AKU - Earnings call 4 2020

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Operator

Good morning. My name is James, and I will be your conference operator today. At this time, I'd like to welcome everyone to Akumin Inc. 2020 Fourth Quarter and Year-end Results Research Analyst Call. [Operator Instructions] Thank you.

Mr. your begin may you conference. Zine,

Riadh Zine-El-Abidine

Zine, morning, Thank joining year. thank President Riadh for and for you. My CEO Akumin's Akumin. is fiscal Good us XXXX results you the the everyone, call of I'm and name and for

presentation akumin.com. visual to meant copy a today. section of accompany the available on note, Investors presentation our A is Please our is website at

to me in that uncertainties begin, financial let to remind asked given today's may those results Actual call we certain subject discussed business differ you and forward-looking Before matters relating constitute materially anticipated answers conference or be are statements. future statements from questions could these that in performance. could to that Akumin's or risks forward-looking

EDGAR. these on statements, that documents disclosure. reliance can are under and reliance undue cautioned statements. under on These particularly risk future detailed to Akumin's results performance. to these place no investors not affect profile in should be or accessed may forward-looking these financial factors public any undue results statements The the and place statements and discussed Akumin not periodic obligation are on today, Akumin's is You on update forward-looking on SEDAR

non-IFRS certain may refer conference EBITDA as call such adjusted during We to EBITDA measures this EBITDA, margin. adjusted and

Our are in included these definitions terms for our public disclosure.

of measures Our measures results intended additional providing by GAAP and use information non-GAAP understanding complement these our operations. of to further of is

report financial Our on Slide begins X.

as year XXXX U.S. As statements the interim and U.S. released we begun GAAP we financial could have reporting our you from GAAP, well. results in our tell statements, financial for in have

our can notes MD&A. For our international investors, conversion be found IFRS in

million the of as Diagnostics tuck-in in quarter revenue of the to offset can Advanced by for XXXX increase XXXX. $XXX acquisitions which increase COVID small for represents Group impact our generated million compared in acquisition and we of year. a our of during summary and slides, EBITDA see was year, the again the will The from you other a largely and As million $XX pandemic we as of support $XX stakeholders, was for touch employees total our the Adjusted Despite -- the margin for for to year year with to fiscal the the dynamic, all from on down profile. our able XXXX. million the $XX I maintain later, year and other were

Slide volumes for to the XXXX. discussing Moving and the fiscal X

As the compared see compared QX. slide, XX% from you can and continued X% the COVID to to up volumes QX increase, quarter, to

XXXX track volume experienced is decline ice validation the result we So volume Texas far, obviously XXXX, our to in same X% normal based QX to with QX impact the Still, overall QX volumes expect Texas same-center a as a pandemic, operations, the on pre-COVID the we storm similarly saw of even a QX year-over-year of to in and X%. in quarter on the QX down back the in only preliminary levels. coming to in of we information, compared saw volume as XXXX with which we

The on of it's reimbursement the our change a to or whether revenues. relevant for a increase don't fee quarter experience on our year, we discuss reflect acquisitions was the concessions price reflection implicit experienced collection more Slide impact per the the number acquisitions of our just collections pandemic rates of fiscal completed And along Let's These move legacy the for number XXXX XXXX standards the year the it new XXXX, the obviously, It's service with platforms. resulted the $XX. we of the any for again fee required network our the $XX any or the made, here in of to platform of year from payers. concessions all is X which $XX. -- have for and RVU revenue in revenue we and on with service and the

had in the in on quarter, booked impact concessions quarter. price a booked these to the Because be fourth they revenue had the obviously significant

believe any by or whole XXXX for the quarter any in price should be for by RVUs full the year the run rate multiplying we XXXX. of However, the period revenues calculated period fiscal in the for

service For million, of of of RVU approximately fee example, the that be $XX million, X.X which approximately a generated in for would million of would quarter. in more price at line QX then XXXX, than the $XX the year per where we the RVUs, imply average total with expectations revenue

was from loss grant related HHS, Our funds including practices which included $X other December that applied incurred was to million consistent in revenue grant connection XXXX in CARES Act expenses revenue of $X.X and in market COVID-XX, and of with revenues. million $X.X was received and total million the other in with the under

X. Slide to Moving

public of comp of part XX%, adoption included sector, revenue mix other the our medicaid, other X% mostly insurance in our you commercial and now our As find disclosure. mix many revenue. at Like Medicare, X% workers' accounting, is X% U.S. in patient will our companies revenue XX% XXXX GAAP

However, we and also revenue. mix like attorney most companies of our from have in XX% the sector,

more court accounts cycles, attorney category attorney up separate are commercial, the made of exposure much as are contingent our of auto, On settlements. payment cycles have than dedicated of being proportion of around exposure XX% to in be on XX% space which XX% at These -- which Medicare. to often others AR. We of resulted attorney longer our XX that longer XX%, whole, double instead revenue payment and receivables find to from victim payers lower is our part as our a processes forms most in Medicare also tend classify than the we mix this much what

Slide on Moving to discussion the adjusted EBITDA on X.

year with versus see, $XX to year margin adjusted $XX could for last year. adjusted you As XX% EBITDA as was of million the the million EBITDA an compared XX% last

to profile as Even levels, about kept with volumes able including return, due much volume the acquisition levels. COVID-XX, to margins normal redeploy 'XX, attributed significant our XXXX margin return to year. a and expect as normal full we for completed healthy of manage what and were expense to Our return volumes successfully decline, that's lower volume we volume XX% the by business in for to obviously volume margins were and the to impacted

I Now it would Mohammad to Saleem, our like to pass our our Officer, profile, as cash over Financial position expenditures Chief leverage and to well. discuss capital

Mohammad Saleem

everyone. Good Riadh. you, morning, Thank

million, On $XXX These the respect million. Slide not X, that million leases, debt leverage, as XXXX. was reported our our the leverage and December $XXX you $XX the it With place do includes at in February about financial profile include see information. finance approximately numbers in debt to XX and net was financing total statements will took

we Using net of range adjusted X.Xx assume run the as the pro leverage low business our with of about press This a in guidance of end release, rate of December ratio a about XX. forma $XX EBITDA of the implies million.

our initiatives. forward, we service will new Going other delivery from and from benefit improving expect leverage business volumes platform savings and our

$XX to to accounts imaging revenue. capital to implicit COVID-XX is XXXX to million mainly higher in and normalized affected at about at to for December was XX, the about decrease expenditure, XXXX experience receivable integration respect X% expectation ratio it of the our in X% capital of expenditure-to-revenue due the line With in centers versus September $XX by typical respect With between accounts was receivable, with during collections and incremental of concessions million X.X%, company's The the price which QX is acquired XX. of relate 'XX. which XXXX,

with the part at $XX was at December XXXX connection cash $XX was facility net towards acquisition. XX none operations. the applied issuance cash also and has Since in The received COVID-XX to in current and Human have million Services. the steady to to of and ADG issuance due mainly is working versus Akumin's received proceeds notes the purposes, impact the reflects new the million in February notes XXXX in capital for credit business in XXXX grants note began by November about have The as from and management Health expense in $X an been September U.S. repay cash no million senior senior the balance The ongoing received draw transaction company. applied increase million March of balance volume from pay to XX. $X.X improvement November the Part of made the earn-out on in XXXX, cash and been from costs the

pass will I it back Riadh Thank now. you. to

Riadh Zine-El-Abidine

market. Even strategies, which SEC with COVID's its saw see on Mohammad. summarized can you, registered X. XXXX on you Thank the We sole NASDAQ Akumin market trading lives, both Slide NASDAQ of many our commenced advance and and the with still with listed capital our terms impacts U.S. of of all in XXXX, trading NASDAQ for September the becoming has -- dual in the TSX, currency where the on become

trading the a trading seen We since we NASDAQ. have our in began volumes significant increase on

bond placement a senior secured of million. offering, was $XXX notes principal We value a U.S.-based also which completed our private of first for X%

also pari passu We facility $XX for credit revolving security a million. maintained

in U.S. we each quarter have financial provided for begun GAAP also reporting interim the U.S. released With in the statements financials XXXX today, and all well. have GAAP in as

previous are future events In to On million. will our offering proceeds, Slide expected financial to the earlier, we $XX in early of a the subsequent XX, to in our earlier alluded acquisitions. The as as noted completed statements. bond applied to few highlighted releases, -- for February, we've tack-on be Mohammad indicated press

completed ERP a part equity our technology successful company will we of which modernization. also supply We platform AI an an in investment integral expect

us Our earlier with an has of resulted in interest XX.X% investment business. of conversion together the debt in the $X.X million, investment, owning

our we to which Now are on guidance our Slide press review release released in levels, and like XX. I XXXX would year outlined fiscal which

Revenues adjusted $XX RVUs our For $XX to million we the of to $XXX X.XX to is range range range EBITDA is X.XX fiscal million, of volume, to a and expect for million XXXX. million be $XXX million in million. guidance

These number a of guidance on built levels assumptions. are

on levels. our of RVU modest increase First, we XXXX a QX very volume annualized based

into Our data impact volume discussed after suggests Texas the confirms operations. initial as storm and in even level ice XXXX taking account, our earlier, for already that on QX

fee assume as this the RVU per XXXX. the earlier we includes revenue Second, this our in discussed implicit we in same estimates Obviously, concessions achieved same price call. service

be the as would from have high million of clinic Third, potential course result our had guidance upside acquisitions which we as could for geographic which as well as other resulting bond tack-on is of from as the our tuck-in the cost the there the beyond believe well and reductions, general structure business in of We our planned end XXXX. deployment same assumed ranges, of footprint same over proceeds XXXX. we completed $XX cost acquisitions

ask remarks, This and our period. to the prepared question-and-answer we would the operator concludes start

Operator

from question Tania with line the Our comes first of Gonsalves Genuity. Instructions] [Operator Canaccord

Tania Gonsalves

couple for a me. Just

yet? closed what this can provide if guidance, if you it And on the one, XX-center Has if will So make update up? proportion anticipating it does close, still so an of or acquisition? you're any,

Riadh Zine-El-Abidine

you for Thank the question.

clinics whether for do of proceeds again, other that guidance debt assets XXXX. is the based of $XX -- So we none -- are on XXXX, of possession strictly clarity, in our the in additional acquisitions, related million of the tuck-in the volume to tuck-in will acquisitions in current or our today guidance. end and under -- The greater the potential the as that in

So number that's one.

we two, to agreements will make as these obviously, and with transactions. go close as Number we we into respect definitive timing, announcements

have and make basically weeks, all terms agreements February, and we time. those in We deploy in on acquisitions in next that bond proceeds from of we completed significant where the raised debt the progress that promised the at transactions, announcements made these as expect expect we to definitive to we the investors have

Tania Gonsalves

That's Excellent. helpful. very

seen? there shake guidance think out terms do of COVID? of kind number, will that to lumpiness the still some that Now be going caused quarterly currently on in of volumes to will be we've you do what historically think you how you're restored allocation? in terms seeing, Based by seasonality it's Or

Riadh Zine-El-Abidine

actually, sure COVID That's -- a if not because if XXXX good well the from from is question, honest, COVID, thing and recovery -- be to Tania. other learned start said We we're the really, normal seasonality we've seen -- the the first at I will is we've always past. will when seasonality seen in go look signs there think of the be I that -- to some back quarter. But we've

of typical. is kind So off start slow it's we the year. see you you very What --

numbers the will we of -- you Texas already seasonality monthly the return predict, normal what somewhat fiscal storm, quarter it it did feel we see the than to first So I to on we the also if for -- some we XXXX, course. I because will look see but normal see levels, will basis based other think in saw on if a we in some at when a have

Tania Gonsalves

Yes.

me, more provide And the in able you on for to okay. really AI something new equity interesting. any then That's Okay, investment that's color platform? the Perfect. lastly are just

disrupting news, yes. We're in background provide being hearing on that platforms lot to AI investment are can a guys nice the helpful. in about you radiology Any these so this see color active it's space, would be you

Riadh Zine-El-Abidine

to. happy I'm Sure.

Just like is names or -- I you're you of the with that in health, obviously, very the especially AI be changes technology, -- by question the no repetitive of AI you meaning you're tasks the not and space. based, some know powered cover whole that digital the said and based familiar There could part involved with digital and replaced is and software workflow. because AI which every with space, health really

-- than opportunity to you this for investment. color It's longer to took workflow. Part why and we I'll want provide we to really the me level. at expected of start reason XX,XXX I made feet good this modernizing gave modernize, a the it

going could valuations think But don't have the valuations versus companies of they're a tell give maybe off even digital chart Some are because them these people value. probably they're that to some that company another. the justice are for specific whole, the I chart are They companies for off the in health the charts. the as a create that off getting you, what

workflow small as what -- as technologies I efficiencies could think type at I The a and could a this, our AI-based save look in business and very they like picture. and what unreal. most are why studies service And do. cost could is digital year billion $XXX efficiencies, that's of result, per talking savings about it's health beyond these quality companies in the

So the what's which level, driving valuations. macro that's really is the insane

an that to even revenue revenue patient patient journey this not the the working just this to part from have in more they a or -- be imaging journey specific in and we workflow, wanted than a and a And relates to complicated that open companies, the is established obviously, with very it it to the learn from more with front applications a finish. more of that tasks been obviously accurate in -- companies services. payment base does number have be to insurance other open are architecture basically with the and crucial side established fashion the important that what accurate investment, our address It's do lot sense significant start an so and repetitive platform more a technology able of be the that automation to is desk. base side the As we software in of happens connect what them on do. could and very And a we

level We're online year markets. in you experience automate of where modern a of the were patient Probably the like about think one about our even from of we space. companies get of the is trying to experience. we're the That's to. the to to what vision had many came This different we research get to best bring. very very automation really our of up a we close bring it couldn't we in the we way, service we we spent the the to, level a way trying level searching journey best of retail to and names XX% an the companies way only close think it to And get the known want company that in

automation, be savings, XX% in a is lead us, the level not of although significant changing For disruption will to it service. to going

some time, it networks very community to because, complicated close very company, was significant to the the service to more although pleased level small care a start at to we fortunate basically the this financial the large to partner. not from want to. and build traction So how of for very vision have with service they've the we were to and in promising, interest automation a offices, and product physician got provide was were made established make May there health impressed company a with in ours. want to significant we but investment that investment for to XXXX like their we in become this get looks of And a that they We

is could than had basically we saw What and a knowledge lot help and more obviously, we they the we a know-how the And pretty enjoyed products. of vision that -- are their a May partner a the to saw lot they -- of -- until much also of obviously to believe collaboration than Akumin. from the the there's over the Not investment that end from develop year them check. got write last more just

with with journey could do the shared We both could in -- modernizing vision of are we and partner from help what we ours. in the the like an industry logic terms that for a that patient

the believe the the we're is about -- really transition I still that end year. plan, very ERP reason assets before the ERP successfully which the to and of is this Akumin. hidden the new we of And not technology. it that is this So one of done, to done, excited very, believe will no inside complete be have successfully network If our by this be to best and will

Tania Gonsalves

Excellent.

more that an it's but say So is it job not replace than radiologist, fair to the just AI seems platform analyzes think of images then a I essentially to to that that. be this doing

Riadh Zine-El-Abidine

It's nothing -- No, it's for actually be to so clear, based to tasks. -- do for just so it images. administrative with AI has workflow

could artificial replace -- AI that basically, administrative basically they intelligence tasks. So have technology

the people we the deliver companies to of study. talked are significant the any will this. because nothing of with side basically the So service, XX% digital what I seen the do we've now, health these And to XX% radiologist we on company. really has be on why growth going remember, always administrative. focused do are address I service actually that about this do that's software care mean is this companies reading To administrative an of important what -- so

in employees, is radiologists There delivered administrative are -- kind obviously, large in compensation them the should but relative we because that a The is is administrative reason workforce. I radiologists. of of not that technologies, All the significant fee doing have, our why mean the are tasks administrative especially the service the XXXX to of revenues, be tasks. without employee majority excluding other of because reading line. the --

Operator

Our Instructions] from Noel comes [Operator Clarus Securities. Atkinson line next the of question from

George Ulybyshev

in Noel. dialing on of George behalf is This

of rollout years? are status the new what's In your any or -- your moment? projects -- the of cost terms any for of improvement ERP system the optimization couple next efficiency And at this other -- for planned there

Riadh Zine-El-Abidine

Sure. George. Thanks,

So each are have developing is and in we're been integrating applications to up been we're where between the have the work. ERP make whole ERP make right basically the them other our the now the it to solutions -- or customize that -- we all -- identified workflow for

on. one of that's going what's element So

second progress element we is data The migration. have on significant made

data As servers ERP, migration we have new access you have of millions patients, all for getting to position, our when to of that the data. could all successfully we a old the we into data so are years have that migrated we that move of imagine, in ready we

is to the the on in time of these inflection believe And provide is when where that The data that an point that a having working because third weeks, a migrate market the thing on platform milestone. is we major all significant next couple right, all work these that, to in. will and applications update we will we're obviously will

have, need have you environment now The that All the the you done, when environment. that ERP. all convert data that after, together new then in new have that so the new to And has old a what work you of is platform. into as you you're clinics your and solution, environment. applications in At point, your all one all the new ready applications

before So the that's year. why we're done expecting the these be of to end

development of been done been the a of work has migration done of the ERP, So of the on work on old side on the of components ERP. lot lot A the has data.

couple in that, one of of the putting pieces putting of latter year, will over puzzle in and on the basically place, it's after happen the Now -- new then the together platform. later which the the months the part clinics next

that is the same, -- business we're -- and the go protocols market of -- the to care clinical doesn't the It's close are side. we also -- some There clinical obviously, standardized initiative what -- to about as the so where standardizing whole very the well. across another on that efficiencies business doing we're more working level initiative is that biggest initiative market matter the the the front on on you this because cost we're is lead as I another it And we But of are will is what's to update And just which side a on, in well. platform with that the a also Akumin have will important that on. there network. updating the the that's protocols we're talked it obviously, respect

terms XXXX, better business. and standardization we've especially the in blocks XXXX, with quietly in very think we're market regular we And to building actually and just efficiencies been towards in like ERP outlined or in in going AI the they're were like the this like the further other just initiatives challenging year. to of updates, see the provide investment, But I you going a working

George Ulybyshev

That's it. Got Okay. great.

centers to this on already things. are XX side into continue actively the looking enter states? beyond acquisitions so, to announced? for new And Moving look you year acquisition intend the Do to you if in to any of you tuck-in

Riadh Zine-El-Abidine

you. Thank Sure.

actually to I with So a not buy COVID XXXX it to discipline. anything, will stay even that think easier it be we'll where achieve I year think made said and I that XXXX in that,

into was a could doing. market look interested the into could And know one pause system the need systems where X we pause to is. Today, to and need because I running need guidance simple. in I I the different The a look baseline -- needed pause. we're to what where business what because for the a and not I'm out provide company a how reason business We is, the find

to today confidence to business back that we it, earlier, allocate the in that get allowed have business fundamentals acquisitions. and I it's us said capital. And like go to go market, the And the bond going that towards we're and shortly of the extra tuck-in

now and go acquisitive. a done back XXXX, business concern It's when would was a not not have for good X that to be capacity you're the for aggressive different on very good That's the anymore. not formula foundation platforms. It in something not have We running I -- and a growth.

pause which baseline us. sheet; pause a U.S. with all was balance a And we a The growth liked: for we've we COVID; a the done that all lot the do had for than really GAAP that have basis this more experience. of changes, that we've behind It is changes, now refinancing good noise conversion; are provide to all there. with from

in do I all going the everyone confidence So doing acquisitive think we forward. us be that should to more because have expect

George Ulybyshev

question last has me. one This touched And okay. been Okay, on. for already

did imaging? XXXX Or outlook in the relative strong. you Or guidance front, fairly be there preventative already a optimistic catch-up the value quarter? screening Just unit come that in back-end for on seeing And for is year? your reason first some Is back appears outlook? other the volumes are this loaded to

Riadh Zine-El-Abidine

during XXXX, XXXX acquisitions should contribution right, But they because for significant guess could RVUs. X.X think platform that Because million. didn't was people look outlook the is made at remember, million I people, XXXX, have X.X they the really if really, appreciation what what -- think to do, you didn't have even an I I right?

to estimate. it in of guidance So based is where optimistic business end in of not like terms low that looks number future, a on is the year, a And really our COVID the actually like relative an -- today, conservative but today. the volume it's

from -- So you the far look analyze and forget Even about end you're take QX even take you you if XXX,XXX even today. QX, range. low from just not the if at of RVUs QX, QX that

X.XX our is end low, million low at higher. is QX, If And of you analyze range you're which the RVUs. still XXX,XXX

because to in 'XX, numbers people think I not 'XX year. when much to than they is were the So need -- remember at normal 'XX whole and they need a number remember the acquisitions really what's higher the for look all

low year. where range an our So business for optimistic the not picture is It's rosy of end the the is.

Operator

next the of Leno line Our question Endri with National from comes Bank.

Endri Leno

A few from me.

AI likely to a wanted acquisition to I we're the kind that to mean you rather just a in little nature. the cost see I of than right, driving the more mode, day clarify did. anything of end or savings on kind that So of bit sales at

Riadh Zine-El-Abidine

else. your So end good excited are really really, But there do both. will question. savings. to thing really the start It's service It's will a with It is top actually line that There's we that's really only at so what market. because of it's levels. you about the nothing actually what one going to day, is differentiate in the

like not an we -- MRI have machine. is This

the MRI machine. has else Someone

You radiologists it. have read that

business an -- -- said X service. growth. of unless the systems, which relationships a the top that unless too. door, it's the terms you're driver and is a the ago. the in day, I radiologist, always different That's -- down -- plugged will be independent the end have main through but to story, actually at into I but in line comes You for years the said hospital come of in But this many player, past, have here, I the times if into will it radiologists you're the And

organic looking the growth, actually So that the services. at when user for of service guaranteed the could if you're paying you is consumer, equation, end especially you're the change

health. if wrong. patient of was happening, years, It's used my giving the bill. efficient not I'm happening to That's $X.XX, service. -- paying the to going because experience bill that of higher $X.XX change Digital You to you the is average, COVID if I a see, people X and a think demand health No, said analysis. $X.XX not year digital every you're health and this COVID. shop last -- digital didn't dollar the and have higher COVID. And on reason around. the the What expect, a digital is for to if today superficial then accelerated I'm I and the for this you health become paying And plus. was patient to they're proportion I'm me $X.XX $X.XX be on every going the is

really and health their additional are the a will these the hope add that's for savings of care I realize will that's main digital companies And because lot driver health for that They services, care health the significant helps shareholders. value that. in system. color why on

health level investment, the it savings the on when very that I nobody both mean excited business. will way and in -- of imaging -- you space if top of we space actually our nobody a realize imagine in we about it's what impacts, do savings. So service very, small top definitely our they get see in yes, services especially are to cost and and line we so care that, change what

Endri Leno

Okay. great Riadh. Great. That's color,

continuation to day, improvements which point will sort is acquisition. XXXX? of else And before, ADG, the you've at, is margin its explanation the one your terms that is of -- at that initial price despite to savings? Or to drivers, the guided, to growing so there from at you're in something from bit that the really and is margin end following right, I stable, given the basically, the savings concessions a like margins get which a Which in was of questions, you AI, cost those trying where contribute I'm as can the they mean, that of

other you point to? any is could So Or... there savings

Riadh Zine-El-Abidine

I'm glad clarified So that's a so you great that. question,

is, -- there XX% in same So a is because Because volume the we XXXX the same XXXX, actually we do XXXX, if savings deliver ERP guidance no as leverage. if in we all what volume XX% operating look from have the will the it you to margin. if are the --

We XX%. will same There's to It margin. have similar. the have reason higher It close very be will will a be actually margin. no to

of return to volume, again. going -- the It's seeing, ERP just of be only not is to So the the as volume to I at what margin you're said is is only because year. Endri, because happen That's end earlier why. up of going savings. picking the the Because

to any So of going end savings. not year, the to at it's I'm going have happen the

Endri Leno

great. That's

accounts to Now just bit little turning receivable. a

in So in receivables QX. What directly? an was losses? for XX% is losses it increase allowances first, QX? that to from I mean, And it would allowances was concession took that the the be you in Or QX, for

Riadh Zine-El-Abidine

So your of are X question. there parts

in allowance -- the it answer account is the so into was an So to collection experience. take

So what of benefit moving with another that's we've done platform. because, to obviously, one also --

what experience really also new we've top of system that new our 'XX or So platform moved that the when everything is to legacy around was the the to systems on and one look historical on -- we well, what was the systems. intelligence and in collection really 'XX, as us collection happened the old for acquired allowed platform, at of what collection built whether we experience regardless

Okay?

the to GAAP, have the beyond Right we as and end that XXXX So quarter provision And is why are that access now, done platform. because you concession. as U.S. that alluded experience actually new put to, made matter. put in looking at the of as actually done XXXX, the what of an That be it have platform, of to it's what basically -- that's That's is reflected to to the fourth which with doesn't there something collection thing was -- -- of match make future. led clear -- with under collection we've although a what of our experience. additional the should that's what improvements which allowance, in signs experience, now to price called we've we

that's So number one.

what that it's experience. it's -- back allowance to collection an matched So really

I "Here's remarks there other U.S. like standards, that my in international no something that's thing because GAAP to with and provision means collection earlier price one There's revenue. That's baseline accounting revenue. visibility GAAP, U.S. is revenue. what to the understand inside in our only said way in IFRS. experience. Under revenue That XXXX, reflects number." that why the is that's that's In had So you

net, saying is XXXX, for fee a divide if that number our we're because we And and that's number I used $XX our forward. the -- has that's it's you which XXXX, well. number is, all it the we when which the baseline calculate. you revenue all volume the take we So the is been, clean collection experience, number the Because guidance did service our in, stays is all looking with service collection in what that provisions, that as number improve, as all take our for reflects you by fee assuming doesn't

this work, wasn't in year. of to U.S. it for -- also not our whole hard who because year GAAP, thank company do it's single actually their public a U.S. our U.S. again just GAAP but adoption auditors, all So team quarter as I to and although a it switch had you was for easy for the nightmare for every the for GAAP not

of effort the what's debt about So a day, it is it us. But effort -- I -- all provided the what's at forget was a revenue baseline painful end number, gross think, of provision. the here's what tremendous it's and the and to for bad here's a

revenue the reflects that Here's experience. collection

And Here's lot from go from which more, been importantly, the a today. of than never the mix better has here fundamentals we revenue. because, a but it of provided our I business more clarity, obviously, believe, baseline the

as of all that year. an at the that's the Accounting, mean I is you cleanup, happened exercise that's during things know, what looking the happened.

we the especially have bottom think us. the and a the for ever system-wise good the is future behind I one statements-wise, have. probably with line we'll financial quarters refi of It's noisiest basis

Endri Leno

versus reflection XX% is we've the of scrapped Are past of about But due. one clarify numbers you end Or well? It's have on XXXX comparable? the hope but XXXX. this. XX% before I that because a as one Because concession? just Okay. number, more price reflection MD&A, you wanted to it's mean lot, that a -- kind on XXX at talked Yes. of receivables. those I more a XXXX behind. days in of the -- have it is the in XXXX I the all the just accounts evaluating

Riadh Zine-El-Abidine

Yes.

the to know -- I question just many the a the while much and U.S. talked lot. And that on is that the end days we've what on business, -- disclosure our is XX% which a didn't do U.S. adopting job your day, in call, numbers GAAP, disclosure better XXX better understand, like where that's end this others done we've additional the -- explaining and and believe numbers driver plus, everyone to of I So of I past these we is attorney understanding that's and rely has XXXX. the really for. So everything right? which is the is a at biggest GAAP, why the -- on the our with market the of business, about this market needs is At and a to that under of I believe in good you something

else inside And on look you But paid very that why? simple. year. side, X-year do, same at back. else the you Everything getting a the It's do you're attorney everything you're looking

was So clear close today, but the they're year. are our to on The collections from years the they're the not what same X And market. X collections business from side, the we last ago, very year. underwrite years attorney not that's from to from ago,

that true it of date me don't the the large "Let say, really terms number services. forget making really same the actually of of that minimum AR," you if revenue year is of this -- in the a we collect AR because of that's business what is XX% So XX% XX about in

Endri Leno

Okay.

for So pass me One that's great color. I'll it over. and more

Is volumes towards at table? didn't You have still And some lines had you previously that? any that time discussed rationalizing some and consolidate of volumes enough the centers on do centers. the have that

Riadh Zine-El-Abidine

Yes.

I actually talk reminding question that. when earlier, And So asked did I -- George about me. that thank I you not think for

we this platform from on at us structure. we've exercise allocation help you look -- so a internal for are and an revenue this done -- wanted perspective cycle the That in is still And perspective -- corporate I things have the now from as single of place, to there Obviously, exercises other be the table. think to behind look us.

So it, execute significant would it in business do. but actually, the on. as initiatives. that exercise, working the are that on part quarter something of we will start and will that second that exercise, we've it's initiatives -- new And be it's been we some Because not there of to one

the offering. still there are a this about that is, related different into new interesting, really Endri, the some new about will actually business and really nice opportunities that's we what's some potentially model, we to redeploy thing have, imaging so a identified where those of business So assets if we've assets but

of So we're doing those that that's with with -- what rationalization the network.

happening, there there front as the be on still -- are that updates it's market So that's still would some to well. and --

Operator

turn And back time. to further Zine. to are the there questions at I'd no over like Mr. call this

Riadh Zine-El-Abidine

of on all today's and of I all to again to participation debt you. radiologists. your And our our Thank our employees all would for everyone, thank of like opportunity you, all stakeholders, Thank equity and investors, the of call. our take

Operator

call. Ladies and conference gentlemen, this does conclude today's

may You now disconnect.

Akumin (AKUMQ) 1 Apr 212020 Q4 Earnings call transcript