Good afternoon and welcome to The Oncology Institute's Third Quarter 2024 Earnings Conference Call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Mark Hueppelsheuser, General Counsel at TOI. Thank you. You may begin.

The press release announcing the Oncology Institute results for the third quarter of 2024 are available at the Investors section of the company's website, the oncologyinstitute.com. A replay of this call will also be available at the company's website after the conclusion of this call. Before we get started, I would like to remind you of the company's safe harbor language included within the company's press release for the third quarter of 2024. Management may make forward-looking statements include guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our filings with the SEC. This call will also discuss non-GAAP financial measures such as adjusted EBITDA. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are included in the earnings release furnished to the SEC and available on our website. Joining me on the call today is our CEO, Dan Virnich, and our newly appointed CFO, Rob Carter. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Dan.

Thank you, Mark. Good afternoon, everyone and thank you for joining our third quarter call. To start, as you know, we recently welcomed Rob Carter as our new Chief Financial Officer, and I couldn't be more excited about the expertise and vision he brings to the CFO role at TOI. With over a decade of finance leadership experience in the health care sector, Rob is a seasoned executive dedicated to driving financial excellence and strategic growth. He previously served as our SVP of Finance, where he oversaw Corporate Finance, Financial Planning and Analysis, Treasury and Investor Relations. Rob has played a crucial role in shaping the company's financial strategy, and I look forward to continuing to work closely with him in his new role. I'd also like to thank TOI's more than 130 oncologists and advanced practice providers as well as all of the teammates across our 72 clinics and corporate locations for enabling us to achieve another quarter of outstanding growth. During the quarter, we signed an additional three capitated contracts across two states, including both Medical and Radiation Oncology Services. We added a second capitation contract in Florida, which is a direct to a health plan partner as well as our first capitation contract in Oregon. Year-to-date, we have now signed 13 new capitation contracts across the organization. We also achieved certification to begin Radiopharmaceutical Therapy in our California radiation oncology practice. This will be an important driver of growth and margin for our Radon business going forward and we are one of the few community based practices on the West Coast to offer this service, which traditionally occurs in the hospital setting. Overall, revenue grew 21.8% in the third quarter compared to the prior year period, driven by an exceptional oral drug revenue growth of approximately 80%.…

Thanks, Dan, and good afternoon, everyone. As TOI's new Chief Financial Officer, I'm excited to be a part of this exceptional team as we continue to seek to drive growth and deliver long-term value to our shareholders. Since being appointed CFO, I've had the opportunity to dive even deeper into the company's financials, operations and strategies. I'm truly excited about the direction we are heading. Let's begin by reviewing our financial performance for the quarter. Consolidated revenue for the third quarter 2024 was $99.9 million, an increase of 21.8% compared to Q3 2023 and a 1.3% increase compared to Q2 2024. The increase is driven primarily by our dispensary revenue due to our California based pharmacy, which continues to exceed fill expectations. Gross profit in Q3 2024 was $14.4 million, an increase of 10.3% compared to Q2 2024. This increase is attributed to improved IV margins, which we expect to continue improving as the year progresses in line with normal seasonality. We were able to hold SG&A flat despite the strong growth in our top line. SG&A, including depreciation and amortization, was $28.2 million in Q3 2024, an improvement of 560 basis points compared to Q3 2023. As a percentage of revenue, SG&A including depreciation and amortization was 28.2% in the quarter, improving 820 basis points from Q3 2023 and 160 basis points from Q2 of 2024. Loss from operations for Q3 2024 was $13.9 million, flat compared to Q3 2023. Net loss for Q3 2024 was $16.1 million, an improvement of $1.3 million compared to Q3 2023. Adjusted EBITDA for Q3 2024 was negative $8.2 million compared to negative $5.3 million in Q3 2023. Moving to the balance sheet. As of the end of Q3 2024, our cash and cash equivalents balance was $47.4 million, this represents an increase…

Thanks, Rob. To summarize, Q3 represented a strong quarter of growth for TOI as measured by further capitation wins across markets and building the momentum in our Part D business. As we continue to grow, our commitment to become profitable remains unwavering. As Rob and I mentioned earlier, we are focused on optimizing our operations and managing costs effectively. Our disciplined approach to cost management, combined with our revenue growth is paving the way so that we believe we can move toward achieving sustainable profitability in the year ahead. With that, we're now ready to take your questions. Operator?

Thank you so much. I'd like to thank all conference participants who joined today and your interest in The Oncology Institute, as well as there are over 700 teammates and clinicians for another quarter of outstanding growth as we further improved our value based model in new markets as measured by new capitation contracts signed and added some exciting new therapeutic options for patients through our radiopharmaceutical program launch. We look forward to updating you on further progress of the company in upcoming quarterly calls. Back to you, operator.

Thank you. Ladies and gentlemen, that then concludes today's conference. Thank you for joining us. You may now disconnect your lines.