APR - Earnings call transcript Q4 2020

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Operator

Good afternoon, and welcome to Apria's Fourth Quarter and Full Year 2020 Earnings Conference Call and Webcast. [Operator Instructions] Please note this event is being recorded. Leading today's call are Dan Starck, Chief Executive Officer; and Debby Morris, Chief Financial Officer.

Before we begin, we would like to remind you that certain statements made during this call will be forward-looking statements as defined by the Private Securities Litigation Reform Act. These forward-looking statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs, assumptions and information currently available to us.

expectations statements we occur to call. these to no after believe any revise reflect we are undertake reasonable, obligation this Although changes that of including discussed in cause detail in that materially Descriptions with these Factors more the the section filings to SEC, from are results Risk differ could statements forward-looking our of some the actual factors report XXXX, including for with the December the February annual XX, filed our for initial filings, SEC periodic offering and Form public our subsequent year the XX, prospectus in XX-K XXXX. on upcoming on ended of

found to please will non-GAAP on comparable and financial important press go Dan non-GAAP website. that measures relationship With addition, In ahead. believe historical evaluating GAAP financial measures in the note is on non-GAAP turn the be to most the Apria's over like be can measures discussing the are the the they in that company posted of between call CEO, certain that, Details company's performance. that these release Please measures reconciliation Starck. I'd to

Dan Starck

high our in the all year's joining the on from report Welcome We closed our to the you year patient call. EBITDA growth at the road out recent $XXX full during Chief process. our of financial results. of your fiscal XXXX. X% I'll XXXX. a in begin increase discuss on provide full later we CapEx, many I'm solid of care We believe detailed year for pleased the quarter increase and revenue thank us fiscal earnings equipment more results with thank financials a will grew over positioned To our XX% results capitalize to for XXXX. IPO this the that we setting. provided coming a call, grew less the fiscal the briefly grew review XXXX ranges end to And Debby Morris, touch our XXXX. well financial And and results fourth to the company afternoon and year highlights $X.XXX Financial XX% increase adjusted that $XXX in to indicate to a had over story. IPO EBITDA, the the billion, million, show. to on a interest tailwinds Apria on over is meet fiscal We you million, Adjusted these continued you opportunity home Officer, of

to improve mission start our For those overview with a the of to company. home. are call our to of statement the new is life quality Apria's Apria, you today like who at for brief I'd of patients

steadfast mission have We company's that and been on executing we inception, remain in the our since commitment.

occasion and this mission compassion us has our continue the with presented team the us in While year and resiliency rise unique past on to the of the allowed to difficult deliver to most Apria challenges, times. of

other national technology earnings this accomplished and improvement infrastructure. industry. our changing mix, vision we've our through seasoned environment in throughout implementing Apria many has including has post-COVID we the of that and team, as begins teammates, payer shape, service this and our capabilities X,XXX pressure excited leveraging future. to a take our management proud of has reshaped improvement and streamlining year, industries. DME growth, pricing as historical managed with We As through are the This along structure, a management steeped past managed team, well about initiatives, the margin we're product how our

equipment our provide infrastructure patients. other obstructive home apnea Our XXX treatment, home us pressure and respiratory allows to medical branches consistently and local negative to and nationally wound services, sleep scaled therapy equipment

behind as the positioned dig we to organic organization major advantage of us. that take accomplished to are we at M&A now care deeper That's home growth As as Apria the believe high to are what want events level, opportunities to now an but I as increases, well XXXX. well in during we consistent deliver price a compression shift

the relief We their best providing hospitals We made we keep am patients to made valve handle for we their circumstances Apria how beds are homes changes while now as XXXX, demand to at available were want how to in and crisis. to occurred the of the to increased health more for and a to over a early say I year number team of a COVID-XX to in ill therapy pandemic. into ensure of this operational changes responded oxygen adapted proud the And I positioned surrounding our act the unusual a lot critically patients. for

and and a to and each and and the cylinder XXXX on changes of compared these were bit largely A our changes safety the to to of over the XX,XXX branch supplies, employees, of non-frontline year, throughout paperwork with including filling, COVID of XX% services our procuring have and ago, sanitizing patient starts processes. quarter during oxygen to for of remote necessary PP&E appointment-only in to workforce they into calendar pickups operational we new moving over adapt fourth patients perspective, XXXX. the implementing organization's XXXX. in work provided our XX% XXXX enabling and equipment of the the quickly prebuying and effectiveness number implemented Just enabled but year wave to early with COVID-XX ensure were contact-free us earlier delivery we optimize year designed of a increased implemented

and on also were to equipment our in to most areas expertise leaned We need. they shift where logistics people

our as needs help around to the of increases For help the teammates Southern example, XXXX, travel California. around country to spring, the in meet to Northeast. moved surge locations most overwhelming from like crisis in we of volunteered end last we the the assets severe thousands York rental the face And places meet Apria the rest of the and at nearly in New to from the country order

fourth initiatives to series our transform implementation. of the specifically billing the to fulfillment organizational structure. the order XXXX, and started yielding strategy in upon immediate we process, Simplify which a Simplify, results U.S., Project quarter Before designed COVID of order Project implemented hit was pandemic

were The we in even value amid the confident the effectiveness. apparent pressures very these innovations of more its became pandemic. of So,

For example, to as enabled costs have effectively manage patient the COVID-XX. our flowed volumes more us year to due been our new variable throughout efforts

Project While, as Simplify growth pandemic initiative, the was initially conceived acceleration offset the revenue a of XXXX. impact any revenue did in

increases As oxygen we I significant starts. patient our mentioned experienced earlier, in

patient course will realize seeking we continue However, and onset XXXX aspects the by the in new Simplify’s XXXX, in starts flow project normal of effects sustainability. early in And of the prior of effectiveness we COVID-XX that over and normalize as other believe we in suppressed of in growth the therapies patient healthcare Project were Ultimately, the the health to system. decrease that patient the seeing volumes to COVID-XX. were our

organization and Looking rapid of a the adapt returned volumes whether move see year, ahead rebound pent-up to this course quickly demand. due positioned XXXX, patient gradually or we mature to as a to are well over we if

a we few next have stable the outlook regulatory for environment Additionally, years.

equipment. originally medical services of of substantial of subsequent many supplies. bidding we product and the in As companies supplies, its Due wound provide, for XX and a you for upon neither Medicare within Medicaid centers XXXX, medical services We as the beneficiaries providing program did Medicare Since implementation competitive of competitive to prosthetics, durable orthotics equipment, of embarked other are rounds the to continue when of for pressure the bidding therapy, which of bidding provide. braces competitive bidding provide. process around a braces, a largely that XXXX for will the aware, not some products have categories, and knee full to marked CMS we included which lack for for as contracts for the products CPAP product Apria, all in savings, back XXXX, award reduced home reimbursement XX and CPAP categories the some competitive bidding, the around until for oxygen, outcome were view two and access off-the-shelf CMS contracts bid positive bidding we we competitive negative were rates competitive off-the-shelf awarded only

neutrality in resulted with oxygen equipment subject a growth into technology. X, rate for competitive concentrators other the allowed for rate our a three this leveraging and evolving that of for reducing year removed the CMS oxygen From to that Budget execution, home outcome systems for rate products higher or has big oxygen were adjustments. take fix portable rate was reimbursement the around units, price transfill bidding Secondarily, namely this increase dates after reimbursement the from the neutrality neutrality coupled industry The for budget month, budget with traditional bidding technologies, equipment. rates oxygen some reimbursement CMS reimbursement adjustment era an will provides with for earlier permanently in and from effect a that rates picture, artifact service could stable for that and April oxygen the pre-competitive an increase be categorized on XXXX. competitive formerly the priorities buckets; XXXX bidding by

We gaining billing and and in collections source the administrative to operational aspects order, efficiencies of needs, our receivables the and business, and other execute referral will expectations meeting operational costs, continue managing on distribution collecting our processing, patient and functions.

that and service grow investments XXXX M&A sales we organically XXXX. into will efforts We in well believe made capability us both and in the and XXXX We through our positioned. has

time the patient growth a the organic system, our increase rate our and we The expect patient take census U.S. rate effect builds some to to healthcare patients new as grows. a more of on compounding organic normal flow returns in see will growth As increase. service

also XXXX, starting slowly. in active to become are we more We albeit expect in M&A

our an M&A throughout and drive QX, acquisition have continue year. Southern course California opportunities small pursue finally, We an have and leverage invested will tuck-in pipeline. closed in efficiencies. we to to team of the continually And We to expect active strategic operating already in the a technology in

strides for and We internal made in improved systems enabling have and increasing processes, our systematically workflow throughput. our teams

we daily flawless And embraced I pursuing will telehealth company, deliver service to organization, our an XXXX this there of Apria are heartbeat believe a XXXX. home. I’m performance the and challenging the And now of hard and at long patients made work They each our Debbie? base. I’ll was us beyond. our an and and patient in XXXX have provide financial mission thank review for I be our to looking their in past they continued but of help outlook and we dedication of and of am life and as a in over more members Apria. strides As turn benefits organization. year, call year. day, detail every our one improving to to lasting the every great part patients forward to this team execution honored Debbie for of quality our our for be resiliency,

Debra Morris

the everyone Dan, joining and to call for thanks Thank today. you,

QX revenues, and call XXXX, open net $XXX increased year Adjusted delivered and EBITDA SX around included year-over-year, the all billion XX% some I’ll the EBITDA increased to less at adjusted end our in adjusted income XXXX. we our CapEx. for less We income, highlights increased and full $XXX results XXX% share measures, XXXX of recently CapEx Before year-over-year. year increased $XX high year-over-year. adjusted including we patient the net questions, outlook and year $X.X million key revenue million filed then that share Net X% year-over-year. full of of on EBITDA range for of EBITDA full Full XXXX patient XX% equipment of million I’ll year

the spite to any provider-released received. regulatory $XXX to in shortly The million increased quarter return record funds we all Overall, of organic. company some our include a government management from we was of Net for was deliberate not do were remarkable X% which Apria. thanks throughout results and efforts the year. employees, as year-over-year, of and revenues effective the had cost XXXX fourth tailwinds extraordinary they of of allocated year the a all after COVID-XX, funds quarter Our

pressure year-over-year lines our up in in documentation as requirements Home surge, public new of X%, along the While setups three largely solid service fourth and services in revenue reduction following all new authorization surge, pandemic. COVID for buoyed down the was oxygen by up some result driven late by and post-holiday the collections. Other in negative pressure vents, COVID of strong relaxed a and slowdown the from up non-invasive was respiratory was lower sleep starts and sleep demand quarter. X% the with core collections during despite X% some a due to mainly emergency. quarter sleep strong cash due cash health patient was the largely Sleep in quarter there therapy during wound negative X%, and nevertheless headwinds patients And to patient was was the supplies wound equipment flows. therapy COVID despite experiencing

while ability Dan enabling us it nimble cost the our not our only and reliably more to As mentioned, Project patients Simplify more made consistently serve over with our meaningfully but has variable improved has control structure, costs. also

on and our robotics In of well create cost our continuous addition, as to reduce in investment deliberate focus improvement and as during automating further operating management our cost leverage. as continued revenue leveraging technology, workflow percent a including COVID and has

of from concentrators XXXX, COVID CapEx late less million surge required slightly adjusted EBITDA quarter. from increase QX quarter resulting the equipment while million due Our fourth up higher patient demand in increased the meet the of was significantly CapEx to year-over-year oxygen in adjusted in million. EBITDA cases was $XX.X in from XX% $XX $XX to the the

sheet. balance the to on Moving

correlates $XXX less times. equipment leverage to we December XX, of and debt. X.X of our had adjusted EBITDA million million $XXX cash This CapEx on ratio patient a in As in

our expect what QX, this sleep to see provide pressure and In in XXXX. outlook with to therapy surge some vents, other I color for with we negative we want and volatility COVID-XX equipment wound to in Turning services. oxygen year. continue slowdown supplies associated a on non-invasive and some

we collections, of Medicare strong in effectively. health and benefits reimbursement rates and cost PAG, continue our structure to see continue documentation the cash the public We relaxed manage terms to from emergency requirements,

nevertheless, adjusted the greater are generally revenue percentage therefore as EBITDA the from their net and are early for apnea, is a during our and provided therapy year QX guidance and such the of the given sleep deductibles during cost QX defer quarter record we, the patients due lowest our increased While of therapies having over that have IPO certain generally of a months to quarter process. responsible a may perspective,

to EBITDA expect of $XXX quarter of of we revenues million adjusted first net CapEx equipment $XX $XX less million, $XXX of and $XX EBITDA million. patient the $XX to million For million million, to XXXX, adjusted

CMS increased year neutrality Dan account for full the For rate budget we've by XXXX, IPO from to which that provided adjustment, removal earlier. guidance our during the the of discussed

uncertainty quarter guidance confident gate we the budget pace we sharing are the timing numbers and the COVID we are solid our nevertheless of recovery. given in the maintaining outside of out and first impact XXXX the of we're of While with a the full today, the neutrality, the around are prior

at outlook the continued believe results. through we to XXXX year. future communicate revenue We of due of the census. uncertainty of a ahead an to demand, unfolds occurs. whatever these beneficial or is example, remain uncertainty the the conservative should, around around when accelerate With public could and Both business, rental will of whether our will patient nature be would Likewise, events is be the and health recovery the of end costs our and We as COVID pent-up increase industry growth the the manage on further end time. maintaining until there growth our prudent sequestration this of will through as suspension effectively either confident in emergency as well

net guidance to of equipment such, year adjusted to of and less billion, the full EBITDA patient XXXX, $XXX our million $XXX increasing to $X.XX for revenue adjusted of million. million CapEx $X.XX $XXX million to billion are we $XXX As EBITDA

Dan the strategic acquisition As QX. closed mentioned, in we tuck-in

We solid to and acquisitions, business throughout pursue have which grow a expect our pipeline, XXXX. core additional we

I today, opportunities sentiment a capitalize To prepared We're on any upon. exclude to point. Our quarter, we're at footing activity financial ended remarks XXXX want first finishing out and good to our at close we that up Dan's echo hand. build this projections ready on a M&A to solid

to call the questions. we'll to our strong want patients throughout care now our taking pandemic. and the a thank Operator, employees also I open XXXX Finally, of such for for

Operator

Ralph first Citi. comes with Instructions] from [Operator Giacobbe Our question

Ralph Giacobbe

afternoon. Thanks, good

just First, I guess clarify. I to wanted

noted sort clear bump are could the had to yourself side. were just And if CMS in of on said just that if other conservative. removal like on I guess just wasn't that recent You the – is you that to guidance? including it or oxygen due what – on didn't of quantify you Or the included positive XXXX? budget cushion beginning weren't benefit you April I you leaving I X sounded you you neutrality.

Debra Morris

Hey, included Obviously, QX. guidance. in Ralph, we it our Yes, have it's Debbie. affect annual doesn’t it

in full you projected in the $X had we million year have and to in to recently our you it what it's included $X for the year, million So, similar the XXXX. issued report range for

Ralph Giacobbe

Got it.

goes COVID simply potential through if to fair? everything given Is $X to but $X So, flow plan, not to million the you're just that the is backdrop. choosing that million upside,

Debra Morris

we No, that are through. flowing

flowing We Because are you question? into repeat can guidance. it – your are excuse annual our we me,

process, was few and that announced budget provided increased took the we by for during it what was we then weeks the a IPO neutrality basically CMS So, have ago.

Ralph Giacobbe

Got it.

rate indirectly enough. commercial new as those Okay. able business well? rates, of be perhaps some the you'll Does Fair or either capture for your negotiations, where piece rates via impact CMS directly to higher

Dan Starck

impact Hey the right to not Ralph, that does What – continues send rates. payers is it’s does it opinion to up. Dan. commercial my going is prices message It the commercial directly

so, And any I payers. commercial neutrality, producing the impact community. it not would between competitive payer but outcome right through continues plus drive bidding, the results the think budget to the the that send savings it But Medicare of not specifically, does

Ralph Giacobbe

more, then just I And one if could. enough. Fair Okay.

Do to more you quickly how feet? active just get can things think Thanks. get back can sort a about try backdrop? competitive talk M&A normal, back Or you As their hopefully smaller you the do landscape? on to of see players

Dan Starck

that it M&A a see really down active and pretty backdrop currently, Well, we hasn’t much. slowed

go we doing for we get acquisitions integrations. through making – on getting really of of a start it’s and us, here pursue really memory the muscle and year, doing sure back, lack from term, getting a right better our with small the QX to the in deal foot as remainder started that started about more For and rest

think but now. slowly I industry build the M&A So, there’s we’ll pretty active here, right throughout

Ralph Giacobbe

Got it.

thanks. Okay,

Operator

Goldman Our comes next Sachs. with Perse question from Jamie

Jamie Perse

getting first about year. out like points first looks the I just that first to to of for minus the one the plus of and way. positive Congrats cadence about Good this with the year that afternoon, guys. points XX to and implies X, remainder basis start guiding on X% the basis you’re guidance for quarter wanted then XX the to

know budget Just the you through us the of some accelerate key wondering the half. could if in you drivers on that growth touched I talk back neutrality.

talked You year. XQ later being help of But of the from the that driver a remainder of you and Simplify the just expect about kind project growth the part in that bridge to acceleration year. the

Debra Morris

Jamie, about as XXXX forward? you’re talking we look

Jamie Perse

Yes, your guidance XXXX. for

Debra Morris

Yes.

out So, coming a if quarter. with what QX, you for gate look we’re strong providing we’re of at QX, the our first

there’s business, expect strong, And while continue seeing being in is the we’re to is to the QX some So, QX seasonality. normal not our typically, what significant we seasonality the lowest. have of

full the remaining However, said, guidance with we – haven’t up COVID as see we we in this we of kind as at time, we how year unfolds. just earlier met taken where we as when point you were

activity is normal QX our So, there’s the strongest. course, just still typically, of But could in a lot that occur.

So, we would see from about QX then slightly X equal QX, higher. just QX, the QX, and lowest, and

delay gets sequestration, through that should your as could quarter with unfold. year, that scheduled – July some since volume upsides expended well products. far about. Obviously, currently are more of answer There’s it obviously me, that assumed of that of that excuse emergency, that may occur extended further a that to occur, then the lot volume. we’ll we can and as So Does events fluctuate those health we’ve as lots that one extended, public the activity be how talked gets that’s it’s possible between could end. question? just the with as happen If There’s extended

Jamie Perse

guidance. margins Yes, a on I’ll just that’s for jump second, helpful. to again,

expanding had XXXX adjusted from any just roughly to in you Simplify there improvement some XX% things know of there if pieces is onetime question moving whether to That’s there’s talk could couple were XXXX. Your I in there from where I part for on XX% first implies occurring of term bone? But that. And I Are should you that EBITDA that margin, any the we meat was is in a years EBITDA margin. COVID? really should is know left business? opportunity just the be here what any thinking you ago. guidance guess, about Or big longer won’t a that be of we future? Project those as the to Or of there in the from more, XXXX second this rate piece margins? then about is, the thinking continue repeat is run

Debra Morris

I'll then part on and the Yes. the hit first second.

certain improvement our an margin with XXXX you yes, had you've as of XXXX. to costs. about may noted, as we the price, as others, for And can XX.X%. far far activities then ended and as as volume measure EBITDA we've So COVID, from precisely we far COVID And significant reduced recall, And we year as adjusted around as example, margins, impact. as XXXX, estimate

as say we of think on the we'd talked COVID basis, I So, kind about of adjusted IPO during a EBITDA process, range. the mid-XX% we're outside normalized in

including regard are – and So, there's were, could in as in for But XXXX to opportunity, part there's we higher, to events XXXX, we initiatives question. I that currently that as drive before minuses of at away, other so, the vent of been COVID of has kind We've health emergency, get extended. not in I which your been look sticking events noninvasive your go with sleep. pluses said, you where I Obviously, because assumed as along in has bit would some sleep the the slower we with little anticipated has other a mentioned, surging oxygen public products, with has with sequestration some continued. re-supplier

there's any you onetime precise wouldn't take that point. I could at out COVID So, this say

a more what's with – COVID on a happen. next bit to XXXX basis. see currently, of still the even in we'd we numbers, you over weeks normalized We happens of see how giving is where said – are few a our going And be what

Jamie Perse

ahead. go – the And Okay.

Debra Morris

to periods to proven can – the have was make pressure pointed there's I are improvements. we've say we committed past, part going expensive and to that improvement. as in question, And continue in as an you've your we of during price again, continuous environment a out, of company, we two

on basis improvement. But to robotics process So, M&A, a we on cycle our from done we on, an that's order-to-cash process hit billing ample I'll a we for amount, And I initiatives second as collections is automation. opportunity and about as operational And good of will efficiency, will and in pure and for I say in tremendous rev our that ongoing think drive additional we've well we mentioned obviously. process. which margin continual focused leveraging continue for second. enhances invest current been focus technology talk a expansion. have There do as before in improvement there's on as opportunity done wouldn't We've I very a those that no but areas. further

a mature we've In all orders can has handle go chassis infrastructure, addition, increased about, have, one talked through very our we and it as that system, volume.

a So, growth. of scalable we have very handling infrastructure capable

bit we plan little look talked expect about, So, Dan up given and on starting layering margin to we and then on M&A, some a scale. our naturally, we as when slower that have improvement at speeding

Jamie Perse

That's Okay. color. good

just Just jump queue, in then one launched. me, diabetes and recently business I'll the one you last back but for that the

how diabetes you're there's if challenges if XXXX traction to about early the coming Just out is or should that were that on unforeseen early here on are the an think business would and contributing be great. just curious update encouraging, what we that seeing

Dan Starck

Yes. Jamie, this Dan. is

the what It as are and a of it's patients we also obviously slow business. that challenges about the encouraging, say moving I'd the that providers or get how but like pretty started patient both any CGM. is So, getting learning started with we to lot exists friction some on doing patients a experience, in expected. actually had launch either – But go – we've

So, we year. expect expect expected this – the up we it provided start on speed information to that course impact and when material to here to pick any do forward-looking don't to little a a be business the over but of year. we it We hadn't

Jamie Perse

much. you All right. Thank very

Dan Starck

You're welcome.

Operator

of Kevin from question comes next Bank with America. Our Fischbeck

Kevin Fischbeck

thanks. Great,

up follow to that on to want the neutrality $X number, Just number the million. million a $X impact? nine-month Is

Debra Morris

Yes, Kevin.

Kevin Fischbeck

not $X out million million reason any the then $X there Is through Okay. flow to years? into to

Debra Morris

No.

Kevin Fischbeck

numbers. sounds if And that of the rest in about do How the think you not like nine get we then that sequestration for should months? the

Dan Starck

I initiate anticipate Kevin. there pretty call a started about will to – the Senate-approved before strongly claims language The out hold that CMS House XX about There minutes actually approve was it on they return at sent this actually that is point, was when April because XX. a think sequestration notification going this they

Kevin Fischbeck

the rate so you quantify Is any then too guess, any just I other is And Or that would much business? there lines business? Medicare on it be? do taking your how impact capitated or other of

Debra Morris

I'd that, of to million say the rest go $X it $X sequestration, for again, the be in Yes. should the will year. through range million

another already So, nine We've months. seen the development.

Kevin Fischbeck

Yes.

the quarter? just of happens you the last that remarks, build kind think we and on in improve and helpful. is of a the year Okay. mean, that I goes That's you of even do think if about I how continuing, should Or rate think, COVID your as normalize. that – when And you about growth something then kind I organic we anniversarying tough happens, guys I talked it QX? guess when ultimately prepared think mean, that? kind matter is of to

Dan Starck

quite up close as products at Kevin, Yes, first here February I'll seen talk we've And virus we oxygen negatively started will impacted pre-pandemic impacted the other we not through and largely the the trajectory products so I depend levels. the how of that volumes literally, other pre-pandemic was and QX And what really flows. think think again. as got to in and with significantly we'll it started ebbs but about in far up being exit being January the little soon What trending trending levels bit quarter. really virus saw but a patient down, on maybe the

are volume the indicators positive. So,

my we'll to Now had from and we we'll the mid-single-digit standpoint, I year see that is sense build so year my slowly to the last growth at kind number, time a forward think the replace of lapping or normalized that organic a started. maybe the QX we total the is this impression. But I we expected that year census census it's early impact the have of next moving I and mid-single-digit when census number that growing return increase what towards be keep start would just whether revenue rates think more we that gradually and that

Kevin Fischbeck

probably upon that of guess, is the it would based you to Okay. And right about to is I spike, stronger, COVID be another then there the if guess, concern is spike, I I if another impact a the little coming where there's, in guys way just be start bit COVID QX mean outperformance how businesses all that to that rest near about of back of think some to in but it, the kind just actually normal? or else better back then of way the term, it the Is quarter, the quarter? in think actually upside a that right normalization that the equal you things that get might but delay to of kind

Dan Starck

way about exactly Yes, think I the right to think that's it.

Kevin Fischbeck

you. Great. right. Thank All

Dan Starck

Thanks, Kevin.

Operator

Chris Sandler. Our comes question next from Neamonitis with Piper Instructions] [Operator

Chris Neamonitis

in offering? e-commerce out sales. Great. about its and how gears How in a weeks nice maybe with engage do for of manufacturers think can all you of patients so in guys. then the any that to for really Curious traction quarter, one came first that ask the momentum Thanks just that as on of offering, plans seeing terms about you I bit e-commerce there get congrats about color there? And of couple kind we own about think Direct of with I'm longer-term? the your and to to sort your metric a area. wondering Are ago want Apria as far

DanStarck

question. a very that's Chris, good Yes,

– with and management the – e-commerce retooled early of so platform last the both XXXX, we half as team, So XXXX, back really business. year the we strategy our

on an We very, have heavily with sleep been very do of business. dependent a and our to really it COVID impacted travel, impact accessories anything as on lot the took

so say a early So on off first first of to executing team we are diversifying far, and the of the and returns management We're was brought growth base of I'd see on retooled some that. of seeing year. last starting nice versus quarter strong the strategy, they're quarter product availability. year and small in, this A

do where SEO. with we do Direct, if From patient do there we for search cross will you pleased opportunity an there. we we're and is up And on SEM is so, really it, if headed. from new is it's sell a ways and two optimization get one eyeballs, set there it's engine And anything how secondarily, Apria a

don't about we how but future is that sure we're really still tremendous point, a and make site. spend strategy driving to that's performance this our at money trying to start the the there, thinking of yet and folks So, amount we our that on

Chris Neamonitis

from me And just compliance. on then Great. more one

that associate go-forward the that practices in announced questionable You was for of you general that settlement some with post industry? I Maybe to about ago. month us especially if give hire a but ultimately confusion comfort on billing new people counsel compliance, to of of to in tend historical, misperception December. your it, kind particular, some a share sense the around more maybe the know could there might call maybe direction on the us little give a a back led the

Dan Starck

– the And so it's don't one; think not can't. happy, briefly publicly, behind I comment we're want we – I we're fact, – really, that, don't I us. in on to can just comment Yes, we I mean, settlement

there the think industry the as not things, – – compliance We if number especially are significantly. of is less necessity that one I two of the and overall, but than with denials as I the struggled is CMS. something as is and would from it's something the medical The administratively. tend with to to profile, concerned aspects; So, reports. historically we you and to will compliance get fact The compliance above in that with literally into a improved do everything efforts when it's know think X% its compliance of the think we standpoint, that the do far was industry –

a better the great much driving are doing an companies industry feel that we So, I as job. and it think are

at record we you look historically, Apria’s and seriously. track very If strong take it it's very compliance,

compliance brings even drive background have today. a and general counsel think more do but new he'll than good Our nothing compliance very I help we culture

Chris Neamonitis

guys. again, right. Thanks That's

Dan Starck

Thanks, Chris.

Operator

call like closing turn in Dan I'm at no for to this Starck back I'd time. showing the to questions remarks. queue further

Dan Starck

joining you call. time here. big Great, day, and get thanks time done an appreciate every job our just to everybody. them. X,XXX and and for of the thank And operator. I to exciting It's job a to the they've Apria And teammates. And everybody wait up space. We It can't and takes with one to XXXX done heck certainly more us like in one exciting opportunity be all the of future a couldn't be I years more thank you proud I'd of wrap of

So we'll soon. to talk again And thank you everybody. you

Operator

today's participating, conference this and Ladies may now Thank disconnect. gentlemen, you you concludes call. for

Apria (APR) 31 Mar 212020 Q4 Earnings call transcript