor language. Management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks, and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our filings with the SEC. This call will also discuss non-GAAP financial measures, such as adjusted EBITDA. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are included in the earnings release furnished to the SEC and available on our website. Joining me on the call today is our CEO, Dan Reddick, and our CFO, Mihir Shah. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Dan. Thank you, Mark.

Good afternoon, everyone, and thank you for joining our third quarter call. I'm excited by the progress made this quarter and want to begin again by thanking our clinical staff and teammates for their remarkable contributions to furthering community-based oncology care for our patients every day and driving efficiency and innovation in our clinical model. Their collective performance has resulted in another impressive quarter of financial growth. Starting with the top line, I am very pleased to report that in the quarter we achieved 26% revenue growth compared to Q3 of 2022, supported by strong demand for our services. Importantly, Our organic growth rate was 20%, and our same-store sales growth was 17%. Our performance in the quarter demonstrates our ability to execute our strategy as we significantly grew the top line while improving profitability. Gross profit has improved sequentially since we announced the headwinds around IV drug margins in Q1 2023. Adjusted EBITDA improved $1.4 million compared to Q3 2022. Through a concentrated effort to improve collection timeliness, we have seen improvement in our cash position and expect the improvement to continue in Q4 2023. As such, we expect to have adequate funds to fulfill our expansion objective in 2024 and remain on track to achieve positive adjusted EBITDA by end of next year. Now, I would like to highlight a few operational achievements since our last call. First, we hit a milestone by opening our 70th clinic. We anticipate four additional locations in Q4 in South Florida, and we'll use our expanded footprint in Broward and Dade counties to serve a new value-based contract, which I'll touch on shortly. Second, we added five physicians in the quarter. primarily in Florida, bringing our total provider count to 112. Third, a significant portion of our providers have successfully integrated Ambiance, an AI-powered platform designed for clinical documentation, workflows, and enhancing the patient experience. As we continue to implement this tool, we aim to increase efficiency, optimize charge capture, and improve overall patient satisfaction. thus creating more capacity to accommodate our growing number of encounters. Fourth, we recently welcomed Jeremy Castle as our new chief operating officer. Jeremy joins us with over 15 years of oncology industry experience and has a track record of driving growth and profitability for multi-state physician groups. Jeremy adds key strengths to our executive team on operational excellence, drug procurement strategy, to radiation oncology optimization, in addition to other skills. Lastly, with the recent appointment of Jessica Yankes as our new national pharmacy leader, we are now fully prepared to commence our 2024 operations with a strong focus on expanding our oral specialty drug business and enhancing margins through improved drug procurement strategies. Jessica brings valuable experience from Amerisource Bergen and her previous tenure at McKesson. Before I turn it over to Mihir to walk you through the financials, I want to provide an update on a significant milestone for TOI. Effective January 1st, 2024, we entered into a full risk capitated contract in South Florida with a national payer. The contract covers medical and radiation oncology services and is a milestone for TOI as our first direct to health plan capitation contract and will help us elevate the level of community-based oncology services for the patients we will treat through this partnership. This displaces the more common network model solution, which has been prevalent in Florida for many years, and we anticipate it to act as a catalyst for our continued growth as we demonstrate TOI's ability to deliver superior outcomes for both payers and patients. Now, I'll turn the call over to our CFO, Mihir Shah, provide additional details on our third quarter financial results.