Investor Presentation

Transcription

1 Investor resentation

2 Safe Harbor Disclosure All statements, other than statements of historical fact, made in this presentation and in any verbal statement provided in the course of this presentation regarding the strategy, future operations, financial position, future revenues, projected costs, prospects, timelines, plans and objectives of management are forward looking statements and may be forward looking information in accordance with applicable securities laws. Forward looking statements are identified by words such as believe, anticipate, estimate, expect, intend, plan, expect, project, may, and will and the negative of such expressions. Although not all forward looking statements contain these identifying words, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward looking statements. Although Agility Health believes that the expectations reflected in any forward looking statements made in this presentation and in any verbal statements provided in the course of this presentation are reasonable, such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to assumptions relating to the risks and factors set out in Agility s regulatory filings. Accordingly, no assurances can be given that any of the events of circumstances contemplated by any such forward looking statements will transpire or occur or, if any of them transpire or occur, what impact they may have on Agility s results of operations or financial condition. Important risks and factors that could cause actual results to differ materially from expectations, and should be considered in making any investment in the securities of Agility Health are disclosed in Agility s filing memorandum, prospectus and any securities regulatory authority. All reference to dollars in this presentation are to U.S. dollars, unless otherwise indicated. 2

3 Who We Are Agility Health, Inc. ( Agility ) is a leading healthcare provider with a focus on physical rehabilitation services roven, differentiated business model Significant growth in revenues, margins and EBITDA Highly fragmented industry provides opportunity to Agility Large, growing industry Strong, experienced leadership 3

4 Corporate Overview 1+ million patient visits annually Network of Service Sites 1,000+ employees 155+ locations 3-year EBITDA CAGR 23% Consolidating highly fragmented market Current Market 4

5 Management Team Steve Davidson, T, MBA Chief Executive Officer 29 years healthcare experience Licensed physical therapist Ken Scholten, T resident 35 years healthcare experience Licensed physical therapist Gene K. Miyamoto, MHSA Chief Operating Officer 30 years healthcare experience Masters in Health Services Administration Significant experience across the entire rehabilitation continuum Substantial rehabilitation transaction experience Looks are deceiving 5

6 Targeting Outpatient Business (by Revenue) Outpatient Clinics Hospital Contracts 2010 FY 2013 Adjusted Run Rate Outpatient Clinics $28.4 $18.9 LTC Contracts LTC Contracts $10.2 Hospital Contracts Agility will grow through acquisitions of outpatient businesses, de novo clinics development and new hospital contract wins. 7

7 Millions Revenue Trends $80 $70 $60 14% CAGR (past three years) $55.3 $63.0 $50 $40 $39.1 $42.5 $46.8 $30 $20 $10 $

8 Millions Adjusted EBITDA (1) Trends $3.5 $3.0 $2.5 23% CAGR (past 3 years) $2.9 $2.6 $3.2 $2.0 $1.5 $1.7 $1.0 $0.8 $0.5 $ (1) Adjusted EBITDA adjusts for minority interests, non-recurring items, professional fees associated with acquisitions and financings and share based compensation (2) Forecast = anticipated run rate 9

9 Revenue by ayor Type

10 Agility s Target Market 11

11 Market Overview hysical rehabilitation industry: $26.9 billion Outpatient rehabilitation market: $10 billion Highly fragmented, with more than 30,000 individual clinics - Eight largest firms account for only 11.3% of the industry - Top 50 companies represent less than 25% - No company has >5% Market Share 12

12 Rehabilitation Industry Trends Annual growth in Rehabilitation market expected to significantly exceed GD growth rates over the coming decade Industry: GD 2.0% Rehabilitation 6.9% Industry: Rehabilitation 7.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Source: IBISWorld 13

13 Demand for Therapy Services atient rotection and Affordable Care Act increases Insured population with Insurance coverage Senior population growth 2.4% Annual Increase in US residents 50+ Increased desire by elderly to retain an active lifestyle Growing awareness and acceptance of physical rehabilitation services Shifting patients earlier from institutional settings (e.g. hospitals) to outpatient centers Rising obesity rates in population supports the need for rehabilitation services 14

14 Agility s Growth Strategy 15

15 Growth Strategy rimary Focus Complementary Ongoing, Additive Acquisitions Strong local brands Growth latform Leverage our infrastructure and clinical portfolio De Novo Clinician partnerships Existing market expansion, and new market penetration Organic Organic with existing clients New client wins 16

16 Market Dynamics Favor Consolidation Companies in this space are either very large or very small Increasing regulatory burden contributes to smaller clinics seeking to strategically partner or to divest Agility s scale makes many acquisitions insufficient in size for others to consolidate Agility is ideally positioned to partner and consolidate smaller companies for the foreseeable future 17

17 Agility: An Ideal Consolidator Extensive IT infrastructure in place Billing systems Invested in custom scheduling software Centralized IT with 75+ servers Economies of Scale (administrative services) Clinical expansion and horizontal Integration of product lines (e.g. selling contract therapy services in our new outpatient acquisition markets) Strong clinical and entrepreneurial culture that is prevalent across the organization 18

18 Typical Acquisition Criteria Cultural fit with Agility Ongoing management participation Strong, local reputation Retains Equity (actual or synthetic) Organic Growth Opportunities 19

19 Agility ortfolio - Other roducts/services (Currently <5% of Revenue, but opportunities to grow) Orthotics Company - Custom and a atented Retail Semi- Custom (100+ clients) Agile M O/ Clinic ractice Mgmt Software (not commercialized) Clinical Outcomes Database - 222,000 Cases (in development) RM Software - Integrates w/ Hospital Systems to Manage their Rehab Depts. (15 clients) 20

20 Agility s Future 21

21 ublic eers: Scope of Service Rehab Setting 1 Outpatient LTC/Contr. Industrial Rehab Unit Orthotics Hospital JV Agility Health Select Medical (NYSE:SEM) Kindred (RehabCare) (NYSE:KND) US hysical Therapy (NASDAQ:USH) Centric Health (TSX:CHH) (1) according to our research 22

22 Investment Highlights Highly fragmented industry with large market size Healthy pipeline of acquisitions lined up for foreseeable future Considerable growth in revenues, margins and EBITDA through organic operations and strategic acquisitions Scope of services spans the entire rehabilitation spectrum Strong and experienced management with substantial physical therapy transactional experience Attractive valuation relative to publicly traded peers 24

23 Thank You