MCI Onehealth Technologies Inc.

Ladies and gentlemen, thank you for standing by. And welcome to MCI One Health Technologies, Inc. First Quarter 2022 Results Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star and one on your telephone. If you require any further assistance, please press star, then zero. I would now like to hand the conference over to your speaker for today, Nolan Reed, Vice President of Marketing and Communications. You may begin.

Good afternoon and welcome, everyone, to MCI One Health's 2022 First Quarter Financial Results Conference Call. I'm Nolan Reed, Vice President of Marketing and Communications, and joining me today on the call is Dr. Alexander Dobrynowski, Chief Executive Officer, and Scott Nirenberski, our Chief Financial Officer. Our financial results press release is now available online. and I encourage everyone to download a copy of our first quarter consolidated financial statements from CEDAR.com, which will be up very shortly. Other than historical performance, our discussion today may include predictions, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as the date of this presentation. These forward-looking statements involve risks both known and unknown, assumptions and other factors, many of which are outside of MCI One Health's control, that may cause the actual results, performance, or achievements of MCI One Health to differ materially from the anticipated results or achievements implied by such forward-looking statements. I will now hand over the call to our CEO, Dr. Alexander Dobrynevsky.

Thank you, Nolan. We truly appreciate everyone for joining today, and I would like to start today's call by providing some detailed commentary on the quarter, inclusive of key highlights on each of our business functions, namely our growing high-performance healthcare network, our corporate health services unit, and our technology and data initiatives. I would then like to go into further detail on our strategy and also expand on our outlook of the coming quarters, after which our CFO, Scott Nirenberski, will provide a financial summary of our first quarter 2022 financial results, plus add further detail on the overall outlook of each of our core business functions. After this, we will have time for a question and answer period. We're very pleased with our first quarter of 2022. As last year was a pivotal year for MCI One Health, with the overarching theme being investment and improvement. Whereas we completed two very substantial acquisitions, invested heavily into R&D, we grew our data-driven revenues, we added significant scale to our business, added to our leadership and technology teams, and we are now targeting to be a cash flow positive entity by the third quarter of this year. With regards to the first quarter 2022 key highlights, I'm pleased to share that MCI One Health continued the momentum off our fourth quarter in 2021. We've had a very productive start to the year. Apart from achieving strong quarterly revenue, we also continue to execute on a number of important initiatives that in combination accelerate our two strategic objectives. The first is growing our high-performance healthcare network, and the second is executing on our data and personalized medicine initiatives. This then allows us to achieve our mission of increasing access, decreasing costs, and and improving the quality of healthcare in Canada. With regards to our data and technology commercial efforts, I'm excited to report that our investments made in previous quarters have continued to deliver results. We now, as an organization, have entered a new phase, whereas in partnership with one of the world's leading data analytics companies, we now have our data lake secured, fully accessible, and we are maturing five separate data insight pilots which we are expecting that all will convert into commercial engagements in the second and third quarters of this year. These opportunities are being finalized with top pharmaceutical companies, life science companies, precision medicine companies, and top tier university centers. These data efforts are being executed in parallel to the rare disease screening programs that our subsidiary, CURE Health, is growing. Further to this, on the technology front, we previously announced that we had entered into a three-year agreement with a global leader in data science and security. We have now made material progress with regards to our smart referral system to dramatically shorten the time between primary care visits and specialist referral visits for patients. This partnership will continue to accelerate our data strategy and disease screening, novel referral optimization, and other custom data and precision medicine initiatives. As I mentioned, throughout 2021 and into the early parts of 2022, we invested heavily in improving our foundation modernizing our healthcare clinic capabilities, adding talented and expert team members, investing in our technology and cybersecurity infrastructure, and importantly, adding a number of healthcare services and specialists to our ecosystem, leading to the culmination of what I call our high-performance healthcare network. We have built a first-of-its-kind model in community healthcare that is now demonstrating efficiencies and improving patient access in ways that has not been demonstrated before in Canadian healthcare. We've now fully integrated our two acquisitions from 2021 and the synergies for our patients across our entire clinic group are robust and synergy contribution is now substantial with revenue synergies being realized in the first quarter and now beyond. Now back to key highlights. From a revenue perspective, I'm pleased to share that MCI One Health completed the first quarter with strong results. Revenue for the first quarter in 22 increased 30% to 13 million over the same period in 21. This has been largely driven by the ongoing growth of patient volumes, material growth in our data-driven revenue streams, and revenue contributed by our acquisitions, plus significant success with other important initiatives, such as physician recruitment and patient care pathway optimization. We're seeing terrific growth in patient visit volumes, which are significantly on the rise from the increasing availability of MCI-1 health services across multiple platforms, including our clinic network, MCI Connect and telehealth, and from added convenience for the patients that come to us from our corporate relationships. Bonds were up 12% versus the same period from last year. Importantly, we're seeing not just more patients, but returning patients getting the comprehensive care they deserve, efficiently and effectively delivered by the integration of specialist healthcare directly within the MCI network. Our high-performance healthcare network is delivering on our goal more preventative medicine with continuity of care that creates a more satisfying patient journey. Another important highlight of the quarter is that we have had a doubling of specialist visits through in-network care, pathway optimization, and significant advancement in the rollout of our smart referral system that leverages our new data backbone. With regards to physician recruitment, we are excited to report that we have successfully recruited just over 40 new physicians since September 2021, a run rate at the moment of five to six new physicians added to our network per month. We expect this trend to continue in the coming quarters. With regards to highlights from our corporate health solutions division, we added 20 new corporate health customers in the first quarter of 22, including a program for a national retailer and new national insurance programs for Bupa Global, Falk, as well as launching new insurance medical services in Ontario to groups such as Sun Life. Additionally, MCI Corporate Health Solutions was awarded the tender for Metrolinx. We also saw strong growth of our executive concierge health program, resulting in a 12% increase in total membership in the first quarter. Further to this, our clinical research organization, Canadian Phase Onward, currently has nine client-sponsored research studies underway, with a strong clinical trial pipeline ahead that we'll be executing on in coming quarters. Now, subsequent to this quarter, and similarly to previous waves of the pandemic, the Omicron wave required great diligence and effort to deal with by our physicians, nurses, and clinical support staff. I'd like to thank our staff for their resilience, and on a lighter note, since March, we have seen week after week growth in patient volumes in our base business of healthcare services, and also in our data initiatives as our clinical staff are now more engaged and available for us to make progress on this front. It is in light of this recent growth that I'm confident in our abilities to be a cash flow positive entity by the third quarter of this year. Now, I'd like to make a few comments with regards to our strategy. At NCI One Health, we remain firmly committed to our mission to make healthcare more accessible, affordable, and ultimately safer. And as I mentioned, we have two objectives. The first is to continue to build our high-performance healthcare network, or in other words, our healthcare services and data flywheel. As this allows for us to keep capturing considerable network and revenue synergies, all the whilst providing our patients with more options, faster access, and higher quality continuity of care. Further to this, having this deeper health services offering allows us to achieve our second main objective, and that is to continue to build a much richer and deeper patient profile for each of our patients. By having a higher quality data profile, this is how we advance care to be truly preventative. As our theme in 2021 was investment and improvement, the theme for 2022 is growth and scaling, and we expect to continue to accelerate total company revenue growth in the next few quarters of fiscal 2022. And we will accomplish this growth through organic growth of all our business units with considerable focus on executing our data-driven commercial pipeline, plus we will be continuing to execute on our robust pipeline of M&A opportunities. Now, I'd like to turn the call over now to my CFO, Scott Nierenberski, who will review the financials for the first quarter of 2022.