AGTI - Earnings call transcript Q2 2021

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

Operator

Good afternoon, and welcome to Agiliti's Second Quarter 2021 Earnings Conference Call. Today's call is being recorded, and we have allocated 1 hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Kate Kaiser, Vice President of Corporate Communications and Investor Relations at Agiliti. Thank you.

You may begin.

Kate Kaiser

hello, and operator, you, everyone. Thank joining Thank we ending today's as on an you June overview XXXX. quarter for provide the of call for us Agiliti's XX, results

we'll remind consequently, actual and subject results could us to Certain during begin, in are release uncertainties. are detailed you and and to in may these most forward-looking we Specific in statements that I'll differ today's Before our cause call, factors which be risks from the are press of making forward-looking, our filings, in and those that expressed SEC agilitihealth.com. affect corporate materially found website the our section risk recent statements. be at factors can Investors future

and this accordance principles presented accepted accounting We call. generally in measures also will referring calculated to with during be certain not that are

slide find our can and measures these description You to measures reconciliation release to those press comparable and we measures a the we GAAP nearest the facilitate today's of presentation use in will discussion. why use a of in

a to and the visit select please website you'd the our like Presentations. presentation, the agilitinhealth.com., copy section and of Events of the at then at top screen Investors If download

titled turn Finally, remarks our Agiliti earnings the that, second XXXX quarter. I'll our on presentation select Tom Leonard, With the slides. to over his call QX CEO, for

Tom Leonard

our Thanks, Kate, review second join from results and we good afternoon. as the Thank of you to for taking us time quarter XXXX.

to to CFO, that date is XXXX of Pekarek; our Tom performance me our QX our operations. who Jim initial commercial expectations. ahead for slightly and our to share our discuss our pleased Joining leads Boehning, are and results for I'm President,

full XX%. QX Adjusted for a of increase XX% In from was compared million, to representing million, an the and line of the of Jim our me range per first, raised our earnings XX% of of of share directly $XXX we for the range QX our results, to million period, in an XXXX stable XXXX. $XXX the and prior $XX quarter $XXX to a of $XXX the nature the and last and year. year Turning revenue million $X.XX our these the behind the adjusted provide $XXX the was EBITDA million was financial a expected And compared our highlights. adjusted also recent for drivers more principal in have quarter revenue lines. service EPS performance detail of our performance, increase X let increase but for guidance million. to reflect year highlight take context to will business outlook QX to Total EBITDA adjusted durable moment on the second to $X.XX in of with representing

saw earnings representing we For more a demand of QX our been to has increase our QX demand by Engineering the for course services, QX Engineering rental totaled previewed a Clinical call, for revenue in Onsite Clinical during Services Managed return favorably normalized to and XX% Services. our offset $XXX return year-over-year. million, pre-COVID and a

medical growth as a is model in the our Agiliti maintain our in year-over-year. at Historically, you'd to technicians trained $XX revenue to repair Clinical facilities largest a deploys device Agiliti. that our for it's a million reminder, and growing this segments and all maintenance. in. the Services equipment participate Managed which work business fastest our As expect market customers' Engineering representing in both virtually we repair is of it's network, perform was XX% local QX, to unique We business, service find Onsite and in hospital. well as medical

of duties to our totaled clinicians on-site use for to proprietary the integrate QX, They shoulder need never our and customers' mobilize rental devices. service expected quarter, are for representing manage software our work in our medical teams our levels. with For clinicians, bedside. they these utilization. we our ensure workflow systems a In hospital hunt medical customers' solution, the care to to work deliver by to We Equipment X% patient Solutions platform, facilities. driven helping and revenue information equipment into a $XX We decline dedicated that which the hospital to shoulder have back right of delivered patients million, the to for team's devices to through pre-COVID they and customers' the device team demand and their manage for, ready performs the optimize devices normalization and need our for Onsite customer

capital low-utilization medical medical to largest wouldn't reminder, the devices accessories. device far our needs We of device, related As high-cost, to census which management make otherwise our medical with it device million medical X.XX We for cornerstone a devices and Equipment our or to than customers to access in sense access by peak provide a customers Solutions enjoy comprehensive the country, more to is meet solution. provide own. owning fleet the

wrap we access service on Importantly, device we to differentiated where device. categories a focus can around

example, lasers, Engineering to of fleet. Onsite volumes a last The to in our the owned patient mentioned these our in of pre-pandemic within training fleet maintenance year, our we augmented at use surgeon beds team Engineering, services Clinical or where the the the and the support we quarter, for we these to clinical the and we experienced utilization with Services providers medical during saw of in reflects call. For part on in And Clinical setup, provides Last device of the technician outsized device onset pandemic. as surge customer demand saw of last we rebalance on-staff use expected specialty in QX their during procedure I where equipment growth year-over-year previewed levels as Agiliti's support devices. QX, handle with and Managed surgical return hands-on earnings provide in device rental a laser a the our

with take the medical view devices. our of a management and opportunity needs. the pre-pandemic in device stockpile the of As Health contracts Services back operations, The came customers have service Department lines strategic medical management X in to these of of transition for part longer-term growth national we the to Human from also

shared, entered to X-year the Human July, into new been an the expansion preexisting of government's contract awarded medical had federal previously government's the initial device manage the This managing. Act with Health Agiliti Agiliti COVID-XX we and medical As stockpile. of which to last Federal Department stockpile, already a CARES response Services contract emergency was under in direct device

award. which runs XXXX. through the fiscal and process contract to new a end We contract federal new expect the may of earlier We of with are the HHS under timing September contract entirely initial that while contract a to starts to under align occur is fully a year. prior new The of intends later and prepares government of the This currently new government of current compete also currently this extension XX, for of contract and award the control course, a government's would extension for process XX-day Agiliti the the or new September, subsequent operating and expectation, contract our than award award. to formal

this that we supporting Agiliti healthcare financial contract. needs that XXXX strict our capable well operate and on infrastructure, include military our agencies. these of Please believe the of with the under nondisclosure sensitive Agiliti we regarding the government as is a details agreement of uniquely understand domestic local HHS this and history of agencies long government serving government, the state successful as is contract. a for renewal guidance successful Our to Based assumption federal securing in continues

what As we such, the is our information to federal we prepared provided can publicly have in here the what remarks. discloses discuss today and limited government

turn business the Let me the the quarter. Tom call his Boehning on to now perspective of performance second to our during offer

Tom Boehning

my today hello, to It's everyone. joining a pleasure Tom, offer be brief again business. highlights and on to Thanks, few our you

just continued around were throughout In QX fleet, variant mobilize greatest respond to regions, will critical to device our may last unfold. specialty these shared nation's started QX. that as monitoring number remains however surfaces began focus this as In of hospitals across infusion medical the This time, and weeks, pandemic. We industry country. our on several of and ventilators, health a to remain call, to device of COVID-XX earnings We need. elevated assets. a the medical We've to care pumps, markets refocus the from to investments needs the medical manage our You Delta and begun the equipment for other the of relatively systems the below same better as long-term in we need ready planned of support the impact and to the during from close pre-COVID devices heightened recall of aggregate has longer-term this of industry system and critical the device demand proactively our seeing months teams utilization. XXXX's awareness areas levels the we beds benefit equipment, access our few demand next trend emerge geographic see we well health At increased. baseline to that well fleet to

excited on integration. We're Medical. and expand the footprint. opportunities instrument benefiting closed and integrated instrument We're we deep now our progress a operational, business, on integration, of is of now March, solution. Surgical in extension and and future teams, from providers turning our service our third-largest the repair a our field. service to our surgical our are significant fully progress. in Now office Northfield repair number having of capabilities I'm integration In planned Engineering this are already updates acquisition sales broader collaborating combining into to merged of in customers logical back our nationwide second- the the independent the share and offering, Clinical already making to IT complete they

our additional look best. illustrates existing volume service overlap national always extend. through As capabilities what do to a infrastructure and while build close strategic acquisition profitable that This staying to M&A, this drive to to means and at-scale we our reminder, is we approach on also which our

half the historically, our We of opportunistic transactions tuck-in than acquirers, primarily last profile. evaluating the we be solutions organic While dozen years. organic, our more completed several has strong to a and growth a enhance to routinely disciplined augment over growth been M&A have our look business

completing we is the of the our As momentum this the HHS renewal variant, our Delta turn QX the Jim manage of teams to on of of the through look Northfield provide detail as maintaining financial of the and over in customers balance responding the successful now forward they to our integration the field. our focus impact I'll year, needs performance. of contract, to the on to

Jim Pekarek

you, overview financials QX of on reflection and at XXXX a financial some Tom. XXXX I'll our our high offer with outlook. level Thank then start an

This increase performance quarter, a as XX% representing EBITDA of the second total million, prior XX% $XX XXXX year. XX% in a last company over well XXXX. also EBITDA resulted year. QX the increase over For as QX $XXX Adjusted revenue for million, adjusted of totaled of margins totaled for

up Equipment closer Solutions Onsite performance estimate last Equipment XXXX, operating of COVID million. well last Clinical of Services an of QX that QX in strong Engineering favorable share $XX $XX revenue Taking Solutions less was X% net COVID we We growth than XXXX. earnings million, as our second from at and from totaled of in impact year-over-year. QX revenue favorable strong revenue look to revenue down an in both expected drove $X.XX, In of for from quarter $X QX impact delivered in $X year, adjusted Our the the slight We revenue. million year. range the $X.XX across was as a the that per million. Managed estimated decline

on This levels total call, That within full demand. planned. COVID-driven and year, last provided revenue. reversion that we year for we we year's have plan lap of QX is generally in considered surge fully for pre-COVID this the aligns initial our anticipated I as has guidance last with financial As our occurred to of shared company would XXXX

came directed the to Engineering. for the year-over-year new existing including by government revenue last our million, federal growth QX year, was of signing business $XXX growth the work in contract. representing Clinical the over quarter. The from XX% Moving under quarter onboarding and

newly the the from Northfield In quarter. business addition, during we revenue Medical acquired reported

was federal year-over-year for XX% quarter. the of QX Gross in Finally, $XX medical came stockpile our majority A XXX government growth. million gross margin revenue services. revenue over from and Onsite growth increase in for $XX million, This Managed with rate of XX%, margin an growth XX%, up device representing for our million, the $XX by Services from or year. QX primarily totaled expanded was rate our of margin strong improvement management the prior basis the points contract totaled driven total

$XX advisory million, impact versus on to of THL $X in increase EBITDA increase related Northfield million totaled This costs of was our and growth an $XX business tied million, line agreement year. expense has the growth a or infrastructure, fee and cost volume utilization XX%. representing primarily of of an As all SG&A QX termination lines $XX fixed the the to costs increase of QX a acquisition infrastructure. payroll-related any common share favorable the of buyout million the $XX service totaled in to the for our increase million, business with prior of for the service increases Adjusted overall. in costs an amortization associated due

your adjusted quarter the XX%. also sizable with attention Our place to First, expense margins as improved resulting In appendix X our private consistent EBITDA provide shareholders. a QX combined the and strong the in growth to of current to the solid with deliver of $X our of margins to our financial slide quarter: incurred in revenue million of call reconciliation to past to service a a a our we related deck, performance, our part THL EBITDA We advisory EBITDA, majority gross IPO, in reporting. in adjustments agreement adjusted buyout want our we equity

obligation. $XX of as the our of IPO, the debt on we million addition, incurred extinguishment loss a In second-lien part

overall As I of shared in in resulted a the decline on this our borrowing has last our call, earnings meaningful costs. retirement debt

growth for Finally, an the by growth. a year per totaled our shares share increase the representing share during and of the $X.XX strong recent outstanding offset fully of result of IPO. issued related for per direct adjusted partially versus shares the million in per average weighted XX share, earnings representing performance, shares XX% increase diluted This business prior year-over-year QX $X.XX to overall quarter was the our

which balance cash closed on to $XXX debt, of structure. capital debt Moving in billion less our sheet. million includes QX and on with million, $X.XX sheet our net our We balance $XXX of hand new

as the over lien by Our second debt cash of receivable the a interest at driven from well as resulted half lower results, resulting flow paydown was EBITDA accounts adjusted X.Xx the first year our our generation timing favorable the collections. ratio QX. of strong cash for IPO our flow from operations operating end million, growth facility the our reduction $XXX costs and as in of Strong leverage part of of of to

maintain to range. leverage in forward, the to low Xx our Looking we longer-term expect mid

significant and to aligned available at-scale this positive increased volume and the a outstanding completing cost with This operating well growth that to further of on using with our anticipate June newly the $XXX as also credit of M&A markets with fund our hand. through to time, B+ and augment cash targeted infrastructure. stable strategy our opportunistic generation our We S&P maintains required should revolving since $XXX reducing our million million capital facility to as shared as Recall our tuck-in strong position to to growth expanded as that sheet our flow balance Moody's. organic with reduce Agiliti outlook profile XXXX. cash profitable BX a liquidity a drive additional corporate debt, access our expect rating we IPO M&A. we augment Over BX from outlook with from B our from and from includes

some additional financial provide XXXX outlook. I'll color our Finally, on

with start share current financial on basis. full on provide the guidance expectations As we for of reminder, and key metrics assumptions. I'll Based a guidance year, full X raising X year a significant our we and summary for for performance our metrics. are a quantitative performance

adjusted of of representing EBITDA our increased revenue range to to million XX% increased million, guidance full $XXX $XXX have representing growth we of growth guidance XX%. have range to to year XX% $XXX a our And $XXX of full XX%. a year million, we revenue to Specifically, to million approximately

is the material favorable XXXX of million will are revenue fully the into in consideration intensity including in will utilization our revenue, approximately Recall guidance be of on the on QX $XX occurring year, COVID be comps expected medical X%. impact the $XX planning the the the of business, implied relevant growth balance have variant, net between primarily our cash of XXXX. million to fleet for on range a to result quarters for assumption CapEx the prior balance the The decreasing COVID-XX, COVID million. of until of takes our year. percentage of we We range challenging of that and to capital revenue, financial device was more impact have we of under net by to are in the CapEx Delta maintaining tailwind. next $XX year in and X% QX, not is a million our in to $XX full $XX that million measure a the a QX $XX million year approximately our lapped X guidance strong that Reflecting

to for alter results significantly slightly XXXX it with may mix is full year, the of our financial our Changes are of year expectations. embodied as COVID-XX and the to strategic continue play our These signing performance. XXXX an shared impact the within evident Services. to balance throughout expect includes renew agreement in attention course ordinary our back their our the assumption year all for And important are as guidance of upfront, financial financial and able contracts the Health in the guidance, consistent from of Tom We we we not Department turn also our outlook that Human assumptions our in but the will and initiatives to solutions to where consolidated customers expect revenue as role. the our our and respect successfully of business would the new solutions positive with implementing

device revised to the of to XX%. be of that return for will business which HHS recently include internal our Primary reflects EBITDA call the the to now margins guidance, XXXX average. the expectation which that, balance to our margin instructions will contract balance Agiliti's be XXXX, margins our volume had turn full With of completed on rental This year range are Finally, has the calculated profile. the compared year renewal pre-COVID to over historical acquisition XX% impact drivers can guidance expected our normalization Northfield of provide assumptions that implied our from and of lower impact of margins, I'll for the the in EBITDA to the a Q&A. operator our initial our Medical, historically for of

Operator

from question Our Sachs. [Operator Goldman Amit Hazan Instructions] is first with

Amit Hazan

The just first growth. question, just for clarification, organic is around

If contribution Northfield you us what can also you're just that the give expecting for the then be would the in and helpful. quarter, year,

Tom Leonard

Yes. the question, for Amit. Thanks

that the mentioned terms quarter, In comments, out. and in so integration, B after year specifically might through second in we Northfield. though, we're moved acquisition, million reflected right thing our for disclose XXXX that helpful, that to the overall for as financial calling find about done the is, in our historical you reason forma our of footnotes results through pro XX-Q, for impact the One of QX. Tom what with $XX.X not the we're this revenue that And have did was we integration of going in his QX

be the to should comps. able guide that So you help

Amit Hazan

to situation. too. second to on just We Okay. with then contract touch that question can moving And offline, the government the

you filed, of is just the half HHS With that coming contract. your says from first it XX-Q XX% revenue

linear would don't a quarter. that, I that, little pretty nice be a high, little across clarify that can bit. -- imagine the and Just to want be that

maybe little what really be and help of to that a the too. and the helpful, number for guidance would related year embedded your color of rest in on bit So that, is

Tom Leonard

mind Amit. certain the XX% we script. worries, just XX%, had the in to not didn't referenced It that that, reach we i.e., keep the year, over also of in reflects mind the that contract required Keep in Also just that contracts. prior important to No contracts, level number Yes. in multiple disclosure.

referenced HHS you it the that that XX% script. fair to reflected just So for that, in we wouldn't be assume contract the

Tom Boehning

to to previously revenue to we with expectations the do about us renews regard for maybe renewal renews managing, that And of we've question direct other this makeup to part those of really activities management, effectively year, for what remainder from HHS are these the being and to expectations parts may to with our ongoing we've HHS maintenance, about year other in shared for And addition would one successful preexisting level question, an there being consistent it of to the such being as And have your balance devices. variable, as what's the the it your X a time parts: contracts, Jim the fee maintain said, recovering, to government securing the simply, that, again, deploying, the is shared, supporting these contract, that as think around our be then materials-based, the readiness as the in devices; contract. manage fixed and as of embedded the basis. at required in and we're the that -- and on previously, related

Operator

is Matthew Our with question BMO next Capital from Markets. Borsch

Matthew Borsch

I'm there? just that of at And geographic Maybe delta anything pace just can impact? that this variant, in out -- the is perhaps the the again, any normalization? surge you geographically seeing -- there about might diverse you're that's and think stage any you to relate in a differences if call question regional and volumes variation wondering, seeing you of you're the in

Tom Leonard

question. Yes, a insightful Matt, great question,

wanted is closer really rental last XXXX, though, more rise. if reflect think that you refer activity, be I which to I a truth, you CDC good where source utilization equipment year at would What we we're to year. and of for would saw last prepared we the we not our seeing shared pre-COVID scripts, seeing to on might levels, elevated in of infections where a levels our they're seeing back demand the we're really

to historical still fleet at levels. our of the of expectations very utilization So our close

for fleet. in across aggregate the that's country So our entire

Matthew Borsch

still have some some I -- and to though demand. COVID that say, we you degree, continuing obviously Would mean, creates

baseline? But seem things for consistent that I'm be really of of probably hospitals of And just wondering or your pre-COVID the above-normal seeing services the in of demand would terms least reaching if with you're some be kind temporary. flow to seeing at what volumes

Tom Leonard

in Yes. see have see around Again, our much in my COVID spikes unclear I in answer. regional might equipment spikes been country. for regional demand We the you as

the terms, for year's the its normalized equipment, again, there across of outsized -- really country, pre-COVID to, was than impact the levels though, are entire for In we utilization, levels we're on demand of aggregate rental closer last but don't demand year. fleet. material excess the COVID We We a Jim to shared, the through we financials, COVID for expect a driver. in when driver full be to our walked assumptions as expect be don't

Operator

Our from with Ralph next is question Giacobbe Citigroup.

Ralph Giacobbe

wanted the I certainly at to without COVID discussion. the but guess XX% full I the for you and to I commentary in did I the Jim, and coming half know of the is said margin you rate to go don't the to COVID contribution. think said, had implies contribution, year, guys first quarter, this margin XX% guidance XX% but in margin closer XX%. run quarter first this you because the

points than looks half like which implies about guidance the a couple hundred of second lower back XXXX. margin, XX% basis is the again, even it of in So half

just you out guidance, margin So we could need flesh anything all if or just if funding hoping really and to consider. contraction that's expectation and else the there's Northfield

Jim Pekarek

just I Ralph, shared. the worries, what question. appreciate the to reiterate terms in script No I Yes, of Yes.

high of less than your has historically EBITDA that than our the DS&S guidance just contract would those we've $X certain And services. our to overall in X lower as It's that that, for also is full topline to has in then what we First, was at. business for And QX. the think point, million think that million year and is about and the has direct balance a the directionally our volumes balance flow you impact our through. about QX, And as pre-pandemic that at Ralph, shared rental shared year which returned $XX assumed the of at we million significantly the guidance. acquisition, to renewal Number our rates. government year what internal been two, good is been we've of $XX and margins to Northfield lastly, I elements,

Ralph Giacobbe

maybe I All a to contract, out right. for clarify anything terms relative us prior just your then like fiscal there And margin maybe was of to extension, with your And perhaps government on sort RFP process contribution, year? you just that bit an if July redo? I of there push And Fair to this sounds -- is give of Okay. recent just align then XX? time? follow-up, enough. I comment, XX-day the the And length new it my right. of with Or a is the just can little it the contract, expectation RFP is lower process, in a caught this is wanted

Tom Leonard

its will Sure, sure. before to yet. is a to award then not describes then process to thoughts be what want they the government follow There ran that. and would to on influence calendar whatever government RFP. determine and has the eventually on an invites that been takes initially process. on were initial time In at which out they industry contract the for RFI, of And RFP an information an The did look Effectively RFI, and government practice. an an RFP scope standard comment fairly -- future contracts

put formal And for our agreement extended XX so preparing a existing to while together they're they've days. process,

So there new has calendar been on a out. on then the contract not yet. the a for it's simply award this running clock And

the September. now guiding place the current year of that we've award before sometime will to take we process fiscal expect expect As end end see do the to or of to the an expect earnout -- been and

with probably the margin profile provided haven't margin to specific of to. are anything nor we the terms In profile, regard position in a

the know don't an scope so RFP, will exactly haven't We seen what be. we

look a think like. do. current deploy stand future expect we longer-term and and provided. guidance all other smaller awarded contracts of to expanded regard to that will be maintenance within stockpile, a with to -- the management be are our expectations Our expect and Act expectations expand take this us such around department our the renewal are Again, it CARES includes and contractors do The as primarily under follow-on, stockpile the of looks up ongoing direct with the the what We would actions it this regard supposed different? we to those focused it to Why size. future of to so contracts guidance different embedded we've of would to the might

Operator

question [Operator of Bank from America. Kevin Instructions] next Fischbeck with Our is

Courtney Fondufe

actually Kevin. on Courtney Fondufe This is for

So misheard to one -- stockpile the saw clarify, XX-day the don't from first Jim, know I if clarify you the that, just that that first. wanted of I did I extension guess so extension lift I to say the wanted contract? just a thing I quarter

Jim Pekarek

I did not. No,

Courtney Fondufe

Okay. Great.

So Or wanted of how for surgical is looking what to you kind guess these I pipeline all are kind seeing just segments? just you are towards -- Are for the I looking across assets? ask, multiples tuck-ins skewing of you still I assets? instrument-type small And deal now?

Tom Leonard

Thanks for question. the

We of and -- and think we utilization best, to where the needs management service. maintenance devices. we It's wouldn't the with to to with augment looking own, places make to them starts needs either ground our steps our sense into our and rapid to services those know repair around for devices to medical to about are and intend the devices maintenance ability when of it's devices, customers' access can for the that are try that around high or cost first our ideally the around looking, customers close regulated rental differentiate that we our we And that ear of we customers. the stay

be that we very That's about disciplined walking like really scale, choose -- just it's for think This tend targets more acquirers we fast its public the -- looks margin than nature do how our we to the we like would they well proceed forward profile going to how find that history. if of We'd continuum be we much multiples, its far given where in is. multiples might across end be it up expect M&A underlying business, away our well. that scarcity, often as run viewpoint been the with. reflect markets, to growing, So

Courtney Fondufe

just great. Okay, I clarify. And could then if

are was the So less more I driven or by you more strength, seeing? and guess, on the guidance, the trends into visibility QX just guys the raise

Tom Leonard

internal in renewal year results our of grade was the that and terms QX, the assumptions on the for balance have the on what say contract. our again, would in of we HHS of I based the visibility

Operator

is Morgan Stanley. with Ranieri question next Our from Drew

Drew Ranieri

Is little inhibits one for you Just now, you fleet understand through just there more corporate Just me. are little fully? roadmap the of but from a under anything a bit on for that I EBITDA margins integration structurally EBITDA? for can the wanting even or kind quick process a for get a that that business talk above Northfield right to there. of to getting more the corporate maybe that

Tom Leonard

we that infrastructure in-market when end-market on find unique an going and that is look be of Northfield, acquisitions, of -- to to drive we, to on true really me profile businesses as let them is news is to that not about a able great into goal, that built at expansion drive are have that true of to we And without line of over that margin as the up successfully bottom target, pick that margin just as that and the serve. within and growth to start areas we our the enjoy infrastructure. time, those that them, we anything profile is our will back own our enjoy we all is well company and integrate that most footprint peer this topline architecture So within be the by byproduct of the margin share. commercial would but with fit they're in as able A to look fit things that solutions inferior definition, margin, we generally

So our goal acquire as to a best-in-class, but average. to could time, remains, these, say to is point in them them footprint, and historical bring than nationwide commercial over into I Again, it our and them into our line historical know get that is greater service our it's integrate that average. we we don't our that infrastructure practical integrate with

Operator

is Our from with next KeyBanc. question Matthew Mishan

Matthew Mishan

kind a versus is, of potential you complexity? business initial would long-term is a because net draft cost? and negative business. Do impact that for devices, remanufacturing Or in of your maintaining given you is medical in that's on terms the June some on of think positive winning it guidance the one your have I came First just thoughts think think I late -- out

Tom Leonard

which not not we want I do regulatory with original remanufacture, devices We are manage back. the associated we devices. repair be and to maintain rules OEMs simply return a category, a has do to remanufacturer. and we special and It's clear, special Rather, it. back

Matthew Mishan

-- much then 'XX? should a that And of from number million Okay. tied given down, on the that you 'XX. Northfield, said shut than number lower surgical $XX bit were you I called so XQ towards higher in in 'XX Wouldn't -- little out was more think be in the XQ they're side pro the be that the XXXX, a hospitals forma

Jim Pekarek

That is Matthew, comment, sure. a fair for

Operator

next is from Our with Anthony question Jefferies. Petrone

Frank Pinal

for Anthony. It's Pinal on Frank

First, nice quarter. on congrats another

ones quick me. for two Just

The bookkeeping absolute maybe contract, on any year rest you being the it? on -- competitive little more into And XQ more a into first should going proposal one, then just cadence now question, visibility do growth contract second government off you we the the with do how revenues, this out, how on of pushed of expectations that, here? the of the on think have XQ XQ the about and being

Tom Boehning

attract Let I'll stockpile HHS with is other No me Jim contract. the doubt regard part, part. history will second of our take remind first the to a and With devices. national you strategic sizable bidders. it the handle medical let I'll of contract, the

It but logistics the of maintain the where from under is Over unique our just had devices. them those the them, more and the our infrastructure, again, consolidate here, I've infrastructure, put the storing facilities course managed ability field, deploy in were a been infrastructure. peerless OEMs years previous managed than also within, that originally we they and stockpiles X not to to for

we've and awarded -- as was to that expanded. the was current to going years surprise it Certainly, X us. it came previous we be stockpile, it I've the been was us Over to then expanded consolidate to here, have no directly it that the managed predecessors could to known

the their the last general the doubt with and generally along up So decision price. foot are lowest the federal A comfort decision, and I government put ability lines contracting overall in criteria requirements, and the show meet being best criteria not will to that the history but rather your that no forward. confidence other bid bidders have of of government's it's your this type,

with our capabilities, history eventually, the and we award. and stockpile, go very guarantee Given position into unique while RFP, we our given we very confident feel more can't anything, successful an as broadly, in competitive our

Jim Pekarek

terms I impact obviously, Yes. into quarters. guidance balance revenue, And share you, as going the to that within in be don't with to Solutions. in we specifically point Keep year, in a bit. the comparing hope you year balance is mind move QX, Frank, of What and of the of year, though, from QX would to, the prior we strong the QX just terms of as we about the COVID. Equipment where and I that helps think QX, had the in we're

Operator

And question Giacobbe with Citi. our is final from Ralph

Ralph Giacobbe

Great.

one Just on were Biden's executive two for or right month a There headlines to repair. more me. on maybe ago order

potential are that to and even focus more something wondering that have if for steps for or for this is you, implications relevant what next timing. significant any a or if Just guys. has you or teeth maybe And

Tom Leonard

Thanks. Got it.

relevant customers often relevant the customers, benefit goal who to business effectively, in either they be and or was repair a well that only locked Agiliti to and an repair, repair is own rights actually be the that directly OEM. uncompetitive guidance our to We don't that position, neutral to as find today. is being retained our like their at they of of think certainly And it able to in service couldn't very line the way that themselves our providers repair ensure, that devices. to for the directly services be, an serviced to types in, to of these by in as third So us for in but it's favor is healthcare our is that tailwind I to broad independent for the least providing will is a know we're not factored in organization favorable country. of exactly business across ever the party

Operator

We have session, question-and-answer our back reached of closing over like turn and the to I the end conference comments. Leonard Tom to for would

Tom Leonard

Great.

our today. from our nation's results in questions. I the QX, you team's thank essential rest you healthcare call. consistently look this that, forward We the Agiliti's for on thank our so continued you your execute Thank on you With Agiliti. In for time to to progress, supporting do for in And I'll close we on year want reiterate, of and confidence strategy. in outlook infrastructure to and ability updating our today's our our interest reflect your role the closing,

Operator

today's This conference. conclude you. does Thank

You this may at thank you participation. your and disconnect your for time, lines

Agiliti (AGTI) 13 Aug 212021 Q2 Earnings call transcript