Healius Limited · ASX:HLS
Healius — Primary Health Care — FY2011 Earnings Presentation
24 slides from Healius's earnings presentation, Aug 22, 2011
Slide 1: Primary Health Care Limited FY 2011 Results
Primary Health Care Limited FY 2011 Results 12 Months Ended 30 June 2011 Investor Presentation 22 August 2011 1
Slide 2: Financial Summary
Financial Summary Year ended Year ended $m 30 June 2011 30 June 2010 Revenue 1,322.3 1,296.8 EBITDA 328.0 331.0 EBITDA Margin (%) 24.8 25.5 Non-recurring items (34.7) - Normalised profit after tax before non- 102.6 132.0 recurring items EPS (cps) before non-recurring items 20.7 27.8 Fully franked fi
Slide 3: Income Statement
Income Statement Year ended Year ended Six months $m 30 June 2011 30 June 2010 31 Dec 2010 Revenue 1,322.3 1,296.8 655.7 EBITDA 328.0 331.0 152.4 Depreciation & Amortisation (82.2) (72.9) (40.3) Finance costs (97.1) (77.8) (47.6) Income Tax (34.2) (46.1) (8.5) Non-recurring items (34.7) - (34.7) Net
Slide 4: Segment Analysis
Segment Analysis Year ended 30 Year ended 30 Six months $m June 2011 June 2010 31 Dec 2010 Revenue Medical Centres 274.6 259.0 137.5 Pathology 740.1 720.7 364.0 Imaging 285.0 289.1 145.1 Health Technology 48.9 46.4 24.5 Corporate 12.4 9.8 3.0 Intersegment (38.7) (28.2) (18.4) TOTAL 1,322.3 1,296.8 6
Slide 5: Financial Performance
Financial Performance 2H FY2011 uplift in EBITDA margin and volumes across all divisions 2H FY2011 improved performance despite impact of QLD floods and Cyclone Yasi Pathology result impacted by full $45m funding cut 1 November 2009 compared with $30m impact in the year ended 30 June 2010 (1)
Slide 6: One-off Costs
One-off Costs $m Lease commitments and make good of sites 14.7 Redundancies 9.4 Legal and other costs 3.9 Non-recurring cash items 28.0 Assets written off at closed sites 6.7 Total non-recurring items 34.7 In November 2010, Primary provided a trading update which detailed a cost reduction program
Slide 7: Balance Sheet
Balance Sheet $m 30 June 2011 31 Dec 2010 30 June 2010 Current Assets (excluding Cash) 183 163 181 Goodwill & Intangibles 3,164 3,112 3,075 Non-Current Assets 435 438 414 Total Assets 3,782 3,713 3,670 Net Debt (Debt less Cash) 1,074 1,036 979 Other Current Liabilities 174 178 171 Non-Current Liabil
Slide 8: Debt Position
Debt Position $m 30 June 2011 Secured Syndicated Facilities 965.3 Cash (43.2) Retail Bonds 152.2 Net Debt at 30 June 2011 1,074.3 Retail Bond matures September 2015 Secured Syndicated Facilities do not mature until December 2012 Strong interest already received for possible early refinancing o
Slide 9: Capital Investment
Capital Investment Year ended Year ended $m 30 June 2011 30 June 2010 Property plant & equipment 99.1 104.3 Business acquisitions 84.9 78.5 Intangibles 20.4 12.1 TOTAL 204.4 194.9 9
Slide 10: Summary
Summary Highlights • Revenue up to $1.322b for FY2011 from $1.297b for FY2010 Revenue growth & improved • 2H FY2011 EBITDA up to $175.6m ($166.2m excluding net proceeds from litigation) 2HFY2011 EBITDA from 1H FY2011 of $152.4m. Overall EBITDA of $328.0m ($318.6m excluding net proceeds from litigati
Slide 11: Medical Centres: Summary
Medical Centres: Summary FY 2011 2H11 1H11 FY 2010 2H10 1H10 Revenue ($m) 274.6 137.1 137.5 259.0 127.2 131.8 Growth % pcp 6.0% 7.8% 4.3% - - - EBITDA ($m) 150.3 75.8 74.5 142.4 68.6 73.8 EBITDA Margin (%) 54.7% 55.3% 54.2% 55.0% 53.9% 56.0% Revenue growth of 6% across all centres EBITDA growth
Slide 12: Medical Centres: Growth
Medical Centres: Growth Medical Centres has grown significantly over the last 7 years increasing EBITDA from c.$58m in 2005 to c.$150m in FY2011, achieving a sustainable EBITDA margin of 50%+. (1) (1) All figures based on reported results for the Medical Centre division of Primary. Note Symbion ac
Slide 13: Medical Centres: Underlying Performance
Medical Centres: Underlying Performance Continued underlying growth in Primary’s 56 large scale medical centres With a platform of established centres we will focus on GP back-filling aiming for double digit EBITDA growth FY2010: 13% FY2011: 8% underlying underlying growth Primary growth Primary
Slide 14: Medical Centres: GP back-filling
Medical Centres: GP back-filling Focus in the coming year will be to backfill all centres at all stages in their age profile We can increase the number of GPs by c.40% without further spending on increasing capacity at existing centres or building new centres On average GP’s experience a c.30%
Slide 15: Medical Centres: Outlook
Medical Centres: Outlook Recent improved trend of increases in GP patient attendance which continues to date Current focus on GP back filling Primary has been able to double its business in Victoria and Queensland over the last 3 years. Primary has opened 4 medical centres in Western Australia
Slide 16: Pathology: Summary
Pathology: Summary FY 2011 2H11 1H11 FY 2010 2H10 1H10 Revenue ($m) 740.1 376.1 364.0 720.7 357.2 363.5 Growth % pcp 2.7% 5.3% 0.1% -2.3% -4.1% -0.5% EBITDA ($m) 118.7 63.4 55.3 135.3 61.9 73.4 EBITDA Margin (%) 16.0% 16.9% 15.2% 18.8% 17.3% 20.2% FY2011 EBITDA adversely impacted by: First full
Slide 17: Pathology: Revenue
Pathology: Revenue Revenue adversely impacted by first full 12 months of funding cuts and impact of Cyclone Yasi and floods Expansion of market share (need to exclude Qld to ensure like-with-like comparisons) Return of episode growth appears to be correlated with deregulation of collection cen
Slide 18: Pathology: Cost Structure
Pathology: Cost Structure Deregulation of collection scheme has introduced significant new costs (rent and staff) Primary has retained its market share of collection centres pre & post deregulation (stable @ 33%) Primary has capability to reset cost base Source: Merrill Lynch Equities Australi
Slide 19: Pathology: Outlook
Pathology: Outlook Industry dynamics fundamentally changed Seeing significant industry scale back in breadth and coverage of services Rate of growth in collection centre roll-out has slowed across industry Memorandum of Understanding 1 July 2011 for five years provides funding stability Pr
Slide 20: Imaging: Summary
Imaging: Summary FY 2011 2H11 1H11 FY 2010 2H10 1H10 Revenue ($m) 285.0 139.9 145.1 289.1 142.0 147.1 EBITDA ($m) 43.4 22.3 21.1 42.6 19.6 23.0 EBITDA Margin (%) 15.2% 15.9% 14.5% 14.7% 13.8% 15.6% FY2011 EBITDA and margin improvement reflecting: - restructuring during the year - continued recruit
Slide 21: Imaging: Outlook
Imaging: Outlook Primary will continue to focus on: recruitment and retention of leading radiologists moving towards a “fee for service” model with radiologists continue to drive operational improvements ~ turn around times, technology etc cost containment and leveraging the recent investm
Slide 22: Health Technology
Health Technology FY 2011 2H11 1H11 FY 2010 2H10 1H10 Revenue ($m) 48.9 24.4 24.5 46.4 22.3 24.1 Growth % pcp 5.3% 9.4% 1.6% - - - EBITDA ($m) 19.5 9.8 9.7 20.0 10.3 9.7 EBITDA Margin (%) 39.9% 40.1% 39.6% 43.1% 46.2% 40.2% Software products renewal rates remain high amongst major products ~ Medic
Slide 23: Summary
Summary Clear strategy to be a low cost provider of quality medical services Primary well positioned to capture increased demand via capacity in medical centres and the investment made in pathology and imaging Backfilling of GPs is a focus for medical centres Focus on organic revenue growth
Slide 24: Disclaimer
DISCLAIMER This presentation has been prepared by Primary Health Care Limited (ACN 064 530 516) (‘PRY’). Material in this presentation provides general background information about PRY which is current as at the date this presentation is made. Information in this presentation remains subject to