Greenbrook TMS (GBNHF) 10 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

William Leonard	President, CEO
Erns Loubser	CFO
Frank Takkinen	Lake Street Capital
Chi Le	Desjardins
Noel Atkinson	Clarus Securities
David Martin	Bloom Burton
Tania Gonsalves	Canaccord Genuity
Justin Keywood	Stifel GMP
Nate Nahirny	ThinkEquity

Call transcript

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Operator

Welcome to the Greenbrook TMS, Inc.

Third Quarter 2021 Results Conference Call and Webcast. [Operator Instructions]

I would like to remind you that this conference call is being recorded today and is also being webcast on the company's website at www.greenbrooktms.com under the Investors section, Events. [Operator Instructions] Analysts and investors are reminded that any additional questions can be directed to the company at investorrelations@greenbrooktms.com.

statements, company the available based forward-looking beliefs expectations information. contains the of on call which current reflect or This the current

uncertainties heading that differ materially XXXX, materially Forward-looking current of those to form discussed actual Risk to in disclosed expectations differ subject the Factors information forward-looking for from XX, under company's actual of are available that statements. results the MD&A and September events Factors results dated the to statements the cause may from company a company's the and in cause on March ended SEDAR, website. XX, and could company's which are risks in the annual number period EDGAR are the the on XXXX, or

speaks by date update Any made, intent only it is disclaims the required the to or obligation as unless which law. of and statements on company any forward-looking forward-looking any statement

like Leonard, now turn would Financial over Chief Loubser, meeting Greenbrook and Officer. the of and Chief Officer Erns President I TMS; Mr. Bill to to Executive

Leonard. Go Mr. ahead,

William Leonard

year-to-date and August year-to-date Despite summer in to created as September. for quarterly Thank among everyone by and XXXX physicians, caution patients late X% since increasing more a the open seasonal with the quarter in a patients Good to continued XXXX our conference today. onset morning, by as also XXXX QX the thank COVID-XX. summer challenging during season referring variant with you XX% and delaying presented in compared usual, of compared COVID-XX than the challenges, and revenue treatment we you, with factor prominent growth QX QX surge call during Suzanne. XXXX. season delta especially webcast first joining The XXXX these saw and

delivery conditions industry-wide toward October strong saw We our patient experienced believe the about our for represents to and depressive Program volumes back centers OCD quarter. downturn. temporary we from existing capacity mental platform, centers, in health of disorder, we enables other through to bounce and select We're record about patients to TMS TMS SPRAVATO this XXXX. seasonal in of XXXX, continued that excited SPRAVATO were and tracking roll-out offering major business innovative fiscal a excited SPRAVATO TMS which suffering a disorders. as at offered. And an adverse platforms on leverage centers profit early market in exaggerated at offering effect XX We're the additional enhances SPRAVATO total which the centers utilizing of expanding last treatments of where us XX our margins is in experienced long-term building plan our to centers, bring prospect XXXX, TMS TMS our effectively volumes QX

much revenue With up to as total this anticipated the we our potential to the XX% SPRAVATO end our grow fiscal of by of has expansion, program believe as XXXX.

total our October XX of with a position. centers X, also loan paired a XXXX, XXXX. TMS From year-end. of This in perspective, add total expect strengthens TMS centers Central During of completed the acquisition offering, proceeds East share and quarter, Bought on Achieve fund for the $XX.X offering gross Deal used to approximately Achieve were common balance raise bringing PPP to the XXX of a we $X.XX forgiveness development the The Greenbrook million. and of by proceeds aggregate we per public TMS sheet also price to

additional TMS as QX mentioned, East I centers. organically TMS acquired X represented end XX quarter, of centers Achieve to Central subsequent TMS XXXX We the which and we added in and the

and brand secures regions. management physician robust this payer recognition, about it excited these strengthens acquisition reputation very a England New in our are United acquisition States. The as presence and team Central contracts, strong We the within also

leveraging through infrastructure regions these the a regions. continued for operational foundation serve and to expect within also synergies growth in established as our to adjacent acquisition We realize

now footprint of centers Our XXX states. XX in consists

will it CFO, detailed I a operating and now performance, company's more review to And the Erns over of Loubser. financial turn for

Erns Loubser

Thank you, Bill.

As and year-to-date XX% however, the million year-to-date by revenue Bill $XX.X by million to by predominantly mentioned, as quarterly decreased due conditions, QX XXXX revenue XXXX to to as compared QX X% as compared increased to market increased XXXX, to XXXX. both. by $XX.X Revenue, adverse X% to compared described

collections XXXX The primarily XXX% to Average previously XXX% Maryland, increased revenue key in attributable and X% to favorable of factors, consideration negotiated adjustment decreased the to and older year-to-date treatment markets, to X XXXX. normalization QX X per estimates, XXXX Delaware by for. in compared by increase accounts X% was in and adjusted XXXX of variable to established especially on Virginia rates compared QX year-to-date in

regional pointing our This compared QX to XXXX. of revenue during lower to regional compared operating in of resulted result XXXX million as in existing is QX QX measure $X.X operating entity-wide to X% loss regional region region XXXX as development a pandemic. to $X XXXX in slow X% income as and growth $X.X in and QX XX% XXXX. Entity-wide growth regional during result to the million The operating was relative entity-wide year-to-date was $X.X in million Year-to-date, X% of a year-to-date capacity compared in same growth in essentially aggregate the million the as cost center platform. income in XXXX year-to-date and Same structure pandemic sales mirrors of sales XXXX XXXX.

XXXX, increase to year-to-date spending in QX XXXX, in QX onetime this normalize. our and We XXXX an with as to $X.X costs. in believe normalization conditions $XX.X million business capacity our predominantly and market program increased growth coupled of XX% for XX% utilize due and in we G&A TMS are to SPRAVATO by Corporate XXXX million the through very year-to-date well-positioned to

XXXX, expenses corporate a XXXX, stabilization the to costs, excluding compared and The by XX% onetime decrease by period by earn-out QX to the in decreased driven in QX decreased during comprehensive year-to-date predominantly only and by G&A representing for consideration QX XXXX to for XX% from XXXX QX million XXXX. compared spend XXXX. $XX from the The Corporate PPP decreased XX% QX forgiveness as million loss and loan in year-to-date G&A. to lack was of XX% the in XXXX loss XXXX, increased $X.X but as of the

sheet receivable of million strengthened the the balance stable, public balance the forgiveness offering balance for the and a $XX.X loan. we sheet accounts a through proceeds From approximately perspective, our remained PPP completion and net of of

hand. As cash of $XX.X September approximately in XX, XXXX, million we had on

core operating to Moving our metrics.

Achieve TMS after end XXX the As quarter. centers acquisition a XXXX, Keep centers year by end X% mind, that include to added the and Achieve the of immediately in from of total Central the of not TMS increased this East XX does XXX ago. QX

patient the of Compared to X% increased XXXX, TMS of performed performed X% XX,XXX X,XXX. number increased to to consultations X,XXX. to X% and by QX new The to treatments increase starts number by

forward-looking Bill remain market metrics, these As optimistic key as in these very to but XXXX. during bounced conditions experienced strongly, were QX mentioned, QX which challenging we level a trending of back some XXXX, depressed indicators temporarily record

Back to you, Bill.

William Leonard

Erns. Thanks,

surge our summer. we presented As delaying early saw the a variant in open in continued specific mentioned, both and consolidated treatment since Despite of patients QX during challenges I with quarter, onset treatments. these the delta COVID-XX XXXX first challenges, and late summer patient in growth revenue their season

of forward enhance profit program, the the results our the we this with by of look pleased very margin optimizing centers. are I and current utilization can SPRAVATO expanding to offering. We TMS believe We

key to focus device with expand importantly, of with long-term At we growing continue for a builds for health suffering platform at on this the deliver centers time, This manufacturers disorders. unmet our an move to the innovative from patients network collaborate in all-time also affiliate and our high. to U.S. Most strategy services position TMS to TMS. of remains utilizing of indications health the treatments a need range treatment mental as mental

we Our better serve and business ever the mental the need country. than support are the fundamentals to remain sound, health across for positioned

over forward updated treated the positive with a look many XX,XXX We keeping patients lives the to you patients mental on We on from performed, progress impact have health significant over disorders. so company. treatments XXX,XXX of the suffering of now

And now Thanks time we questions. will for today. your take operator,

Operator

line Frank from first Takkinen, comes Street question Our Lake [Operator the Instructions] of Capital.

Frank Takkinen

of should this last from you around expectations me couple start on you I extrapolate today. Achieve revenue? volumes to commentary back plus into the How record experienced QX the provided getting commentary acquisition A quarter. we October wanted to

Erns Loubser

of indicators, that it And we levels. terms saw when so start. XXXX QX we is strong towards And tracks bounce QX I to in back a said, treatments So as forward-looking October, take significant pretty XXXX expect Obviously, November back to December. patients follow in and level. a time some

layer we're and TMS QX pretty then on and some treatments bullish So we Central. Achieve about from East obviously additional

Frank Takkinen

expect what you site this exactly a -- bit then little what deeper want on by that, us How SPRAVATO? should to impact TMS between here? I in we looks take it XX% X% and to SPRAVATO. walk offering contribution margins how is baking model like versus the through this And to just to Can per your mix as traditional on lastly dive year-end, relates

Erns Loubser

Okay.

layer one in and So a you enhancing the I'll margin. and variable margin profile before, of center SPRAVATO the your From and X first there, we that essentially leverage first. I'll and TMS as take so these mentioned on cost on a take some perspective, that, questions SPRAVATO fixed semi-variable margin effectively raised

nice by X% excited very year-end said, up our also that's of going And to as to to a to that we profitability. towards lift in we're trend margin to on. to So business represent points and layer XX%

as So margin real your which bottom your that's trades line similar have where really have -- utilize to existing to a and you infrastructure. we that's variable essentially drops you very -- your as TMS, the estate technicians, again you

could part the the in second of question that's part the So just X. of you terms XX%? Frank, repeat

Frank Takkinen

SPRAVATO, think and what XX% XX if year-end, TMS? between SPRAVATO about traditional for those to mix by the So sites X% you does look like offering

Erns Loubser

There's in to that's immediately place to So January. not vary. they're be all obviously -- going in going

mix, centers St. Louis that the So have you at operate moment. down XX-XX at

for ramp a will end ones will our the obviously, provider be at And split a XX-XX we the high is the But where the think at we're there split XX-XX then year, in moment. through centers as lesser split. be highest of those. some I

William Leonard

let add me Frank, that. to Yes.

or add that the a just capture it TMS a us wider terms me qualify allows does of to to Let down depression too range may actually is as patients us in SPRAVATO from to really are scale. not suffering One that far of fact for patients the what depression, that company.

offering, is and would So for of had those remission, candidate treatment in pilot really probably they were therapy us, and say patients initially who pilot, SPRAVATO. were our XX% I patients for fell a what removing TMS great seeing a now a we're at actual SPRAVATO, for

and relationship So getting SPRAVATO. and over to them move very to then SPRAVATO, seeing baseline complementary we're between the a TMS versa. TMS patients vice

to provide customized able opportunity treatment patient So excited the from that particular suffering to platform that for that pretty is and a depression. be about on we're expand just specialty

Frank Takkinen

me. last then And just one for

You to gone alluded to XX opportunity sketches center it, Bill, with talk through a acquisition? newly -- around center far some of Achieve the little as you've maybe new but the the clinics a as basis greenfield acquired on rough bit, the

William Leonard

Sure.

over Achieve are the Central them. city management little brand-new to that Central, let's us first, of a you expand for If provider deal in the established for the starting footprint TMS more closer shift then you a actual There really dig business, look in with there. from and to was bit there is East Boston. some to unique with a opportunities And to team probably continue platform, getting up on and at East. to in if the standpoint TMS

X centers play were Iowa marketplace. the in There Midwest, the in

to not area. Dakota drift expand the closer only needs some start but Iowa, the to in opportunity within have unmet will South We to

plug-ins platform a a region. that is a be unique will and And little established one and in are more bit new the one really has a other great So opportunity. is needed some

Operator

the of from question next Le Our comes Chi line Desjardins. from

Chi Le

profitability targeting will and or are the organic organic be level, the question is rethinking centers Achieved XXXX, you're at development open a by given on first strategy elusive so your East high as center? development the center of you imply end My more which XXX a rates a from central as the would deferred pause bit of you digesting -- you're

William Leonard

Yes.

centers more I end at our think going a as the organic from year we substituted with growth, from the marketplace, on new the some still during mature to it's of we especially prior XX% our call, time talked -- versus prior standpoint, in of day, roughly greenfield about COVID but we're grow case, XX really added.

finalize When that and centers, our future. it our X we number to next team, expect One, the the a new center near year, with session things. budget at growth don't we from we're for annual look planning in is really middle in for TMS of XXXX

centers a to So new a next it's standpoint done a little but job the great we early for growing year, have TMS on of footprint. overall, growth from for me comment

in ourselves manageable marketplace the platform an build became due a of to continue the pandemic. put and We upon under-served to even meet grow to position that greater to needs

So grow our is TMS initiative team for at only increase and footprint, our footprint now but level continue not SPRAVATO. with leverage through for our key us, the to center to the utilization and

excited the we're to more for our about opportunity So expand into building SPRAVATO plan. on extremely long-term centers,

it's not that we're pausing So development.

We on from mature more an are acquisition, standpoint. versus more completely just focused of an organic positive market

Chi Le

a just that. on follow-up And

a as on acquiring map do smaller more more the profitable and driving feel perhaps you profitable to of and provide So to SPRAVATO on utilization, path profitability EBITDA? you're focusing layering confident more like road network, you can

William Leonard

Yes.

roll-out a the continued by have patients, that best current a we and needs, of optimizing of patient of we offering utilization provide margin range SPRAVATO will enhance the with to think wider SPRAVATO, the fits the the believe capture profit ability treatment I center.

So is, us, towards profitability. a it for path

Chi Le

And X the for last me.

revenue that for more regions established per with given past side, following quarters? we the operating about and East on how reimbursement, the Central Achieve should treatment think in TMS favorable So

Erns Loubser

there. So, at There's good play question. X things

the a also We have XXX payers so for some normalized, normalization up consideration that which reimbursement. the see wins in midyear in XXX regions, year-to-date. with in adjustment of some got We We've the variable has versus in bigger collections helps. which established

terms re-prudential as of mentioned, a mix East Achieved average whole the And Central and we than then, conversion you what the process. we're operating business, of in side higher through TMS we're the especially on acquired that because So has reimbursement into at.

always of bigger explained and as a you'll about business, mean, the see California upward in trend optimistic cautiously slight business, that. So you mix that. I in market, see, positive mix we I'm on reimbursement. becomes but trend a depends average That that a as our see of should we the

Operator

line Our Securities. next the from Clarus question Noel Atkinson, of comes

Noel Atkinson

since Lots progress of the quarter. last

So well on done that.

for quick view a Just me.

October, mentioned following is So about you in record starts, were How patient levels. that in terms of volumes also activity the through? near up back patient

William Leonard

what seeing good had as is, we their And then what to December. bookings we're patient and the balance both really normalcy see and you terms little Erns X-week So -- October, start And for and earlier and into process said, a is, on strong end volume, we taking solid those in they're summer fact put mental alluded are sheet is have so the for nice platform play XXXX. work health to great you'll treatments yes, their also sense play needs, in care you like happy I news we're in we the and the they're and for strengthened settling we acquisition schedule see but think to and those of in that continue built as needs that of the November care that's we've returning thrilled the done. a strong in disappointed a the our you're patient were about and starting of that The bookings. with the year patients bit month they're a a that of that during into depression patients of to into in with a taking the we fact quarter, pretty also financing happened talked

Noel Atkinson

SPRAVATO are XX locations, sorry, are these these expansion choosing the In the terms you of how locations? of using delivery -- you how to

William Leonard

physician would that but XXXX to have the you tell and the really about beyond, and XX I time That due we line ramp up centers shortest we to was footprint, throughout coverage place talked we especially first pieces for in up to XX the physician put line announced that shortest really to but running, were expansion, additional the and continue coverage. with ramp time will get and that

Noel Atkinson

well be could by XX XXXX. you theory, the in end So beyond clinics of

William Leonard

to the We expanding towards will continue work offering.

Noel Atkinson

something And margin looking that that in buy-and-bill what and then and for is And so, yet? does profile? be revenue at reimbursement that if for do any you doing and billing, terms of XXXX, you would are

William Leonard

I'll in will little I a Erns but think this bit, start. on weigh

billing taking what buy-and-bill. cost administer on of of on in is bit drug the of time. the we're it seeing from terms pretty observe and methodology the a offering There margin this the terms at right now, in not comfortable in we're In the side little difference of

to Noel, demand going a to to have if situation we we're throughout a know but you're in have probably in where roll a we'll in what higher see You're be a little you do, revenue, something out to market example, bit with, but Louis, specific cases, higher And also see cost don't going all we think patients to it's centers structure. going some buy-and-bill acquire I may I St. XXXX. in for

add? to anything Erns,

Erns Loubser

No, a revenue Bill I for -- now, you it. buy said, range essentially focus an the think capture and require captured reimbursed patients certain wider and adds thinner But to to get specific you on increases. obviously, a markets, that absolute contribution, in but opportunity but buy-and-bill, you the standpoint you obviously -- and as with drug wholesale buy have insurances of an that. the it's It's observe administer from contribution is that follow It it. a there's margin,

Operator

comes Burton. Martin from of Our Bloom the line next question David from

David Martin

TMS back say SPRAVATO, one questions. that or your clinic number that in goes treatments XX-XX are at of number earlier When of that or the to the of is the treated? basis patients question the First you of on high-end revenues

Erns Loubser

a on to terms There's going and that that XX high-end XX-XX. And has locations revenue on is the opportunity, basis. a in of Purely expect all revenue greater centers that's on specific be don't reiterate, to the basis. sense. We

William Leonard

more you can with do David, there's can add you Just treat TMS to than many SPRAVATO. -- to patients that,

SPRAVATO. period you have with a So X-hour observation

on your number chairs in capacity the have and number utilization you center you see. your is based of patients of So the

I So more more from you're number more patients to a from to a have TMS always going treat -- patient standpoint. SPRAVATO pure patients the ability mean, volume

David Martin

choice factors What the the are of patient SPRAVATO? the to TMS driving or either

William Leonard

Good question.

you I have about wanted in initially think involved earlier, had as and is talked of I good out who choose SPRAVATO. to remission TMS patients were might it, fell of one have a therapy, result,

culture -- also that U.S. have a have immediate likes We the gratification. in

patients want having and onset quicker a So need chance just a of some are of action. really in

of standpoint, you I durability action think onset a of really And SPRAVATO quicker the TMS outcomes like do therapy. from standpoint, from get the I

of think one worlds. complementary the as Again, And very you're getting best fit I the has So centers. both in said, patient I of another. our well

Our able handle and to and staff's both look that to SPRAVATO TMS, business. grow sides will been to both we continue of

David Martin

I'll question, queue. have think were were of last jump a depressed in COVID. my to of We And patients were back and because the expecting obviously, surge I -- And they through way? you maybe first of work therapy. or seeing anticipating the is their surge shouldn't your as as much is Or second of signs be you this were? we coming lines Are -- we who

William Leonard

Yes. from gotten I bigger. standpoint, health mental I mean, entire marketplace has a think the macro

had domino think think continue patients of much. to in who the is see patients pipeline. we'll the effect. have it's doctors I are is definitely you lot additional I seeing reality the a not as But a reality

starting getting and fell their delayed to patients back a discuss of you've you're got are time and trial Some their doctor have see mental in that harder disorders COVID, pulled because terms a of few. med to health so in to having so

pipeline fact from So is still They're still the there. under-served that standpoint, marketplace. macro love extremely the us, we a from

services the patients therapy, or to felled they in because expect SPRAVATO come for TMS drug time. XX% We of eventually with

opportunity. position a it's great we're market, of It's think don't we still away. It's there. -- still gone take just we and to advantage that huge a in So

Operator

Genuity. Our Tania Canaccord next of comes line from Gonsalves from question the

Tania Gonsalves

and wondering personnel new can regional part how you Achieve off, if corporate I'm us tell -- First many on-boarded as acquisition? the of you both East-Central

Erns Loubser

correctly? a a I and -- Achieve sorry, result as East So increase the what's the question, from is Central? understand corporate in G&A Did that from

Tania Gonsalves

brought there. number from just that people of the on-board you Or

Erns Loubser

and perspective, corporate Achieve little, East an a as of Central From can region. think very the additional you

can technicians service and So really regional corporate regional bought certainly but that. management our team a -- to and from strong on, platform regional a we leverage perspective, personnel we

back So established everything office, from platform. can service finance, we our compliance, corporate

Tania Gonsalves

on utilization of blended tell can Okay. where a us Excellent. max today And then terms is you company-wide volume center? basis, per in with Achieve,

Erns Loubser

was, I as XX.X% to we about So from This you always XX.X%. mean saw, dropped saw XX%. we

XX% So margin. utilization low is probably hovering below that

really platform. opportunity of that's the the So

specific quarter. As in market normalize, constraints there conditions were this

conditions then only the not business, on increase on TMS layer without in we market is we normalize, that capacity as will also business SPRAVATO, to utilization. which the an And So opportunity utilize costs. that increasing

Tania Gonsalves

update any So the then how of me. How the to provide quarters. you continue in to expect QX of the seen over And I next coming going Can X to lastly past for couple over to Excellent. you just you variable you've X on quarters? that took an think quarters? reversal is Okay. that track provision on consideration the adjustment

Erns Loubser

of percentage but revenue, with we As target we're can revenue about and it, decreased you've as stabilize QX, gross the trending so X% of, variable steadily, of ultimately allowable, that's X% ultimately seen level for to or be a to call that is consideration in target as continue -- a adjustment towards and you that. we getting an will they will

Tania Gonsalves

Okay.

complete talked was by So the of if XXXX. I before, first being we complete, any reversal being as that had there half think about

to going is completed expected. it be So than earlier

Erns Loubser

Yes.

in as well. to see gone continued So stabilize treatment variable I into Like will you should average adjustment consideration, has per XXXX. our the pretty said, there be reversal, revenue that but

Operator

line Stifel the Keywood, of Justin Our next from comes question GMP.

Justin Keywood

just broadly opportunity out peer-play hoping potentially the against able just clinics these bit also SPRAVATO, there other there more the that clinics dive for the competitive provides them. some if there you that be expansion, would And be health more. SPRAVATO out was I landscape or is -- like then on describe SPRAVATO on there a SPRAVATO, acquire in services of types just integrated there. organizations Are of would part to as to offered more competing this a you to are are

William Leonard

take this one. from you. I'll Good question, to Justin. Great hear

a X,XXX at environment. with stop being devices TMS Let's to to level. competitive X,XXX of the in we're pretty Obviously, installed, market top used the

With is SPRAVATO, individual who our centers. any office SPRAVATO-only not with we're place. see practitioners seeing you SPRAVATO within this type What specific offer

we talked and experience back health just that's before, and with what Greenbrook distinct a we makes have advantage other about TMS how As we mental we patients. quickly providers, We're special. how adapt think in patient therapy, to get like we unlike

So we we're our note SPRAVATO I competitive in environment, proved consumer to know mind, keep call it's that on that it's educating pilot and to I a any our any think but the early the of doctors. this marketing attract direct initial patients able pilot sales did think important not or on in with team we did field layer

to So to to a it. turn we Greenbrook a SPRAVATO with faucet TMS have opportunity us with therapy. It's both branding yet for great and provide on begin

it upside have going landscape, and extremely also with a proven in TMS in -- therapy exists in our competitive patients. but we delivery to is competitive. -- attracting are But we've that the today, we shown past we're So model it's comfortable we've as considerable be it care it

Justin Keywood

training Got helpful. Could then that therapy? needed? be of as have practitioners And it. additional that accomplished same That's as SPRAVATO, you is the offering TMS an with it the type staff administers there that's far

William Leonard

who same on SPRAVATO does great experience. wonderful additional deliver patient we're layering Today, job centers. using. a but the the great a a with footprint technicians current beauty is terms staff of staff Greenbrook there training, in that, Yes, that we the of it's have great That's to our of and -- doctors, Janssen no

with SPRAVATO how great to like to done they therapy, do So learn has that comfortable training a TMS our staff there's SPRAVATO and getting had and job of just layering for on. a

range more to So staff us center wider even the towards current drive the to continue patients a again, utilize doctors it's capture to for an and opportunity of and profitability. with

Justin Keywood

Okay. criteria XXX you're the locations? percentage a the of And it on centers, all lend for? TMS network? Or they finally, these be looking will the that themselves then only be potential centers to just in Do would those SPRAVATO all

William Leonard

Yes.

I obviously, don't to I they calls, in the And to on opportunity. SPRAVATO one layer footprint. they all centers coverage prior but begin XX. beyond place expect talked to if to know from and on centers, the X XX in minutes think as eventually that's are theory, in put physician can I we SPRAVATO apart but have pieces the be you I another, go about key do need -- And

and now, getting up focused we're as For possible XXXX. on as early running that XX in

Operator

from comes of Our ThinkEquity. the from next line Nate Nahirny question

Nate Nahirny

This but the roll-out? on in quarter. clinic to touched acquisition, footprint, operate, earlier, growth your within been is a plan organic may besides SPRAVATO growth, expand to maybe current bit obviously the have what question Congratulations the the through little you clinics regards for continuing your you're but

William Leonard

Achieve said on and both So the again, growth thanks. we have expand Central look and the a to a footprint significant growth and Achieve the growth East. acquisition at it's it's we both as but a on to our at earlier, growth, to through budget footprint, on that organic. actual at Nate. season, product It's opportunity great about tend in our call. standpoint, hear you, and the talked earlier, platform from we as But next we'll acquisition have I our from within we're When new obviously, in also center, we offering comment footprint, we not look And organically decided,

some And centers, Greenbrook. we some we have to well as have existing within fill space are that out in

and So platform, a through just diversification. centers done great a it only acquisition to product not job our organic, through of also will but again, or potentially historically, be we've adding always methodology

Erns Loubser

factors core business conditions increase believe XXXX. QX also. we some TMS we constraining obviously, market the had from And Once the adding our can that, Bill business, we normalize, TMS in to throughput in

operating boosting diversification, business product but as can and not we leverage platform, the market also normalize. through in there, utilize capacity conditions core got we've So only TMS that our

Operator

comes for Our of Desjardins. the question from Chi next line Le

Chi Le

Just follow-up for a quick me.

a reduced and see you you're stigma When do mental back conversion casting net consultation the anticipate experience increase. broader the you pre-pandemic to health level? to as rate U.S., So continue in the in increase plus to

Erns Loubser

good news forward-looking So now. normalizing? through -- obviously in That's a is when we're in evaluating The we factors market We're budgeting QX our bounce play. the going early in back saw we October. market indicators expect do process conditions at

terms difficult of normalize to conditions in the So exactly levels, seen but market recently. it's when positive we've trends some pre-pandemic predict to

William Leonard

They to only Chi, the pipeline from question, depression. reaching add first on us that kind based awareness. in to time may ads and there's going I'd previous the earlier that patients a through have of med expect first have that calling experienced fact They Yes. who is do drug as we we thing be our that, talked trial. that start creating may again, about

patient later months that may a and may not pipeline or still year. hearing in the initial to us, think become come first So they they're the couple us I in while in of

So early from got some you've suffering patients the system. -- on you now got some new early in have depression

Chi Le

idea just maybe here. And an

So employer into on the mental corporations focusing like employees increasingly on that, benefit the or and reduced are with Have under group covering to the considered health employees employers maybe you hooking health. build stigma the PAP programs to offer cost?

William Leonard

TLC, Yes. point one myself in of great the specific corporate place coming our That's have is advantage marketplace in And in a from with and trialed this a actually that we Richmond. programs program. obviously,

opportunities at, next our begin that an our not have of of that have the things only and is providing comfortable within coverage. to corporations I'm marketplace. one So that with insurance It we look will understanding

benefits opportunities opportunities them the at with actual for with it. directly payers closely directly work looking their we're work we the with on in But creating Obviously, group members. closer also to

Operator

Martin David Bloom from Burton. from line comes of question the Next

David Martin

within growth future to or that you possible plan, that organic it something expect grow outlined reach You certain your and break profitability even network size? shouldn't is desires. wondering to your once a is or in the that far off or we in I'm intentions and until acquisitive

Erns Loubser

of terms our in changed. profitability growing growing profitably has not Look, towards and outlook

of now, through As but we've level, mentioned, budgeting to we're also which variables enhance process at lot there's the a profit some play, and gives really going us going a help SPRAVATO regional tool profitability. the is drive us at good to margins

initiative but the -- towards yet, XXXX In it and terms directly of can't business remains profitability of on key I quite comment self-sufficiency. grow to a

David Martin

intermediate term term? long be profitability, would And near-term or that

Erns Loubser

Like what said, I medium-term in through budgeting outlook moment. can we're I mean that, the changed we our at now. going I haven't strategic process our we like on say are is

David Martin

clinics are that And TMS? remission second what similar they SPRAVATO and rates different? the or experiencing Are you're your in question,

William Leonard

alluded earlier. across TMS bit little the I SPRAVATO, country. Yes, therapy to this

in our treatments. closing published the data We largest over have set the in with never XXX,XXX We're -- far, on data. U.S. by

with need And we're published we've patients of shy the data, study But is which lines. so never our that having above speak. to that, FDA just remission XX%,

SPRAVATO, I have a David. with you quicker onset, think

of treatments. Some of back those out quick therapy are but patients fall remission very the tend maintenance on, quicker to of for they in of because later onset also to come

from future. going So more the see probably with stable a in they SPRAVATO standpoint, more need for of you're quicker TMS patient therapy. a but be may us, SPRAVATO And onset action, long-term to a

David Martin

with of for do SPRAVATO And them then long-term the some to TMS maintenance? start and go

William Leonard

Absolutely.

at may look SPRAVATO more if have indications, and So you you their suicide ideation. someone that's

where to to you So you TMS continue potentially want even that treat then and that complementary ability them therapy with start move SPRAVATO move find SPRAVATO to have TMS. allows that's get and to with them or into patient And and behavior on therapy eventually that over patients crossover, SPRAVATO. be to TMS that or the baseline to

very So they work together. do well

David Martin

And your also reimbursement Okay. one costs are quick areas? regions rates, Where where higher see higher you last those in question.

Erns Loubser

margins just Similarly, Californian is generate perspective, it's like higher favorable So cost correlation, market, higher but the some in with you but in more we've maybe base economics market, Texas your because said market so reimbursement. from there there's staffing slightly and Massachusetts as the before, proportional a not can high significantly. the that's

high slightly doesn't the base, in cost reimbursement You've negate it got the totality. a higher but

So higher there. generate margins to got opportunity you've

Operator

no further this are at there questions time. And

William Leonard

with to thank about about really opportunity company. the We're you you, afternoon to run the going excited as kind we're Look you the till to the the everyone kind and forward to forward utilization today end to season, to of and We really speak to opportunity the talk happy and profitability. New holiday I Year. position expand to patients Suzanne. with Well, up talking of again at towards our going year won't offering and of appreciate wishing you a end

all soon. for I your will to thanks and So talk support, you

Erns Loubser

you, Thank everyone.

Operator

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

disconnect. may You now

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