Viemed Healthcare, Inc.

Greetings and welcome to the ViMed Healthcare Second Quarter 2025 Earnings 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Trey Fitzgerald. Thank you. You may begin.

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 and 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 discussed 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 place 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. Water 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 our CEO, Casey Hoyt, to get things started.

Okay. Thank you, Trey. Good morning, everyone, and thank you for joining us today. First and foremost, I want to give a big shout out to our more than 1,200 employees and publicly welcome our newest family members from Leigh Hands Medical Equipment. Thank you for all that you do to care for our patients, providers, partners, and each other as we continue to grow by its trusted place in the home. We have an incredible team, and each of you are making a difference in the lives of our patients. This quarter underscores a clear theme. Our disciplined execution of the long-term strategy is driving tangible, measurable results. We sustain impressive growth on our core in-home ventilation business, where we've established ourselves as a national leader and innovator. For the 17th consecutive quarter, we increased our active ventilator patient count at a strong and steady pace. That kind of consistency and scale doesn't happen by chance. It happens because we built the best in class clinical and operational model that addressed the deeply underserved population. We continue to expand our leadership in this critical area of care. At the same time, We're seeing even faster growth in our complementary product offerings, especially sleep and resupply, which have been long strategic priorities. These offerings were developed intentionally to meet the evolving needs of our patient base. Results are clear. Both sleep therapy and resupply have shown strong sequential and year-over-year growth, accelerating the diversification of our revenue mix and strengthening our market profiles. Building on this momentum, we are successfully advancing another layer of the strategy, expanding our addressable at-home market. The recent acquisition of Lehan Medical Equipment marks a critical step forward in this initiative. With Lehans, we're entering the maternal health space, further diversifying our patient base and leveraging Biden's national infrastructure and payer relationships to reach new patient populations earlier in their health care journey. At the same time, we're using Lehan's footprint to expand our existing complex respiratory and sleep offerings in Illinois and Wisconsin, just as we've done organically in other markets. Lehan brings a scalable platform focused on maternal health, introducing a new population for us. Its fulfillment technology aligns with our resupply model, and with our payer relationship that extends nationally, we are well-positioned to grow this service beyond Illinois and Wisconsin. This represents a natural and strategic extension, reaching patients earlier in their care continuum with the same operational discipline and compassion that define our respiratory services. Ultimately, our goal is to serve patients from the beginning of life through to the end and every stage in between. Our organization continues to become more efficient every quarter, supported by the fact that we've been able to enhance our growth while leveraging our cost structure. We are proud of our progress to date, and this has clearly become a story of diversification and execution. Now, let's focus on the performance within our business in more detail in the second quarter of 2025. Vents accounted for 54% of our revenues and remained a strong performing product sector once again this quarter. Vent revenue was up 5% sequentially and up 11% year-over-year. This steady, reliable growth reinforces the strength of our core business. Right now, we're seeing our fastest growth in the sleep physics. During the quarter, sleep therapy patients were up 15% sequentially and 51% year-over-year. New patient setups were up an incredible 72% year-over-year. We're focused on aggressively maintaining this growth trend with eight new sleep areas launched since the beginning of the year. We're seeing a similar growth trajectory with our patients in our resupply program, which was up 10% sequentially With the rapid growth of new patient starts and patients under therapy, we're expecting to see strong growth in resupply in the back half this year and beyond as these patients get forward into our program. We're also pleased to see an influx of patients transferring their sleep resupply needs to our program from our competitors. This is a signal that our care continuum is working efficiently and solves a real problem for sleep patients in Karlsruhe. While our staffing business was up year over year, For the first time, we did experience a sequential slowdown during the second quarter, resulting from a softened labor demand. This business has seen significant growth over the past two years, and we believe we'll be on a more normalized pace going forward as we close on contracts that will be fulfilled throughout the back half of the year. Last quarter, we discussed some of the new regulatory announcements that have been recently introduced. Now that the final rule, or what we anticipate is close to final, is in place on the NTD, I want to provide some color around what we're thinking. Overall, we're pleased with the NTD final rule. It's a major opportunity in terms of what we've been fighting for as a collective industry and as an individual company. The big win is that tried and failed approach on biopath and step therapy is both. That's a huge victory for patients because the MA plans have been leaning on the step therapy as a means to divert and defer using non-invasive ventilation on patients. Now, all the MA plans will have to follow the NCD, making this less burdensome for the patient and reducing our operational lift of swapping out equipment. The new NCD does require us to document and report usage metrics on the patient. However, we've been preparing for this requirement for a while, and are ready with our engaged care manager technology platform, which has been designed to help us document usage and compliance. The last point I'll make here on the NCD is that not everyone in the industry is ready for this. We believe the mom-and-pop operators who don't have the scale may struggle with this NCD. We expect this to lead to some asset opportunities down the road or possibly industry consolidations. This is where our business model, which emphasizes improving quality of life across the full patient journey, not only benefits patients but also positions us to operate effectively in an increasingly complex environment. We're pleased that CMS heard us on the patient's struggles and connected with just how effective non-invasive ventilation is for this high-touch COPD population. The industry is still working through a handful of specifics and open questions with CMS, but their responses have been very encouraging. AA Home Care noted it's never seen such an abrupt shift from what was originally proposed to what we ended up with as they acknowledged the patient concerns. The other recent news is that the potential return of competitive bidding for DME is now being discussed by this administration. As before, we remain well-positioned to navigate any future iteration of the program. Our view is that the more sophisticated providers tend to succeed in the competitive bidding environment. Although CMS is not indicated when the program might resume, typical 12 to 18-month implementation period following rule finalization suggests that the earliest it could take effect is 2027, with the possibility of delays taking it into 2028 or 2029. The good news is, thanks to the recent NCB resolution, our industry has never been more aligned and well-positioned to educate regulators and present solutions nationwide. Overall, we're proud to be so well-positioned in the current environment. This quarter's results reaffirms the resilience of our model and the discipline of our execution. We said we would reduce complex respiratory care, and we've delivered 17 quarters of consecutive growth in our four ventilation buildings. We said we'd scale complementary services, and sleep and resupply are now our fastest-growing segment. We said that staffing would enhance our ability to meet clinical demand across the organization while adding a new layer of diversification. And today, it accounts for approximately 10% of our total revenue with 75% of the offering supported by behavioral and social service needs. We said we'd expand through discipline M&A. Our successful integration of H&P and HomeMed proved that we had the team to do so. And now our transaction of rehab medical stands to prove we are headed towards another frontier of delivering on diversification to a new batch of patients and maternal health. This isn't just progress. It's execution at the highest level. It's proof that our long-term diversification was deliberate and our vision is coming to fruition. We are more confident than ever in our ability to keep delivering further value for our stakeholders. For more on our operational financial results for the quarter, I'll now turn it over to Todd Zender, our Chief Operating Officer.