AKU - Earnings call transcript Q1 2022

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Operator

Good morning. My name is Sergey, and I will be your conference operator today. At this time I would like to welcome everyone to Akumin's 2022 First Quarter Results Research Analyst Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session [Operator Instructions] Thank you. Mr. your begin may you conference. Cameron

Matthew Cameron

Officer morning, Thank Chairman is today's on joining Cameron, the that's thank of and Legal for deck call There today Zine, and and for you. I'm And today's our presentation. me Chief Matt CEO; Good CFO. us is investor you name Bill a accompany Secretary our Riadh everybody slide presentation. joining Corporate to and are meant the Akumin. My Larkin,

directly it a downloaded haven't the from portal, Investor obtain you If of also can from at copy the you akumin.com. it of our Relations section website

any risk periodic The disclosure. such and to operating such We as affect do that at measures disclosure we documents call, to also conference may forward-looking refer non-GAAP Board us communicate and believe service have EBITDA no EBITDA and and particularly investors and sec.gov. non-GAAP our business including statements is we measures adjusted today's addition place information discussed to to should certain subject in sedar.com Akumin's business or relating used a EBITDA These under measures these not assess in adjusted remind be We accounting healthcare adjusted to conference under that for net not the materially you Before statements. be statements variety public from reasons that those you standardized during are income and generated to results consolidated capacity alternatives ability undue in of uncertainties answers of risks financing statements or GAAP cash EBITDA, update statements that matters this can use reliance of obligation are in forward-looking financial undue that should accessed non-GAAP are statements may isolation indicators to financial and place by leverage today on debt. and public principles margin. to recognized in measures discussed forward-looking on asked, cautioned future liquidity. me flows or be as let differ future, measures, or and call detailed and to indicators questions and EBITDA given regularly Actual factors States, are that EBITDA statements not performance reliance prescribed are or could meaning by as analytical begin, of forward-looking statements, to the financial are these certain or GAAP. performance. to as generally Directors constitute could adjusted by on presented measures anticipated useful activities measures industry in certain these Akumin accepted United may not results performance. considered our other not that and and performance results financial with are are these for investors EBITDA or our financial and These under investing

presentation, which is our net to You presentation. adjusted available under Relations the of website Appendix of and these section is comparable of loss, And Slide reconciliation Presentations. GAAP most our additional in that EBITDA can & regarding the measures information on in a non-GAAP find to the measure EBITDA X Investor Events included

referred Riadh? Riadh unreasonable to things as without reconciliation Zine. produce not such we a over in provided be to this any And now, presentation, able will not forward-looking have reconciliation to We I'll for measure non-GAAP effort. turn a

Riadh Zine

first today speak results. discuss name morning, Very to Thanks, Matt and everyone. good our quarter Akumin. Riadh and to to CEO I'm Zine is the and of My XXXX Chairman everyone happy

to hospitals outpatient As the now top entire delivering and their in companies and industry, solutions among are we physicians the oncology X, patients. see you can of in Slide radiology

states. number lines for service presence number and every in are have and a treat cancer more We XX radiology more in the national than core operating XX,XXX two player our of care on annual basis We patients than or all patients year. million an one X

we particular serve very We hospitals the opportunities health in X,XXX of lot an which operational and of Slide of all hospitals to and months the services cycle in component the enables proposition radiology patients the to is businesses. we Akumin continue as of is health growth which important strategy deliver in last oncology our a Akumin's over revenues the virtually expand scale also both and and differentiators suite in radiology Akumin with million $XXX have could strong customer systems, fixed and us including and build solutions of combined in any geography. their customized foundation for value The some platform This mobile new key oncology ahead. capabilities. a hospitals to X systems. obviously captures any and XX has of platform

to design needs able any community a evaluate are oncology outpatient that solution the needs. tailored radiology and uniquely is that and We set community's of to

chart, we with of dedicated to are XX sizable already from which oncology. the a locations, can Akumin has XXX As see presence fixed site

fixed-site Our with constitutes and from remaining fastest-growing platform and our approximately stream of segment the two-third our largest is it mobile. revenue

for hospital opportunity fixed-site response hospitals' to dynamics, continue volume significant to market continue as solutions to our current particularly we and a to demand, footprint outpatient need Given accelerate. in grow see

services. to our outpatient we already to with potential that footprint systems incremental leverage facilities. accelerate in radiology fact, volume existing for to are existing In should bring discussions strategy health This several

opportunities service as existing de clearly well both Akumin new is novo delivery. ongoing shift we and to of well service addition, from positioned with the to benefit In have outpatient partners. a pipeline care strong expansion in cancer potential as

revenue outpatient As you slide can see XX% from derived of our on X, procedures. is already

mix more no hospitals with our X% for and accounting between We have balanced of party consolidated third a revenue customer than payers revenues.

is grow we customers customers. our The come hospitals is is balance third outpatient payers. and hospital to new and provider for hospital outpatient our party preferred strategy. from Over XX% with solution This our vision. approximately the with of consistent This with commercial As share to hospitals, partners from existing as expect time, revenues to and our continue search revenue consistent solution. government

cancer, results, it's we're with the Alliance, radiology double growth and was new quality expect XX% slide the to coming of areas hospitals' positioned offers With are vision the and the up systems outpatient. lines evident radiology positive down share our obviously, and basis, key XX% focused Akumin partners, QX X.X% screening health platform up On on starts of capitalize from volume of physician delivery platform on player diverse all of by systems our X.X%. the with share towards delivery and MRI the including in was procedures. quarter, to procedures, of suite X.X%. of we service revenues PET/CT from of total revenues physician high Clearly, and high and we'll and In of Akumin we treatment. and and is continue hospitals our a service growth continue growth XX% Akumin leader through our we care modalities grow pie critical acquisition outpatient as through come value variety exceptionally the that shift groups. see patient is diagnosis were current from care on from oncology utilized treatment radiology oncology up well continue the and our This in a the we services The in a first segment. modalities. the diagnosis revenues And have. to accelerate. our specialists beyond strong across of industry, continuum X health same-store These MRI PET/CT very a all of the, XX% support same-store patient to to saw significant the in trends were of add. as from in of also to on

or $XX up million, first $X.X $XXX.X a in which on Healthcare still, momentum and completed obviously million the the was of year. to consensus we net fourth QX, a $XXX in Building generated which acquisition last sequential September our on million But of the from basis, strong we've in experienced were fact X million company revenue Services, continue to quarter was hospital disruption Alliance on first mainly increased sales in results million of was revenue in or of of contracts a days at quarter That due XXXX. QX, quarter of to XXXX, consolidated benefit XXX% $XX.X as quarter a or is and from also was over business or Omicron the notwithstanding up EBITDA our EBITDA last will of ahead fact million fourth operational beyond. The basis, estimates, XXXX. slight $X.X Adjusted basis, sequential significant new the result the that last on the the that XXXX patient But the year. created over X.X% challenges outbreak weakest year seasonally despite XX% the from receivables million decreased as our or resulting industry. QX adjusted many end XXX% was in sales of up the of were million, flow. well. improvement quarter in On quarter $XXX the a January typically accounts expanding QX The February, XX $XX

of Bill I go Now over to and Larkin financial our the to the CFO, call some metrics. turn will operational

Bill Larkin

morning, presentation. Thank the page We're you and everyone. on of good Riadh eight

on the procedure MRI our the by trailing as we above and XX-month acquisition. and forma including On the As last chart the volumes our at track as volumes a volumes early XX-month this time. the volume and we mix, and changes on chart accurately and on track is XXXX well volumes total in eight both of were your same-store revenues, are our entire procedure pro procedure disruptions, pro modalities believe basis radiology performance Certainly, you PET/CT relevant core platform. the last includes illustrated together and in as forma across radiology we percentage ahead levels COVID. our new volumes By comparability hospital PET/CT and Therefore, QX now of particularly operating Omicron-related experienced disposal the and XXXX and radiology calls, including Akumin, eight, the Akumin XXXX as trailing you Alliance 'XX we And in realized impacted providing the the enough growth despite have of QX, our over two six, XXXX, sites. and by well financial quarters. can mentioned by in in to significantly aggregate the on quarter. same-store bottom scans see independent information with over slide actual MRI modality 'XX slide pie a should strong period which

Now oncology level therapy to up And track an XX% segment a Note start. and by more activity levels the patient essential due radiation receive segment. therapy patient moving decline the cancer saw In segment cancer of radiation page of that X.X%, we start care. radiology the per In were is starts disruption their volume on oncology revenue of nine. the muted in year. first course in element treatment. in compared we to patient Omicron Therefore, quarter our the up to despite the experienced COVID-XX early activity same-store 'XX, significant patients approximately

chart bottom also you the the the the quarters. left oncology recent recovered has only As pre-COVID from on growth but not the in has same-store COVID-related to see of return business segment can exhibited declines consistent in in slide, levels this modest

the pro levels right-hand the chart business our transition of of buyers. While to which X.X%. see segments left-hand Arizona trailing QX XX, reflects normalized page Akumin segments slide mix slightly some for Alliance were financial these completed Oncology of from performance half illustrates XX to the XXXX the first the the TTM the assume a divested two bottom was residual throughout period 'XX We for has procedure the On months The in chart Interventional combined segments. patient QX, segments. the of bottom result Arizona Alliance's the performance XXXX. the of QX, normalized activity divestiture results oncology. which QX report the can This probably 'XX adjusting while of Alliance of radiology business. and and in change related per XXXX and is declined declined revenue by you about start In businesses entire And entire in is each and forma of financial the results which 'XX the

revenues And of that left $XXX.X You'll allocation was services. the top quarter XX% an our contributed segment million before EBITDA radiology or The of total is our segment of with which of QX XX.X%. revenue contributed services. of margin margin see in adjusted the of XX% adjusted 'XX oncology an revenue the this chart on the of corporate before million of XX.X% in allocation EBITDA the $XX.X first total revenue corporate with

'XX of quarter first the for XX.X%. margins were EBITDA adjusted consolidated Our

While these also margins were a typically the XXXX by impacts is quarter and that slower fact seasonally period. our levels, reflect Omicron negatively the fourth ahead QX of volume were margins impacted

further With for adjusted turn no that guidance. will of Riadh? back higher unforeseen balance expect that 'XX trend we Assuming the to I now Riadh margins over business to EBITDA disruptions, will it discuss the year. our

Riadh Zine

Bill. XXXX. Thank sets Slide you, XX our for out expectations

year full as our our disclosed was filed results. QX presentation first Our that in investor previously with

in the of be result which to as expected of million. $XXX to pipeline. initiatives is revenues, small the revenue EBITDA our development expect entire in range across of the Adjusted to primarily $XXX $XXX We but million revenues million a million be in $XXX same-store consolidated business to contribution is organic growth platform, well from range of still

anticipated, Recall full expect can now functions, rate. identified overhaul. first time, expect to X, originally through in we to or $XX previously of synergies mentioned quarter means equipment purchasing that the for consolidation synergy before XX and office we are release, XXXX, million within disclosed specifically realized power months back be we achieve run the that achieve over disclosed previously we and first as corporate the As maintenance integration press which in of the September post-closing, XXXX, estimates confident, the of

the new those had we back common at come is Longer two technological you This and Akumin, is from savings opportunities to a As workflow of functions set initiative integration. which cost It will know, nice two with result more is have. platform together, and integrate terms office organizations initiatives, large deployment running in business. which one will of through there stop And must and one the further into one businesses in the process doesn't term, coming standardization to opportunities. changes.

collections, identified impact also in fuel that factors including We and disruptions costs. previously supply our number XXXX returning chain a of guidance, could slowdown risk

very our million finance they our all current CapEx, will reduced risk monitor now budget previous $XX be our million. balance and have $XX $XX to we Of the of we to factors XXXX achieve of Although, in able financial the be we from closely planned in to institutions. $XX and million we and financed confident continue guidance moment network considering impact time, and guidance those that revised performance, we cash remain realization CapEx to local this our how objectives, could On synergy million the anticipate at XXXX slightly will the equipment expectations. our providers for CapEx, through be lending that

customer is those revenue as renewals that hospital as viewed expansion. really contract view They new maintenance In from we're addition, acquisition accordingly. growth and planned a partner don't we budget maintenance million CapEx, $XX are to capacity We million new CapEx result generating as contract of renewals. as have reduced obviously changed well not with -- renewals. growth. Recall the as CapEx of our geared we CapEx was composition, the where to related we've CapEx growth and primarily towards reclassification increased CapEx our from $XX the This primarily

continue customers' return to in four-year with payback a investments be typically less capital. high new and growth than insights on Our

benefit criteria those opportunities, we As as on obviously our will all yield nearest-term evaluate that simple. the that growth ones the we but potential this of the based with very We in have of anticipate continue markets to see our XXXX. prioritizing ended is the of results highest of benefits on growth CapEx return we'll and and also investment, the on impact to performance. It's terms that in XXXX full our

all procedures. favor continue in to trends other the of in continue positive the see support our and our momentum we all for be to fact, industry in In

for history low-dose XX a CT aged screening to Task example, US Services with adults Force For cancer smoking. for XX specific recently of recommended Preventive lung annual the

to only of going margins. same-store obviously continue All on these forward will the to and going positive benefit sales growth our that's impact have

continuing streamlining Moving our including leverage. of primary service very EBITDA leverage focused to initiatives, the and reduction come the XX. end secured we're initiatives quarter synergy on growth The of reduce capture, leverage slide the will Obviously, the the driver delivery. times. capital technology-driven on structure at from X.X was of to The

As EBITDA we leverage. which a and will the have abundance meaningful have discussed have growth we reducing of an we on expect to past, in levers, impact

like comes unique how fall new simple a years business when of leverage the The only Xx million confidence XX% current only bottom Today line a margin. in business revenue of in million change. dollar that big Our from of revenue quickly the very to XX improvement current margin. is that's you our very operating the scale is of have. the scale concept. down of -- revenue the we couple same especially you XXs deleverage $XXX $XXX that doesn't a A is have have. low ours, at at It ago, could comes or EBITDA is a the And to we

long-term, the management on four concludes below So please well. prepared we significant reduce informative decline an we we're hope expect as the the team initiatives. our of the That we're just Also to that, it our note I not presentation. organic to customers -- over start growth but to shareholders, growth quarter portion provided secured incentivized to the remarks the times leverage Akumin in platform. of as leverage highly execute to the to new like myself, the the take and I Bill behalf ask like our making now, combined I period. into the thank efforts success. And would partners opportunity potential of all all of and On for a employees, this question-and-answer physicians, of window of operator and their would

Operator

Instructions] from Securities. take ahead. [Operator go Please from Clarus first question We'll you. our Thank now

Noel Atkinson

for Thanks taking well Hi. Bill, Good questions. done morning, our QX. and in Riadh really

in QX, so the in mentioned First Omicron off, January terms February. overhang you and just of

strong typical really a QX seasonality. had in result guys versus You

a really your what QX. typically strong from show change example, really procedures For didn't much is your volumes,

March was did as particularly And So, then, you see month? for in? kicked volumes a strong QX what

Riadh Zine

Noel Sure. question. for Thanks. the Thanks

that You're already January was given we that and February our January February. that year-end to absolutely They had alone we correct. and we that QX $X than significantly top were visibility At know in And results, I we saw, expectations. impact weaker think line highlighted I anticipated. in two below as we that we we had And announced much first on visibility already million think you revenues months impact. million the time, a our plan. on measured the even $X when

happened what month correct, absolutely we the you're norm from right into hope much with So not March continued that's second And new quarter what the see that be stronger momentum another a and is will was and now. any faced surge kind. of we let's

remain well. very -- great we that's top And we in seeing, at as we guidance comfortable a momentum continue that daily and where point, we're that's comes and performance. really actually the that's from our because are with confidence -- So, our line the very if

Noel Atkinson

Okay, great.

been to handle you've up. that of sort cost you Secondly, pressures mentioned able that's coming been the

field mention media pressures have you're the about money mobile do nursing general a salary in of and units. your you spending lot And -- cost increases. So on there's for the

these you manage guess, forward? able And what of are I how doing protect cost issues? going guys inflation So sort to are to significant against you

Riadh Zine

You're right on the inflation cost.

today. you that unique impacting in everyone think Noel. pointed is Akumin to That's I out, as not healthcare

is there more more press. I think and

provider We've as The been we I and that's we further read, If hospitals, systems, this inflation QX. differently? we've could It's Wall -- now been we've how in to been through QX going I of numbers. that in you're -- It's the impacting not How to like health week see ourselves. long-term and those technology. that control think without it's deploy impact what And We're you costs? mainstream. even some company, run the to those not providers really Street mean, strategically think -- control technology this just business costs Journal. already reflected could service talking it's every why about a in started investing really year in you possible. has a The ago. I know managing

rethink clinical think, have were you to those long-term. the you delivery manage service costs to So if

which we I'm talking better will technology tool widely and in not there are -- And -- mitigate there say position months be that right services a is of is that -- costs. those are is able being would healthcare inflation now to space. than XX I used just you terms XX long-term in long-term management, months from So workforce also and there much could in not in use now manage we are something the

I think always for improvement on opportunities improvement that there's well. -- front as

personnel. also our of our utilization Better better helps. think operations. I of density So That

if then otherwise some the you not our So you thing not all cost over place But And -- bit our labor inflation going I tell didn't think, the some would I'm inflation had only have way. technology. has we have cost. a in already markets. is other see the in already That's you're multiple reflected to already better that you margins

Noel Atkinson

Okay.

queue Okay. before And one the here. last me I back jump then for the in

lung screening the CT that about. So low-dose you were talking

the there So coverage -- seems that's pretty changes substantial. to

lung the XX.X I reimbursement screening for article Times talked access New cancer. York about having now million for having think, access Americans or --

you patients material are a volume of physicians Is do you -- up your how to into doing this reach today? do centers to you this? folks this your drive that do how and So ramp them who And amount today?

Bill Larkin

are a important going does mix. it significant It an I'm today. do our definitely impact revenues. of Yes. but have will It's CT not have our We on part procedures to -- that say impact, an

it's going means see our any is patient save screening price about more these affordable see and what can for of a The we're of in lives. -- the procedures to mainstream sense save point think is last in We The that when in healthcare it adoption. now this a more significance joint. to to the been the I now And in space. important years. really the this it's the I've you affordable I first not to just relate also becoming that know one personal talking not in I and think becomes downstream number this is

life, patient the the in terms lot also cost. saves earlier save a of of of system something to but quality Going

expect I and many for they're opportunities more only procedures. procedures for part of do is more that of that to more we as day one I significance terms from of is our the impact. we're so which those all more is to same government new of a in will -- I mix the to trends, think of And know point that's mean of thing and that But But end that just So only payer to and you want type an a that us. of going going the small say having of these volume is huge the and we all same-store it have more that see the at is, of the impact. type do growth

Noel Atkinson

right. Okay, great. All very much. Thanks

Bill Larkin

you. Thank

Operator

Our comes from from go Please next Tania Armstrong-Whitworth CGF. question ahead.

Tania Armstrong-Whitworth

here. for about can gentlemen. Wondering couple your if morning, A you CapEx Good spend. talk me

interested used fleet guess, break to bit the I your exactly And a refresh spend what kind I down if can, may Alliance going what give you it this. towards If little is I'm us more in? on it's color of

Riadh Zine

Sure.

think I want you do Bill maybe that question? to take

Bill Larkin

Yes, sure.

radiology looking focused going going revenues. both on metric year-to-year. to light at used we've assets always great CapEx. of sort replacing maintenance site -- those That's mobile And of, CapEx our really replace talked vary is when normal historically it's So some spend fixed to It's fixed-sites. where on is roughly about light is this our target we've fixed X%, at from means about growth. service Maintenance so and that service maintenance and in assets. always That's

and to our whether percentage fixed through volumes – that the but that mentioned, look And revenues, because it's necessity. in that's to now drive opportunities platform that we're us a investment to investment the new how to our to going It's drive in down, incentivized the today. we've a Now as It's our remarks. business provide prepared specific sites grow it's trying leverage whether it's I in site think at typically, we new mobile made we're Riadh asset.

years. typical or like in our PET/CT Our MRI less than payback four on return is is an – less

we're There's commitment attractive process very sure and asset it's in a So investment go hurdles. these to returns. looking we – targeted meets it that a make every that at internally are that our individual through each making

opportunities on then available. and it So, depends perspective, from are that the growth a

And shift why our our That's so as based CapEx. $XX guidance, business we in our from the decisions current with guidance, of reduction forecast, get look we're our pushed. on seeing kind of things million one the overall today, updated at previous reasons

we than CapEx, to look be and each to able assets. So the afford each investments line the structure. as both again opportunity those every to it growth? growth to to got it it our I continue growth? our payback in and we years every we're within growth going bottom – drive do? going to period How How is cap is think to investment year, opportunities what evaluate these is is be at existing are investing we've some Typically, that on investment And CapEx will in exciting drive line four again, top going going And less investment because this year. and in maintenance CapEx well as those

literally, what's monthly our look we in can and What's leverage? said And opportunities business? process any evaluate, there at we this, and through that evolving every continuous basis. new changing the we a Are it's go this single in pipeline? I So on month, a

Tania Armstrong-Whitworth

Okay. Excellent. Thank you.

that Second question, back comments, you see took you provisions missed any this in your beginning can any there you kind to you if And in Did of those speak said at I whether reversal ago? that of the few revenue months into of QX? part. a apologies, was that come

Bill Larkin

ARs a minor. rates. with it was – the actually collection had little was just – that it stabilized nice bit we It's but and Well, it of actually kind

and we quarter. each and refine continue As every to that – process

with we a just I what so I a normal happy really was AR expect just I was would recurring, kind that quarter I normal QX, say, our would actually within it just would So we expect. – had and provisions, adjustment a that call where we of were

Tania Armstrong-Whitworth

much Okay. of initiatives is your coming going your what could to actually absorb? utilization patients that like wondering, Perfect. here, the Riadh. these these of the push – on And then more initiatives lastly your out screen volume centers how today? capacity back you I'm in And comments to new

Riadh Zine

Yeah.

I have today. capacity hours operating significant we think, the of additional Tania, still a even with

done So revenues, add all focus the see volume And to change. analysis. really do capacity, where and could our we drive, change that's is really an that to hours, don't capacity issue. that operating We margin. the have expand because we seeing higher we're We've the significant to don't the we have

talked really to revenues adding CapEx cost. the lot the assets $XXX growth the extend that significant When about we again, But same hours. and of utilizing actually million adding I've really the just a when with So extend operating organic you labor get number. of associated you left. hours, have It's that earlier not extending to

that, when same-stores, it we've $X.XX, the $X.XX least $X.XX. explained think margin fixed a times if the $X strategy is beauty way. I That's of at we now structure, it cost many other your of go

our cleanest we it's where it first have. about, from it slow not the see of question than this quarter, not get COVID on the from quality is surge. And February other January having have just start been clean that, thing we'd the in would lot could a the comfort is and only –the that's we provisions. that, on the clean and numbers. And But same-stores your So, impact to on

Tania Armstrong-Whitworth

Yes.

all That’s Okay. Perfect. for much. you so Thank me.

Riadh Zine

Tania. Thanks,

Operator

Endri Bank. go Please Leno National ahead.

Endri Leno

of And do my talk what more have can for labor reading But going you availability I'll start organizations I healthcare is out Hi, was some that's I in inflation, contracted your of as good use concern. if wage concern questions. been with me. used other have? whether in is labor a couple across little which healthcare network than that you wondering, for labor mean, labor forward? taking we've availability rather and labor also been see bit contract there first, Thanks a for morning. how any QX, a you about A

Riadh Zine

Yes. question. -- We Endri, for thanks the

availability think true, I ourselves we healthcare just -- haven't don't we're to cost. haven't It's not it's afford inflation becomes paying really be have when which But issue across inflation. bigger smaller more, could it who not not the it's service, to the seen also the the both. both. it's at And availability, talent. systems becomes seen It's and players, -- like larger availability. pay we we both for it's Because

And for Most we're witnessing not of they're pool full it's is they're of through our contractors that for we staff available. scale, So of clinical or have servicing not haven't our you for time just practices. for and kind way replace has someone volume a company use always reason, and for capacity our of what some availability. really that we servicing there changed the where situations, to remained

vacation. For many including reasons, being on

changing be, we replacing you're is, So is structure hasn't what of how used and what's deploy to it we clinical someone -- is the staff, not if used But changed. it to not availability be. the the our cost what

Endri Leno

QX and in for color. you've know can a and QX I year. bit if terms mean usually a throughout in me great But the QX concrete you that businesses the mentioned bit That's QX is, second QX question something are talk percentage terms And and weakest. of Okay. more in of, your -- seasonality. about I little of, the what perhaps

to especially, sense of QX? what without cadence and what QX get of trying or QX Thank look in impact? any Just And kind like you. a volumes a businesses the would between normal

Riadh Zine

Yes.

[indiscernible]. want you think you take to Bill, that? I do

Bill Larkin

the get in business we in and factors outside think, vary percentages Omicron we business Yes. does normal seasonality I But could ,when the course can January impact every typically of it with because business year for February. at and the our QX, example, single there's the then typically look other the of don't see is have of And time lot months, into a you increase from in – in the then drop-off QX, getting quarter increase you're a we holidays And would QX. during in see QX. QX period. winter of And an see there that's that because simply we'll lowest in starting year. that typically,

we That's typically, the So going see year. we we're December. that expect drop quarter-by-quarter cadence see off each to in

Endri Leno

to like more provide I difference of -- or are mean color, XX% Okay. difference further any you kind just or the able general less? XX%

Bill Larkin

what many that so hard go our it. percentage change There's to going It's impacts different vary would be. in year-to-year. put the business to specific a factors on, quarter-over-quarter It's that

Endri Leno

Okay.

Thank it me. that’s Bill. Okay, you. And you. for Thank

Operator

Rishi ahead. Parekh go Barclays. from Please

Rishi Parekh

to take reserve much It you Thanks the I for want like back quarter. of question. in seems One, questions. just didn't reserve my on the a go taking

on And call those tied of receivables reserve in million, what importantly, what I I your of collections that of hoping $X us to that remind terms solution, in to, then follow-up more think some in terms seeing just Can what percentage the amount a Georgia? implies last you you you're you're you're million seeing are took some then it a question. And do collections. that specific have as visibility collections? quarter to of those of couple a is collect? probably And which

Bill Larkin

regard with Rishi, Yes. your to question...

Riadh Zine

Yes.

me put just it to context. let the into Bill Sorry,

the collections disclose to we rest, what's it's -- between longer in the Rishi correct, past, the your one, than and given Rishi between yes, one. we didn't more don't make AR. between but disclosed obviously two, QX. cycle a attorney haven't -- take million So, the -- part We make that's -- the Number in significant the of on, we quarter. this point significant it's took That's you're in part provision number of a any $X the

don't So also obviously the a information is not any it impacted that we back it. visibility not business the months. But all as we QX of that fact But is That enough is provisions. need collect for just that prior recently that history that's stability, down but at with the had provisions. was level the business doesn't didn't you're One It's is the level way you don't the of see -- -- things. have that actually to which because going the the we what platform has -- impacted was of or also what our that then core see we normal. basically available on that you -- mean the additional provisions has two we of level that And took XX time. provisions shut have to

Bill Larkin

is process. want This just Yeah. static Rishi, to I not add. a

nice in get we QX. stability rate in collection the so And it's

look to opportunities business. billing the how entire of commercial continuous process throughout businesses. entire look continuing improve to for in It we're the if collections that across we're collections improve to However, a attorney. doesn't and it's collection our to auto It's trying each process matter, the and looking

rates through future, see collection the And pickup some initiatives these this improvements we initiatives. potentially in So to of about could being some as. we'll in some start talk our those hopefully, by be driven if have we able to

Rishi Parekh

or any factoring to And than the capture a rates to year see selling and understand, inflationary way there like? aspect or maybe in just might of is quarter down year. a Just Thank you. -- collections just how look rather there could advanced cost what expenses? roll receivables two inflationary through on is last those thought those quantify the it, any was better And to to the you what today, those advance your your can then, waiting that maybe want about, or impact maybe question, the

Bill Larkin

Riadh.

Riadh Zine

Yeah.

I think this I'll Bill, talk second one. first about take on -- the the and can you one

that that cash. level the point really that yeah, on provision really the advance is If have not have because be where to of going think it of -- think something so that, now we're actually continue think -- to an more doesn't to going value your reflect more not something doesn't on to that's it's we it do not going attorney. we like the conservative do I the going first point Rishi was one, evaluate to even anymore. I we're it's that's if like will And -- to a

issue to us. that sense. right that's growing. -- have a have that business that's for at problems the decision an our that not driver, would economic makes now be But that, That's on be The advance attorney will -- is we collections cash. able So we point of you obviously make to a least the because don't not an

grow position than business. a opportunities for the in players fact much other months. more that We're courts XX shutdown the have to better have despite actually We that

So and question? be grow that, going strategic we the will done the more economic of it's going partnership, on -- to make we involved to where a also Bill we're decision. a do sense in it and be all if to business it parties would could second And

Bill Larkin

Yes. Sure.

it's time our because across So day Rishi, of cost. other health like think, And and close fixed industry any costs some that but we end providers the the the inflation and issue I the the business, staffing us, our to employee keeping entire as trying at or do a all dealing talking really the on inflationary wage of and we're only we're spent entire -- us throughout manage organization with -- eye inputs well high biggest that a pressures, organization, retention the have we a care and healthcare not that. impact as into attracting to we've lot and

revenues drive growth. in is the to the line, because solution so bottom of the a line, And top to larger ultimately best tap that line driving which those portion some bottom drop will

organization. other looking about insurance, other labor. get we're that there's we're lesser looking extent entire it's at So really -- The areas, across the HR, a you fuel. inputs talk some team In to leadership at

end top end drive and of day can opportunities has again bottom our at on line look structure. continue stay and of But top this manage the at of fixed cost growing manage day, that, to but the -- So the we that about our labor. organization. so growth we'll throughout leveraging for to it's really the And cost footprint the the

Operator

question-and-answer I session. you. to to Thank remarks. the or call closing Riadh Over you. would hand for like This And back will to today's now conclude any additional over

Riadh Zine

participation Thank healthcare an service setting. continue outpatient care in you around value Akumin's be today's all on for everyone exceptional focused and vision call. innovation, to a standardization delivery your centered patient providing

X,XXX a and $XXX service fixed with relationships. pro generated the and a We team oncology million across healthcare system site in members than hospital today excess revenues. of centers health leading and serve we of U.S. outpatient patients forma provider with XXX more than radiology are significant On in basis, We scale, more with long-standing

on I've As And we'll and underway. foundation. as initiatives said are XXXX continue to earlier, a well milestone we expect solid this integration to transformative year, build be our

to thank Our growth concludes staff, participants opportunity call. ongoing we in to like would interest. ahead today company of again new our has been our Akumin. continue efforts stakeholders transformation go radiologists, all at all as their to support, our trends I all for and through never for opportunities the this to capitalize take This to Thanks discussed we've the all our on Again, industry. positioned better the and your

Operator

and Thank you. participation. now Ladies disconnect. gentlemen, for Thank your you may you

Akumin (AKUMQ) 13 May 222022 Q1 Earnings call transcript