AdaptHealth Corp. Common Stock Canaccord Genuity's 46th Annual Growth Conference

Great. Well, thanks for having us, and thanks for the opportunity. I think to understand Q2 results, I'd like to just take a minute to talk about, give some context to anyone who's new to the story around what we've set out a couple years to accomplish. I won't go in too much detail, but I think it's important to understand where we are in our journey. AdaptHealth, a couple years ago, I came into the role, and at the time, what we found was we were a company that was made up of over 150 acquisitions, small acquisitions that came together. Company was founded about a decade ago in a time when durable medical equipment and home medical equipment were going through one of the first consolidation times. The government had come in, putting a competitive bid.

The industry was made up of a lot of mom and pops. Adapt saw an opportunity back then to consolidate and bring these companies together because they figured size and scale mattered. You fast-forward to a couple years ago, the acquisition strategy had been very successful. We had become the number one in terms of size and scale, but a lot of the integration work, the workflows, the inner operations of the business, really we were still operating not as one big company, but as a bunch of little parts. We've been on this journey to integrate that and establish more standard work in a market where we saw that there was tremendous growth. We had set out 2 years ago to say the first thing we need to do is drive organic growth. We had stalled in our growth, really from a capacity perspective.

Without that standard work, we couldn't quite drive the capacity we needed. We also had, through that acquisition strategy, acquired a lot of technology or product portfolio that was sub-scale. We had to pay down debt. That was kind of the key mission we were on. Over the last 2 years, what we did is we immediately set out on a product portfolio rationalization, which has really came to a conclusion in Q2. In Q2, we announced the sale of our diabetes business, for reasons I can go into later. Our e-commerce business we spun out. We exited some of our supplies drop-ship business that is subject to future competitive bid. That followed a series of dispositions over the last 2 years, all with the intention of focusing the business on sleep, respiratory, and supporting home medical equipment.