MCI Onehealth Technologies Inc.

Good day, and welcome to the MCI One Health Technologies, Inc., third quarter 2022 results call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Nolan Reed, Vice President of Marketing and Communications. Please go ahead.

Thank you. Good afternoon and welcome, everyone, to MCA One Health's 2022 Third Quarter Financial Results Conference Call. I'm Nolan Reed, Vice President of Marketing and Communications, and joining me today on the call is our Chief Executive Officer, Dr. Alexander Dobronowski, and Scott Niren-Burski, our Chief Financial Officer. Our financial results press release is now available online, and I encourage everyone to download a copy of our third quarter consolidated financial statements from CDAR.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. We were 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 off to our CEO, Alex.

Thank you, Nolan, and thank you to those of you who are joining us today. I'd like to begin today's call by providing commentary on the quarter with a focus on key highlights on each of our business functions, namely our growing high-performance healthcare network and our technology, research, and clinical data initiatives. I'd then like to expand further on our strategy and also like to touch on our outlook of the coming quarter, after which our CFO, Scott Nierenberski, will provide a financial summary of our third quarter 2022 financial results, plus add further detail on the overall outlook of each of our core business functions. Before we conclude the call, we'll have time for a Q&A period. We are pleased with our third quarter of 2022. And as a quick recap, last year and the first half of this year were very important for MCI One Health, with the overarching theme being investment and improvement. Whereas we invested heavily into R&D, we grew our data-driven revenues, we added significant scale to our business via acquisition, added to our leadership and technology teams, and we are targeting to be even a positive entity by exiting this year. With regards to the third quarter 2022 key highlights, I'm pleased to share that MCI One Health continued the momentum off of our second quarter in 2022. Apart from achieving strong and consistent quarterly revenue, we also continue to execute 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 clinical data and personalized medicine initiatives. These then allow us to achieve our mission of increasing access, decreasing costs, and improving the quality of healthcare in Canada. Now, specifically with regards to our clinical data insights, research, and technology commercial efforts, I'm especially pleased to report that our heavy investments made in R&D in previous quarters have continued to deliver material results, with our risk-adjusted pipeline growing to just over $6.5 million of revenue to be realized in the coming quarters. From a pure clinical insights and research perspective, we generated revenues of $0.4 million in Q3, year-to-date revenue of $1.7 million, up 324% over the same period of last year, reflecting our capabilities to deliver commercial value from clinical insights. A part of this progress was secondary to the growth of sales of our rare disease screening product led by our president, Don Watts, And we've expanded our customer base to include a number of new names that are leading organizations in the life sciences and pharma industries. Further to this, MCI currently provides data insights as a service in six categories. Rare disease screening, complex and major medical condition screening, patient cohort building, clinical trial recruitment, and synthetic health data. In addition, in Q3, we have added a new data-driven product to our menu, that we have successfully commercialized our CME, our continuing medical education product. Lots of innovation is happening on this front. In addition, we previously announced that we had entered into a multi-year agreement with a global leader in data science and security, Palantir. During the third quarter, we have made continued progress from Q2 with regards to our smart referral system to shorten the time between primary care visits and specialist referral visits for patients. a very important initiative to continue to optimize patient access to specialist care. This has also resulted in a compelling increase in per patient revenue. This is up 6.2% compared to the same period in 2021. Now back to some key highlights. From a revenue perspective, I'm happy to share that MCI One Health completed the third quarter with strong and consistent results. Revenue for the third quarter is $12.5 million, an increase of 16% for the nine-month period ended September 30th compared to last year. This has been driven by the ongoing growth of patient volumes, growth in our clinical data insights, driven revenue streams, and revenue contributed by our acquisitions, plus significant success with other important initiatives, such as physician recruitment, which I'll touch on in just a moment, and our patient care pathway optimization. We're seeing consistent growth in patient visit volumes, which are on the rise from the increasing availability of MCI health services across multiple platforms. Volumes were up 8% for the nine-month period ended September 30th versus the same period from last year. On that note, an 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, and this has resulted in a material improvement in our per patient revenue. Plus, specialist revenues are up 9% in Q3 compared to the same quarter last year. With regards to physician recruitment, I'm excited to report that we have successfully recruited over 65 new physicians years to date. a run rate at the moment of five to seven new physicians added to our network per month with 20 net new physicians added in the third quarter. And we have seen this trend continue well into the fourth quarter and we anticipate that our physician base will have increased by over 20% by the end of 2022. With regards to highlights from our corporate health solutions division, we added 20 new corporate health customers in the third quarter of 2022, including Meridian, Cowan and Intermac in the insurance sector. We are expecting a re-acceleration of growth in this division as we continue to expand services and now also with a national purview. We also saw strong continued growth of our executive concierge health program and from a clinical research perspective, our CRO organization currently has over 15 active or in-pipeline clinical trials. Throughout the first and second quarters, the Omicron wave required great effort to deal with by our physicians, nurses, and clinical support staff And I did want to take a second to thank our staff for their efforts as the stresses of the pandemic that put on our healthcare system have been nothing short of immense, especially now in light of new pediatric stresses on the system. I'd like to make a brief comment now with regards to our strategy. At MCI One Health, we remain firmly committed to our mission to make healthcare more accessible, affordable, and safer. And we have two main objectives. That first is to continue to build our health services offerings, build on our high-performance healthcare network. As this allows us to keep capturing considerable network and revenue synergies and optimizations for our patients in the community, 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. And by having this higher quality data profile, this is how we can advance care to be truly preventative. I'd like to turn the call now over to our CFO, Scott Nirenbierski, who will review the financials for the third quarter of 2022.