Viemed Healthcare, Inc.

Good day, ladies and gentlemen, and welcome to the VIMED Healthcare First Quarter 2025 Earnings Call. All lines have been placed on a listen-only mode, and the floor will be open for questions and comments following the presentation. If you should require assistance throughout the conference, please press star zero to reach a live operator. At this time, it is my pleasure to turn the floor over to your host, Trey Fitzgerald, CFO. Welcome, Trey. The floor is yours.

Thank you, and good morning, everyone. We appreciate you joining us today. Please note that our remarks in this conference call may include forward-looking statements under the U.S. federal securities laws or forward-looking information under applicable Canadian securities legislation, which we collectively refer to as forward-looking statements. Such statements reflect the company's current views and intentions with respect to future results or events that are subject to certain risks and uncertainties, which could cause actual results or events to vary from those indicated in forward-looking statements. Examples of such risk and uncertainties are disclosed in our disclosure documents, filed with the SEC or the security regulatory authorities in certain provinces of Canada. Because of these risks and uncertainties, investors should not produce undue reliance on forward-looking statements. The forward-looking statements made in this conference call are made as of today, and the company undertakes no obligations to update or revise any forward-looking statements except as required by law. The first quarter financial supplement and financial news release, as well as the related financial statements, are available on the SEC's website. I'll now turn it over to Vymed's CEO, Casey Hoyt, to get things started.

Okay, thank you, Trey, and good morning, everyone. We appreciate you joining us today. I want to first give a huge thanks to our over 1,200 employees in the ViMed family and acknowledge how well they take care of our patients, providers, and partners. We overcame the cyclical challenges the first quarter presents and continue to grow ViMed's place in the home with every single interaction. It does not go unnoticed. Thank you, team, for all that you do. The typical goal of any first quarter earnings call is to declare that you had a solid start to the year and business objectives are on track relative to the overall business plan. This morning, I have the distinct pleasure of saying that we're ahead of where we anticipated in Q1 and have tightened our outlook upward for the year. The confidence in this outlook is based on the across-the-board strength and operations across our businesses that we expect to translate into even better financial results over the balance of the year. I want to spend a few moments on the details of our strong business performance, and then I'll turn to the opportunities we're seeing and our views of the regulatory environment. Our vent business accounts for 54% of our revenues and was a strong performer once again this quarter. As expected, vent revenue was only down 3% sequentially and up 10% year over year. More telling is the fact that our total vent patients were up for the 16th straight quarter, and our new patient starts were up an impressive 9% sequentially. That's a direct result of the sales restructuring we implemented last year and bodes well for our future results in this business. This is quite an achievement in light of how this product has shifted from 90% to 54% of our revenue over time. These vent patients represent a massively underserved population, and one of the populations I refer to as a blue ocean of opportunity. We like to think that we're really good at sales, and we are, but the truth is that we're benefiting from our sales restructuring, recruiting, and sales processes we launched in 2024. We're ahead of schedule on the hiring, and we plan for 2025, that we plan for 2025, and we're finding people in new territories we have targeted. In our sleep business, we saw a 7% sequential increase in sleep therapy patients and a 46% increase year-over-year. We're excited about this continued trend going forward, as we also saw a 40% increase year-over-year new patient setups. While resupply patients were down sequentially due to the first quarter seasonality, they're up 21% year-over-year, and the new patient starts are an indicator for strong resupply growth later this year. The staffing business continued to grow both sequentially and year-over-year, reaching 10% of our net revenues for the quarter, reflecting strong demand in behavioral health and social service specialists. As strong as our combined businesses have been, it's worth addressing some of the recent regulatory announcements. While most of the healthcare industry is still trying to assess potential cuts to Medicaid and Medicare, we continue to believe that these pressures play to our strengths and drive demand for the unique services our respiratory therapists can provide in the home. Unlike most HME providers who are selling virtually catalog medical equipment, our salespeople and RTs are in the halls of the hospitals helping manage length of stay for these systems through helping them create efficiencies, improve outcomes, and increase patient satisfaction. We have become a vital link between patients, providers, and payers in this setting because we are working directly with them to deliver comprehensive patient-centered care. Business models only built on dropping off equipment don't address the real needs of the patients and providers. Our model addresses their pain points, and in the evolving regulatory environment, we are better positioned to flourish. As we all saw in mid-March, CMS proposed their National Policy Coverage Determination, or NCB, on non-invasive positive pressure ventilation. The industry had asked for this NCB to clarify the rules. There are some things that we like in the NCD, some we don't, and some that definitely need further clarification. Public comments were due by April 10th, and our Chief Medical Officer, Dr. Frazier, submitted on behalf of Vymed. In our opinion, overall, this is going in the right direction. Also, this is a great time for CMS to look at the actual data, see the savings, and write a more fulsome reconsideration in the near future. We are hopeful that the end result is a set of formulary rules that gives the right patients access to NIV and ultimately saves the system money. We are actively monitoring the process, and what we can say is that this process has finally alerted CMS to the data and published research we built up. CMS is connecting with it for the first time and demonstrating a willingness to consider the evidence. We've already seen this data influence outcomes at the state level, for example, In mid-April, Arkansas Governor Sanders signed a bill prohibiting step therapy, a practice that requires patients to fail on a less effective device before accessing ventilation for both Medicaid and commercial plans. The bill mandates that all MCOs reimburse NIV at 100% of the state Medicaid rate. Arkansas now joins Louisiana and Oklahoma in enacting similar legislation, and other states are actively considering the comparable measures. I've said this before and am barely repeating today, when there's pressure to create efficiencies in healthcare, that plays into biomed's capabilities. When there's transparency, overhauls, and more rules to reduce waste, that is also very good for us. And when more care is being delivered in the home, that continues to position us for success. I noted last quarter that we were looking for additional opportunities that will expand our product services and our reach to diversify patient types, as well as leverage a number of contracts we've built up over the years with our payer infrastructure and some diversification. Also noted that we thought we could leverage the trust we learned in the home throughout the country. The agreement we signed earlier this week to acquire Lehan's medical equipment for a base purchase price of $26 million checks all of these boxes and then some. We put a separate release out on this acquisition, so I won't tread too much of that ground again this morning, but I do want to highlight the strategic nature of this transaction. Leigh Ann is a nearly 80-year-old family-owned business, which has built up a tremendous reputation in the community of Northern Illinois and the West Chicagoland area with significant brand equity. They have specialties in respiratory care and women's health and sell other equipment that aligns nicely with us. They also have great relationships and contracts with payers in Illinois. The opportunity as we see it is to extend their business and women's health across our payer relationships and markets across the country. We also have the opportunity to grow their sleep and resupply business, as well as introduce our complex respiratory care into their market. Historically, we've had some time breaking into the Chicago market. We believe this strong feature and this exceptional platform opens up a key market with significant embedded growth. We visited Leigh Ann's offices earlier this week to welcome more than 90 employees to the BiMed family, and we're excited to see the response and eagerness to grow together. We look forward to sharing more of our plans for this acquisition after it closes, which we anticipate in Q3 of this year. We're ahead of pace on 2025 so far, but we have more we want to accomplish. There are more patients we can serve and more hospitals and health systems that need us. For more on our operational and financial results for the quarter, I'll now turn it over to Todd Zender, our Chief Operating Officer. Todd.