Adapthealth Corp. · NASDAQ:AHCO
Adapthealth — DFB Healthcare Acquisitions — SPAC Merger (October 2019)
8 slides from Adapthealth's SPAC merger presentation, Oct 3, 2019
Slide 1: Disclaimers and Other Important Information
Disclaimer DISCLAIMERS AND OTHER IMPORTANT INFORMATION Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, conveying the expec
Slide 2: Historical Financial Performance
Historical Financial Performance Page 3 2016 – 2018 Performance Net Revenue: ~41% CAGR Adjusted EBITDA: ~60% CAGR Adjusted EBITDA less Patient Equipment Capex: ~143% CAGR Key Drivers: Topline growth driven by M&A and growth in Pap Supply and Pap Equipment Profitability improvement driven by lower ve
Slide 3: Revenue
Revenue Page 4 Primary Service Lines: CPAP / BIPAP for patients with OSA Home Medical Equipment Oxygen and related services Sale / Rental Mix: 58% 42% (1H 2019) Bad debt—patient and 3rd party 2016: 6.9% 2017: 4.8% 2018: 4.6% Revenue increase from 2017 to 2018 was $153mm. $134mm of which was due to a
Slide 4: Cost of Net Revenue
Cost of Net Revenue Page 5 Cost of Net Revenue consists of: COGS: 50.0% of net sales revenue in 2018 Labor: 30.6% of total net revenue in 2018 (includes 3rd party revenue cycle) Occupancy: 2.5% of total net revenue in 2018 Other: 10.7% of total net revenue in 2018 Delivery Software Couriers Deprecia
Slide 5: General and Administrative Expenses
General and Administrative Expenses Page 6 General and administrative consists of corporate support costs including: Exec Leadership IT HR Finance Legal Compliance 2018 expense increased versus 2017 by ~$9mm to 5.2% of total net revenue. Company has invested in 2018 and 2019 to build out corporate i
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet Page 8 A/R Quality - Net A/R < than 60 days: As of 12/31/18: 99% Working Capital Debt Capitalization (net) 3.2x Adj. EBITDA as of 6/30 1.7x Adj. EBITDA pro forma for the transaction ($000s) Assets June 30, 2019 December 31, 2018 Current assets: Cash and cash equivalents $
Slide 7: 2019E to 2020E Bridge
2019E to 2020E Bridge Page 10 Tuck-ins to an existing region that are not separately tracked are based on internal model ($000s) Revenue Adjusted EBITDA Adjusted EBITDA less Patient Equipment Capex 2019E 518,842 $ 123,309 $ 75,026 $ Organic growth & margin improvements 29,726 9,199 7,202 Full year i
Slide 8: 2019E to 2020E Bridge
2019E to 2020E Bridge ($0005) ‘Adjusted EBITDA less Revenue Adjusted EBITDA Patient Equipment Capex 2019 $ 518,842 $ 123,309 $ 75,026 Organic growth & margin improvements 29,726 9,199 7,202 Full year impact of 2019 acquisitions" 34,154 9,490 5,903 20206 $ 982,722 $ 14,998 $ 88,130 2020 Revenue Recap
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