R1 RCM Inc. (NASDAQ:RCM) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 08:00 am ET


R1 RCM Inc. (NASDAQ:RCM) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the R1 RCM Q2 2020 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Atif Rahim, Head of Investor Relations. Thank you. Please go ahead, sir.

Atif Rahim

Good morning everyone and welcome to the call. Certain statements made during this call may be considered forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, any statements about our future growth, plans, and performance, including statements about our strategic and cost-saving initiatives, our liquidity position, our growth opportunities, and our future financial performance are forward-looking statements.

These statements are often identified by the use of words such as anticipate, believe, estimate, expect, intend, design, may, plan, project, would, and similar expressions or variations. Investors are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements made on today's call involve risks and uncertainties. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law.

Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including but not limited to the potential impacts of the COVID-19 pandemic and other factors discussed under the heading Risk Factors in our Annual Report on our latest Form 10-K, annual or quarterly report on our Form 10-Q for the quarter June 30, 2020.

Now, I'd like to turn the call over to Joe.

Joseph Flanagan

Thank you, Atif. Good morning everyone and thank you for joining us.

The second quarter presented continued unprecedented challenges from the COVID-19 pandemic. Despite this difficult backdrop, our team came together in a remarkable manner to support our customers and ensure that patients have access to care in a safe and expeditious manner. I'm very proud of our over 20,000 employees for their dedication, positive attitude and customer focus in the current environment. The commitment and engagement we've seen from the team is a key driver of our success.

We've provided uninterrupted service to our customers and helped them navigate challenges brought about by the pandemic, which has translated into strong positive feedback and strengthened relationships with our customers. We had a strong second quarter with revenue of $314.7 million driven by continued strong deployment execution and organic growth at our large end to end customers. Adjusted EBITDA of $65.3 million was up $24.7 million year-over-year, driven by broad-based operational execution with a particular focus on cash conversion for our customers and driving operating efficiency.

Overall, the Company has performed well during this challenging environment. In addition to these strong results and navigating the COVID backdrop, we completed the acquisitions of SCI Solutions and Cerner's RevWorks business and announced the divestiture of the EMS business. These accomplishments are a testament to the significant effort by the entire R1 team. Today, I