Agiliti, Inc.

Good afternoon and welcome to Agility's fourth quarter and full year 2021 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'd like to turn the conference over to Kate Kaiser, Senior Vice President of Corporate Communication and Investor Relations at Agility. Thank you. You may begin.

Thanks, Jamali, and hello, everyone. Thank you for joining us on today's call as we provide an overview of Agility's results for the quarter ending December 31st, 2021. Before we begin, I'll remind you that during today's call, we'll be making statements that are forward-looking and consequently are subject to risks and uncertainties. Certain factors may affect us in the future and could cause actual results to differ materially from those expressed in these forward-looking statements. Specific risk factors are detailed in our press release and our most recent SEC filings, which can be found in the investor section of our corporate website at agilityhealth.com. We'll also be referring to certain measures that are not calculated and presented in accordance with generally accepted accounting principles during this call. You can find a reconciliation of those measures to the most directly comparable gap measures under the description of why we use these measures in our press release. To download a copy of the presentation that we'll use to facilitate today's discussion, please visit our website at agilityhealth.com, select the Investors section at the top of the screen, and then events and presentations. Finally, select the presentation titled Agility Q4 and Full Year 2021 Earnings Slides. With that, I'll turn the call over to our CEO, Tom Leonard.

Thanks, Kate, and good afternoon. Thank you for taking the time to join us as we review our results from the fourth quarter of 2021 and reflect on our performance for the full year. Joining me today is our CFO, Jim Pekarek, and our president, Tom Benning, who leads our commercial operations. Our results for 2021 finished ahead of our expectations and our previously increased guidance for the year. And agility crossed the $1 billion annual revenue milestone. Today, we'll walk through the factors that drove our performance throughout 2021, offer perspective on current trends in the business, and share our initial outlook for the year ahead. Jim will provide details on our results and our 2022 guidance later in the call. I'll begin with a few insights into our overall performance and direction. First, we continue to deliver on our commercial goals as reflected in our results for both the quarter and the full year. With the rapid rise and spread of the COVID-19 Delta and Omicron variants late in the year, we saw increased customer demand on our medical device rental fleet. which favorably impacted our equipment solutions results. Within equipment solutions, we also recognized the financial contribution from our recent size-wise acquisition. We continued to see solid performance across the rest of our business as well. Clinical engineering performance in the quarter was largely driven by new customer contracts and our ongoing work supporting the strategic national stockpile. Revenue from onsite managed services held steady year over year. On March 1st, Agility filed an 8K announcing a new one-year agreement with HHS to continue our important work, managing, maintaining, and deploying the federal government's emergency medical device stockpile. Tom Benning will provide additional details in his prepared remarks. With our focus now squarely on 2022 and beyond, I'd like to offer a brief recap on our strategy and the overall direction of the company. We have established agility as a key part of our national healthcare delivery infrastructure. Starting at a local level, we help hospitals, health systems, and other provider organizations efficiently manage their medical device needs, ensuring the availability of patient ready medical equipment whenever and wherever needed, including rights to the patient's bedside. The medical devices we manage, mobilize, and maintain on behalf of our customers are paired with clinical expertise and technology-enabled service capabilities, helping to drive down costs and improve patient care outcomes for our customers. With more than 150 local medical device repair and logistics centers, our teams quite literally live and work in the same neighborhoods as the customers we serve. We have previously shared that Agility's unique operations infrastructure puts us inside a hundred mile radius of more than 90% of all staff beds in the country. It provides us a meaningful structural advantage in how we access our customers and identify new opportunities, as well as a cost advantage in how we serve them. At a national level, Agility delivers integrated medical device repair and logistics solutions targeted at improving device readiness and availability and delivered at scale. Our national operations footprint uniquely enables us to serve many of the nation's largest and most sophisticated healthcare systems and provides rapid coast-to-coast support during times of peak or emergent need. Throughout our long history, Agility has provided the supplemental medical device capacity required for health systems across the country to meet the patient surge during each flu season. We've supported our health system's regional response to fires, floods, and other natural and manmade disasters by mobilizing teams and medical equipment on short notice to wherever needed. And over the last six years, we've been supporting device management, maintenance, and deployment needs on behalf of city, state, and federal government emergency response teams. Our work on behalf of these government agencies has been an important part of the national medical response throughout this period impacted by COVID-19. Agility has even become the partner of choice for many medical device manufacturers, serving as an extension of their own field repair capabilities to solve large-scale challenges, including nationwide medical device recalls. On top of our established history of consistent organic growth, Agility has demonstrated a record of successful tuck-in M&A. Our stated approach to evaluating opportunities is to overlap and extend, meaning we look to build on our existing capabilities to drive additional profitable volume through our national service infrastructure, continuing to grow our market size and share while always staying close to what we do best. In 2021, we completed two acquisitions that clearly illustrate this approach. First was Northfield Medical, nationwide provider of surgical equipment repair and maintenance services, which we closed last March. Building on the 2020 acquisition of Mobile Instruments, we combined the second and third largest independent service providers to expand our capabilities in surgical instrument repair and to complete our nationwide service footprint. More recently, we acquired SizeWise in a transaction that closed on October 1st A manufacturer and distributor of standard and specialty bed frames, therapeutic support surfaces, and patient mobility equipment, the addition of SizeWise clearly illustrates our overlap and extend model. And beyond the direct and near-term synergies, we're excited about the future opportunities that the SizeWise acquisition opens up for agility. Obesity is a national challenge. Across the continuum of care, these patients require specialized medical equipment and handling protocols, and they are at significantly higher risk for medical complications associated with prolonged bedrest. Despite the need, the patient population and the clinicians that care for them remain woefully underserved. Looking forward, we see a compelling opportunity to build on the SizeRise Foundation and deliver new targeted solutions complete with the local clinical and operational support for which Agility is known. More broadly, Agility maintains an active pipeline of M&A opportunities and the financial flexibility to pursue them. We'll continue to seek targets that can drive profitable volume to our national operations infrastructure, extend the value that we provide for our customers, and enhance our competitiveness. The final point I'll make today regarding our strategy is around the extraordinary resilience and predictability that we've built into our business model. As you look across our business, you can observe our connection to every phase of our customer's medical device lifecycle, as well as the balance of our business between the medical and the procedural sides of the hospital's operations. Financially, This serves for us as a natural internal hedge, meaning regardless of macro trends facing our health system as a whole or specific situations or challenges affecting an individual customer, some part or parts of our solution set are always in demand. I previously described this durable nature of the agility business model, which has been evidence in our stable financial performance. starting well before COVID and throughout the highs and lows of the pandemic, and now as we support our customers' transition back to normal operations. Reflected in our results is the resilience of our model and the essential nature of our work. We're proud of the performance of our teams and of the important roles that Agility has long performed in support of our national healthcare delivery system. Looking forward, we're even more enthusiastic about our strong business momentum and the opportunities ahead of us. Let me now turn the call to Tom Benning for his perspective on our performance.