Greenbrook Tms Inc

Good morning, ladies and gentlemen, and welcome to the TMS second quarter 2022 financial results. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for a question. If anyone has any difficulties hearing the conference, please press star zero for the operator. I would now like to remind everyone that this call is being recorded on Wednesday, August the 3rd, and I'll turn the conference over to Glenn Axelrod. Please go ahead.

Thank you, Joanna, and thank you, everybody, for joining the Greenberg TMS Q2 2022 Results Conference Call. As noted, I'd like to remind you that this conference call is being recorded today and is also being webcast on the company's website at www.greenbergtms.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 any additional questions can be directed to the company's website or to the company's email at investorrelations at greenbrooktms.com. This call contains forward-looking statements which reflect the current expectations or beliefs of the company based on the current 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 to differ materially from current expectations are discussed in the risk factors section of the company's annual report on Form 20F for the fiscal year ended December 31st, 2021, and in the risks and uncertainty section of the company's management discussion and analysis for the period ended June 30th, 2022, 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 CDAR, EDGAR, and on the company's website. Any forward-looking statements speak only as of the date of which it is made, and the company disclaims any intent or obligation to update any forward-looking statements unless required by law. I'd now like to turn the call over to Mr. Bill Leonard, President and Chief Executive Officer of Greenbrook TMS, and Erj Lobster, Chief Financial Officer. Go ahead, please, Mr. Leonard.

Thank you, Glenn, and thank you to everyone for joining our conference call and webcast today. During Q2 2022, we achieved record quarterly consolidated revenue, as well as our highest quarterly treatment volumes and consultations performed to date. Despite a tight labor market and the uncertain macroeconomic factors, which proved to be challenging, we are very excited to report a record quarter, the successful recapitalization of the business, and the consolidation of two of the largest TMS providers in the industry. Quarterly revenue increased in Q2 2022 by 4% to $14.2 million as compared to Q2 2021. While treatment volumes increased in Q2 2022 by 7%, with 62,038 treatments performed during Q2 2022 as compared to 58,219 in Q2 2021. We also achieved a record high in quarterly concentrations performed, which increased by 22% to 4,318 as compared to 3,522 in Q2 2021, which we believe will provide strong momentum into third quarter fiscal 2021. 2022. We continue to be excited about the ongoing rollout of Spravato program, which continued through Q2. This program highlights and affirms our long-term business plan of utilizing our existing network of TMS centers to deliver new and innovative treatments to patients suffering from MDD and other mental health disorders. Providing Spravato to our TMS centers enable us to leverage excess compatibility in our existing centers thereby enhancing our profit margins. As of June 30th, the company has expanded its offering of Spravato to 25 TMS centers across the US. On July 14th, 2022, we completed the previously announced acquisition of Success TMS. As one of the largest TMS therapy providers in the United States, the Success TMS acquisition is expected to add significant operating scale and top-line growth and is expected to accelerate the company's timeline to profitability through potential near-term operational synergies. The acquisition added 47 TMS centers to our existing network, which are complementary to our existing footprint. We expect that acquisition has the potential to generate more than $30 million in consolidated revenues to the combined company on a full-year basis. We also believe that the all equity deal structure aligns incentives to build substantial shareholder value to combine entity. The company also concurrently entered into a credit agreement for its previously announced 75 million secured credit facility with Mandarin Asset Management LP and its affiliated entities and funded a 55 million term loan at closing. Using 15.4 million of the proceeds therefore to repay the outstanding balance owing under the company's existing credit facility with Oxford Finance. We believe this agreement has effectively recapitalized the combined business in an effort to move towards near-term EBITDA positive operations, accelerating our timeline to cash flow self-sufficiency. From a development perspective, as of June 2022, our footprint consisted of 144 centers in 17 states, up from 129 centers as of June 30th, 2021. As mentioned previously, the success TMS acquisition added 47 TMS centers to our existing network, complementary to our existing footprint, and brings our combined platform to 191 TMS centers. And for now, a more detailed review of the company's financial and operating performance, I will turn it over to our CFO, Ernst Lübscher.