Infusystems Holdings, Inc. · AMEX:INFU
Infusystems — InfuSystem Holdings — Q3 2013 Earnings Presentation
48 slides from Infusystems's earnings presentation, Nov 19, 2013
Slide 1: Shareholders Q3'13 Presentation
InfuSystem Holdings, Inc. Shareholders Q3?13 Presentation November 18, 2013 Eric K. Steen, CEO Jonathan P. Foster, CFO Infusystem Infusion made easy
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this release are forward?looking statements and are based on future expectations, plans and prospects for InfuSystem Holdings, Inc.’s (“InfuSystem”, “INFU”, “the Company”, “We”) business and operations that involve a number of risks and uncertain
Slide 3: Positioned for Growth
Positioned for Growth Infusystem Infusion made easy
Slide 4: Positioned For Growth
Positioned For Growth Market Trends • InfuSystemis positioned extremely well to take advantage of market trends Strategy • Transformational strategy is developed and being implemented Leadership • Leadership can now focus on running a business for first time in over a year Infusystem Infusion made e
Slide 5: InfuSystem Patient Population is Extension of Infusion Therapy From Clinic to Home
InfuSystem Patient Population is Extension of Infusion Therapy From Clinic to Home Discharge Planner Home Infusion DP >>>>> Rentals, Sales & Service >>>>TPP Hospital HIT HHA DME IHSHC ? 2 ? 1? 28 ? 47 ? 14 ? 18 ? 2 ? 26 ? 7 ? 7 ? 27? 19 ? 28 ? 12 ? 2 ? 13 ? 12 ? 25 ? 18 ? 1 ? 3 ? 31 ? 13 ? 59 ? 7 ?
Slide 6: InfuSystem Overview
InfuSystem Overview Rentals, Sales & Services Size & Scale Third?Party Payor: Ambulatory Oncology Services ? Provides ambulatory infusion pumps (rentals & sales) to oncology clinics, hospitals and other healthcare providers ? InfuSystem directly bills patients’ commercial health insurance providers,
Slide 7: Extension of Clinic to Home Ambulatory Infusion
Extension of Clinic to Home Ambulatory Infusion ? Some drugs more effective when infused continuously ? Patient Satisfaction ? Multiple Therapies ? Oncology, Post Surgical Pain, Special Disease States TPP Payor Contracts ? Over 250 Payor Contracts ? Private Pay & Government ? Commercial Payors reimb
Slide 8: Population Growth, Age and Growth of Cancers
Population Growth, Age and Growth of Cancers Population Stats ? Aging Population ? At?risk lifestyles persist (red, processed meats). Colo?rectal ? 3rd most common in US and Worldwide Infusystem Infusion made easy u.s. population
Slide 9: Infu Oncology Patients
Infu Oncology Patients CR Contrib. Factors* ? Are older than 60 ? Eat a lot of red or processed meats ? Have colo?rectal polyps ? Have a family history of colon cancer ? Have a personal history of breast cancer ? Smoking and Alcohol * A.D.A.M. Medical Encyclopedia HIGHER GROWTH Infusystem Infusion m
Slide 10: InfuSystem Cancer Patients 2010-12
InfuSystem Cancer Patients 2010?12 Esophogeal Head and Neck 4% Pancreas 343% Stomach 61% Colo?Rectal 16% 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% InfuSystem Patient Statistics ? CR Grew by 16% ? Pancreatic +343% Infusystem Infusion made easy
Slide 11: Revenue Diversity
Revenue Diversity 2009 Revenues 2012 Revenues Rentals ? Colorectal Cancer Rentals ? Other Cancers Rentals ? Infectious Disease Rentals ? Pain Management Rentals ? Hospitals/Home Care Rentals ? Service & Repair Sales ? DP 2009 Revenues
Slide 12: Revenue Diversity
Revenue Diversity 2009 Revenues 2012 Revenues Rentals Colorectal Cancer Rentals Other Cancers Rentals Infectious Disease Rentals Pain Management Rentals Hospitals/Home Care Rentals Service & Repair Sales DP
Slide 13: Increasing Therapy Offerings to Payors
Increasing Therapy Offerings to Payors Payor Infectious Disease Surgery Special Disease States Oncology Infusystem Infusion made easy
Slide 14: Continuous Peripheral Nerve Block at Home
Continuous Peripheral Nerve Block at Home There are 5.69M orthopedic surgeries annual. ~50% of these patients are potential candidates for pain management with a continuous peripheral nerve block (CPNB) Growth of CPNB Growth of CPNB at Home HCAHPS (H CAPS): Pain Scores affect Hospital Reimbursement.
Slide 15: Total Home Infusion Market
Total Home Infusion Market Home Infusion Market Home Infusion Total Lowest Cost of Care with the Right Outcome Increasing Importance to lower cost in Affordable Care Act future Lowest cost and highest patient satisfaction site for extension of infusion therapy is the home InfuSystem Niche Therapy st
Slide 16: Biomedical Rentals, Sales & Service
Biomedical Rentals, Sales & Service Pump Rentals, Sales and Asset Management Direct Sales or Lease of Device and Supplies Pump Broker – ability to acquire AND DISPOSE of CAP EX in cost effective way Asset Management, Rental and Lease Preventative Maint. Annual Pump Recertification Preventative Maint
Slide 17: Offering Infusion to All Points of Care
Offering Infusion to All Points of Care Provider Long Term Care Emergency Services Acute Care Oncology Home Infusion Infusystem Infusion made easy
Slide 18: Full Line Multi Therapy & Multi Point Offering
Full Line Multi Therapy & Multi Point Offering Payor Partners Provider Patient Device & Pharma Manufacturer, Distributor, GPO, ACO Infusystem Infusion made easy
Slide 19: What a Difference a Year Makes
What a Difference a Year Makes Financial Position New Team in place IT improvements begun New Product launches Kits, Smart Pumps, Post Surgical Pain Infusystem Infusion made easy
Slide 20: IT and Automation Shift into High Gear
IT and Automation Shift into High Gear More insurance billings with existing staff Greater revenue per employee Road Map completed , New iPad features, Automation of initial internal processes Infusystem Infusion made easy
Slide 21: Connectivity through EMR, Web Portal and System Interface
Connectivity through EMR , Web Portal and System Interface Electronic Data Exchange Interface Effects Customer investment in interface makes for sticky relationships. Ties customer to InfuSystem. Infusystem Infusion made easy
Slide 22: Connectivity through EMR, Web Portal and System Interface
Connectivity through EMR , Web Portal and System Interface Electronic Data Exchange Interface Effects Customer investment in interface makes for sticky relationships. Ties customer to InfuSystem. Infusystem Infusion made easy
Slide 23: Bring the Pumps to the People in Large Markets
Bring the Pumps to the People in Large Markets Largest Markets #1 New York #2 Los Angeles #3 Houston + Dallas #4 Atlanta + Miami #5 Chicago #6 Toronto Infusystem Infusion made easy
Slide 24: For Faster Turnaround and Improved Utilization
For Faster Turnaround and Improved Utilization Kansas City Service Center Madison Heights Service Center Future New Jersey Service Center Future Atlanta Service Center Los Angeles Area Service Center Opening Soon Houston Service Center Toronto Canada Service Center InfuSystem Distribution New Housto
Slide 25: Where Does This Get INFU in Three Years
Where Does This Get INFU in Three Years Aging Population and Cancer growth More Patients Home IV , commercial pay recognizing value, CMS competitive bidding Peripheral Nerve Block and Smart Pump Growth Revenue Growth in High Single Digits Infusystem Infusion made easy
Slide 26: Next Up Action Items
Next Up Action Items IT Implementation – web portal, EMR, interfaces, automation of insurance processes Product and service line expansion Geographic Expansion Productivity measures implemented Evaluating depreciable life Utilization metrics and improvement Infusystem Infusion made easy
Slide 27: Positioned For Growth
Positioned For Growth Market Trends • InfuSystemis positioned extremely well to take advantage of market trends Strategy • Transformational strategy is developed and being implemented Leadership • Leadership can now focus on running a business for first time in over a year Infusystem Infusion made e
Slide 28: Financial Review
Financial Review Infusystem Infusion made easy
Slide 29: Ambulatory Rental Pump Fleet
Ambulatory Rental Pump Fleet TPP Ambulatory Pump Financial Profile Annual Rental Revenue per $1 Rental Fleet Cost (“Revenue Ratio”) With over 26,000+ pumps in TPP Rental Fleet, InfuSystem maintains the largest fleet of ambulatory infusion pumps in the industry DPP Rental Fleet has over 20,000 pumps
Slide 30: Competitive Bidding Overview
Competitive Bidding Overview InfuSystem was not involved in Round 1 nor Round 2 of Competitive Bidding CMS announced a Recompete of Round 1 competitive bidding on April 17th External infusion pumps/supplies added as a new product category A supplier must bid on all items within the product category
Slide 31: Summary Income Statement
2012 08/16/12 10/15/12 12/14/12 10/1/13 12/31/13 01/01/14 Summary Income Statement ($000 ‘s) FY2009 FY2O1O FY2O11 FY2012 9Mo 2012 9Mo 2013 Net revenues: Cost of revenues: EBITDA $ 11,199 $ 7,745 $ (57,336) $ 9,590 $ 6,122 $ 9,747 EBITDA (ex. Impairment Charges) $ 11,199 $ 7,745 $ 10,256 $ 9,590 $ 6,
Slide 32: Revenue Diversity
Revenue Diversity 70% 26% 1% 0% 1% 0% 2% 2009 Revenues 2012 Revenues 51% 23% 0% 0% 13% 4% 9% Rentals Colorectal Cancer Rentals Other Cancers Rentals Infectious Disease Rentals Pain Management Rentals Hospitals/Home Care Rentals Service & Repair Sales DP 70% 26% 1% 0%1% 0% 2% 2009 Revenues
Slide 33: Revenue Diversity
Revenue Diversity 70% 26% 1% 0% 1% 0% 2% 2009 Revenues 2012 Revenues 51% 23% 0% 0% 13% 4% 9% Rentals Colorectal Cancer Rentals Other Cancers Rentals Infectious Disease Rentals Pain Management Rentals Hospitals/Home Care Rentals Service & Repair Sales DP
Slide 34: Summary Balance Sheet
Summary Balance Sheet LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities: Account payable—total Accrued expenses and other Derivative liabilities Current portion of long-term debt Total Current Liabilities Long Term Debt, net of current portion Deferred income taxes Other Liabilities Total Liab
Slide 35: Cash Flow
Cash Flow ($0 00’s) FY2009 FY2O1O FYZO11 FY2012 9Mo2012 9Mo2013 OPERATING ACTIVITIES Net Income Adjustments: Provision for doubtful accounts Depreciation Loss on disposal of pumps Amortization of intangible assets Asset impairment charges Stock-based compensation Total Other Adjustments changes in a
Slide 36: Take Away
Take Away Infusystem Infusion made easy
Slide 37: Positioned For Growth
Positioned For Growth Infusystem Infusion made easy Market Trends • InfuSystemis uniquely positioned to take advantage of market trends Strategy • Transformational strategy is developed and being implemented Leadership • Leadership can now focus on running a business for first time in over a year
Slide 38: Thank You for Your Interest!
Thank You for Your Interest! Infusystem Infusion made easy IR Contact Info: The Dilenschneider Group 2129220900 Rob Swadosh, rswadosh@dginyc.com Patrick Malone, pmalone@dginyc.com
Slide 39: Appendix: INFU Overview
Appendix: INFU Overview Infusystem Infusion made easy
Slide 40: InfuSystem Overview
2 1 28 47 14 18 2 26 7 7 27 19 28 12 2 13 12 25 18 1 3 31 13 59 7 2 1 Servicing all 50 States & Canada “In network” in over 250 health plans covering 222+mm lives 1,600+ active healthcare facilities in Third Party Payor business InfuSystem Overview Rentals, Sales & Services Size & Scale Third Party
Slide 41: Leading National Platform Solution
Infusystem Infusion made easy With a national footprint and at four times the size of its largest competitor, InfuSystem is the leading provider of ambulatory infusion pumps to oncologists and their patients InfuSystem provides ambulatory infusion pumps and related supplies to outpatient oncology pr
Slide 42: Key Competitive Advantages
Key Competitive Advantages Infusystem Infusion made easy “In network” in over 250+ health plans covering approx. 222mm lives National footprint with over 1,600+ active healthcare facilities 20+ years in Durable Medical Equipment (“DME”) billing and licensing Full service billing capabilities: paper,
Slide 43: Payor & Customer Mix
Payor & Customer Mix Infusystem Infusion made easy Leading Cancer Institution CustomerRevenue by Payor (FY2012) s High diversification of providers and payors No single healthcare provider represents more than 7% of Third Party Payor revenues Strong payor mix among Medicare, other commercial insurer
Slide 44: Competitive Landscape
Competitive Landscape Infusystem Infusion made easy InfuSystem measures its market share not in terms of the number of practices, but the pool of addressable patients The breakdown of the Company’s current market share shows that despite being the predominant national player in continuous infusion,
Slide 45: Direct Payor Business Model
Infusion pumps Enteral pumps Direct Payor Business Model Infusystem Infusion made easy InfuSystem’s Direct Payor business is focused primarily on the sale, rental, financing and accompanying service of movable medical equipment to hospitals and alternate care sites who pay InfuSystem directly – no t
Slide 46: Compelling Value Proposition
Compelling Value Proposition In?House Service & Repairs Convenience & Flexibility Pre?Owned Equipment One?Stop Shopping Solution Expertise ? Convenience and flexibility of rentals and financing minimize customer capital outlays ? Rental and financing eliminates the need for in?house maintenance/serv
Slide 47: Direct Payor Offerings
? InfuSystem offers new pumps from top brands ? Broker?dealer trading desk ? Web Portal ? In addition, over 70 models and versions of pre?owned pumps are offered ? Pre?owned pumps are re?built and certified by in?house biomedical technicians to be patient ready ? Warranty offered on pre?owned pumps
Slide 48: Medical Equipment Service & Repair
Medical Equipment Service & Repair Infusystem Infusion made easy ? In addition to supporting and repairing InfuSystem’s in?house fleet, the Company certifies, recalibrates, repairs and services a variety of infusion pumps ? Pumps require scheduled maintenance and calibration in accordance with manuf