Infusystems Holdings, Inc. · AMEX:INFU
Infusystems — InfuSystem Holdings — Investor Presentation (May 2014)
32 slides from Infusystems's investor presentation, May 20, 2014
Slide 1: InfuSystem Holdings, Inc. Shareholder Presentation
InfuSystem Holdings, Inc. Shareholder Presentation As of May 19, 2014 Eric K. Steen, CEO InfuSystem INFUSION MADE EASY SM
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: InfuSystem at a Glance
InfuSystem at a Glance Company Overview Innovative provider and supplier of infusion services Market leader in oncology home infusion with 40,000 patients a year – 25 Year business model World-class pump rentals and service to providers, manufacturers, and other rental companies(1) in the US and Can
Slide 4: Full Line Multi-Therapy & Multi-Point Offering
Full Line Multi-Therapy & Multi-Point Offering InfuSystem INFUSION MADE EASY SM Partners Provider Patient Payor Device & Pharma Manufacturer, Distributor, GPO, ACO InfuSystem INFUSION MADE EASY SM
Slide 5: Positioned For Growth
Positioned For Growth Market Trends InfuSystem is uniquely positioned to take advantage of market trends Leadership Leadership can now focus on running a business for first time in over a year Strategy Transformational strategy is developed and being implemented InfuSystem INFUSION MADE EASY SM
Slide 6: InfuSystem Niche - Extension of Clinic to Home
InfuSystem Niche - Extension of Clinic to Home CURLIN MEDICAL CON Amt TBI: 250 mL L PRES: 50 mmHg TOT VOL: 0.2 mL REMAIN: 249.8 mL ON/OFF RUN STANDBY ALARM HELP OPTIONS RUN PAUSE Ambulatory Home Infusion 25-year old business model in DME billing At home, at work, at play, all while receiving the dru
Slide 7: US Population Growing
US Population Growing... Aging Population Stats At-risk lifestyles persist (red, processed meats) Growth in all types of cancers Cancers 1,650,000 new cancer cases in 2013 Can be treated effectively by continuous infusion Colo-rectal 3rd most common in US and Worldwide 9% of all new cases 145,000 ne
Slide 8: TPP Pump Return on Investment
TPP Pump Return on Investment Average Cost ~$1,500/pump Pump Lifespan 15 years Average Monthly Revenue ~$300/pump Lifetime Revenue/Pump Approx. ~$20,000+ InfuSystem INFUSION MADE EASY SM
Slide 9: Increasing Therapy Offerings to Payors
Increasing Therapy Offerings to Payors Payor Special Disease States Surgery Infectious Disease Oncology InfuSystem INFUSION MADE EASY SM
Slide 10: Rentals, Sales & Service to Providers
Rentals, Sales & Service to Providers Pump Rentals, Sales and Asset Management Pump Experts Direct sales, rental, and lease of device and supplies in US and Canada Pump Broker Expertise – ability to acquire and dispose of CAP EX in cost effective way Asset management, rental and lease Preventative M
Slide 11: Offering Infusion to All Points of Care
Offering Infusion to All Points of Care Provider Oncology Acute Care Emergency Services Long Term Care Home Infusion InfuSystem INFUSION MADE EASY SM
Slide 12: Continued Revenue Diversification
Continued Revenue Diversification 2009 Revenues $39M 1% 1% 2% 26% 70% Rentals - Colorectal Cancer Rentals - Infectious Disease Rentals - Hospitals/Home Care Sales - DP 2013 Revenues $62M 11% 4% 12% 54% 25% Rentals - Other Cancers Rentals - Pain Management Rentals - Service & Repair
Slide 13: Connectivity through EMR, Web Portal and System Interface
Connectivity through EMR , Web Portal and System Interface
Slide 14: Connectivity through EMR, Web Portal and System Interface
Connectivity through EMR , Web Portal and System Interface Electronic Data Exchange InfuSystem INFUSION MADE EASY SM Interface Effects Customer investment in interface makes for sticky relationships. Ties customer to InfuSystem. InfuSystem INFUSION MADE EASY SM
Slide 15: For Faster Turnaround and Improved Utilization
For Faster Turnaround and Improved Utilization Toronto Canada Service Center Madison Heights Service Center Los Angeles Area Service Center Kansas City Service Center Future New Jersey Service Center Future Atlanta Service Center Houston Service Center InfuSystem Distribution High-density Metro Mark
Slide 16: 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 Through 2015 InfuSystem INFUSION MADE EASY SM
Slide 17: Financial Review
Financial Review InfuSystem INFUSION MADE EASY SM
Slide 18: Financial Overview
Financial Overview Revenues $70m $60m $50m $40m $30m Revenues Growing $38,964 FY2009 $47,229 FY2010 $54,637 FY2011 $58,828 FY2012 $62,280 FY2013 Adjusted EBITDA $18m $14m $10m $6m AEBITDA Growing $10,256 FY2011 $13,126 FY2012 $15,962 FY2013 Free Cash Flow (1) $16m $12m $8m $4m FCF Growing $5,754 FY2
Slide 19: Uses of Free Cash Flow
Uses of Free Cash Flow Total Debt Debt Declining $35m $30m $25m $20m $24,141 FY2009 $32,197 FY2010 $29,127 FY2011 $31,268 FY2012 $28,466 1Q 2013 $28,328 2Q 2013 $27,619 3Q 2013 $26,727 4Q 2013 $27,169 1Q 2014 PP&E and Medical Equipment in Service (at cost) $40m $38m $36m $34m $32m $30m Rental Fleet
Slide 20: Quarterly Financial History
Quarterly Financial History Revenue $20m $18m $16m $14m $12m $10m $8m $6m $4m $2m $0m 14.3 1Q 14.1 2Q 14.2 3Q 16.2 4Q 14.7 1Q 14.7 2Q 15.5 3Q 17.2 4Q 17.2 1Q FY14 FY 2012 FY 2013 ACTUAL Q1-14 17% incr over Q1-13 Rentals up 10% over Q1-13 Sales up 90%! $6m $5m $4m $3m $2m $1m $0m 3.4 1Q 3.6 2Q 3.6 3Q
Slide 21: Ambulatory Pump Rental Fleet
Ambulatory Pump Rental Fleet 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 The Company has a complete inventory of virtually every model pump from every leading manufacturer, all
Slide 22: Take Away
Take Away InfuSystem INFUSION MADE EASY SM
Slide 23: Positioned For Growth
Positioned For Growth Market Trends InfuSystem is uniquely positioned to take advantage of market trends Leadership Leadership can now focus on running a business for first time in over a year Strategy Transformational strategy is developed and being implemented InfuSystem INFUSION MADE EASY SM
Slide 24: Thank You for Your Interest!
Thank You for Your Interest! IR Contact Info: The Dilenschneider Group 212-922-0900 Rob Swadosh, rswadosh@dgi-nyc.com Patrick Malone, pmalone@dgi-nyc.com InfuSystem INFUSION MADE EASY SM
Slide 25: Appendix: INFU Overview
Appendix: INFU Overview InfuSystem INFUSION MADE EASY SM
Slide 26: Compelling Value Proposition
Compelling Value Proposition Complementary core competencies allow InfuSystem to offer superior selection, flexibility, pricing and services One-Stop Shopping Solution One-stop shopping solution for ambulatory large volume pump and other movable medical devices Sales Rentals Supplies Service Financi
Slide 27: Payor & Customer Mix
Payor & Customer Mix InfuSystem has strong relationships with the largest third-party payors and the leading cancer institutions 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 com
Slide 28: Competitive Landscape
Competitive Landscape 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, there is ample room for organi
Slide 29: Direct Payor Business Model
Direct Payor Business Model 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 third-party reimbursement Founded in 1998 and headquartered
Slide 30: Direct Payor Offerings
Direct Payor Offerings Leading Provider of New and Pre-Owned Pumps InfuSystem offers new pumps from top brands Broker-dealer trading desk 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 patien
Slide 31: Medical Equipment Service & Repair
Medical Equipment Service & Repair 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 manufacturer’s specifications and regul
Slide 32: Competitive Bidding Overview
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
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