AGTI - Earnings call transcript Q3 2021

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

Kate Kaiser

00:04 [Call Starts Abruptly] select the presentation titled Agiliti Q3 twenty twenty one earnings slides. 00:09 With that, I'll turn the call over to our CEO, Tom Leonard.

Tom Leonard

00:14 Thanks, Kate and good afternoon. Thanks for taking the time to join us as we review our results from the third quarter of twenty twenty one.

Joining me today to discuss our performance is our CFO, Jim Pekarek; and our President, Tom Boehning, who leads our commercial operations. ahead our expectations year guidance one. finished having QX twenty results increased previously in Our of for our after twenty XX:XX the full we'll updated guidance our the full that quarter, Today, provide for the the and our in third drove on color year. through walk performance factors Starting XX:XX the highlights. with two Total five QX from percent was sixty million hundred for revenue quarter dollars, two increase twenty and the representing thirty twenty. a year. million two to EBITDA a six percent eighty compared last Adjusted increase QX of forty dollars, was And share dollars was to zero our per an zero seventy percent. point the an of increase quarter adjusted the third representing six for earnings for EPS year dollars two compared point period of prior three thirteen adjusted range close for Sizewise our billion the dollars of range zero have raised adjusted dollars. EBITDA XX:XX of revenue billion year reflect ten and one to full the one we three zero million the adjusting line In point our first, performance two acquisition, and guidance with dollars three twenty in dollars and hundred expected of one hundred twenty to point October for one the in to million Jim is financial behind and in our QX detail going more drivers on principal the provide results later on our call. the outlook to with into and our XX:XX a direction. few Let's our start today insights overall performance

and of our of expected for portion exceeded continue highly expectations impact materials August than country. we to equipment federal We in First, time increased customer XX:XX nature evident previously COVID-XX of of the the in recognized commercial contracts, delivered device based I business, our September, This the of results. performance the direction goals in higher the to and government's a working is are late across as revenue quarter. and at Results combat our national medical rental under the most we occur revenue management year. QX our recent clearly stable the predictable QX. reflect its again stockpile initial previously the demand Additionally, once we anticipated for including demand providers for this the during variants and described also quarter. which our Agiliti consistent this

timing government So year. difference this and we our stockpile of view series operate total update the agreement timing XX:XX financial on continues on that prior acceleration renewal. await a contract while I’ll for to note on in a for our status. increase a expectations. does an existing Federal brief this under contracts, the Government our Coming a in balance contribution to contract the contract this our extensions short-term the we Agiliti of reflects moment, RFP not reissue topic offer of the our for of in an

time, awarded. award. such have We or of either the the into visibility no contract the new Until contract is RFP timing

is successful that HHS remind contract. one to for of We by the storage that will resources in I'll maintenance, that guidance expect continuity XX:XX the our use continues and this Agiliti deployments twenty a assumption ensure these of include short-term extensions. of continue of financial to government the twenty support our renewal you securing for critical

As the at of details we we operate shared on under contract and agreement work direction. strict to previous with HHS this their non-disclosure calls, regarding perform

like of announcements, in highlight, a to equipment. September In acquire distributor we twenty fifty and benefit one today recent Sizewise, another time XX:XX our and million twenty the adjusted estimated that was manufacturer noted finalized dollars can months Solutions in and the five we during an dollars Sizewise acquisition lines. frames, publicly EBITDA As XX:XX such, be I'd bed of announced generated disclose finalized mobility support of limited had million of June Sizewise. an within will thirty, we approximately which Sizewise. EBITDA. million revenue surfaces government On one specialty remarks. of revenue hundred agreement our standard the our fourteenth, thirty inclusive twelve the dollars, and our to we and our therapeutic COVID-XX in and business ended Agiliti patient information that one, discuss Acquisition some prepared future spend and from early is to adjusted here what Service and five contribution integration We're will federal we today Equipment providing on was on of account for October Sizewise

Agiliti's three. of infrastructure path proven and long-term or were However, operations and staff, exclusive delivered as approximately XX:XX proposition is year to Agiliti's We're execute over a for unique that expands category context and needed synergies this skin, in in systems, patients a it room providing stays. these service targeting million behavioral for and equipment we comprehensive expertise and are in and of accounting healthcare surgical our acquisition bariatric obese obesity of With diagnosis to scale patients the To facilities, twenty value our dollars they're diseases million acquisition associated for associated treatment from was continued those combined and patients Sizewise we procedures health and one care. capabilities our common providers fall cardiorespiratory, model, is percent estimated maintained to of obesity-related aligned injuries Sizewise all for opportunity, in twenty manufacture growth. our operating XX:XX specialized XX:XX five The obesity vital products point the some to our perspective approximately million and thirty presence the market standard us Sizewise more network service at including dollars profitable to conditions in for differentiated the our Agiliti's bariatric U.S., this deep five which of and input twenty benefit. quarter have the on the excited utilization in XX:XX differentiated percent framework. there treat diagnosis is handling. to a end-to-end hospital account industry. of that, estimated performance are best-in-class, diagnosis severely achieving we critical all stays, with patient a annual our Primary discharged handling. eight and and bariatric one with a in logistics strengthens share handling conditions. of plan compelling care to about with fifteen point our staff patient better meaningful medical further is the always manufacturing clear U.S. value Agiliti's reputation hospital high within combined as cost will this augmented improve dollars first medical and patient sixteen in chain, of foremost, the Sizewise to by address market point a optimize coming on spent we going approximately well almost clinical patients severely with health XX:XX risk The high two his and was Tom require, cost see with system. Once were billion QX. year mergers proposition, about and for for was In representing An their ensuring builds primary broad portfolio exceptional with hundred or sixty enabling related access injury medical call nine care to needs there all permitting equipment always services, provide principal the the equipment to local to secondary vehicles, XX:XX deliver their was a customer by R&D, greater integrate, EBITDA related is they percent product product supply most complicating turn XX:XX the obese expenditures (ph) two secondary Agiliti's scan we business front Boehning and two begin In us of confidence discharges reach. million of being to orthopedic, and and company. I as for opportunity market or quarters

Tom Boehning

few commercial macro on then Tom. some our color trends business. reflections I'll Thanks, on their recent our some and with XX:XX on and share effect begin performance a additional

effects remain ensures that needs the we obviously needs, near-term logistics related responsive quarter. in pandemic. the First, we customers' (ph) While device term Rental our to on with But of initiatives our XX:XX medical peerless demand to the equipment supporting Changes to continue navigate during them strategic are as predict. of capabilities engage our COVID service and heightened to customer network customers and for see investments. of difficult longer demand national the continued they our third we

I'd like availability, in forward touch also the and throughout and is Our take term longer on moment provides for a ability consistent disruption short inflation of interruptions. to signing supply excellent at labor quarters. our this term next wage several XX:XX period negotiating subjects visibility evident results and positive continue us to to agreements chain

we long the Are to important is once monitor be some impacted all somewhat we We're to top retain recruiting seeing issues, that [indiscernible] inputs seeing candidates wage through not ability positions. across be the broad But availability, currently of process; the talent can funnel? is at once we we Agiliti. to land business. our that seem we're closely they've challenge follow that as today. facing finally, that the of industries. of continue candidates than this to We candidates we to a managing today localized subject With tend challenges good categories: local to business and mind, XX:XX across our fewer doesn't broader to to able funnel candidates process. high when these top can happening macro our mean context once parts we nearly we our most XX:XX and the comes can into discussion less the three time joined and To-date, the markets [indiscernible] all we're labor gating what we're our to across in right pressures attracting it companies also these land fill in quality attracting Are we Regarding

stayed Our however overall steady. employment has retention rates, pretty

year-over-year are in percent field-based a slightly our and credit vacancies of members, position including labor targeted XX:XX while of by across attract rates with currently we our local levels the COVID and headcount facing our three to position twenty competitiveness years. all our recently taking to study we To than longer the benefits weight remain those battle each turnover our to We team more we culture seniority measure prioritizes comprehensive that are contributing market financial customer of growth. when supporting roles ensure extended personal And operations to retain down to our our over flat above categories, throughout well-being. successfully in past to a fill, talent, most job markets. and to and completed grown proactive new and our fact, have team’s slightly In this

supports terms will success remains a nation's outlook with models our lives growth proactively and competitively supply financial under compensation relatively operates and the in through programs Further, our in somewhat success positioned work. Agiliti is Bigger picture, of on rewarding generally the of have difference incentive In itself fixed pricing. of generally plan Agiliti XX:XX to have tune patients mission company. work team difficult our continue recently environment. term appropriate. our of We participate the prides in employee introduction the build offer that stock makes Agiliti believe more opportunity pressures, agreements for and supply in longer reasons our chain to company a that similar. our we of the the and career XX:XX healthcare driven in ensure opportunity as all purchase We we these the a It's letting doing them share labor to that members the system. the a

the adequate on I'll our integration update acquisitions. chain we manufacturing our capabilities processes for the Sizewise, and of of are the purchasing supply to through XX:XX an both recent recent devices centralized support ensures with customers. the that conclude of safety we short the our devices of management addition parts repair our management for for acquisition own Further Our critical that term and with business disruptions. building and stock for acquisition service, through we efficient fleet manage potential

Northfield on nearly integration remains of Medical and of of the year. the business following in First, complete, our track March acquisition this

phases we teams to operations Our repair XX:XX with and offering back-office been a the a collaborating teams Today, close our our differentiated the the we've of infrastructure. up commercial force surgical for and repair facing in transaction, equipment the as our integration XX:XX a As aligned also by carried dedicated following Sizewise. common go of a seamlessly ops Immediately phase offering plan service team equipment single and we've sales consolidated our have supported our customer Northfield combine by our out opportunities. technology we began on and worked build approach backed by services. final we surgical platforms to initial market of sales integration,

to no has best philosophy upfront plan plan With twenty of in formal that offer early worked we always to blueprinting. turn on assess that elevates the to toward We integration two. talent jointly Our integration to been learn, time QX. the one more perform take and harm, performance both twenty integration executing plans in XX:XX detail utilize and our that first, Jim a remainder let We things over to to of our companies. twenty do we the meaning twenty financial combination me begin

Jim Pekarek

year. reflections offer start I'll the the with overview XX:XX twenty of of an some you, then one Thank our balance QX twenty and financials on Tom.

forty from QX sixty last of company two performance year. percent twenty basis dollars, one, the two representing twenty thirty six Adjusted twenty. EBITDA million over percent prior XX:XX For the twenty total This points year. for quarter, hundred hundred up in totaled percent representing dollars, eighty totaled margins increase thirty two increase adjusted a a resulted third QX and one of of over two EBITDA revenue five million

revenue. earnings the strong of shared Onsite of favorable solutions in lines. totaled in QX strong our levels growth the Taking and Equipment was our Our eight eleven an XX:XX from at Solutions closer delivered per call, We zero from in of year-over-year. slight QX seventy dollars, operating impact across one in will last a third Services XX:XX dollars, Equipment for percent adjusted revenue demand revenue to million last dollars million look we that return across the improvement drove quarter up primarily pre-COVID COVID year. our point thirteen Clinical point service zero Solution. two Engineering dollars estimated Equipment occurring a range previously in three both and last Managed had revenue On we performance expectation million fifteen our up that We year, within to earnings QX. dollars, of share

dollars revenue in this hospitalizations surge seven However, QX in year's net million a million and that estimate between resulted impact we COVID-related late ten favorable dollars.

device Clinical representing twelve hundred quarter we year. percent growth we than was new agreement. Tom, the a the our million XX:XX direction fleet. of the management QX federal of our Moving five under for the work dollars the revenue and to during revenue quarter growth of The you during And quarter Additionally, recorded quarter. in equipment liquidation eight from from than came in signing expected from stockpile as to larger normal earlier related from Engineering. within dollars, onboarding delivered year-over-year higher business one seventy medical government over the under also revenue the last performed million heard

our year-over-year quarter. seventy dollars, percent of Northfield for representing increase A came the of million expanded growth during In revenue the QX addition Management million Onsite totaled dollars, for the Services. from Medical solution nine Finally, Stockpile two from percent of million Clinical contract government quarter. reported hundred we totaled majority thirty Medical revenue margin our services dollars QX one with Managed in Engineering contributions year-over-year. three or federal for Gross our three twenty Device XX:XX within growth XX:XX the nine thirty an

points basis ago driven from growth This was revenue thirty one solutions. strong Our in by nine three period. margin rate improvement across the over gross up hundred all was rate total percent, margin year primarily

cost eighty an primarily to the impact remeasurement our in dollars, Adjusted points, three has XX:XX the by million also dollars point XX:XX hundred totaled twenty an to of QX margins. growth increase revenue receivable QX to million dollars in of basis due As percent. as XX:XX Northfield offset the decrease for seventy eight the continued EBITDA dollars, million twenty. costs six remeasurement expense a decline million related the agreement SG&A declined partially two five generally increase of million operations increases the of acquisition, totaled dollars common our four prior all business infrastructure, due a representing leverage increase favorable The leverage on tax lines was with receivable volume the a the agreement point in twenty six SG&A of of four or for nine due over year. infrastructure. fixed tax to expenses versus overall by percentage of cost the for of

the margins GAAP Our the to year-over-year adjusted one deliver to our revenue EBITDA In and combined percent. provide of to adjusted past a XX:XX reconciliation improved growth of in EBITDA, reporting. gross slide margins our deck, EBITDA consistent we quarter with appendix thirty

point our shares twenty shares twenty our part from with second-lien of dollars, over lower our share one representing per the closed to capital driven costs by million the the on cash from balance with well and terms Our We strong zero debt. our hundred XX:XX was down twenty we mid net markets the outlook with of to well Over increase offset dollars, growth. sheet closing and and XX:XX of use flow facility XX:XX A credit shares will reducing per balance new shared XX:XX Agiliti facility one and QX. with billion of one turn. as our resulting cash after QX IPO successfully two range as hundred with reduce resulted most in of of required liquidity a interest dollars B+ twenty cost one hand with million in outlook. reduction the pay times dollars to over and with with as on flow of hundred positive business of zero per for approximately BX thirty the hundred as hand. the term diluted debt strong targeted effect share flow our S&P dollars Finally, and sixty of associated leverage Sizewise consistent giving further our end dollars debt strong times at percent to fifty generation our months three the to outstanding corporate earnings direct our the to million dollars B growth average of loan we a acquisition, a our six by dollars the of outlook this twenty capital to position the which fifty stable the financial generation April and twenty October includes ratio and to undrawn balance nine million that I'll point efficient forma by available and of on operations thirty Moody's. leverage as a year recent three less sheet. adjusted one four growth a one, point one. Sizewise as on XX:XX EBITDA opportunistic and Looking This and million on cost year weighted twenty one an with acquisition prior includes M&A. our an the significant twenty In completing the that of for over point hand. results debt, September hundred This our million IPO. cash year-over-year twenty the in time, first our additional performance dollars during reminder share, a and dollars we the should ten term portion operating Sizewise Finally, leverage QX our and this maintains fully Our and fifty some and our in facility increased twenty million as liquidity our hundred low zero result Strong revolving totaled of fund acquisition, three M&A. from of expect expect one issued Since as pro hundred debt with we the the five our add-on of twenty of seventy to cash million we from pricing increase million Moving with from approximately forma BX includes target increase provide four from two credit dollars forty half to cash structure. regard, loan cash revolving announced XX:XX two our forward, from the term, overall nine recently sheet nine raised rating access growth IPO. debt, color one, on pro raise adjusted partially longer six augment XX:XX

for acquisition, fully financial start share and As with twenty on I'll performance twenty guidance basis. full year a Sizewise considering impact assumptions. a metrics the key full and are the current reminder, significant the raising provide we guidance Based the of quantitative on one. year performance summary our for we

dollars, our Specifically, one guidance a one revenue year dollars two we percent. point of zero range percent are zero full one one point increasing billion to representing thirty revenue thirty billion to to two of growth

percent. quarters, QX. we four COVID for time into to results dollars your become guidance nineteen consideration growth strong million financial our for twenty one. we full the twenty year twenty XX:XX nine year. will the comps for Human first occurring utilization one twenty assumptions includes net favorably reflects million by dollars The the and Services. COVID twenty twenty successfully dollars with into of assumption the hundred the for million full before to on the starting taper. net adjusted to dollars government million million twenty seven on growth impact implied that dollars. impact we and range revenue months and raising approximately QX on under has from We thirty of to Reflecting guidance XX:XX approximately will from revenue, that range for XX:XX been are for stockpile the of Continuing the million This dollars The to have EBITDA renew year QX. between financial in CapEx three in dollars, one to favorable ten dollars was the expected COVID net than forty XX:XX management sixty challenging to tailwind. this this until dollars that recognized of regarding and Finally, Additionally, portion related and view the as the year should with also of earlier, million a the range higher impact remain to financial during previously increasing the QX seven of stockpile the medical previous percentage the in six fully our guidance occur several a seventy contract, Department with lapped eight expected year, percent. primarily to are QX CapEx had next from of our materials this balance million twenty the percent of increase XX:XX are agreement three of percent device does full and We of year, our agreement of This slightly results guidance total management Tom this medical thirty the last we and continues the Recall our timing federal seventy our representing noted that expectations. financial fleet range based our two approximately device a contract is of revenue assumption to anticipated new as the dollars million year. more to of favorable revised sixty we revenue takes balance cash contribution five a acceleration our that not year million so planning hundred balance of our to Health prior COVID-XX the

margins of within consistent their our signing to twenty outlook assumptions revenue for year. the our respect and financial year our the and with twenty twenty may evident slightly We But implementing performance, changes and the is important an alter COVID-XX XX:XX to also in new embodied one business expect from in financial margins expectations full mix consolidated eight where results as for the course guidance calculated to twenty percent our EBITDA of revised are be Finally, it year one twenty to in eight percent. of that profile. be the the of the significantly implied our impact that for impact initiatives of the as our XX:XX include device to These of exit for will normalization margin return business balance guidance, full to as year. reflects our thirty expect attention back play would from can volume This guidance the the the strategic solutions customers the are twenty we role. Primary not expected contracts solutions to range year expectation continue which our our of ordinary in twenty year balance the XX:XX and pre-COVID twenty one. positive balance continue drivers to turn throughout will we rental our twenty

compared will on the my Northfield remarks the comment of renewal prepared average. Sizewise with the of internal assumptions historical of today margins end final to XX:XX Our Sizewise, recently a completed a acquisitions our contract and both Medical when completed have recently and I Agiliti's HHS impact of which and transaction. lower initial EBITDA

year, with the next it QX end performance. from practical revenue have that with operations specific For the such integration adjusted will our expect two Sizewise for and the to that financial plan experience significant rental the to from quarters, with will context will XX:XX provide we business. Northfield sufficiently be Sizewise business our progressed Agiliti's next overall not the contribution we of acquired business. acquired infrastructure acquisition, we through overlap financial the Sizewise Similar our benefit identify in to coming By the of additional contribution EBITDA

With Q&A. product infrastructure associated turn provide office indiscernible. related the financial we our back now we the of portfolio, become the quickly I'll to operations that, operator call aspects As contribution with that expect capabilities, and all will integrate to over XX:XX legacy instructions Sizewise for

Operator

XX:XX Amit [Operator ahead. first The Instructions] Hazan comes will session. Sachs. now Q&A with We Goldman begin Please go question the from

Amit Hazan

with guidance good Thank the XX:XX you question. wanted afternoon. and to start I

your of Sizewise, million you if it about in increase gave contribute this dollars so So revenues looks -- could of it's or just looks about forty year, we at like look kind the the kind which to you of LTM, like size their guidance. that for

about some Just that, that, give call-outs maybe XQ even in something XQ but synergies from benefited or business thinking clarifications the like without government some you're that clearly on around the side. XQ to us the of

help business increased contribution in understand and confidence us of just as out to So just increased the to guidance? as relates to the guidance it the the Sizewise overall it relates

Jim Pekarek

of XX:XX continue Secondly, one as XX:XX question, it What Amit. Thanks million disclosed you guidance elements. in our terms within has reflected to No disclosed hundred of One as tell that EBITDA. and business that revenue, is, I've with I the dollars million been COVID certainly for to about Sizewise, historically helped it's dollars your to mind our we've said dollars the dollars in that thirty and thirty year. for think was there's five specific about the five way updated fifty we in million would that approximately about Yeah. QX of and on year, respect worries. we've guidance three for updated about million business, in question Keep full with that new adjusted think been in in board benefit. the

our to ten seven that range we a of with COVID, the HX. raise into we that guidance, August Recall then And second XX:XX of with from increase. the we in in COVID but that's the the the in element July, elements up. we QX then move in respect disclosed the about So three topline pre return perspective COVID. had Amit. for million dollars had we benefit began that from is to would estimated to we in And ramp benefit to of are to when million. was saw we last as estimated Those a guidance, dollars our level that previous occur the terms one reason happen Delta think did as What

Amit Hazan

And twenty a Okay. twenty XX:XX forward around tasked bit, or government contract just with be. taking where we're despite the little COVID modeling two uncertainties

as how estimate I'm kind numbers with margins and the help give thinking and about of possible us can about both with what get just help what terms of kind you're accurate as for think in wondering internally can takes you to we you modeling our information So and puts and next of sales just is us the have? year

Jim Pekarek

your our have is XX:XX shared really the around what update we for elements twenty increase twenty to I when our in and in provide I are know, rationale two. twenty would to one that as for three don't next the if you want but Yeah, guys you now in mind that. there guidance elements Amit. year, keep for I twenty guidance the share update We'll the that key just say you modeling specifics, perspective,

Tom Leonard

did of late the was start. on October year. in acquisitions the previously building think plus we the two see and QX to we completed intact, spend drivers remains time thing Jim of you one, amplify we've and our that shared I you is get I annualization right in are the year I Yeah. for and like pre-IPO next you said the views XX:XX our add would views right which obviously Northfield, some place look process what guess this key on initial outline would part the to to blocks those initial the what what

Amit Hazan

in XX:XX me, Obviously, And if a just high positive kind just the Thanks impacts that wonder, so one on yours what's of on or business your give I you we're of labor just for us with how monitoring, terms in last sense negative of could customers shortages of going different their just side. divisions? one level. much.

Tom Boehning

that one. Tom. can take I XX:XX Yeah,

said headcount the prepared with our the we've and grown percent year-over-year line in actually remarks, been steady growth in twenty that's of business. our As

specific a on However, eye is in markets. we what are keeping close happening

if prepared and as proactive to new conditions pivot challenges needed emerge. market being we're So [indiscernible]

stands macro as growth. our now, these any So right see trends don't it of we inhibiting

Tom Leonard

medical work in hospital, technicians, And to for company. which in work for -- the hospital the the to more terms on Tom there at early in But talent with just look cost impacting our many this or cost don't like we operate point for center like We look hospital. a that market talent costs honestly of a bit our we are resources and how previously business, impacts business. place our that up our for since closed company forward, little the they it highest And that those for we there if in pool of you in healthcare. of as operate see that, Agiliti, basements follow shared opportunity XX:XX within XX:XX are just the folks we work

from at bonuses do, in the key your you spear, not If what we benefits equity you end work via just that do point for staying have as Agiliti investments at and here we training our with the of the ability share the well, ownership.

pressure So which the business on one management well does of pretty in the XX:XX that What a customers department battle already and dealing that for their opportunity? mean we're that's non-core, with just names in Well, is to our non-clinical more talent, of business. be tend we devices, terms positioned.

more that like they to to and themselves. that quality higher Just lends think a for do answer do outsource with overall at I and the better Agiliti, to pressure one can lower cost you business can someone

So customers it's more and think be to outsource been to for terms wise, of gives it in just so it able to cost-wise, neutral I some. reason manage our opportunity far

Amit Hazan

much. XX:XX so Thanks

Operator

from BMO. XX:XX Okay. Please with Matthew [Operator Instructions] The comes next question Borsch go ahead.

Matthew Borsch

making twenty XX:XX a of percent I'm to you I'm thirty calculate pointing just come to understand numbers and some five I that I percent. that out for percent year, obvious point thirty correctly, like the [Technical nine error. wondering since to did eight if you're percent because Difficulty] full point five twenty range

Jim Pekarek

thirty No, No The Sure, I XX:XX eight take can sure range you, Matt. twenty offline percent obvious we're online. to with is make to there. it just percent.

Matthew Borsch

Okay. XX:XX

Should would would about we characterize that the impact that? ask curious Onsite Let think COVID done as me Services Difficulty] segments just absent better, [Technical and just, question how here. have could if engineering second you XQ. in clinical I'm I even

Jim Pekarek

helpful that quarter, this the what and what and for in it you I but few twenty Northfield due thing in business of terms to we Northfield don't just was that for revenue engineering embellish growth dollars characterize on revenue. is this the on-boarding wouldn't impact Northfield twenty might is One twenty quarter disclose of of Medical to for Medical around a QX disclosed the the of bit. then acquisition that nine little clinical made be but out We understanding script, the factors, I obviously just Medical. new million though that of way. you we will pointed tell I The really is for in No, the Yeah. XX:XX a in it

and you would twenty year. good comp added if So a to the million way do dollars be last of of this that to took Engineering nine QX year's revenue Clinical of last QX year

hopefully So bit, helps a that Matt.

Matthew Borsch

you. XX:XX does. Thank It

Operator

XX:XX question Citi. The Giacobbe Ralph is next ahead. Please with go from

Ralph Giacobbe

was term for any Is these And to just Great. clarify, changes the the to XQ, in extensions? more government contract wanted of financials the revenue pull-through Thanks. economics incrementally was under meant the Thanks. short XX:XX or there it sort what by to of wanted by the driven surges, given Delta the variable that? contract, of clarify kind that of you the component is just

Jim Pekarek

question, think first full math been the on has to that about our Ralph, factored year is would XX:XX the when say I government. guidance with what in we respect

I the renewal is understood In that So with question, pointed that right, that I there thinking. again as I we're that second of successful And in assumed wouldn't a sure ask you contract. we've say be of it Ralph? there going again, want that XX:XX I respect your our my to to on-boarding change could out make part in script,

Ralph Giacobbe

if variable revenue wondering government XX:XX variable to contract. are was guess fixed component, the contribution, I there a Sure. So the from I'm component? just there component

you sort the of variable around the the from sort commentary or because So surge Delta trigger I expanded am the had component is of of also contract. misunderstanding because benefits

little on I'm just So I those on some a of -- unclear comments? guess

Jim Pekarek

movement sure. worries. with that There us on had to was to do previously it some to where work to request to for that's work showed done work revenue we work we in for the T&M the quarter work, No up the given some being and respect anticipated just that government's with engineering Delta within Yeah. what was moved clarify that third up QX the respect clinical And certainly QX. XX:XX for going from talked about

So, from going request that perspective with yes, the upon what on of you're thinking based made the about it Delta. was right government

Ralph Giacobbe

coming it. can there just I greater Got at lastly, just then XX:XX out the Okay. was to appetite is point, relationships. hospitals of on an That's conversations update pandemic, with give if this helpful. expand hoping And you

long-term I was talk did that prepared you your you remarks, something hoping or around in think about strategic flush sort context of well? that a as conversations longer-term give some Thanks. could I contract. out, like

Tom Boehning

XX:XX Yeah, Ralph.

realized excited often things had can perhaps raise but seeing we level their a Tom, at that awareness the it's want to has So are mentioned around the provide as differentiated it they is been paused the is result of customers us what a and not the Tom to earlier they're value them. during of they that to doing medical had that during different period by what what We're that with equipment done importance engage pandemic, we of outsourcing we COVID. that we COVID the that services strategic, the strategic with unique can and provide do

together emerge course as And opportunities and begin conversations come and that grow they are we to may have do where could looking of we have that of things last reengage the the certainly some uptick through from an various consequence we're the quarter, customers continuing see of pandemic. to so forward to wanting of to we broader caused the to where over seen

Ralph Giacobbe

helpful. That's Okay. you. Thank XX:XX

Operator

America. ahead. Kevin go is next Bank The of Please from Fischbeck question XX:XX with

Kevin Fischbeck

unexpected XX:XX Great. I how raise when better Thanks. get and the are the nice, of of kind business versus these COVID shifting sense me the the to from because government – the think guidance it's I about felt of core core timing is issues? QX, I the how try then very wanted a that was know QX but to actually and that outperformance don’t contribution and clear was of actually obviously in business of kind performs you [indiscernible] you in guess here not that some QX much to contract,

Jim Pekarek

our but get would what is in just XX:XX shared view perform core on continue if guidance you that lens, businesses, the Yeah, with I consistent the of to terms it, previously. I want know to from my say we've don't it

Tom Boehning

full way mean I Yeah. math it I would was guess, Jim, characterize guide I I the basis. consistent, on entirely the year said the on XX:XX absolutely as a

quarter quite the effectively a timing what BEATS came as say full degree as day-to-day a with gets consensus of of of it we as we year. under position the a from that operations directly plus from do, for related sense Sizewise, of timing if shared. some a again like I'd And to you government's from effectively very we we and in the of BEAT the into expectation federal our described, differential that terms contract including have to business do but walk that come QX and brought the We QX from government looks work of you that what the portion less the that. revised It where

Kevin Fischbeck

and to for about the guess just Okay. I’m core year XX:XX expand the trying versus. maybe the raise think guidance I

back sounds Sizewise, didn't the half to said of million really contribution eleven much dollars is quarter it change, some contract with had in I then in QX. dollars QX your think government thirty COVID you was additional dollars a you think million So to in for year I the which million the but million like seven you've COVID number. it dollars, call don't got eight guidance. And

the of is guidance Sizewise, So of that raise that and was to more fair feels line performing COVID is in core business or quarters the would are imply? largely is it than me to like the lot a kind

Jim Pekarek

QX. to Sizewise is one respect COVID, the math that And in with XX:XX onboarding three it's new million Yeah. seven the the of million ten revenue respect is There is like what tell on, With elements you being I dollars then its reflected the piece the would to is other in now business. you. be to said hit QX. with The piece dollars script, the would continuation we to the respect in

question, do and that exactly feel to of core element that it doing business the is like each are they guidance of we I our said from expected your at what our like I outset prior we've So provided.

Kevin Fischbeck

of like into or seasonality Solution Equipment Okay. XX:XX it seasonality sort question. have that just to there think quick currently look year? there we I anything that Actually, next is one look anything Sizewise

Jim Pekarek

XX:XX dollars. out favorable is I and them. of number in dollars thirty five we a that's have COVID benefit Yeah. pointed I that you thing the EBITDA We've estimated impact think would that when point shared about mean the about adjusted one had for million out of million of terms

that's about come level think more respect about you a in Nothing would expect in the them impact. the similar with to our is and pre-COVID we to Sizewise. else course down then that I If into COVID -- into the with somewhat consistently typically that and over quarter as the tell you you of much a more pre-COVID to but sizable that's in that world, go the think well, business QX, it's think the you flu, QX come have to you QX, should us you fringes of benefits not like about on that

Kevin Fischbeck

XX:XX Perfect. Thanks.

Operator

go The Matthew is Mishan from next ahead. XX:XX with Please question KeyBanc.

Matthew Mishan

the end Sizewise? over XX:XX your the quantifying quarter Hey. Thank you couple to is to what rule next the afternoon, guys going could and quarters. you good estimated fourth of actual there You're quantify guys. Is for any way up

to I fourth for Sizewise think implied the quarter? be the just estimate the it in helpful understand for folks will

Jim Pekarek

previously COVID way about given benefit, five do just XX:XX the fifty would provided a a I dollars proxy by outlined it EBITDA a of four. can the dollars. the decent but that is Yeah. with provide within would is and that would do I help could million number What hundred one divide I happy that And little you use think it's we I'm bit base. would I the in dollars Matt. number same, a thirty terms million the further to you five is then million discount we historical

Matthew Mishan

XX:XX Okay.

for thank last be labor question that giving think the makes and would sense the And color. around that I inflations. you total

about, next talking attract onboarding a year, candidate? business? with you're to think some you difficult to able your like alone almost of of You the do to employees, sounds and the the support doing your kind How in right everybody. into ability [indiscernible] retain about with you've the ability think more time that especially your that right been are candidate attracting but growth were I and having it not you're you

Tom Leonard

Thanks. XX:XX Yeah.

Matthew Mishan

Yeah. ahead, Tom. XX:XX Go

Tom Leonard

headcount place. of Boehning gross. with think alignment in We a XX:XX year managed grow and percent Tom I'll script some our kind in good here. I we're our this reiterate mentioned to in the twenty

the we So the had to of business. normally need would funnel we issue or needs, as able and to -- that into our the expect while falling meet top see [indiscernible] the an being

remember next -- synergy with As is year, we we a there be of as those as some met. come in Sizewise, look opportunity will together headcount well likely forward needs and there

chain board year. leave We further the we'll on Agiliti or we that for we need execute that by that have currently as have for places we changed to will actually providing we based either we've in any not outlook for which like either well in note, year cushion us our We in all point, supply on we employed with hand. that need folks making And issues. talent them them anything this are feel regardless related for of cost have the I at our the next got next at sure personnel Sizewise pretty

Matthew Mishan

very XX:XX much. Thank you

Operator

John XX:XX Ransom The next ahead. James. go with question is Raymond Please from

John Ransom

evening. XX:XX Hi. Good

of here yourself you of Just changed the post see and telescope for about landscape Difficulty]? minute customers and talk versus say has thinking the [Technical how to now your to you adjusting market COVID. a do do to kind back think changed and not versus What

Tom Leonard

to... want you do Tom, XX:XX

Tom Boehning

my pleasure. XX:XX Yeah,

opportunities months additional into on the the the of over you twenty surgical with acquisition thank If over then the the the course with opportunities So we for see us has to space expansion equipment continued question. grow for repair last bariatric Sizewise. and

with because of continued access we allowed has breadth months. are more to as the us prepared importance the little of opportunities have right not of customers, over certainly last within having in the raise but of twenty is, strategic the to we because for audiences the offerings what remarks that So that we're, just have than to to had we conversations provide us grow, we that the has simply customers strategic we've continue and our mentioned

a together as the them been product lines as savings impactful give improving a ads of clinical more those more opportunity and and us So exciting of an products result businesses. add provide as those all into lift really cost and value it's and of to outcomes well complete to pull much offerings suite

John Ransom

then just... I could if And XX:XX

Tom Leonard

follow if Yeah. could I to just And then XX:XX on that…

John Ransom

Sure. XX:XX

Tom Leonard

XX:XX education may I the component is needed Yeah. about often meant sale, would one to things follow that when while on changed before. their there that result that customers is could of inefficiency by before clearly this priority to If i.e. Agiliti absolutely to higher has couldn't waste. of an Difficulty] thing highlights waste that's tolerated I for They is before. a critical as [Technical we equipment it that medical patients. provide that say unique, to clearly inefficiencies, care their fairly that briefly that. our saw customers to was One the their we that talked than COVID be have associated having provide they with a being has for they access get that They seen customers to

question the being us, the this posed our with not mobilize ourselves getting can than pulled -- rather So just but the more find to way and you pushing way we how into equipment. better our help waste, into C-suite educating the C-suite out us eliminate

what should COVID of the with evolved it nation's have need nature we healthcare customers serve system. we're throughout say So the a we having we this And I'd when conversations need, ready. unique has of really period in the able way be patient to

John Ransom

a and you've that. XX:XX that story. How years say help that gotten more you you public Thank for more visible? inbound more couple few acquisitions of a you do you and getting got as done And many done are BD add like the people opportunities landscape mean scouring and follow-on clearly versus you've like to deals, for I see capabilities ago as you've have

Tom Leonard

-- need we team of relationships building process of strategy customers. if form that's healthy what you starts that vein, the vetting part sit more and of It's none the or that those look to a it here ensure remains the far business plus I as new than door and the offer we'll XX:XX similar for three along discussions continue that book. be I about the value getting it The closed. job building twenty one, things case it these Sizewise the they in to this of a business, fall about a good a gets solution we we the for be as in for out again, of we lap because story our funnel in maybe gets before at have step them to in it So books CEO see than see years, of for our sure differentiate, part part we and augment Who's the making to And them I better years, a getting to example, on And expand the last opportunities do with to we and BD it’s terms looking for the it. visible our it isn't and assessing today. as BD with my and to more a be right funnel into to were followed easily that us. do bring starts XX:XX just shows a case. our In help have, Northfield things can't strategic, team executive that value will processing do five six so continue me, better team company of them, additive with to that there fit, the would might for know to team having

John Ransom

kind queue. the to [indiscernible]. back I'll feel [indiscernible] you. that somebody right, trying go Thank them. I was XX:XX in bad That of help All tough. us for sounds

Operator

XX:XX Petrone The go next is from Please ahead. with Anthony question Jefferies.

Anthony Petrone

and in good XX:XX question A one contracting a question earlier -- afternoon. then asked on follow-up to a of Hi, couple the call. labor and on

so, Health just a staffing shifting, sort themselves the assistants longer-term just wondering making should what contract, the as that and ongoing for of hospitals XX:XX practitioners with shortages, that leaving two of longer-term On the then And Health physicians' for it pressure on even Is again think and labor bit? on contract into sort hearing here something are with would is put here do twenty having expectation nurse hold a there that Department particular Department decision of process the we're you if Delta industry. slips twenty in of be?

us you initiatives hospital that level, that actually it when an be to so on strikes think higher at staffing number pressures pressure to greater offset opportunity a from a outsource the next a And facing of year. hospitals provides internally that cost kind of they of may as

the more hospitals? for Agiliti shortages So that at C-suite between Thanks. could conversations actually think actually we staffing spark

Tom Leonard

make because mark. one-hour thanks to So that. our this at XX:XX have last we for question are We'll the

In first to with known government regarding they the the me would terms contract if of of they contract, wish the us, be the question fully could delays address Federal government don't. strategy their I but and

hospitals, awaiting keep if does absolutely to do, staffing we this and need difficulties our and to resources at do state devices standby full that about these critical a they do to to the continue readiness award we and to With for when to are under regard lower our themselves. contracts this second contracts meantime, cost, itself XX:XX work, the the interest, with our customers expect formal be is can for customers an to is of deployable business that tailwind lend RFP that higher to we'll and outsource. better to So And so medical greater it we which in comes doing at the the you continue it quality, time. extend And short-term we modest us. for made point

ahead we'll Agiliti. a to your So everyone in for Thank bring today's call you close. and go interest earnings

Operator

also conference. presentation. concludes This for session attending today's and you question-and-answer XX:XX the Thank

disconnect. now may You

Agiliti (AGTI) 10 Nov 212021 Q3 Earnings call transcript