AdaptHealth (AHCO) 9 Aug 222022 Q2 Earnings call transcript

Company Profile

Participants

Christopher Joyce	General Counsel
Stephen Griggs	CEO
Josh Parnes	President
Jason Clemens	CFO
Brian Tanquilut	Jefferies
Kevin Caliendo	UBS
Joanna Gajuk	Bank of America
Philip Chickering	Deutsche Bank
Whit Mayo	SVB Securities
Ben Hendrix	RBC Capital Markets
Mathew Blackman	Stifel

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the AdaptHealth Second Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chris Joyce. Chris. you, Thank

begin. You may

Christopher Joyce

of operator. the have AdaptHealth I'd ended In President everyone you, the like a to XX, morning, some slide AdaptHealth; earlier if the QX comments Investor posted Relations We'll supplemental a the not, release for XXXX moment, like conference Chief call our of Josh as today's and then I'd regarding Griggs, we'll copy received presentation Steve call Corp. have AdaptHealth. quarter highlight Clemens, on questions. website. Everyone prepared to of earnings from for Officer Chief release XXXX. this of that Thank to results section Officer should welcome of our Financial earnings the open June as Jason second is Executive AdaptHealth; Parnes, well

could remind the like regarding differ release because our statements begin, but a uncertainties of meaning our forward-looking those to information in we limited for and events. on Corp. AdaptHealth constitute subsequent Act. of obligation update Reform projected financial are materially in beyond. may in everyone no Before to and of our and at this not forward-looking the conference such which provided XXXX quarterly comments risk statements factors press statements to These length discussed this reflect filings. SEC from number Private are Litigation call that in results and include, Securities the call Actual within annual shall to results I'd have included statements

today. cash financial being of now Executive This and pleased Griggs. EBITDA, introduce such Chief Officer, certain reference which morning's call later Steve will are will to replay I'm adjusted non-GAAP we measures measures. call, morning's of this EBITDA a call available free and all on be our as flow, the recorded is Additionally, financial

Stephen Griggs

ended the our we Good for Thank June joining you as for you, morning Chris. results us XX, quarter everyone, review XXXX. thank and

AdaptHealth As they indebted success. employees our the day to are we XX,XXX for contributions always, to make every

our how we've provider. well AdaptHealth together, of move recent supplies take are our in expectations many of nationwide full-service quarter continue were HME for that we integrated second year quarters. experienced themes a to very the into advantage we were as As Results second our and have and and characterized scale the consistent operations AeroCare with same pleased on by

business the XXXX revenues achieve in record Sleep us million, the supply despite growth on pressures second of Our affected and for our margin sequential have confidence the that $XXX.X chain issues second strong and half in a us. trajectory improvement inflationary entering year, are of we our EBITDA guidance gives to the quarter that our

to Turning the business. Sleep

report it lowest to from since get thus began recall, to into quarter of Philips patients QX. its delivery capacity therapy we the have at accelerate recall June in up pleased the are XXXX hit end, with census more enabling We is to gain machines, XX% when and our XXXX. manufacturers us February greater our of onto level months in worked XX

be production schedule to we and more market before substantially the any started XXXX, early Philips our we have back expect not in increased become reliable increased setup from do see we While capacity has suppliers to to patients. the other have time and

normal market. the expect cost -- incurring as expenses, and supply we to returns other shipping additional we of decline those cost course, to have We incremental are, but

diabetes continue growth We our to with in double-digit Consistent market. the drive business.

most feel companies, growth the guidance issues. growth non-acquired to census continue by with non-acquired in pressures and is continued Sleep expect is business. the our remainder chain by company year-to-date increased in our driven business comfortable the year, largely our business Like Even For challenged we XX% overall growth supply for for X% of quarter, was and and solid year. the our the of our our growth though growth for for non-acquired we inflationary full in other diabetes flat

broad efficiencies. of as While of demonstrated been effect our for merger these our as labor vehicles pleased able use cost, holding steady minimized our impacted technology with I'm drive scale our have that to have is purchasing the a we've in synergies of of issues, and fuel pressures Further, results. including we revenue. the by achieve X,XXX the the the to shipping impact price especially, mitigate through labor AeroCare inflation of percentage these labor

quarters. over a As stable factors, these past has few relatively stayed the result of margin our gross

largely more are of our insulated since debt Finally, interest from than fixed. XX% rates higher we is

capital of to on for now update remained Parnes I our an further President, cost the our our favorable. over Josh and developments. details strategic turn will So has call

Josh Parnes

Thank you, Steve.

us better are products by at their the referring add the risk home more their that gaps arrangements. of We technology strategy these and and the need physician able as, value-based look to a able and care that the and sure to million out continue wherever for front, well services infrastructure the we On business needs of identify an capabilities what on range and X.X to can they we well they developing we that strategy HME broader getting hospital when to to do believe value traditional comprehensive patients position efficiencies in our of are into ways investments home need, keeping health to by optimizes address as we they help deploying In of driving and serve. to were that patients leverage to payment our journey extension offering We outcomes it, advance model addition as beyond offices. are make patients patients

physicians. value-based East we on centric technology pursue and managed second add value our and and will investments similar are two in new arrangements. portfolio agreements to HME we footprint with our on patients. payers For referring care technology one that creative for a and experience Coast committed complete quarter, This with example, signed We existing remain offering, to the West experience during to based improve transform the patients, simplify leveraging our and the the and product continue will our for the our both payers, one payers geographic to Coast patient we

e-prescribe hassle to eliminate continues our allowing them paperwork easier to of outdated as make and the by our platform error-prone health methods, providers home example, fax. for referring For such and ordering

where quarter-over-quarter to well adoption continue see We X.X%. rolled out, greater growth than in regions the as XX% technology this as is of

by new resupply all digital orders Our via of electronically experience providing communication. patient choice were and QX portal. of Approximately improving our diabetes are PAP processed capabilities channel XX% e-ordering patient in

satisfaction every greatly in providing system interactions in transparency order platform e-delivery this results, address our customer delivery, real real time This to patient technology. and tracking. by rate time increases Our for facilitates to any branches of allowing real-time deliveries XX% enabling concern leverage survey patient more also order QX timely.

health for believe combined and important addition digital environment. prescribing, delivery current which improving our we experience for In to operating is particularly users, platform ordering control expenses, the given the inflationary

to the continue for we allow that we gain our to keep even technologies accessible share these to health within broader providers, continue line making and patients as costs will us to more volume scale We easier home payers, in believe and health continue grow. industry. can home By and and

greater improving and Clemens will payment the door tools our road, that, collaboration these operating satisfaction, call down open proprietary alternative both the review our As I'll we help arrangements. the payers the CFO, for foundations with to financial efficiencies on are pass over patient our Jason as look our to With as to well results.

Jason Clemens

a quarter the Good for expectations, capital our again ongoing the pleased second and ongoing operating results, the of of discuss discussion outlook. call. I'll to joining thank conclude with XXXX despite and impact challenges. Thanks, flow adjusted consistent with supply performance We deliver Philips and chain and recall, inflation revenue our you morning and EBITDA our cash Josh. were internal allocation

million, is AdaptHealth quarter For outperformance growth the XX pleased Total representing PAP XXXX, the particularly continued non-acquired XX, in revenue rental our faster Sleep, second ending far second quarter. year-over-year the business than a net company the of was our in category. of we reported XX.X%. resupply largest by with basis $XXX.X PAP product We In growth quarter first were points growth quarter. June for the forecasted. census decline in growing of

categories diabetes for the to for company our that entire will X% revenue achieve continue but we non-acquired topline guidance and believe missed respiratory Our targets, the slightly full year.

to chain the have supply been to ongoing our pressures challenges, a are We degree. from have we these great very and merger AeroCare scale efforts inflation and proud that but resulting efficient the and not immune become offset more synergies to

of goods, revenue against the which as fuel quarter. Specifically, includes and cost held a steady first of percent freight

confident remained we higher expenditures demonstrate that We operating mix Additionally, surpassing from flow XX.X% million guidance, the model. by revenue. flat that second our capital three against compressed of as EBITDA out decreased are labor sales, leverage market, into which operating with for flow impact away Free cash from our the as of sales less the from results margin quarter, cost rental also toward quarter revenue the our by margin and cash already temporary wages benefits shift million driving the adjusted defined was operations despite midpoint, and our remain payable. a percent XX.X% revenue of as we a line for $XX.X representing achieve quarter. salaries, in accounts believe our inefficiencies We more of planned, tough we will guidance inventory expenditures days first Capital we revenues. expectations. DSOs converted reflects full-year $XX.X business accelerating at and that implies We were

million pleased leverage So unchanged covenants months quarter, net we times $XXX of and XX essentially the revolver trailing we X.X with leverage and had X.X defined under of the very times. at cash an undrawn our At bank are with end of as cash performance.

authorized As repurchase a of share Board announced, our program. previously Directors

repurchased we've for quarter, second program. $X.X the shares this pursuant During to XXX,XXX million

guidance. to Turning

over acquisitions final up to does million. before now and the for it EBITDA million have provided $XXX in we back our noted from that are previous pass with guidance billion maintaining I'll periods, include release, yet the for of press outlook we As billion call Consistent to some $X.XXX $XXX last $X.XXX contribution Steve Q&A. not open revenue we the of quarter not thoughts for to adjusted closed.

Stephen Griggs

Thanks, Jason.

Over the highlights AdaptHealth" operations website you one year, AdaptHealth, our together to the AeroCare visit encourage on the AdaptHealth. of would our past which of have of legacy accomplishments come video, from I organization. fully as integrated click the employees our Are "We many and many our acquisitions and

would to our I commitment live to again, our for their thank lives. empowering best mission patients their like of employees our united to XX,XXX So

how our company are shareholders. Day opportunities XX, leads our Markets for significant demonstrate We our when to to create our will do commitment and this and superior pleased results announce team Capital on September

open please and the the questions. years operator, present current for how will the we opportunities horizon. for unique next We are line beyond demonstrate specific targets preparing few With time achievable for the that,

Operator

you. Thank

We will now [Operator be conducting session. Thank you. Instructions] a question-and-answer

question proceed Our Jefferies. is with question. from Brian first Tanquilut Please with your

Brian Tanquilut

good my I morning. first guess for question Hey, Josh.

been weakness, how any sort the diabetes. driving the thinking in But You know that? called always on maybe out recovery thoughts or And I you share And in that's that is strong spot the a can for shortfall just segment you of guys. what relative about color you're line?

Josh Parnes

Thanks, Brian. Yeah.

So months much well of six is there we're general, concerning rate year-to-date last a had to the kind where as seeing look acquisitions year like, first that movement in we having this Last year. not right on performing and on some from are quarter-to-quarter acquisitions growth at the I market at were now. we see up not the is We of a where quarter-to-quarter think, there. year kind of with do lot the of as that's overall came our we of things we're general, pretty in in forecast. going this obviously, line in happy affect where depending kind structurally and But ramping way anything resupply, generally

Brian Tanquilut

with in Jason. then but said back I just recovery? going and wait little prepared that operating the expense the that that any and ability line as to lines remarks your G&A thoughts it. line bring your overhead the a for or basically Got with And bit guess we I in is forward you expectations, maybe should sleep came in top leverage diabetes know for comes down

Jason Clemens

Sure, Brian.

technology, as So guess, infrastructure I referenced or e-ordering we've also e-delivery specifically G&A, to upgrades you technology Josh two the in as about spoke might our ago referenced well quarters OTL we planned the platform remarks. for Oracle, recall, that his investments within

spent be So when we for on we’re time that also in to add X% kind planned for had backs to about at related of revenue transaction you And G&A. costs. that of account number. spot

planned of end until wouldn't these out I any investments. but So are leverage again, the expect of next operating year, G&A

are business. of part out very to get these We confident investments are the core operating going leverage of the

we And ones. smart they're think so,

Brian Tanquilut

you. Thank Awesome.

Operator

Thank you.

is with question from your with proceed UBS. Please Our question. Kevin Caliendo next

Kevin Caliendo

supply. in it this of you my taking to on your bit the about a that wanted just for things was terms thanks the How quarter an now how of more it us sits to you work year little of up does maybe able that more compare gave or you're sounds be a backlog me like loosening were and time in expected the Thanks, a to I you and you had question. think do ask last backlog are where versus through that? big than little half, might that how before where suggests bit getting second backlog, to maybe much patients commentary so update ago you

Stephen Griggs

Great is This thanks. Yeah, question. Steve.

but the quarter in what month set of past to its quarter we able So able this first least to level, the new we've been up this get generally as have in backlog and referrals. been maintained at

we the successful pretty that So have backlog quarter product stayed, available. as third look is a more

revenue the see to continue those first for the compounding compounding see months just effect grow So ResMed market ups considerably helped has resupply CPAP also. in and other what with suppliers. Then then that effect it's -- ahead increased cloud suppliers and our with is on on both their can the to rental definitely if revenue the coming set card ResMed our nine as of then that certainly the you other revenue, continue of negatively recall. you've expectations, and of

Kevin Caliendo

I I getting we you, had coming M&A further does done you of to are make because six done? somewhat supply comfortable think, acquisitions in if year-to-date, deals about back been that easier to getting you the know I know terms market, more hamstring it going that do forward,

Stephen Griggs

certainly that factor was yes, there. in big Well, a

we think more looking and considering I acquisitions more. So be for will those

too. conversion. Oracle was in part the we past That of we're activity caught did think on XXXX. I the up it Getting all

shape. good pretty in we're So

attractive, so, year. of half were first more And much if something we than attentive be we that's think the we'll to it I see in the

Kevin Caliendo

Sounds good. Thank you very much.

Operator

Thank you.

next your Our proceed with is of Bank Gajuk Joanna with question. Please from question America.

Joanna Gajuk

Thank morning. you so good Hey, much.

of growth that on for continue So growth the X% first full-year questions, so I a follow-up also the the to guess, you couple expect. organic

than maybe X% terms of before So talk to for you like business organic, any little about, bit about expected, there is the so talk can how sounds a Sleep X% change expectations things I tracking because guess, the decline in better it I your year.

inside stand of So, guidance kind where you versus that for specifically your Sleep,

Jason Clemens

that. Hi, glad Joanna, take it's Jason. be to I'd

So on pre-Philips we're that expected second it year-over-year. in a growth you supply first, that had period comp. I'd roughly call part a out really against of to is mean, I comping mean, market. big the be was of a terms of that that, recall, I quarter full non-acquired PAPs can't we flat the

a from aspect, they’re comparable So technically period. operationally, a it different very period just is financial but

QX. expected had for we So flat roughly

through within on Difficulty] to And continuing on so bit and mean, of highlighting with. mess topline a overall, to off, QX, respiratory lighter. a had pleased product I expectations against I a a really internally of we're roll was growth, diabetes. our respiratory. mean [Technical mean, diabetes, a XX% miss I slight tremendous bit we QX when then census, linesX related picture, Respiratory impact the we bigger internal the COVID are within So we But

our So, about I internal had the on your the absolutely question. Steve other expectations. hand, referenced mean setups, with talked that. Sleep we to outperformed We

month it. are even July We good -- through we're feeling of feeling the about

continue about slightly know outs. ins and if reason we gaining we make don't they We year feel that, confidence Sleep perform. the difference. that if we're and outperform full the do, respiratory delivering to the for diabetes will under But a the have strongly so, X% And will few is up so and

Joanna Gajuk

guess sound PHE on -- that guidance, are extension of good That's Great. to million? couple I And hear. the the that

Jason Clemens

that call. we the in that Yeah, done million think $X we Yes. that $X billion had on alone, $X since is Frankly, to the to a last referenced $X way a to quarter, million have $X no was that M&A there about previous million business, calls. million

aggregate, for the a important didn't the that So the that guidance. But tailwind we we just will in QX. is threshold felt was raise have to that it that hit

Joanna Gajuk

Great, adding on the you've sounds are hard And it more question, you purchasing for a bigger that, of like additional us magnitude give already thing contracts thanks good that. and of terms that's flavor give the expectation willing flavor based guess, you [indiscernible] the pushing I part business. that in and value bit to Can you're don't hear. to just maybe the you. margin of how of contract in really the revenues big Thank know aggregate -- I terms a us also if and here? for for without to like the and in maybe little

Jason Clemens

then think contracts. Hey, framework, Joanna pass of folks start Josh the . it is on those kind to to for side and on the math I'll we of understand I'll which important

And about of kind in terms revenue. the based our X% fee-for-service were of so, arrangements the arrangements for of non-traditional business, account value of percent total

good pleased part payers is we We very margin of offer question and with the margin that overall are the profile, contracts and these benefits is stickiness with the patients. rest that company. value the But to to of portfolio, very of the of because your the very, profile for consistent the the

little So more. I'll pass to to Josh a explain

Josh Parnes

Yeah.

just little on touching So a more that. bit

kind is So lot opportunity, generally a from the as these cycle perspective, long. the pretty of of a contracts, of you macro in know, sales terms

of some able allows others continue a think arrangement out. and to been here our and us I and the is unique these of lot A directly of a that's for risk ramp. some while ability internally these offer to new that, on online we kind kind technology with to up to value-based So cost it payer and of build are the our that with pipeline leverage a is what happen have take And lot discussions savings continue be matching contracts to come patients. of to

you'll on the lines, product X with as we initially Phase where kind product take we them value more along. a one multiple line you and based us into necessarily that go lines feed period, of further fact but not So a allows to have product pilot, pilot get that arrangement

opportunities we'll time and said, initially to on these push ramp exciting, you to continue other look but to over again as, look continue So for front. as that well for like

Joanna Gajuk

Thank you so much.

Operator

Our your Bank. question. with from is with Instructions] Deutsche Please next Pito [Operator proceed Chickering question

Philip Chickering

good taking And Hey, I product you growth. guys. growth of But can the organic Thanks the mentioned division for walk through morning this, the and rate and back if what questions. organic the assume organic X% us half to get my apologies growth of the each missed XX%. during XQ you diabetes for year you in

Stephen Griggs

Pito. Sure, Yeah.

running diabetes guidance. light So we've included touch the against a that XX% in got

and we QX don't XX%. today, potential down As confident do above high-priced are I that be enough say to those stand will QX product. we're think and a here that. I we stand know recession mean,

have likely a we very there from we that in overall is a believe it's recession, potential if drag, insulated So but portfolio diabetes products.

rolling a that So to will probably close it that late talked we're X% Again, respiratory. terms faster, In misinterpret off, know we XX%, COVID they respiratory, don't that's running bit we're think of a about beat little going get but to QX. I as to we rolling mid are census don't that light. within We lap we're going don't to

guidance. QX line, Sleep on X% X%, maybe we've think very a line, lines, a in other I The going running were which big X% a don't for news be so the of had rate with we're when Sleep. I over But to thrilled I against I HME handling. at about I we know the that. think to maybe touch that feel mean comfortable negative in projected pretty mean think delivery. expect we it's minor forecast that, for the I that we mean we it's I difficult overall product a that growth % anything back period about. a We for beat to we quarter comp we we're And in to so terms we comparable everything QX, mean Sleep and negative is produce we slowdown. light. touch very talked back X seen losing electives, were there. positive non-acquired

we're comfortable continue, So X% if the year. full themes with for the very

Philip Chickering

in we the So implying growth mean, that's XQ just X the in about, back XQ, That's should sure X% think points to make right? that. basis in I rate and range right of X.X% year. organic half with of we

Stephen Griggs

Correct.

Philip Chickering

remind is the [indiscernible] then that fair line how me growing? Okay, of the in is lines. is enough. and what what of other sort revenue At [indiscernible]

Stephen Griggs

Yes, sure.

systems that We've to run that happy what's of We've to included infusion item, I'll in us. that’s So think very for with for orthotics, a and which business in we've continuing in job up months, that services. stable there are we hospital in very nice of a it's businesses essentially mean we've are line. growing companies I admirable interested those acquired rehab well-known last XX value operational of guys that little Hospitals discussed our just product customer and within steady as the The a a the with but I We've pass detail, them line signing product very, got arrangements is based that we're more rapidly starting terms of they've been off little it. up a got grow. built there new more to also done of in very is products together. collection line and business from over business. very infusion an portfolio and is

be discussing, And growing think to so you're the bigger. that the that We some visibility category out to we seeing those -- reasons quite do break next some gets mean of other I that give a bit. much it won't I are

Philip Chickering

expansion? what much. half X of the expansion. guidance Okay. points to margin of the basis implies the X of so year us basis key for through And the walk points margin then last Can the you Thanks question back drivers here, just

Stephen Griggs

sure. Yes,

discussed -- I that's the is mean, margin, rental, just which XXX% that previously. equipment, acquired lines. adjusted of the is true think EBITDA because we the CapEx some essentially coming mean is cost Sleep I the variable this there I So is

scale as the huge mean the just into in the particularly year, businesses reset just year you that has later change lot do factor to parts resupply of got we've at get cut beginning to QX. the new change or of I making Next, QX, and/or are the of the to over the insurance of on changes. with -- patient deductibles, carriers employers account set employers a in

you And dollar of variable is, see cost ensuring the we've it's so patient structure of And essentially quarter. the the behavior just fixed a what extra that got health to huge they every changing. In isn't are spending the wisely. wallet deliver, meantime, cost but care

of So always a natural dynamics. of driven the course the enhancement primarily progression by we have year, margin over those

Philip Chickering

guys. much so Thanks Great.

Operator

Thank you.

Whit question. with Please question is from Our Securities. with your Mayo SVB next proceed

Whit Mayo

I the thanks, might are a we questions maybe through Jason follow that different Hey, on year. last mean, sitting way. where halfway I is

feel where up the out be you range, to the there. you're mean, mean, midpoint, the tracking the flat you like maybe range over I you're just your to like end, do a You've trying high-end, feel on wide in low be end temperature looks I tracking And XX%. low you pretty got high-end to take closer year-over-year within could the the

about just the you where or I color So how feel you're guidance help any range? within don't tracking around know

Stephen Griggs

straight mean thing, where guess tracking. I Yes, mean, we I I I'll down give middle is Whit. the answer. expected you are sure probably an

with of throughout year, the balance that of the gives we change that Now were sleep and performance could the takes the kind course, in QX. thrilled of

say supply arguably right diabetes, bottom be we is remain both here at believe top and/or which equal think all if we will, We we today, would that as steady then a stand as line. mid. tailwind, and goes. line if So of going and it steady she factor kind to certainly remain increases, we're I next things that's are

expected, with we Now that's more the the Well, is feel is some that's say where more will manufacturers do and indicated recession accelerate and if obviously we second of here to a to has the comfortable today, drag But business, we in downside. mid that's on happen. as they I'd as than good believe the stand half diabetes.

I anything you add don't got on to Josh, know, if Steve, So, that?

Josh Parnes

I be big No, swing think continue the the the PAPs. of could

a remember, December right we we October, we November, should we're you great for As are our month, expecting and Last allocations our know here, allocations a pitiful. year, sit boom month be don't great December. -- was August this July but and if September,

feel lot like more to guarantee But lot been not to they're a willing suppliers we that's So and of corrected confidence. us. a have anything

have So few least next to for that apprehension on at we still months. the live

Whit Mayo

around prepared the you Jason, internal any as about makes Maybe more That days, there, talk of happening the bit came a definitely mentioned about AR sense. your flow? perhaps in some some the days down little M&A integration, remarks, cash three initiatives or on what's so. of just color sort of

Jason Clemens

is folks component, bid with question, because there sure. the jumping performance. Integration the I for we you were few And at as think referenced. on a Yeah, thrilled a then this is

and a or of over the But in might I also so following even XX, AdaptHealth to lot AeroCare mean X, QX was July to You tax XX for spiked single about a last had activity. XX recall, DSOs then year. acquisitions merger the of That that IDs we change brought we in.

so of business whole you've of lot from got a whole operating system. And lot on-boarding of just that a dynamic

to seeing as other dynamic want the a factors, QX what move seeing. you're I guys. Rev and big Cycle pay talk mean, patient delivering we're integrated you operation little we're that picture, performance we and the that's into So we've

Stephen Griggs

first and but we part the look of done continue new the but forward was job, process and our getting for and better in like better. certainly system getting to certainly to this that a is Well, And for an AeroCare new there. significant paperwork mean. all I this of do, how to used and we'd to that to better -- resolutions the incredible getting continue on better. get any for quicker, But that come RCM process works. to acquisitions Yeah, brag fantastic, flow is they've in folks just a of and a team. are the as much kind quicker, faster the faster, payer quicker, a They to process And company, to something and Difficulty] improve faster, paperwork the to [Technical

that job. so they're doing and great of we're again them And team a proud very

continued And year this results beyond. and for certainly so expect them throughout we great

Whit Mayo

Thanks Great. Okay. guys.

Operator

you. Thank

next with Capital RBC Our with question. from proceed Markets. Hendrix Please is question Ben your

Ben Hendrix

items on your and out e-prescribe where question could penetration the adoption Quick of govern maybe rolled platform timing unfolding in going guys. see of of that were margins? PAP in your technology mean thanks for discuss what platforms. and Hey, forward investments had and technology, your had gating adoption and XX% Kind Thanks. regions you mentioned that you your that you Can XX% resupply electronic. that diabetes how increase it's

Josh Parnes

Thanks. Sure.

Josh. is this So

As with that from team shifted of our e-prescribed to driving is sales an really physicians' working lot perspective, that technology management kind the doctor the you himself sales to has go and of reps from know and there. a side on the in introduce change offices

into lifecycle that e-prescribe that. a space change the As necessity HME you amount that of serving management to needs is really entire order, and go medical in therefore fair is of and to document know, the there training

case level. and this plus fact in work and about you the both that needs happen monumental the the adoption where at hospital think out pretty practices is So have that management at the of if we areas amount physician is XX% rolled change to

initiative that be to change. So really we're team and take able drive proud that the of very to

with a things: of is development resupply of two by and evolution number more front, one, I the technology patient. choice intuitive On diabetes, driven the that channel communication and the referenced gets lot the that as on e-order the and

more And or is item. is to somewhat patient baby back more getting see the gating that to where able number adoption digitally. of comfortable those But the little calls that drive to communicated day well. as postcards as aspect adoption communication and some customer drive population of we're when more categories comfortable So there bit being more product is where intuitive, change general as one, able categories population patient in some a being secondly, as then to -- technology ordering the is And or a a emails boomer is getting to and the there with gets you're or really where likes that a identifying patient to in from senior lot dealing channel of our product. management they're even perspective well used resupply of going and with the these of on ages, ordering really

Ben Hendrix

Thank you very much.

Operator

you. Thank

Our next with proceed Please Stifel. your Mathew from with Blackman question question. is

Unidentified Participant

been any Hi, want way. since on I quarter your to acquired M&A. the M&A just several Colin have by regarding last guys is wondering a on this if just appetite? million acquired at You but for $XXX follow-up you change the on during quarter, I quick was guys they I Community -- there's about to were Matt, million to $XXX historical the last did the announced XQ be we of the of think in should Surgical acquisition the year? hitting really you call, wanted inclusive end revenue

Stephen Griggs

tax it’s XXXX. integration purposes last upper an right the way you think year, is kind the on I but as -- factors. that of all for mean all it, I a last work frankly we've think That's focused in heavy to the can other been and of and lifting [indiscernible] of day about what done the mean I think Colin.

Unidentified Participant

a then Right. one segment. And the other quick on

is think that about a those think should business talked and really drivers growth hospice, be being home business is could infusion good what's question? more up ramping orthotics of that rate really You guys sustainable an Day here. and How about you realistic -- or Analyst we

Stephen Griggs

business Day, very of to of ley get that to side and it the systems an strategic we it it it, health but more It's is -- other business. to Yes. orthotic Analyst like

So that. we like

now low business our infusion still we've probably businesses, be of that. we're in an think acquisition. feet digits. just -- operations the have, in The growth The to the getting significantly I wet double that that grow right is we part on that will been going

alluded And cost that we these that low So health to, I we business. contracts system what as at Josh with pretty get we for get significant there. any have sales systems, all the wouldn't of bring these look a for kind stuff. really and All as health us. we these can better relationship plays expanded the then growth products into other to

excited else. anything what we're probably And so more about that's

potential for too. us has some So that growth

Unidentified Participant

back the Got it. very my Thank much in queue. hop taking I'll you questions. for

Operator

Griggs at closing the Thank to you. There further Steve floor to like over are back no questions any this turn for I'd comments. time.

Stephen Griggs

to who job few having the patients call again, of and on these like deal shareholders employees to we great and which of the also we patients not taking with our a Well, and appreciate with once thanks fantastic our of past to is And our and Philips their to over lives. care people appreciate just particular, now our all empower again. thank sticking to have the live the support our done years, pandemic, in just the support recall the best mission, but of

Operator

today's Thank conference. concludes you. This

Thank you your You participation. for may time. this disconnect

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.