- Earnings call transcript Q3 2022

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Operator

Good morning. My name is Simon and I will be your conference operator today. At this time, I would like to welcome everyone to Akumin Inc.’s 2022 Third 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. you. Thank Instructions] [Operator Mr. begin may your you conference. Zine,

Riadh Zine

am and investor the team. presentation. morning am today Chairman Akumin. by thank the our joined Zine Officer, you today’s for the who I of CEO Chief us David joining and to My call Akumin I be on for and Good delighted Interim name Financial Kretschmer, Riadh is joined recently

extensive than the a Prior in team. at billion Akumin, transformation as revenues. the joining slide at David is board was CFO, it Before for revenues. we David expertise, Investor him to akumin.com. Elephant a copy download surgical billion $XXX A management of website and Vice Akumin with $X.X Surgery he deck Relations is Anthem, excited our for at is obviously President Partners, to organizational available previously Vice Health, CIO of Senior of senior our center from health and multi-specialty There have Surgery for Transformation He Treasurer, our has go very more of to Interim Executive are with and provider meant and insurance presentation on President, now today. was worked that section a Strategy that, part Partners. with of healthcare

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

these is in useful their If regularly as And or reasons. the operating, we as data adjusted indicators isolation to anyone analytical and to and financing to don’t update under may performance. factors is results a financial accessed and could and measures on financial call, leverage these public place particularly under We be our useful measures of that non-GAAP these adjusted also for not Akumin measures, have today, are at standardized adjusted a not industry EBITDA flows assess to on our and public by detailed ability forward-looking activities, consolidated not that GAAP. income, presented We investing performance, of to statements in future generated and statement on capacity, net cautioned liquidity. financial GAAP cash should to considered non-GAAP alternatives be undue non-GAAP EBITDA, indicators healthcare service place as meaning may U.S. or or by periodic EBITDA the and The this and to statements business other investors certain conference financial reliance under results any statements, discussed These margin. us with These meaning don’t performance measures no EBITDA sedar.com. disclosure. can GAAP debt. that please, used certain are Akumin’s of Board obligation for statements for of line, in forward-looking are investors measures are reasons, And are have refer a undue measures measures, including EBITDA You believe EBITDA variety not documents disclosure addition We such by to and prescribed in statements. reliance risk GAAP. recognized addition are such believe mute certain there affect investors prescribed communicate standardized as GAAP sec.gov and use non-GAAP measures variety should a by background EBITDA, a for during noise. to Directors. adjusted or in

and of our Presentations. these which Reconciliations can the GAAP under You appendix. Events is available in X most is to the and as Investors at additional regarding the comparable included measures our in of EBITDA presentation, measure net non-GAAP presentation of an find adjusted section EBITDA information akumin.com Slide loss, on website

We we would have be effort. a not non-GAAP such not without to able measures in produce reasonable reconciliation as provided presentation reconciliation a forward-looking referred this to for any

happy oncology Moving to pro basis the everyone to service be to lines on volume patient performance X, Slide in discuss our able X, quarter. our to financial see to the On same-store Slide and radiology our in division. I growth today forma starts am speak our of can third a you

was Specifically, modest X.X%. a up volume our MRI

volume Our PET an was X.X%. CT impressive up

procedures total X.X%. down Our were radiology

up million of year. $XXX.X $X acquisition, last million $XXX.X oncology over which EBITDA last total XXX.X% quarter million sequential revenue mainly was Our in September starts Adjusted sequential in basis, This Alliance $XX.X was quarter second from and XXXX. previously noted. year. million of quarter or adjusted X.X% third $X.X X.X%. XXXX. of is up $XX.X XXXX, Ian, revenue X.X% the as by Services QX the of on was $XX the a completed due basis, million On On million or decreased from EBITDA million X, were million patient Healthcare or the of XX.X% by to second the down slightly impacted Hurricane was second decreased a from $XX.X quarter or

the certain in our the stable, for announced basis, On of EBITDA excludes which the quarter despite of quarter million that the million, August at the from Adjusted should end $XXX.X X down in details were from this fact X.X% in of receivables volumes impacted million. procedure were were it also noted to the the XX.X% QX sale margins were days $X.X challenges from the However, the remained be quarter the that only again accounts in down of of sales EBITDA on details adjusted quarter the history date. of end XX.X% the and the earlier. press lowest release. operations negatively second consolidated XX by additional at sequentially relatively XX This gain mentioned equates $XXX.X of accounts receivables a some outstanding, quarter. to some Slide about our Akumin’s to provides

underway to duplication. our completion X to of the organization is related Phase of integration initiatives, functional well with Our were remove which integration in primarily streamlining the process order

in the we million Phase run-rate we among and $XX achieved confident identified of XXXX consolidation, our will X have further synergies successfully two and to next million focus optimization, many plan. basis implement we a Phases are on addition of during procurement X network In other realize integration phases on we as that The can $XX transformation X, and initiatives. asset

already that to that we QX our we and impact have October lost volume results, in Thankfully, Ian was as procedure presence. have discussed, a was volumes. strong caused in fixed operations, of large short-lived, the be to by meaningful recouped as the where our Florida site will Turning Hurricane disruption QX we some suggested are QX optimistic a our

more constraints – in capacity specifically, – utilization clinical personnel labor suboptimal In availability some of in quarter. resulted the addition, ongoing in our and facilities

labor unique Akumin, the to to is taking future quarters. and pronounced mitigate shortages this While of are not impact these constraints we to steps issue expect be less in

division XX. As in the pleased changes reduced during QX. in line the our well, this service from change September to of contribution completed jurisdiction from oncology previously the the Delaware as effective also mentioned, of our incorporation were to Ontario made in state have quarter, We

benefit a we that are term. considered the of and all based our Given was all this the operations long-term our in a U.S. of U.S., issuer, domestic and now are logical shareholders in should step

to in be oncology are with excited which Slide able X, share recent Moving our developments to outlines business, you. slide we this to

partners, health have remain of system important an said our many complementary will our line we and focus business on oncology Akumin, hospital As occasions, to radiology very and for core a as businesses. it’s it’s

an uniquely important and including trends and in in importantly, deliver service. more refined will partnerships conducted opportunity partners has line, earlier hospital year a emerging by Prisma capitalize oncology leadership we business, MD proposition a our Akumin hospital joined important in has health and the the this with competitive oncology technology service value our distinct some to This in challenges is Health this led value experience of mobile on Akumin which to team oncology, delivering compelling and given to Jim refinement develop As many strategic face advantages address enhanced of to Anderson, executive execute A Brook, fleet, aging comprehensive patent-protected significant growing a in line. seasoned initiative, positioned including at Akumin market for new new and part this oncology our review system dynamics demand, strategy. our and hospital us at in recognized our and of capacity enable a this scale and partners. constraints. the that resulted growing needs our this proposition will extensive enable Akumin transformation for our of focus service partners focus market this the

the remain results future impairments the are multiple leadership the complete. this conducted very chain charge in impairment of the anticipate combined However, business the future. a hospital even the about confident of business. of financial review of a taking strategic expenditures that We of of review the we we of partnerships to review in become existing this will important excited future and the result the growth more some of is a We team; given an oncology in quarter incur issues; capital million partnerships, including the new and don’t our our business the in contributor impact division, our additional supply result any $XX new part now and that did as repositioning the implementing as deferral factors, delay by in

areas why Akumin X, oncology. of from value-add. this focused our on radiology services. procedures. come the revenues and Akumin of diverse MRI of It’s a clear Moving a offers illustrates high growth leader very to in suite high slide XX% is Slide platform

from also with our a revenues of coming XX% our are oncology division. diagnosis cancer XX% PET-CT of treatment, significant from and in radiology player total and our revenues We

to clearly benefit shift Slide service ongoing positioned X, is delivery. to from Moving outpatient Akumin well the to

outpatient As to our you XX% procedures. revenues can see, generate of from we over continue

and a forma consolidated We with customer hospitals third-party between representing services our more mix of X% outpatient payers than one no than balanced have pro more revenues. revenue for

over hospital outpatient preferred of patient for time, payers. to new turn our Kretschmer, from reimbursement which existing of approximately CFO, partners Over for to for or expect call as to hospitals, to of the a our provider is solution and the and will As Interim hospital radiology with balance David I paid hospitals and revenues government half oncology. both procedures by some come now financial operational to go our our the base revenue third-party solutions customers, customers we continue in grow metrics. search and over outpatient

David Kretschmer

Thank you, Riadh.

in Let and Akumin our at while to care by a the the how leadership and finance join the team commitments. deliver real value to I specific. excited and the ability time confidence improve team here on same team’s am saying in patient providers. the There’s start our in I general, to Riadh to me opportunity have capital bringing execute

As now of our we Slide track calls, illustrated a operating across by modality volumes we and noted mix, few track revenues By Akumin in and our procedures over procedure you percent on radiology sites, platform. time. the includes hospitals financial last scans together our radiology providing independent can new that the as X, with given as actual actively performance and

Slide as can Moving and in well MRI, volumes over XXXX volumes Alliance procedure pro XXXX provide PET-CT months, you including forma and volumes X, nine the see aggregate quarters particularly last you the as same-store can XX trailing pleased including our XXXX radiology in growth to with the the the PET-CT, changes total basis of as comparability, a on see. QX to acquisition, and

skill You our caused consecutive our in due volume quarters certain procedure core XXXX consecutive specialized sets in to can of of for Florida in volume of in to seven staff. in the the same-store in in PET-CT. ahead less total modality. clinical of six our well QX in volumes hurricane growth COVID. impacted relatively above and our primarily after saw factor note modalities we growth, modalities, quarters disruption X.X% levels slightly see XX-month given highly by MRI, and are In challenges a quarters were in that faced our and and which the this pro the PET and declined locations also among forma quarter, CT, of labor constraints labor of clinical constraints significantly Despite personnel volumes MRI growth flat with where XXXX core XXXX favorable same-store continue growth ongoing we growth we a are same-store our volumes, by six obviously Trailing consecutive volume the same-store slightly

are types segment, of on business, the start receive is element of their noting start commonality X. particular oncology months radiation the performance and has start, in you from X.X% Slide you trend Slide as the XXXX, QX to starts by mix volume course that to and radiation see expect patient we we as In track QX approximately these result QX Turning down I as down in treatment. provide XX it On metrics up I segment. slightly and our the financial therapy SRS declined clarity In XX, quarter. can that XX with cancer some to per metrics performance of levels, differ. the here regimes will evaluating the note treatments We stable, can and therapy Slide on our of essential patient months per our track two our to XXXX patient patients and radiation despite start by an to the in for those same-store the CyberKnife X.X% brings you on to fact a X, trailing were revenue treatment LINAC share In better care, cancer relatively as XXXX. oncology that ended in see additional oncology, XXXX will XXXX, revenue by trailing XX% of therapy patients activity reimbursement hypofractionation.

XX-month and QX divestiture segments, combined and Arizona. illustrates while we two Alliance Akumin these trailing of oncology the performance slide the that the know, Alliance assume legacy XXXX pro financial As the QX radiology segments. Note oncology. each period, for the of of results were businesses report forma entire adjusting for of you This XXXX

approximately top a QX. the total of in revenue million segment radiology declined On $XXX.X As corporate chart representing revenues you’ll adjusted QX, left, in see X.X% of radiology margin services. on for basis, on with allocation of XX.X% XX% the million EBITDA an from the the of $XXX.X contributed revenues sequential

$XX.X was This, XX.X% EBITDA constraints earlier, XX% adjusted personnel. down this which in of an by total label as million impacted were as or quarter margins, some in As the clinical sequentially million the challenges contributed were allocation second oncology revenue floor of margin The quarter. consolidated EBITDA $XX.X before approximately caused the from slightly, operations X.X% On corporate attributable in result of the segment with from radiology in Riadh adjusted QX, to of the which were Hurricane Oncology mentioned from sequential adjusted our primarily disruptions XX.X% well segment in and turn, of services. up margins Ian weaker as were EBITDA in we margins QX XX.X%, revenues mentioned, faced well. from the Adjusted sequentially was primarily QX results down slightly the in a the to XX% quarter. basis, up given as QX. of in EBITDA XX% the

Turning to for led factors results, our year to us XXXX. Slide quarter XX. our have Since expectations several we second full revise reported

hurricane included strategic these division. and our shift earlier, discussed we the As the labor impact, oncology in constraints,

a full QX. revised remain in approximately run range our made impacted million. realizing revenues While have achieve these down for on will previous outlook, our to our We negatively we the we million, toward in factors million have initiatives XXXX. the consolidated Slide synergies $XXX significant $XXX integration and XXXX million progress our of to X basis $XX benefit that confident rate $XXX Phase to of be $XXX expectations million XX now expect of guidance out from sets of

We million be $XXX million million, expect million. down range to $XXX in to XXXX adjusted $XXX to the from of $XXX EBITDA

our refine ensure aligned CapEx better most that strategic recall continued deployment our the of efficient equipment, throughout budget CapEx, XXXX, have to to priorities. we Turning to with

approximately We new growth to on sites. all total $XX CapEx near-term for prioritize criteria, new allocated spend that the our customers CapEx to now expect million of for continue potential to million, our with and and We evaluate those be $XX are markets greatest growth. based

reminder, customer is a capacity new growth primarily partner as towards geared expansion. acquisition hospital as As well CapEx

no banks. new cash sites with our in of to anticipate expect the equipment Our that by implied Note fourth flow our on be midpoint free in of typically including the analysis our continue given EBITDA We organic now plans. cash on Slide previous free payback finance our flow a that we we discussed these to this table annualizing and new investment of $XX in we X-year expectations, the part cash XXXX. $XX regional expect contribution our X Under of funded on track the assume be the Based exit CapEx this midpoint customers assumptions, the integration We’ve in OEMs, financed adjusted million assumes over be deployment and The Again, to Phase in to approximately XX on flow. EBITDA generate no highlights by analysis. quarter synergies combination $XX approximately year. guidance, in the million Phase no and expect CapEx of to million high cash generate revised also contribution adjusted in companies, and as from flow $XX shown free growth achieve capital. to conservatively now to rate a slide. in and return, million $XX million we and growth X guidance expectations CapEx the in balance free total of cash XXXX exit growth

You interest recall have through that XXXX. we picked Stonepeak the debt subordinated of the

year XX analysis of provide will for third of XXXX. this the Slide illustrates We structure our at quarter. update full course end the will capital guidance

on service As capture, reducing as EBITDA from network leverage leverage you see, this standardization, the is reduction of streamlining time. The synergy delivery. In drivers technology-driven and secured Akumin’s rationalization, organization, the increasing result are come can leverage X.Xx. we a focused will of near-term of over

In revenue our given which of levers leverage. significant addition, increase EBITDA we purview, we growth meaningfully to our expect in abundance an organic have operating

secured are continue organic Note, we the options questions. incentivized below as now growth over to over evaluate structure, it or capital Xx take will to opportunities, to time. market EBITDA shareholders, and Riadh, will these As we highly a result prudently that efficiencies we optimize our I will to adjusted before significant conditions permit. you of do decline we cost leverage significant so turn to believe

Riadh Zine

you, Thank David.

We the are obviously period. ready question-and-answer for

to we the question-and-answer now So, the ask would period. start operator

Operator

over first We Instructions] [Operator go Noel our phone, now Please Securities. question the ahead. Clarus comes will to move which from from Atkinson

Noel Atkinson

David. this and our for morning. taking Good Riadh, questions welcome morning, to Thanks

Okay.

if to off, the you want you So, first the a little talk so about for bit thank we insight what into with oncology, do business. can

What’s mobile units today? in do in have of about mobile to mobile many of And how units? your units. these you any talked plan You one fleet cost the Do outlook the for ‘XX? you deploy

Riadh Zine

Noel, question. for you, Thank and the thanks

within one able XX, months units, mobile six next fleet, mobile two in units two have ordered, We ordered. probably up $X go to mobile of months one in million. six and have we XX we But the be need the one we have them units to would units the We in on our we partnerships. cost our all to fleet. These will our with on believe believe already we And able to execute execute the partnerships. don’t we more and believe just new the shot. We from excess to already be

a when they I new initiate not them you imagine, like could But cancer although of These partner months very or to MRI. effect four to mobile think are as heavy mobile for units. don’t new program. parked hospital because to they they to think are they are upgrade months enable six parked, are are – their an really a units,

a optimal a probably to could for fleet And than six. so we that, it of so half we four number significant of investment. is to to in the not the need more size in enable it’s six really months, partnerships be given But have months get basically basically, around that so place every would already year unit we that’s one if doesn’t why – believe

will hope to million, $XX another our with your have that optimal ready I answers the market question. address So, fleet we opportunity.

go ahead, Sorry, David.

David Kretschmer

patents It on hold mention might be this the worthwhile to briefly that we technology.

Riadh Zine

you, – actually David. That’s Yes. thank

also It’s patent have And in past. in something not focusing because that the subject, done Noel, we our in David really as for am this I presentation. our you a think brought notes talked and you that’s glad, we we that significant thank the have advantage. I up the review, mentioned competitive on have about

were in we a as the So, weeks going as ago the Canada to few U.S., well. patent in

will as We get also granted we expect in well. patents overseas the

close It two the So, we an we with acknowledged we as in by not gone OEM, team, was a And we as look, the patent the is year best why physics of a acquisition course. which internally with really through is really one developed was are another of kind a really Alliance, and country. the took you exercise transformation a And one our milestone have once and are that’s like of There of are parts here. it patents, in because operating normal pause, have really. XXXX one the – Akumin. you integrating

and at what at You are what’s market, the and you to enable my this like of there. looking could how assets, kind okay, growth, optimize could things trying are looking say, the patents partnerships your are these in out trend

see when aging where like that really give you ones to a you if review look at fleet something like on we this an And is partners you So, of the just today, example, with hospital therapy. patent radiation through the significant. go

have the you six upgrade, for upgrade. years, you That anymore. you Even the have if a months old, program don’t do an So, XX means four to do you if to have it’s go months. XX dark capsule want years to to

change significant execute was leadership And a the strategy. a that will in is and on that’s required this strategy executives So, again, we we seasoned expertise brought on. why with to growth asset also significant build our

Noel Atkinson

in QX Okay. refocus should ‘XX? in line kicks as Should in your bit prepared see and softer recovery mobile more – to units then your we based comments and we start some expecting be oncology on the remarks, these be be to a in, expecting than business just your

Riadh Zine

Yes. That’s fair.

to also some in the pipeline mentioned delay supply in there was due chain issues. think you I partnerships

where the new revenues replacing existing we an already So, mobile, yes, some equipment. even contribute regardless of in saw will pipeline are the that those things like partnerships we new not of

year, partnership. you actually are be in of doing and year. see contribution Those until brand-new this a end not executed the next will will You

correct, that’s So, Noel.

Noel Atkinson

free cash flow ago, million from of it over slide, where which a a big that’s talks for $XX basis flows Great. cash Okay. for a the on go-forward it is – example. was The leap about free year company

this over million So, given point cash of at run you annualized $XX baseline static something point of on CapEx, how flows cash as Is doing, like that’s in of we exit or the this? a before in whatever? rate or should free for the be run this rate of if of flows impact looking that’s that or business. from is ‘XX kind you would a time, new time, would is taking that – normalized were wins, any the new the and a at you baseline see But be sort just growth like customer

Riadh Zine

David, question? that want do answer to you

David Kretschmer

and then on we I cash is terms line of expect of and But that we well. – which the transformation pay. XX.X%. run Stonepeak rate in we And fourth benefits synergies to done have the our is, it $XX articulated does XXXX. would taken we early include additional quarter we have think you note of a EBITDA. the goes we achieve then baseline, that it sight have adjusted included in What And range have annualize not when noted, midpoint as expectation No, of of included we that. the million

Noel Atkinson

presume, side, I volumes. radiology to normalized you Okay. to start on see If the labor recovery a more and constraints particularly ease,

is that number. to there upside So,

David Kretschmer

labor investments of noted, XXXX, as yes. it made and include some does yes Riadh adjusted And still already labor, have with made we to somewhat in not starting easing. remember, tight. additional – where CapEx we any conditions that the point EBITDA. we And are have just it assumes the Well, assume to no are does any But about your QX payoff marginal

other have think you seen this, this I on heard and earnings calls. have we

are layoffs, a companies they new We of backing the lot to are are as that hiring. announce seeing off on beginning

That starting constraints in some to ease. range. see QX of those side are and to side, the clinical the both factored administrative wasn’t really starting We our on

would markets I there additional is So, as that upside labor those say ease.

Noel Atkinson

quick more Okay. one Great. One me. for

impacted the think So, Nicole. That landfall the remember can again, QX, I first into few the of know Hurricane sounds name of by quite it’s the Ian days now end had you of it. don’t of QX, then QX. rolled I And just if significantly I kind right.

the so impact what’s your of these So, QX in from Florida, on hurricanes? outlook guidance in your

Riadh Zine

the current business The happened same not of in even hours yesterday Hurricane but some for Ian. what facilities, We one open not Ian. today. to is Yes. with severity it’s of and certain reduced Hurricane were comparable Maybe few

Noel Atkinson

Great. Okay.

Okay. much, Thanks very guys.

Riadh Zine

Noel. you, Thank

Operator

We please sir, – move go apologies on our will to now ahead.

Riadh Zine

go just is was ahead No, I thanking. there Please if another question.

Operator

now will from We comes ahead. Endri move over go which the National our Please phone, on question next from to Leno Bank.

Your line open. is

Unidentified Analyst

is calling This Eduardo Good morning. Endri. Hi. behalf on Garcia of

So I couple have – thank you for taking my questions, a from me.

some of X.X rate that does and costs? impact Alliance The first finalized hospital cuts, one is, given Alliance the how CMS that

Riadh Zine

what rate way The paid way per The as from or the really, get mix. exposure procedure. hospitals a we government impacts, is per Yes. payer service our in provide we

the and a have don’t Medicare. don’t is We major exposure really to from we analysis know, do you preliminary the as impact a to a on we it this, Medicare, in So, exposure see what which have significant you did impact. expect to

color think that. I probably on David, you have additional

David Kretschmer

Yes. We that revenue. $X.X year’s is midpoint in estimate range of the million impact this million. points basis The to be XX the $X.X to of of

not headwind, a meaningful but meaningful, a slight So, impact. not

Unidentified Analyst

the of that. the the year. Okay. CapEx terms at for XXXX, provided below significantly revised Thank beginning is next one the guidance the And is initial it of for in you

do it you can me for we we anymore? Should about So, transfer how give some So, differential next color? think this you need it? year, do or

Riadh Zine

this on time of because don’t on since the that That’s joined, color part point start he I great gone and details well. we a will point, actually point. news I, That’s add this. important about. we good haven’t some really a that into that question, and David of on will Because and lot a is spent really as we David talk Well,

the So, for question. you thank

of million $XX have forma $XXX business it’s that think the CapEx the on but things around. mobile to a are could those from and forma the see of fixed optimization fleet integration business. say, closing I pro of, a is you yes, the knows pro assets, savings on EBITDA, transformation still every had not the it’s All same we basis, the What year. the doing same of yes, you sites, certain of we this really moving kind kind everyone the about don’t million basis, are done,

need. this glad am that question. that million asked you It’s is the you So, new I for year CapEx really the CapEx $XX have you the level.

to it right. we that, and deferred That’s the So, And on year, growth is maintenance haven’t half level. of next is top of it $XX of half right. new million

So, million, in maintenance impact our have we $XX an around CapEx growth to and million CapEx, current maintain will you the that as obviously million which $X know, of $XX think EBITDA I presentation, next of have year.

we next CapEx. executing opportunities, unless very high million growth $XX So, into year, it’s really of another are going

add well. know really So, on what for joined, focus that transformation year. a to is since the want I or color know, this if benefit, David, you major you that’s because additional other was as milestone for you don’t I exercise byproduct, from the that

David Kretschmer

question. Thank Riadh. It you, a is great

and by has touched company up have moved Well, the equipment be developed Riadh doesn’t to can relationship but transitioned a the things relationships. now of is, upon growth for discipline One underperforming the think frees to be unprofitable unprofitable purchased exit or the to opportunity, which opportunity. just I is exiting that

and it. tension, of really healthy out get and everyone There money of and I I One we spend, by in appreciated seeking among strategic collaborative I but And are build the the things instituted of the have that is been result Riadh a short the really been has completely capital. talked. of fact have the capital and their experienced disciplined the it’s is you of here I are the the is not impressed things losing have is And willingness capital have “Well, that always which team, finance which unprofitable kind of time operators Riadh with being the capital say, where Akumin. as onboard at new have the teams businesses committee management the and people if that with tension, strategic.” out have, It’s corporate relationship the expects the operators being to between to the relationships. one with disciplined optimizing I idea

process. disciplined fact, very the lower that been said, and reasons continue company Riadh CapEx with is, the to a So, in well-run new of very as same it’s EBITDA the that, to one spend. expect It’s has able

Unidentified Analyst

reason for you. on CapEx. If more I can me you net the some Thank One presentation, on provide you answers. Is you CapEx your there noticed color there. clarifying doing that? Okay. are financing. of for a your question Thank

David Kretschmer

finance. in the million, be Riadh, think deck am would – is I if outlined what of million $XX that our $XX we correct me I wrong,

Riadh Zine

It And actually they us to would are important That’s questions Yes. I helping your right. finance. deliver because other be – again like messages.

So, of the we cash optimal. financed reason have not a $XX was the opportunities. lack excess million have is did financing and we rest and because cash It’s really

wanted. capital much as finance to we room of plenty as have We

use great year, CapEx really a the had we it actually thing. whole we could we executed this for have if $XXX million So, and finance would on of

a from this your good question. original I again, follow-up So, think is

of should questions and a takeaways leave $XX a we from also, two I two the financing the new know lot audience takeaways have. business really and One, your of are for in a really, capital. the is noise lot the happened capital the So, two, But on level with are not but from we side. CapEx investors the there quarter, this quarter. important the million constrained is

pause year place, a opportunities, the not as what and put identify after want. we took have, we go we not to discipline growth pause optimize to usual, take discipline. we on a as million whatever spent when to in then integrate operational could we business and acquisition, want So, an this to financial as after continue finance $XXX not we what to is prudent But and

no you see know the to totally I lot market that’s pain. value. think There to quarter. other create what not the see But So, thing. did value we I it’s way. of is the take but long-term to a shareholder to is And to I do every There understand, you have right likes this if long-term want right path. creation, thing

Unidentified Analyst

the on I a touch impact more, you just and Okay. that. Thank to couple I Ian on wanted the may. have actually you Hurricane again if I and back centers. for thank

fix some are the aspect CapEx back are expecting to were from physical getting impacted? And So, of operations? or they just the them we to you assets,

Riadh Zine

was impact, So, there yes, by covered insurance. but that’s

issue. an not it’s So,

Unidentified Analyst

customers, Okay. of Akumin the And terms in Are taking long to were they they impacted? recover?

Riadh Zine

to bit We previous are pocket. was back their a not is has really employees was the had kind that to little Life we We a just had homes was take pocket Florida, back There will that it’s severe. today, not time major impacted. levels. in people We but small but impact. are something of a still Unfortunately, had that normal, impact Myers There to back and impacted. a in that Fort to around go more customers bad.

Unidentified Analyst

the Could payment? And charge? Okay. financial It’s for Thank million provide the you. color last $XX all one non-cash on you me. impairment some

David Kretschmer

That’s Yes. correct.

Unidentified Analyst

Thank Alright. for you Thank answers. your you.

Riadh Zine

any questions. for questions? you questions. additional Are your Thank appreciate Great Much there it.

Operator

No, sir. remarks, for I will hand back sir. closing yourself to

Riadh Zine

is for today’s exceptional everyone setting. call. you in care drive value, and innovation, to participation service on vision all Thank outpatient patient-centered Akumin’s standardization, delivery healthcare an your

we We U.S. oncology, team platform more freestanding than the and On generated more trailing are significant forma across and and XX-month system members healthcare and revenues basis, hospital than in a of outpatient served relationships, a services health fixed with $XXX patients pro radiology sites in expertise. leading scale, X,XXX XXX with excess million and operational long-standing in

we to this as well our foundation. XXXX to and on build earlier, milestone be continue As are mentioned integration we initiatives a underway, expect year solid

of and in their like our and customers at to stakeholders all in Akumin Our we the This opportunity staff, would support our call. interest story. efforts Akumin growth thank to to has and Akumin. I all to and your take ahead to opportunities been to transformational thank better for the change never our this partners, ongoing continue for participants thank again as on concludes hospital our our Thanks our industry. capitalize trends positioned

Operator

and speakers. much for today’s this conclude your to today’s gentlemen, Thank Ladies does very you call. much Thank participation. very you

disconnect. You may now

Akumin (AKUMQ) 12 Nov 222022 Q3 Earnings call transcript