MCI Onehealth Technologies Inc.

Good day, and thank you for standing by. Welcome to the MCI One Health Technologies second quarter 2022 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Nolan Reeds, VP of Marketing and Communication. Please go ahead.

Thank you, Amy. Good afternoon and welcome everyone to MCA One Health's 2022 second quarter financial results conference call. I'm Nolan Reeds, Vice President of Marketing and Communications. And joining me today on the call is our Chief Executive Officer, Dr. Alexander Dobrnowski and Scott Niren-Burski, our Chief Financial Officer. Our financial results press release is available online at the moment, and the other documents will be available shortly on cedar.com. I encourage everyone to download a copy of our second quarter consolidated financial statements from cedar.com. 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 of 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'll now hand over the call to Dr. Alexander Dobrynovsky, our CEO. Alex?

Thank you, Nolan, and thank you, everyone, for joining today. And I'd like to start today's call by providing commentary on the quarter, inclusive of key highlights on each of our business functions, namely our growing high-performance healthcare network and our technology, research, and clinical data initiatives. I'll then like to go into detail on our strategy and expand on our outlook of the coming quarters, after which our CFO, Scott Nirenberski, will provide the financial summary of our second quarter 2022 results, plus add further detail on the overall outlook of each of our core business functions. After this, we'll have time for a question and answer period. We are very pleased with our second quarter of 2022, Last year and the first quarter of this year were very important to MCI One Health, with the overarching theme being investment and improvement. Whereas we completed two very substantial acquisitions, we invested heavily into research and development, 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 in the back half of this year. With regards to the second quarter 2022 key highlights, I'm pleased to share that MCI One Health continued the momentum off of our first quarter, and we've had a very productive lead up to the middle of the year. Apart from achieving strong quarterly revenue, we also continue to execute a number of important initiatives that in combination accelerate our two strategic objectives. And to recap, 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 improving the quality of healthcare in Canada. And with regards to our clinical data insights and technology commercial efforts, I'm excited to report that our heavy investments made in research and development in previous quarters have continued to deliver material and now accelerating results. From a pure data and research perspective, we generated revenues of 1.2 million in Q2, reflecting our capabilities to deliver commercial value from clinical insights. This is up 508% over the same quarter last year. A major part of this commercial progress was secondary to the growth of sales of our rare diseases screening product, anchored by our subsidiary, Cure Health, and led by our president, Don Watts, who delivered very strong growth in May and June of this quarter. Further to this, we now have five separate clinical insight products, three of which are now commercially active, the latest being our data insight as a service product. Exciting progress has been made on this front and we anticipate continued growth in this very important segment of our business, specifically growth that targets the US market. Further to this, we previously announced that we had entered into a multi-year agreement with a global leader in data science and security. During the last quarter, we made additional progress with regards to our smart referral system to 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, 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. In our view, 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 yet been demonstrated before in Canadian healthcare. Unfortunately, this is especially important right now, as our healthcare system is in a real difficult state, a state of crisis, whereas it is also the responsibility of healthcare organizations in the community, such as ours, to step up and help alleviate the strain on our hospital systems. Now back to key highlights. From a revenue perspective, I'm happy to share that MCI One Health completed the second quarter with strong results, revenue for the second quarter increased 23% to 13.8 million over the same period in 2021. This has been 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 or key competencies, such as physician recruitment and patient care pathway optimization. We're seeing very strong growth in patient visit volumes, which are significantly on the rise from the increasing availability of MCI health services across multiple platforms. Volumes were up 10% versus the same period from last year, and this is excluding increases from our acquisitions. On that note, another important highlight of the quarter is that we have again had strong growth 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. We achieved record high volumes of specialist visits week over week throughout the quarter. With regards to physician recruitment, I'm excited to report that we have successfully recruited over 40 new physicians years to date, a run rate at the moment of five to seven new physicians added to our network per month, with 15 net new physicians added in the second quarter, and we have seen this trend continue well into the third quarter. With regards to highlights from our Corporate Health Solutions Division, We added another 20 corporate health customers in the second quarter of 2022, including one of Canada's largest retail distributors and a world-renowned private education institution in Toronto. We are expecting a re-acceleration of growth in this division as we continue to expand services with now also a national purview. We also saw strong continued growth of our executive concierge health program. And from a research perspective, our clinical research organization currently has 15 active clinical trials and screening engagements underway. Throughout the first quarter of 2022 and still into the beginning of the second, the Omicron wave required great effort to deal with by our physicians, nurses, and clinical support staff. And I'd like to take this opportunity to thank our staff for their efforts as the stresses the pandemic has put on our healthcare system has been nothing short of extraordinary. That notwithstanding, we've been experiencing month after month growth in our patient volumes, in our base business of healthcare services, and also in our data initiatives as our clinical staff are more engaged and available for us to make progress on this front. Now I'd like to make a few brief comments with regards to our strategy. At MCI One Health, we remain committed to our mission, as I said, to make healthcare more accessible, affordable, and ultimately safer. And we have two key objectives The first is to continue to build on our high-performance healthcare network. Our healthcare services and clinical insights flywheel, as this allows us to keep capturing considerable network and revenue synergies, all the while providing our patients more options, faster access, and higher quality continuity of care. Further to this, having deeper health services offerings 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 and actually catch disease earlier. Execution of our plan has resulted in our business evolving from what was a traditional brick and mortar clinic group as recently as early 2020 into one that is technology focused and is high growth and generating higher margin revenue. As our theme in 2021 was investment and improvement, The theme for 2022 as we continue into the third quarter is growth and scaling. We expect to continue to accelerate total company revenue growth in the next few quarters of fiscal 22, and we will accomplish this through organic growth of all our business units, plus considerable focus on executing our data-driven commercial pipeline. Plus, we will continue to execute on our robust pipeline of M&A opportunities. I'd like to turn the call now over to our CFO, Scott Nierenberski, who will review the financials for the first quarter of 2022. Thank you, Scott. Thank you, Alex.