American Dental Partners — Q2 2011 Earnings Presentation
15 slides from American Dental Partners's earnings presentation, Jul 25, 2011
Slide 1: Second Quarter 2011 Earnings Conference Call
Exhibit 99.2 Second Quarter 2011 Earnings Conference Call July 26, 2011
Slide 2: Introductory Comments
Introductory Comments “Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of the historical information contained in this presentation, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may in
Slide 3: Highlights
Highlights • Financial results for 2Q11 vs. 2Q10: Net revenue +2% Earnings from operations -25% Net earnings -15% • Completed seven in-market acquisitions 3
Slide 4: Patient Revenue of Affiliated Practices
Patient Revenue of Affiliated Practices (a) $116.0 million vs. $111.9 million +3.6% 4% Same Market Growth • +1.0% same market growth 2% • +0.0% same market excluding 0% -2% 2Q10 3Q10 4Q10 1Q11 2Q11 acquisitions growth -4% • -0.7% same facility growth Same Facility Development Acquisitions Components
Slide 5: Income Statement
Income Statement (thousands, except per share amts) Q2 2011 2010 Change Comments Net revenue $ 73,953 $ 72,366 2% Cincinnati Dental (6/10) platform acquisition Operating expenses: Salaries and benefits 29,196 28,735 (23) b.p. Lab fees and dental supplies 11,790 10,668 120 b.p. Lab fees 90 bp / denta
Slide 6: Cash Flow
Cash Flow (thousands) 2Q11 2Q10 Operating activities Favorable cash interest and cash Cash flow from operating activities taxes. Patient receivable DSO @ Net income and non-cash items $ 11,107 $ 10,038 6/30/11 of 25 vs DSO @ 6/30/10 of 26 Working capital items 797 (8) Cash flow from operating activi
Slide 7: Capitalization
Capitalization ($ millions) Leverage • $87 million debt • 1.8x debt/EBITDA (bank compliance calculation) Debt to Total Capitalization • $60 million available for borrowing 36% 35% 34% 32% under credit facility (bank 30% compliance calculation) $300 Senior Indebtedness $200 • Renegotiated May 2011 •
Slide 8: Diluted Earnings per Share
Diluted Earnings per Share (a) TTM PE(b) Diluted Reported EPS 0.75 18x Diluted non-GAAP EPS (a) 1.12 12x +49% -33% } +56% }+42% }+65% (a) See Appendix for reconciliation of non-GAAP items. (b) Calculated at $13.25 share price and trailing twelve months ended June 30, 2011 financial results. 8
Slide 9: Return on Market Value
Return on Market Value (millions, except per share amount) 6 Months 2010 Jun '10 Jun '11 TTM Cash flow from operations $ 36.3 $ 17.7 $ 25.4 $ 44.0 Maintenance capital expenditures 4.7 1.6 5.4 $ 8.5 Free cash flow $ 31.6 $ 16.1 $ 20.0 $ 35.5 Diluted shares outstanding 15.8 Share price $ 13.25 Market
Slide 10: Operating Comments
Operating Comments • Financial results negatively impacted by: Economy (employment and retail spending both weak) AHCCCS reimbursement decrease Texas pediatric Medicaid performance: 9 facilities operational in 2Q11 as compared to 4 facilities in 2Q10 Facility EBITDA loss of $59,000 in 2Q11 as compar
Slide 11: Operating Comments
Operating Comments • Specialty care performance: 14% patient revenue growth Continuing reinvesment in the business: Technology initiatives – 42 EDR implementations the second half of 2011 and 126 facilities utilizing EDR by the end of the year De novos – 15 approved for construction and 9 currently
Slide 12: Appendix
Appendix American oe és >. Pai i <A # ® Yas
Slide 13: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures • This presentation includes non-GAAP financial measures. In accordance with the requirements of Regulation G of the Securities and Exchange Commission, please see the attached financial tables for a presentation of the most comparable GAAP measures, the reconcil
Slide 14: Non-GAAP EPS Reconciliation
Non-GAAP EPS Reconciliation (thousands, except per share amt) Q2 2010 2011 2010 Net earnings (as reported) $ 10,339 $ 2,629 $ 3,112 Add: Write-off of expenses associated with debt refinancing, net of tax (a) 370 219 370 Add: Expenses associated with Cincinnati Dental Services acquisition, net of tax
Slide 15: American Dental Partners
American Dental Partners
American Dental Partners — Q2 2011 Earnings Presentation on 6ix