Greenbrook Tms Inc

Welcome to the Greenbrook TMS Inc. Fiscal 2021 Results Conference Call and Webcast. All lines are currently on mute to prevent any background noise. I would like to remind you that this conference is being recorded today and this is also being webcast on the company's website at www.greenbrooktms.com under the Investor Section, Events. After the speaker's remarks, there will be a question and answer session. Analysts and investors are reminded. that additional questions can be directed at the company at investorrelations at greenbrooktms.com. This call contains forward-looking statements, which reflect the current expectations or beliefs of the company based on currently available information. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events that differ materially from current expectations are discussed in the risk factors section of the company's annual report on Form 20-F for the fiscal year ended December 31, 2021. In the risks and uncertainties section of the management discussion and analysis for the fiscal years ended December 31, 2021, 2020, and 2019, which is included in the annual report. and in the company's other materials filed with the Canadian Securities Regulatory Authorities and the U.S. Securities and Exchange Commission from time to time, which are available on CEDAR, EDGAR, and on the company's website. Any forward-looking statement speaks only as of the date on which it is made, and the company disclaims any intent or obligation to update any forward-looking statements unless required by law. I would like to turn the meeting over to Mr. Bill Leonard, President and Chief Executive Officer of Greenbrook TMS, and Ernst Lipser, Chief Financial Officer. Go ahead please, Mr. Leonard.

Thank you, Blue, and thank you to everyone for joining our conference call and webcast today. Despite the challenging operating environment over the past two years, our business continued to grow steadily with revenue increasing by 21% in fiscal year 2021 to a record 52.2 million as compared to fiscal 2020 and by 42% in Q4 2021 to a record of 14 million as compared to Q4 2020. We are extremely proud of our dedicated team who consistently delivers the highest level of patient care in a very challenging operating environment. Mental health remains a key focus in the U.S. with the right unmet need for the treatment at an all-time high, and we have the right platform to serve this need. We are excited about the ongoing rollout of our Spravato program at select TMS centers, which continue through Q4 2021. This program builds on our long-term business plan of utilizing our existing networks of TMS centers to deliver new and innovative treatments to patients suffering from MDD and other mental health disorders. Providing Spravato at our TMS centers enables us to leverage capacity in an existing platform, which effectively enhances our profit margins. As of March 31st, 2022, the company has expanded its offering of Spravato to 23 TMS centers across the U.S. On October 1st, 2021, the company completed the acquisition of Achieve TMS East and Achieve TMS Central LLC. which include the acquisition of 17 active TMS centers. We are very excited about this acquisition as it strengthens our presence in New England and in the central United States. This acquisition secures robust payer contracts, brand recognition, physician reputation, and a strong management team within these regions. We also expect the acquisition to serve as a foundation for continued growth within these regions and to realize operational synergies by leveraging our established infrastructure in adjacent regions. From a development perspective, we added 31 active TMS centers in fiscal year 2021, including, as I mentioned, 17 active TMS centers acquired as part of the Achieve TMS East and Central acquisition. As of December 31st, 2021, our footprint consisted of 149 centers in 17 states. And now for a more detailed review of the company's financial and operating performance, I will turn it over to our CFO, Ernst Lübscher.

Thank you, Bill. As Bill mentioned, annual revenue increased by 21% to a record $52.2 million as compared to fiscal 2020. And quarterly revenue increased by 42% to a record $14 million as compared to Q4 2020. Average revenue per treatment increased 5% to 231 in fiscal 2021 as compared to fiscal 2020, and by 26% to 229 in Q4 2021 as compared to Q4 2020. The increase was primarily attributable to three key factors. The normalization of the adjustment to variable consideration estimates driven by stronger collections, more favorable rates negotiated in established markets, and a favorable payer mix. Same region sales growth was 19% in fiscal 2021 as compared to negative 1.5% in fiscal 2020. Fiscal 2021 resulted in the entity-wide regional operating loss of only 300,000, a 51% reduction in the loss as compared to fiscal 2020. This is a result of increase in revenue offset by an increase in direct center and regional costs as a result of operating 147 active centers as at December 31, 2021, as compared to 116 active CMS centers at December 31, 2020. Q4 2021 resulted in the entity-wide regional operating income of 40,000, a turnaround as compared to the entity-wide regional operating loss of 2.05 million in Q4 2020. Corporate G&A for fiscal 2021 increased 36% to 20.7 million, as compared to 15.1 million in fiscal 2020. This was predominantly due to one-time costs related to financing and acquisition activities during the year. The loss for the period in comprehensive loss decreased by 18% during fiscal 2021 to 24.9 million as compared to fiscal 2020. From a balance sheet perspective, the accounts receivable balance remains stable despite the revenue growth, which as I mentioned, points to strong collections. We maintained adequate capitalization through fiscal 2021 with the completion of a private placement for gross proceeds of $23.5 million, a public offering for gross proceeds of $13.2 million, and the forgiveness of the PPP loan. As of December 31, 2021, we had approximately $11.9 million of cash on hand, including restricted cash related to the achieved TMS ETH and central acquisition, as Paul mentioned. Moving to our core operating metrics. We saw continued year-over-year growth in all key operating metrics. As of the end of fiscal 2021, the total TMS center increased by 19% to 149 from the 125 a year ago. Compared to fiscal 2020, the number of consultations performed increased 25% to 14,108. The number of TMS treatments performed increased 15% to 226,286. and new patient starts increased by 18% to 6,429. From a quarterly perspective, the number of consultations performed remained stable at approximately 3,500. However, the number of TMS treatments performed during the quarter increased by 13% to 61,416. New patient starts also increased by 17% to 1,667, pointing to stronger conversion rates in the quarter. As Bill mentioned, market conditions were challenging in fiscal 2021, but we remain optimistic as we are currently seeing positive trends in patient activity with operating conditions starting to normalize in fiscal 2022. Back to you, Bill.