Viemed Healthcare, Inc. · NASDAQ:VMD
Viemed Healthcare — Investor Presentation (May 2020)
23 slides from Viemed Healthcare's investor presentation, May 27, 2020
Slide 1: Leading the Healthcare Industry in Home Respiratory Care
LEADING THE HEALTHCARE INDUSTRY IN HOME RESPIRATORY CARE IR PRESENTATION / MAY 2020
Slide 2: Disclaimers and Other Important Information
DISCLAIMERS Disclaimers and Other Important Information This presentation (the “Presentation”) about Viemed Healthcare, Inc. (“Viemed”) is dated as of May 2020. It is information in a summary form and does not purport to be complete. The data contained herein is derived from various internal and ext
Slide 3: Viemed at a Glance
VIEMED AT A GLANCE Largest independent specialized provider of non-invasive ventilation (NIV) in the US home respiratory health care industry Highly profitable with a 44% CAGR in revenue growth since 2010 Service offering includes 24x7 in home respiratory care including specialized respiratory thera
Slide 4: Our Timeline (2006 to present)
OUR TIMELINE (2006 to present) 2006 – SLEEP MANAGEMENT FOUNDED Annual Revenues: $0.24M USD | Respiratory DME specializing in CPAPS & Oxygen 2010 – HSD Annual Revenues: $3.58M USD | Home Sleep Delivered – Specializing in home sleep tests 2012 - VENTILATOR EXPANSION Annual Revenues: $4.60M USD | Non I
Slide 5: Key Investment Consideration
KEY INVESTMENT CONSIDERATION Specialized US based respiratory healthcare services company • Focused on Chronic Obstructive Pulmonary Disease (COPD) and growing aging population • $50 billion of annual healthcare cost in the U.S. spent on COPD Significant Market Growth Opportunity • 10,000 baby boome
Slide 6: Current State of the Industry
CURRENT STATE OF THE INDUSTRY At the age of 65, patients qualify for Medicare The Medicare population is growing, with 60 million beneficiaries in 2018 Expenditures are expected to and 69 million beneficiaries by 2023 grow at a 6% CAGR from $58.3 billion in 2019 to $98.4 billion in 2028 6
Slide 7: NIV Market Penetration
NIV MARKET PENETRATION 25 Million (estimated) people in the US have COPD 70% market share held by top 10 providers 2,500,000 or 10% have stage 4 COPD Viemed largest independent provider at 10% 1,250,000 or 50% of those with stage 4 are candidates for our therapy Currently less than 60,000 Medicare b
Slide 8: The Viemed Solution
THE VIEMED SOLUTION Registered Respiratory Therapists (RT’s) assigned to each patient and on call 24X7 • All RT's are COPD educators • Assess and service medical equipment • Overseen by pulmonologists on staff Each patient is given a customized in-home care plan based off Activities of Daily Living
Slide 9: Viemed Products
VIEMED PRODUCTS VENTILATORS PERCUSSION VESTS OXYGEN THERAPY COUGH ASSISTS HOME SLEEP TESTS PAP’S and SUPPLIES COMPRESSION THERAPY 9
Slide 10: Proven Growth Strategy
PROVEN GROWTH STRATEGY Location selection • Based on high COPD rates • Target hospitals and facilities with high readmission rates and near existing service area • Leverage existing relationships and operate on the outskirts of large metropolitan areas Unique lean deployment model • No costly retail
Slide 11: Results of Third Party Study: Impact of NIV on Health
RESULTS OF THIRD PARTY STUDY IMPACT OF NIV ON HEALTH NIV MORTALITY & COSTS & OUTCOMES COST STUDY ANALYSIS 12% 16% Absolute reduction in mortality Absolute reduction in mortality after 12 months (NNT=8) after 6 months (NNT=6) 38% 3x Immediate reduction in risk of Likelihood of untreated patients to d
Slide 12: Viemed Strategic Growth Plan
VIEMED STRATEGIC GROWTH PLAN INCLUDES IN-STATE EXPANSION AS WELL AS NEW STATE TERRITORIES WA ME ND VT MT MN NH OR NY MARI WI CT ID SD MI WY PA NJ IA NE OH MD NV IL IN UT WV VA CO KY CA KS MO NC TN SC OK AZ AR NM GA MS AL LA TX FL Licensed & Medicare approved in 46 states 12
Slide 13: Technology & Marketing Initiatives
TECHNOLOGY & MARKETING INTIATIVES Vision of becoming a leading healthcare technology company coupled with high touch human interaction in the home Goal is to improve quality of life and length of time patients spend with loved ones Increase efficiency of clinicians through improved remote workflow a
Slide 14: Objectives for Next Months
OBJECTIVES FOR NEXT 24 MONTHS Grow active patient base while entering new target states through geographic expansion Roll out results of the third-party KPMG & Harvard Medical School study to referral sources and payors in order to save more lives and increase penetration Diversify payor base – spec
Slide 15: Financials
FINANCIALS OO6® VieMed
Slide 16: COVID-19 Update
COVID -19 UPDATE • Viemed updated protocols to limit non-essential visits to existing patients in order to prevent any spread of the COVID-19 virus • Serving as a resource to States and health systems through equipment procurement and respiratory therapists (created education videos on YouTube where
Slide 17: Revenue Model
REVENUE MODEL Monthly rental fee – reimbursed by insurance and covered by Medicare Uncapped rental contract Average monthly client revenue is ~US$950 (all providers paid same rate by Medicare) Pricing includes equipment rental, RT service, supplies and maintenance of equipment 17
Slide 18: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE $95,000,000 $90,000,000 $80.3M $85,000,000 $80,000,000 $75,000,000 $19M $20,000,000 $70,000,000 $16.5M $65,000,000 $58.4M $18,000,000 $60,000,000 $16,000,000 $55,000,000 $50,000,000 $14,000,000 $11.1M $11.5M $45,000,000 $41.3M $12,000,000 $40,000,000 $35.3M $9.7M $10
Slide 19: Capital Markets Profile
CAPITAL MARKETS PROFILE 38,030,854 & ~$8.4 ~$16.9 465 13% 39,677,983 Shares outstanding Cash on hand in USD* Total debt in USD * Total staff Inside ownership & fully diluted ** * As of March 31, 2020 ** Does not include approximately $1.8M of operating leases recorded as debt per ASC 842 NASDAQ: VMD
Slide 20: Corporate Structure
CORPORATE STRUCTURE Viemed HealthCare Inc. (Canadian Parent Company Listed on NASDAQ & TSX) Viemed Inc. (Delaware Corporation/US Subsidiary) Sleep Management, Home Sleep Delivered, Viemed Clinical Services, LLC (US Subsidiary- Louisiana) LLC (US Subsidiary-Louisiana) LLC (US Subsidiary-Louisiana) 20
Slide 21: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS Casey Hoyt Todd Zehnder Randy Dobbs Chief Executive Officer Chief Operating Officer Chairman of the Board and Director and Director and Independent Director Mike Moore Dr William Frazier Nitin Kaushal President Chief Medical Officer Independent Director and Direc
Slide 22: Thank you
Thank you Glen Akselrod Bristol Capital IR glen@bristolir.com Tel: 905 - 326 - 1888
Slide 23: Appendix: Reconciliation of Net Revenue and Adjusted EBITDA
Appendix Fiscal Year Ended December 31 2013 2014 2015 2016 2017 2018 2019 1Q '20 Reconciliation of Net Revenue (1) Revenue $ 10.2 $ 23.3 $ 36.2 $ 31.4 $ 46.4 $ 64.5 $ 80.3 $ 26.6 Bad Debt Expense (0.2) (0.2) (0.8) (4.4) (5.1) (6.1) - (2.8) Net Revenue $ 10.0 $ 23.1 $ 35.4 $ 27.0 $ 41.3 $ 58.4 $ 80.3