Welcome to the Greenbrook TMS Inc. FY 2023 Q3 Results Conference Call and Webcast. All lines are currently on mute to prevent any background noise. I would like to remind you that this conference call is being recorded today, and it's also being webcast on the company's website at www.greenbrooktms.com under the Investors section, Events. After the speaker's remarks, there will be a question and answer session. Analysts and investors are reminded that any additional questions can be directed to the company at investorrelations@greenbrooktms.com. This call contains forward-looking statements which reflect the current expectations or beliefs of the company based on currently available information. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations are discussed in the Risk Factors section of the company's annual report on Form 20-F for the fiscal year ended December 31st, 2022, and in the company's other materials filed with the Canadian Securities Regulatory Authorities and the U.S. Securities and Exchange Commission from time to time, which are available in SEDAR, EDGAR, and on the company's website. Any forward-looking statement speaks only as of the date on which it is made, and the company disclaims any intent or obligation to update any forward-looking statement unless required by law. I would now like to turn the meeting over to Mr. Bill Leonard, President and Chief Executive Officer of Greenbrook TMS, and Peter Willett, Interim Chief Financial Officer. Go ahead, please, Mr. Leonard. Thank you, Blair, and thank you to everyone for joining our conference call and webcast today. During Q3 2023, we continued to focus on the execution of our restructuring plan, and we are very pleased with the progress to date. The reduction in headcount, rationalization of the marketing spend, extinguishment of the lease liabilities, and a reduction of other recurring corporate, general, and administrative expenses has effectively removed $23 million in annualized costs from the company as compared to Q4 2022, achieving our target range of $22 million-$25 million in cost reductions. We remain optimistic about our future as we execute on the remaining components of the restructuring plan. Quarterly revenue decreased by 13% to $18 million, down $2.8 million as compared to Q3 2022, despite the closure of 53 treatment centers or 29% of the active treatment centers in connection with the restructuring plan as at Q3 2022. Year-to-date 2023 revenue increased by 17% to $56.3 million, predominantly due to the Success TMS acquisition that was completed in July 2022. Q3 2023 revenue proved to be resilient at approximately 80% of the total quarterly revenue achieved in Q4 2022, despite the closure of 53 treatment centers mentioned above and general liquidity constraints prohibiting any meaningful investment in marketing year to date, which impacted the revenue we were able to generate. Despite this, our base-level post-restructuring quarterly revenue continues to prove very encouraging and presents a great foundation for future profitability, especially in context of our newly rationalized cost structure. We believe reverting back to more optimal levels of marketing investment will enhance our TMS business. The continued rollout of the Spravato program, including the launch of Buy-and-Bill, and a significant focus on contract negotiation with payers, provides a realistic path to this goal. We have also commenced the rollout of medication management program as an additional revenue stream and a mechanism to build on internal patient pipeline, which has already yielded positive results to the business. While liquidity constraints still remain, we are confident in our ability to have continued access to capital to drive us to self-sufficiency, as evidenced by our recent financing transaction with our supportive insiders and lender. On the strategic partnership side, we continue to work with Neuronetics leadership closely at various levels to implement a mutually beneficial strategy as it relates to enhancing TMS awareness, expanding patient access to care, and effectively redeploying systems from recently closed treatment centers. We're also very excited about the launch of their new Better Me Guarantee pilot program, which we believe will allow us to further increase our access to patients suffering from mental health disorders. Early results of the pilot show an increase on historical averages in leads and book consults, which should translate into patients. Although we have achieved our previously announced annual cost savings, we continue to execute on the remaining components of the restructuring plan. Given the ongoing nature of execution, the reduction in costs were only partially reflected in Q3 2023, and we expect our new operating structure will continue to allow us to rationalize costs while further reducing business complexity, streamline our operating model, and drive operational efficiencies. We believe that mental health remains a key focus in the United States, and the unmet demand for treatment remains at an all-time high, with our network of treatment centers well positioned to serve the unmet demand. We believe our business fundamentals are stronger than ever with the growth of the Spravato program, the opportunity to increase marketing investment in our streamlined business, the introduction of medication management, and the potential future treatment options, including psychedelics. At the end of Q3 2023, the company had a footprint of 130 treatment centers. As of today, we have 56 treatment centers offering Spravato, and we expect to have 78 treatment centers offering Spravato by the end of the year through an accelerated rollout plan. Now, for a more detailed review of the company's financial and operating performance, I will turn it over to our Interim CFO, Peter Willett. Thank you, Bill. As Bill mentioned, revenue in Q3 2023 decreased by 13% to $18 million, down $2.8 million as compared to Q3 2022, despite the closure of 3 treatment centers, or approximately 29% of active treatment centers in connection with the restructuring plan as at Q3 2022. Year-to-date 2023 revenue increased by 17% to $36.3 million, up $8.3 million as compared to year-to-date 2022, predominantly due to the Success TMS acquisition that was completed in July 2022. Furthermore, Q3 2023 revenue remained resilient at approximately 86% of the total quarterly revenue achieved in Q4 2022, despite the closure of 3 treatment centers mentioned above and a significantly reduced marketing spend, which represented 10% of marketing spend in Q4 2022. Average revenue per treatment increased by 4% to $227 in Q3 2022 and remained consistent at $222 in year-to-date 2023. The quarter-over-quarter increase was primarily attributable to changes in payer mix, treatment modalities, and the geographical distribution of revenue. Despite low revenue levels in Q3 2023, we continued to generate entity-wide regional operating income for the third consecutive quarter as a result of the significant cost reductions implemented in connection with the restructuring plan. With reduction in headcount, rationalization of marketing spend, extinguishment of lease liabilities, and reduction of other recurring corporate, general, and administrative expenses, the company has effectively stabilized its cost structure and removed $23 million in annualized costs as compared to Q4 2022. Direct center and regional costs decreased by 19% to $17.5 million during Q3 2023 compared to Q3 2022, due to the reduction in headcount, rationalization of marketing spend, and a reduction in other direct center expenses resulting from the execution of the restructuring plan. Given the ongoing nature of the restructuring plan execution, the reduction in associated costs were only partially reflected in Q3 2023 but will be fully realized by the end of fiscal 2023. Direct center and regional costs increased by 10% to $54.8 million during year-to-date 2023, as compared to year-to-date 2022, predominantly due to the Success TMS acquisition, partially offset by the cost savings in relation to the execution of the restructuring plan previously mentioned. Entity-wide regional operating income was $0.5 million during Q3 2023, as compared to an entity-wide regional operating loss of $0.8 million in Q3 2022, and the company generated entity-wide regional operating income of $1.5 million during year-to-date 2023, as compared to an entity-wide regional operating loss of $2 million during year-to-date 2022. Both increases were primarily a result of the significant cost reductions previously described. Corporate G&A, excluding one-time costs and the revaluation of conversion instruments, decreased by 10% compared to Q3 2022 and by 20% compared to Q4 2022 as a result of the restructuring plan execution, but increased by 10% as compared to year-to-date 2022 due to the Success TMS acquisition, offset by the restructuring plan execution. We believe we can continue to reduce corporate G&A costs as we execute on the remaining components of the restructuring plan. The loss for the period and comprehensive loss decreased by 24% in Q3 2023 to $12.7 million, down $4.1 million as compared to Q3 2022, primarily due to the increase in regional operating income and decreases in corporate G&A as part of the execution of the restructuring plan. The loss for the period and comprehensive loss increased by 7% to $34.4 million for year-to-date 2023, up $2.3 million as compared to year-to-date 2022, primarily due to the increases in interest expenses arising from the additional debt financings, the loss on the Weiss contract termination, the increase in share-based compensation expense, the increase in cost and depreciation as a result of the completion of the Success TMS acquisition, and one-time costs, partially offset by the increases in regional operating income and the cost savings associated with the execution of the restructuring plan. From a balance sheet perspective, accounts receivable remained fairly stable as we have optimized our RCM function and now effectively generate cash revenue. Cash at the end of Q3 2023 was $1.8 million, including restricted cash. Subsequent to Q3 2023, the company received $4.7 million in financing from our supportive lender and various investors. We remain confident in our ability to continue to access capital to move to a self-sustaining business. Now more than ever, we believe we have a completely defined pathway to profitability with a stable cost base, as Bill described earlier. Moving to our core operating metrics. As at the end of Q3 2023, total active treatment centers decreased by 29% to 130 from 183 a year ago. Compared to Q3 2022, the number of consultations performed decreased by 5% to 8,334, while the number of new patient starts decreased by 11% to 2,546, and the number of treatments performed decreased by 16% to 79,488. These decreases were primarily due to the decrease in treatment centers previously noted. Compared to year to date 2022, the number of consultations performed increased by 58% to 26,233, while the number of new patient starts increased by 24% to 8,047, and the number of treatments performed increased by 17% to 233,876. These increases were primarily due to the completion of the Success TMS acquisition. We believe that devoting more resources and focus to our best performing centers through the restructuring plan will increase conversions. This, paired with a measured approach to increased marketing, will boost our core TMS business, and the continued strong growth of our Spravato program will be a catalyst for future revenue growth despite the reduction in centers. Back to you, Bill. Thanks, Peter. Our business has shown a remarkable resilience in spite of the challenges we've been faced this year. Our commitment to the execution of the restructuring plan continued to yield positive results in Q3 2023, including our third consecutive quarter of regional operating income. The company's in the final phases of the restructuring plan and anticipates the reductions made to the business cost structure will solidify our path to profitability once we're able to resume investment in activities to support our revenue growth. We're excited to continue our rollout of new treatment modalities, including our previously announced medication management pilot and our newly introduced Spravato Buy-and-Bill program, which will complement our current Administer and Observe programs in allowing us to further enhance our access to patients. We believe that mental health remains a key focus in the United States, and the unmet demand for the treatment remains at an all-time high. We continue to offer innovative solutions for this unmet need, and our leadership position and nationwide footprint continues to serve as a valuable platform to bring the needed help to patients struggling with depression. As always, I would like to take a moment to thank our amazing team. We are extremely proud of them as they continue to deliver the highest level of care through some recent turbulence. Most importantly, we know that we're making a difference. We now have treated over 40,000 patients with more than 1.3 million treatments performed. We are having a significant positive impact on the lives of so many people suffering from mental health disorders. We look forward to keeping you updated on the progress of the company. Thank you for your time today, and with that, Blair, we will now take questions. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone. Again, that's star followed by the number one. You will hear a three-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press star followed by the number two. If you are using a speakerphone, please lift your handset before pressing any keys. We have our first question coming from the line of Frank Takkinen from Lake Street Capital Markets. Please go ahead. Great, thanks for taking the questions. Bill, I was hoping you could start with just talking a little bit more about the NeuroStar pilot program. What should we expect to see out of that? What are some early learnings, and how should we expect that to impact the business going forward? Yeah, thanks, Frank. Good to hear from you. We're really excited about the pilot that we've kicked off with Neuronetics. You know, there was a lot of thought put into it. The reality is that it, it's a-- It focuses on a select group of practices that really adhere to kind of rigorous criteria to achieve the highest level of clinical excellence in patient care. Key areas like attending NeuroStar University, getting that patient up to treatments of 36, where we see that remission come into play, and kind of really addressing kind of that customer service for the patient. And through this, you know, we're gonna see significant patient awareness brought on by the advertising through both Neuronetics and through Greenbrook. While extremely early, the pilot has shown an increase on historical averages in our leads and book consults, where, like I said, we're only about five weeks into it. We're starting to see some of those consults translating to patients. And so for me, having the access for our center personnel to have the awareness, attract more patients, and our ability to close and convert patients at the local levels, really gives us an opportunity to expand care for those patients and get them into the Greenbrook centers. So I'm excited and appreciative of the work with Neuronetics, and we look forward to kind of watching this evolve as we continue to help them enhance the pilot from our learnings. Got it. That's helpful color. And then maybe just one more from me. Congrats on reaching your cost savings initiative that you put in place. I was hoping you could just update us on how we should be thinking about EBITDA break-even level. How much more growth do we need now that we have the new infrastructure in place to reach that EBITDA break-even level? Yeah, I think great question on, on our sides, Frank. Nice, nice to hear from you. From our perspective, as we've previously guided from, it's, it's $21.5 million is our EBITDA break even, and, and we look to be closer to that, a $100 million mark next year, in revenue towards cash break even. ... Great. I'll stop there. Thanks for taking the questions. Our next question comes from the line of David Martin from Bloom Burton. Please go ahead. Good morning. Thanks for taking my question, or good afternoon. You mentioned that the $23 million in annual cost reduction wasn't fully in the third quarter. I'm wondering, looking into fourth quarter, how much reduction we could see in the various expense lines, the direct center and patient care costs, regional costs, and corporate G&A? Absolutely. Thanks, David. To your point, I think where we expect Q4 to end up is towards the higher end of that range, towards the $25 million mark or exceed it. I think where you'll see a lot of the cost savings come in that have not been baked in yet will be in corporate G&A, with a little bit in the regional cost as well. Yeah, regional. Okay. And then beyond Q4, how much more do you think you'll take out of the cost structure? I think as we mentioned on the call, I think we always evaluate our business and continue to rationalize our cost structure, and at this point, it's too early to tell, but we remain confident in our ability to evaluate our business and make the right calls appropriately relating to cost. Okay. Related to Frank's question, my line broke up a bit when you said what kind of revenue you need for breakeven. That's $100 million a year? Yeah, as previously mentioned on our call a couple of quarters ago, that's, we're still towards that target, our breakeven for cash. Okay. The Buy-and-Bill strategy, is the profit higher per patient, or is the drug cost just a flow-through? It's higher on contribution as well as revenue and cost. So to your point, David, you have a higher—currently, our reimbursement is around $300. While it's too early to tell, based on the launch of our pilot, we expect it to be closer to $1,000, with a sizable increase in costs. But from a contribution standpoint, we expect, again, a significant increase from our current contribution. So it's not just a flow-through, it's essentially a win for us from a contribution side. Okay. David, I just wanna add to that because I think it's important. The move to Buy-and-Bill in specific marketplaces also ties to the fact it creates more access to care because some payer contracts do not allow you to participate in patient care with Spravato unless you're a part of Buy- and- Bill. Okay. Okay, great. There's $5.9 million that you need to pay down for device contract terminations. Is that, that's early this year, later this year? What's the timing on that? That'll be completed by end of Q2 in 2024. Okay. And last thing, usually you give corporate personnel headcounts, and it wasn't. I didn't see it in the press release this time. What, what is the corporate personnel headcount? It would be fairly consistent with last quarter. Okay. Yeah. I think from a year-over-year basis, David, we're down north of 150 kind of staff members over that time. Over the entire business, not just corporate? Correct. Okay, yeah. Okay, thanks. That's it for me. Ladies and gentlemen, just a reminder, should you have a question, please press star, followed by the number one on your touch-tone phone. We have our next question coming from the line of Ben Haynor from Alliance Global. Please go ahead. Good day, gentlemen. Thanks for taking the questions. Nice to hear the progress on the restructuring. First off, for me, on the pilot program for medication management, is there any worry that that could upset in any way your existing referral base, or is that sort of a pain point for them as well? That's a great question, and, we actually spent a lot of time looking at this. And I think from our perspective, there is a boatload of patients out there that are not being treated because they can't gain access to care through psychiatric offices due to the wait list. So from our perspective, this allows more access to care, and I think a lot of those doctors really like to kinda have the cash pay business. And what our company is involved in is we're on all the payer contracts, so by having insurance kind of panel, we really haven't upset the apple cart at this point. And it is early in our kind of pilot, but we are seeing some initial results that we're really excited about. Number one, the ability to kinda hopefully shorten that pathway to both TMS and Spravato. We've seen that already in the first five weeks, where we've been able to get patients into Spravato and TMS who have failed multiple med trials. In addition, patients who needed additional med trials to kinda qualify and meet the criteria for TMS or Spravato, we've been able to cross refer that out to our med management center. Okay. So it may even be that it's a tailwind for you in that they may be more likely to refer to you just to not have to deal with those patients that are maybe more difficult or less desirable for themselves. Yeah, this is a significant upside for us. I mean, you have to think about a couple different ways. Like, even if we didn't talk about this yet, the fact that it enhances our direct consumer marketing spend, it makes that spend kind of more viable because it allows us to take a patient who may have not even been interested in TMS, but has to get into the program. The other particular interesting point is, for us, it's gonna shorten a pathway to that treatment. I think the average in the industry now is a patient will pursue possibly TMS or Spravato, probably after six or seven failed cycles of meds. We think we can shorten that pathway to generating great care through TMS or Spravato much earlier in the treatment paradigm. Okay. So on and then that kind of gets into my next question. On these patients that you do attract for the medication management, you know, are they a handful of failed cycles of meds into it, or are they, you know, at zero? Where do they sit and, you know, what's a typical, you know, to the extent that there is considered a typical cycle for these? Right. Failed cycles, if that makes sense. It's a really good question, and I look forward to answer that in more detail on the next call. What I will tell you just off the cuff, 'cause we're only, you know, a few weeks into this, you're gonna get patients calling there for their first time suffering from depression, who obviously are gonna have their first introduction to, a mental health crisis, and some that have, kind of been through the gamut of multiple drugs that have not helped them. So it's all over the board right now. Okay. Fair enough. I think that's all I had, gentlemen. Thanks for taking the questions. Thank you. There are no further questions at this time. I'd now like to turn the call back over to Mr. Leonard for final closing comments. Thank you, Blair. Appreciate everyone joining our call this quarter. We look forward to the continued progress on our company. We feel really good about our future opportunity. Wanna wish everyone a happy Thanksgiving and a healthy and happy holiday season. Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.