Paragon Care Limited · ASX:PGC
Paragon Care — FY2014 Earnings Presentation
19 slides from Paragon Care's earnings presentation, August 2014
Slide 1: 2014 Full Year Results Presentation
2014 Full Year Results Presentation AUGUST 2014
Slide 2: Contents and Disclaimer
Contents Heath Services - Funding & Responsibility Disclaimer Some of the statements in this Executive Summary............................................................................3 presentation constitute “forward- Company Background............................................................
Slide 3: Executive Summary
EXECUTIVE SUMMARY Paragon Care Financials Strong Demand Dynamics & Expanding Market Share Earnings Summary ■■ Underlying business is driven by increasing demand in the Shares on Issue 65.2m Y/E June FY13 A FY14 A acute and aged care sector Share Price @ Aug 2014 34c Revenue ($m) 17.1 19.6 ■■ Market
Slide 4: Company Background
Company Background 4 | 19 4 | 19
Slide 5: Product Offering
PRODUCT OFFERING Product range only matched by global players Paragon Care’s Suite of Products 5 | 19
Slide 6: Share Price & Key Events
SHARE PRICE & KEY EVENTS Positioned for Growth Key Events $3m Capital $6.7m Capital raising to reduce raising to fund bank debt Acquisition Acquisition 0.5 5,000 0.45 Volume 4,500 Close 0.4 4,000 0.35 3,500 Share Price (Cents) $350,000 Traded Volumne ('000) 0.3 Debt for Equity 3,000 Swap Acquisition
Slide 7: Board & Register
BOARD & REGISTER Diverse Shareholder Base Board / Senior Management Shares % Top 20 Shareholders as at July 2014 Shares % 1 Mr Murray J Turner 6.01m 9.2% Shane Tanner (Non-Executive Chairman) 0.50m 0.77% 2 Mr Joseph P Wolfson 4.26m 6.5% ■■ Experienced professional within the Australian healthcare se
Slide 8: Industry & Competitors
Industry & Competitors 8 | 19 8 | 19
Slide 9: Market Size
MARKET SIZE Market Size Population Growth The market for Paragon and it’s suite of products is best defined by: ■■ Healthcare expenditure to grow in proportion to population growth across the age groups ■■ Annual Replacement spend on durable medical goods which ■■ Ageing population to underpin the m
Slide 10: Market Size: Geographic Diversity
MARKET SIZE Geographic Diversity State by State Healthcare Expenditure ■■ The Eastern Seaboard represents ~80% of Paragon’s market opportunity ◆◆ NSW (34%) ◆◆ VIC (25%) ◆◆ QLD (20%) Health Australian Expenditure Healthcare Expenditure 7% 6% 140,000 8% 60,000 10% 10% 120,000 50,000 9% 7% 100,000 10%
Slide 11: Company Drivers
COMPANY DRIVERS Paragon Care Paragon Care Diversified Product Portfolio PRODUCT MIX ■■ Increased diversification spanning over capital, consumable and medical products Stethoscopes Other ■■ 45% of FY14 revenue is Paragon’s own proprietary product 3% 6% Blood Pressure range 2% Beds/Mattresses ■■ Long
Slide 12: Financial Analysis
Financial Analysis 12 | 19 12 | 19
Slide 13: Financial Snapshot
FINANCIAL SNAPSHOT FY14 Revenue Revenue EBITDA EBITDA $1.8m $19.4m $1.5m $17.1m $15.8m $0.7m 2012 2013 2014 2012 2013 2014 NPAT EPS NPAT Earning Per Share $1,084,891 2.0c $739,603 1.7c ($324,593) (0.2)c 2012 2013 2014 2012 2013 2014 13 | 19
Slide 14: Profit & Loss
PROFIT & LOSS Record Year for Paragon Care Reported Profit & Loss ■■ 2014 was a period of significant achievement with the successful acquisition and integration of the LR Instruments and Richards Medical consumables business. This $m unless stated FY12 FY13 FY14 ∆ acquisition provides further expos
Slide 15: Balance Sheet
BALANCE SHEET Improving Balance Sheet Strong Balance Sheet with Capacity for Further Acquisitions $m unless stated FY12 FY13 FY14 ■■ In June 2014, the company reach agreement with the Westpac Banking Cash 1.3 2.5 2.8 Corporation’s Healthcare division for a new $10m facility on favourable Receivables
Slide 16: Investment Considerations
Investment Considerations 16 | 19 16 | 19
Slide 17: Drivers and Risks
DRIVERS AND RISKS Competitive Advantage Drivers & Opportunities Risk & Mitigation Product Range Contracts Federal and State Government Spending ■■ Broad suite of products offering a total customer solution ■■ Further acute and aged care contracts wins will underpin ■■ Further cuts to greenfield and
Slide 18: In Summary
IN SUMMARY Paragon Care has: ■■ Exposure to high growth health and aged care markets ■■ Diverse product portfolio offers a comprehensive full service offering ■■ Highly fragmented industry with consolidation opportunities ■■ Long standing relationships with suppliers and customers ■■ Growing earning
Slide 19: Thank you for your time
ParagonCare Thank you for your time Paragon Care Group of Companies o . _, me axishealth KPiona @capini VOLKER gmmedical f LRINSTRUMENTS b> 4 aicHARDSMEDICAL —_——,